Home on the Deranged

Steven Malanga details the decades long obsession American politicians have had with home ownership, and its unintended consequences. Predictably, no one seems to have learned:

...before we’ve even worked our way through this crisis, elected officials and policymakers are busy readying the next. Barney Frank, the Massachusetts congressman who serves as chair of the House Financial Services Committee, has balked at proposals to privatize Fannie Mae and Freddie Mac, which would eliminate their risk to taxpayers and their susceptibility to political machinations.

Why? Simple: the government uses them to subsidize the affordable-housing programs that Frank supports. California congressman Joe Baca, head of the Congressional Hispanic Caucus, also opposes reining in affordable housing lending. “We need to keep credit easily accessible to our minority communities,” he asserts.

Republicans and Democrats, meanwhile, have scrambled to reignite the housing market through ill-conceived tax credits and renewed federal subsidies for mortgages, including the Obama administration’s mortgage bailout plan, which recalls the New Deal’s H[ome]O[wner's]L[oan]C[orp].

As Harvard economist and City Journal contributing editor Edward Glaeser has observed, mortgage lenders have finally “recovered their sanity”—only to have government dangling subsidized low interest rates and tax credits in front of them and their potential customers all over again. Behind these efforts is a fundamental misconception among politicians that housing drives the American economy and therefore demands subsidy at virtually any cost.

Emperor...No Clothes

We think Joe the Plumber and Cliff Asness would get along just fine:

Here's a shock. When hedge funds, pension funds, mutual funds, and individuals, including very sweet grandmothers, lend their money they expect to get it back. However, they know, or should know, they take the risk of not being paid back. But if such a bad event happens it usually does not result in a complete loss. A firm in bankruptcy still has assets. It’s not always a pretty process.

Bankruptcy court is about figuring out how to most fairly divvy up the remaining assets based on who is owed what and whose contracts come first. The process already has built-in partial protections for employees and pensions, and can set lenders' contracts aside in order to help the company survive, all of which are the rules of the game lenders know before they lend. But, without this recovery process nobody would lend to risky borrowers. Essentially, lenders accept less than shareholders (means bonds return less than stocks) in good times only because they get more than shareholders in bad times.

The above is how it works in America, or how it’s supposed to work. The President and his team sought to avoid having Chrysler go through this process, proposing their own plan for re-organizing the company and partially paying off Chrysler’s creditors. Some bond holders thought this plan unfair. Specifically, they thought it unfairly favored the United Auto Workers, and unfairly paid bondholders less than they would get in bankruptcy court. So, they said no to the plan and decided, as is their right, to take their chances in the bankruptcy process. But, as his quotes above show, the President thought they were being unpatriotic or worse.

Let’s be clear, it is the job and obligation of all investment managers, including hedge fund managers, to get their clients the most return they can. They are allowed to be charitable with their own money, and many are spectacularly so, but if they give away their clients’ money to share in the “sacrifice”, they are stealing.

Clients of hedge funds include, among others, pension funds of all kinds of workers, unionized and not. The managers have a fiduciary obligation to look after their clients’ money as best they can, not to support the President, nor to oppose him, nor otherwise advance their personal political views. That’s how the system works. If you hired an investment professional and he could preserve more of your money in a financial disaster, but instead he decided to spend it on the UAW so you could “share in the sacrifice”, you would not be happy.

....Let’s also mention only in passing the irony of this same President begging hedge funds to borrow more to purchase other troubled securities. That he expects them to do so when he has already shown what happens if they ask for their money to be repaid fairly would be amusing if not so dangerous. That hedge funds might not participate in these programs because of fear of getting sucked into some toxic demagoguery that ends in arbitrary punishment for trying to work with the Treasury is distressing. Some useful programs, like those designed to help finance consumer loans, won't work because of this irresponsible hectoring.

Careful what you wish for, UAW

NYU's Thomas Cooley says, you'll be sorry:

Government interference in the normal conduct of business has had a chilling effect on financial markets and threatens the progress of the recovery.

....Investors, other than the banks who desperately needed TARP funds for survival, are leery of any program that uses them. Anyone who took TARP funds has been subject to government interference in managerial decisions. The restrictions on bonuses and executive pay have been widely discussed in the media. Less well known are restrictions on the banks' ability to hire foreigners, and the constant harassment by Congress over internal management decisions on everything from the use of private aircraft to the locations of conferences. Some of these concerns are well justified, of course, but it wasn't clear ex-ante what all of the rules were and it isn't clear ex-post either.

....The Obama administration has shown repeatedly that it is willing to change the rules and even challenge the sanctity of contracts in the interests of its political agenda. The best, most recent example is the Chrysler restructuring.

The administration decided to tilt the restructuring in favor of the unions. The government proposed giving the United Auto Workers' retiree health fund a 55% equity stake in Chrysler--more than the combined stakes of Chrysler's merger partner, Fiat, or the other secured creditors that are owed roughly $7 billion. When some of the secured creditors, who were offered 30 cents on the dollar, balked, they were attacked by Obama as speculators.

....Citi, JP Morgan Chase, Goldman Sachs and Morgan Stanley, all major recipients of TARP Funds, all deep in the pocket of the Treasury, agreed to the administration's plan. So it looks like bankruptcy law will take a back seat to social policy.

There is at least some poetic justice in this outcome. The unions, whose years of work rules, and pension and health care deals helped sink the company, will have to eat their own cooking from now on. But their future success needs not only labor but capital.

Why would private capital get involved when the rules of the game are so capricious? No one would take that gamble when it is clear that, in dealing with the government, private capital will always take a back seat to politically powerful entities.

Cheaters Never Prosper?

It seems their enablers do:

At the Ashley Madison agency, which revels in the motto, "Life is short. Have an affair," the global economic downturn is proving a boon for business.

....the message is hitting home as the economy reels, according to Noel Biderman, the company's founder and chief executive.

Membership has soared from one million to 3.6 million in just 12 months, and he expects another surge after the company launched a service allowing members to access the site from their mobile phones. The innovation is aimed at would-be cheaters who are nervous about leaving evidence of their infidelity on their computer at home or work.

Mr Biderman said that many couples who would otherwise have divorced were seeking affairs at the moment because of the cost of hiring lawyers and the difficulty of selling the marital home.

....It is free to register with Ashley Madison, but members pay with purchased credits to send messages to other users. The agency charges $49 (£33) for 100 credits or $249 for 1,000 credits and 50 credits buys 60 minutes of instant messaging time or 10 emails to different users.

They shoot horses, don't they?

If, they don't, they might start, in Indian country:

WARM SPRINGS INDIAN RESERVATION —
Here on this reservation in north-central Oregon, horses are woven deeply into daily life. They are traditionally used by tribal members in their work and their culture, whether it be for rodeos or horse parades.

Gathering, breaking and selling wild horses has long been part of the tribe's economy. Horses that don't make the grade are sold for slaughter.

But the nation's final three slaughterhouses were shuttered two years ago, and a perfect storm has formed with a glut of horses, lack of a market and economic recession.

Tribal rangeland managers now estimate 20,000 wild horses are overrunning Indian Country in Washington, Idaho and Oregon, with an annual foal crop raising the population by some 20 percent a year.

....Agricultural and rangeland experts from five tribes have been meeting quietly since last winter to explore options to manage horse populations on reservation lands. Their ideas, still in discussion, run the gamut.

The most controversial: opening a slaughter plant at the Warm Springs reservation, and maybe someday packing the meat for human consumption overseas, if the regulatory hurdles can be cleared and economics pencil out.

....There used to be a thriving horse market in this country, with buyers bidding on horses for processing plants in Stanwood; Maytown, Thurston County; and more than 20 other plants across the country, supplying an eager trade, particularly in Europe.

But the country's remaining three horse slaughterhouses, in Illinois and Texas, closed in 2007 after a sustained campaign by animal-rights activists that resulted in Congress forbidding USDA inspection of horse meat for human consumption. That ended any legal commercial packing industry for horse meat in this country.

Still, there is a demand for horse meat, particularly in Europe. But with no packer competition in the U.S. to supply it, and a glut of horses, foreign packers can set their price.

Trucking the animals long distances to slaughterhouses in Canada and Mexico also means buyers will take only the fattest, biggest animals.

For the sick, the old, and the skinny, today there is often no market at any price. Buyers who remember paying 70 cents a pound at auction are today paying as little as 6 cents a pound — if the packers will even take the animal.

....The bottom has fallen out of the horse market just as the recession is driving even owners of pedigreed, suburban stock to unload animals they can't afford to care for, overwhelming rescue and shelter operators.

It's the same story for the U.S. Bureau of Land Management, which is struggling to feed and care for some 30,000 wild mustangs gathered from public rangelands and put out to pasture in the Midwest in deference to opponents of slaughter.

The BLM is paying $27 million this year alone to feed and care for wild horses living out their days at taxpayer expense. With another 30,000 or so more wild mustangs still roaming the range, multiplying every year, the costs are growing. So far, the BLM has no solution to the problem.

Hold the Phone!

At the University of Washington, the PhDs are in...but their telephones are out:

"I think we're all aware that we're living through events that in 10 or 20 years we'll be talking about in our classes," he said.

He's referring to the day they took his telephone away.

[Richard] Kielbowicz, whom I had to reach by e-mail, is a professor at the University of Washington's Department of Communication. These are lean times at the UW, so to save money this department that specializes in how society exchanges information has gotten rid of its landline phones.

....Most professors have personal cellphones, so they're hardly shut off from the world. Still there are some who feel the demise of the landline phone is sad.

....On the other hand, the relics never rang anymore.

Kielbowicz, who teaches a course in the history of communication technology from the Gutenberg press to the World Wide Web, says his office phone would ring maybe once every two weeks. Calls became so rare that he began to view any that did come in with trepidation.

"Students no longer call on the phone, ever," he said.

Republican Optimist, Thy Name Is...

Mitch Daniels, governor of Indiana:

In Indiana, Republicans are the party of change and reform; ask anybody -- our opponents, the press, everybody. In the rhythm of life here, four years ago we replaced a 16-year regime that had gone stale.

And so we are the party that restored fiscal integrity. We are the party that addressed health care for the uninsured. We are the party that rebuilt an attractive business environment. We are the party that cleaned up the ethics issues in government -- that and much more. We attacked our infrastructure problem in a novel and taxpayer-friendly way.

....you know, the results are in -- and incidentally, we just won with the largest vote total in the history of elections in our state for any office any year.

....I guess what I'm saying is that when Indiana Republicans meet, I always tell them we cannot control what the party looks like in other places or nationally, but here in Indiana if we don't remain the party always defining the agenda, bringing the new ideas and standing for constructive change, then people will excuse us from duty. And they should. ...

People want to know first of all that you hear them and understand what's going on in their lives. I work at this incessantly -- I was riding all over Salden, Indiana, on my motorcycle Saturday -- and that you have some thoughts about how you make life better, more secure for them. Now, those thoughts can be animated by what we consider Republican principles, and that's fine. In other words, I don't think fiscal prudence went out of style; in fact, people are rediscovering it themselves, right? Save more, spend less -- and I think they expect government to emulate that.

When we addressed health care for the uninsured, or insurance for those without, it's a very free-market solution -- it's basically HSA's for poor people -- and it's extraordinarily popular. I had a lady hugging me and crying down in a coffee shop in Connorsville Saturday morning because she got coverage -- I've had this experience a thousand times -- she got coverage and she couldn't possibly have had it any other way. I just think that the image problems we have are very real, but also addressable, by a Republican Party that goes out of its way to show that it cares about average people and the least advantaged.

Let me just go off on another one my little sermons I always give. Here's a political fact of life: You can be a blue-blood, silver spoon, coastal elitist, and if you have the Democratic label, you start with the presumption that you are connected to average folks. And the Republicans start with the negative presumption. So don't whine about it being unfair, just recognize it and go work on it.

Fat So?

Life is like a box of chocolates, except you do know what you're getting in this case:

Consumers appear to be comfort eating their way through the recession if the surge in profits of U.S. chocolate giant Hershey is anything to go by.

The firm, which makes Hershey's Kisses and Kit Kat, today posted results for the first quarter of the year, revealing profits had jumped 20per cent annually.

Consumer psychologists are suggesting people could be using chocolate bars as a relatively cheap pick-me-up during the economic downturn.

No Mas

Britain expects every gardener to do her duty:

Householder Sandra Smith has been ordered to cover up her garden gnomes after complaints that the naked ornaments were upsetting local children.

The gnomes, one male and two female, have stood in Mrs Smith's front garden for around 15 years in Hunnington in the West Midlands.

The grandmother has been forced to put clothes on the ornaments after a neighbour complained to Bromsgrove District Council and an officer phoned her.

Growth Industry

The ghost of Eleanor Roosevelt makes a comeback in Seattle:

There's a bumper crop of new gardeners out there.

Business is booming at nurseries all [over] the Puget Sound [area], "It's easily been a 25 percent increase, if not more, this year in seed sales. Seed sales have been definitely huge for us," said Joe Abken of Sky Nursery in Shoreline.

And it's not just the brick and mortar stores. Gardening expert Ed Hume says his online seed sales in February were up 40 percent. Something he attributes to the current economic situation, "When you get a downturn in the economy, then the vegetable seeds start to sell."

....Gardening advocates, who have long struggled to get America grubby, have dubbed the newly planted tracts "recession gardens" and hope to shape the interest into a movement similar to the victory gardens of World War II.

Those gardens, modeled after a White House patch planted by Eleanor Roosevelt in 1943, were intended to inspire self-sufficiency, and at their peak supplied 40 percent of the nation's fresh produce, said Roger Doiron, founding director of Kitchen Gardeners International.

The National Gardening Association estimates that a well- maintained vegetable garden yields a $500 average return per year. A study by Burpee Seeds claims that $50 spent on gardening supplies can multiply into $1,250 worth of produce annually.

Battery Up

The Chinese expect their executives to take one for the team:

Chinese companies, such as BYD, have been lauded for developing advanced batteries that could power a revolution in motoring.

BYD, a former battery maker, was the first company in the world to start selling a heavily-electrified hybrid car last December, easily beating larger rivals such as Toyota to the market.

....The Chinese government has also committed to funding new technologies, such as BYD's iron-phosphate-based lithium ion batteries, with £1bn of research subsidies.

In a bid to demonstrate the safety of his batteries to the environment, Wang Chuan-Fu, BYD's chief executive, has actually drunk a vial of his own battery fluid.

Not easy being green

King County, Washington learns the cost of good intentions:

King County has agreed to pay $3.5 million to a former Seattle man and his wife after the man suffered a permanent brain injury when he was thrown from his bicycle on a road east of Redmond.

Lawyers for Jeffrey Totten and his wife Danielle Leavell said the county was at fault because it promoted Novelty Hill Road as a bike route but failed to maintain it in a safe condition.

....Physically, emotionally and cognitively disabled, Totten will never be able to work again. A Navy veteran, he bicycled daily from his home in Seattle's Fremont district to the energy firm where he worked in Issaquah.

The accident occurred while on a longer training ride with friends.

....John Christensen, an attorney for Totten and Leavell, said the family would have asked for more money if the case had gone to a jury.

....Christensen said Totten was put in danger because of a lack of communication between the county Parks and Recreation Division, which promoted Novelty Hill Road in online and printed maps as a bike route, and the Road Services Division, which allowed a hole around the survey marker to grow deeper with successive paving jobs.

Leavell said her husband was training for the 700-mile Paris-Brest-Paris bike event when the accident occurred.

Eliminate the Negative

Then, accentuate the positive, with a little help from a future POTUS, and go on to direct some pretty good movies:

Mr. [Edward] Dmytryk's story was a searing indictment of the [Communist] party. He described being part of a conspiracy to break up the American Federation of Labor in Hollywood and to replacing it with unions controlled by communists. He revealed that the party bullied filmmakers into molding the editorial content of pictures in keeping with the party line.

He also said that the party had twisted his legal battle into a First Amendment issue so as to demonize congressional investigations. "It was like everything else the communists do," he told the Saturday Evening Post. "They would go into a lynching case, but instead of trying to help the Negroes, what they are really after is to use the incident to stir up still more trouble. The Negroes don't matter -- they're just a means to an end."

[Ronald] Reagan was emphatic that Mr. Dmytryk go public. When Mr. Dmytryk agreed, Reagan built a coalition of liberals and conservatives to champion him. The team purchased a full-page ad in the Hollywood Reporter. "The Communist Party is now trying to destroy Edward Dmytryk," it read. "We will be surprised if there are not other attacks by the Party on other former communists who have the guts to stand up and be counted and to tell the truth."

Reagan argued to friends and colleagues that Mr. Dmytryk ought to be embraced for breaking with the Stalinists. The Reagan team even vouched for Mr. Dmytryk when he applied for life insurance.

The Coase File

Green power, the salvation of the Obamanation, has a few problems of its own:

Wind turbines may supply power without pollution but they are also generating complaints about noise and even possible health effects for people who live near them.

Dan Williams says the 240-foot-tall turbines he can see from his hilltop home near Boardman in Eastern Oregon make so much noise they keep him awake at night.

Williams is among neighbors along Highway 74 demanding that Morrow County enforce state noise regulations on the Willow Creek Wind Energy Project or revoke its land-use permit.

The 40-year-old construction contractor told The Oregonian newspaper in Portland that wind-energy companies downplay the noise.

"They said this is going to be about as loud as your refrigerator in your house, which is a crock," he said.

....Other critics, including some in Oregon, cite work by a New York doctor who coined the term "wind turbine syndrome" to describe effects such as headaches, dizziness and memory loss of living near the machines.

"This thing is not rare," Dr. Nina Pierpont of Malone, N.Y., said of the syndrome.

....another resident of the area, Mike Eaton, agrees with Williams and other neighbors who complain about the noise and vibrations from the turbines.

The retired 61-year-old furniture maker said the turbines give him nausea by aggravating inner-ear and balance problems he's had since a 1966-67 tour in Vietnam subjected him to the constant pounding of an Army 155-mm artillery piece.

"I cannot live where I'm living now with these decibels and vibrations," he said.

France: Danny Devito no genius!

The star of Other People's Money probably wouldn't do too well in this environment:

PARIS — When negotiations over the revamping ofCaterpillar’s operations in the French city of Grenoble broke down this week, the workers did what more and more of their countrymen are doing these days: They took their bosses hostage.

It was the fourth such incident in France in the last month.

This week, François-Henri Pinault, the chief executive of PPR, the group that owns Gucci, was trapped by a group of employees who surrounded his car and blocked the road with garbage cans.

In two other incidents last month, workers at a 3M plant held their boss for more than 24 hours in a labor dispute, and workers at a Sonyplant held their boss overnight to gain better severance packages.

While detaining company executives against their will is not new in France, the tactic has been used only sparingly. But French labor policy experts say they expect more such actions because the despair and anxiety that drive employees to such acts is increasing as the labor market worsens.

“The traditional way of holding a strike is to occupy the workplace, showing that ‘it’s our company, too,’ ” said Antoine Lyon-Caen, a professor of comparative labor law at the University of Paris-Nanterre. “It’s not unheard-of that the managers get taken hostage, but it has been very rare.”

When Bernie Went Ponzi

Former head of the NYSE, Richard Grasso, speculates it was when the investment world went penny wise instead of 1/8 foolish in the late 90s. Which eliminated a very lucrative anomaly in trading, which Bernie Madoff had been exploiting:

How would you describe it to a layman?

His broker-dealer, Bernard Madoff [Investment] Securities, executed orders in Big Board-listed stocks away from the Big Board that were given to that broker-dealer by other broker-dealers in return for payment from order flow. He would pay a penny a share to many of the regional broker-dealers in the U.S. to effectively buy their order flow. And in return, he would execute those orders in-house, at Madoff [Securities], and take the risk of the offset—meaning that when he had an inventory, he would lay that inventory or sell that inventory back to the primary markets, principally to the NYSE. And when he had an exposure as a result of being short, he would cover, or buy shares to cover his risk on the primary markets. The broker-dealers who gave him that order flow effectively got a penny a share.

....When you saw what he was doing, did it seem to be profitable to you?

Extraordinarily profitable, because remember during the period of time when he was doing it, the minimum price variation was 12.5 cents—meaning the tightest the spread could be was separated by an eighth of a dollar, which meant that if he paid a penny coming in and paid a penny going out—meaning a penny to the buyer and a penny to the seller—it was potentially 10.5 cents of profit for the Madoff organization.

But that good thing came to a halt:

And how long did he get away with this?

Oh, I would say 20-plus years. You see, what killed that business was when we went to pennies. Because you crush the spread and you crush costs. And there’s no more opportunity for him to pay a penny coming in if the market is a penny bid offered at two cents.

Right. What year was that?

We started that process in 1997 by going from an eighth to a sixteenth, which, you know, took 50 percent of the profitability opportunity out. And then, by 1999, we went to a penny.

So could that have been the first problem he had?

Yes, I don’t think there’s any doubt that the economics of his primary business evaporated.

But everyone knew her as Nancy

It's adults only in some libraries, thanks to the Speaker of the House of Representatives:

In February, an overzealous law governing lead in products resulted in toys going from store shelves to the trash heap. Now, confusion over how the rules affect children's books has led some libraries to rope off kids' sections.

....Older books pose hardly any danger, according to safety experts at the Centers for Disease Control. The problem is the ambiguity in a law that leaves businesses facing lawsuits if they can't prove their products are safe. In addition to libraries, thrift stores, church bazaars and small batch toymakers are also unclear what they can and can not sell. Makers of bicycles and ATVs have pulled youth models -- designed to increase safety -- off the showroom floor at a cost of hundreds of millions of dollars.

Nancy Pelosi boasted last summer that the toy safety law would mean products weren't merely made differently in the future but would be removed from the shelves today. That's the real source of this mayhem, as she was amply warned at the time by Democrat John Dingell, among others. Ms. Pelosi prevailed, and now the harm to thousands of businesses, charities and even public libraries is manifest. Since the House Speaker won't admit a mistake and fix the law, the [Consumer Products Safety Commission] must do what it can to prevent more damage to the already challenging economy.

Burma Shave

There's nothing new under the road that meets the rubber:

Don't be surprised if you see Col. Sanders out filling potholes. In an unusual cause-marketing push, KFC is tackling the pothole problem in Louisville, Ky. in exchange for stamping the fresh pavement with "Re-freshed by KFC," a chalky stencil likely to fade away in the next downpour.

"This program is a perfect example of that rare and optimal occurrence when a company can creatively market itself and help local governments and everyday Americans across the country," said Javier Benito, exec VP-marketing and food innovation at KFC.

Louisville Mayor Jerry Abramson noted in a statement that budgets are tight for cities across the country, and finding funding for road repairs is a dirty job. "It's great to have a concerned corporation like KFC create innovative private/public partnerships like this pothole refresh program."

The KFC program appears to be part of a growing body of consumer-service marketing that connects in a meaningful way. This past holiday season, Charmin provided a public restroom in Times Square for the third year running. The company has also developed anapplication for iPhone and BlackBerry that helps consumers find toilets when the need arises.Samsung has installed electrical charging stations in many major airports to help travelers stay connected while in limbo.

Perhaps most importantly, while KFC seems more suited to pot pies than potholes and efforts like these are unlikely to sell chicken sandwiches in the short term, the company is likely to build a reservoir of goodwill among the general population -- particularly when they arrive at the pothole they've gotten used to swerving around.

The Barack Obama Doll

When you pull its string, it says, 'Math is hard'.

In that sense, what it would do is it would equalize -- when I give $100, I'd get the same amount of deduction as when some -- a bus driver who's making $50,000 a year, or $40,000 a year, gives that same $100. Right now, he gets 28 percent -- he gets to write off 28 percent. I get to write off 39 percent. I don't think that's fair.

That is, of course, the flip side of progressive income tax schemes. High income people pay higher marginal tax rates and thus have higher incentives to donate to charity as a result. Obama seems to be decrying the unfairness of higher tax rates to people who pay lower rates.

But, it gets worse for Obama as the questioner follows up:

QUESTION: It's not the well-to-do people. It's the charities. Given what you've just said, are you confident the charities are wrong when they contend that this would discourage giving?

OBAMA: Yes, I am. I mean, if you look at the evidence, there's very little evidence that this has a significant impact on charitable giving.

About the evidence, Obama is wrong--as Tom Maguire has noted--there is such evidence.

However, this morning in the NY Times, carries an open letter that says that ain't Jake:

...I have decided to donate 100 percent of the effective after-tax proceeds of my retention payment directly to organizations that are helping people who are suffering from the global downturn. This is not a tax-deduction gimmick; I simply believe that I at least deserve to dictate how my earnings are spent, and do not want to see them disappear back into the obscurity of A.I.G.’s or the federal government’s budget.

....On March 16 I received a payment from A.I.G. amounting to $742,006.40, after taxes. In light of the uncertainty over the ultimate taxation and legal status of this payment, the actual amount I donate may be less — in fact, it may end up being far less if the recent House bill raising the tax on the retention payments to 90 percent stands. Once all the money is donated, you will immediately receive a list of all recipients.

It would only be far less if Obama gets his way and reduces the deduction for charitable deductions, because Mr DeSantis can, as of the law now, donate the entire amount of the bonus prior to taxes. But, it seems that confiscatory taxes do have the expected incentive, contrary to what the President said in his news conference.

Happy as a Pig in Slop

Barack Obama backer and financial supporter of the Democrats squeals in delight:

A hedge fund manager who predicted the global credit crunch has said the financial crisis has been 'stimulating' and the culmination of his life's work.

George Soros, who predicted the global financial crisis twice before, was one of the few people to anticipate and prepare for the current economic collapse.

Mr Soros said his...decision to come out of retirement in 2007 to manage the [Quantum] fund made him $US2.9 billion.

And while the financial crisis continued to deepen across the globe, the 78-year-old still managed to make $1.1 billion last year.

'It is, in a way, the culminating point of my life’s work,' he told national newspaper The Australian.

Soros is one of 25, top hedge fund managers from across Wall Street who have defied the credit crunch crisis to reap a total of $11.6billion (£7.9bn) last year.