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Friday, December 11, 2009

SEASONS GREETINGS, MR. PRESIDENT, AND HAPPY NEWT YEAR!   A holiday message from my DC-insider friend "Mick Danger":
Before the 2008 election, I entertained myself (and perhaps a few others) with a little joke that if elected, John McCain would govern like a driver who weaves back and forth across all five lanes of a heavily traveled road.

The trouble is, the American political road only has three-lanes: left, center and right.

The other two lanes, to the extent they exist at all, are shoulders. You can drive on a road’s shoulders safely at a reduced speed for a short stretch. Anything faster or longer is suicidal.

Obama’s part of the little joke? He’d drive the national car 90 miles-per-hour down the left shoulder until he’d hit reality.

Now that Obama has been President since mid-January, we know the truth and the truth is different from the joke.

Obama is in the back seat of a car being driven 110 mph down the left shoulder by Nancy Pelosi.

Obama has wrestled control of the car away from Pelosi on only one issue, Afghanistan, steering his policy into the center lane. Sadly, for him, the public isn’t there with him on that particular issue.

On every other issue, however, the public would rally behind him if he were steering down the center lane. Since he’s too far left on spending, debt, stimulus, taxes, health care, whatever, etc --- his numbers are declining.

Let’s tune in once again to true election expert Charlie Cook. He has poured through a mountain of polling data compiled by Gallup for a recent three-week period and has some solid observations:

Among independents, the president's approval ratings held at 50 percent for the first two weeks, then dropped to 48 percent for the third week, and fell to 44 percent for the following two weeks before ticking up 2 percentage points for the final week. Among Republicans, the decline was less marked.

Obama has lost more ground among moderates than among ideologues, and more among conservative Democrats than within any of the five other ideological, partisan combinations that Gallup monitors.

In other words he’s lost support from voters who spend most of their time in the middle lane.

Charlie is a careful analyst. He says it’s unclear why Obama’s numbers are declining, pointing to the timing of the survey research as occurring after the unemployment rate rose above 10% but before the troop decision on Afghanistan.

Ah, no, Charlie. The public isn’t all that scientific about its own impressions so you shouldn’t over-think poll results.

The public “thinks” by gut instincts. The President is working on issues the public doesn’t support and is ignoring their high (and realistic) anxieties on jobs. Period. Repeat that everyday until November.

The poor man seems to think that small businesses create jobs based upon the funding levels at a rarely-if-ever-effective government agency called SBA or that small business owners might really respond to his new silly little capital gains reduction proposal by hiring new workers despite the continuing, unprecedented uncertainties and risks in the real world.

I believe the public is thinking, “OMG, he’s against what we need and for what we’re against.”

If Obama doesn’t jump up from the back seat early in 2010 and take over the wheel from Herr Nancy, the voters will remove her from the Speakership. (He won’t and let’s hope*.)

If Nancy is not Speaker, how will this affect President Obama?

His left-shoulder agenda will be DOA and, as a direct result, he will be reelected in 2012. Go ask former two-term President Clinton about his experience with Speaker Gingrich.

Happy Newt Year, Mr. President!

Anonymously, Mick Danger

*Hey, Mick, explain this hope thing about maybe the Republicans deposing Nancy as Speaker.

Look, some angry centrist voters won’t vote at all. Energized conservatives will walk through gunfire to vote.

Here’s a table from a recent Daily Kos poll to their question: “Will You Vote In The '10 Elections?”

It all comes down to the independents.

Elections are won by whichever candidate crosses the post first. The mood among vulnerable House Democratic incumbents right now is a combination of panic and mind-altering medication. I read that mood as a crude barometer showing me that independents who do vote next November are getting themselves ready to vote against Democrats because they are disgusted with the Democratic brand.

The firm Pollster.com paints it well:

It’s noteworthy that the Congressional Black Caucus (CBC) is mad that the President isn’t throwing trillions into their communities as the unemployment rates in their districts are double (or more) than the national average and show no signs of improvement. It’s noteworthy that moderately conservative Democratic incumbents (Blue Dogs) feel that they are being surrendered to Nancy’s need for speed in the left shoulder. How does the CBC feel about the Blue Dogs? As if the needs of African-Americans are being traded to serve the Blue Dogs. What?

The only thing which explains this madness is that Nancy is governing as a Committee of Herself and that her party members are starting to crack up.

Does it matter that some Democrat incumbents are quitting? Only a little.

It really only matters that centrist voters are quitting the Democrats.

Does it matter that the Republican brand remains damaged?

Kinda, but no. You can’t fix the brand before you regain power because no one will pay enough attention to your policy pronouncements until they exist as real possibilities. “Fixing the brand” follows from a ride down a boulevard called Good Government. Don’t talk about that now, it makes you seem self-interested at a time when everyone is afraid for their own family’s future.

What should Republicans do to “regain power”?

Only three things:

1. Be the other candidate and otherwise STFU.

2. Do not scare the independents more than Pelosi scares them.

3. Do not offer complicated policy solutions.

Simple & smart policy proposals (for example, ones which common sense says actually creates jobs) are fine to mention every so often, but don’t talk about them too much or you will violate Rules 1 and 2.

Winning Republican campaigns for 2010 House races will not be based upon being the better candidate, but upon being an acceptable other candidate. Period. Repeat that everyday until November.

So, back to the joke:

Election day, be the brake on our national runaway car. The day after election day 2010, start steering us back to the center lane via the School of Checks-and-Balances.

Divided government leads to Good Government Boulevard.

Update... William Heasley says,
Wait a minute: "Obama is in the back seat of a car being driven 110 mph down the left shoulder by Nancy Pelosi." Hmm.

Looked on MapQuest for alternate driving directions using the "Left Shoulder" and to solve for Estimated Drive Time at 110 mph.

It keeps defaulting to "take a left on Route 666" with Drive Time as "Train Wreck to Oblivion". Will try Google Maps/Directions.


Posted by Donald L. Luskin at 1:29 PM | link  


Wednesday, December 09, 2009

KUDLOW REPLAY   Here's the YouTube video of last night's appearance.


Posted by Donald L. Luskin at 4:27 PM | link  


Tuesday, December 08, 2009

CREATIVE STIMULATION WITH MALT BEVERAGES 101..PUT IT DOWN AS SCIENCE CLASS PROJECT, BABY!!!   From DC-insider "Mick Danger":
Think that one day the Government will waste so much money even they will run out of ways to waste money?

Ah, no. You gotta see this report compiled by Senator Coburn.

Number 12 is off the charts crazy. $350 million to compile a obsolete broadband chart? Just stupid.

Number 33 is...well, it’s downright dangerous.

33. Study on "Hookup" Behavior of Female College Coeds ($219,000)

The National Institute of Health (NIH) is using stimulus funds to pay for a year-long $219,000 study to follow female college students for a year to determine whether young women are more likely to hookup — the college equivalent of casual sex — after drinking alcohol.. Researchers will recruit 500 female students prior to their first year of college and contact them monthly over the course of a year to document sexual hookups, noting when there is alcohol involved.164 It is part of the $7.4 billion the NIH received in the American Recovery and Reinvestment Act to support scientific research.

Yeah, it’s the set up for a thousand bad jokes, but resist. Someone is going to get hurt.

Posted by Donald L. Luskin at 7:34 PM | link  

GUILT BY ASSOCIATION?   Or just the magic of compounding? Or proof that two wrongs only make a bigger wrong? A Rasmussen report:
Rasmussen surveyed likely voters with respect to...Paul Krugman... Krugman scores exactly even, 22 percent favorable and 22 percent unfavorable, with 55 percent knowing nothing about him. Of those who know who Krugman is, 4 percent view him "very favorably" and 6 percent "very unfavorably."

...Here's the interesting part: in a separate survey, when Krugman was identified as "New York Times columnist Paul Krugman," his numbers plummeted to 25 percent favorable and 37 percent unfavorable. ...All of which suggests that the public has pretty well caught on to the Times, which, as Rasmussen notes, was viewed favorably by only 24 percent in a 2008 survey.

Via Powerline, with thanks to Mark Spahn.

Posted by Donald L. Luskin at 12:57 PM | link  


Monday, December 07, 2009

WHAT'S THE POINT OF THIS?   I mean, really. Here's the left half of a junk-mail envelope I got today. I've heard of sugar-free gum, or a drug-free work-zone... but this is ridiculous...


Posted by Donald L. Luskin at 8:20 PM | link  

SECOND BEST CHRISTMAS DECORATION EVER   You already saw the first best here. Now William Heasley sends along the second best:


Posted by Donald L. Luskin at 1:50 PM | link  

THE ULTIMATE STIMULUS PLAN?   Check this out. Apparently the government knows that the world is going to end in December 2012. Is this a strategic leak, designed to get us to spend all our money now, since we won't need it after the world ends? But maybe it's not a trick. Maybe the government really does think the world is going to end in 2012. Reader Mark Spahn says,
Why, in recent years, has the government taken on multi-teradollars of debt? They know something we don't know: that they'll never have to pay it back.

Posted by Donald L. Luskin at 11:26 AM | link  

CHRIS DODD CRACKS DOWN   Or his he really cracking up? From my DC-insider friend "Mick Danger":
Here’s a graph from EconompicData, based on data from a Forbes feature on income inequality:

Which side of the graph needs to be attacked? The side not earning enough? Better opportunities? Lower taxes? More education? All those remedies sound so slow and so unpredictable and so much like work.

In politics, you attack the other guy, no matter the facts. If you want to “crack down” you have to attack those who are “up.”

Note that the most unequal place in America is southern Connecticut, a place represented by Sentator Chris Dodd. Dodd is “cracking down” according to the New York Times:

Like Frank's bill, Dodd's measure calls for cracking down on the over-the-counter derivatives market, hedge funds, credit rating agencies and executive pay, as well as stiffening government safeguards for consumers and investors.
Are we to conclude that if Dodd is successful in “cracking down,” then the problem of “income disparity” will be solved in his home state as fewer people in Connecticut will be successful?
Update... Reader Mark Spahn comments,
Do you understand the graph?

It seems to be referring to population quintiles, saying that -- to take Southern Connecticut as an example -- the highest-income top 20% of people (red plus green) have annual incomes ranging from $40,000 to $900,000, and among them the top 5% of people (green) have incomes ranging from $400,000 to $900,000. The "second 20%" quintile of people (maroon) have incomes from $15,000 to $40,000. It is not clear whether this "second" quintile is second from the bottom, or second from the top. And the bottom-20% quintile of people (blue) have an income range from $0 to $15,000. Question: What happened to the third and fourth population quintiles? How much do they earn?

And more from Mark:
I'm sorry I wasn't clearer. What struck me was that of the five quintiles, just three of them -- the bottom, second, and top quintiles -- span the entire range of incomes, from $0 to $900,000.

If I am reading this bar graph correctly, in Southern Connecticut, the bottom 20% of people (blue) have incomes from $0 to $15,000, the second 20% of people (maroon) have incomes from $15,000 to $40,000, and the top 20% of people (red plus green) have incomes from $40,000 to $900,000.

There are no blank gaps between the colors, so there are no possible minimum and maximum values for the income intervals of the missing two quintiles.

For example, what could be the least and greatest income for the third (middle) quintile? Or am I completely misreading this bar graph?

For that matter, there's another error. The top 5% exists interior to the top quintile (it's the top quartile of the top quintile), and yet they are laid end to end.

Posted by Donald L. Luskin at 10:49 AM | link  


Sunday, December 06, 2009

BEST EVER CHRISTMAS DECORATIONS   Reader Bob Ferguson sends this along, with a description from the perpetrator.

Good news is that I truly outdid myself this year with my Christmas decorations. The bad news is that I had to take him down after 2 days. I had more people come screaming up to my house than ever.Great stories. But two things made me take it down.

First, the cops advised me that it would cause traffic accidents as they almost wrecked when they drove by.

Second, a 55 year old lady grabbed the 75 pound ladder almost killed herself putting it against my house and didn't realize it was fake until she climbed to the top (she was not happy). By the way, she was one of many people who attempted to do that. My yard couldn't take it either. I have more than a few tire tracks where people literally drove up my yard.


Posted by Donald L. Luskin at 11:58 PM | link  

WE FORCE A CORRECTION AT VANITY FAIR   Check this out, from the January 2010 issue of Vanity Fair:

So how do you suppose Vanity Fair detected this outrageous error, having been too ignorant to catch it before publication? It's because I sent the following letter on October 8:

To the editor,

In “Wall Street’s Near Death Experience,” [November, 2009] author Andrew Ross Sorkin makes an egregious error that casts into doubt his understanding of the financial markets that he purports to explain to readers.

Describing the dire financial conditions during the week of the Lehman failure, he says “…Treasury bills were trading for less than 1% interest, as if they were no better than cash, as if the full faith of the government had suddenly become meaningless.”

For any type of bond, including Treasury bills, a low rate of interest indicates that investors have a high level of confidence in the issuer’s creditworthiness. High interest rates are required when the issuer’s standing is in doubt; this is why “junk bonds” always carry high rates of interest, to compensate for their default risk – that is why they are sometimes called “high yield bonds.” Therefore a rate of less than 1% for Treasury bills means the exact opposite of what Sorkin claims – it unambiguously indicates that the guarantee of the government has become extraordinarily valuable and meaningful, as indeed it had during that terrible week. It’s not that Treasury bills were no better than cash – it is that they were as precious and valuable and safe as cash.

I trust you will correct this error in subsequent editions.

Yours truly,

Donald Luskin

Next I got this email from Vanity Fair on November 3:
Dear Mr. Luskin,

Thanks so much for your feedback. This is a courtesy note to inform you that we’d like to consider this letter for publication in our January issue.

All best,
Julian Sancton

So why, oh why, did they decide to run a correction instead of my letter? Could it be this?

Posted by Donald L. Luskin at 11:46 PM | link