We have two options. We could make a list of all of the stimulus projects that were nothing but fraud, waste, stupidity, political paybacks and corruption. Or, we could make a list of stimulus projects that have been good investments.
Let’s do the second list. It would be much shorter. In fact, there might not be anything to put on that list. However, there is yet another item for the first list.
What is it?
Anyone remember WorldCom? WorldCom was one of the largest corporate frauds in US History. And one of the key players in the WorldCom collapse, someone who served time in a Federal Prison for his role in the WorldCom fraud, has received a stimulus loan guarantee.
The loan guarantee is for David Myers and a partner to purchase a home healthcare business in the Mississippi Delta.
WorldCom, just for those who do not remember it, was a massive fraud that wiped out $184 billion dollars in assets, and cost 17,000 people their jobs. Myers pled guilty to falsifying the company’s books so they could create an $11 billion dollar fraud.
Myers did not commit a fraud in obtaining the loan guarantee. He disclosed his conviction and there is no law prohibiting someone like Myers from getting a loan guarantee.
There should be.
There is a huge difference between simply screwing up and making a mistake and participating in a fraud that wiped out a massive company and cost 17,000 people their jobs.
When you commit that kind of crime, there should be consequences that follow you the rest of your life so that others are discouraged from doing similar acts.
While everyone jumps up and down and screams that someone like David Myers could get a loan guarantee, there is a more obvious problem that no one is addressing.
Why do we even have these loan guarantees?
Banks make money by loaning money. They charge interest on their loans not only to cover their risk but also to make a profit.
If David Myers’ venture is such a great idea, why does he need a loan guarantee?
Loan guarantees are nothing more than crony capitalism. They guarantee the bank will not lose money.
Unfortunately they take a significant part of the free market out of play. Risk is a factor every businessman considers. But if the possibility of personal liability is taken out of the equation, people will take foolish chances.
In business, those foolish chances often spell disaster. Banks do not care because their loses are covered.
Would a bank under any other circumstances give this loan to David Myers?
I suspect not.
If insanity is trying the same thing over and over again, expecting a different result, can we argue that giving these loan guarantees out is insane?
We have seen business failure after business failure with these loan guarantees. We have seen this with the so-called “Green energy” projects such as Solynrda. We have seen it in the guaranteed student loan program.
Time and time again, loans are made that if it were not for the government taking the risk for the bank, no such loan would ever be made. We see money being poured into bad businesses and we see students being buried alive in mountains of debt, used to pay for degrees that in many instances are totally worthless.
Meanwhile the bankers stand with their hands out for the government to cover their losses on bad loans and they celebrate their profits on good loans.
The loan to David Myers is an outrage. But it is a symptom of a much worse problem.
It is time we start asking our Congressmen and Senators why they allow these programs to continue.
Permalink Reply by Sumsanity on No, it is past time to start asking congressmen and these crooks in the senate why they allow these programs to continue. We know why, to serve their own selfish pursuit of wealth power and prestige at the American taxpayers' expense.
It is way past time to tell them, to demand that they cease and desist all spending that doesn't have rock solid unassaiable funding.
Since we are 16 trillion dollars in the hole, I'd say giving the federal government tax money is the worst investment in the history of planet Earth.
Anybody who disagrees, please, point out a worse return on investment.
Permalink Reply by John Bellaire on Other than welfare, few people have money given to them. Some other common ways to get money are working, smart investing, winning a lottery, marrying it, taxation, or simply stealing it. However, If it is a failed government program, it is called a mistake or poor judgement, not theft.
Permalink Reply by OneCitizenOfTheRepublic on Judson, the point of your article...uncontrolled waste and fraud is a good one, a matter of fact. However, don't you think it is time we quit blaming the elected officials over whom it seems we have exercised little control once we push the voting button...and start putting the responsibility where we have the most influence...our own actions or inactions of citizenship, (truly the lack thereof)?
The old scripture says that "our heart is where we believe our true treasure is." Time is one of those treasures...and where do we spend our time? Not too much on the business of selection and then oversight of our government officials! Not too much on assuring that our children are properly educated in the core principals of what truly made our nation great in the first place...faith in God, the duty and responsibilities that come with the freedom and liberty (those things we give such lip service to)...yet we are still ignoring the rampant failures of our public educational system, even now failing to address this huge problem of today and future generations...Still we do nothing about the failures elected officials to control our government's spending even when every single competent economist has stated that it is unsustainable...etc. etc. etc.
I believe the truth is that the real cause of our problems in our government in Washington are much closer to home...We, the people are in denial...denial (and therefore, ignorance) of the overwhelming facts that show we the people (the actual majority of our citizenry) actually want socialism, and are indeed addicted to it.
Now before you yell... heretic, consider my argument/proof...
Social Security, Medicare/Medicaid, Food Stamps, SSI, Unemployment Benefits...all the local pork that our local representatives throw our way every year...(as opposed to those evil "other" politicians who are wasting "our" money on "their" pork projects.) And of course the aforementioned examples of those things which we have as yet left unaddressed even though we know they are destroying our homeland.
Sure we should commit and expect to make those changes to our batch of representatives that will better reflect the rational and responsible governance we so badly need...at election time...However, as a whole, the American people still don't get it...you cannot wait until election day to get engaged in the selection of candidates...especially not these days when quality candidates are few...and the costs of running a campaign are huge and controlled all too much by super PACs that have their own agenda and expectations.
F.A. Hayek was right...socialism has been growing in ALL democracies (and virtually all political parties) since WWII...because we have across the globe forgotten why and how things have worked in the past to create the amazing growth and prosperity through capitalism, through limited government, through individualism and what in Europe was called "liberalism" but is a term so much misused, and misunderstood in America today.
Yes, today we live in denial...a subconscious existence within a society that has embraced much of socialism without ever consciously realizing that to be the case. The phrase, WAKE UP BEFORE IT IS TOO LATE comes to mind. But in my own heart, I know it is too late...and that no matter what we do now...the costs of our long slumber is going to be great, the suffering unlike we have ever known in America...but it is coming. And the question now is not how to avoid it...The question must be...how to mitigate, limit, and transfer as much as possible. The truth is, that is what Europe is already doing...as they turn to the USA for loans and handouts...and will ultimately do everything they can to put more burden on us at a time when we are least able to help even our own sorry state.
The TEA party may be our last best hope...but not if we continue to blame politicians without acknowledgement that those politicians are really only giving "us" (1) what they believe "we" want and (2) what they believe we need.
It is up to the TEA party to make sure that those we elect understand that what we really need is quite different from what has been growing in D.C. But perhaps the most important roll that the TEA party must step up to...is the challenging task of re-education of our fellow citizens in the core concepts of freedom, liberty, individual responsibility and accountability...a task that will take us the rest of our lives to accomplish...for the sorry state of the American dream in our generation did not come to be over night...rather over the last 80 years...ever since we allowed the status quo in this land to included The New Deal, Social Security, The Great Society, SSI, Medicare, Medicaid, Unemployment (socialism, by any other name...still is the death of society) Centralized planning, and it's necessary consequence...the control of citizens is the main goal of socialism in any culture...As yourself, "How much of what is going on in Washington D.C. today is anything but...Centralized Planning...and federal control over every aspect of our lives?
Permalink Reply by Ralph Roshto on One more IMPORTANT point that We The People MUST drive into the vernacular of his election campaign is this:
NO PARDONS FOR ANY OUTGOING OR CURRENTLY SERVING PUBLIC OFFICIAL.
PARDONS FOR NO ONE!
NO PARDONS!
Permalink Reply by John Bellaire on Rags are used to make the paper used for printing money. Money makes banks and banks make loans, Loans make beggars and beggars make rags.
Permalink Reply by Bob Green on It's just one more aspect of the Obama re-election game plan: "If I rob Peter to pay Paul, guess what, I get Paul's vote!"
Permalink Reply by 2a5jnma1m9pz7 on CLAP CLAP CLAP, etc.
Permalink Reply by Billy Bowlegs on Asking congress? Gotta be kidding.
Think of the sound of 535 one armed congressmen clapping nd you will understand what you will get by asking.
Permalink Reply by David Gary Lakatos on Frist of all let's get the numbers right.It's not the 1% and the 99%.It's more like 1% Rich ,50%
Middle Class and 49% poor.Let's use African American for this example.I'm sure African
Americans would say that 49% poor is much higher.But I'll keep it on the low end.Now I have one
Question for the 49% poor African American?Did Obama make it easier or harder for you to make
a living in your own country by granting over 1,600,000 legal and illegal immirgrants just in 2012
alone into your country.And this is just a preview of what he (Obama) will do if he is
reelected.Because as sure as i breath oxygen he will grant amnesty to the rest of the 10 to 11
Million more illegals that are in this country.How will that your effect your chances of getting any
kind of Job.
Permalink Reply by Swede Henriksen on I think I saw this reported on the Lou Dobbs show on Fox Business.
Wasn't that "Stimulus" money?
Permalink Reply by Billy Bowlegs on http://www.c-spanvideo.org/program/MexicoBor&start=800
The one that was pulled (or part of it)
We have lost two videos since early AM. Must be scaring OBOZO Team.
Permalink Reply by Billy Bowlegs on Homeland Security Hit!
http://www.youtube.com/watch?feature=endscreen&NR=1&v=8jeeUNqtfEw
Dirty Rotten Scoundrel-Janet Napolitano
"Let me get this straight. She "didn't know about it until after Agent Terry's death or around early spring" (18 months ago, approximately), BUT she was quite fluent in speaking about it in March 2009. Ah, wasn't March 2009 like about THIRTY NINE MONTHS ago? So, she's either stupid (visible evidence of that) or she's lying (her words are evidence of that.) Stupid or lying, interesting position. " (An email to BB from a friend).
© 2013 Created by Judson Phillips.
