Chicago Daily Observer

With the Fannie and Freddie in the news.It’s important to look at how the GSE‘s lobbied Congress to build their dishonest balance sheets.NPR has a list of the politically connected that made it to the GSE boards.Before coming to Congress,Rahm Emanuel was a Freddie Mac board member.This means Rahm Emanuel has some explaining to do.The Chicago Sun-Times reported on Rahm Emanuel’s background :

Escapes controversy during impeachment. Leaves White House in 1998, never having to hire a lawyer. Clinton loyalist.

Chicago: Returns to Ravenswood, makes millions as an investment banker in a few deals; tapped by Clinton for a plum spot on Freddie Mac board; Daley appointee on CHA board. Wins House seat in 2002 with help of Daley Machine. Daley loyalist.

Here’s Rahm Emanuel promoting housing in front of a Congressional hearing,after he left Freddie Mac.What did Congressman Emanuel how about Freddie Mac’s balance sheet? What ... Read More...

Lets see, the price of oil has dropped nearly $14/barrel in the last two days. Perhaps the Feds should rescue the oil speculation industry before losses are too high for oil traders.

The New York Times says the Economic Slowdown has pushed oil prices down, which is hard to swallow given that the economy is still growing, manufacturing is still booming, consumer spending rose in May at a record rate, and the Dow Jones was up over 200 points, none of which are signs of a slowing economy. Perhaps people are using less gasoline, because they don’t want to pay so much for fuel, a possiblity that the Times ignores.

And perhaps we should all read the Waco Tribune, for some buried news, and a quote from a Chicago man, that didn’t make the New York Times:

Light, sweet crude fell $6.35 to $138.83 a barrel in electronic ... Read More...

Confidence in the economy is very low. Oil prices are very high. Stock prices are falling. Financial companies are losing money…some are failing. The government is busy bailing out Fannie Mae and Freddie Mac, creating “stimulus,” establishing new lending facilities, and cutting interest rates. With all of this happening at the same time, it’s not surprising that some people are questioning the basic underpinnings of capitalism. Trust in free markets seems to be falling and the idea of “market failure’ is gaining ground.
For example, United Airlines just sent an open letter to all its customers asking them to join in a protest against “market speculation,” which it says is driving up oil prices. At the same time, politicians are demanding more regulation of financial institutions.
A running theme is that if only the government had been more active in the first place, these problems could have been ... Read More...

“In serious consideration for ambassador to Belarus.” That’s the role John McCain joked that former senator Phil Gramm might have in a McCain administration. Gramm is McCain’s most senior economic adviser, the one best qualified to lead the finance team of a McCain presidency. Now, however, Gramm faces political exile because he made the mistake of telling the truth.

What prompted the abrupt demotion? The short answer is what might be called Campaign Econ. Campaign Econ says the American economy is a certain way because Americans think it is. Campaign Econ competes with real economics and often wins

Over the 4th of July holiday, I, like many of my colleagues, was able to speak with hundreds of constituents. Folks were more eager than ever to talk to me about unaffordable energy prices. And when they asked what Washington is doing to address this issue, unfortunately, I had to tell them nothing. But not because of a lack of Republican will.

Despite Democrat promises of ‘common sense’ plans to lower gas prices, the average price of a gallon of gas has increased by more than 76 percent since they took control of Congress.

To listen to Democrats, Congress can’t wait to crack down on all those greedy “speculators” who are driving up the price of oil. To listen to one Democrat in particular, Illinois Sen. Dick Durbin, is far more illuminating.

If the powerful majority whip is looking a little thin these days, it’s because he has been feeling the squeeze.

On his left is his party, wild to find a villain on whom to blame high gas prices, intent on deflecting attention away from its own antidrilling policies. It has settled on those unfortunate traders who deal daily in contracts for the world’s short supply of oil.

If Phil Gramm can upset both Sen. Obama and John McCain, he must be doing something right.

Seven consecutive years of quarterly economic growth is not a recession;it is an near miracle given the rising cost of commodities and an expensive war in Iraq. Yet for having the audacity to point out something that has been pointed out here in the Chicago Daily Observer numerous times (The United States is not in a recession), Phil Gramm is taunted by the most economically backwards candidate since William Jennings Bryan (Sen. Obama) and chastised by Gramm’s theoretically free-market boss, Sen. McCain.

Yet the media whines daily about economic doom and gloom, and certainly on an individual level, there are always some problems with the economy. However the severity of these problem is minor when compared with the tanking after 9/11 or the downturn in the early 1990’s. Historically low unemployment, low inflation, ...