CNN just has a segment on credit card companies raising interest rates and/or changing billing cycle lengths. The teaser for the segment mentioned being “rate jacked” and said that it can happen even if you have “perfect credit.” Just before the commercial break the host asked “What can you do about it?”

Oh oh!!! I know!!! Not sign the contract which gives them the OK to do such a thing. Don’t get a credit card. Live within your means or take out a loan. I’d even go further given my appreciation of the title transfer theory of contract and say that it’s their money and they can put any conditions on it being lent out at any time regardless of the the contract.

But what was CNN’s answer? Government interference. Christopher Dodd has a bill that apparently got stuck in committee which would make it illegal to do “those things which make credit card holders so angry” such as sudden rate and schedule changes. Showing, IMO, an implied approval of the bill CNN asked Dodd’s office why it hadn’t passed yet receiving a vague answer saying that the credit card industry has push back hard against it. They also asked about the over $4 million which he has received from the financial industry in his last campaign but they refused to respond. Not that I blame them. The way the news organizations and politicians calculate those numbers are bogus. I work in the financial industry. I donated to Ron Paul. I’d be considered the “financial industry” when someone looked it up even though I donate personally and not on behalf of the company I’m employed at. In any case their solution was anti-personal responsibility, anti-freedom and unconstitutional.

http://kotaku.com/…

About seventy-five percent of game industry presidential campaign donations went to democrats, based on a sampling of developers and publisher donations over the past two years obtained from the Federal Election Commission.

Kotaku looked at presidential campaign donations for nine companies from January of 2007 through the end of July, 2008. The companies included were Activision, Blizzard, Electronic Arts, Nintendo, Sony Computer Entertainment of America, Take-Two, THQ, Ubisoft and Valve.

The database showed that the nine companies donated a total of about $97,800 to ten candidates, about $61,000 of which went to democratic candidates, while about $36,700 went to republican candidates.

The company with the largest contributions to campaigns was Electronic Arts, followed by Activision and then Valve. The company with the smallest amount of donations was Take-Two. Hit the jump for an avalanche of colorful pie charts and one, single, lonely bar graph.

The graphs unfortunately are scaled down too much to clearly see the legends on all of them but it is clear that while they lean Democratic party, Ron Paul was the favorite Republican. Being that I’m a gamer and a supporter of Ron Paul I’m glad to see this. Especially the Sony breakdown.

http://query.nytimes.com/…

Fannie Mae Eases Credit To Aid Mortgage Lending

By STEVEN A. HOLMES

Published: September 30, 1999

In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

The action, which will begin as a pilot program involving 24 banks in 15 markets — including the New York metropolitan region — will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

…

In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

”From the perspective of many people, including me, this is another thrift industry growing up around us,” said Peter Wallison a resident fellow at the American Enterprise Institute. ”If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.”

In July, the Department of Housing and Urban Development proposed that by the year 2001, 50 percent of Fannie Mae’s and Freddie Mac’s portfolio be made up of loans to low and moderate-income borrowers. Last year, 44 percent of the loans Fannie Mae purchased were from these groups.

The change in policy also comes at the same time that HUD is investigating allegations of racial discrimination in the automated underwriting systems used by Fannie Mae and Freddie Mac to determine the credit-worthiness of credit applicants.

It was obvious to just about everyone… yet Democrats in particular… the likes of Dodd, Clinton, Schumer, Reid, Obama, etc. endorsed and in several cases explicitly benefited from the Community Reinvestment Act, Fannie Mae and Freddie Mac.

The CRA was not the only or even the most important aspect which lead to the current crisis. Bad lending couldn’t have been sustained or would have been possible if not for the Federal Reserves incredibly low interest rates and market manipulation. The CRA was the vehicle which the rode the low interest wave to creating the boom.

http://www.bloomberg.com/…

U.S. presidential candidates John McCain and Barack Obama each deserve credit for a breakthrough in talks on a $700 billion plan to revive the credit markets, their advisers said today.

Republican McCain worked with party members in the House to achieve plan changes such as government insurance of mortgage- backed securities and a phase-in of federal aid, Senator Lindsey Graham said on the “Fox News Sunday” television program.

“The fact is the House Republicans were not in the mix at all” until McCain arrived at the talks, said Graham, a South Carolina Republican. McCain “was decisive in regards to the House being involved.”

Senator John Kerry, an Obama adviser, disagreed. McCain said “he was going to interrupt his campaign to come down and save the negotiations,” according to the Massachusetts Democrat. “What he did was interrupt the negotiations to come down and save his campaign.”

Senate Banking Committee Chairman Christopher Dodd said in a CNN interview today that McCain’s trip was “a political stunt” that “delayed and slowed down this process.”

Obama was supportive of negotiations in a “mild” and constructive” way by calling in over eight or nine days of talks, said Dodd, a Connecticut Democrat.

If they want to take credit I’m happy to give it to them. When the depression comes I just hope whichever clown is in office will take the blaim.

• Grants for “Youth Engagement Zones”, “not less than $250k and not more than $1m. Eligible partnerships include: a community-based agency, local educational agency, a State Commission or State education agency, local government agency, office of the chief executive officer of a unit of general local government, institution of higher education. Priority given to “eligible partnerships that serve high percentages or numbers of low-income students.” “including partnerships that serve urban, and partnerships that serve rural, communities.” $20m, $30m, $30m, $40m, $40m appropriated for 2009, 2010, 2011, 2012, 2013 respectively. The funds must be used for: ’solve specific community challenges’, ‘improve student engagement, including student attendance and student behavior, and student achievement, graduation rates, and college-going rates in secondary schools’, ‘involve an increasing percentage of secondary school students and out-of-school youth in the community in school-based or community-based service-learning activities each year, with the goal of involving all students in secondary schools served by the local education agency and involving an increasing percentage of the out-of-school youth in service-learning activities over the course of 5 years’, ‘encourage participants to continue to engage in service throughout their lives.’
• Grants for “Campuses of Service”, not more than 30 annually. $10m for each fiscal years 2009 through 2013. For 2 or 4 year, public or private institution of higher education.
• Service-Learning Impact study. 10 year longitudinal study on the impact of the activities carried out. Examining student academic achievement, student engagement, graduation rates, the degree to which the participants in the activities engaged in subsequent national service, volunteering, or other service activities. Allocation “such sums as may be necessary for each of fiscal years 2009 through 2013.”
• Sec. 167. Establish the “Commission on Cross-Sector Solutions to America’s Problems.” 21 members. 9 appointed by the President, 3 by Senate majority leader, 3 by Senate minority leader, 3 by Speaker of the House, 3 by the House minority leader. No more than 11 from the same political party. “The Commission shall conduct a thorough study of all matters relating to was in which the Federal Government can work more efficiently and effectively with nonprofit organizations and philanthropic organizations… in achieving better outcomes.” “The Commission may accept, use, and dispose of gifts or donations of services or property.” Terminates after 6 years
• Sec. 167A. “Community Solutions Fund grant program.” Make grants for periods of 5 years, and may renew for 5 years. Not less than $1m not more than $10m. For entities focused on improving measurable outcomes relating to: education for economically disadvantaged students in public schools, child and youth development, reductions in poverty or increases in economic opportunity for economically disadvantaged individuals, health including access to health care and education, resource conservation and local environmental quality, individual or community energy efficiency, civic engagement, reductions in crime. Funds must be matched not less than $1 to $1.
• Sec. 167B. “Innovation Fellowship grants.” “To individuals to pay for the Federal share of carrying out projects in which the individuals establish innovative nonprofit organizations to address national and local challenges.” For periods of 2 years. Not more than $100k. Not more than 25 in a fiscal year.
• To carry out section 167, such sums as necessary. Section 167A: $50m, $60m, $70m, $80m, $100m for 2009, 2010, 2011, 2012, 2013 respectively. For 167B: $3.5 for 2009, $5m each year after.
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Opening:

• Was just visited by Henri Makembe. Told me they would be providing for interview with people but I’d have to keep it friendly. “If we make them mad then they won’t want to give any of the other bloggers time.” So… they don’t want me to ask serious questions. What a surprise.
• Have quoted Winston Churchill, Mother Teressa, Mahatma Gandhi.
• They show all these examples of service yet they all appear to be real voluntarism, ie no government involvement.
• “We are not here as Republicans, Democrats, libertarians, socialists or Green party members. We are here as Americans.” I appreciate the shout out but I’m here as a libertarian.
• “We are here today because of Declaration of Independence and the Constitution.” Too bad they don’t wish to abide by the ideas contained in those documents.
• “Politicians get a bad wrap. Some deservingly. But there are all kinds of politicians who help America.”
• Being a citizen of the United States is the highest reward.
• If you googled “giving back” you’d likely find “Mike Bloomberg.”
• Bloomberg: New York City’s government school system improvement is an example for the rest of the nation.
• New York City is the city of service because William James who wrote The Moral Equivalent of War (intro by Jon Roland) advocating national service was born here.
• “We are the beneficiaries of those who give their lives to defend us.” Defending from the Koreans? The Vietnamese? The Iraqis? The Pakistanis? The Iranians?
• Bloomberg babbles on about global warming, “We are polluting the air we breath.” Yes… by breathing.
• “Service should be asked of everyone and should be open to everyone. So we are creating new programs.”
• “Democracy and capitalism hasn’t helped everyone…”
• George Bush: Asks everyone to spend two years or 4k hours helping out in a lifetime.
• Laura Bush: “People have more opportunities to volunteer through government programs.” Being incentivized by tax payers money is not voluntarism.
• Rolling Ridge elementary school gives it’s kids service journals and have made ’service’ party of the curriculum.
• “Children who learn the importance of service early are more likely to volunteer later in life.” Gotta indoctrinate them young.
• The program has moved on to personal stories from ‘volunteers.’ One from City Year, Civilian Conservation Corp, AmeriCorps.
• Admiral Michael Mullen: “the soldiers in Iraq are protecting our democracy at home. They are there because of what happened on 9/11.” I thought Iraq had nothing to do with 9/11. How is it that our invasion of Iraq is protecting us?
• “There is no greater reward than working for something greater than yourself.”
• “Keep singing (God Bless America), keep waving (flags), and keep serving!” Yay nationalism/fascism!
• Obama, McCain, Dodd, Clinton have said they will cosponsor the Serve America Act from Kennedy and Hatch.
• The language used always refers to “the two candidates for the oval office.”
• Senator Hatch: “We want to help children who want to serve.”
• “Our efforts will start early in our classrooms.”
• “Service learning has shown to keep kids interested in school. So we are going to offer more incentives.”
• 61 million Americans volunteer without government incentives.
• “We will invest into a volunteer fund matched dollar for dollar from the private sector.”
• Want to create funds to help non-profit entrepreneurs.
• Offer older people “education rewards” to give to their children and grandchildren to pay for school.

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