http://www.cato-at-liberty.org/…

My misadventures in state government led me to coin a phrase for what has become the economic growth model of choice for a lot of governors: “Press Release Economics.” It comes in many shapes and sizes, but it basically boils down to the orchestrated PEZ-dispensing of taxpayer money on short-term “economic growth” schemes for crass political gain.

The most common form is probably the targeted tax break and/or corporate welfare grant/loan to incite a company to relocate within a state’s borders. Politicians love these taxpayer-financed giveaways because they come complete with lots of visible media coverage: press releases, newspaper articles, radio and television reports, and best of all…the photo op. Ah yes, that priceless picture of the governor all dressed up with a hard hat, ceremonial spade in hand, and a big toothy grin.

One would be hard pressed to find justification for these political endeavors in the economic literature, but then again the little Potemkins who run state “economic development” bureaucracies don’t have time to be bothered with trivialities when there are “jobs to create.”

Today I read that Gov. John Corzine has come up with a $150 million package to help the New Jersey economy. The concoction includes two peculiar items: money for banks to get them to lend and a $3,000 check to small businesses for each employee they hire and employ for a year. “Create a job and we will send you a $3,000 check,” Gov. Corzine says.

With regard to the first one, the New York Times reports:

James Silkensen, president of the New Jersey League of Community Bankers, said he had not heard complaints from his members about needing more cash. “Our members are telling us that they’ve got money to lend,” Mr. Silkensen said. “They aren’t going to change their underwriting standards. I can’t say every bank has sufficient funds to lend. But most I have talked to are lending, though they’re being careful.”

With regard to the second one, it’s pure press release economics. Why not $4,000 an employee? Or $5,000? Why just “small” businesses? Do “large” businesses contribute nothing to the New Jersey economy? How will this initiative be enforced? How much will it cost taxpayers for New Jersey bureaucrats to make sure each and every new hire was employed not less than 365 days? How many of the $3,000 check employees would have been hired anyhow? How many jobs will be lost because of the tax burden needed to pay for this scheme and others?

Here’s a better idea, Governor: propose serious tax and spending cuts. New Jersey’s general fund is up 40% from just five years ago, which amounts to a $1,000 per New Jersery citizen spending increase. At the same time, New Jersey’s business tax climate was recently found to be the worst of the fifty states.

Why would we expect Corzine to act any different than Hank Paulson?

http://www.reuters.com/…

An $85 billion government rescue of insurer American International Group Inc looked increasingly likely on Tuesday to stave off a bankruptcy that would have thrown world markets back into turmoil.

The Federal Reserve will extend AIG $85 billion in exchange for a nearly 80 percent stake to bail out the troubled insurance giant, a person briefed on the matter said.

The deal would avoid the biggest corporate bankruptcy ever and follows a government bailout of mortgage lenders Freddie Mac and Fannie Mae just over a week ago.

Then AIG shares, which had sunk 21 percent in regular trading, fell as much as 48 percent in after-hours dealings after reports of a rescue that could wipe out shareholders.

The New York Times, which had reported that AIG could file as soon as Wednesday for bankruptcy protection, later reported the deal with the Fed.

“This would mean another shareholder wipeout,” said David Ader, head of government bond strategy at RBS Greenwich Capital in Greenwich, Connecticut.

Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson were briefing members of Congress on the deal on Tuesday evening, a Treasury official told Reuters.

“They’re too big to fail. AIG touches too many people and too many companies globally, and it would be much more of a disorderly event if it went bankrupt than it was with Lehman,” said Anton Schutz, president of Mendon Capital in Rochester, New York.

Of course they did. The government goes back on it’s claim, tax payers get it in the ass and the economic problems will continue that much longer.

I bet Lehman Bros. is a bit pissed.

UPDATE:

A bit more info over at CNN:

The line of credit to AIG, which is available for two years, is designed to help the company meet its obligations, the Fed said. Interest will accrue at a steep rate of 3-month Libor plus 8.5%, which totals 11.31% at today’s rates. AIG will sell certain of its businesses with “the least possible disruption to the overall economy.”

AIG will sell certain of its businesses with “the least possible disruption to the overall economy.” The government will have veto power over the asset sales and the payment of dividends to shareholders.

The company’s management will be replaced, though Fed staffers did not name the new executives. The board will remain. For customers, it will be business as usual, officials said.

Two years ain’t no bridge loan.

http://blog.wired.com/…

Arlen Specter, the Republican leader of the Senate Judiciary Committee, on Wednesday demanded an independent investigation into “Spygate.”

The announcement came three years after it was first disclosed President Bush had authorized a secret electronic eavesdropping program on Americans without warrants in the wake of the September 11 terror attacks.

But Specter wasn’t referring to that.

Instead, the Pennsylvania senator is demanding an inquiry into the New England Patriots’ secret videotaping of opposing NFL coaches’ signals on the sidelines — an affair sports writers have dubbed “Spygate.”

We are not making this up. Specter said such behavior, a violation of NFL rules, is damaging to the sport. Call it Specter’s own Patriot Act.

“It’s really an insult to the people who follow it,” Specter said. He added that the Patriots “owe the public a lot more candor and a lot more accountability.”

The league has fined the Patriots and coach Bill Belichick $750,000 each. The team’s video assistant has turned over to the NFL eight tapes of opposing coaches giving signals during games.

Apparently real-world warrantless spying isn’t as egregious as snooping on opposing NFL coaches.

Specter and other lawmakers initially talked tough when The New York Times disclosed Bush’s spying program in 2005. “There is no doubt that this is inappropriate,” Specter said at the time.

But Congress, including Specter, eventually passed the Protect America Act, which allowed government officials to eavesdrop in the United States on telephone conversations and  e-mails without warrants, if the target of the surveillance is “reasonably believed” to be overseas.

The law expired in February after lawmakers deadlocked on whether to grant immunity to telecommunications companies being sued for assisting Bush in carrying out the administration’s secret spying program before it was legal.
The Protect America Act’s expiration means surveillance must be authorized by a secret intelligence court if the wiretap is physically planted on U.S. soil.

Still, President Bush maintains that, as commander in chief, his administration has warrantless spying powers regardless of the Fourth Amendment to the U.S. Constitution.

Again, we’re not making up this story.

Or total fucking tool? This really is just disgusting. At least the whole baseball drug thing it was related to the whole war on drugs thing which many people still oppose. This is related to an extreme breach of the Constitution and public trust which the executive branch not only hid from the public and the other branches of government but blatantly lied about. This asshole is more concerned with a fucking sporting event then the American people or even his own person and family. How does he think the ex-New York governor got caught?

And yet this jackball will get reelected.

Back in February I posted about Operation Torch. The New York Times article said: “Officials said the operation would begin in March.” Well, as you’d expect from the government they have just now started their increased militarization of the city.

http://wcbstv.com/…

The NYPD is pulling out all the stops to beef up safety of the subways. On Thursday it launched a new anti-terror effort called “Operation Torch,” but the cost of the program is raising some eyebrows.

The NYPD’s new firepower consists of cops with Mp5 submachine guns, rifles, body armor and bomb-sniffing dogs.

Starting Thursday, five or six teams a day will patrol the major transit hubs in the city in the new program, all thanks to a 50 percent increase in a Homeland Security grant.

“Times Square, Grand Central, Penn Station … the locations you would expect, but not only those locations. The assignments will vary and will be following no discernible pattern,” NYPD Commissioner Ray Kelly said.

Many straphangers were thrilled to see the city going all the way to protect its citizens.

“It’s a very good idea,” Patricia Knight Williams said. “It’s like a deterrent. It’s going to make me feel safer, much safer, yes it will. It’s a good idea.”

Is Patricia Knight Williams high, retarded or being sarcastic? I’m hoping the latter.

The city’s massive subway system, With 5 million riders a day, has long been considered a potential terror target ever since Sept. 11, 2001.

Similarly equipped NYPD units known as “Hercules” teams have been patrolling the ground on Wall Street, the Empire State Building and other city landmarks.

Everyone seems to like the idea of an added police presence, particularly to fight terrorism on subway platforms, but then when you mention the price tag — $151 million – then people aren’t so sure.

“I think it’s a waste of money,” Michael Rivers said. “If someone wants to put a bomb in the subway how do you stop it?”

“It’s a hard time for a lot of people. That’s a lot of money to spend,” Ellen Payne added.

“Everybody has their opinion,” Kelly said. “We think this is a reasonable expenditure of funds. We’re doing everything that we think is appropriate to prevent another attack.”

Of the $151 million in the federal grant, $30 million will be used for this underground anti-terrorist program for the next two years.

As I’ve pointed out several times… this will do absolutely nothing. Their coverage is too small, they don’t check every entrance. When I was stopped the other day to have my bag search at South Ferry and declined I just went to the Yellow line which had not a single cop in the station.

I’ll be sure to post photos of these roaming gangs as soon as I run into them.

http://www.bobbarr2008.com/

http://thirdpartywatch.com/…

According to bloggage at the New York Times (confirmed by other sources), Bob Barr announced today that he’s (drum roll, please) … forming an exploratory committee.

Barr’s newly launched web site also bears the “exploratory committee” label.

Don’t know about y’all, but I’ve never heard of a prospective presidential candidate forming an “exploratory committee” weeks after his party’s only primaries, less than two months before his party’s presidential nominating convention, and only seven months before the general election.

Then again, I’ve never heard of a two-term former US Senator and Democratic presidential candidate jumping the partisan fence one day and declaring for his new party’s presidential nomination the next day, either.

It’s turning into a very strange election year indeed.

It sure is. The LP lineup is very thick. The convention is going to be really crazy I’m sure. Ruwart, Barr, Phillies or Imperato? Decisions, decisions.

Barr’s site looks awfully familiar doesn’t it?

http://www.cnn.com/…

New York Gov. Eliot Spitzer is under investigation for allegedly meeting with a prostitute in a Washington hotel, two sources with knowledge of the investigation tell CNN. One of the sources said Spitzer is identified in a criminal complaint as “Client-9,” and that Spitzer’s alleged involvement was caught on a federal wiretap.

The criminal complaint involved an alleged high-end prostitution ring run out of New York. Four individuals were charged last week with allegedly running it.

Prosecutors say the ring provided prostitutes costing as much as $3,100 an hour. The criminal complaint did not name any customers, but authorities did intercept text messages, e-mails and telephone calls.

Spitzer on Monday said he “acted in way that violates his obligation to his family,” without elaborating or taking questions.

His statement came hours after the New York Times reported he told senior administration officials he had been involved in a prostitution ring.

While I love seeing statist like Spitzer getting his this is just ridiculous. 1) Who the hell cares about his infidelity? 2) Why do we continue this retarded prohibition on individuals exchanging money for sex? 3) Why the hell is the federal government wiretapping people who are suspect of requesting or providing sex for money? I sortof understand 1 and 2 but no one in the media is making any sortof noise about 2 & 3. There are all kinds of property rights issues and Constitutional questions here that no one is bringing up outside the libertarian and civil liberty news circles. I don’t think much needs to be said really. [insert your typical anti-prostitution prohibition and pro privacy / 4th Amendment argument here]. Aren’t they supposed to be busy spying on Americans speaking with foreigners or something?