Chief of Staff Singing?

Via Hot Air:

John Harris resigned this morning as Gov. Rod Blagojevich’s chief of staff, his lawyer said.

Harris dropped off his letter of resignation today in person and will not be going back to the office, according to his lawyer, Terry Ekl.

Today’s resignation of Blago’s CoS may signal leverage in the State’s case against many in the Chicago Political Machine.  This could be the accelraant needed to start the fire.  Harris could prove very valuable in this investigation and any subsequent investigations.  I guarantee many politicians associated with the IL Governor just took and are holding a huge breath.  More to come, and much more to come, and more….

-reagan21

Just Another Reason to Drill Here and Drill Now

Hot Air via Investor’s Business Daily:

It seems funny to talk about a $1 trillion taxpayer- and debt-funded “stimulus” plan when there’s something we could do right away to boost the economy, create hundreds of thousands of jobs, shrink our trade gap and secure our energy independence: Drill for oil here, and drill for it now.

October’s trade data tell why. Despite a record plunge in oil prices from the late summer and into fall, the actual volume of oil we imported went up. Oil still accounts for nearly half our trade deficit (see chart) compared with less than 30% two years ago.

Worse, at the peak of the oil-price spike, we were spending nearly $700 billion a year on foreign oil — an amount equal to the massive U.S. financial bailout passed last summer.

It’s not like we don’t have oil ourselves; in fact, we’re drowning in the stuff. But we’ve been told for years we can’t drill for it because it might spoil the wilderness or add to global warming.

If we develop our own supplies, we won’t have to worry about ever being cut off, as happened during the 1973 Arab oil embargo. Nor will we have to worry about high energy prices pushing the economy into recession.

We keep hearing there isn’t enough domestic oil to make a difference, but this is utter nonsense. According to U.S. government estimates, 86 billion barrels of oil lie undeveloped in the outer-continental shelf alone. Another 36 billion or so can be found offshore Alaska and in ANWR. Add to that 30 billion barrels or so in the lower 48. And even that understates the total.

The Green River basin, which straddles a wide swath of the West stretching from Colorado to Idaho, contains 1 to 2 trillion barrels of oil trapped in rock shale deposits. Yes, trillion.

Put in perspective, since the advent of the oil age in 1859, total world oil use has been 1 trillion barrels. Today, the U.S. pumps just 3.5 billion barrels of oil each year, while consuming about 7.5 billion. By exploiting what we have, we could be energy-secure for at least 100 years while we figure out how to make economically viable alternatives to oil. And taxpayers wouldn’t have to foot the bill.

For real stimulus, and a safer America, let the drilling begin.

-reagan21

TARP Money to Detroit is Illegal

Thank Heavens the Auto Bailout failed last night, but Bush wants to use TARP money for the bailout.  Last October Congress passed a bill to create TARP to bailout FINANCIAL INSTITUTIONS.  The Big Three are not financial institutions, they manufacture cars.  Unless the Big Three changed their business model overnight, I must assume the manufacturing companies are not in the financial industry.  Any TARP money which goes to bailout Detroit would be in violation of the law you just passed.  Financial Institution is defined as the following:

FINANCIAL INSTITUTION- The term ‘financial institution’ means any institution, including, but not limited to, any bank, savings association, credit union, security broker or dealer, or insurance company, established and regulated under the laws of the United States or any State, territory, or possession of the United States, the District of Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands, and having significant operations in the United States, but excluding any central bank of, or institution owned by, a foreign government.

Stop the Bailout as is.  We need alternative measures.

-reagan21

Thank-You Senator Corker

UAW .... waiting for their man.

CORKER PROPOSAL INCLUDED:

Reduced indebtedness of company by 70%.

Debtholders would be crammed down significantly just like in bankruptcy.

Jobs bank had to be taken out  – which the UAW finally agreed to take out – as if … (apparently the UAW thinks paying workers full wage for NOT working is fine & bailout money should help pay too – I don’t know anyone who gets to remain on the payroll for NOT working – that is ridiculous, but I’m not paying for that nonsense).

SENATOR CORKER:

Got down to one last question: “Can you give us a date in which you will be competitive with Honda, Toyota, BMW, and Nissan?”  (A: I can’t tell you, no date) – TBV: Corker wanted a date and they were unwilling to give one – UAW workers make apx. $30/hr more than non-union autoworkers .. mainly b/c “legacy costs” – also known as generous retiree payments/benefits, still get paid and are choking the Big Three …  and that had to change in order to make them competitive … everyone knows that but the UAW won’t bend – even to the demise of the companies who pay the salary – but why should the taxpayer pay their salary and these “legacy costs”?  We shouldn’t.  The union-negotiated agreements are killing the companies that are paying them.  It is not the taxpayer’s job to pay these costs when they are the mini-Crap Sandwiches (if I can borrow from MM) that are killing the Big Three.

Sen. Corker: “What we were attempting to do is the same as in bankruptcy but without the stigma.  The one issue the bankruptcy judge would deal with is make sure the wage structure is competitive.”  “I’m going to place a call to the UAW president – just like earlier where it was just me and a UAW representitive –> all they have to do is give us a finite time when they would be competitive – a date certain.”

Sen. Corker: “I was stunned they would walk away from a deal to put these companies on a healthy footing for years to come just because we called for a date certain.” 

“They had a guy in the room, nice guy, but with every issue he had to call a lawyer or the UAW president.” 

“Our members represent people all over this country who recognize the UAW’s payscale is making them uncompetitive.  The Secretary of Labor under Obama will favor the UAW significantly.”  (TBV: They want short term bridge loans b/c Obama will take care of them in the new year – that is why they are not bending with agreeing to restructure their wage structure).

THE FACTS

– if you are an UAW autoworker, (total compensation including union “legacy costs”) pay is  $72.31/hr   (Toyota: $44.20/hr)

– UAW autoworker has agreement in place until 2011 – they do not want to renegotiate, especially if the wage structure will have to become closer to that of Toyota.

– Bankruptcy will require that these agreements be renegotiated and the judge decides before approving the Ch. 11 plan

 

TBV:

Congrats to the GOP caucus for sticking to its guns and voting against this crap sandwich.  If the UAW and the Big Three don’t want bankruptcy they need to agree to similar restrictions as bankrutpcy would require if they want the U.S. taxpayer to bail them out instead of hashing out a Chapter 11 plan that the requisite majority of creditors agree to and the judge approves.  If the UAW takes TARP money instead, which they are calling for now, there needs to be the same restrictions on the UAW as what the GOP caucus was requiring, esepcially getting rid of the jobs bank and restructing the wage structure.   TARP money is taxpayer money and Taxpayers Are Really Pissed – their elected representatives have spoken … we do not want to give out TARP money to the big three without Corker’s requirements.

 

– Polymath 3

Pinky Reid Trying to Sneak Bailout Negotiations.

Senator Reid has decided to hold special negotiations behind closed doors.  Reid knows he is in trouble and this was the only way for the bailout to be discussed without the threat of a filibuster or alternate plans. 

MM reports:

Prospects for an auto industry bailout revived in the U.S. Senate on Thursday as surprise negotiations on a compromise moved forward and a vote was possible later in the day.

Senate Majority Leader Harry Reid said on the Senate floor that the deal, if struck, “would overwhelmingly pass” the chamber that just hours ago seemed resigned to sending the automakers back to Detroit empty-handed.

The scenario at the core of the possible compromise was proposed by Sen. Bob Corker, a Tennessee Republican, who would grant loans under stricter conditions than favored by Democrats and the White House.

“Good faith negotiations are going on as we speak,” Reid said.

We will now see if the GOP backers of a filibuster have the courage to stand up to Reid and the nationalization of the American auto industry.  The Republican opponents are reluctant to write another check for private industry after a Wall Street bailout Congress approved at President George W. Bush’s request, triggering a public backlash. Republicans question if the auto plan would work or merely increase the record federal deficit.

 

“The best route for the long-term viability of ailing car companies may be a rocky one,” said Senate Republican leader Mitch McConnell. “Government help is not the only option. It’s not even the best option.”

More to come tomorrow; I am sure of it.

-reagan21