Politicians could suffer as PACT languishes

This is off topic, but spring practice isn’t here yet and part of this relates to the University.

The economic problems could undermine confidence in state and national politicians as things continue to worsen. Today, the Birmingham News reports the state’s prepaid tuition plan has seen its asset value decline more than 45 percent in the last year-and-a-half.

According to the News, “The Alabama Prepaid Affordable College Tuition trust fund currently has assets totaling $484 million, said Gregory Fitch, chairman of the Alabama Commission on Higher Education. In September 2007 the fund had assets totaling $899 million, accord­ing to program documents. In September 2008 the fund totaled $606 million.”

The PACT trouble could undermine state treasurer Kay Ivey’s run for higher office. Ivey has long been one of my favorite politicians. She is smart and entertaining when speaking to civic clubs like Rotary. But can this be seen as anything but bad for her candidacy for higher office?

And that is sad. I would have considered her strongly if she chose to run. According to some political polling, Ivey enjoyed good name recognition in the state (big surprise there since she won statewide office.) Maybe she would have had a shot.

Ivey’s candidacy could be the latest victim of the deepening economic panic that began under George W. Bush, but has deepened under the incompetence of Barack Obama. The Wall Street Journal spelled out the problems of pursuing the failed economic policies of LBJ, Richard Nixon and Jimmy Carter.

According to the Wall Street Journal, “The market has notably plunged since Mr. Obama introduced his budget last week, and that should be no surprise. The document was a declaration of hostility toward capitalists across the economy. Health-care stocks have dived on fears of new government mandates and price controls. Private lenders to students have been told they’re no longer wanted. Anyone who uses carbon energy has been warned to expect a huge tax increase from cap and trade. And every risk-taker and investor now knows that another tax increase will slam the economy in 2011, unless Mr. Obama lets Speaker Nancy Pelosi impose one even earlier.

“Meanwhile, Congress demands more bank lending even as it assails lenders and threatens to let judges rewrite mortgage contracts. The powers in Congress — unrebuked by Mr. Obama — are ridiculing and punishing the very capitalists who are essential to a sustainable recovery. The result has been a capital strike, and the return of the fear from last year that we could face a far deeper downturn. This is no way to nurture a wounded economy back to health.”

Anyone have buyer’s remorse yet?

And it likely will get worse. A looming concern is that with increased government consumption, increased money from the Fed and no real growth prospects this year or next, could we expect to see a return to stagflation?

2 Comments

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  1. 1
    finebammer

    funny thing is, mr. obama isn’t running the show.

    pelosi and reid are.

    this is getting uglier by the minute. i waken every morning thankful i still have a job and wondering if i still will at the end of the day.

    what has to be understood here, government caused this. and that horse is out of the barn as gene stallings might say. (and running buck wild)

    and you don’t have to search much on the net to find stories about the obama’s dancing the nights away while we the people suffer.

    oh, but we’ll cut military spending and get some money back.

    yeah, right.

    kim jung ill is about to have a stroke trying to develop a missile that will hit our mainland. nuclear tips anyone?

    ahmadenijhad watches.

    24 hrs. before obama’s trip to canada last week the canadians had to scramble fighters to turn back a russian bomber testing their airspace.

    then the rube offers up our european missile defense system for help with iranian nuclear ambitions putin himself built and sponsors.

    has he completely forgotton the russian invasion of georgia???

    oh yeah, HE BLAMED THE GEORGIANS!!!!

    and if your liked the money we spent in iraq, you’re gonna LOVE the 990 million he’s handing over the hamas.

    (how many mortgages could he buyout with THAT money??? sarc/off)

    yeah, that terrorist group hamas.

    it’s REALLY getting deep and the rubes won’t stop shoveling it in on us.

    “but in the darkest depths of mordor,

    i saw a girl so fair,

    but gollum and the evil ones,

    crept up and slipped away with her.”

  2. 2
    War Bloggle is an Idiot

    Keep on Ramblin’ On. Sing dat song. On my way…. been this way ten years to da day.

    Obama is an absolute abortion as a Commander in Chief. All he cares about is his bullshit basketball games, his status, his popularity, and his “legacy” as a patron saint of the intellectual establishment. Which, I have to say, I find incredible.

    Obama is the end result of affirmative action. He is an average person that has been told he was more, made into more, and become more than he should become because the powers that be at Hahhvahd want to give certain people a leg up.

    The only flaw in celebrating average talent and making them more than they should be is that when they finally acquire too much power, the end result is usually bad.

    Want to know why Warren Buffet doesn’t want to leave his money to his family and loves the Estate Tax? It’s because he doesn’t like “annointing” those with power that have not earned the power.

    However, this is what making an average talent with a backwards agenda the leader will do for a nation. We now have an economy that has gone away to hide. We will have a military that will be a shell of its former self. We will have higher taxes and a very aggressive IRS. We will have a nation on the brink of failure.

    Here’s hoping that all those that wanted “change” see what it gets them.

    And, here’s hoping that W one day realizes that he and other Republicans are responsible for the mess that we are now within. Had he governed responsibly and done the right things with his time, the nation would not have spiraled into the Obama abyss.

    As for the economy, I think it can be summed up in one phrase, “pigs get fat and hogs get slaughtered.” The Banks decided to get up to their necks in irresponsible mortgages. Now, they have the American Taxpayers bailing them out of their stupidity. And yet, even as they are being bailed out of THEIR mistakes, they are defiantly opposing bankruptcy reform.

    You know, common sense tells me that receiving money is far better than receiving a gutted residence. Yet those fucking morons are refusing to allow mortgage modification. I hope you idiots enjoy your millions of vacant houses.

    Going to get my iPhone,,,,ahhhh Zepplin.

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