My Beauty Best Teacher

Culled from the Financial Standard ,Nigeria Properties Online reports:

Property securitisation entails the raising of funds from the capital market for housing development, using the house to be developed as collateral security for the capital so raised. In other words, the houses to be developed serve as asset-backed securities (ABS) to which investors subscribe in the capital market. The investors are subsequently paid their 'dividend' when the houses are completed and sold by estate developers. In some types of property securitisation, the investors get annual dividends if the houses so developed are rented and the tenants pay annual rents...Through property securitisation, investors can trade shares held in properties built with their funds. This in effect means that an investor who wants immediate cash could sell off his shares in a securitised property. Property securitisation makes cheap and easy funding available for the housing sector.
This is because, through the capital market, individual investors could pool their resources together for development of property which would be sold or rented at market rates.
The scheme, if properly managed, could provide a positive turning point in housing development in Nigeria. It could lift the burden of housing finance off the government and private developers. Investors will now do it as a worthwhile venture, and housing development would no longer be seen as a social service which the government must shoulder. This implies that housing development would experience exponential growth, and the growing need for accommodation by teeming Nigerians would be assuaged.

The following is a video from a development in Tacoma WA (Salishan) that was purpose built for illegal immigrants. There are about 1325 homes in this complex, and the immigrants to our great nation live on refugee pay that offers them $2642 per month in SSI benefits, plus Food Stamps, plus Section 8 Housing. Although few work and the average salary of these illegal immigrants is rather low, you might notice all the expensive cars in this video- I guess when you are given a house that is roughly 180K to live in that is maintained for you and then you are given 26K/year, you have money for nice new cars.

Sometimes I feel like such a rube, working and paying my taxes, paying down the loan that I took out from the bank, and not abusing the system like everyone else seems to be. Anyway, here is the video of it:

UPDATE: In response to those who want to deny reality, the name of this housing project is either the Tacoma Housing Authority or the Salishan Housing Project. Originally built by the federal government in the 1940's, by the 1990's it had turned into a crime and drug infested low income neighborhood run by the government to trap minorities and poor people in a cycle of dependence. So in 2001, using mostly taxpayer money ($45.5 million in federal funds and $12 million in state funds), the development was rebuilt and now it looks nice and pretty like it does in the video. According to the official website for this project, the government spared no expense with these homes that it is giving away to people who can't afford them. The wikipedia page provides further data derived from the census that backs up this video.

Oh, I'm sure on some aspects it is possible to interpret aspects of this story differently and some link exists that tries to debunk this whole thing, but the main point remains that me and my family work hard creating wealth and the federal government takes this wealth from us and gives it to people who did nothing to earn it, using me and my family as slaves while some politician or political party claims credit and glory for providing this wealth redistribution to people who did not earn it. It is immoral and wrong and needs to be stopped.

Frank Gyamfi-Yeboah &Nicholas Addai Boamah write about strengthening the mortgage market:

The main aim of a housing finance system is to provide funds to the producers and purchasers of housing both rental and owner-occupied. This simple description has spawned a broad array of institutional arrangements, ranging from contractual savings scheme, to depository institutions specializing in mortgage finance, to the issuance, sale and trading of mortgage securities. All of these arrangements have been created with the same purpose in mind, to channel funds from savers to borrowers. As economies develop, provision of housing finance often moves away from extensive reliance on special circuits towards integration of housing finance into broader financial markets. As populations continue to grow and urbanization accelerates, the necessity of providing adequate housing also mounts.

via GhanaWeb

Not that I'm telling you anything you don't know, but I always love it when statistics generally bear out my crazy theories that the way to create a prosperous free economy is to have low government regulation and low taxes. For my unit on state and local government, I found this article on Variations in Government Aid Across the Nation that was put together by the New York Times. This report looks at welfare, unemployment, housing assistance, food stamps, health insurance for poor adults, and health insurance for poor children, and measures them from state to state.

The top states in terms of providing generous benefits to their citizens- in other words, those that take money from taxpayers and re-distribute that wealth to those who did not earn it are (in descending order): Vermont, Maine, Massachusetts, DC, Pennsylvania, West Virginia, Iowa, and Michigan.

Out of curiosity, I decided to pull up some information on GDP growth, and provided by the Department of Commerce. The results are interesting. Here are the GDP growth rates for those states, with numbers from 2006 and 2007: Vermont (2.8, 1.5) , Maine (1.9, 1.3), Massachusetts (2.9, 2.5), DC (4.1, 4.3), Pennsylvania (1.7, 1.6), West Virginia (0.6, 0.1), Iowa (2.6, 1.7), and Michigan (-0.5, -1.2).

Those states that let citizens keep their wealth and freely make their own decisions are: Colorado, Texas, Utah, Florida, Nevada, Arizona, Oklahoma, and Virginia.

Here are their GDP growth rates (2006, 2007): Colorado (4.3, 2.0), Texas (4.3, 4.1), Utah (7.2, 5.3), Florida (4.2, 0.0), Nevada (4.1, 0.6), Arizona (6.8, 1.8), Oklahoma (6.7, 4.0), and Virginia (3.2, 1.9).

As you can see, the results are pretty conclusive. States that redistribute wealth from the rich to the poor, divert money from taxpayers to nonworkers, subsidize poor quality housing, give people food, and provide government-paid healthcare are less prosperous, less successful, and less free.

Those states that follow these unsuccessful public polices have GDP growth rates significantly and consistently lower, and over several generations destroy the wealth and productivity of their citizens. If our whole nation were to adopt those same policies, our children and children's children- our posterity- would grow up less free, less happy, and less prosperous than we are today.

The conclusion, as demonstrated with this limited amount of research, is clear- our public policies should emphasize self-sufficiency, less public welfare, and lower unemployment benefits, and should keep the state out of building structures for people just because of their income status, and should teach a man to fish instead of giving him fish, and should not provide as a right of birth state-supported healthcare.

UPDATE: Today I saw a report from the Mercatus Center at Georgetown called Freedom in the 50 States: An Index of Personal and Economic Freedom. Earlier I pointed out that many of the states that provided the most social welfare services to its citizens also are less prosperous. Looking over this report, I notice that those states that provide healthcare to poor, housing subsidies, and food stamps also are less free. I guessed this fact (see above), but it's nice that my guess is now backed up in numbers that show that.

According to the rankings in the report (1 is most free, 50 is least), the least free states- the states with the most tyrrany and oppression by government- compare favorably with my list of states that had the highest social welfare.

Here are the states that provide the most social services and their rankings on freedom- Vermont (40), Maine (39), Massachusetts (43), DC (NR), Pennsylvania (20), West Virginia (33), Iowa (16), and Michigan (14). Here are the states that provide the least social services and their rankings on freedom- Colorado (2), Texas (5), Utah (11), Florida (22), Nevada (24), Arizona (8), Oklahoma (18), and Virginia (9).

There you go- states that encourage conservative values are more prosperous and more free. The data doesn't lie.

Over at The Futurist, they have a pretty good track record of predicting bubbles, busts, and recessions long before they happen. So it is with interest that I pass on information from the following post called The Next Two US Recessions:

1) 2011 : The tax cuts enacted by President Bush are set to expire at the end of 2010, returning tax brackets to what they were in 2000. Most middle class brackets will rise by 3%, and the top bracket will rise 4.6% from 35% to 39.6%. This is effectively a tax increase that will be upon us in 14 months. At the same time, the Fed Funds rate is at a record low near 0%, and has been for several months. This low interest rate has ended the current recession, but virtually guarantees future inflation. As the Federal Reserve is forced to raise interest rates, liquidity contracts again, the housing prices continue on the correction that was not allowed to complete itself in 2009. A mere rise in the rate back up to 3% could push housing prices down another leg, battering household wealth yet again, and driving yet more people into negative net worth. The housing correction is not fully complete until we have sustained a Fed Funds rate over 3% for at least a year. The timing of this could combine with the tax increase, which would create a joint burden too heavy for the economy to bear, causing a new recession in 2011.

This situation could be avoided easily, by reducing the budget deficit through the quaint notion of spending cuts instead of tax increases that stifle incentives and encumber small businesses. However, barring a seismic shift in the 2010 congressional elections that dispose of many Democrats and replace them with fiscally conservative Republicans (themselves an endangered group within the Republican Party), I do not see the government taking prudent preventive action.

I agree with this assessment. It does not take a genius to recognize the effects of the Democrats push to end the Bush Tax Cuts and raise our taxes. Businesses that can move profits and investments to 2010 will do so, and this shifting will artificially lower profits and investments in 2011, causing an already weak economy to drop into a double-dip recession.

This coming recession, like the one that we are in today, will be directly caused by policy decisions made by Democratic Congressman, Senators, and our Democratic President, helped along by Democrats in state governments around the nation. There is no way to avoid it. Jobs will be lost, our standard of living will drop, long-term prospects for our nation will suffer as our federal government piles up more debt, and our children and grand-children will pay for our mistakes today.

According to the AP, President Barack Obama's new chief of staff William Daley respond to the proposal from congressional Republicans to cut $55 billion from the federal budget by going on CBS' 'Face the Nation' and asking the "Where's the beef?" He then elaborated that he is very curious to see exactly where those cuts will come from, implying that Republicans are playing the same sort of game that Obama plays often where he makes vague statements with no details to back them up. Both President of the United States Barack Obama (Democrat) and him apparently can't find the details for these cuts and so think that this is some sort of trick.

This is really sad, because I opened up internet explorer, went to google, searched 'details of gop plan', and the very first site that was listed was "A Roadmap for America's Future: The Budget Committee Republicans," which links to the GOP's detailed plans to cut $55 billion from the federal budget. That I was able to find the details to the plan so easily and yet the President of the United States and his chief of staff were not able to speaks to one of two things- one, they're all incompetent idiots who lack basic computer and research skills because they are all stuck in the pre-internet past, or two, they are disingenuous liars who are knowingly trying to scam and fool the American people because they know they are not decent or honest or truthful people so they can't find any refuge there.

Daley is thus either an incompetent idiot or a disingenuous liar- either way, the fact that he was chosen to be the main advisor to our President speaks to the kind of people that our President has chosen to surround himself with.

In case Obama or Daley ever do figure out how to use the internet and read by blog, I'll help them out by putting the apparently hard to find information on where 'the beef' is below:

• LEGISLATIVE BRANCH...............................$1,283,000,000. (23%)
• Notes: The Government Printing Office is abolished.
• JUDICIAL BRANCH......................................$2,434,000,000. (32%)
• AGRICULTURE............................................$42,542,000,000. (30%)
• The Agriculture Research Service, National Institute of Food and Agriculture, Resources Conservation Service, and Foreign Agricultural Service are abolished. The Forest Service gets a $1.2 billion haircut.
• COMMERCE...................................................$5,322,000,000. (54%)
• National Oceanic And Atmospheric Administration (NOAA) is cut by $857,000,000.
• DEFENSE.......................................................$47,500,000,000. (6.5%)
• EDUCATION..................................................$78,000,000,000 (83%)
• Only the Pell grant program survives.
• ENERGY............................................................$44,200,000,000 (100%)
• The Defense Department takes over all of Energy's remaining functions (nuclear waste, for example) and about $18 billion of its budget.
• HEALTH AND HUMAN SERVICES..............$26,510,000,000. (26%)
• Notes: FDA is cut by $230,000,000; Indian Health Service is cut by $650 million; CDC is cut by $1.17 billion; NIH by $5.8 billion.
• HOMELAND SECURITY.................................$23,765,000,000. (43%)
• Notes: Coast Guard is shifted to Defense. TSA's funds are cut by $900 million.
• HOUSING AND URBAN DEVELOPMENT....$53,100,000,000. (100%)
• Notes: Completely eliminated. Veterans' housing programs are transferred to the VA
• INTERIOR........................................................$10,934,000,000. (78%)
• Bureau of Reclamation and Bureau of Indian Affairs are abolished.
• JUSTICE.............................................................$9,057,000,000. (28%)
• Note: Office of Justice Programs is abolished.
• LABOR....................................................$2,803,000,000. (2%)
• OSHA, MSHA, and the The Employment and Training Administration are spared all cuts (no cuts to unemployment benefits)
• STATE...................................................................$20,321,000,000. (71%)
• Note: Massive foreign aid cuts. All international commissions and organizations are defunded.
• TRANSPORTATION............................................$42,810,000,000. (49%)
• Notes: Amtrak is completely de-funded.
• VETERANS’ AFFAIRS..........................................No cuts
• CORPS OF ENGINEERS......................................$1,854,000,000. (27%)
• EPA..............................................................$3,238,000,000. (29%)
• GENERAL SERVICES ADMINISTRATION.....$1,936,000,000. (85%)
• INTERNATIONAL ASSISTANCE PROGRAMS...$24,300,000,000 (100%)
• NASA.........................................................................$4,500,000,000 (25%)
• NATIONAL SCIENCE FOUNDATION...............$4,723,000,000. (62%)
• OFFICE OF PERSONNEL MANAGEMENT.......$9,070,000,000.
• SOCIAL SECURITY ADMINISTRATION.........No cuts
• FCC...........................................................$2,150,000,000. (22%)
• ABOLISH...............................................................$2,050,000,000. (100%)
• (1) Affordable Housing Program.
• (2) Commission on Fine Arts.
• (3) Consumer Product Safety Commission.
• (4) Corporation for Public Broadcasting.
• (5) National Endowment for the Arts.
• (6) National Endowment for the Humanities.
• (7) State Justice Institute.
• MISC
• Collect delinquent taxes from Federal Employees........$3,000,000,000.
• Freeze Federal Government employee pay...................$2,000,000,000.
• Reduce Federal Government travel..............................$7,500,000,000.
• Repeal Davis-Bacon..................................................... $6,000,000,000.
• Prohibit union project labor agreements......................$2,000,000,000.
• TARP repeal.................................................................$4,481,000,000.
• Sell Federal Buildings..................................................$19,000,000,000.
• Reduce Federal vehicle budget..........................................$600,000,000.

UPDATE: Comment from theblogprof's story on this subject, which I echo:

Note the one cut close to the end: "Collect delinquent taxes from Federal Employees." $3 BILLION??? Good grief. How are they still federal employees at all?

Chamberlain Peterside recommends a number measures to stimulate the fundamental base of Nigeria's economy.
"...It is quite realistic to recommend that Nigeria earmarks $5,0 billion of its foreign reserve for this purpose. Even after paying-off the foreign debt, Nigeria will still be left with substantial amount of money to sustain its current account status, support the currency market and tuck away some nest-egg for future generation. That is if subsequent governments don't steal it. Hypothetically, the $5,0 billion development fund could be deployed as follows:

1. Utilize $2,0 billion for infrastructure and power generation, to boost capacity to 10,000 – 20,000 megawatts over the next 5 years, electrify the rural areas and rehabilitate decaying road network and bridges nationwide.

2. Utilize $1,8 billion to create a Fannie Mae (US Federal National Mortgage Association) type housing fund to stimulate secondary mortgage market in Nigeria, guarantee home loans for low to middle income families and buy such mortgage notes from primary mortgage institutions (PMI).

3. Utilize $1,2 billion to fund agro and micro lending schemes, underwrite and guarantee loans to genuine micro businesses and mechanized farming organizations.

4. Utilize the $1,0 - $1,5 billion savings in debt service payment to target the lowest population segment and offer them social benefits that could translate into improved life-quality – basic education, primary health care, low cost housing subsidy, rural infrastructure etc..."

From Foreign Policy Magazine comes this article "The Top 10 Stories You Missed in 2009". It has pictures and in depth analysis, but here is a handy summary of the top five stories for you:

1. The Northeast Passage Opens for Business. Good (lower cost of transporting goods around the world) or bad (an omen of the mystical cult of Global Warming), this does raise the importance of the Arctic Ocean, which is now accessible to exploration and development. This may be the cause of rising tensions between Russia and the US.
2. Iraq's New Flashpoint. Iraq's Arab and Kurdish populations are at odds with one another in the Nineveh region, not because of oil, but because of a large Kurdish population in this area, which is outside of the autonomous Kurdish region. Neither side has turned to violence- yet.
3. A Hotline for China and India. You only put in a hotline between world leaders when you are afraid that miscommunication may result and someone may make an unwise decision to nuke the other. The key to this conflict is the Himalayan region of Tawang, which is in India but China claims was part of Tibet (which is now part of China). The area has been increasingly militarized, and the Indian military documented 270 border violations and almost 2,300 cases of "aggressive border patrolling" by the Chinese in 2008.
4. A New Housing Bubble? More than any other factor, ill-advised speculation on U.S. real estate set off the global financial crisis. But even after millions of foreclosures and secondary effects ripped through economies around the world, a new housing bubble is forming again, for the same reasons the first did- Democratic pressure on banks to give everyone a home loan, Democratic pressure on banks to be nice about credit scores, Democratic 'stimulus' money for home sales, and Democratic pressure on banks to keep interest rates low and print money. Be prepared for Democratic policies such as these destroying the world's economies again sometime soon.
5. The ‘Civilian Surge' Fizzles. A major part of the strategy in dealing with terrorism and failed states was a surge in civilian personal from the State Department and USAID, but it turns out, those agencies have failed to deliver, and now the military is trying to meet that commitment too.

In a DC Wire article yesterday written by Bill Turque, it is reported that under Rhee's helm (17 months and counting ) , one third of the DC principal corps have either been fired, resigned or retired. Three principals have been replaced already this school year by Rhee. The Wire reports that Rhee's draft "action plan, which will be presented before the city council today, "says that while there has been improvement, "DCPS still lacks a critical mass of leaders with instructional expertise and/or a proven track record of success in turning around low-performing schools."

"The plan calls for intensifying what had already been touted by Rhee as a vigorous national recruiting effort. The goal is to provide seven "high-quality principal candidates" for every future vacancy and three qualified prospects "pre-approved by the Chancellor before they even meet with the school community panels that screen potential principals. Rhee also wants to open a "School Leadership Academy" that will nurture new principals and develop administrators with the potential to become school leaders."

It seems that many who have posted comments on the DC Wire question Rhee's management acumen (or lack thereof) . Here's what they are saying:

"Rhee is quite delusional if she thinks she's going to attract "top-shelf" principal candidates to the current low-morale school system. A coach is only as good as his/her team. She has to build from the bottom up (i.e., support for teachers, training, etc.). It doesn't help that she espouses a leadership style where "collaboration and cooperation" are overrated."

"If only such rigorous rules were in place before Mayor Fenty basically appointed Rhee as Chancellor. Has any team or organization ever done markedly better after a midstream firing? So far, that is about all Rhee seems to be able to do. Can someone tell me what she and Fenty do between the end of June and early September? Do they actually vet their administrative hires? So far the strategy it seems to be "Fire, ready...set...aim!" And one more point. Fenty is trying to get Obama to take a look at DC Public Schools. Did you know that Fenty sends his kids to a private school? I did not vote for Obama to Chair the DC School Board. Fenty should have to fix this mess himself."

"Finally - someone is taking action to bring the District teaching corp into the 21st century! People defending the current system should be ashamed of themselves; every day they spend arguing that we need to protect the rights of the people who aren't qualified to educate our children is another day that those children are falling behind the rest of the country and the world. If people want to protect the good teachers (which they should), they need to come up with a radical idea to get rid of the bad ones...now."

"If there were any doubts before, there should be great clarity that DCPS is "stuck on stupid" Principals whose school were making AYP were not re-appointed. Now the new army of believers that were hired are getting fired by the month. The best in terms of experience were let go and the new inexperienced NLNS are getting fired. Who is left? Who wants to re-locate to DC? Seven candidates for every one vacancy? Who are we kidding? This is coming from a person who is clueless when it comes to knowing what administrators do on a daily basis. She taught for three years, has never been a school administrator and was a poor manager when she was at ST. Hope. Read the articles on the turn-over. Principals and teachers left due to the bullying tactics of Rhee and Kevin Johnson. She just doesn't have the skills needed to run a school system."

"I hope the new principals get a big fat signing bonus like Rhee got before they commit to working in a DC school. A housing allowance might be nice too. Unless they come from Manhattan, San Francisco or Boston, they might be discouraged by the high housing prices, knowing they could get fired at the drop of a hat - especially if one of their disgruntled teachers goes to the press with a problem principals are afraid to report because it might make them look as if they can't control an uncontrollable school. I hope the prospective principals do a little googling and read some recent Washington Post articles to get a real feel for the problems here. If they just listen to Rhee and the national press, they'll erroneously think they're walking into a grand educational opportunity - A chance to shine and make their reputation. I hope they talk to some current principals who are candid enough to acknowledge their regret for falling that false promise."

"To be perfectly blunt Rhee must really be possessed by the desire to fire people because that's all she seems to do. It is a shame!!"

"No one really knows how hard it is for DCPS but the people who work in the schools. Rhee has done nothing but destroy our schools with her poor management skills. DC council members were right when they questioned her a few weeks ago and told her how non effective she is at running our school system. Well what do we expect since she got her "power" from our mayor. (who by the way has too much power). The city council better step up and oversee what is going on. What we do today is effecting our youth tomorrow. Rhee and Fenty's goals are to rid our city of public schools and increase charter schools. Wake up DC residents. Rhee did an awful job in NY and now she's doing the same here in DC. These new teachers don't plan to stay and have no vested interest in our children and their future. HUMMM, I wonder if Rhee has a vested interest?"

"At Shepherd, we had a panel of principal candidates presented last spring. One parent rep on the panel described the candidate pool as "shallow." A major problem with the process at Shepherd occurred because we had been repeatedly told by several DCPS officials that every panel received its first or second choice candidate, and the schools were always very happy. In this case, because the candidate pool was so shallow, the same candidates were sent to multiple schools. Two of the current DCPS employees were ranked first and second by our panel. These same individuals were each ranked high by at least one other school. Rhee then gave the panelists the choice of which school assignment they preferred (a logical way to resolve the assignment). She told Shepherd this in October, after she had appointed a lower ranked candidate. No one knew why when the appointment was made in June. So, if last year's candidates are any measure of who Rhee is able to attract, she attracts about 1.25 candidates for each open position (4 of the 5 panelists received appointments), all candidates live locally, most are internal to DCPS, and few if any have prior experience at the job they are applying for.

By the way, in October, the next principal that Rhee appointed to Shepherd after firing the one that she had just appointed in July, also does not have prior experience as an elementary school principal. And this newest principal announced at last night's PTA meeting that she'll be out for 3 to 4 weeks in March/April on maternity leave. So for Shepherd, the final count is 4 principals and interims in the 2007-08 school year, and at least 2 principals and 1 interim in 2008-09 (it's still early in the year for us). I think the mainstream press that believes Rhee when she says folks are coming from all over the country to work for her needs to do a little more fact checking." Posted by The Washington Teacher.

Usually I don't like to blog about messed up individuals that do messed up things- their isn't a whole lot to read into when a crazy person acts in a crazy way. But I do want to comment on the recent incident involving environmental activist James Lee, who was sadly shot and killed after taking over the Discovery Channel headquarters. Something about this incident bugged me, and I was unwilling to simply shrug it off as the usual 'crazy people doing crazy stuff means nothing'.  It took Richard Fernandez over at the Belmont Club though to articulate what I was thinking:

But one way to detect logical fallacies is to see what happens when you scale them up. Those harmless ideas when projected onto a horizon ten miles high and fifty miles wide are so awe-inspiringly crazy that either you say “what the f**k?” or “why not?” James Lee said “why not”.

Scale up all my harmless ideas about freedom, liberty, protection of life, protection of property, founding principles, etc, and imagine the world that you get. It isn't really that bad, is it? But scale up the harmless ideas of the liberal left- promoting birth control in Third World countries, abolishing all advanced combat systems, ridding the world of the Judaeo-Christian heritage, fighting Climate Change, building down the US economy, handing out subsidized housing, increasing the power of the state, etc- and you get James Lee. Here is what he wrote at a site believed to be affiliated with the suspect, Save the Planet, where he set forth his creed as the “sayings of Lee”. Some of his demands were

•All programs on Discovery Health-TLC must stop encouraging the birth of any more parasitic human infant.
•All programs promoting War and the technology behind those must cease.
•Civilization must be exposed for the filth it is. That, and all its disgusting religious-cultural roots and greed.
•Immigration … Find solutions FOR these countries so they stop sending their breeding populations to the US.
•Find solutions for Global Warming
•Develop shows that will correct and dismantle the dangerous US world economy.
•You’re also going to find solutions for unemployment and housing.

These are simply scaled up versions of mainstream Leftwing notions. If you're going down that road, seeing what happened to James Lee should cause you to pause and reconsider.

The successful KenGen IPO has strenghthened Kenya's ability to domestically finance projects, Peter Munaita writes about the spillover effects across their fixed income markets:

In April investors put down Ksh26 billion ($361 million) for the initial public offer by the Kenya Electricity Generating Company (KenGen) which was oversubscribed by Ksh18 million ($250,000)..."this"...opened the door for corporations like the Kenya Pipeline Company, Kenya Airports Authority, the Kenya Ports Authority, the Kenya Roads Board and the Kenya Railways Corporation to sell their creditworthiness to investors...The optimism about the success of infrastructure bonds follows the successful flotation of similar instruments by cash-rich corporates, the latest being the second tranche of Shelter Afrique's Ksh500 million ($6.9 million) medium term note arranged by Stanbic Bank. Shelter Afrique raised Ksh200 million ($2.8 million) from the market in January on a floating rate basis to finance housing development in the country. The company finances developers with medium term loans to build housing, creating a vital link between individual borrowers and mortgage lenders.

via The East African

Won't you please join me along with members of Empower DC, parents, teachers and community as we fight the displacement of our students and the privatization of our public schools. I have featured a guest post by Liane Scott which outlines the plan to expose DC's Equation for Displacement. Hope to see you this Saturday @ 11 am. Details listed below. Spread the word.

Candi Peterson

The Displacement Equation

Guest post By Liane Scott

What do DC’s proposed school closings have to do with the loss of affordable housing in the District of Columbia? Could it have something to do with the fact that many schools are being closed down in neighborhoods that are of interest to for-profit developers? What about the loss of community services like affordable child care? Has the government of the District of Columbia come to the conclusion that running the city is a lot cheaper if they have fewer children to educate, especially if those children have parents who are not so well off?

Come to Empower DC’s Info and Action Summit this Saturday, and explore these questions further. We believe that…


SCHOOL CLOSINGS + LOSS OF AFFORDABLE HOUSING + PUBLIC LAND GIVE-AWAYS = DISPLACEMENT

Help Us Expose DC’s Equation for Displacement

Saturday, February 4th, 2012
11:00 AM – 1:30 PM

@ Empower DC – 1419 V Street, NW

U Street Metro (Green Line) street parking available.
Lunch Provided & Childcare Available

This Saturday, Empower DC will make plans to MAKE OUR DEMANDS KNOWN at Mayor Gray’s ONE City Citizen’s Summit, the following Saturday, February 11th at the Washington Convention Center. The city may not be investing in certain communities because they have plans for those neighborhoods that don’t include the current residents. Let’s let them know that we know what’s up and that we’re not going to stand for it. Please contact Daniel at (202) 234-1991 ext. 104 or Daniel@empowerdc.org to RSVP and request childcare.

The NYTimes writes:

Under Mr. Mbeki’s leadership, the fruits of the nation’s hard-fought victory over apartheid have gone mainly to officials and former officials of the ruling African National Congress, not to the millions of poor people in the townships who faced down the dogs, the bullets and the pass laws and still must live without adequate jobs, education, housing or health services.
The resulting frustration and anger helps explain, though it cannot justify, this week’s outbreak of xenophobic violence in the shantytowns. At least 42 victims have been killed — many beaten, stabbed, hacked or burned to death — and some 25,000 have been chased from their homes.

The FT Interviews Dambisa Moyo author of Dead Aid she suggests:

...a telephone call from every donor nation to every aid-dependent government in Africa, warning that in five years the taps will turn off. This, she believes, would trigger the search for alternative financing on a commercial basis, and force governments to create conditions in which business would thrive.

On Celebrities:

“Most Brits would be irritated if Michael Jackson started offering advice on how to resolve the credit crisis. Americans would be put out if Amy Winehouse went to tell them how to end the housing crisis. I don’t see why Africans shouldn’t be perturbed for the same reasons,”...[continue reading]

If America elected Presidents based on foreign policy success and experience, John McCain would be President instead of Obama right now, so let's get back to the reality of the American political system and talk about the effect that Obama's domestic policies are having on our nation. To that, I turn to a Nolan Finley column that ran in the Detroit News this weekend that some of you may have missed:

Republicans hoping to unseat President Barack Obama and his Democratic enablers in Congress should recraft the campaign slogan Bill Clinton used to topple George H.W. Bush: It's the policies, stupid.

Obama, with no shortage of audacity, is betting he can blur the connection between the decisions of his administration and the still wheezy performance of the economy and convince voters that soaring prices for essential goods and anemic job creation are not his fault.

That was the message pitched by Treasury Secretary Timothy Geithner last week when he told the Detroit Economic Club that the recovery is on solid ground and any lingering economic pain is the fault of the previous administration.

Given the money Obama has spent and the depth of his reach into the private sector, he now owns this economy. And it isn't anywhere near where he said it would be by now when he bullied through an $823 billion stimulus package and seized control of the free market.


Obama hopes to blame big, greedy oil companies for gasoline prices that are more than $4 a gallon today, and could be up to $6 by Election Day if trends hold.

But Obama has used his regulatory power to choke off domestic oil exploration, fueling speculators who are betting on tighter future supplies. The Fed's stubborn commitment to a weak dollar also is impacting oil prices and other commodities, including food.

This is the slowest economic recovery since World War II, and while Geithner tried to shrug that off as typical of a recession triggered by a financial markets crisis, the real blame falls on Obama's policies that are blocking development and spooking investors.

The biggest culprit after huge deficit spending is the Environmental Protection Agency, which has side-stepped Congress to put in place carbon caps that assure America won't have enough energy to power robust economic growth.

Despite spending hundreds of billions of dollars to shore up the housing market, mortgage foreclosures continue to surge. Delaying foreclosures drags out the inevitable and keeps the market from resetting. Home values keep declining along with consumer confidence.

Small businesses complain they can't get loans to expand, and banks say Obama's rushed through financial regulations make it almost impossible to lend money to entrepreneurs.

The uncertainties of Obamacare, growing debt and the president's determination to raise taxes on the investor class make job creators nervous and less eager to risk their money.

Businesses see that Obama has tilted the labor field sharply in favor of unions, impacting decisions on whether to locate new operations here or overseas. Same goes for his corporate tax policies.

From the viewpoint of Main Street, the economy still stinks. Obama will work hard over the next 18 months to shirk the blame. But as the dots are connected, the line of responsibility leads to the Oval Office.

Finley hits the nail on the head- what we are seeing are the results of the policies of liberal Democrats such as those that controlled the House from 2007 to 2011, the Senate from 2007 to today, and the Presidency from 2009 to today. Let's get back to looking at what works and what doesn't work, and from my view, liberal policies don't work, and I offer as evidence liberal Democrat Detroit, liberal Democrat Michigan from 2003-2011, and liberal Democrat USA from 2009-2010. High taxes, high regulation, class warfare, bureaucratic control, attacks on wealth, and backwards energy policies that liberal Democrats push for yield the predictable results and attack the foundations of life, liberty, and property growth that America was built on.

The title of this post isn't mine- Ralph R. Reiland came up with it in his post which I will talk about. But it's a great title- in my mind, I see the American economy hitting an iceberg around 2007 and start taking on some water, enough that it badly listed by 2008 and went into a recession. The iceberg was too much federal spending that soaked up savings and investments, too many federal government policies that encouraged bubbles in investing and housing, and increasing regulations that choked off economic growth, especially in small businesses, and signaled to business owners that now was the time to play it safe and not take risks and create jobs. The tip of this iceberg of federal policy ripped a large hole in the Titanic of the US economy, and soon the boat started to dangerously take on water.

Although I'm no expert of this, I imagine that once your boat hits an iceberg and takes on water, you have two options. Option one is to continue moving forward and patch the hole- in other words, keep America's booming private economy and remove the harmful regulations and policies that caused the damage. Option two is to stop moving and widen the hole, by which I mean to attack private business and those who are successful in it and put in place more harmful policies. Oh, I guess there was a double-secret third option too, and that is to turn the boat around and try to ram the boat on the iceberg again, this time with the intent on sinking the whole thing. For a while, I thought that Obama and the Democrats were just intent on going with option 2, but it looks like they are honestly considering circling back on that iceberg with the goal of sinking the economy of the United States for good.

President Barack Obama was once named by me as Captain of the US Titanic Spending (see my complete list of Obama nicknames)- and now he's going after that iceberg again!

Here are some parts of the article by Reiland called Obama: Circling back to the iceberg:

Only 26 percent of the public approve of President Barack Obama's handling of the economy in the latest Gallup poll, conducted Aug. 11-14, while a whopping 71 percent disapprove. That's down from Obama's previous low point of 35 percent approval on this top issue.

The public's growing dissatisfaction shouldn't be surprising. Going back to 1890, reports the National Bureau of Economic Research, the only U.S. president with a worse record than Obama in job creation in his first two-and-a-half years in office, measured in terms of percentage change, was Herbert Hoover, presiding over the emergence of the Great Depression.

"Official unemployment is 9.1 percent," stated a New York Times editorial on Aug. 15, decrying the nation's jobs picture, "but it would be 16.1 percent, or 25.1 million people, if it included those who can only find part-time jobs and those who have given up looking for work." "Keeping the economy going and making sure jobs are available is the first thing I think about when I wake up in the morning," Obama said back in March. "It's the last thing I think about when I go to bed each night."

Now, nearly six months later, the White House reports that Obama is working on a new strategy for job creation that will be unveiled after he returns from vacation. The task of coming up with a jobs plan that works shouldn't be all that terribly difficult. All Mr. Obama has to do is reverse what he's done and change what he thinks.

First, by the government's own numbers, small businesses have created 64 percent of the net new jobs in the U.S. economy over the past 15 years.

In fact, that understates the role of small business, since the vast majority of America's medium-sized and large businesses began as small businesses. The Heinz corporation began when 16-year-old Henry Heinz grated piles of horseradish at home, using his mother's recipe, and sold the bottled product door-to-door in Sharpsburg out of a wheelbarrow.

Yet since Obama took office, employment at federal regulatory agencies has jumped 13 percent while private-sector jobs shrank by 5.6 percent. Second, 39 percent of small-business owners said in a Chamber of Commerce survey in July that ObamaCare was either their greatest or second-greatest obstacle to new hiring....

...Additionally, 84 percent of small business owners in the survey said the economy is on the wrong track, 79 percent view the current regulatory environment as unreasonable, and 79 percent believe Washington should get out of the way of small business, rather than offering a helping hand (14 percent).

In its first 26 months, reports The Heritage Foundation, the Obama administration imposed new regulatory rules that will cost the private sector $40 billion. In July alone, reports Sen. John Barrasso, R-Wyo., federal regulators imposed a total of 379 new rules that will add some $9.5 billion in new costs.

Bottom line: What's required from Obama is a complete about-face, the shelving of his flawed economic philosophy and a reversal of his counterproductive policy prescriptions.

For those who want to see which way the United States is going under President Obama and his progressive policies supported by the new progressive Democratic Party, watch this movie- Titanic (10th Anniversary Edition).

Sanou Mbaye on reasons for renewed growth in the continent:

Many factors have contributed to this upturn. Emerging-market demand has pushed up commodity prices. Urbanisation has given rise to a dynamic informal sector. Improved governance, higher food production, increased inter-regional trade, debt cancellation, better use of official development assistance (ODA), and thriving telecommunications and housing markets have helped as well.
But transfers from the African diaspora stand out as the most significant contributing factor. A study commissioned by the Rome-based International Fund for Agricultural Development indicates that more than 30 million individuals living outside their countries of origin contribute more than $40bn annually in remittances to their families and communities back home. For sub-Saharan African countries, remittances increased from $3.1bn in 1995 to $18.5bn in 2007, according to the World Bank, representing between 9% and 24% of GDP and 80-750% of ODA...[continue reading]