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February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
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Jewish World Review
Jan. 8, 2009
12 Teves 5769
End run on the treasury
By
George Will
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http://www.JewishWorldReview.com |
In America's ever-more-democratic society, egalitarianism seeps into everything, even the supposedly severe meritocracy of sport. So every 7-year-old who has soccer shoes laced up by a parent gets a trophy just for showing up, and almost every college football team that is not dreadful is "bowl-eligible." That is why there are 34 bowl games, which is why you might not have noticed Tuesday's Bailout Bowl (Ball State vs. Tulsa, by the way), in which you could have seen your tax dollars at work. Or at play.
The game's real name was the GMAC Bowl. GMAC is known as the "financing affiliate" of General Motors. But Cerberus, the huge private equity firm that owns 80.1 percent of Chrysler, also owned 51 percent of GMAC until GMAC got the government to baptize it as a bank holding company. That transformation supposedly was necessary to make GMAC eligible for a place at the TARP (Troubled Asset Relief Program) trough although GM itself already has a place there, as does Chrysler. Anyway, the infusion of TARP dollars 6 billion of them diluted Cerberus's GMAC ownership to at most 33 percent, but that diminution seems a small price for Cerberus to pay for a second bite from the bailout apple.
Washington sternly said that it would allow GMAC to become a bank holding company only if GMAC managed to increase its capital to $30 billion. When GMAC fell far short of that goal, Washington supplied some of the shortfall. Immediately after GMAC became eligible for TARP money, GM reduced to zero the interest rate for up to 60 months on certain models. This, of course, penalizes GM competitors, including Toyota, Honda and other "transplants" whose cars are made in America by Americans for Americans, and Ford, which does not have the freedom of maneuver conferred by TARP money because Ford is not taking any.
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This redundant evidence that no good deed goes unpunished might be a reason for Ford to take some. Then it could join GM in using taxpayers' money to produce more troubled assets. The New York Times reports that GMAC has begun making loans to borrowers with credit scores as low as 621, a significant relaxation of the 700 minimum score the company adopted just three months ago as it struggled to survive. America's median credit score is 723. GMAC's lowered standards will increase the number of people eligible for its loans by an estimated 50 million.
What should one call loans made to applicants who, three months ago, were thought to be trying to buy more expensive cars than they could afford? How about "subprime loans"? Thus does the economy, which is suffering a fierce hangover after going on a bender of reckless borrowing, try a familiar remedy the hair of the dog.
The $6 billion for GMAC comes from the federal government buying $5 billion worth of preferred shares in GMAC and lending another $1 billion to GM for it to invest in GMAC. All this makes GMAC partially nationalized, so taxpayers should be able to indulge a wholesome curiosity concerning, for example, how much GMAC paid for its sponsorship of the bowl game. But GMAC will not say.
Why not? Whatever the sum is, it is hardly even a rounding error on $6 billion. In 2000, the first year of its bowl sponsorship, GMAC paid $500,000. Perhaps the sponsorship makes marketing sense, even today. But even though its pockets are bulging with public money, GMAC says, through a spokeswoman on Monday, that it does not disclose the specifics of its marketing program.
You might think that a company forfeits the right to such secrecy when it takes the public's money. You would, evidently, be mistaken. Although GMAC is now attached by an umbilical cord to the U.S. Treasury, GMAC's position is that the sponsorship price is none of the public's business.
Are there any legal inhibitions on what the executive branch can do with TARP money? Are there any legal requirements regarding what TARP recipients must disclose or explain? Perhaps not; perhaps we are operating under the Knox Principle.
Philander Chase Knox was President Theodore Roosevelt's attorney general when the United States acquired the Panama Canal Zone by unsavory means. When TR asked Knox for a defense of the acquisition, Knox is said to have replied, "Oh, Mr. President, do not let so great an achievement suffer from any taint of legality."
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