Showing posts from May, 2010

LAPD cops attack bicyclists at Hollywood Critical Mass

At a Critical Mass in Hollywood, a rider stopped to record police abusing bicyclists.

At 0:25 a police officer can be seen deliberately kicking hard as a bicyclist goes past, apparently trying to knock him off his bike. After the cameraman shouted, "Oh, oh, oh! What the $%^& was that for?", the police came across the street and tackled the cameraman.

The LAPD is investigating.

Government-funded KPBS sends liberal arts major to cover science story; hilarity ensues

Your state-funded media at work promoting a cancer panic in Carlsbad:
Well, there have been 265 reported cases of cancer within a three-mile radius in Carlsbad. Fifteen children have been diagnosed with cancer; four of them have died within a particular neighborhood. At Kelly Elementary School in Carlsbad, several teachers have been diagnosed with cancer. Several more have had infertility problems and some of the fifteen children that I described for you, they attended Kelly Elementary School at one time. So people are worried. They believe that something in the soil, the air, or the water might be making them sick.
265 cancer cases in a three-mile radius? OK, so what's the population within that three-mile radius and what's the expected cancer rate for that population? KPBS "reporter" Amita Sharma didn't think to ask!

Now one – the parents of one of the children who died recently, Chase Quartarone, said that an autopsy was done of him after he died and that there…

How to save at-risk youth

Get them out of the greedy grasp of the filthy teachers' unions.

The WSJ tells a story of two Oklahoma City youths in the same poor, Hispanic neighborhood, one of whom was stuck in a union school and has no college plans upon graduation. The other, who escaped to a charter school, won a scholarship to the University of Oklahoma despite having flirted with gangs and drugs in middle school.

The vignettes are backed up by statistics:
Out of 71 seniors at [charter school] Santa Fe South, 62 will attend a four-year university, two-year college or vocational school in the fall.

At the union school?
[...] about 50 of the 147 graduating seniors will enter a vocational school or college in the fall.

Regrets, I've had a few


Obama doesn't care about black people

I think it's safe to say that if an oil well blew up near his Harvard buddies' homes in the Northeast, Obama would have been all over it.

Where's Kanye West?

Richard Wiggins trashes gold in Barron's

In this weekend's Barron's, Richard Wiggins of First Michigan Bank (a bank buying up failed banks from the FDIC) trots out the usual anti-gold arguments.

I'll quote and respond to the key points.

Gold may be the "currency of last resort," but premiums on gold coins have soared to levels never before seen. One-ounce coins are now trading far above their bullion value, as people continue to chase them, and mints worldwide are unable to keep up with demand.Wrong. Premiums at my local coin shop are still $50 - $60 over spot. Given gold's rising price, that's a 4% or 5% premium, much lower in percentage terms than it was a few years ago when the dollar premiums were the same but spot was a third lower. Reports of Greeks paying $1700 an ounce are entirely a local phenomenon, and only illustrate that you want to buy gold before the panic, not during the panic.

Even gold bulls you may have seen on CNBC or Bloomberg will admit that there is a $200-$300 premium…

You've lost that tingly feeling

Chrissy "Tingly Pants" Matthews is falling out of love:

You're so vain

... I bet you think this environmental disaster is about you.

Peggy Noonan's tone can go from dreamy to wistful to melancholy, but she doesn't often write anything as scathing as this column in tomorrow's WSJ. The first clue is the title, He Was Supposed to Be Competent. And the lead paragraph isn't any kinder:
I don't see how the president's position and popularity can survive the oil spill. This is his third political disaster in his first 18 months in office. And they were all, as they say, unforced errors, meaning they were shaped by the president's political judgment and instincts.
What follows is a litany of the President's failures and character flaws that is quite impressive for someone just 16 months into his term. But the money shot is this, specifically referring to his oil spill handling but also more generally applicable:
When your most creative thoughts in the middle of a disaster revolve around protecting your position, you are summoning t…

Memorial Day Weekend

Enjoy the three-day weekend. But don't forget what it's about.

Your dairy industry at work

Be warned, you're not going to like this.

Shut down Conklin Farms.

UPDATE: Now this is just plain rich:
During the hearing in which his bond was set at $100,000, [the abuser] appealed to the judge that he could not go to jail because he is studying for exams to become a police officer and that he had animals at home to look after.

Read of the day

Slouching toward despotism, by Keith Hazelton.

Are we there yet? Yes.

Matt Taibbi on the fake financial reform bill

Gold to $6300?

Don't ask me. Ask the Wall Street Journal.
Dylan Grice, a strategist at SG Securities in London, thinks global conditions today could unleash another gold boom like the one in the 1970s. Then, as now, the world lost confidence in the U.S. dollar as a store of value. Back then, central banks started hoarding gold instead. Today, he notes, they are net purchasers of gold for the first time since 1988.

And although gold has risen a long way, so has the U.S. money supply. Mr. Grice calculates that even at today's prices, the bullion that the U.S. government holds in places like Fort Knox is still only worth enough to back 15% of the U.S. monetary base. That is near a record low.

At the peak of the gold mania in 1979-80, gold prices rose so far that the backing exceeded 100%. How far would gold rise if that happened again? To around $6,300 an ounce, Mr. Grice says.

Why Did Patrick Byrne Just Unload $3 Million in Overstock Shares?

Things that make you go hmmm... it's not at all suspicious that Patrick Byrne just unloaded 140,000 shares of Overstock, right?

The most popular theory so far?

Gary Weiss and Barry Ritholtz think he might be proactively funding an SEC settlement. As if the SEC is going to grow a pair any time soon.

Sam Antar via White Collar Fraud:

Amidst an ongoing Securities and Exchange Commission investigation into financial reporting violations by (NASDAQ: OSTK), CEO Patrick Byrne's 100% controlled High Plains Investments LLC dumped 140,000 company shares and collected over $3 million in proceeds during the last several days, according to SEC filings. This marks the first time that Patrick Byrne has ever sold any shares under his control, not a bullish signal to investors.
We'll take what's behind door number 2, Monty. Run, Patrick, run!

Dirty Fed that caused financial crisis now says it needs unchecked power to stop financial crises

Varones voters' guide to the California propositions

The propositions from a reform / libertarian / Tea Party point of view:

Prop 13 - reluctant Yes. Prevents seismic upgrades from raising the Prop 13 property assessments of commercial real estate owners. Commercial real estate owners have a huge scam with assessed values from the 70's, and this is obviously a very narrow initiative to benefit a few CRE owners who want seismic upgrades, but that's an issue for another day. Vote Yes just on general anti-tax principles.

Prop 14 - NO!!! This was put on the ballot in a dirty backroom deal to buy Abel Maldonado's vote to pass the largest state tax increase in history. It would allow Democrats and Republicans to vote in each others' primaries, encouraging that most candidates in the future would be shifty, unprincipled weasels like Maldonado and Schwarzenegger who play to both sides. Virtually eliminates third parties by allowing only two candidates (Democrat and Democrat-lite) in the general election.

Prop 15 - NO. Taxpaye…

Illegal Immigrant Gets a DUI While Wearing a Mexican Costume, Laughs It Off

Please elaborate on "Mexican costume"
Filed under: This can't be real

Fox Boston:

A serious car crash involving a local lawmaker and a suspected illegal immigrant is threatening to reignite already heated debates about immigration on Beacon Hill, according to police reports obtained by FOX25.

State Rep. Mike Moran of Brighton was rear-ended by a suspected illegal immigrant this week. The suspect was wearing a Mexican costume at the time of the crash where he slammed into Moran at 60 mph.

The suspect, 27-year-old Isaias Naranjo, was charged with driving under the influence of alcohol, leaving the scene of an accident and driving without a valid license. According to the report, when told of the serious charges he would be facing, he just laughed.

But because of action taken by Gov. Deval Patrick, state police were unable to notify immigration authorities that Naranjo might be illegal.

Three years ago, Patrick revoked an order by former governor Mitt Romney which gave state…

I need more porkulus!

The day before the national debt hit $13 trillion, Obama asked Congress to pass a "second stimulus."

Because, you know, the first trillion dollars he flushed down the toilet is working out so well for us.

San Diego gets off Arizona boycott list on a technicality

Inflation vs. deflation

Deflationists often cite the fact that some government liabilities are inflation-indexed (Social Security literally and Medicare practically) as an argument that the government can't inflate its way out of debt. The alternative, assuming we don't get magic hopey unicorn GDP growth, is default.

I disagree on the inflation-indexed issue. Social Security can and will be modified, certainly by raising the retirement age and possibly by means-testing it (cutting it off for the rich). Government CPI fudging is another tool that's already been used to some extent to cut Social Security costs. And Medicare? One word: "rationing." It's inevitable, as it is in every government run health care system around the world.

But the main thing deflationists are missing is that the U.S. government is now backstopping the entire U.S. housing market via Timmy the Tax Cheat's unlimited bailouts of Fannie and Freddie, and the FHA's ridiculous 3%-down subprime home gamb…

Obama Thoughtcrime Czar wants to "Nudge" First Amendment to the Ash Heap of History

And, no, that's not one of those hyperbolic/joke headlines of mine that get people's panties in a twist. Sadly.

Obama's "Administrator of the Office of Information and Regulatory Affairs," Cass Sunstein, doesn't want you to be able to write your opinion on the Internet without offering contradicting viewpoints:
"The sites of one point of view agree to provide links to sites of the other point of view. So if you’re reading a conservative magazine, they would provide a link to a liberal site. And vice versa, just to make it easy for people to access to competing views.

Or maybe a popup on your screen that would show you an advertisement or maybe even a quick argument for a competing view.

If we could get voluntary arrangements in that direction, it would be great and if we can’t get voluntary arrangements maybe Congress should hold hearings about mandates."

The quote is reportedly from a 2001 interview, so it doesn't reflect current policy necessarily…

2009 Club for Growth Congressional Scorecard is up


I'm indifferent to soccer and hostile toward rampant commercialism; nonetheless, I offer you the most splendid soccer commercial of all time...

Cops kill grandmother for not complying with census

Public service announcement

We're always happy to do our part to promote public safety.

Super Sexy CPR from Super Sexy CPR on Vimeo.

Qualcomm reportedly will slash health care benefits in response to ObamaCare rules

Unconfirmed word comes from deep within Qualcomm's HR Department that employees will be in for drastically reduced health care benefits in response to the burdensome, expensive ObamaCare mandates. The plan will reportedly be announced to employees this fall (perhaps conveniently after the November elections).

Qualcomm insiders with more information are encouraged to contact us at wcvarones *at* and may remain anonymous.

Incidentally, Qualcomm honchos are huge Obama/Democrat donors (founder Irwin Jacobs, chairman and CEO Paul Jacobs, firmwide). Of course, they have the money to buy the finest medical care available. Only the little people face the consequences of ObamaCare.

All three inputs?


Wall Street bankster stocks rally as Senate passes fake "financial reform" that does nothing to address Too Big To Fail, Fannie/Freddie...

... mark-to-fantasy, regulatory capture, legislative capture, permanent implicit government guarantee of all of Wall Street...

They didn't address anything relevant.

Tom McClintock response to Mexican President Calderon condemning our laws

Regrets, I've had a few


Greenspan: I wasn't really paying attention to how much leverage banks were using

Great. "The Maestro" was really Mr. Magoo. The man in charge of micro-managing the entire U.S. economy had no clue what was going on:
Peter Whitney: [0:49:04] Peter Whitney at Duke University. Could you comment on (if I'm correct about this) the SEC regulation in 2003 / 2004 that greatly allowed an increase in leverage at financial firms, if I'm correct on that? From about 12-to-1 to 30-to-1 or something like that, 33 1/2 [-to-1]?

Alan Greenspan: [0:49:24] There are a lot of SEC regulations which I'm aware of. I'm vaguely aware of numerous ones, and I specifically would be reluctant to comment on things about which I know very little.
Click on over to Housing Doom and read the whole thing about our favorite serial killer saying, "What, me worry?"

Coffee Party Bank Protest

The "Coffee Party" was organized as a reactionary, pro-regime response to the grassroots Tea Party movement. So far, unlike the Tea Party, they haven't accomplished much.

I hope that changes tomorrow when they take up a good cause for a change: fighting the dirty banksters.

I can't be there tomorrow in person, but I'll be with them in spirit. May the weather and the turnout be tremendous!

Dow 28,000,000

... by 2099. That's the implicit assumption CalPERS used when selling the legislature a massive pension increase in 1999. Schwarzenegger economic adviser David Crane in the WSJ:
What Calpers failed to disclose, however, was that (1) the state budget was on the hook for shortfalls should actual investment returns fall short of assumed investment returns, (2) those assumed investment returns implicitly projected the Dow Jones would reach roughly 25,000 by 2009 and 28,000,000 by 2099, unrealistic to say the least (3) shortfalls could turn out to be hundreds of billions of dollars, (4) Calpers's own employees would benefit from the pension increases and (5) members of Calpers's board had received contributions from the public employee unions who would benefit from the legislation. Had such a flagrant case of non-disclosure occurred in the private sector, even a sleepy SEC and US Attorney would have noticed.

Ixnay on the Ooselay Alktay

Department of Homeland Security is Googling "wc varones":

Sorry I ratted you out, Leucadia Blog, Maxed Out Mama, Flip this Burger, and Goldman Sachs 666. O'Brien got it out of me in Room 101.

Greenspan's Body Count: Troy and Michele Fogel

It's a Greenspankill in Bushkill:
BUSHKILL, Pa.—Authorities in eastern Pennsylvania say the shooting deaths of a man and woman have been ruled a murder-suicide.

Northampton County Coroner Zachary Lysek says 39-year-old Michele Fogel was killed by her husband, 43-year-old Troy Fogel, who then killed himself. Police said a relative found their bodies just before 7:30 p.m. Monday in their Bushkill Township home.

According to court records, the couple had been accused of defaulting on their mortgage and their home was up for a sheriff's sale.
Looks like they bought the place at 517 Roberts Road in 2001 for $226,000, and it's worth $363,000 now, so most likely they hit the home ATM pretty hard a few years ago.

UPDATE: Correctamundo! They sucked out another $120,000 over the purchase price and had been living rent-free for more than a year:
Troy and Michele Fogel were struggling financially and their Roberts Road home was listed for a June 11 sheriff's sale because they had not b…

¡Viva la libertad!

Ham-handed GOP operatives try to pressure conservative DeVore out to help RINO Fiorina

Read all about it at Temple of Mut.

Hypovehiculated: Arlen Specter

Another one under the bus!
President Barack Obama says he loves Sen. Arlen Specter (D-Pa.) — just not quite enough to hazard an 11th-hour political trip to Pennsylvania for an ally of convenience increasingly viewed as unlikely to win.

"Meep, meep."

photo credit: Ace of Spades

As Long as Your Nephew is the President, You Can Be an Illegal Immigrant and Become a Citizen

Not only can you be an illegal immigrant (after a judge tells you to GTFO), you can be granted a green card and maybe even US citizenship.

Oh crap! Are they rioting in Arizona over this yet?

A Boston immigration judge has granted asylum to President Barack Obama's aunt, Zeituni Onyango, clearing the way for her to stay in the United States and possibly to become a US citizen, her lawyers said today.
Asylum from what exactly? The crap they have to deal with back there in Not Ah-merika? Please.

I am 100% for legal immigration, my son's father is a Nicaraguan exile who faced certain death at 15 if he did not leave the country. Civil war is like that, perhaps Mr Obama can give his aunt a lesson in how that works. How bad can it be in Kenya?

Oh wait, the inhumane conditions in Kenya from which Auntie Obama sought to escape (illegally. Again, I remind you just in case) have been nurtured by debt. Really, really bad debt.

Those vultures at the IMF got to them. Bad. So I guess tha…

Inflation for me, but not for thee

Last week, I said that the Dirty Fed's money printing would cause asset and commodity inflation, but not equivalent wage inflation.

Reformed Goldmanite Emanuel Derman sees the same thing:
People seem to think that inflation hasn't kicked in yet, but inflation supposedly happens when too much money changes too few things.

I think we are already seeing inflation as a result of increases in the money supply, but the inflation is limited to those sectors to which the increased money supply has flowed. The money being printed hasn't flowed into people's pockets, it's flowed into the financial firms. As a result, the prices that have gone up are those of securities, the things financial firms buy, rather than food and clothes, the things people buy.
He's right. "Our" U.S. dollars are being brutally debased, but the only beneficiaries are the dirty banksters. I'm with Angry Future Expat:
If the policy is to defeat deflation – and it is, and should be – the…

Barron's Gene Epstein: the U.S. government created the financial crisis

What actually happened is best summed up by Peter Wallison, who declared in a phone interview last week that "the U.S. government created the financial crisis," adding, "Unfortunately, that has not sunk in, as you can tell from both media coverage and from legislation coming out of Washington."

Based on figures that Wallison cites from the work of former Fannie Mae Chief Credit Officer Edward Pinto, the myth that free markets caused the housing bubble is a bit like blaming food shortages in the Soviet Union on private plots cultivated by farm workers. The Russian government was in charge of most of the land, just as Washington accounted for, directly or indirectly, most of the risky mortgages.
And the U.S. government is currently in the process of creating the next crisis, which might make the last one look like a picnic.

The resistance lives on

SLOBfest 2010 (San Diego Local Order of Bloggers) met at an undisclosed location. It was great to catch up with old friends and meet some new friends. Representatives came from the SoCal Tax Revolt Coalition, Temple of Mut, Left Coast Rebel, Beers with Demo, DooDoo Economics, and yours truly.

Falling from grace: Sarah Palin and the Tea Parties

Sarah Palin, once a hero to many Tea Partiers, has deeply disappointed California Tea Partiers by endorsing establishment candidate Carly Fiorina ("McCain in a bra") over Tea Party favorite Chuck DeVore.

I was impressed with Palin's frontierswoman bio when she first hit the national stage, and I loved her coming out speech, and some of her partisan hack attackers like Menzie Chinn and Charlie Gibson were pathetic, but in the following weeks, her ignorance of things outside Alaska was stunning. How do you get to 40-something years old without having serious thoughts about national and international issues?

I've hesitated too long in coming out against Palin, probably largely because I despise her East Coast elitist detractors. No more.

Palin and religious left nutjob Mike Huckabee are the scariest figures in the Republican Party to me today, scary not because they are serious, but because despite their lack of seriousness, they command sizable followings. They are in …

Now that's what I call a happy ending

In a case of English jury nullification, a jury acquitted a kindly, beloved owner of a house of good repute.

Meanwhile, government-run Jobcentres are helping unemployed women find work at webcam porn sites.


... for the ECB's brilliant plan to save the Euro by printing Euros to bail out every basketcase country in sight.


Consumers, retailers near victory over dirty banks

For years, the dirty banks have skimmed a few percent off every retail credit card transaction. Laws forced retailers to charge the same price whether the consumer used cash or credit. The banks used rewards cards to push consumers to choose credit so that the banks could collect their 3% fee for providing essentially zero value.

That may be about to change. The Senate just passed an amendment by Sen. Durbin:
The measure from Durbin, the No. 2 Democrat in the Senate, would let merchants give discounts to customers who use one type of card over another, or who pay by cash or some means other than by card. It would also allow retailers to set minimum purchase levels for using a card.

And it would let the Federal Reserve make the card networks set debit card transaction fees that are "reasonable and proportional to the actual cost incurred."
A side effect of the dirty banks' credit card racket has been an increase in excessive spending and consumption, as studies show that c…

Politicians imitate Varones

W.C. Varones, May 4, U.S. taxpayers to bail out Greece:
Just to be fair, shouldn't Germany be bailing out California?

House Republican Conference Vice Chairwoman Cathy McMorris Rodgers (R-Wash.), May 8, noted that the U.S. isn’t asking Europe to help bail out indebted U.S. states such as California.

Obama authorizes assassination of American citizen

Miranda rights and civilian trials for foreign terrorists, summary execution for Americans.

Points to ponder

Does Bernanke know that he's totally screwed, that he has the power to create asset and commodity inflation but not to match it with wage inflation?

Or is he as naive and arrogant as Greenspan, seeing himself as an infallible god who can turn back the laws of mathematics with a wave of his sheepskin?

Lending Standards Hurt the Poor

Patrick.Net posted this link to a decision by the Democrats to block a Republican sponsored amendment that would require a 5% down payment for any mortgage. The Democrats blocked this measure arguing:
"...that a 5% down payment would hurt minorities and the poor."Should poor people be purchasing houses? I'm not poor but I can't afford a house.

Don't get me wrong, I oppose this amendment as well. I believe those in the mortgage industry that misrepresented the mortgages they issued should go to jail. Those banks that trusted the mortgage brokers and purchased the mortgages should go out of business instead of being bailed out. And the entire mortgage secularization industry should be destroyed through civil and criminal fraud lawsuits starting with the ratings industry, especially the Oracle Crook of Omaha's insider traded Moodys. Let the problem take care of itself. Bad business gets punished; good business gets rewarded. But I guess we're social…

Please Stop Disparaging Casinos

It is popular sentiment to compare Wall Street to a Casino and that is grossly unfair and inaccurate. If the Bellagio acted as Wall Street does, one would witness the following:

1. At the poker table there would be one player working for Goldman Sachs(GS). The dealer would be working for GS as well and the rest of the players at the table would be the retail investors. Now the dealer would be a pro mechanic; he would toss the GS player all the great cards. The player from GS would be given a line of credit from the dealer and would be allowed to bet $50 for every $1 he had. Now the player from GS would win almost every hand but the mechanic would sometimes get unlucky. Occasionally a retail player at the table would draw a straight flush beating the regular 4-of-a-kind that the player from GS would get. The player from GS would of course call all in and lose 50 times what he had. Because he couldn’t pay he would get the casino staff to shakedown every retail player in the casi…

Audit the Fed defeated

Bernie Sanders bowed to pressure from the White House to gut his Audit the Fed Amendment. Senator David Vitter of Louisiana introduced another Audit the Fed Amendment. Thanks to the work of the Dirty Fed's ex-Enron lobbyist and the Dirty Fed's powerful friends in the Obama Administration, the amendment failed 62-37.

Here's how your Senators voted. My Senators, Boxer and Feinstein, voted to aid and abet the Dirty Fed.

Third perfect storm this month

For a leftist Hollywood type who has absolutely zero financial background, John Stewart has an uncanny sense of what's going on.

The Daily Show With Jon StewartMon - Thurs 11p / 10cA Nightmare on Wall Streetwww.thedailyshow.comDaily Show Full EpisodesPolitical HumorTea Party

The money shot, transcribed for your edification:
Why is it that whenever something happens that the people who should have seen it coming didn't see coming, it's blamed on one of these rare, once-in-a-century, perfect storms, that for some reason take place every [bleepin'] two weeks?

I'm beginning to think these are not perfect storms. I'm beginning to think these are regular storms, and we have a shitty boat.

Apologies for the sloppy embedding and the lack of original content.

Greenspan's Body Count: Cynthia (Cindy) Dunn Cannon

Hartford Courant:
On Sunday, after finding blood in the family home and a bloody sleeping bag dumped elsewhere in town, police charged Patrick Cannon with killing his 35-year-old wife, although they have yet to find her body.


Friends told police that the Cannons had been having financial and marital problems.

They also said the couple were in the midst of a divorce, although there is no divorce action on file in Superior Court.

Patrick Cannon stopped paying the mortgage on his home in the fall, according to court records. He owes $326,358 on a $336,000 mortgage, according to the foreclosure filed by his lender, Quicken Loans.
May she rest in peace. Cindy Dunn Cannon's myspace page is here, where you can see a picture of the family in happier times before Greenspan tore their world apart.

Greenspan's Body Count stands at 134.

Cynthia Dunn Cannon
Jocelyn Earnest
Lynda Clark
Gregory Bellows
Sallie Gist
Rayshawn Reed
Byron Reed Sr.
Byron Reed Jr.
Elisha Gist
Elijah Gist
Tiera Davidson

Tiger pulls out

Goldman Sachs gets its first Supreme Court seat -- Elena Kagan

It's about time, after all this time owning Congress and the Treasury Department. Those pesky checks and balances were becoming soooo bothersome.

UPDATE: I'm corrected by Skeptical CPA, who tells me that Kagan would be the second Vampire Squid on the Court. Apparently Chief Justice John Roberts was a partner in Hogan Lovells, a Goldman mouthpiece.

Let the Global Ponzi continue!

Tea Party claims scalp of Sen. Bob Bennett

The people have spoken!

Senator Bob "Bank Bailout" Bennett of Utah has just been involuntarily retired from the Senate.

Why Mommy is a Tea Partier

The WSJ has a column today on the face of the Tea Party. As the great Ted "Thedore" Logan once said, "It's your mom, dude!"

Our own local San Diego Tea Party is filled with moms and wouldn't be possible without the tireless efforts of three women (all moms of school-age kids, I think): Leslie Eastman, Sarah Bond, and Dawn Wildman.

It makes sense that moms would be so prevalent in the Tea Party. After all, it's their children who will have to pay for Washington's reckless spending.

The Great Education Scam, continued

We've writtenbefore about the education scam, wherein students are conned by colleges and the government into taking on a lifetime of debt for a vastly overpriced education.

Now Anonymous sends this story:
Drake College of Business, a for-profit higher-education company based in New Jersey, suspended its recruiting of students from homeless shelters while accreditors scrutinize the practice.

Closely held Drake, which trains medical and dental assistants, relied on taxpayers for 87% of revenue in 2007 through federal financial aid programs. Almost 5% of the student body at its Newark, N.J., branch is homeless, said Jean Aoun, director of admissions and student services. In 2008, Drake began offering a $350 biweekly stipend to students who showed up for 80% of classes and got C's for their work, Bloomberg Businessweek reported last week.
Just as with the subprime house lending, easy credit in the education sector not only creates extreme price inflation, but also brings out the croo…

Obama lied, your current health care coverage died

Remember how Obama promised that if you liked your current employer-based health care coverage, you could keep it?

Yeah, well, he was lying.

Under ObamaCare, the new mandates are so expensive that many employers are considering just paying a small penalty and dumping their employees into the government plan.

Internal documents recently reviewed by Fortune, originally requested by Congress, show what the bill's critics predicted, and what its champions dreaded: many large companies are examining a course that was heretofore unthinkable, dumping the health care coverage they provide to their workers in exchange for paying penalty fees to the government.

That would dismantle the employer-based system that has reigned since World War II. It would also seem to contradict President Obama's statements that Americans who like their current plans could keep them. And as we'll see, it would hugely magnify the projected costs for the bill, which controls deficits only by assuming tha…