Sep 23, 2008 | Dollars & Crosses
Washington, D.C.--Many of those calling for greater government control over the economy in response to the current financial crisis point to the Great Depression, arguing that it provides a clear example of the crucial need to curb the “excesses” of the free market through government intervention.
“The Great Depression does have something to teach us about the current crisis,” said Yaron Brook, executive director of the Ayn Rand Center for Individual Rights, “but it’s not that we need more government control over the economy.
“Most people believe the Great Depression was caused by an ‘excessively’ free market--and they regard the massive expansion of government intervention under FDR as its cure. But as many economists have demonstrated, it was government intervention that caused and exacerbated the Depression--from the massive tariffs of Smoot-Hawley to a series of disastrous interest rate hikes by the Federal Reserve to antibusiness measures such as the National Recovery Act.
“Few acknowledged this at the time, however. The Great Depression--a failure of government intervention--was called a failure of capitalism, and was used to justify even more government intervention. We are seeing this same process repeat itself today. “There is overwhelming evidence that our current crisis is the result primarily of government intervention in the economy, from the Fed’s inflationary policy of keeping interest rates artificially low to the creation and regulatory coddling of Freddie Mac and Fannie Mae to the government’s quasi-official policy of bailing out large financial institutions deemed too big to fail. But despite such evidence, this crisis is being blamed on too little government control of markets, and is being used to justify an even greater expansion of the state’s control over financial markets.
“It’s time we learn the real lesson of the Great Depression: that instead of rushing to blame capitalism and businessmen for an economic crisis, we should work to discover its real cause--and its real cure.”Sep 23, 2008 | Dollars & Crosses
Washington, D.C.—The Association of National Advertisers, a trade association representing 400 companies, has asked the Justice Department to use antitrust law to halt a proposed Google-Yahoo search advertising partnership. The deal, the group claims, will “diminish competition,” increase Google and Yahoo’s “market power,” and “raise prices.”
“This call to prevent Google and Yahoo from collaborating is an attack on the free market,” said Alex Epstein, an analyst at the Ayn Rand Center for Individual Rights. “Google and Yahoo, individually or combined, have no power to force anyone to advertise with them; their only power is the power to continually persuade advertisers that their services are the best use of advertisers’ money.
“If the members of the Association of National Advertisers object to the advertising options offered under a new Google and Yahoo partnership, there is a simple solution: don’t advertise with them. But they have no right to dictate to Google and Yahoo how to run their businesses.”Sep 22, 2008 | Dollars & Crosses
In case you missed it don't forget to read the 6 part series by Ari Armstrong and Diana Hsieh on Amendment 48 which seeks to define a fertilized egg as a person with full legal rights in Colorado's constitution.
Amendment 48 Is Anti-Life: Why It Matters That a Fertilized Egg Is Not a Person (Part 1 of 6) (September 1, 2008)
Amendment 48 seeks to define a fertilized egg as a person with full legal rights in Colorado's constitution. If fully implemented, it would profoundly and adversely impact the lives of sexually-active couples, couples seeking children, pregnant women, doctors, and medical researchers, subjecting them to severe legal restrictions, police controls, protracted court battles, and criminal punishments.
Amendment 48 Is Anti-Life: Amendment 48 and Birth Control (Part 2 of 6) (September 2, 2008)
The most obvious and severe effect of Amendment 48 would be a total or near-total ban on abortion. Perhaps more importantly, it would profoundly affect the day-to-day sex lives of couples by restricting birth control.
Amendment 48 Is Anti-Life: Fertility Treatment and Medical Research (Part 3 of 6) (September 3, 2008)
In the name of "respecting life," the advocates of Amendment 48 would impose a death sentence on the real people whose lives might be saved through such research.
Amendment 48 Is Anti-Life: Amendment 48 and Abortion (Part 4 of 6) (September 4, 2008)
Amendment 48 would ban all abortion, except perhaps in cases of extreme risk to the mother's life. As a result, the measure would cause permanent injury or death to some at-risk women. It would also force a woman to bring any pregnancy to term, regardless of her judgment about her best course in life.
Amendment 48 Is Anti-Life: Personhood and the Right to Abortion (Part 5 of 6) (September 5, 2008)
Amendment 48, if fully implemented, would outlaw all or nearly all abortions involving concerns of health, and definitely all abortions for rape, incest, and other reasons.
Amendment 48 Is Anti-Life: Morality and Abortion (Part 6 of 6) (September 6, 2008)
Much of the popular opposition to abortion stems from a faulty analysis of the morality of abortion. Contrary to the critics of abortion, the termination of even a healthy pregnancy can be a morally responsible choice.Sep 22, 2008 | Dollars & Crosses
Writes South Carolina Senator Jim DeMint in a recent press release:
DeMint Opposes Wall Street Bailout: Plan does not solve the problems that caused the current credit crunch, and could make them much worse
September 22, 2008 - Washington D.C. - Today, U.S. Senator Jim DeMint (R-South Carolina) announced his opposition to the $700 billion plan proposed by the Bush Administration to bailout Wall Street.
"After reviewing the Administration's proposed bailout plan, I believe it is completely unacceptable. This plan does nothing to address the misguided government policies that created this mess and it could make matters much worse by socializing an entire sector of the U.S. economy. This plan fails to oversee or regulate the government failures that led to this crisis. Instead it greatly increases the role for Secretary Paulson whose market predictions have been consistently wrong in the last year, and provides corporate welfare for investment firms on Wall Street that don't want to disclose their assets and sell them to private investors for market rates. Most Americans are paying their bills on time and investing responsibly and should not be forced to pay for the reckless actions of some on Wall Street, especially when no one can guarantee this will solve our current problems."
"This plan will not only cause our nation to fall off the debt cliff, it could send the value of the dollar into a free-fall as investors around the world question our ability to repay our debts. It's also very likely that this plan will extend the cycle of bailouts, encouraging other companies to behave in reckless ways that create the need for even more bailouts, triggering an endless run on our treasury. This plan may make things look better for Wall Street in the next couple months, but the long-term consequences to our economy could be disastrous.
"There are much better ways of dealing with this problem than forcing American taxpayers to pay for every asset some investor doesn't want anymore. We should start by reforming government policies and programs that created this mess, including the Federal Reserve's easy money policy, the congressional charters of Fannie Mae and Freddie Mac, and the Community Reinvestment Act. Then Congress should pass a number of permanent and proven pro-growth reforms to encourage capital formation and boost asset values. We need to make permanent reductions in the corporate tax and the capital gains tax rates. We have the second highest corporate tax rate in the world, which encourages companies to take jobs and investment overseas."
"It's a sad fact, but Americans can no longer trust the economic information they are getting from this Administration. The Administration said the bailout of Bear Stearns would stop the bleeding and solve the problem, but they were wrong. They said $150 billion in new government spending using rebate checks would solve the problem, but they were wrong again. They said new authority to bailout Fannie Mae and Freddie Mac would solve the problem without being used, but they were wrong again. Now they want us to trust them to spend nearly a trillion dollars on more government bailouts. It's completely irresponsible and I cannot support it."
While we disagree with his views on the relationship between religion and the state and his opposition to open immigration, the above makes sense to which we would further add: the government needs to establish the gold standard in banking and abolish the FED. It is the outlawing of the free market bank system that has led us to this mess in the first place.Sep 15, 2008 | Dollars & Crosses
NBC News reports:
In a tangle of bushes and trees outside a remote village in southwest Pakistan, six close male relatives of three teenage girls dug a 4-foot wide by 6-foot deep ditch, on a sweltering night in mid-July, and allegedly buried the girls alive. The girls' crime: they dared to defy the will of their fathers and the customs of their tribe and choose their own husbands. The mother of one of the girls and the aunt of another were shot and killed while begging for the girls’ lives, according to local media reports. ... "This action was carried out according to tribal traditions," said Israrullah Zehri, a senator representing Balochistan in the upper house of Pakistan’s parliament in the capital Islamabad. "These are centuries-old traditions and I will continue to defend them," he said.
To which Ari Armstrong rightfully comments:
These murders in the name of "tradition" are a sickening reminder of the widespread cultural barbarism altogether too prevalent in and surrounding the Middle East. Note that this is not merely vigilante injustice; it is sanctioned and endorsed by the "government."
When will we see the Muslim world rise up against such horrific crimes with a tenth, with a hundredth, of the intensity that it rises up for censorship of cartoons?
Speaking of cartoons, from Cox and Forkum:
Aug 27, 2008 | Dollars & Crosses
WINSTON-SALEM, N.C., -- BB&T Corporation (NYSE: BBT) today said that longtime Chief Executive Officer John A. Allison will retire as CEO on Dec. 31, 2008. He will continue as chairman of the BB&T Corporation board of directors until Dec. 31, 2009.
The board on Tuesday voted unanimously to promote Chief Operating Officer Kelly S. King, the No. 2-ranking executive manager at BB&T since 2004, to succeed Allison as CEO and president. King was also elected to the board. BB&T will name a successor to King as COO at a later date.
Allison's decision to step down as chief executive, a position he has held since 1989, is the latest step in a five-year executive management transition plan at BB&T. Since the plan began in 2003, six new executive managers have joined the executive team while four have retired or announced pending retirements, including Allison and Chief Credit Officer Ken Chalk, whose last day at BB&T is Friday.
"This is the next-to-last step in a systematic succession plan we've had in place for some time now," said Allison, who plans to continue to serve on the BB&T corporate board after he steps down at the end of next year as chairman. "But it's still an announcement that comes with a lot of mixed emotions when you consider the integral role that BB&T has played in my life for nearly 40 years now."
Allison, a 60-year-old Charlotte, N.C., native, has presided over BB&T's storied transformation into one of the largest -- and highest performing -- financial services companies in the nation.
After 60 bank and thrift acquisitions since 1989, the former eastern North Carolina farm bank has grown to become the nation's 14th largest financial holding company. Assets have increased from about $275 million in 1971 when Allison's career at BB&T began to $136.5 billion today.
As it has grown, BB&T has steadily climbed the ranks in key measures of performance such as client service, profitability, capital strength, credit quality, operating efficiency and fee-income generation.
"I'm extremely proud of all that we've accomplished and the meaningful impact we've had on the lives of so many clients, employees and shareholders," Allison said. "I will certainly miss my close relationships with so many friends and business associates. However, for BB&T and for me personally, this is the right time to move forward. Nearly 20 years is certainly a long time for anyone to serve as CEO."
Allison is the longest serving chief executive at the 25 largest financial holding companies in the nation.
After joining BB&T and completing its Leadership Development Program, he served as the program's manager for two years before being named regional loan administrator in 1973. Allison joined BB&T's executive management team in 1980, the same year he was promoted to Business Loan Administration manager.
A year later, he was named manager of the BB&T Banking Group. In 1987, Allison became president, a position he held until succeeding the late Vincent Lowe as chairman and CEO on July 11, 1989. At the time, BB&T had $4.5 billion in assets.
Allison orchestrated a merger of equals with the former Southern National Corporation in 1995, which moved the BB&T corporate headquarters from Wilson, N.C., to Winston-Salem, N.C., and kicked off a decade-long growth spurt unmatched in the industry.
"I was a board member before John became CEO and I've seen firsthand the development of the bank throughout his tenure," said lead corporate director James Maynard, co-founder and chairman of the Golden Corral restaurant chain. "He established and nurtured a corporate culture of the highest integrity. His leadership is unique and unprecedented in the financial industry. Our company has seen profitable growth for more than 20 years."
Allison is a board member of the Wake Forest University Medical Center, the Fuqua School of Business at Duke University, the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill and the Clemson Institute for the Study of Capitalism. He also is a member of the American Bankers Association and the Financial Services Roundtable.
Allison earned a bachelor's degree in business administration from the University of North Carolina at Chapel Hill and master's in business administration degree from Duke University. He also holds honorary doctorates from East Carolina University, Mount Olive College, Clemson University and Marymount University. He is a graduate of the Stonier Graduate School of Banking at Rutgers University.
King, 59, joined BB&T in 1972 and has been a member of BB&T's executive management team since 1983.
He said BB&T will continue in the same "strategic direction" after he's CEO. "There is no reason to change course. Our mission, service culture, operating strategy and values have only been reaffirmed during the current down cycle in the economy. BB&T's best days have always been ahead of us. We will continue to execute on our vision of creating the best financial institution possible."
After completing BB&T's Leadership Development Program, King served in management positions in the North Carolina cities of Statesville, Charlotte, Wilson and Raleigh.
In 1987, King was named manager of Branch Administration and, a year later, was named manager of the BB&T Banking Network. He was named president of BB&T Corporation in 1996, and succeeded Henry Williamson as chief operating officer in 2004.
"Kelly has been involved in every significant strategic decision we've made at BB&T for over 25 years," Allison said. "He is a proven leader and firmly committed to BB&T's culture and vision and the corporate values that have made us successful. He will do an outstanding job as CEO."
The Raleigh native is a member of the Financial Services Roundtable and serves as chairman of the Piedmont Triad (N.C.) Leadership Group. He is a member of the (N.C.) Triangle Community Foundation Leadership Council and a board member of the N.C. Chamber of Commerce.
King is past chair of the United Way Tocqueville Leadership Society, and a former board member of the American Bankers Association and the N.C. Citizens for Business and Industry. He has served as chairman of numerous boards, including the N.C. Rural Economic Development Center, the N.C. Bankers Association and the East Carolina University Board of Visitors.
"The board is totally confident in Kelly's leadership and long-term commitment to our company," Maynard said. "Kelly knows BB&T as well as anyone. He knows the culture and knows the values and will keep both intact as CEO. We are extremely fortunate to have someone with Kelly's talents and abilities ready to step into this job."
King earned his bachelor's and master's in business administration degrees from East Carolina University. He is a graduate of the Stonier Graduate School of Banking at Rutgers University.
"I respect and appreciate the phenomenal job that John Allison has done in leading our company the past 20 years," King said. "I have mixed feelings because we've worked so closely together for so many years and I've truly enjoyed our relationship. But I'm also happy for John and his family. He's still young and healthy and will have the time now to pursue interests that are very important to him."
King will assume the helm at BB&T as the last remaining member of the "original five" executives widely credited for transforming BB&T from one-time farm bank to one of the largest and well-run financial institutions in the country (along with Allison, retired COO Williamson, outgoing CCO Chalk, and retired Chief Financial Officer Scott Reed).
"Our five-year plan was about a generational change to systematically add six relatively young, yet very tenured leaders to our executive management team," Allison said. "We have a proven team in place now that will provide the necessary foundation to compete -- and remain independent -- in a rapidly changing world."
Electronic Delivery Channel Manager Barbara Duck, 41, and Chief Marketing Officer Steve Wiggs, 50, were added to the executive team in August 2003. Banking Network Manager Ricky Brown, 52, and Chief Financial Officer Chris Henson, 47, joined in June 2004. Chief Credit Officer Clarke Starnes, 49, and Deposit Services Manager Donna Goodrich, 45, were added in December 2006. All joined BB&T's Leadership Development Program out of college and have at least 20 years of experience with BB&T. The six newest members are joined on the executive team by Chief Administrative Officer Rob Greene, 58, and Operations Manager, Leon Wilson, 53, who have 36 and 31 years with BB&T, respectively.
For Allison, in addition to his immediate role as chairman of BB&T Corporation followed by continued service as a corporate board member, he plans to spend his retirement writing books about two of his passions: the role of values in effective leadership and the evolution of the financial system in the United States.
Allison already is the author of the BB&T Values, a 30-page handbook that outlines the company's 10 core principles, which include "reason" and "justice." As much philosopher as businessman, he spends a week each year at a philosophy conference and has long encouraged senior managers at BB&T to read a thoughtful, nonfiction book each month.
Allison also plans to work with colleges and universities participating in BB&T's Moral Foundations of Capitalism program, which provides grants for the study of the moral and intellectual underpinnings of capitalism and free enterprise.
With $136.5 billion in assets, Winston-Salem, N.C.-based BB&T Corporation (NYSE: BBT) is the nation's 14th largest financial holding company. It operates nearly 1,500 financial centers in 11 states and Washington, D.C. More information about the company is available at BBT.com.
