The Freedom Factory

For everyone that has a Facebook account, the status updates can be a powerful tool to get your opinions across to your friends-sometimes I just can’t believe what some people say! A closet socialist friend of mine posted a congratulatory post about Obama’s Nobel Peace Prize… Continue Reading

The trade wars begin-Mexico raises tariffs on U.S. exports in retaliation of truck project cancellation, Obama angry at A.I.G. over bonuses-tries to cut them, small businesses to be next bailout beneficiaries, government tries to track down and confiscate Madoff assets-who will keep them? China uses global downturn to boost competitive advantages, Jon Stewart rips apart Jim Cramer in debate on poor financial reporting…just the latest in your Freedom Under Fire Report! Continue Reading

Commercial real estate developers are the latest group of pigs to waddle to the federal trough. With upwards of $530 billion in commercial mortgages coming due in 2009, developers are warning “that thousands of office complexes, hotels, shopping centers and other commercial buildings are headed into defaults, foreclosures and bankruptcies.” Continue Reading

There has been a good deal of talk over the last few months about whether or not a carmaker bailout would occur. To everyone following this web site, the outcome was never in doubt. The Bush administration, today, announced a $17.4 billion loan to General Motors (GM) and Chrystler. This is just the beginning… Continue Reading

One of the biggest advocates against the automotive bailout is the Cato Institute. Since Congress appears to be poised to pass an intial bailout measure, it is worth a final review of some reasons why it might not be a good idea. Here’s a brief video by Cato on the subject:

The main takeaways:

1. Union contracts make Detroit’s long-term prospects untenable, no matter how much money you throw their way
2. Labor costs are meant to be fixed, not variable…union contracts obscure this reality
3. Employee wages are multiples of fair market values that non-unionized competitors face

Finally, we must ask the question:

Where is it written in stone that we need a Big Three?

Ultimately, this bailout enables the Big Three to avoid facing economic reality now, filing bankruptcy, and doing what’s necessary to void untenable labor contracts. The only way the U.S. will have a viable automanufacturing industry in the long run is to conform its business practices to global reality.

Bankruptcy means bad businesses can restructure, organize efficiently, split into parts that make sense and emerge stronger than before. Subsizing bad companies means we’ll never see the good ones.

Check out this incredible invention…let’s you turn Capitalism on or off whenever you want!

Don’t waste your time with complicated Socialist revolutions.  Just clap on when times are good and you want the profits for yourself, and clap off when times get tough!

Simple and easy…the new American way!

Americans seem to have a problem accepting responsbility for their problems these days. During good times people proudly invoke the American tradition of free enterprise and the right to keep profits for taking risks. However, when things come crashing down these very people seem to be the first to demand someone rescue them. Our economic system has become one of privitizing gains and socializing losses. With $2.3 trillion in combined federal “stimulus” packages this year, it seems as though everyone is clamoring for a piece of the spoils! The most recent pigs to waddle to the federal trough are city and state governments. Continue Reading

The pigs are lining up at the trough!  CEO of JC Penny is now lobbying for a federal bailout plan to boost consumer spending and come to the rescue of an ailing retail industry. This is the slippery slope of corporate welfare. You bail out one industry because some lobbyists paint it as “essential” for the survival of America, and then you have every industry lining up for similar handouts. When it comes down to it they can all paint a pretty picture of necessity, referring to employment, revenue, and other stats, but does lipstick on a pig make it anything but a pig? Continue Reading

Famous investor and writer, Jim Rogers (Adventure Capitalist, Investment Biker, and Hot commodities), recently stated that America is “more communist than China right now,” but our variant of socialism is geared towards the rich. He was referring to the federal government’s decision to bail out beleaguered mortgage giants, Fannie Mae and Freddie Mac. Tagged onto earlier questionable Federal Reserve bailouts designed to stabilize the financial system, as well as longer-term protectionist policy and corporate subsidies, Mr. Rogers might just be onto something…

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