What the Government Can and Cannot Do

For the first time in decades there seems to be a serious discussion about the role of government in a free society and the question of what it "can" and "cannot" do is becoming ever so common. Rep. Michele Bachman (R-MN) had an excellent exchange with the Secretary of Treasury Tim Geithner on this subject.

The issue being discussed was the Constitutionality of the bailout. Geithner was being questioned by the House Banking Committee. The exchange went something like this:

BACHMAN: By what authority did the Treasury Department bailout major financial institutions?

GEITHNER (clearly looking puzzled by the question): What do you mean?

BACHMAN: What legal authority did you have to do this?

GEITHNER (almost looking guilty and certainly more confused): Congress said we could.

BACHMAN: What authority did Congress have to do this?

From there the conversation digressed to one very similar that a child with his hand stuck in a cookie jar would say to a parent. "Bobby said I could do it." Of course, Bobby didn't have the authority, but we will blame him anyway. That is the dilemma today. We have years of Constitutional authority that has deteriorated away and a government that largely runs on autopilot. This is beyond government based on "precedent," which means new laws are tested against others that passed court muster. This is filled with enough peril, but the new model is to rapidly pass laws and see if they hold up or not. With so many years of complacency, many things become law that would not have had a prayer a few generations ago.

So the question of what government can and cannot do remains. The answer to me seems simple. You have to read the source, which is the US Constitution. It is a very short read, measured in dozens of pages. The document is also very straight forward:

• What the Government can do is found in a short section of the Constitution often referred to as the enumerated powers (Article I, Section 8). There you will find seventeen things the government can do. Really interesting things like post offices, post roads, and standard weights and measures. Very little of what government does today can be found as a listed power of government.


• Many through out the states that were needed in ratifying this Constitution noted a "necessary and proper clause" in Article I, Section 8 that was designed to make sure these 17 things would be allowed to be fulfilled (noting the problems the government had under the Articles of Confederation before). Because of their concerns about the fact that some could interpret that clause as anything those in government deemed "necessary and proper," they forced the government to add Ten Amendments to the Constitution, also referred to as the Bill of Rights.


• "Amendments", as the name implies is about changing. So these amendments changed any assumptions or potential loopholes in the Constitution in the areas they addressed. When it comes to the issue of government power, the Tenth is the most important of these amendments, stating that "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." Simply put, if not an enumerated power, it is for the states or the people. Period. If people want socialized health care, move to states like Oregon or Massachusetts that have such programs or even try to pursue such in their own states. The Founding Fathers were brilliant in understanding that a "one sized fits all" form of government would eliminate competition in policy and have people with no freedom of choice. That, more than anything else, made them believe in state rights.

In spite of the clarity, government has been moving towards the elimination of our freedoms for generations. To move back in that direction will be challenging, but is necessary. What our government is allowed to do according to the law, however, is obvious. To think differently is disingenuous.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Does Obama want Harry Reid Out?

For years, conservatives have called on Sen. Harry Reid (D-NV) to resign as Senate Majority leader. This was due to his statement in 2007 that the war in Iraq was effectively "lost." He was wrong then both in principle and reality, but members of his own party embraced him warmly as they all collectively denounced our troop in ability and worked to undermine their morale. The warmth he shared among Congressional Democrats may now be lost since he has become the single most powerful obstruction to Barack Obama's agenda. Republican rants, tea party tirades, and conservative condemnations cannot compare to one man who sets the policy agenda in the US Senate. Reid, who is fighting for his political life in his reelection for 2010 is saying "no" to a second stimulus and is delaying the vote on Obama's health care agenda. This is not due to the economic consequences of these bills, but because of the political consequences as he faces a very difficult election in just over a year. The truth is, Nevada is not nearly as liberal as Harry Reid. In fact, he replaced one of the most conservative members of the Senate, Paul Laxalt, who was arguably Ronald Reagan's best friend and ally in the Legislative Branch.

Things are getting ugly on the left, many small, liberal bloggers have declared he needed to go. Now, the situation is worsening for Reid, as The DailyKos says "Harry Reid...for the good of Country...Please Resign!

The writing is written on the polls for Reid as well. The Las Vegas Sun reports "he still has some of the worst polling numbers in the country for a senatorial incumbent — a Mason-Dixon poll last month found that only 34 percent of the electorate had warm and fuzzy feelings about him, and 46 percent did not think too highly of him. Those are fatal numbers for most elected officials, especially one who has been around for four decades, which surely has caused a contagion of Reid fatigue." It goes on to point out that, in spite no "name brand" GOP candidates seems to be looking seriously at Reid's seat, "There are plenty of folks talking about and even campaigning for Reid’s seat on the GOP side. And even a no-name has a chance against someone whose approval numbers are upside down. Ex-Assemblywoman Sharron Angle may draw tittering from the political cognoscenti, but she is relentless, and with some outside funding, she almost cost Heller that congressional seat two cycles ago. And there will be plenty of outside funding this cycle as the national Republicans have Reid as their No. 1 target — and, I’d guess, their Nos. 2 through 10, too." Finally, it notes that "Except the national atmospherics could make somebodies out of nobodies pretty quickly if the economy does not improve, if health care reform implodes, if President Barack Obama’s numbers turn Reid-like. As the most powerful Democrat in the legislative branch, he would not just have to carry the national negatives if they exist; he would be the symbol of them — at thousands of gross rating points a week next summer."

Because of these realities, Reid will play it safe between now and November of 2010, making himself the single biggest obstruction to President Obama. Here are just a couple scenarios bouncing around.

If Reid resigns as Majority Leader, he can free up the Party to be as liberal as it wants and he can vote with the "conscious of a conservative" up to the end of next year. Problem is, much of the money he brings to his reelection is because he is Majority Leader. Furthermore, it is how he makes his case for reelection. "As Senate Majority Leader I have enormous influence on how states, like Nevada, benefit from Washington's policies." Difficult to make that case if you are no longer leader.

On the other hand, he doesn't resign and the Obama agenda goes down like the Titanic (an ever growing possibility), I could see the President and his minions pour money in to get a Primary opponent funded that will force Reid to resign to spend time on his reelection efforts.
Either way, Reid is in one ugly position.

Rumor has it, pressure is already being applied on Reid to resign within the government, in spite Congressional leaders defending him. I believe it will soon be revealed that Obama himself is applying that pressure. It will be interesting to see how this unfolds.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The "Rest of the Story" on David Asman of Fox Business

David Asman of Fox Business, who was a guest on my program a few months back, spoke with passion about a terrible incident that happened when his wife and him were traveling to London, England. In his own words, from an article in the Wall Street Journal, he talks about being approached by an employee of the hotel they were staying at: "'Mr. Asman, could you come down to the gym? Your wife appears to be having a small problem.' In typical British understatement, this was the first word I received of my wife's stroke. We had arrived in London the night before for a two-week vacation. We spent the day sightseeing and were planning to go to the theater. I decided to take a nap, but my wife wanted to get in a workout in the hotel's gym before theater. Little did either of us know that a tiny blood clot had developed in her leg on the flight to London and was quietly working its way up to her heart. Her workout on the Stairmaster pumped the clot right through a too-porous wall in the heart on a direct path to the right side of her brain. Hurrying down to the gym, I suspected that whatever the 'small' problem was, we might still have time to make the play. Instead, our lives were about to change fundamentally, and we were both about to experience firsthand the inner workings of British health care." He goes on to make one of the most eloquent arguments I have heard about the horrors of socialized medicine.

What stayed with me in that interview was the amount of "heart" he had in this discussion about saving his wife. You hope every man or woman would have the same amount of passion in wanting to save his or her partner. In Asman it was awe aspiring. I understand more so why this is the case after learning the "rest of the story." A friend of mine, who knew how much I liked Asmen refereed to me an article from the Miami Hearald called "A Revolutionary Love Story."

It reads like an adventure novel with a romantic bent. In it, Asman describes his adventures as a journalist in Nicaragua in the dangerous days of the Communist Revolution. While there he is introduced to Marta Cecilia, a revolutionary herself who grew to find that the communists were merely offering another brand of totalitarianism. She quickly gave up her government job, which made her a threat to the new regime and even became a critic of the revolution. With people being arrested left and right for criticizing the government, it was clear Cecilia had to get out. During all this drama, Asman and Cecilia fell very much in love and an amazing story unfolded that resulted in their life together as a family with children in New York City today. The article reads like great fiction, but it is absolutely true. I'm only scratching the surface. I suggest you read the entire article yourself. To hear my interview with Asman, click here.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The New face of Discrimination

There appears to be a new discrimination that is rampant across our country. This past week there was an arrest of an African American Professor (Henry Louis Gates) of Harvard by the Cambridge police and I found it interesting that President Obama and Governor (Deval) Patrick came out and immediately cried "racism" by law enforcement without asking a single question. They didn't ask about the protocol used by the police, they didn't ask what witnesses saw, they appeared to simply just jumped to conclusions. The reason why is because 'one of their own' had to have been mistreated, in their minds. Before you accuse me of using the "race card," I am not. I recognize that Obama, Patrick, and Gates are all African American and the arresting office was white. But that isn't what I mean. Gates and his supporters have something else in common, they are elitists.

• Patrick graduated from Harvard University for both his undergraduate degree and a law degree. Furthermore, he went to the prestigious Milton Academy.


• Obama is a graduate of Columbia University and then went on to Harvard Law School, becoming the first African American president of the Harvard Law Review.
  
• Henry Louis Gates, the man at the center of the storm, has his BA in History from Yale and a PhD in English from Cambridge University.
  

What seems to be playing a bigger role in the things these men have in common is elitism, rather than race. We don't want to miss, in this story, the poor police officer, Sgt. James Crowley, who could not be more "blue collar" in his uniform. Like most police officers today, he likely has some college experience. A couple of years of college maybe or, who knows, an undergraduate degree from a solid college some where. His academic credentials are not nearly as easy to find of those of his accusers. I do know he teaches a course on race relations at the police academy because of his years of experience and exceptional conduct in this area. Now being tarnished by a Governor and President who don't know enough about the situation and a professor who knows more than exists in the hearts of men. At least, it appears, this man.

All we have are some facts, laid out nicely by The New York Daily News. The information surrounding the case that all parties agreed on:

"Crowley, an 11-year veteran of the Cambridge Police Department, responded to a reported break-in at the renowned scholar's home last Thursday. A neighbor reported seeing two black men break into the professor's home. She was unaware the man forcing his way inside was Gates, who had locked himself out. When Crowley arrived, he told an incensed Gates he was investigating a report of a break-in and asked for his identification. 'Why? Because I'm a black man in America,' Gates responded, the police report says. Gates initially refused to hand over his ID, instead angrily accusing the officer of being a racist and 'leveling threats that he wasn't someone to mess with,' the report says. After Gates produced his Harvard University ID, he repeatedly demanded Crowley state his name, which the officer claims he had already done. Crowley said Gates continued hurling insults at him as he left the home. Crowley arrested the scholar for disorderly conduct. The charge was later dropped. 'He was arrested after following me outside the house, continuing the tirade even after being warned multiple times - probably a few more times than the average person would,' Crowley told the radio station." You can hear the entire interview here.

Comedian Bill Cosby, who has become something of a conscious to many in the African American community, commented on the controversy with three simple words, "I wasn't there." He wants both sides to simply speak the truth and the facts to be examined. He doesn't conclude that the person with the better credentials is a better person, an impression that the Governor of Massachusetts and the President of the United States seems to be conveying.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Why Time is not on the Side of Obama's Policy Agenda

All of a sudden it appears that the clock is ticking against Obama. Although the President has long promoted his legislative agenda at record (if not reckless) speed, there seems to be an alarm when he talks and a frequency that people are increasingly describing as "neediness." He may now be "over selling" his agenda and people are beginning to believe that his policies need more vetting before they become law. That is a sentiment that has been conveyed to Congress.

The most costly government "investment" in the form of bailouts that equaled budgets covering many years was passed with the promise that, if it didn't, unemployment would jump to 8.5% by this time. Upon its passage, unemployment is pushing 10% and the voting public is beginning to have buyers remorse when it comes to government solutions.

A central part of Obama's approach to policy was to attack many issues at the same time with the hope that some of them get passed. As a result, many pieces of legislation has flown through Congress without even being read by the member that voted for it. This has lead to Congress hitting the brakes.

As a result, time is not on the side of President Obama for many reasons:

• While the President doesn't have to face reelection until 2012, many in his own party are facing tough fights in 2010. For them, their political future is measured in months, not years.


• Particularly vulnerable in 2010 is Senate Majority Leader Harry Reid (D-NV) who is facing the most difficult race he has had in years. He is single handily derailing Obama's health care reform efforts in order to make sure he has a seat in the next Senate. Furthermore, he was quick to dismiss the need of another stimulus package citing the imperative to prove the others have worked. While some Members of Congress are crying that it should not go on vacation until health care reformed is passed, Reid disagrees and plans on taking the scheduled break.


• We have the highest unemployment we have seen in decades and as every point goes up, the popularity of the President goes down. Projecting the effects of the current policies, many are assuming the unemployment rate will be close to 20 percent by the end of the year and then that should sound the end of any political capital necessary for Obama to achieve serious "reforms" in this Congress.
  

There is a saying that, "when your neighbor loses a job it is called a recession and when you lose a job it is a depression." For most Americans, jobs are where the "rubber meets the road." Unless Obama enjoys a miracle in the job creation department, his agenda is in serious jeopardy.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Fox Business Breaks Stanford Whistleblower Story

Although I tend to write about national and international issues, I cannot help but notice an important story that broke out very close to home and is having an impact through out the world of finance. Allen Stanford, who has been accused of being a "Mini Madoff" has dominated the headlines of finance newspapers for weeks and people have been trying to get a handle on the full extent of the damage he has done. Fox Business Network, in a recent interview with Stanford whistleblower Leyla Wydler has helped significantly in that effort. The network was the first to break with the Wydler interview.

Being interviewed by Fox's Adam Shapiro, with her attorney Mike Falick, Wydler went into detail about "what she knew," "when she knew it," and the efforts she took to get the word out to others.

This important interview included:

• Wydler’s attorney Mike Falick on the response they got from the NASD, now FINRA, during their lawsuit: “We were told by FINRA that our document request was irrelevant. Obviously, the document request was highly relevant, and had we gotten those documents not only would Leyla have won her case, but maybe 30,000 people wouldn’t have lost their life savings."
  
• On being pressured to bring more deposits to Stanford Financial’s off shore bank: “I was constantly bombarded with emails, telling us to bring more deposits into the bank. Management, and the managers there, they would be sending us emails and they even had scorecards and make teams within the offices, to see who would bring more deposits in.”


• On why she questioned Stanford Financial’s off shore CDs: “I knew they were not FDIC insured, I looked at their financial statements their financials were not audited by US reputable account firm, instead it was done by an unknown firm in Antigua, to me that was a red flag. I was not going to put my clients into a CD that seemed safe and very liquid when in fact it was not."


• On why she was terminated from Stanford Financial Group: “In 2000, I was recruited to work for Stanford as a broker. As a broker dealer, and not to sell their offshore product, which was at the bank in Antigua. I went through arbitration back in 2002 when I was terminated, I was working for Stanford since 2000 until 2002, and it was mainly because I was terminated because of my reluctance to sell those CDs.”


• On how the NASD, now FINRA, reacted when she claimed that Allen Stanford was running a Ponzi Scheme: “I guess indifferent, you know they didn’t even do their due diligence and say ‘Ok, I would like to see their portfolio appraisal and be verified by a 3rd party and to prove her wrong’.”


• On going to the SEC in 2004: “I had a list of everything, all my concerns. I wrote down a document and sent it to them and I told them these are my concerns, this is what happened, look into it, this might save people’s savings in the future, because we can stop this. And it was just sent to them, and that’s it.”


• On how much money would have been saved in NASD, now FINRA, would have listened to her: “When I left I believe that there was about a billion dollars in the bank and it ended at 7.2 billion.”

It was a "must see" interview and provided the kind of information that, if the regulators had been doing their job, would have saved people billions of dollars.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Wonder Where ABC gets its Business News?

We are all familiar with that media monster called ABC and its huge channel selections that includes sports (the many ESPN channels), kids programming (the Disney Channels), and many others. But I was curious where they got their business news and information. They obviously wouldn't go to CNBC, since it is a part of the GE family, which includes archrival, NBC. But they still have Bloomberg and a plethora of independent business media available. For some reason I was surprised to see Alexis Glick of Fox Business (part of a huge family of networks that overlap ABC in sports and family programming) on ABC's Good Morning America.

Alexis Glick, who has been a guest on my Price of Business show, is one of the most articulate and well versed people on business news and content. She did not disappoint on ABC's Good Morning America with a very thoughtful Goldman Sachs earnings preview. In her discussion she:

• Reviewed the enormity of Goldman Sachs earnings and what it means to Wall Street and Main Street


• How taxpayers should feel about this participant of the bailout enjoying this kind of earnings


• What should taxpayers expect in the future when it comes to company bailouts


• How Goldman Sachs early repayment of the TARP (it was one of the first companies) should matter

Glick is one of the more perceptive analysts in business news and I largely agree with her when it comes to the variety of feelings most Americans will experience when it comes to "Business after TARP" (sounds like a future article). I believe that it is imperative, however, for Members of Congress in both Houses and the American people to assess TARP and whether it was the best route to follow. This requires tough questions:

• Why were we informed that TARP needed to be passed "now," but more than 90 percent won't reach its beneficiaries until 2010?
• Why is the bulk of that money being released during the election year when we are experiencing near double digit unemployment now?
• Was this a legitimate action for the government to take in light of the obvious Constitutional restrictions?
• Since government jobs don't create profit, and profit is necessary for long term job growth, are not the government created jobs all temporary?

These questions and many more should be asked by the media on politicians daily. However, other than Fox and a few overtly conservative media outlets, it simply will not happen. That is probably the exact reason ABC called on Fox and the analysis of Alexis Glick. Not only is the network noted for being "fair and balanced," but it is also extremely thorough. Something we really need from the media today.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

The Last Thing the GOP Needs is an "Alternative" Health Care Plan

Just when you think the Republican party is prepared to draw a line in the sand and put up a fight against the hostile take over of our health care system by the government, we are now hearing about a likely GOP alternative to the Democrat's rationed care system. This is, of course, business as usual. One party will propose a bill and the other party will offer alternatives in an effort to slow down the direction in which the country will be heading. Democrats might offer an alternative to a policy that is too "free market" for their tastes, while the GOP may offer a plan that might slow down the pace towards socialism. That is the problem, particularly when it comes to socialized medicine. To produce their "knee jerk" policy alternative to socialized medicine, which will be filled with government intervention of its own, will merely make the case for a lighter form of socialism, when a case for the free market needs to be made.

Instead, the GOP should take a different approach. Republicans should go on their own offensive and attack what the government has done to health care to date, what government will do to innovation in the future, and how rationed health care has devastated the lives of others around the world. Republicans need to read the growing sentiment of the American people who are looking for Constitutional government and not merely a slower vehicle towards totalitarianism. The following are some bullet points that might help those who want to resist this government expansion:

• Make it personal. Do you know people who have received poor treatment under socialized health care in other countries? How about those who received government care in this country? My mother's family was from England and had relatives die due to socialized medicine, so it is easy for me to make it personal. Spend a little time researching socialized health care horror stories. Conservatives for Patients Rights is an excellent source of information.


• Talk innovation. According to Forbes magazine, 80 percent of all innovations in health care are from the United States. For decades, the prevailing technology that has been used through out the world are from the USA. The reason for this is simple, this country is one of the last with a financial incentive to improve health care. When we remove the incentives in health care, we will naturally see technology slow to a trickle


• Talk about the law. Remind Members of Congress that the Constitution doesn't have a provision for socialized medicine. Furthermore, Article I, Section of the Constitution states what the federal government can do. Point out that this is an issue that is suppose to be left to the states, according to the Tenth Amendment. States such as California, Massachusetts, and Oregon each have comprehensive health care programs. Other states can develop their own, where such is allowed, each state can observe what others are doing and increase the likelihood of developing something that works. Republicans who are afraid of opposing socialized health care should say "I am open to such reforms as long as it is done by the states, where it is allowed."

Obama's health care agenda is immoral. Period. It is stealing from some to pay for others. The state of Hawaii had a universal program that lasted only seven months. Why? "People who were already able to afford health care began to stop paying for it so they could get it for free," said Dr. Kenny Fink, the administrator for Med-QUEST at the Department of Human Services. "I don't believe that was the intent of the program" he went on to say. Whatever amount the government claims it will cost is a mere fraction of what it will actually be. It will be ineffective, expensive, destroy innovation, and be a massive waste. This is a great opportunity for Republicans to take the offensive and fight for the rights of patients.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

What Type of "Future Judge" is Sotomayor Trying to "Inspire"

The hearings regarding Sonia Sotomayor's appointment to the Supreme Court are among the most interesting I have seen in quite some time. Not only does this particular appointee stir controversy when it comes to specific issues (e.g., Abortion, which is always a hot topic), but she brings a complete paradigm shift on the way the court conducts itself. In particular, this judge raises the question, "will justice remain blind?" Justice being blind is one of the fundamental rules of law that has guided this Republic. It is being seriously challenged by Sotomayor.

Senator Jeff Sessions (R-AL), the ranking Republican on the Judiciary Committee, has provided some of the most important questions to the changes in the law Sotomayor appears to want to pursue from the bench. Session stated in his questions to Judge Sotomayor:

"In 1997 when you came before the Senate and I was a new senator, I asked you this. In a suit challenging a government racial preference in quota or set-aside, will you follow the Supreme Court decision in Adarand and subject racial preferences to the strictest judicial scrutiny," close quote. In other words, I asked you would you follow the Supreme Court's binding decision in Adarand v. Pena. In Adarand, the Supreme Court held that all governmental discrimination, including Affirmative Action programs, that discriminated by race of an applicant must face strict scrutiny in the courts. In other words, this is not a light thing to do. When one race is favored over another, you must have a really good reason for it, or it's not acceptable."

"After Adarand, the government agencies must prove there is a compelling state interest in support of any decision to treat people differently by race. This is what you answered: "In my view, the Adarand court correctly determined that the same level of scrutiny -- strict scrutiny applies for the purpose of evaluating the constitutionality of all government classifications, whether at the state or federal level, based on race," close quote. So that was your answer, and it deals with government being the City of New Haven."

"You made a commitment to this committee to follow Adarand. In view of this commitment you gave me 12 years ago, why are the words "Adarand," "Equal protection" and "Strict scrutiny" are completely missing from any of your panel's discussion of this decision?"

Sessions essentially established that Mrs. Sotomayor lied when she sat for approval to the Court of Appeals in 1997. She lied, knowing that she would possibly be appointed to a higher court and that her radical decision against blind justice, would likely be over ruled (which it was in Ricci vs. DeStefano). Also, 80 percent of her decisions have been overturned by the Supreme Court. She is a radical jurist who will now be defining precedent in the Supreme Court. The future of the law will be one in which racism will be sanctioned.

Much of the concern lies in statements that she has made about "wise Latina" females making better decisions than white males. What motivated her to make, what can easily be described as a racist statement? She told the Senate Judiciary Committee that "I was trying to inspire them to believe that their life experiences would enrich the legal system, because different life experiences and backgrounds always do." In essence she is trying to inspire future lawyers. Lawyers who will consider racism as an acceptable framework for making legal decisions.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Richard Shelby has Candid Discussion about the Fed Chair on Fox Business

For the vast majority of Americans, being told that we are having a "jobless recovery" is the same as saying we are having no recovery at all. "Recovery" means employment, job growth, opportunity, job security (even if it is not the one you are in, it is the knowledge that there are plenty available). "Recovery" without jobs, means prosperity only for the "haves" in an economy. This is something that seems to persist no matter what is going on in the larger picture.

In a startling interview on the Fox Business Network, Sen. Richard Shelby (R-AL), the ranking Republican on the Senate Banking Committee, stated that he was informed by Federal Reserve Chairman Ben Bernanke that we might be dealing with a "jobless recovery."

Here are excerpts from the interview with Sen. Shelby on his very candid discussion with Chairman Bernanke:

What does Chairman Bernanke say about the recovery? "He thinks when there will be a recovery—basically his words—it will be a jobless recovery, and that’s not good for America.” Again, for the vast majority of Americans, this is no recovery at all.

What about giving the Federal Reserve more regulatory power? “We talked about the regulatory structure that we will be debating this year up here, and the Fed basically as a regulator failed the American people. Why should we give them more power now? That’s the question I asked. He didn’t say they didn’t fail. He didn’t admit it, but he didn’t say otherwise.” Alas, we have seen how much the shift in power to the Federal Reserve has "benefited" the larger economy to date. No wonder many members of Congress are skeptical.

What about the pace of an economic turn around? “The answer was basically muddle… He was very careful with what he was saying even to me, a member of the banking committee.” I find the word "even" to be a little humorous. Seeing the insane things that have happened from this Administration and the total lack of transparency of those that are governing, you would almost think Sen. Shelby would say "especially to me." The last thing the Fed wants is more accountability, in my opinion.

Has the economy made a turn around the corner? “He couldn’t really answer that. He thinks some of our financial crisis has stabilized, but it’s not over.” I guess one of the "jobs saved" so far is Bernanke's. That is a sign of recovery, isn't it?

As I have said before, being hungry is crucial, no matter what business you are in, including cable news. Consistently, Fox Business, even with its relationship with the largest name in cable news, Fox News, demonstrates a desire to beat others to the most important business news stories of the day, as seen in this breaking news story on Shelby. I don't mean to sound like Neal Cavuto, but if you don't get Fox Business, make sure you contact your cable provider. In the mean time, you might consider regularly visiting FoxBusiness.com for the latest in videos and other information.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Politics and Women on Fox News Strategy Room

The 3 PM EST of Fox News Strategy Room is often referred to as the ADHD hour because its Host, Eric Bolling, takes that program exactly where he wants it to go. There is no particular agenda, just the biggest headlines driving the day's news. This week when I was on the she we spent some time discussing Sarah Palin's decision to not run for reelection and, far more surprisingly, to resign as governor.

I have been arguing that the mainstream media will do everything in its power to prevent a conservative female or minority from being elected to national office. The left has believed that minorities and women would have no political power without the liberal agendas of the past. Essentially, they want to keep these groups on an ideological plantation, with women and minorities marching in lockstep. I assume the progressives don't realize that the idea behind giving these groups their freedoms, was to empower them to be able to disagree with their agenda. That is what freedom is all about.

Immediately, others in the panel disagreed. They pointed to people like Bay Buchanan, who has enjoyed a successful career as a political consultant. She has never faced the scrutiny of the election process, to me it was a weak argument. They then countered with Elizabeth Dole.

There is no doubt about it, Dole has had an impressive career. Former Secretary of Labor, former Secretary of Transportation, and an US Senator, Dole has certainly had a career filled with accomplishments. My colleagues were missing my point. You can point to many successful conservative females in politics, but we only have one that was on a national ticket and that was Sarah Palin. Now Dole has run for national office, but had little to show for it.

In 2000, Dole pursued the Republican nomination for President. She actually made her announcement in 1999 and pulled out before Halloween of that year. Her candidacy didn't even have the opportunity to face a single primary because of a lack of funding. Dole placed third, behind then Governor George Bush of Texas and magazine publisher Steve Forbes, in a large field in the Iowa Straw Poll. Polls in Iowa showed her fairing even better, second only to George Bush, but without money, why bother. The media didn't have to butcher Dole because she was never a serious threat. They could even treat her a little like a media darling, because of the fact there was a female Republican pursuing the ticket. That was an interesting novelty as long as she wasn't a serious threat.

The only way to test my thesis is to apply it only to female candidates who have actually had the nomination for national office. Enter Sarah Palin. Palin was literally butchered by the mainstream media by every measure. The thought of Palin as Vice President provided nightmares to the left and to the media that largely supports a liberal agenda. Attention women and minorities, if you are serious about national office, you better be prepared to worship at the alter that "got you there." Other wise, we better be prepared to change the way the media looks at women and minorities.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Sheila Jackson Lee's Lust for the Microphone finds her Singing Jackson's Praises

Let me preface this with a disclaimer. I've dealt with Sheila Jackson-Lee before and neither one of us count the other as "friends." Several years ago I served on a panel in a televised debate in which three conservatives faced off against three liberals on how to solve poverty problems. The only person I remember on the other side was Congresswoman Sheila Jackson-Lee (at least I can call her memorable). Over the years I have participated in a huge number of debates and other forums, but this was one of the most interesting. I got to call one of the most liberal Members of Congress that she was a "poverty pimp" to her face. I doubt I will ever forget the look on her face. Sheila Jackson Lee is one of many liberal politicians who survive off of poverty. If her constituents some how became wealthy, they would throw her out of office at their earliest opportunity. This is because her high tax and big government worldview is fundamentally opposed to the idea of wealth creation. We are not members of a "mutual appreciation" society.

In addition to this, Lee has a reputation as being one of the most dangerous people in the country when it comes to standing between her and a microphone. I watched very little of the Michael Jackson "lovefest," the few minutes I was on, there was Jackson-Lee. Knowing the casket was probably feet away, they might want to begin questioning her as a suspect. I wouldn't say should would knock off "the gloved one" to be able to have such a large platform, on the other hand, she might.

What she said at the event was odd, even by Sheila Jackson-Lee standards. It fact, it was even a little odd for an event that may go down as one of the most bizarre in recent history. Michelle Malkin pointed out in her blog that "Democrat Rep. Sheila Jackson-Lee just pimped the stupidest House resolution ever on stage at the Jacko memorial at Staples Center. She held up a big, framed copy of it as the crowd cheered. That was after she extolled 'The King,' painted him as the world’s greatest humanitarian, and demagogues the child molestation cases by proclaiming that members of Congress “understand the Constitution” and “we understand laws” and we know that “people are INNOCENT UNTIL PROVEN OTHERWISE!” Yes, she did. Right there in front of Jacko’s three children." That resolution was to honor Michael Jackson (read the strange document here). Malkin goes on to ask "Who paid for Jackson-Lee’s flight to L.A.?" Knowing Jackson-Lee, this "important resolution" and "Congressional business" justified the taxpayer expense in her mind. With representatives like Sheila Jackson-Lee, no wonder our nation is in such a mess.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Mr. Franken Gets Lost in Washington

I found it more than funny seeing Sen. Harry Reid guide newly elected Senator Al Franken to the podium to discuss his priorities as he takes his office. Franken, with that Saturday Night Live smile and "gee golly" expression, was memorable. One of his opponents will use this when, or if, Franken runs for reelection.

Franken has completely out done himself by becoming the US Senator from Minnesota. In spite of the fact that many are crying that he has stolen his way into this elite club, Franken is in and Washington will be watching closely.

I worked in DC for many years, first as an aide to US Senator Gordon Humphrey (R-NH) and later with several think tanks and political organizations. I also was a friend with members of the US House. Members in that "lower chamber" are noted for their rough and tumble antics, propensity towards individuality, and constant fight to be recognized. The US Senate is the exact opposite. That organization is very much like a prestigious club, designed for the "best and the brightest" from each state. Compared to the US Senate, the House of Representatives is like Animal House.

Animal House, the famous movie developed by many of the people behind Saturday Night Live, would likely be a great place for Franken, since that program made him famous. He could even pull gags on his colleagues and be voted most popular, at least on the Democrat side of the aisle. This is not the case with the US Senate. You could see the look of anxiety on Harry Reid's face as they walked up to the microphone. The Majority Leader appeared to be holding his breath. There is this simple belief that, with many states literally electing dozens to US House seats based on their population, there is something special about the US Senate. Al Franken challenges that conventional wisdom.

Besides having among the most extreme views in the Senate (he may proved to be to the left of socialist Bernie Sanders), he has some of the most unusual behavior. He speaks his mind when and how he wants, regardless of how inappropriate it may be. It will be fascinating to see what kind of committees he ends up being on. A few likely possibilities are Veterans Affairs, Small Business and Entrepreneurship, Indian Affairs, and the Joint Committee on the Library. They are going to try to put him in a place to minimize his air time and minimize the damage, he would likely place on his Democratic colleagues. On the other hand, it is the Democrats, so he could end up in the most important Committee assignments. We will have to see. Franken isn't leaving entertainment, he is just laying the groundwork for his next movie, "Mr. Franken Gets Lost in Washington."

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Alan Bersin, "Border Czar"

"Border Czar." It sounds like the title of a movie about the cold war, but it is the informal title given to Alan Bersin, Assistant Secretary for International Affairs and Special Representative for Border Affairs. What a title and what a job. Immigration issues, especially between the US and Mexico, have been a hot topic for years. Under George W. Bush, many Americans were angered over what many would call a "non-position" on the topic. We needed to make many illegals, "legal," we were told, or we would have economic ruin. This policy was accompanied with certain legal hurdles for those who were illegals that were inadequate to those of a more conservative inclination and too demanding to those with liberal leanings. The man at the center of this storm for Obama is Bersin.

Like most members of the Obama Administration, Bersin is a typical "over achiever." He was born and raised in Brooklyn, New York, attending both the city's public and Hebrew schools. He went on to attend Harvard, where he received a Bachelor's degree in government, he became a Rhodes Scholar and studied at Oxford, and then went on to receive a law degree at Yale Law School. His career experiences include Superintendent of the San Diego school system, California's Secretary of Education, Federal Assistant United States Attorney (AUSA) and United States Attorney for the United States District Court for the Southern District of California, and Bill Clinton's former Attorney General’s Southwest Border Representative. In other words, he was the nation's first "Border Czar," before the phrase became popular.

As the Border Czar, Bersin is called to enforce Obama's immigration policies. These polices are becoming hard to track. The Washington Times notes that "On the thorniest of political issues, President Obama has embraced the enforcement-first position on immigration that he criticized during last year's presidential campaign, and he now says he can't move forward with the type of comprehensive bill he wants until voters are convinced that the borders can be enforced."

This position stands in stark contrast to candidate Obama's views in 2008. During that campaign he said "Senator McCain used to offer change on immigration. He was a champion of comprehensive reform, and I admired him for it. But when he was running for his party’s nomination, he walked away from that commitment and he’s said he wouldn’t even support his own legislation if it came up for a vote." Now we see, Obama won't support it either."

The bottom line is that Obama has created a position that is difficult to defend, because it is shifting. The popular consensus is that the US needs a policy that enforces the borders with guards authorized to defend our nation and the necessary technology to keep them secure, require cities and states to respect and enforce the laws of the land when it comes to immigrants, and develops a practical approach for those who want to contribute to the economy to be here legally, but still protects US sovereignty.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Sarah Palin's Odd Move

Alaska Governor Sarah Palin shocked the political world by deciding to resign from office by the end of July. The blogosphere is making assessments about her decision based on their opinions of her. If they like her, it is some how "brilliant." If they don't, she is a "complete moron." I want to take this a little deeper.

For disclosure sake, I'm a fan of Gov. Palin. She is the first major political candidate to fully embrace and epitomize Reagan's "3 legged stool" of limited government, pro family, and national security since the Gipper himself. Furthermore, she is the only candidate in years who seems to understand the morality of economics. In fact, in her resignation speech she mentioned that the stimulus package was "immoral" because of its redistributive nature and control it placed on the states. You simply don't hear that from politicians today, but that message is desperately needed.

Now, with that disclosure, I simply don't understand her decision at all. I read her speech several times and watched it as well, and the more I studied it, the less I "got it." With the information I have before us today, I have to come to one of the following conclusions:

• She couldn't stand the heat of constant scrutiny on the family and her and simply needed to get out. This may be noble, but it likely spells the end of a powerful political career. Furthermore, if they can't handle the governorship, they certainly can't handle the White House or even the Senate, where they would deal with the constant questions by the much larger and more hostile cadre of journalists in DC. Than again, she could take a decade off and have her kids much older and she would certainly be young enough to run. She could rightly hope they will forget her resignation, but they will also likely forget her.


• A much bigger scandal that will "stick" is about to come upon her. Palin has been plagued with scandals since August of 2008, about the time she received the GOP nod for VP. None of them have had any staying power and they all appear to be trumped up to discredit her. You get the sense with this announcement, that "the other shoe" is going to drop and it is going to be big.


• She wants a fresh start. Tired of getting exonerated of one scandal to make room for another, she might think this is the best way to create a new beginning. She will be free to travel the country and make large amounts of money as a speaker, accumulate the financial largess to run for higher office and build a name around the country. Barack Obama and George W. Bush were the only Presidential candidates since John F. Kennedy to have a full time job while running for President and get elected. Furthermore, Reagan, Carter, and Clinton were former governors when they ran, making it a great springboard for office. The difference between Palin and these others, were the circumstances of which she left.
  

My concern is that no woman or minority is going to have a prayer dealing with the mainstream media if they are Conservative. The left tries to place these groups on a plantation, stating they would have nothing without liberal policies. This is a very narrow view indeed, but those who break it will suffer.

The jury will be deliberating on this for quite some time. However, she is going to have a difficult time distancing herself from accusations of being unable to finish things, or being scandal plagued, or not tough enough, or several other things that will do nothing to help her case as a GOP front runner.

See Kevin Price's new video commentary on the subject here.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

After Receiving 150 Year Sentence, Madoff Debates an Appeal

Bernie Madoff, the scam king of the decade, was sentenced to 150 years in prison and according to his attorney, Ira Sorkin, he is uncertain about whether or not he will appeal this sentence. Bernie Madoff’s lead attorney spoke to Fox Business Network and said that “we haven’t made the decision yet” to appeal and that Ruth Madoff’s settlement “took a long time to work out.”

In a coup for the Fox Business Network, Sorkin tackled some tough questions:

• On appealing Madoff's 150 year settlement: “We haven’t made that decision yet.”



• On the significant wait for Ruth Madoff to make a deal regarding the surrender of a majority of the assets: “We came to a settlement with the government that took a long time to work out. It was a compromise.”



• On the amount of money recovered following the $50 billion Ponzi scheme:“More than $1 to 2 billion has been recovered.”

The question many are asking, is why wouldn't he appeal, what is essentially is, a life sentence? It could be that Madoff's attempt to get a more lenient sentence of 12 years based on the average lifespan for a man his age, fell on deaf ears. It could be that that Madoff's wife was vulnerable to possible jail time herself and feels it may be time to simply catch their breath. There are also his sons, Mark and Andrew, who worked for their father's firm and have been pleading innocent since the story broke. Maybe, quietly going away for 150 years, will make it possible for this chapter to close for them.

Unfortunately for Madoff and his attorney, they do not have 150 years to make a decision. In fact, they have only ten days from the day he received his sentence and soon his time will be measured in hours.

For the time being, Sorkin is making the case that he and his client are involved in the recovery process. For example, in the Fox Business interview, Sorkin acknowledged that there are assets in other parts of the world, citing France specifically, stating “There are assets overseas, and as we said in court yesterday, we are assisting the government -- my firm and one of my partners -- in recovering assets that are located overseas, which the U.S. attorneys office cannot recover on their own."

I would guess that Madoff is going to pursue an appeal in order to keep the door for a lighter sentence open. After all, I assume he can always change his mind on the appeal if his attorney asks for it, but he cannot force the government to give him more time to choose to pursue such.

Hearing the sentiments of those who are his victims makes me think that prison may be the safest place he could possibly be. So many have been terribly and profoundly impacted by this scam master. I don't know if that reality will be as inspiring as the hope of living beyond his sentence.

Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.

Roger Ailes, Matt Egan, and the Changing Face of Cable News

Matt Egan is only 24, but he is already in a position that is well beyond his age. He is a news writer for FoxBusiness.com and has been in this role since 2007. Just a few years ago, Egan wasn't very sure what he wanted to do. He talks about an interview with Fox Business in a recent article in the New York Times: "Ray Hennessey, the director of business news, went to my college (the College of New Jersey), and also wrote for The Trenton Times. I kind of went to the interview not interested in business or TV, but I figured I’d give it a shot. And the interview was amazing. I was one of the first hires for the Web team." The old adage of "who you know" and the value of alumni relationships seemed to help the young Egan. However, I'm familiar with the standards of Fox Business and Fox News. Going to the same "old school" might get you noticed, but would not necessarily secure a career. Egan certainly had to bring his best game to the program.

Something that certainly helped Egan is the Roger Ailes Apprentice Program. In an article in Multichannel News, "Fox News Channel has quietly sought to increase its minority employee base through an apprentice program spearheaded by the network's most senior executives... CEO Roger Ailes created the network's Apprenticeship Program in 2003 in an effort to provide minorities at entry-level positions with an opportunity to gain valuable behind-the-scenes experience working at a cable network that otherwise wouldn't be available to them."

Essentially, Ailes doesn't believe that young people who are minorities are not getting enough opportunity to learn about this important industry. He wants to fast track opportunities for these often neglected groups. Ailes is quoted as saying “I didn't think enough minorities were getting access to the system,” Ailes said (Fox News Channel employee base is nearly 20% minority). “If there aren't a lot of people they know inside, then they don't necessarily have the same access as others.”

Since 2003, 20 young people have gone through this unique mentoring program and by 2008, over $900,000 had been spent on it. The senior executives who nominate young people for the program, often fresh out of college, go on to actually mentor the students they recommended if selected.

The program has certainly fast tracked Matt Egan's career. Although he seems very comfortable in his job today, he noted in the Times interview being challenged early on, "Getting beyond the businessy terms: derivatives. Mutual funds. Futures. Options contracts. I had no idea about the stock market. I wish I had taken business classes. I bought a business textbook ahead of time. I read that, and started reading The Wall Street Journal every day. We had a month and a half to prep." Even today, it isn't always smooth sailing, noting that his big problems today relate to "Keeping my cool. The stock market tends not to cooperate a lot. If the Dow’s up 100 points because an economic report came out, I’ve got to go back and change what I’ve just written."

Fox News and Fox Business have developed an innovative approach to acclaimating young people to the news industry that has, in my opinion, further positioned the networks as the industry leaders.



Kevin Price is Host of the Price of Business, the longest running show on AM 650 (M-F at 11 am) in Houston, Texas and on AOL Radio. His articles often appear in Chicago Sun Times, Reuters, USA Today, and other national media. Steve Moore of the Wall Street Journal calls Price the “best business talk show host in the country.” Find out why and visit his blog at www.BizPlusBlog.com and his show site at www.PriceofBusiness.com. You can also find Price on Strategy Room at FoxNews.com.