Free Republic

The US economy has been generating strong economic growth over the past few years as it has come out of recession. After growing at more than 3% a year in 2004 and 2005, the pace picked up to a blistering 5.6% annual rate in the first quarter of this year - although the pace has since then slipped back to 2.9%. So far, though, little of that growth has translated into the hands of the average worker, according to new research from the Economic Policy Institute (EPI). Click here for a graph of wages vs. productivity For real household incomes,...

<p>The Rudman Report on Fannie Mae recites facts eerily similar to what we now know about Enron. According to the report, the CFO of Fannie misled the board (and possibly the CEO) about the financial position of the company. The CEO, head of the corporate governance committee of the powerful Business Roundtable, regularly misled Wall Street and the board, but may not have understood the accounting. The auditors (this time not Arthur Andersen) failed to stand up to the management or didn't understand what was happening. The board, primarily made up of independent directors, and the audit committee, made up entirely of independent directors, were unable to penetrate the scam and remained clueless as earnings were manipulated. In Fannie's case there was also a regulator, but the regulator did not begin to look into any problems until it had been surprised by similar wrongdoing at Fannie's smaller sibling, Freddie Mac.</p>

LOS ANGELES — Back during the '70s recession I was a real estate expert with Morgan Stanley. We helped banks and REITs work out billions of loser portfolios, reorganize, file bankruptcy, even advised the U.S. Dept of Housing & Urban Development on the collapsed Federal New Towns program. I've worked for developers and mortgage bankers, got degrees in architecture and city planning, taught commercial real estate at Cornell University. But oddly, like the rest of America, most of the time I don't think about the housing bubble that's about to pop. We ignore the coming storm.

According to a Wall Street Journal/NBC poll, 54 percent of Americans think President Bush values party loyalty and personal friendship over competence. The poll was prompted, as if you didn’t know, by Bush’s habit of appointing friends and retainers to major jobs in his administration. Some of these seem qualified enough: Condi Rice, Alberto Gonzales. Others seem more questionable, none more so than Michael Brown and Harriet Miers. In one sense this is nothing new for Bush. From the start, his administration was marked by a web of family connections, and certain members of the press were quick to cry...

“I would like you [of the press] to understand the magnitude of what this means. It is transcendent, it’s something that goes well beyond the relationship we have had up to now.” —President Vicente Fox, regarding NAFTA Plus, onboard the presidential plane returning to Mexico from George W. Bush’s Crawford ranch, March 2005. NAFTA (North American Free Trade Agreement) has been in effect almost 12 years and a new stage, NAFTA Plus, is in the works, referred to as “deep integration,” particularly in Canada. The elites of the three NAFTA countries (Canada, the United States, and Mexico) have been aggressively...