Steve Fair Has It Right

USED TIRES AND MORTGAGES!
It’s forty-two days until November 4th- Election Day 2008. Because of the recent actions of Congress to bail out some publicly traded companies in the mortgage lending business, the spotlight in the race has shifted to the economy.
George W. Bush, Republicans and even Ronald Reagan are being blamed for the current bailout situation. But Congressman Barney Frank, D-Mass. And Senator Chris Dodd, D, Conn. Chair the respective committees responsible for the oversight and regulation of the industry and must bear some of the responsibility.
Back in 2005, a bill was presented in the Senate Banking committee that would have revamped Freddie Mac and Fannie Mae. It was voted down “along party lines” with the Dems opposing increased regulation. Many of the U.S. Senators who protected Fannie and Freddie, including Barrack Obama, Hillary Clinton and Mr. Dodd have received mind-boggling levels of financial support from them over the years.
Throughout his political career, Obama has gotten more than $125,000 in campaign contributions from employees and political action committees of Fannie Mae and Freddie Mac, second only to Dodd, the Senate Banking Committee chairman, who received more than $165,000.
And Mr. Frank said in 2002, shortly before accounting problems were exposed at both companies, ““I do not regard Fannie Mae and Freddie Mac as problems,” The Wall Street Journal reported after the Freddie Mac accounting scandal in 2003, Frank said, “I do not think we are facing any kind of a crisis.”
The industries that are in trouble- banking and home mortgage companies- are businesses that government has always highly regulated. Some criticize the free market system, but make no mistake these businesses did not operate in a pure free market.
Twenty years ago, if you got a mortgage, you had the option of meeting with your local banker, completing a loan application and then having the local bank loan you the money for your house. For all practical purposes, local banks got out of the mortgage market when government-guaranteed mortgage lenders entered the business, pooling trillions of dollars of mortgages based on a broad geographical base of loans from around the country. This was done in the name of asset diversification. It also cut out local monitoring and removed that personal touch from banking that defined the industry.
If you want a mortgage now, a statistician assesses the risk. Nobody is hired locally to monitor the loans and collect monthly payments. While the process sounds efficient, the reason we are in this mess is because the standards to qualify for a mortgage loan were lowered to a level that virtually anyone qualified. Mortgages became like used tires- someone always had a better deal.
If people continue to walk away from their homes and if new lenders are not found to fund replacement owners, America will experience hundreds of billions of dollars of property equity decline by the end of 2009. Local banks will likely be back in the mortgage business. There will be empty houses detorating and at some point, squatters and the weather will take over what were once nice homes. Ben Bernanke, the head of the Federal Reserve, expects “local” banks to step in and help solve the crisis. That solution will likely be houses for sale at “garage sale” prices with the difference in market value and sale price supplemented by taxpayer dollars.
Bailing out private industry- regulated or not- is not the function of government. And not all lawmakers are for throwing a lift vest to every sinking company. South Carolina U.S. Senator Jim DeMint who is the latest conservative lawmaker to publicly oppose the Treasury Department's estimated $700 billion Wall Street bailout, saying it could "make matters much worse by socializing an entire sector of the U.S. economy." "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," DeMint said. "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."
Fiscal issues should be discussed in this presidential race. The candidates have two very different records on fiscal matters. Senator Obama believes government is the solution but as proven by this crisis, more government regulation is not the answer. McCain is a true fiscal conservative. He wants to make the Bush tax cuts permanent, eliminate earmark spending and balance the federal budget. He has pledged to veto any bill with an earmark in it and “make the person responsible famous.” If it were your money- and it is- which plan makes the most sense?
Steve Fair is Chairman of the 4th District of the Oklahoma Republican Party. He can be reached by phone at 580.252.6284 or by email at okgop@aol.com. His blog is stevefair.blogspot.com.

Workers Comp Reform Is Needed

WORKERS COMP REFORM IS NEEDED!
Oklahoma Trial lawyers have come up with a clever way to contribute to political candidates. After an award settlement, they simply deduct some of the proceeds from their client’s award and write a check to an Oklahoma State Political Action Committee called Working Oklahomans Alliance. One lady said her attorney handed her a Working Oklahomans Alliance membership card "and told me I was a member. He had already subtracted it out of my check, so what was I to do?”

This practice is nothing new. Five years ago, The Oklahoman wrote about workers' compensation attorneys using donations from their clients to pad a fund that bankrolls liberal political causes and Democrat candidates. The donations were strictly voluntary, the attorneys claimed but their clients whose names appeared on the contribution cards said they felt pressured to do so, and others had no idea they had donated. This practice sounds a little like Stipe/Phipps/Mass/McMahan straw donor scheme. A though investigation should be pursued by the AG in Oklahoma, but don’t hold your breath. He may have come up with the scheme. Why are the lawyers so interested in keeping the Democrats in office?

The current Oklahoma's workers' compensation system is governed by the body of law found in Title 85 of the Oklahoma Statutes. This law provides for medical, indemnity and rehabilitation benefits to injured workers. Currently injured workers hire a lawyer to represent them before the Workers Compensation court.

The Oklahoma Workers' Compensation Court administers the Workers' Compensation Act. It is vested with jurisdiction to determine claims for compensation, the liability of employers and insurers, and any rights asserted under the Act. The Court's mission is to ensure fair and timely procedures for the informal and formal resolution of disputes and identify issues involving work-related injuries.
The Court is comprised of ten judges appointed by the Governor from nominees, including the incumbent judge, if any, presented by the Judicial Nominating Commission. Judges serve staggered six-year terms. A judge may be appointed to successive terms. A Presiding Judge is appointed by the Governor from among the Court's judges to serve a two-year term. Awards of the Court are final and conclusive unless appealed to a panel of three Workers' Compensation Court judges unrelated to the case, or directly to the Supreme Court. An order of the three-judge panel may be appealed to the Supreme Court.
The chief administrative officer of the court is an Administrator who, until 2005, was appointed by the Presiding Judge from a list submitted by a five-member selection committee. Thereafter, a vacancy in the position is subject to gubernatorial appointment for a six-year term. The Administrator supervises all departments of the Court. Departments include Docketing, Order Writing, Data Processing, Records, Medical Services, Insurance, Counselors, Form 3 Processing, and the Court Clerk's Office.
Because Oklahoma is one of only two states still settling workers comp disputes before court, Republicans in the State Legislature have worked for decades to reform the system. Senator Jim Williamson, R-Tulsa, introduced a bill that would have required the State Senate confirm those nominated to the court by the Governor. The bill sailed through the State House, but hit a snag in the Senate.

In April of this year, because the Senate was tied at 24, Lt. Gov. Jari Askins broke the tie and helped Senate Democrats block consideration of Williamson’s bill. This highlights once again the importance of the 2008 election cycle for both Republicans and Democrats. The tie will likely change the Senate in November- ether back to the Democrats control or the Republicans will control the Senate for the first time in state history.

According to State GOP Chairman Gary Jones, "the Workers Comp Court is currently set up just the way Brad Henry likes it: stacked with anti-business pro-trial lawyer judges." Williamson's amendment would've brought balance and fairness by requiring Senate confirmation of the judges appointed to this critical court in Oklahoma, but unfortunately Lt. Gov. Askins and Gov. Henry have once again shown their true colors by putting the interests of trial lawyers ahead of the interests of everyday Oklahoma taxpayers," concluded Jones.
Texas enacted workers’ compensation reform in 2005. The bill addressed specific problems in the Texas workers' comp system, namely, high medical costs, poor return-to-work outcomes, and the structure of the state agency charged with administering the system. HB 7 transferred the functions of the Texas Workers' Compensation Commission (TWCC) to the newly created Division of Workers' Compensation at the Texas Department of Insurance (TDI)

The idea of moving to an administrative board to settle worker comp disputes has been proposed in Oklahoma for years. But Republicans have met major resistance from the Trial Lawyer lobby. What’s really at stack is the future payoffs for Trial Lawyers. They are unwilling to give up the workers comp income stream. The Governor is on their side and will do everything in his power to keep the disputed claims in a court he stacks. The loser in those circumstances is the Oklahoma consumer, who will pay more for goods and services due to the higher premiums paid by Oklahoma businesses.

Steve Fair is Chairman of the Stephens County Republican Party. He can be reached by phone at 405.990.7449 or by email at okgop@aol.com. His blog is stevefair.blogspot.com

Steve Fair Wins Dinner For Two

Steve Fair guessed the correct name and age. He guessed Bobby Cleveland 14 yrs old. Congratulations to Steve from Duncan. He won a steak dinner for two to any major restaurant in Noble America. Kendell's Restaurant.
Bob