Stock Market Falls 634.76 Points--Tea Party Plays a Big Part in the Drop

Stock Market Has Biggest Drop in a Single Day Since 2008 

The Dow Jones Average closed today almost 635 points lower than it did Friday, greatly influenced by S&P's downgrade of the US credit rating Friday.  Thanks to the Tea Party's intransigent stand on attacking Social Security and Medicare, the deal on raising the debt ceiling came down to the wire and was signed into law on the last possible day before default.  Ham on Wry cautions readers not to blame President Obama for this financial debacle and asks them to remember that he asked for a budget deficit plan of at least four trillion dollars in reductions.  This can be laid squarely at the feet of the Tea Party members of the Republican Party, and readers should remember that at the polls next year.  This situation occurred when voters "threw the baby out with the bath water" and elected members of Congress who have no idea of what they're doing.

Wall Street Traders React to Market Decline





Several ramifications exist for this country's citizens, but probably the most widespread impact will occur in the housing sector because the S&P downgraded the credit ratings of Fannie Mae and Freddie Mac this morning.  Together, they back about 50% of US mortgages.  In essence, S&P is stating a lowered level of confidence in these two institutions, which can be compared to lowering an individual's credit rating.  Both result in higher costs of borrowing.  For those with Home Equity Lines of Credit (HELOC) tied to fed rates, you can breathe a sigh of relief.  The Fed meets Tuesday and has already pledged to keep rates low.  HELOCs tied to treasuries are more volatile.  Other types of consumer loans that aren't tied to fed funds shouldn't be adversely affected.  For example, credit card rates are usually tied to the prime rate set by the Fed, so little change should occur.

Congress now faces a mammoth task, if the US is to regain its AAA credit rating in a short time.  A committee of six Republicans and six Democrats has been charged with the task of finding a means of reducing the deficit by $2.1 trillion as part of the compromise enacted into law.  Partisanship should play absolutely no part in these negotiations.  In fact, this group will best serve the nation by finding a mix of expenditures to cut and ways to raise revenue, the first of which should be higher income tax rates on wealthy individuals.  Ham on Wry has grown weary of the rhetoric that proclaims higher taxes mean job cuts.  Wealthy individuals have had low tax rates since the Bush tax cuts and jobs have steadily declined.  The time to deal with reality has long passed.  Just do it!

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Shabab Islamists Rebels Depart Mogadishu

                                                Mother holds starving child in Mogadishu

As Somalis cheered in the streets of Mogadishu Saturday night, Islamist Shabab rebels left by the truckload, finally opening the door for aid to the famine-stricken city in a region plagued for years by lack of adequate food.  The rebel group prevented relief groups from distributing food and water to the starving population, preferring to watch them die rather than receive help from foreign nations.   More than 100,000 famine victims are waiting for help.  UN officials estimate tens of thousands have already died and almost four million people, of which half a million  are children, will die if they don't receive nourishment soon.

A starving child waits for food in a Mogadishu Camp

Al-Shabab's departure came as a surprise to the Somali government.  Abdiweli Mohamed Ali, Somalia’s new, Harvard-educated prime minister, told reporters that Somalia had been waiting for this opportunity for three years.  Guardian.co.uk stated that "Somali government soldiers and African Union(AU) peacekeepers have moved tentatively to secure former rebel-held areas in Mogadishu, a day after al-Shabaab insurgents announced a retreat from the city."  They faced little resistance as they entered the city, so the government views that as an encouraging sign.  Some analysts attribute the rebels' retreat as a sign of increasing division in the ranks of the Islamist groups related to their blocking aid to their starving fellow citizens of Somali.  Whatever the reason, Ham on Wry celebrates the news.

Now, the hard work can begin in earnest in Mogadishu.  But readers must bear in mind that the rebels still occupy most of southern Somalia.  Al-Shabab rebels operate from a particularly cruel mindset and could prevent people in other regions from receiving aid.  The world is reeling from bad economic news; however, when one sees the pictures included in this blog and others from various news outlets, it puts economic woes in perspective.  Every reader with a computer can help the situation in Somalia with one click on, and even more by buying products from,  www.thehungersite.com.  Ham on Wry urges everyone who reads this blog to do so.  A small act multiplied by hundreds or thousands makes a huge difference.

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Ham on Wry Award-The House and the Senate's Ineptitude

Representative John Boehner with President Obama

Senator Harry Reid

Ham on Wry blasts both the House of Representatives and the Senate for different reasons this week, but please note that the House Republicans deserve the wrath of the American public for stretching the debate about raising the debt ceiling far more than the Democratic Senators, who allowed a two-week shutdown of the FAA because they wanted to preserve funding to regional airports.  More specifically, Ham on Wry considers the Tea Party wing of the Republican Party the most heinous culprits in the protracted negotiations to allow the country to handle its financial obligations by raising the debt ceiling.  In the end, Tea Party representatives' machinations came to naught, because Medicare and Social Security were spared for the moment.

Taking the United States down to the wire the last day before default, shows massive ignorance on the part of those who didn't understand the implications of their actions.  Moody's did not lower the country's AAA rating, but it did cite a negative outlook, which might signal an eventual downgrade.  In addition, skittishness developed in foreign markets as a result of the potential debacle in the US and contributed to this week's precipitous drop in the stock market here.  Yesterday, the market spiraled downward to hit its lowest value since 2008.

The Senators who refused to budge on FAA funding caused a loss of $400 million in taxes to the federal government.  However, that amounts to an almost infinitesimal portion of the damage done by the House.  Last evening, lawmakers reached a bipartisan agreement on a bill that President Obama signed today.  Whew!  At least that issue won't dominate the news for months.

American voters should have learned a valuable lesson in watching Congress in action this session. Take an interest in learning about the people you vote into office. Next year, representatives are up for re-election. Make certain to peruse their voting record, which you can do online or with the help of a local librarian. Pay little attention to ads that come from sources other than the candidates or the party to which they belong, and view even those with skepticism.  This takes work, but it's one of the most important responsibilities you have as a citizen. Shame on the members of Congress who gave us so much angst! Shame on us, if we allow this to continue!

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Bubba Smith Dies at 66

Bubba Smith, pictured above in his role as Moses Hightower in the Police Academy movies died yesterday.  No cause of death has yet been determined, but investigators found no evidence of foul play.  Ham on Wry mourns his loss along with the millions of football fans who followed his pro career, as well as movie fans who followed his acting career.  Smith also starred in Miller Lite commercials with another former pro football player, Dick Butkus.  Although Alex Karras didn't appear in those commercials, the three formed a formidable trio of friends.

Bubba played football at Michigan State University, where I met him at a party.  At 6'7", he was a foot taller than I, and when he shook my hand, his hand engulfed mine, making it look like a small child's.  Smith was well regarded by his teammates and a powerful defensive player who was quicker than one would expect from such a large man  When he took the field, the Michigan State fans chanted, "Kill Bubba, Kill!", which always sent the crowd into a frenzy. 

Many readers might not know about his exploits as a football start, but he is worth investigating.  He made helping others his focus after leaving football and is remembered fondly by director Guy Magar, who states, "He was a special soul, a gentle giant, as kind and caring on the film set as he was feared and terrifying to every quarterback that ever faced him on the gridiron" (quote from Los Angeles Times story).  Ham on Wry bids farewell to a hero both on and off  the field. 

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Actor Matt Damon Speaks Out on Teacher Tenure

Matt Damon gave a keynote address Saturday, July 30th, at the Save Our Schools Rally in Washington DC, which he attended with his mother, a Boston child development specialist.  He attained instant folk hero status with American educators as a result not only of his speech, but also because he excoriated a journalist from Reason.TV.   She theorized that teachers lack incentive to work hard under a tenure system.  She continued, "In acting, there isn't job security, right? There's incentive to work hard and be a better actor because you want to have a job, so why isn't it like that for teachers?"

With no hesitation, Damon responded as quoted in ThirdAge.com, "So you think job insecurity is what makes me work hard? I want to be an actor. That’s not an incentive. That’s the thing. See, you take this MBA-style thinking, right? It’s the problem with ed policy right now, this intrinsically paternalistic view of problems that are much more complex than that. It’s like saying a teacher is going to get lazy when they have tenure. A teacher wants to teach. I mean, why else would you take a sh***y salary and really long hours and do that job unless you really love to do it?"  Right on, Matt!  Ham on Wry also notes that teacher incentives, if ever offered, would only amount to a fraction of the incentive offered in major businesses.

Ham on Wry enthusiastically supports Damon's response.  Its author worked in public education for several years and can attest to the fact that one must love teaching to choose that profession.  People seem to think that because they attended a public school, they understand all there is to know about American education.  Wrong!  The US is the only country in the world that guarantees a free public school education that comprises 12 or 13 years, depending on whether kindergarten is offered at no charge.  Ham on Wry believes that every naysayer should visit a classroom in a public school for a month and then see how they feel about the workload. 

Teachers may have contractual hours and a two-and-half-month summer vacation, but they earn that several times over.  Teachers pay taxes, some of which are earmarked for teacher salaries.  Not many professionals actually contribute to their own salaries.  The journalist from Reason.TV came across as smug in her questioning, so Ham on Wry would order her into the classroom for a semester, if it had the power.  When taxes dictate the amount a school district can pay teachers, the only way to add attractive incentive pay is to raise taxes.  That has little chance of ever bringing significant money to the table.  Further, does the American public actually want people in the classroom who value money over motivating students to learn?  Reason.TV erred in choosing that reporter to attend the march.  She has much to learn about the value.of positively affecting the lives of students.  Admit it, executives of Reason.TV!  That journalist's leading question is unforgivable in reporting the news.   

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Gabrielle Giffords, the Shining Light in House Vote on Debt Ceiling



Gabrielle Giffords returned to Washington yesterday for one reason only: to cast her vote for the bill to raise the debt ceiling.  The entire assembly burst into enthusiastic applause when she entered the chamber.  Few representatives knew she would appear, and surprise was evident when they saw her.  Despite her arduous road to recovery, Giffords felt that her constituency needed her to vote on the measure, and she expressed serious concern about what would happen to the country if the bill failed.  Her office released a statement in which she said: "I had to be here for this vote. I could not take the chance that my absence could crash our economy." The bill passed 269-161, making her journey all the more note worthy because passage occurred with a large margin..

For the first time since all of the bickering and infighting started in the House of Representatives over what the bill would contain, the members experienced unanimity in showing emotion and joy in Giffords return.  Ham on Wry wishes that the harmony would continue in future dealings over reducing the federal budget deficit, but that dream will not come true.  The standing ovation that Representative Giffords received will soon fade from memory, and the acrimony will commence yet again.

Ham on Wry fervently hopes that Congresswoman Giffords' recuperation progresses successfully, so that she can resume her duties full time.  She returned to Houston to continue her therapy and has not yet decided whether she will run next year.  If her condition doesn't allow her to run or she simply chooses not to, Arizona will lose a true heroine.  Giffords faced an uncertain recovery with grace, courage, and dignity and serves as a symbol of the kind of attitude and determination missing in so many members of the House.  They act in a self-serving manner with little regard for the country's best interests.  Although Moody's retained its Triple A rating for the country, US financial status teeters.  In all of this turmoil, let us remember Gabrielle Giffords selfless behavior and demand more from the childish politicians who behave like spoiled brats.

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The Case for a Twenty-Eighth Amendment to the Constitution

Ham on Wry's author has received several versions of an e-mail calling for an amendment to the constitution that will place several restrictions on members of Congress and has long believed an amendment would correct some of the grave ills that occur when an elected Senator or Representative spends a lifetime in Congress.  That said, Ham on Wry warns against leaping to action without applying extensive research and reflection in crafting a new amendment.

Given the current mood of a majority of Americans, Ham on Wry suggests that a proposed 28th amendment focus soley on imposing term limits on all members of Congress, beginning after the amendment has passed during the year it is adopted.  For the sake of clarity, readers will find the latest version of the e-mail Congressional Reform below with comments that follow.

"The 26th amendment (granting the right to vote for 18-year-olds) took only 3 months & 8 days to be ratified!  Why?  Simple!  The people  demanded it.  That was in 1971...before computers, e-mail, cell phones, etc.

Of  the 27 amendments to the Constitution, seven (7) took 1 year or less to become the law of the  land...all because of public pressure.

I'm asking each addressee to forward this email to a minimum of twenty people on their address list;  in turn ask each of those to do likewise.

In three days, most people in The  United States of America  will have the message.  This is one idea that really should be passed around.

Congressional Reform Act of  2011   
1.   No Tenure / No Pension.
A  Congressman collects a salary while in office and receives no pay when they are out of office.
2.   Congress (past, present & future) participates in Social Security.
All funds in the Congressional retirement fund move to the Social Security system immediately.  All  future funds flow into the Social Security system, and Congress participates with the American people.  It may not be used for any other purpose.
3. Congress can purchase their own retirement plan, just as all Americans do.
4. Congress will no longer vote themselves a pay raise.  Congressional pay will rise by the lower of CPI or 3%.
5. Congress loses their current health care system and participates in the same health care system as the American people.
6. Congress must equally abide by all laws they impose on the American people.

7. All contracts with past and present Congressmen are void effective 1/1/12.  The American people did not make this contract with Congressmen.  Congressmen made all these contracts for themselves.   Serving in Congress is an honor, not a career.  The  Founding Fathers envisioned citizen legislators, so ours should serve their term(s), then go home and back to work.

If each person contacts a minimum of twenty people then it will only take three days for most people (in the U.S.) to receive the message.  Maybe it is time.

THIS IS HOW YOU FIX CONGRESS!!!!!

If  you agree with the above, pass it on.   If not, just delete.  You are one of my 20+.  Please keep it going."

Many readers have probably received a similar e-mail in the past month.  On first reading, it seems that everything makes sense, until you apply a fact test.  Number two calls for all members of Congress to participate in Social Security; however, they have done so since 1983.  Number five suggests that Congress lose its current health care plan, but Senators and Representatives choose from the same array of health care options offered to all federal employees.  The other ideas have merit, so why does Ham on Wry want the 28th Amendment to deal only with term limits?

The answer relates to the 22nd Amendment, which states that the President of the United States shall serve no more than two terms in office.  No logical reason exists for our Commander-in-Chief to serve a maximum of eight years, while members of Congress have no such restriction.  Certainly no one can defend that disparity by saying that the duties of Congress surpass those of the President in complexity.  Given that our President has limits, it makes sense to impose the same type of limits on Congress.  When an amendment attempts to cover too much ground, as the ideas in the e-mail, it reduces the chances of its passage. 

Determining how many total years member of Congress can serve proves difficult because all representatives serve two-year terms and all are up for re-election in even-numbered years  (pay attention readers, because next year voters can show disapproval for the House of Representatives in the recent debt-ceiling negotiations).  Senators are elected for six-year terms, except under special circumstances, such as when a Senator leaves office before the end of a term.  Ham on Wry suggests that members of Congress serve no more than twelve years.  This would eliminate pork barrel legislation, undue influence of lobbyists, losing touch with the real world, etc.  Citizens can petition for a new amendment, and now is the time to do it, while the ridiculous finagling that occurred in debt reduction debates still stirs strong emotions.  This blog encourages comments and welcomes readers' ideas.  Bring it on and let's get it done!

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