OC Blog

OC/DC: Not Ready for Sub-Prime Time

Today's financial media was busy reporting the news about Irvine-based New Century Financial and rumors, analyst predictions and Wall Street buzz that they will likely go BK in the next few days.  While we do not know for sure, it is clear that the company's challenges will reverberate through the Orange County economy and job market and also through the halls of Congress.

In Washington, House Financial Services Chairman Barney Frank has long held views critical of one of New Century's business lines: sub prime mortgages.  (Fullerton GOP Rep. Ed Royce and Irvine Rep. John Campbell are both members of this committee).  These mortgages, made to lenders with less than "good" credit are called both non-prime and sub-prime, depending on the lender involved.  Either way, the transaction typically involves a lender easing traditional mortgage qualification standards in exchange for a rate as much as 2-3 points higher than a typical applicant with good income and credit history.  The numbers work as long as a certain percentage of lenders continue making payments.  It seems from early reports, New Century has a higher than normal percantage approach default.

Webb vs. Bush, Round 2

In reading about the OC GOP's sour outlook on POW hero and media sensation John McCain (I echo the same sentiment), I wonder if he will eventually enter the '08 presidential race at all. He has been slipping because of his support for the upcoming surge in Iraq. On the other hand, James Webb is a fast-rising superstar for the Democrats.

The Dems finally got a real warrior in Webb, not a three-month combat tour vet/career politician like John Kerry "whose handshake he refused for twenty years." Webb was one of the most decorated if not the most-decorated (Navy Cross, Silver Star, two Bronze Stars, two Purple Hearts) Marine officer in Vietnam and was medically discharged for his war injuries. This is an excerpt from the 10/30/06 issue of The New Yorker on how Webb got into politics during the early Reagan years. It's classic Webb.

Webb, who had been a nominal Democrat in his youth, knew this from personal experience. According to Robert Timberg’s book “The Nightingale’s Song,” Webb was recruited into the Reagan Administration by a Republican official who had once heard him being interviewed on the radio. The interviewer, talking to Webb about “Fields of Fire,” mentioned that Jane Fonda was in town and asked Webb whether he might wish to meet her. “Jane Fonda can kiss my ass,” Webb replied. “I wouldn’t go across the street to watch her slit her wrist.” The Republican official, John Herrington, who later became Reagan’s personnel chief, championed Webb’s appointment, in 1984, as Reagan’s Assistant Secretary of Defense for Reserve Affairs and, in 1987, as Secretary of the Navy.

Sen. Webb has been tapped to deliver the Democratic response to the State of the Union address next Tuesday night. Last year it was the newly-elected Virginia Governor Tim Kaine who spoke. How does a puny state like Virginia pull so much weight with the DNC? In comparison, our pathetic Barbara Boxer wrote a political novel last year and delivered a low blow last week to Condi Rice about not having a "personal price" to pay in Iraq. It's not like  Boxer's kids or grandchildren are saddling up for the Al Anbar Province like Webb's son Jimmy!

A few weeks after the November election, Webb had a nasty private exchange with the President during a reception at the White House. That was widely covered, including in tomorrow's WaPo, and nicely summarized at Larry Sabato's blog.

Webb would pack a powerful punch as VEEP on somebody's ticket although it would be premature for him to leave Senate to run a national race. But I would not be surprised at anything he does. As a final note, Webb still believes the worthiness of fighting in Vietnam (as opposed to Iraq) when I spoke to him shortly after his slim margin of victory over George "Macaca" Allen was final.

OC/DC: What A Democrat-Led Congress Means for OC and California - Part Two

In part two of a three part series, we continue our look at what House Committees would look like under a Democrat Congress, a prospect some political watchers see as increasingly likely. (Note: this report was sparked by a recent column in Capitol Hill newspaper Roll Call where noted political analyst Stuart Rothenberg reported that according to his numbers the 15-20 key races will likely lean Democrat on Election Day. This series simply takes a look at that possibility).

Under a new leadership team in Congress, and under a new party, Orange County’s Congressional Delegation and its Republican Members will loose key leadership posts, while Democrat(s) would move to positions of authority. Further, in key committee spots, California Democrats would gain new positions of leadership posing a challenge for lobbying interests, local government, corporations and trade groups with interests in Orange County as they work to reestablish new relationships with what could be new leaders in Congress potentially unfamiliar with local funding, appropriations, and legislative requests previously handled by their Republican counterparts.

Part One covered the A-H committees, below is the second group:

House Administration
Current Chairman:  n/a
Possible Dem. Chairman: Juanita Millender-McDonald (D-Los Angeles)

Congresswoman Millender McDonald is in her 6^th term and is a likely leader of this committee under new Democrat leadership. House Administration is the HR / Operations committee of the House assigning offices, managing facilities, and setting rules for so-called “Franked Mail” and internal management policies and operations. Until this week the committee was led by Republican Bob Ney (R-OH), who resigned his gavel after agreeing to a plea deal in the Abramoff lobbying scandal. Although not widely known outside DC, this committee can be influential and put its leader in a position of authority, as seen – unfortunately – with Ney. However, should the Democrats assume leadership of the House, it would put another Californian in a position of leadership.

OC/DC: What A Change In Congressional Leadership Means For OC and Beyond

Orange County is a hub of business, corporate, education, entertainment and tourism activity known around the world.  Likewise, Washington and its politicians and policymakers hand down decisions and distribute funds every day that directly impact life in Orange County.  Despite their equal prominence, Washington and the decisions made here do not receive the attention I believe they are due in Orange County. 

Orange County’s congressional delegation, lobbyists hired by OC-based companies and local government, and major corporations are all involved in activities in Washington.  Much of this activity goes unreported as it happens but nonetheless its end result will directly touch lives, jobs and quality of life in Orange County.

Red County is launching a new column, “OC/DC” – authored by my old friend and political veteran Jeff Solsby – that we hope will change that. Jeff will serve as Washington correspondent, from where he will share with you some news, some opinion, and some insights into the politics, the people and the processes that take place in DC -- and that will ultimately impact your family and mine in OC.  Enjoy!

--Jubal

Renowned political analyst Stuart Rothenberg recently wrote in Capitol Hill newspaper Roll Call that Democrats will gain 15-20 seats and gain control of the House of Representatives.  This wasn’t a joke; it was the work of one of Washington’s most respected political thinkers and analysts.

<>To readers in a Red County, this news may come as quite a shock – but Rothenberg is not the only one in Washington now discussing this scenario. 

And while many of us will be hoping for a different outcome, elected officials, business leaders and public policymakers – as well as taxpayers – throughout Orange County would likely feel the impact should the House of Representatives change hands in November and a new party take over for the first time in a decade.

California’s size and the depth of experience within our Congressional Delegation has given our home state innumerable advantages when it came to having a strong presence in Washington and bringing the bacon back home; it also put our elected officials in the highest levels of leadership.  County government, local government and businesses of all sizes benefited from having not just a strong Republican-led delegation, but also a slew of California and Orange County-based Republicans who sat in prominent positions on key committees and at the negotiating tables when major national and state issues are hashed-out.  Should these members loose their leadership seats, the names and faces will change -- and so too will the approach many in OC take when dealing with DC.

These changes would mean lobbyists working for county and local government agencies would have to rely on new contacts and that local government officials would have to establish relationships with an entirely new set of leaders such as having to re-educate a group of new committee members and staff that are perhaps not so well versed on local projects and local priorities.  Of the 21 major committees in the House of Representatives, excluding certain “joint” House-Senate Committees, 6 are led by California Republican Chairman – more than any other state.

In three installments, I’d like to paint a picture of how California’s Congressional Delegation will change should the Democrats regain control of the House of Representatives.  In each part, I’ll outline a group of House Committees and what a leadership change might mean in terms of issues and impact for Orange County.