Tuesday, July 20, 2010

Letters From O.H. Bama

Dear Joe:

As my wing man and vice president of the entire U.S.A. (except for a few of those racist Red States), I got a request for you. Could you please shut your pie hole? Just when I thought you had learned to avoid microphones, you show up on television babbling about how the Democrats are going to shock the world by winning the mid-term elections. Are you taking political advice from Rod Blagojevich? Come on, Joe, help me here.

I tell you what would be a shocker: keeping your job after 2012. The only reason you've survived this long is because the first daughters enjoy watching you fetch their Frisbees on the White House lawn. But don't push your luck. First dog Bo has been practicing up and he's getting pretty good at it. And the girls don't have to water Bo's hair to make it grow.

Your latest blunder is one in a long string of verbal miscues. Your feet spend more time in your mouth than they do in your shoes. The First Lady thinks you should make one of those info-commercials for a new product. She suggests naming it Joe's Gaffe-O-Matic. It slices and dices sentences rendering every communication unintelligible.

In the event you think I'm being too harsh, consider some of these doozies you've uttered since we've been America's Top Duo. I've culled the list to include my personal Top Five gaffes:

1. "...the plan does nothing to tackle the number-one job facing the middle class. And it happens to be, as Barack says, a three-letter word: jobs. J-O-B-S. Jobs," on the campaign trail in Ohio.

2. "His mom lived in Long Island for ten years or so. God rest her soul. And, although, she's...wait, your mom's still alive. Your dad passed. God bless her soul!" consoling the Irish Prime Minister.

3. "If we do everything right, if we do it with absolute certainty, there's still a 30% chance we're going to get it wrong," at the annual House Democratic caucus.

4. "Jill and I had the great honor of standing on that stage, looking across at one of the great justices, Justice Stewart," referring to Justice John Paul Stevens.

5. "When the stock market crashed, Franklin D. Roosevelt got on the television and didn't just talk about it, you know, the princes of greed. He said, 'Look, here's what happened," in a CBS interview, apparently unaware that FDR wasn't president in 1929 and there were no television sets in American homes.

Well, I think you get my drift, Joe. This may be one of those teachable moments I'm so fond of. I have this theory that your gaffes may have been caused by a botched hair transplant surgery. One of those plug holes must have hit brain tissue. I'd get it checked out, if I were you.

Some in our party have suggested you go into hiding until after the next presidential election. Find some place no one ever goes. Locate a spot that even I don't know exists. Have you considered just hanging out in your office?

If that doesn't work out, then perhaps you could roam around the halls of some hospital. Stick your head into the rooms with really sick people. You never know. You could catch a sore throat and lose your voice. Wouldn't that be a lucky break for us?

Despite my admonitions, you have nothing to fear. I would never dump you from the ticket. I mean you really are good for me. Standing next to you, even I sound like I know what I'm talking about. That's good enough for me, Joe.

In fact, in your honor, I have an idea for next year's Earth Day celebration. I'll invite every child in America to come to the White House and plant a hair plug on the top of your head.

Tired of following behind you with a pooper scoop,

O.H. Bama

Sunday, July 18, 2010

What's Behind Antennagate

At first glance, the dust-up about the antenna issues surrounding the new IPhone 4 appears to be all about a serious design gaff on Apple's part. However, it really has more to do with the media and Google. The two have joined forces in an attempt to tar Apple's image. Meanwhile, a third ally, the federal government, may be about ready to jump into the breech.

This tidy drama began shortly after the introduction of the new smartphone. A few customers--no one knows the exact number--experienced signal issues which caused reception problems. At first, the blame was placed on a certain way consumers held the phone. Then accounts began circulating that the problems went deeper. After initially being hailed as a game-changing smartphone, The Four quickly became embroiled in controversey.

The media and the blog-a-sphere pounced. Press accounts painted a dire picture of Apple's antenna problems. Some suggested a product recall. Consumer Reports refused to recommend it. Apple's stock plummeted, shaving off $16 billion in market value. Hysteria was rampant. It forced Apple's CEO Steve Jobs to hold a news conference last week to address the issue, something he was surely loathed to do.

Jobs dubbed the whole affair, "Antennagate." He promised users free plastic "bumper" cases that would prevent a user's fingers from covering the antenna. The media wasn't satisfied. They characterized Jobs as "defiant" and "defensive." Apple was accused of being "secretive" in the handling of the whole affair. To these eyes, the media's reaction was overblown.

An analyst for Envioneering Group agrees. He has been trying unsuccessfully to replicate the signal problems on several of the new IPhone 4 models. His conclusion is that there is no science to support the reported antenna problems. "It may be just under 1% of the phones have the issue, less than 1 out of 100," he concludes.

But "Antennagate" is not about reality. There are other reasons that help explain the media's response. The business press, especially, has not taken kindly to the way Apple has chosen to eschew a cozy relationship with the media. Apple shrouds its announcements in secrecy and keeps the media in the dark so that the company can control the news about its new products. That chaps the media. They want unfettered access, especially when it's a high-profile company like Apple. Jobs doesn't play that game. As a result, there is a hate-hate relationship between Apple and journalists.

Moreover, when a publication or reporter prints unflattering reports about Apple, the CEO reverts to attack mode. Jobs doesn't sit back and let the media bash his company or its products. That's why the media should have expected Jobs to come out swinging last week at his hastily called news conference. He didn't disappoint.

Jobs lectured the audience, claiming the press and its competitors were trying to "tear down" Apple. He pointed out that antenna issues were common with most wireless phones. He even showed dramatic video to support his claim. Jobs capped off the event by saying the whole affair was "overblown." He called one media account of the antenna problems a "total crock." Jobs is absolutely correct.

First off, handsets have always had antenna issues since the inception of the wireless industry. True, manufacturers have gotten better over the years at addressing the problem. However, today's miniature models, when compared to the early bricks with huge antennas, are not designed for maximum signal strength. Network providers, like AT&T, often shoulder the blame, but handsets should share at least half of the responsibility for weak reception. There never has been a wireless handset sold that doesn't experience problems with dropped calls and weak signals.

If this is true, then why the media circus? Apple's competitors are feeding the media frenzy in hopes of destroying the image the IPhone has earned in the marketplace. The more doubt the competition can create, the better its chances to overtake Apple in the smartphone category. The company that stands to gain the most by Apple's misfortunes is Goggle, a relative newcomer to the smartphone market. The Mountain View, California, Goliath casts a big shadow over this whole episode.

Google has a lot at stake in this drama. The company's latest smartphone, the Droid X manufactured by Motorola and powered by the Google Android operating system, is flying off the shelves. In the race for market share, Droid is closing the gap with IPhone. Billions of dollars are riding on the outcome of this fierce competition.

Despite its carefully nurtured image, Google isn't above undertaking a stealth campaign to sink its competition. Behind the scenes, Goggle is prompting tech analysts, financial researchers and product evaluators to pile on. They are using their extensive contacts to prod the media frenzy that appears unlikely to abate any time soon. Unlike Apple, the folks at Goggle have cultivated a lovable image in the media, which has produced fawning coverage for a company intent on destroying competition.

That's why it was no surprise when Sen. Charles Schumer, a Democrat from New York, wrote an open letter last week to Jobs, urging him to be clearer with the public on the antenna problem. He called the "bumper" case offered by Jobs an "insufficient" solution. It would be wise for tech followers and Apple to take heed.

During the last presidential campaign, Google's managers and employees donated a reported $803,000 to President Obama's campaign. In addition, Google's CEO and other executives forked over another $25,000 each to help pay for the inaugural event. As a result, Google got a seat at the Washington table. A handful of ex-Google managers have joined the Obama administration. The most visible is Andrew McLaughlin, who serves as deputy chief technology officer for the administration. He is in a position to shape policy that impacts Google and its rivals.

Therefore, Schumer's outburst should not be dismissed as mere political grandstanding. He is tight with the Obama administration. You don't have to be a conspiracy theorist to wonder if perhaps Schumer was goaded into action by someone in the administration. A congressional hearing is the last thing Jobs and Apple need at this point. Even worse, regulators, such as the Federal Trade Commission, could step in and demand that Apple do more than offer a free "bumper" case.

With all the negative publicity enveloping the IPhone 4, you'd expect sales to tank. However, just the opposite has happened. Jobs said Apple has sold more than three million units since its introduction three weeks ago. The handset is on pace to break all previous smartphone sales records. Most stores that were contacted are quoting three-to-four week delivery time frames for the IPhone 4. Young people, in particular, are enraptured by the FaceTime video calling feature. Obviously, consumers aren't buying the smear campaign against Apple.


But don't expect the uproar to die down. The media smell Apple-red blood. New press accounts surfaced over the weekend about challenges faced by Apple's glass supplier. The report hinted there would be increasing delays in fulfilling IPhone 4 orders. The news heaped more negative publicity on Apple's new phone.

Apple must face the facts. This is an attack like none other that it has ever experienced. It is time to take off the gloves and go after Google. The Droid X is not without its problems, including a finicky touchscreen. If it waits too long, Jobs may find Apple looking up at Google's market share position in the smartphone category.

Tuesday, July 13, 2010

Obama's Ten Big Lies

If President Obama were a wooden puppet, his nose would be longer than Pinocchio's olfactory organ. His administration and his accomplices in the Democrat Party have told one whooper after another since the president's was sworn into office. Exposing the lies is the role once played by the news media, but a compliant press has repeated the untruths without bothering to challenge the claims. Here are just a few of the big lies:

1. Lie: Republicans and President Bush are to be blamed for the record deficits. The facts say otherwise. The year 2006 was the last time that the Republicans controlled both houses of Congress and the presidency. The budget deficit that year totaled $161 billion. That's not exactly chump change. However, the Democrat controlled Congress and President Obama ended 2009 with a $1.09 trillion budget deficit. That's nearly ten times worse than the Republicans did. Projections call for the current federal budget year to end with a $1.3 trillion deficit. That's nearly $2.5 trillion in red ink over a two-year budget cycle. It dwarfs the deficit spending in the Bush years.

2. Lie: Bush and the Republicans' persided over the the highest number of bank failures since the Great Depression. In the last year of President Bush's second term, 25 banks failed. In Obama's first year in office, a total of 140 banks went belly up, despite massive bailouts and regulatory interference. So far this year, there have been 90 bank failures. At the current pace, 2010 will be a recording-setting year for bank failures. Not only are more banks failing, but scores are being added each month to the FDIC's watch list.

3. Lie: President Obama and Democrats have created and saved millions of jobs. When President Obama was sworn in as president in January of 2009, the unemployment rate was 7.7 percent. The latest Bureau of Labor statistics show that unemployment ended June at 9.5 percent. The number of long-term unemployed (27+ weeks) has increased dramatically over the same period, growing by 33 percent. There are more unemployed and fewer jobs for people looking for work. The numbers don't lie.

4. Lie: The country needs another stimulus package to jump start the economy. This untruth is made even more odious because the government has spent only 53 percent of the original $787 billion stimulus package approved a year ago. According to its own figures, the government has doled out $420 billion as of the end of June. Although the figures are readily available on the government's website, no news media outlet has bothered to check to find out what has happened to the remaining $367 billion. It seems a tad disingenuous to be asking for increased spending on stimulus packages when the government is sitting on billions of dollars that were supposed to help "bring us back from the brink."

5. Lie: President Obama has arrested the rate of home foreclosures with government programs.. In President Bush's last year in office, about 750,000to 1,000,000 homes were repossessed. Since Obama took office, foreclosures have skyrocketed, despite a failed plan to help homeowners avoid bankruptcy. Home foreclosures rose 60 percent in February of this year. It marked the 26th consecutive month of year-over-year monthly increases in foreclosures. Property owners were unable to unload their homes, despite the largest drop in home prices in 20 years. Most real estate experts predict foreclosures will continue to grow in the coming months as $460 billion of adjustable rate mortgages readjust.

6. Lie: Arizona's new law is an example of states taking federal matters into their own hands. Arizona's law, in fact, mimics the Immigration and Nationality Act of 1965 passed by Congress. Federal law makes it illegal for non-nationals to enter or attempt to enter the United States. The federal act also prohibits people from eluding inspection by enforcement officials. Arizona's law does the same thing. Meanwhile there are 22 cities in the country that have adopted ordinances instructing police "not to cooperate" with federal officials in the apprehension of illegals. Some cities have gone so far as to forbid law enforcement as well as businesses from asking people about their immigration status. These so-called "sanctuary cities" include, Austin, San Francisco, Houston and Portland. The attorney general has been silent on these municipalities' circumvention of federal law.

7. Lie: President Bush's tax cuts hurt the middle class and benefit the rich. Under Bush's plan, a family of four earning $50,000 incurs no income tax liability after taking the standard deduction and child tax credit. Every year since 2002, the number of people paying no taxes has risen. In 2008, 36.3 percent of the people who filed tax returns paid no taxes, a record. That percentage equates to 51.6 million people who contributed no money to the federal government. Another telling statistic: Nearly 60 percent of taxpayers in the bottom 20 percent of earners moved to a higher bracket in the Bush years. What about the rich? Nearly 40 percent of taxpayers in the top 20 percent moved down. The Bush tax cuts are set to expire in December.

8. Lie: President Obama pledged not to sign health care reform legislation unless the cost was less than $1 trillion over 10 years. Long after the hoopla over the legislation faded from the front pages of newspapers, the corrupt Congressional Budget Office issued a revised estimate of the cost of the legislation. The latest guesstimate is the price tag will easily top a staggering $1 trillion. The original estimate was $940 billion. Once the implementation begins for health care reform, most experts think the cost will approach $2 trillion.

9. Lie: The border has never been more secure than it is now. In the last year of the Bush administration, more than 792,000 illegals were apprehended by law enforcement. Eighty-eight percent of those were Mexican nationals. The number included 97,000 people with criminal records. The Department of Homeland Security has not published comparable figures for 2009. President Obama claims apprehensions have dropped 54 percent from 2005 to 2009. This does not mean the border is better guarded. It may signal that fewer illegals are entering the country because the United States' has fewer jobs. However, it is clear that kidnappings, drug seizures and arrests are all increasing. In one year, kidnappings in Phoenix have jumped 40 percent. The city now ranks second in the world in reported kidnappings. Drug seizures have risen 40 percent since 2006 along the border. Arrests of illegals crossing the Mexican border into Arizona have climbed six percent from last October to this April. The border is neither safe nor secure.

10. Lie: President Obama is not anti-business. The administration's first 18 months in power are replete with examples of laws designed to increase government regulation, raise taxes and crimp investment. For the sake of brevity, just consider one aspect of Obama's attack on business. With the expiration of the Bush tax cuts and new Medicare taxes on investment income in the Health Care Reform Act, the top effective tax rate on dividends in the U.S. will zoom to 68 percent in 2011. That will make it the highest among all industrialized nations. This double tax on corporate profits discourages capital investment, which in turn, negatively impacts job growth. Still unconvinced? Forture 500 firms are sitting on a record $2 trillion cash horde, reluctant to expand or invest in their businesses because of the uncertainty created by Obama's tax and spend agenda.

Unchecked by a vigilant media, there is no end in sight to the president's lack of truth telling. At least it's becoming easier to spot the lies. If the president's lips are moving, it's a good bet a falsehood is about to escape.

Friday, July 9, 2010

Factoids You Can Use

If you want your son or daughter to grow up to be a millionaire, the path to wealth is paved with a career as an application developer for smart phones. According to industry figures, there are now 225,000 apps available for the IPhone. More than 50 million IPhone handsets have been sold and the number is surging, thanks to the introduction of the latest model, dubbed The Four. With that many handsets, the app business has become a $4.1 billion gold rush. There were seven billion downloads of apps on the IPhone in 2009. That's just a drop in the bucket compared to some forecasts. By 2012, app downloads are expected to skyrocket to 50 billion. Revenues are anticipated to grow to $17.5 billion during that year, according to at least one industry follower. As a result of the rise in app revenue, some developers have become overnight millionaires. Forget that career advice about becoming a doctor, lawyer or Wall Street mogul. Teach your kids to grow up to be app developers.

Obama Loses Touch With Economic Reality

While President Obama preaches the need for more economic stimulus, his counterparts in Europe are in full retreat from this failed policy. Germany, the United Kingdom and France have made cutting bloated government deficits their top priority to address economic recovery. National leaders in these countries have done a turnabout in facing economic reality. Yet Obama continues to cling to the notion that government spending is the best way to elevate the country out of the recession.

The stark contrast between competing policies was on full display when Obama urged the G20 nations at the recent economic summit to continue government pump priming. His words were greeted with icy silence. His audience included most of the European economic powers who are suffering from years of social spending that has saddled their countries with deficits as far as the eye can see.

Leaders in France and Germany joined together in calling for tougher European Union rules to prevent further economic chaos fueled by deficit spending. France went one step further, signaling that it may consider amending its constitution to make budget discipline a mandate for future French governments. That is unprecedented for a country that has prided itself in building generous social programs.

Not to be outdone, the UK government has ordered budget cuts of as much as 40 percent in some departments in order to slash a deficit running 11 percent of the country's economic output. The proposed spending reductions would be the deepest since World War II. Projections are that 610,000 government jobs will be lopped off.

Surveying the European economic landscape, the EU's central Bank President Jean-Claude Trichet said that government austerity drives aimed at deficit reductions will stimulate economic recovery. He added that "structural reforms" were fundamental to the growth potential for Europe.

These sobering economic maneuvers have been lost on President Obama. In a signature move for his administration, the President has treated the issue of runaway deficits as something of an academic exercise. His lone action has been to form a panel to study the problem and make recommendations. In a nod to politics, he ordered the panel to present its findings after the November elections.

Yet the United States actually faces a more acute deficit crisis than most of its European neighbors. The nation's deficit currently represents 11 percent of its total annual economic output, the same as the United Kingdom. Germany and France both have deficits that are smaller, as measured as a percentage of economic output. Even debt-saddled Greece comes in at 8.7 percent, according to figures from the International Monetary Fund and the Organization for Economic Cooperation and Development.

Meanwhile, the President and his party continue to ignore warnings about deficit spending. In a show of political arrogance, last week the house Democrats used procedural trickery to pass a non-existent $1.12 trillion budget deal. Instead of calling for a vote on a congressional budget resolution, Democrats attached a document to an emergency war supplement bill in deeming approval of the new budget. News coverage of the event was virtually non-existent.

Facing a record deficit and a tidal wave of debt, Obama's minions are taking the low road. The nation's total debt now stands at a staggering $13 trillion and counting. Budget deficits are growing at the fastest clip since World War II as the administration continues to refuse to accept responsibility for its reckless spending. In case you haven't heard, it's all former President Bush's fault.

Now some economists are talking about the dreaded "double dip" impact on the American recovery. The term suggests that there is a risk of dipping back into a recession after the economy had begun to claw its way back. This has prompted calls by some in Congress for the Son of Stimulus. This assumption underscores the absurdity of the administration and its supporters in the economic community.

The truth is the economy remains in a recession. It has never left this territory. Any cursory examination of economic numbers shows nothing much has changed in bank failures, housing foreclosures and unemployment since the recession began. In fact, in many ways, things have gotten worse.

Failure to recognize this truth imperils the country's future. More government spending will not cure America's economic ills. Fiscal responsibility is the only way for the nation to rise above its current economic malaise and to put it on the long path back to stability.

Don't take my word for it. Just ask Europe's leading economic powers.

Friday, July 2, 2010

Kagan vs. Miers: A saga of two would-be Supremes

With a seat on the Supreme Court all but assured for Elena Kagan, it is instructive to compare her nomination with that of Harriet Miers five years ago. Under any unbiased reading, there are obviously two sets of standards for consideration of associate justice candidates. In addition, the hearings are little more than well reheased performances that offer nothing in the way of insight into a nominee's judicial philosophy. This travesty has rendered meaningless the ritual of Senate confirmation hearings.

While Kagan's nomination sails through the Senate with tacit GOP support, Miers was forced to withdraw after those within Bush's own party bowed to Beltway media pressure. While Democrats will defend their own to the bitter end, Republicans have a sorry history of cutting bait at the first sign of negative press. It is why the GOP has remained a minority party for most of its history.

Harken back to the hearings for Miers in 2005. Critics on both sides of the aisle pointed out that she had never served as a judge, had close ties to the President and lacked a clear record on issues likely to be considered by the high court. Those exact same things are also true of Elena Kagan. But the Democrats stood their ground.

The media and Democrats have championed Kagan as a thoughtful, open-minded, imminently qualified nominee, with a sterling legal resume. An objective examination of her record belies that characterization. Here are just a few examples of her documented views:

1. In a 1996 White House document penned by Kagan, she compared the National Rifle Association to the Ku Klux Klan. She said both were "bad guy" organizations.

2. In an article in the University of Chicago Law Review, Kagan argued that government has the right to restrict free speech. She claimed that free speech could be "harmful" and as a result could be restricted.

3. In 2003, Kagan sent an email calling the military's "Don't Ask, Don't Tell" policy a "moral injustice of the first order." What makes this even more instructive is that Kagan served as President Clinton's Associate White House Counsel when the administration promulgated the very policy she said she "abhorred."

Of course, during her hearings Kagan tiptoed all around these and other issues. The same person who called previous nomination hearings "a vapid and hollow charade" displayed by her answers that she can obfuscate with the best. Apparently, being vapid and hollow is perfectly acceptable if you're the one being cross-examined by Senators.

Her carefully scripted answers to Senators' questions brought back memories of Justice Sonia Sotomayor's performance in the same venue. In a repartee with senators, she declared that the Second Amendment right to bear arms was "settled law," yet in the first court test of her tenure the associate justice voted with the minority in opposing that very precedent. It's further evidence the hearings are meaningless.

A side-by-side comparison of the careers of Kagan and Miers shows more similarities than differences. Both clerked with judges after law school. Kagan managed the law school at Harvard. Miers managed a large law firm in Dallas. Yet Miers was criticized for having managerial and not judicial experience. The same was not said of Kagan.

Kagan has close personal ties to Obama, including serving as his Solicitor General. She and the President have mutual ties to Harvard. Miers served as White House Deputy Chief of Staff and White House Counsel under President Bush. They both had ties to Texas. No question both judicial nominees would have to plead guilty to being close to their bosses. Apparently, the distinction of being "too" close depends on who is President. Miers' sin was once praising Bush's personal qualities.

Both smashed legal glass ceilings. Kagan was the first female to be named Dean of the Law School at Harvard. Miers was the first female president of the Dallas Bar Association. Both were active in the law schools at their respective universities.

In another coincidence, both suffered failed judicial nominations. Kagan was nominated by President Clinton to the federal appeals court. Her nomination lapsed after the Senate failed to schedule hearings because of tepid support. Of course, Miers withdrew her Supreme Court candidacy to save Bush from suffering a defeat on her nomination.

Democrats like to point out that Kagan actually argued cases before the Supreme Court, something Miers never did. However, that experience came during the past 12 months when she argued six cases before the Supremes. That hardly qualifies as a decisive edge when comparing the two nominees.

However, Miers can one-up Kagan on one count that President Obama has deemed important for Supreme Court nominees. Obama has declared on more than one occasion that "life experiences" are a valued judicial criteria. Miers served a two-year term on the Dallas City Council and chaired the Texas Lottery Commission. Kagan's life experiences have been limited to the sheltered existence within tight academic and legal circles.

But all this appears to be of little consequence to Democrats. They have raised their voices in unison to praise Kagan's nomination. The media has joined the chorus in glorifying Kagan's brilliance, failing to point out her obvious shortcomings. Compare that to what happened to Miers. She was savaged in the media, even called intellectually lacking, a curious charge given her long list of achievements. Interestingly, no women's group protested an accomplished women being deemed too stupid to serve on the court.

Even more disappointing is the reaction of Republicans. After expressing some initial misgivings after the nomination was announced, GOP Senators have acquiesced. They have signaled their support, despite Kagan's thin resume. Their brethren on the other side of the aisle showed no such willingness to compromise when Bush nominated Miers. They mounted a successful campaign to destroy Miers.

It is sad to watch. But that is what happens when the media and Republicans fail to do their jobs, allowing Democrats to run roughshod over the judicial nomination process. As a result, Elena Kagan will surely become the first Supreme Court associate justice in four decades without prior judicial experience. The last was William Rehnquist in 1972.

There are no winners in this tale of two nominees. The losers are the American people who deserve a fair and balanced examination of any high court nominee, regardless of who occupies the White House. Changes should be made to end this sham foisted on an unwary public. Surely, there can be no opposition when a lifetime appointment to the Supreme Court is at stake.

Thursday, July 1, 2010

Factiods That You Can Use

The Government Accountability Office, the single federal agency that remains independent of Obama Administration influence, released this week the results of its investigation of a $5 billion utilities program for the poor. Under the plan, the needy receive government funding to pay for heating and cooling of their homes. The agency's findings were shocking, even for a colossally inept government that has wasted billions of taxpayer dollars. The agency found evidence that the feds doled out $116 million in fraudulent claims. In fact, 11,000 of the recipients were dead. Other people assumed their identities and bilked the program of $3.9 million. Another 725 recipients were in prison. About 1,100 recipients of the government largess had more income that the maximum allowable, including one wealthy Chicago woman living in a $2 million mansion. Applicants used counterfeit documents, fake addresses and bogus landlords to perpetrate their deception. Program administrations were negligent in checking applicant documentation. The GAO's investigation covered seven states that administered about one-third of the program's funding in 2009. In other words, the real fraud number is much worse. Health and Human Services Secretary Kathleen Sebelius said she was "very disturbed" by the findings. You'd think the madam secretary would have been red-faced enough to order a full investigation. No such luck. After all, the are more millions of dollars where those came from.