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Because of the comfort he gave New York during the 9/11 crisis, the
city’s former mayor, Rudolph Giuliani, is now widely regarded as a hero. His bravery in this emergency is indeed commendable. Still, it’s best to have a complete portrait of the man, looking at his less agreeable decrees as well.

Before becoming mayor, Giuliani first rose to fame as the district
attorney who unfairly persecuted — sorry; ”’prosecuted”’ — investment banker Michael Milken.

Throughout the eighties, Milken helped “corporate raiders” take over failing corporations, using “junk bonds.” Once the “raiders” gained control, they’d fire incompetent managers and make the organization more efficient.

This practice saved many companies from bankruptcy, but it incited
panic among inept executives.

Thus, the corporate establishment and the era’s anti-capitalist activists alike feared Milken, making them want to pulverize — even jail — him. Since “corporate raiding” was still legal then, they had to find another excuse for imprisoning him, so they accused him of violating securities regulations.

But not only were these regulations unjust, but their application to
Milken made no sense.

After relentless harassment from the media and government, Milken
couldn’t take it anymore, so he pled guilty on four counts. He consequently spent two years behind bars (it would’ve been longer, but his sentence was reduced for “good behavior”) and he’s ”’banned”’ from the securities trade ”’for life.”’

But Milken didn’t deserve that, as exhaustively demonstrated in Daniel Fischel’s book “Payback” and briefly shown in Robert Sobel’s “Dangerous Dreamers.” Let’s go over each of the four counts.

First, Milken purchased stock on behalf of the Finsbury Fund, and was legally supposed to charge the company a commission. Instead, Sobel notes, Milken “charged Finsbury a fraction of a point more on purchases, although within the market range for the security. If Milken had accepted the identical amount as a commission, no crime would have been committed.” A man spent years in confinement for ”’this”’ technicality?

Secondly, Milken assisted David Solomon in reducing his income taxes, instructing Solomon to take certain business losses in order to decrease what he’d have to pay the IRS, and then promised Solomon that he’d make up the losses later. That’s illegal, too.

Yet it’s common for people to perform certain actions, like making
charitable donations, to lessen their taxes. Milken didn’t defraud anyone — Solomon’s losses were real. And Solomon’s reducing his taxes doesn’t damage anyone’s person or property; it’s the IRS that violates ”’his”’ rights and everyone else’s by extorting money without consent.

Finally, for the other two counts, Milken was charged for “aiding and
abetting” speculator Ivan Boesky when he failed to file two statements asking for the Securities and Exchange Commission’s (SEC’s) permission to make certain stock purchases, at Milken’s request, each to help a Milken client — Victor Posner and Golden Nugget Casino, respectively.

When Posner bid for Fischbach Corporation, Milken asked Boesky to
procure its stock too, so that speculators and regulators would assume that it was Boesky and not Posner trying to take it over.

And when Golden Nugget sold off its MCA stock, Milken had Boesky
purchase MCA stock so that speculators would see it as still being in high demand and continue to buy it at high prices even as Golden Nugget dumped it, cutting the casino’s losses.

No fraud here. Boesky promised nothing; speculators just saw him
execute trades and then they made assumptions — their own responsibility.

These deals were made with the ”’assent”’ of all parties involved. No
one was forced to buy or relinquish anything; no contracts were broken. Boesky shouldn’t even have been required, in the first place, to ask for the government’s permission to commence peaceful transactions with consenting adults; that’s his ”’right.”’

Yet Giuliani charged Milken as an “”’accessory”'” to Boesky’s
“felonies” in the cases of Posner and Golden Nugget, which legally means that Boesky was the main perpetrator. But Boesky himself wasn’t charged on either count; only Milken was.

Milken was jailed for ”’helping”’ a “criminal” commit two “crimes,” while the “criminal” he helped ”’wasn’t”’ penalized for them. That’s illogical.

And, in all preceding securities cases, breaches of such regulations
only meant ”’civil”’ penalties; Milken was the first person ”’criminally”’ charged for them.

In short, Giuliani imprisoned Milken unfairly, and at all costs. Bill
Clinton, who snubbed Milken when he asked for a pardon, isn’t known for decency, … but Giuliani ”’is.”’ So the former mayor at least owes an apology to the Milken who revitalized — not imperiled — American commerce.

”’Stuart K. Hayashi is the president of the Reason Club of Honolulu and an undergraduate in Entrepreneurial Studies at Hawaii Pacific University, though his opinions do not necessarily reflect that of either institution. He can be reached at mailto:radical_individualist@hotmail.com and an index of his past editorials for HawaiiReporter.com can be seen at”’ https://reason_club.tripod.com/stuart_editorials.html

Related Articles by Stuart K. Hayashi:

“Voluntary Alternatives to Taxation”
https://www.hawaiireporter.com/story.aspx?b469cf29-8413-4aec-8116-e6c7ecc0e124

“The Invisible Gun”
https://www.hawaiireporter.com/story.aspx?d631b884-9bbb-4fe3-bbd9-748388b6b720

Because of the comfort he gave New York during the 9/11 crisis, the city’s former mayor, Rudolph Giuliani, is now widely regarded as a hero. His bravery in this emergency is indeed commendable. Still, it’s best to have a complete portrait of the man, looking at his less agreeable decrees as well. Before becoming mayor, Giuliani first rose to fame as the district attorney who unfairly persecuted — sorry; ”prosecuted” — investment banker Michael Milken.

Throughout the eighties, Milken helped “corporate raiders” take over failing corporations, using “junk bonds.” Once the “raiders” gained control, they’d fire incompetent managers and make the organization more efficient. This practice saved many companies from bankruptcy, but it incited panic among inept executives. Thus, the corporate establishment and the era’s anti-capitalist activists alike feared Milken, making them want to pulverize — even jail — him. Since “corporate raiding” was still legal then, they had to find another excuse for imprisoning him, so they accused him of violating securities regulations. But not only were these regulations unjust, but their application to Milken made no sense.

After relentless harassment from the media and government, Milken couldn’t take it anymore, so he pled guilty on four counts. He consequently spent two years behind bars (it would’ve been longer, but his sentence was reduced for “good behavior”) and he’s ”banned” from the securities trade ”for life.” But Milken didn’t deserve that, as exhaustively demonstrated in Daniel Fischel’s book “Payback” and briefly shown in Robert Sobel’s “Dangerous Dreamers.” Let’s go over each of the four counts. First, Milken purchased stock on behalf of the Finsbury Fund, and was legally supposed to charge the company a commission.

Instead, Sobel notes, Milken “charged Finsbury a fraction of a point more on purchases, although within the market range for the security. If Milken had accepted the identical amount as a commission, no crime would have been committed.”

A man spent years in confinement for ”this” technicality? Secondly, Milken assisted David Solomon in reducing his income taxes, instructing Solomon to take certain business losses in order to decrease what he’d have to pay the IRS, and then promised Solomon that he’d make up the losses later. That’s illegal, too. Yet it’s common for people to perform certain actions, like making charitable donations, to lessen their taxes. Milken didn’t defraud anyone — Solomon’s losses were real. And Solomon’s reducing his taxes doesn’t damage anyone’s person or property; it’s the IRS that violates ”his” rights and everyone else’s by extorting money without consent. Finally, for the other two counts, Milken was charged for “aiding and abetting” speculator Ivan Boesky when he failed to file two statements asking for the Securities and Exchange Commission’s (SEC’s) permission to make certain stock purchases, at Milken’s request, each to help a Milken client — Victor Posner and Golden Nugget Casino, respectively. When Posner bid for Fischbach Corporation, Milken asked Boesky to procure its stock too, so that speculators and regulators would assume that it was Boesky and not Posner trying to take it over. And when Golden Nugget sold off its MCA stock, Milken had Boesky purchase MCA stock so that speculators would see it as still being in high demand and continue to buy it at high prices even as Golden Nugget dumped it, cutting the casino’s losses. No fraud here. Boesky promised nothing; speculators just saw him execute trades and then they made assumptions — their own responsibility. These deals were made with the ”assent” of all parties involved.

No one was forced to buy or relinquish anything; no contracts were broken. Boesky shouldn’t even have been required, in the first place, to ask for the government’s permission to commence peaceful transactions with consenting adults; that’s his ”right.” Yet Giuliani charged Milken as an “”accessory”” to Boesky’s “felonies” in the cases of Posner and Golden Nugget, which legally means that Boesky was the main perpetrator. But Boesky himself wasn’t charged on either count; only Milken was. Milken was jailed for ”helping” a “criminal” commit two “crimes,” while the “criminal” he helped ”wasn’t” penalized for them. That’s illogical. And, in all preceding securities cases, breaches of such regulations only meant ”civil” penalties; Milken was the first person ”criminally” charged for them. In short, Giuliani imprisoned Milken unfairly, and at all costs. Bill Clinton, who snubbed Milken when he asked for a pardon, isn’t known for decency, … but Giuliani ”is.” So the former mayor at least owes an apology to the Milken who revitalized — not imperiled — American commerce. ”Stuart K. Hayashi is the president of the Reason Club of Honolulu and an undergraduate in Entrepreneurial Studies at Hawaii Pacific University, though his opinions do not necessarily reflect that of either institution. He can be reached at mailto:radical_individualist@hotmail.com and an index of his past editorials for HawaiiReporter.com can be seen at” https://reason_club.tripod.com/stuart_editorials.html Related Articles by Stuart K. Hayashi: “Voluntary Alternatives to Taxation” https://www.hawaiireporter.com/story.aspx?b469cf29-8413-4aec-8116-e6c7ecc0e124 “The Invisible Gun” https://www.hawaiireporter.com/story.aspx?d631b884-9bbb-4fe3-bbd9-748388b6b720

StuartHayashi Image Because of the comfort he gave New York during the 9/11 crisis, the city’s former mayor, Rudolph Giuliani, is now widely regarded as a hero. His bravery in this emergency is indeed commendable. Still, it’s best to have a complete portrait of the man, looking at his less agreeable decrees as well. Before becoming mayor, Giuliani first rose to fame as the district attorney who unfairly persecuted — sorry; ”prosecuted” — investment banker Michael Milken. Throughout the eighties, Milken helped “corporate raiders” take over failing corporations, using “junk bonds.” Once the “raiders” gained control, they’d fire incompetent managers and make the organization more efficient. This practice saved many companies from bankruptcy, but it incited panic among inept executives. Thus, the corporate establishment and the era’s anti-capitalist activists alike feared Milken, making them want to pulverize — even jail — him. Since “corporate raiding” was still legal then, they had to find another excuse for imprisoning him, so they accused him of violating securities regulations. But not only were these regulations unjust, but their application to Milken made no sense. After relentless harassment from the media and government, Milken couldn’t take it anymore, so he pled guilty on four counts. He consequently spent two years behind bars (it would’ve been longer, but his sentence was reduced for “good behavior”) and he’s ”banned” from the securities trade ”for life.” But Milken didn’t deserve that, as exhaustively demonstrated in Daniel Fischel’s book “Payback” and briefly shown in Robert Sobel’s “Dangerous Dreamers.” Let’s go over each of the four counts. First, Milken purchased stock on behalf of the Finsbury Fund, and was legally supposed to charge the company a commission. Instead, Sobel notes, Milken “charged Finsbury a fraction of a point more on purchases, although within the market range for the security. If Milken had accepted the identical amount as a commission, no crime would have been committed.” A man spent years in confinement for ”this” technicality? Secondly, Milken assisted David Solomon in reducing his income taxes, instructing Solomon to take certain business losses in order to decrease what he’d have to pay the IRS, and then promised Solomon that he’d make up the losses later. That’s illegal, too. Yet it’s common for people to perform certain actions, like making charitable donations, to lessen their taxes. Milken didn’t defraud anyone — Solomon’s losses were real. And Solomon’s reducing his taxes doesn’t damage anyone’s person or property; it’s the IRS that violates ”his” rights and everyone else’s by extorting money without consent. Finally, for the other two counts, Milken was charged for “aiding and abetting” speculator Ivan Boesky when he failed to file two statements asking for the Securities and Exchange Commission’s (SEC’s) permission to make certain stock purchases, at Milken’s request, each to help a Milken client — Victor Posner and Golden Nugget Casino, respectively. When Posner bid for Fischbach Corporation, Milken asked Boesky to procure its stock too, so that speculators and regulators would assume that it was Boesky and not Posner trying to take it over. And when Golden Nugget sold off its MCA stock, Milken had Boesky purchase MCA stock so that speculators would see it as still being in high demand and continue to buy it at high prices even as Golden Nugget dumped it, cutting the casino’s losses. No fraud here. Boesky promised nothing; speculators just saw him execute trades and then they made assumptions — their own responsibility. These deals were made with the ”assent” of all parties involved. No one was forced to buy or relinquish anything; no contracts were broken. Boesky shouldn’t even have been required, in the first place, to ask for the government’s permission to commence peaceful transactions with consenting adults; that’s his ”right.” Yet Giuliani charged Milken as an “”accessory”” to Boesky’s “felonies” in the cases of Posner and Golden Nugget, which legally means that Boesky was the main perpetrator. But Boesky himself wasn’t charged on either count; only Milken was. Milken was jailed for ”helping” a “criminal” commit two “crimes,” while the “criminal” he helped ”wasn’t” penalized for them. That’s illogical. And, in all preceding securities cases, breaches of such regulations only meant ”civil” penalties; Milken was the first person ”criminally” charged for them. In short, Giuliani imprisoned Milken unfairly, and at all costs. Bill Clinton, who snubbed Milken when he asked for a pardon, isn’t known for decency, … but Giuliani ”is.” So the former mayor at least owes an apology to the Milken who revitalized — not imperiled — American commerce. ”Stuart K. Hayashi is the president of the Reason Club of Honolulu and an undergraduate in Entrepreneurial Studies at Hawaii Pacific University, though his opinions do not necessarily reflect that of either institution. He can be reached at mailto:radical_individualist@hotmail.com and an index of his past editorials for HawaiiReporter.com can be seen at” https://reason_club.tripod.com/stuart_editorials.html Related Articles by Stuart K. Hayashi: “Voluntary Alternatives to Taxation” https://www.hawaiireporter.com/story.aspx?b469cf29-8413-4aec-8116-e6c7ecc0e124 “The Invisible Gun” https://www.hawaiireporter.com/story.aspx?d631b884-9bbb-4fe3-bbd9-748388b6b720

Sen. Joseph Lieberman (D-Conn.) aspires to be the Energy Rationing President, and Sen. John McCain (R-Ariz.) apparently wants to help him attain that dubious distinction.

McCain, who chairs the Senate Commerce, Science, and Transportation Committee, held a hearing this week on legislation he and Lieberman are co-sponsoring to force major energy, manufacturing, and transportation companies to reduce emissions of carbon dioxide to year 2000 levels by 2010 and 1990 levels by 2016.

Although the McCain-Lieberman CO2 reduction targets are not as draconian as those stipulated in the Kyoto Protocol (7 percent below 1990 levels during the five-year averaging period, 2008-2012), it’s close enough for government work. Moreover, once federal agencies get a green light to regulate CO2, we can be sure climate alarmists like Kyoto Joe Lieberman will return to the charge, demanding ever more stringent controls.

Why is this a prescription for energy rationing? CO2 is the inescapable byproduct of the hydrocarbon fuels that supply 70 percent of U.S. electricity and 84 percent of all U.S. energy. There is no device that can be bolted onto a car engine, a steel mill, or a power plant that can scrub CO2 out of the exhaust stream. Thus, the only way to meet a mandatory CO2 reduction target or “cap” is to use less of the affordable, plentiful, increasingly safe and clean hydrocarbons. CO2 controls are just another name for energy rationing –

Sen. Joseph Lieberman (D-Conn.) aspires to be the Energy Rationing President, and Sen. John McCain (R-Ariz.) apparently wants to help him attain that dubious distinction. McCain, who chairs the Senate Commerce, Science, and Transportation Committee, held a hearing this week on legislation he and Lieberman are co-sponsoring to force major energy, manufacturing, and transportation companies to reduce emissions of carbon dioxide to year 2000 levels by 2010 and 1990 levels by 2016. Although the McCain-Lieberman CO2 reduction targets are not as draconian as those stipulated in the Kyoto Protocol (7 percent below 1990 levels during the five-year averaging period, 2008-2012), it’s close enough for government work. Moreover, once federal agencies get a green light to regulate CO2, we can be sure climate alarmists like Kyoto Joe Lieberman will return to the charge, demanding ever more stringent controls. Why is this a prescription for energy rationing? CO2 is the inescapable byproduct of the hydrocarbon fuels that supply 70 percent of U.S. electricity and 84 percent of all U.S. energy. There is no device that can be bolted onto a car engine, a steel mill, or a power plant that can scrub CO2 out of the exhaust stream. Thus, the only way to meet a mandatory CO2 reduction target or “cap” is to use less of the affordable, plentiful, increasingly safe and clean hydrocarbons. CO2 controls are just another name for energy rationing -? the regulatory equivalent of an energy tax. It’s not hard to understand why Lieberman is keen to have Chairman McCain shepherd energy rationing legislation through his committee. The chances of such legislation becoming law in the 108th Congress are nil. But that?s exactly the point. When the Republican-led Congress fails to pass the bill, Lieberman, who is running for president in 2004, will be able to blame the GOP and, especially, its leader, Mr. anti-Kyoto, George W. Bush. Sen. McCain is setting the stage for Sen. Lieberman’s presidential campaign ?- a campaign in which Lieberman will bash Bush and the GOP for “inaction” on global warming. Why is McCain advancing Kyoto Joe’s climate agenda and political career? It’s baffling, given McCain’s previous positions on energy issues. In 1993, McCain voted against the Clinton-Gore tax on fossil energy production. Yet as a June 2001 Congressional Budget Office study of CO2 cap-and-trade programs notes, “the economic impacts of cap-and-trade programs would be similar to those of a carbon tax: both would raise the cost of using carbon-based fossil fuels, lead to higher energy prices, and impose costs on users and some suppliers of energy.” Now McCain is pushing the regulatory equivalent of an energy tax. McCain also voted for the July 1997 Byrd-Hagel resolution, where the U.S. Senate opposed the Kyoto Protocol by 95-0, partly because it would exempt three-quarters of the world from the kind of binding CO2 controls it would impose on the United States. The McCain-Lieberman emissions cap-and-trade legislation would impose a Kyoto-style energy-rationing scheme on the United States alone. During the 107th Congress, McCain co-authored with Sen. Jon Kyl (R-Ariz.) a fierce critique of the Senate energy bill. Published in the East Valley Tribune and titled “Energy Plan Lacks Juice,” the McCain-Kyl op-ed blasts the Senate bill for including tax credits for “alternative fuel” vehicles, a mandate on refiners to manufacture gasoline from ethanol, and a requirement on power companies to generate 10 percent of their electricity from non-hydroelectric “renewable” energy sources. The irony here is over the top. Every measure Sen. McCain rightly excoriates in his op-ed as a special-interest boondoggle is a staple of Kyoto-inspired agitation. Sen. McCain has a whole lot of explaining to do. If he opposes energy taxes, why is he advocating its regulatory equivalent? If he supports the Byrd-Hagel resolution, why is he now acting to overturn it? If he opposes the anti-consumer, anti-energy provisions of the misnamed Senate “energy” bill, why is he teeing up a more lethal assault on American prosperity? ”Marlo Lewis, Jr. is senior fellow at the Competitive Enterprise Institute and can be reached via email at:” mailto:mlewis@cei.org ”See CEI’s Web site at:” https://www.cei.org

Many of you will recall the famous line from the classic movie “Marathon Man.” Dustin Hoffman starred, with Laurence Olivier featured as the dentist/torturer who drills into Dustin’s front tooth in a futile attempt to get him to reveal secrets that he doesn’t know. It makes your teeth ache just to watch.

Well, that same line can be used once again, but with an entirely different meaning. After being “tortured” for 40 years by some (not all) Democrats, it is now ”’safe”’ to be a Republican, and even mention it in public!

For business owners, what is even better is that it is also “safe” to join Small Business Hawaii. No longer will members fear that their support of SBH will result in discrimination against them by those in government with the power to award contracts, delay processing of permits and regulatory paperwork, or refer customers.

We have our best opportunity in 40 years to see some pro-business activity in the Legislature, due to the leadership of Gov. Linda Lingle. One of the best ways to get your ideas to the governor is to support SBH.

The torture has stopped, and our teeth aren’t being drilled any more.

Join Small Business Hawaii ”’Now”’ — it is ”’safe.”’

See the SBH Web site at: https://www.smallbusinesshawaii.com

”’Bud Weisbrod is a resident of Honolulu and a member of Small Business Hawaii. He can be reached via email at:”’ mailto:weisbrod@myexcel.com

Many of you will recall the famous line from the classic movie “Marathon Man.” Dustin Hoffman starred, with Laurence Olivier featured as the dentist/torturer who drills into Dustin’s front tooth in a futile attempt to get him to reveal secrets that he doesn’t know. It makes your teeth ache just to watch. Well, that same line can be used once again, but with an entirely different meaning. After being “tortured” for 40 years by some (not all) Democrats, it is now ”safe” to be a Republican, and even mention it in public! For business owners, what is even better is that it is also “safe” to join Small Business Hawaii. No longer will members fear that their support of SBH will result in discrimination against them by those in government with the power to award contracts, delay processing of permits and regulatory paperwork, or refer customers. We have our best opportunity in 40 years to see some pro-business activity in the Legislature, due to the leadership of Gov. Linda Lingle. One of the best ways to get your ideas to the governor is to support SBH. The torture has stopped, and our teeth aren’t being drilled any more. Join Small Business Hawaii ”Now” — it is ”safe.” See the SBH Web site at: https://www.smallbusinesshawaii.com ”Bud Weisbrod is a resident of Honolulu and a member of Small Business Hawaii. He can be reached via email at:” mailto:weisbrod@myexcel.com