Jeff Pelline's Sierra Foothills Report

More commentary is surfacing to suggest that banks need to be prodded to make more loans in order for the economy to recover. It was a topic I raised the other day.

In the Wall Street Journal, Alan Blinder, a professor of economics at Princeton writes:

“A fourth way out. There is a fourth weapon, which the Fed chairman has not mentioned: easing up on healthy banks that are willing to make loans. Given bank examiners’ record of prior laxity, it is understandable that they have now turned into stern disciplinarians, scowling at any banker who makes a loan that might lose a nickel. That tough attitude keeps the banks safe, but it also starves the economy of credit.

Well, quite a few of those bank examiners happen to work for the Fed. It would probably do some good, maybe even a lot, if word came down from on high that some modest loan losses are not sinful, but rather a normal part of the lending business.

So that’s the menu. The Fed had better study it carefully, for if the economy doesn’t perk up, it will soon be time to fire the weak ammunition.”

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The other day I wrote that the race for Senator Dave Cox’s seat was the latest example of a divided GOP, spurred largely by the inflexible ideologies of the “hard right” and our Congressman Tom McClintock.

This race for Cox’s seat pits Ted Gaines against Roger Niello.

Niello’s longtime supporters include Cox and Doug Ose, who lost to McClintock in the primary two years ago. Gaines has received money from McClintock and is a regular at tea party gatherings (including the one on Sept. 12 in Sacramento that I just wrote about).

The details are here.

And sure enough, just like clockwork, McClintock this week weighed in with an endorsement for Ted Gaines in the senate race:

“ROSEVILLE, CA – - United States Representative Tom McClintock today endorsed Assemblyman Ted Gaines in the First Senate District Special Election.

“Ted Gaines is the conservative in the race and the one candidate who voters can trust to never raise their taxes,” said McClintock. “He understands that over-spending and an inability to say no to special interests is the root cause of the state’s yearly budget woes and that cutting bad deals and compromising on principles only makes the problem worse.”

The Governor called a Special Election for January 4, 2011 to fill the remainder of Senator Cox’s term. The primary to determine which candidates appear on the January 4th ballot will be held November 2. The top vote-getters from each major party will move on to the January ballot.

“I am honored to receive Representative Tom McClintock’s endorsement. Tom is a nationally respected conservative leader and very popular with voters in our Senate District. I look forward to working with him to protect and represent the taxpayers of our area and state,” said Gaines.

Ted Gaines is a small business owner and former Placer County Supervisor. The First Senate district is comprised of twelve counties, stretching from the Oregon border in the north through Mono County in the south. Approximately 34 percent of likely voters reside in the 4th Assembly district, represented by Ted Gaines. The legislator who represents the second most voters is Democrat Alyson Huber, with 21% of First Senate District voters residing in her Assembly district. Additional information about Ted Gaines and his Senate campaign can be found at http://www.TedGaines.com.

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It’s unfortunate to see two of my favorite merchants — Andy Howard of Emma Nevada House and Chuck Shea of the Parsonage — sparring over our B&B ordinance in Nevada City.

Andy, who also is the city treasurer, wants to open a B&B at the the Aaron Sargeant House. Chuck’s point: A law is on the books, passed by the voters, that prevents this. Chuck runs the Parsonage B&B.

I suppose you could joke about the B&B wars in a quaint foothills town. But the stakes are high: We depend on lodging to help make our downtown vibrant.

What’s unfortunate about this “civil” war is that the “enemy” — or competitor if you will — is all the Sierra foothills towns and other tourist destinations in California that want to attract the same visitors we do.

Both Chuck and Andy have done their part to attract visitors here. Let’s hope the B&B dispute doesn’t distract from the “bigger picture.” The vibrancy of the town depends on a collaborative approach.

What would you do?

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Joe Miller, a lawyer and Army veteran backed by former Alaska Gov. Sarah Palin, is holding a narrow lead over Sen. Lisa Murkowski, an 8-year incumbent, for an Alaska Senate seat in the primary.

The results won’t be certified for at least three weeks.

Miller potentially could join tea party candidates Sharron Angle of Nevada and Rand Paul of Kentucky as Senate nominees.

The Washington Post has drawn up a map called “The politics of Palin,” an endorsement tracker. It is here.

In primary races so far, it shows that 20 of her endorsements have won; 10 have lost and 12 are upcoming or have no primary.

In California, for example, Palin endorsed Carly Fiorina, who won against Tom Campbell in the primary,

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I can understand why parents spoke out this week about wanting a public school where the now shuddered Nevada City Elementary School now stands instead of a new courthouse.

Who wouldn’t? It’s been a school site for decades.

But a decision was just made to close the school. School enrollment is declining, part of a long-term trend. Our county population is aging and declining. We have another elementary school in the district — Gold Run.

What’s at stake is now whether we lose a downtown courthouse as well — and the jobs and economic benefit that goes with it.

We could easily wind up with no downtown public school and no downtown courthouse. While a charter school such as Forest Charter could rent the Nevada City Elementary space, that would still create yet another downtown vacancy to fill.

And we’d be left with lots of challenges: Finding the money to keep maintaining both historic buildings; finding tenants; and finding something to fill the big economic void left from losing the courthouse.

We’re not just talking about the courthouse jobs; we’re also talking about the downtown jobs tied to it — in the DA’s office, public defender’s office and probation department, as well as the defense lawyers and other clerical jobs.

All these people walk to town and eat lunch or shop. There’s no driving involved. It’s what makes a downtown vibrant.

I’m starting to get the feeling that we’re not seeing the forest through the trees — again — and we’re going to pay dearly this time.

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