Friday Reads
Posted: March 9, 2012 Filed under: Economy, Global Financial Crisis, House of Representatives, investment banking, Mitt Romney, morning reads, Regulation, religious extremists, Rush Limbaugh | Tags: Dennis Kucinich, Dump Rush, FED, SEC 36 Comments
Good Morning!
Well, we’ve always known Pat Robertson was a little off. Reconcile all his throw back ideas about women and the GLBT community with his views on decriminalizing marijuana, I dare you!!
“I really believe we should treat marijuana the way we treat beverage alcohol,” Mr. Robertson said in an interview on Wednesday. “I’ve never used marijuana and I don’t intend to, but it’s just one of those things that I think: this war on drugs just hasn’t succeeded.”
Mr. Robertson’s remarks echoed statements he made last week on “The 700 Club,” the signature program of his Christian Broadcasting Network, and other comments he made in 2010. While those earlier remarks were largely dismissed by his followers, Mr. Robertson has now apparently fully embraced the idea of legalizing marijuana, arguing that it is a way to bring down soaring rates of incarceration and reduce the social and financial costs.
“I believe in working with the hearts of people, and not locking them up,” he said.
Rush has lost at least 50 advertisers after his horrendous, personal attacks on a university student exercising her first amendment rights. Just what kind of advertisers does the big blowhard have left? Well, he’s picked up an online dating service for married people interested in extramarital relations. There’s your family values for you!!!
Advertisers learned something about Rush Limbaugh’s demographic this week.
“Here we thought lots of pleasant, upstanding people were listening to and enjoying the rational things Rush had to say,” dozens of companies said. “Apparently not.”
It turns out that people who really, truly still enjoy Rush Limbaugh’s show are — how do I put this? — jerks.
At least that’s what the new advertisements moving into the vast empty lot of Rush Limbaugh, Inc., implies. “Ah,” you say, as a rat runs over your foot and several people offer payday loans and try to sell you watches from their trench coats. “This place seems to have gone downhill somewhat.”
So far, he’s picked up AshleyMadison.com, the site where you go to cheat on your wife, and another Web site that is explicitly for sugar-daddy matchmaking.
Republicans in the House have basically gone after finance regulators in a way that would basically change one of the major mandates of the Fed’s economic stabilization mandate and the SEC’s ability to police the markets for fraud. The FED suggestions are outrageous. They would completely stop the FED’s ability to stimulate the economy and would change the composition of the FED board from economists to the Bank’s District Presidents who are answerable to their member banks.
The bill, which will be formally introduced later this week by Congressman Brady, would eliminate the employment leg of the dual mandate, requiring the Federal Reserve to focus only on price stability.
The legislation would also restructure the Federal Open Market Committee (FOMC). The bill would give permanent seats on the committee to the twelve regional Federal Reserve bank presidents, who are chosen by regional Federal Reserve Bank directors. Those boards are composed of private citizens.
Yesterday, SEC chairman Mary Schapiro begged Congress to increase the agency’s funding, arguing that “the rapidly expanding size and complexity of the markets presents enormous oversight challenges.” Representative Barney Frank, ranking member of the House Financial Services Committee, offered a bill to provide that funding—and Republicans voted lockstep to trash it.
Republicans on the committee offered the perverse argument that since the SEC has repeatedly suffered oversight breakdowns in the past, it’s not entitled to additional funding. Representative Jo Ann Emerson, a Missouri Republican and member of the House Appropriations Committee, echoed this argument in the hearing with Schapiro yesterday:
“I think this body is reticent to throw more money at the SEC until ya’ll have proven that you have addressed the structural problems from within…in a comprehensive way,” [Emerson said]. “Since 2001, SEC’s budget has increased over 200 percent. Despite this tremendous growth in resources over the past decade, the SEC failed to detect Ponzi schemes such as Madoff and Stanford, the U.S. financial system nearly collapsed, and judges continue to question SEC settlements and regulations.”
Further starving a regulatory agency that’s already clearly unable to handle its massive mission is not a terribly convincing argument—one would have to truly believe the SEC is completely capable of policing Wall Street but simply suffering from “structural problems,” as Emerson asserts. (To give a sense of the very real funding problems, JPMorgan Chase—only one of the 35,000 entities the SEC is tasked with regulating—spends four times the entire SEC budget on information technology alone). But it’s the only argument Republicans have—the SEC is funded entirely by fees from the financial industry, so Republicans can’t carp about the deficit.
None of these folks seem to have any idea about what caused the financial crisis nor how much the underfunding and disabling of regulators and regulators have played into all these problems It’s really disheartening.
Meanwhile, Romney has told a university student that students going to cheap schools they could afford would be better than government student loans. BTW, where are there cheap schools now?
Mr. Romney was perfectly polite to the student. He didn’t talk about the dangers of liberal indoctrination on college campuses, as Rick Santorum might have. But his warning was clear: shop around and get a good price, because you’re on your own.
“It would be popular for me to stand up and say I’m going to give you government money to pay for your college, but I’m not going to promise that,” he said, to sustained applause from the crowd at a high-tech metals assembly factory here. “Don’t just go to one that has the highest price. Go to one that has a little lower price where you can get a good education. And hopefully you’ll find that. And don’t expect the government to forgive the debt that you take on.”
There wasn’t a word about the variety of government loan programs, which have made it possible for millions of students to get college degrees. There wasn’t a word urging colleges to hold down tuition increases, as President Obama has been doing, or a suggestion that the student consider a work-study program.
And there wasn’t a word about Pell Grants, in case the student’s family had a low enough income to qualify. That may be because Mr. Romney supports the House Republican budget, which would cut Pell Grants by 25 percent or more at a time when they are needed more than ever.
Instead, the advice was pretty brutal: if you can’t afford college, look around for a scholarship (good luck with that), try to graduate in less than four years, or join the military if you want a free education.
Robert Scheer writes about Dennis Kucinich who will leave Congress after his term finishes. His district was merged with Marcy Kaptur’s and she won on Tuesday. It’s an interest profile for a quirky politician.
Kucinich never competed in that way. He has been a national symbol of resistance to excessive government power and waste. He also has been a champion of social justice. His has been a rare voice, and one way or another it must continue to be heard. Simply put, when it came to the struggle for peace over war, Dennis was the conscience of the Congress. And he was always at the forefront in defending the rights of unionized workers who once formed the backbone of a solid middle class and who are now threatened with extinction.
Kucinich will surely be back for another turn in public life. As he put it in our Playboy interview:
“I appreciate Woody Allen’s humor because one of my safety valves is an appreciation for life’s absurdities. His message is that life isn’t a funeral march to the grave. It’s a polka.”
What’s on your reading and blogging list today?
Broken Windows And The Stealing Of Hearts
Posted: March 8, 2012 Filed under: Bailout Blues, Banksters, Corporate Crime, corruption, Department of Homeland Security, Domestic Policy, double-speak, Economy, Eric Holder, ethics, financial institutions, George W. Bush, Global Financial Crisis, indefinite detention, Injustice system, Patriot Act, The Bonus Class, The Great Recession, torture, U.S. Economy 21 Comments
Yesterday I read an interesting essay by William Black over at New Economic Perspectives. In the essay, Black, who headed the forensic audit team during the S&L crisis, pulls forward the Broken Window Theory, a criminological model based on a simple and some have said simplistic idea. The theory was introduced by James Q. Wilson and received a fair amount of popularity during the 1990s, particularly in conservative circles.
Readers might remember Rudy Giuliani’s ‘war against graffiti,’ his zero-tolerance campaign in NYC. That effort, the elimination of the squeegee men and the crack down on street prostitution among other things were based on the broken window philosophy, which uses an abandoned building metaphor.
Imagine a building in any neighborhood [although Wilson focused exclusively on what he termed ‘blue-collar crime.’] The first broken window of our abandoned building if left unrepaired sends a clear message to antisocial types: no one cares about this building. So, it’s open season on all the other windows, on anything of value that’s been left behind. If the owner doesn’t care about the integrity of the building then the street tough is encouraged to vandalize and take whatever’s not nailed down.
The attitude feeds on itself or so the theory goes. Honest citizens are less likely to confront the petty thief, which only encourages others to act out in destructive, antisocial ways. Honest citizens begin to feel overwhelmed and outnumbered and stop safeguarding their own neighborhoods. What’s the point? they say. No one cares. Communities begin to self-destruct.
Now whether you buy into this crime theory or not, I think the metaphor holds when you consider what we’ve been witnessing in the degradation of our financial markets, our legal system, even the refusal to admit that ‘there’s trouble in River City.’
As Professor Black points out, if we were to take Wilson’s theory and apply it to the explosion of ‘white collar crime’ within our financial system, it would be a major step in restoring the integrity of our system and bolstering peer pressure against misconduct. As it stands now, Wall Street movers and shakers and their DC handmaidens have implemented business-as-usual policies that reward the thief and punish the whistleblower. As Black points out in the essay:
We have adopted executive and professional compensation systems that are exceptionally criminogenic. We have excused and ignored the endemic “earnings management” that is the inherent result of these compensation policies and the inherent degradation of professionalism that results from allowing CEOs to create a Gresham’s dynamic among appraisers, auditors, credit rating agencies, and stock analysts. The intellectual father of modern executive compensation, Michael Jensen, now warns about his Frankenstein creation. He argues that one of our problems is dishonesty about the results. Surveys indicate that the great bulk of CFOs claim that it is essential to manipulate earnings. Jensen explains that the manipulation inherently reduces shareholder value and insists that it be called “lying.” I have seen Mary Jo White, the former U.S. Attorney for the Southern District of New York, who now defends senior managers, lecture that there is “good” “earnings management.”
My husband had some unsettling experience in this area. Early in his career, he worked as a CPA [the two companies will remain nameless].
But in each case, he was ‘asked’ to clean up the numbers, make them look better than they were. He refused and found himself on the street, looking for employment elsewhere. I remember him saying at the time, ‘Look, I’m a numbers guy. I’ve never been good at fiction writing.’ This was back in the late 70s early 80s, so this attitude has been a long time in the making. Now, we’re seeing accounting fraud that is literally off the charts. Is it any wonder the country’s financial system is on life support?
We can see the destructive results of this careless, corrupt posturing all around us. Professor Black continued:
Fiduciary duties are critical means of preventing broken windows from occurring and making it likely that any broken windows in corporate governance will soon be remedied, yet we have steadily weakened fiduciary duties. For example, Delaware now allows the elimination of the fiduciary duty of care as long as the shareholders approve. Court decisions have increasingly weakened the fiduciary duties of loyalty and care. The Chamber of Commerce’s most recent priorities have been to weaken Sarbanes-Oxley and the Foreign Corrupt Practices Act. We have made it exceptionally difficult for shareholders who are victims of securities fraud to bring civil suits against the officers and entities that led or aided and abetted the securities fraud. The Private Securities Litigation Reform Act of 1995 (PSLRA) has achieved its true intended purpose – making it exceptionally difficult for shareholders who are the victims of securities fraud to bring even the most meritorious securities fraud action.
Reading this, I immediately sensed we could apply the metaphor just as easily to our legal predicament. Dak wrote to this yesterday—about the disheartening disrepair of our justice system, which was badly wounded during the Bush/Cheney years with the help of eager lawyers like John Yoo, stretching, reinterpreting, rewriting the parameters on the subjects of torture, indefinite detention, rendition, etc.
Not to be outdone, Eric Holder stood before Northwestern University’s Law School the other day and with the same twisted logic, explained away due process, otherwise known as ‘how to justify assassination.’ In this case, American citizens, those the President deems are a threat to the Nation, can be killed on native ground or foreign soil. Jonathon Turley, law professor at George Washington University and frequent legal commentator in the media, headed a recent blog post as follows: Holder Promises to Kill Citizens with Care.
Sorry, this does not make me feel better. What it does make me think is lawlessness simply breeds more lawlessness. The Broken Window theory writ large. As Turley explained:
The choice of a law school was a curious place for discussion of authoritarian powers. Obama has replaced the constitutional protections afforded to citizens with a “trust me” pledge that Holder repeated yesterday at Northwestern. The good news is that Holder promised not to hunt citizens for sport.
Holder proclaimed that “The president may use force abroad against a senior operational leader of a foreign terrorist organization with which the United States is at war — even if that individual happens to be a U.S. citizen.” The use of the word “abroad” is interesting since senior Administration officials have asserted that the President may kill an American anywhere and anytime, including the United States. Holder’s speech does not materially limit that claimed authority. He merely assures citizens that Obama will only kill those of us he finds abroad and a significant threat. Notably, Holder added “Our legal authority is not limited to the battlefields in Afghanistan.”
Turley went on to comment that Holder was vague, to say the least, when it came to the use of these ‘new’ governmental/executive powers, claiming that the powers-that-be will only kill citizens when:
“the consent of the nation involved or after a determination that the nation is unable or unwilling to deal effectively with a threat to the United States.”
And as far as ‘due process?” Holder declared that:
“a careful and thorough executive branch review of the facts in a case amounts to ‘due process.’”
Chilling! As Turley grimly noted in an earlier post, this is no longer the land of the free.
Seemingly unrelated was this report from the New York Times: the heart of Dublin’s 12th-century patron saint was stolen earlier this week from Christ’s Church Cathedral. The heart of Laurence O’Toole had been housed in a heart-shaped box, safely secured [or so church authorities believed] within an iron cage. The relic’s disappearance was preceded by a rash of reliquary robberies from churches, monasteries and convents around Ireland. According to the article:
The small cage hosting the heart-shaped box containing the relic was tucked away in an innocuous alcove at the side of a small altar. Visitors to the cathedral on Monday stared at the twisted bars and the empty space behind. The bars themselves were sundered evenly.
According to Dermot Dunne, dean of Christ Church, the box had lain undisturbed for centuries. He had no idea why someone would take it.
Whether it’s the heart of a saint or the heart of a Nation, the theft is a grievous insult. The crime betrays the public trust and our basic sense of decency. But the thieves of O’Tooles’s heart performed a curious act before exiting.
The Irish culprits lit candles at two of the Cathedral’s altars. Which means the perpetrators possessed, at the very least, an ironic sense of tradition.
The same cannot be said of our homegrown hooligans. Crass greed and the lust for unlimited power have their own dark tradition. As Americans, we do not expect vice to be confused with virtue. In the past, we could not imagine a blatant disrespect for the Rule of Law–crimes ignored, excused, then openly declared necessary for whatever raison du moment.
Not here, we told ourselves repeatedly. Not in the United States.
Perhaps, we should light candles of our own. A small devotion for the lost and dying.
Thursday Reads
Posted: March 8, 2012 Filed under: morning reads, Republican presidential politics, U.S. Politics, War on Women | Tags: gene sequencing, iran, John Kerry, Mitt Romney, nuclear weapons, public schools, Religious Right, Rick Santorum 47 CommentsGood Morning!!
I just love the New Yorker cover with Rick Santorum riding in the dog carrier on top of Mitt Romney’s car. Isn’t it great? Santorum has been “dogging” Romney’s footsteps around the country, nipping at his heels, so to speak. I hope he won’t have an “accident” up there on Romney’s car roof.
I read some interesting analysis of the Super Tuesday results at The Daily Beast yesterday. You may have read the same articles already, but I still think they are worth discussing.
Michelle Goldberg explains why comparing Romney to John Kerry doesn’t quite work.
Yes, both are rich, socially maladroit, and from Massachusetts. Both have a history of being less than steadfast on important issues. But if Democrats weren’t ecstatic about Kerry in 2004, most still found him broadly acceptable. He had a history as a dashing liberal hero, returning from Vietnam to become a leading voice against that hated war. Certainly, he disappointed liberals by voting for the Iraq invasion, but he otherwise shared their values.
Romney, by contrast, is limping toward the Republican nomination despite being rejected, over and over again, by the Republican base. In this respect, he’s more like Joe Lieberman, who was despised by his party’s grassroots even before he endorsed John McCain for president….[I]t’s hard to recall the last time either party nominated someone so far out of step with its basic ethos. What this means is, should Romney lose to Obama, our politics will get even more poisonous, as activist conservatives blame their party’s perceived moderation for its failure.
Which is why I wish Rick Santorum would win the nomination. It would be a disaster of Goldwater proportions, and maybe the party would begin to understand that they are completely out of sync with most Americans.
Michael Tomasky had some advice for Mitt Romney:
Romney eked it out in Ohio, but he still managed to emerge bruised from Super Tuesday. He won Massachusetts. Big woop. Vermont, ditto. In Virginia, he won, but he won in as embarrassing a fashion as it’s possible to win something. With only him and cranky Ron Paul on the ballot, Romney managed just 59 percent of the vote to Paul’s 41. When Ron Paul is winning 41 percent of the vote, it’s time to stop and smell the rotting roses. And then Romney won some caucuses in some who-cares states that would vote red in November if Rush Limbaugh’s hamster was on the ballot, and that in any case have about as many electoral votes as Baltic Street has value in Monopoly. Who cares?
But, says Tomasky, Romney doesn’t seem to get that no one really likes him and he’s only winning because people think maybe he has a better chance in the general election than the other wingnut candidates. According to Tomasky, on Tuesday night Romney just gave his regular stump speech–which hasn’t been revised even though the economy has been improving and Obama has been doing much better in the polls.
He just seems to think that he can outspend these absurdly underfinanced opponents, bury them, these doorstep foundlings, these third-raters, pound them into submission with attack ads, and move on to the next quarry….
Romney has to do something dramatic to change the narrative, says Tomasky.
But everything we’ve seen from the guy shows that he’s completely incapable. He’ll keep grinding out just the number of wins he needs, by just the margins he needs. Remember Mario Cuomo’s famous and brilliant quote, about how a politician campaigns in poetry but governs in prose? Romney campaigns in prose. And dull prose. He’s the James Fennimore Cooper of the hustings. Makes you wonder how he’d govern, but fortunately, it seems we’ll never know.
I love that! “The James Fennimore Cooper of the hustings.” It’s so true. Romney is dull as dirt.
But the Romney camp is claiming it’s all over, despite their candidate’s weak showing in Ohio.
Mitt Romney’s campaign gathered the national press corps in their campaign war room this morning to deliver a simple message: It would take an “act of God” for any candidate not named Mitt Romney to win the Republican nomination.
The Boston-based campaign projected confidence in Romney’s ability to win the nomination given the emerging delegate math in the campaign following last night’s Super Tuesday contests. “We will get to 1,144 whether it’s on someone else’s timeline, or on our timeline,” said one top Romney aide. “We will get to 1,144 and be the Republican nominee.”
It kind of reminds me of 2008, when the Obama crowd kept yakking about “the math” and screaming “why won’t the stupid bitch quit?” Somehow I don’t think Santorum is going to quit after he trounced Romney in Tennessee and came within one percentage point of beating him in Ohio. The next few primaries will be in Alabama, Mississippi, Louisiana, and Kansas–not friendly territory for Romney.
On Tuesday, I wrote a post about the irresponsible speeches the Republican candidates made to AIPAC that morning.
Most irresponsible of all was the speech by Mitt Romney, in which he claimed in the face of strong evidence to the contrary that the Iranians “are making rapid progress” toward building nuclear weapons. He basically called the current Secretary of Defense and the President liars. He has also been going around the country claiming that if Barack Obama is reelected there will definitely be nuclear war. I can’t believe he’s been getting away with it for so long.
I’m glad to report that John Kerry has an op-ed in today’s Washington Post in which he counters Romney’s irresponsible lies. Kerry writes:
While wise Republicans stress the perils of loose war talk and the value of engagement to isolate Iran, Romney seeks to create political division with an attack on the Obama administration’s Iran policy that is as inaccurate as it is aggressive.
I join this debate because the nuclear issue with Iran is deadly serious business. It should invite sobriety and thoughtfulness, not sloganeering and sound bites. The stakes are far too high for it to become just another applause line on the stump. Idle talk of war only helps Iran by spooking the tight oil market and increasing the price of the Iranian crude that pays for its nuclear program.
Creating false differences with President Obama to score political points does nothing to move Iran off a dangerous nuclear course. Worse, Romney does not even do Americans the courtesy of describing how he would do anything different from what the Obama administration has already done.
Kerry provides specific examples of Romney’s “wrongheaded” statements, so go read the whole thing if you can. Thank goodness one senior Democrat has finally slapped Romney down.
Charlie Pierce has a post on the “respectable” pundits who are now defending Rush Limbaugh. First it was Bill Maher, and yesterday Michael Kinsley chimed in. Here’s Pierce’s takedown of former New Republic editor Kinsley:
And then there is Michael Kinsley, a man who has dedicated his life to bringing Olympian insufferability to an art form. Kinsley is what you’d get if you infused David Brooks with the madcap humor you find around the doughnut cart at The New Republic. You see, says Michael, everybody involved in this is just a big fake because nobody really believes anything anyway, and oxen are always being gored, and it’s all a silly stupid game, so suck it up, Sandra. Tell your folks about the marketplace of ideas:
Nevertheless, the self-righteous parade out the door by Limbaugh’s advertisers is hard to stomach. Had they never listened to Rush before, in all the years they had been paying for commercials on his show? His sliming of a barely known law student may be a new low — even after what he’s said about Nancy Pelosi and Michelle Obama — but it’s not a huge gap.
This is Kinsley being deliberately stupid, probably because he figures that’s the only thing the lesser orders out here understand. We can’t do the right thing now because we didn’t do the right thing then? We couldn’t criticize George Wallace for being a racist in 1963 because we didn’t criticize James Vardaman for being one in 1918? Murrow’s broadcast on Joe McCarthy was somehow illegitimate because he hadn’t been doing one a week for the previous three years? Watergate doesn’t count because LBJ bugged Nixon’s plane? The concept of critical mass is just another “insincere” function of our politics? And, I am sorry, but what he did to “a barely known law student” is the whole goddamn point. Kinsley’s imperial disdain has led him into a cul de sac of glibly arrogant misanthropy.
Go read the rest. It’s brilliant!
In other news, The New York Times has an article on a scientist who has developed a machine that will dramatically bring down the cost of gene sequencing and pave the way for medical advances.
In Silicon Valley, the line between computing and biology has begun to blur in a way that could have enormous consequences for human longevity.
Bill Banyai, an optical physicist at Complete Genomics, has helped make that happen. When he began developing a gene sequencing machine, he relied heavily on his background at two computer networking start-up companies. His digital expertise was essential in designing a factory that automated and greatly lowered the cost of mapping the three billion base pairs that form the human genome.
The promise is that low-cost gene sequencing will lead to a new era of personalized medicine, yielding new approaches for treating cancers and other serious diseases.
Pretty exciting.
There’s a scary article at Alternet on “The Religious Right’s Plot To Take Control Of Our Public Schools.” It’s a review of a book by Katherine Stewart, “The Good News Club: The Stealth Assault on America’s Children.” Here’s the teaser line:
The people who brought you “Jesus Camp” are moving into your neighborhood school. And there’s not a damn thing you can do about it.
Yikes! Go check it out.
Those are my recommendations for today. What are you reading and blogging about?









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