Light Bulbs Saved But American Light Diminished

We can no longer call Congress a do-nothing farce.  In case you haven’t heard our esteemed legislators have ‘saved’ the incandescent light bulb from its 2012 banishment.  Which means incandescent hoarders can display their beloved bulbs in public, display them with pride and patriotism—let freedom shine–without the fear of neighborly condemnation or the riot police knocking down the door.

Let there be light!

If only.

Other things we might have considered saving in 2011:

The Middle Class; Death by Strangulation

This week we were gifted with the sobering statistic that 50% of the American public is now considered ‘low income.’  Of course, the naysayers are quick to point out that this is a gross exaggeration, that terms like ‘low-income’ and ‘poverty’ are relative terms.  Go to Africa, they say.  Perhaps, Haiti would do.  Or North Korea.  Then you’ll know the ‘real’ meaning of misery.

Sorry but this strained logic belies the fact that unlike the above examples the United States of America is a developed world power. We beat our chests and claim ‘exceptionalism’ on the world stage yet are willing to use third world comparisons to shrug off bad news?  Lame comparisons are simply an exercise in don’t believe your lying eyes and for God’s sake never distrust the status quo.  What are you?  Some sort of Commie!

A small factoid from the St. Louis Federal Reserve, Economic Research group: the average length of unemployment in the United States is now over 40 weeks. And another from the New America Foundation:

The share of middle-income jobs in the United States has fallen from 52% in 1980 to 42% in 2010.

Middle income jobs have been replaced by low-income jobs, which now make up 41% of the work force.

The American Economy; Bleeding Out While Doctors Look On

While average citizens lost wealth and continue to struggle with unemployment and underemployment, face prospects of social programs stripped down to nothing, we’ve been gifted once again with startling news. The Federal Reserve over a three-year period bailed out large banks and corporations, domestic and foreign, to the tune of 29 trillion dollars.

Twenty-nine trillion!  To put this in some perspective one trillion dollars could be imagined thusly:

If you were to count to one thousand, one number every second, it would take seventeen minutes. Counting to one million at the same rate would take twelve days (counting nonstop, btw, day and night).  Counting to one billion would take thirty-two years.

Now, drum roll please:  Counting to one trillion?  Would take 32,000 years.

Then multiply by 29.

Meanwhile, with the money spigots wide open spewing a gusher of magic money, small business loans [the sort that Main Street depends on to fuel growth and employment, loans of 1 million or less] dropped to a 12-year low. Why is this a problem?  Because despite the GOP’s drone that the top 1% of the population are the ‘job creators,’ businesses with fewer than 500 employees created 65 percent of the jobs between 1993 and 2009, according to the Small Business Administration.

Another withering fact: between 2001 to 2009, 42,000+ factories and manufacturing-related businesses closed for good.  And, of course, the jobs associated with those companies went bye-bye, moved off-shore to exploit lower wages and the nefarious environmental regulations that vulture capitalists love to hate.

In addition, our trade deficits with China [84 billion in 2001 to 278 billion in 2010] and other countries [oil imports represent over 60% of our current deficit] have bled and continue to bleed jobs and wealth from the US.  Trade deficits represent a countries’ imbalance in terms of importing to exporting and the rate at which a nation’s wealth is transferred into foreign markets.  As a country, we’re being bled to death, according to the AAM.

The impact of the trade deficit with China extends beyond U.S. jobs lost or displaced, according to the Alliance for American Manufacturing (AAM). Competition with China and countries like it has resulted in lower wages and less bargaining power for U.S. workers in manufacturing and for all workers with less than a four-year college degree.

And yet the trade deficits go on unabated.  A recent example was the passage of the trade deals with Panama, Columbia and S. Korea, heralded as a great deal for the United States.  But according to Dylan Ratigan, MSNBC:

The key question we have to face as a country is how we want to govern ourselves. From World War II until NAFTA, our trading policies were based on geopolitical needs and what would increase prosperity for America. Since NAFTA, however, the mantra of free trade has been warped to generate rights for international capital and nothing else. The agreements Congress and the President are pushing continue this unfortunate trend. What unfettered capital wants is to avoid taxes, regulations, or any state power whatsoever.

In regards to oil imports, the drumbeat for several years has been: Drill, Baby, Drill. It’s all about jobs and keeping America strong, our oil-financed legislators are likely to say.  The problem is regulation, they’ll add, and big government working against the blessings of the free market.   Really?  Not so, says Dylan Ratigan.

We do not have a free market for energy, because the actual cost of fossil fuel in our economy is not reflected at the pump; the military’s not in there, the environment’s not in there, and there’s a wide variety of differing fuel subsidies and tax treatments for all sorts of different fuel sources depending on their relation with our government. So, how can a marketplace decide the fuel source, when one fuel, particularly being gasoline and fossil fuels, have such a substantial comparative subsidy?”

The answer is: the marketplace cannot decide the cost of fossil fuel or entertain the cost-effectiveness of alternative sources because the game is rigged as it has been for a century+ where fossil fuels rule the day, pay off politicians and are willing to drive us into economic and environmental ruin for the sake of profit and power.

Vulture Capitalism writ large.

The American Homeowner; Death by Drowning

In the second quarter of 2011, 10.9 million Americans or 22.5% of homeowners were ‘underwater’ with their mortgages, namely they owed more on their mortgages than their houses were actually worth, a result of the real estate collapse of 2007-2008.  Although the Home Affordable Refinance Program [HARP] has fallen short to relieve homeowners from onerous, often ballooning mortgage payments and subsequent home foreclosure, the Obama Administration has attempted to remove the key barriers in the refinancing procedures. This is expected to expand mortgage refi at today’s lower interest rate to larger numbers of struggling homeowners, particularly those with little to no equity in their homes.

Will it work?

The jury is still out, but at best this expanded program will only be available to Fannie Mae and Freddie Mac-backed loans.

In addition to providing relief, many citizens expected a thorough and public investigation into exactly what went wrong in the mortgage industry. We expected our own Pecora moment.

But that didn’t happen.

In fact the Administration has attempted to rush through settlements with major banks, requiring no admission of wrong doing and attaching immunity from civil or criminal liability to sweeten the deal. Countering this, several state Attorney Generals [five to date] have refused to accept the 50-state agreement and have proceeded with independent investigations of their own.  And just this past week, House Representative Tammy Baldwin [D-WI] introduced a resolution to block any agreement on the national foreclosure question, without proper and thorough investigation. Immunity from civil and/or criminal liability would be stripped and fraudulent practices prosecuted fully under the Rule of Law.

But still, for the 22.5% of American homeowners, the water level is already chin-high and rising fast.

Civil Liberties; Gutting of the Bill of Rights

Perhaps no other images brought home the dwindling nature of American civil liberties than the recent round up of Occupy Wall Street protesters.  We’ve watched young women pepper-sprayed, protesters manhandled and in one instance a young Iraqi veteran nearly killed by police who appeared ready for WWIII rather than crowd dispersal.  On several occasions over-zealous police action was caught on film not by the press but by protesters and onlookers.

In addition, we now know that drones developed for war applications have been deployed in country and that drone use is being marketed to police departments throughout the country.  Security is big business.

Obviously, the First Amendment’s guarantee to peaceable assembly is not.  And privacy?  Forget about it!

Add this to the Administration’s successful kill order on extremist cleric Anwar al-Awlaki, an American citizen operating in Yemen, a kill order without benefit of due process. Otherwise known as execution without trial.  We can argue about the threat of the man but there is no argument about the danger of precedent and the shredding of the Rule of Law.  And so, should we be surprised by the most recent outrage, the passage of an indefinite detention authority tucked inside the 2012 National Defense Authorization Act?  The bill codifies the right of the President to order the arrest and indefinite detention of US citizens suspected of terrorism.  No trial, no appeal.  You can now be ‘disappeared,’ lawfully.

One fight that did end well [at least temporarily] was the controversial and previously reported Stop Online Piracy Act [SOPA].  The discussions between legislators were abruptly adjourned after stiff condemnation by online biggies Google, Wikipedia and even computer scientist Vint Cerf , one of the founders of the Internet, who claimed that the bill’s passage would begin “a worldwide arms race of unprecedented censorship of the Web.”

Rights of Women; Assaults Continue

In the contradictory world of Far Right extremists, where individual liberty is celebrated and government intrusion condemned, the individual rights of women and their reproductive decisions are the lone exception.  Family planning, contraception, abortion, even ordinary ob/gyn screenings are suspect and thereby targets of defunding and all manner of attack.  Bills have littered the landscape calling for the elimination of all abortive measures, even when a woman’s life and/or future fertility is in jeopardy.  The heartbeat of the unborn is made sacred, while the lives of the fully realized female is continually denigrated, dismissed and derided.  Personhood resolutions have been raised in referendums [and thankfully voted down], where the fertilized egg would be designated as a person with full legal rights under the law.

Fertilized eggs and corporations.  Perfect together.

The insanity of these rigid, ridiculous demands from zealots are all too real and dangerous when applied to the actual world.  Miscarriage, for instance, a completely normal biological occurrence, would take on the aura of a criminal act, requiring an investigation.  By the egg or zygote police, I imagine. Or a woman who suffers an ectopic pregnancy could be left to bleed until doctors were convinced of the unborn ‘person’s’ lack of viability.  The woman’s health is secondary in this scenario.

The personhood resolutions would also deny women certain contraceptive measures.  For instance, the day after pill would be in violation.  And, in fact, Health and Human Services’ recently overruled the FDA’s recommendation on Plan B for young women under the age of 18 and refused to lift the emergency contraception’s restriction.

The assault on women’s rights have been unrelenting, not only in terms of reproductive decisions but in basic health services.  Planned Parenthood and their related clinics and facilities provide services to many poor to middle income women, offering important medical screenings, tests for cancer, diabetes, high-blood pressure, etc.  Only 3% of what Planned Parenthood does is related to abortion services.  And yet, the 90-year organization has become the Boogie Man for right-wing fundamentalists, who would deny many women the only health provider they have.

Sorry, the barefoot and pregnant dictum has no place in the 21st Century.

Our Children; Gross Neglect of Our Most Important Resource

A higher percentage of children today are living in poverty than was the case in 1975.  The rate of poverty has increased every year for the last four years, from 16.9 percent to nearly 22 percent as of 2010.  In the UK and France that number is under 10%.  The 2011 Child Well Being Index indicates that it is American children, the country’s future, who will bear the greatest damage by widening income disparities and proposed cuts to education, food stamps and health insurance programs.

Some sobering factoids:

Child homelessness has risen 33% in the last 3 years to 1.6 million

There are over eight million children in the United States today that are not covered by health insurance.

Today, one out of every seven Americans is on food stamps and one out of every four American children is on food stamps.

Nearly 20 million children participate in school lunch programs.

This is not what Democracy looks like.

The Poor, the Immigrant and/or Muslims; The Inadequacies of Scapegoating

Scapegoating has a long history, even Biblical references, where a goat is used as a vessel of purification.  The sins of the community are spiritually transferred to the animal after which Mr. Goat is banished to the wilderness.

Out of sight, out of mind.

In times of social unrest and/or economic distress, the act of scapegoating is often employed as a distraction, a way of diverting the public’s attention from the real problems and their causes . . . to something or someone else.  Scapegoating has been popular of late.

It’s the fault of the poor, the hangers on, the moochers.  Michelle Bachmann quoted Paul the Apostle:

“He who does not work, neither shall he eat.”

That would imply the poor are merely shirkers, those expecting a free lunch.  Tell that to the one in four children surviving on food stamps.  If Newt Gingrich and his ilk are to be taken seriously, the problem can be solved by revoking Child Labor Laws or having school children take on the school’s janitorial services.

Better yet, cut all safety nets.

Immigrants, too, have been cast as the country’s main economic problem.  Too many Latinos taking away American jobs.  We’ve all heard it. Only the number of illegal immigrants entering the country has been shrinking dramatically since the Great Slump, the biggest population decline in the last 20 years.

Unemployment, however, is still with us.

With the immigrant bashing, deportation and subsequent population shrinkage, Georgia and several other states had a difficult time harvesting their crop this year without their standard work force in place.

Be careful what you wish for.

Since 9/11, Muslims have been targeted as the root of all our problems, basically an evil agent working to undermine the country . Anti-Muslim sentiment has risen with irrational fears over Sharia Law dominating, perhaps even replacing the American Constitution.  Last week, hardware giant Lowe’s pulled ads from a reality show, ‘All American Muslim,’ in response to a conservative Christian group, that contended:

Clearly this program is attempting to manipulate Americans into ignoring the threat of jihad and to influence them to believe that being concerned about the jihad threat would somehow victimize these nice people in this show . . .

It’s disturbing to read something that ugly.  And it created a huge PR stink for Lowe’s, rightfully so.

Also important to note is that Muslim Americans represent approximately 6 million citizens, a quarter of whom are African American converts.  In a country of 311 million?  That’s a tiny, tiny percentage.

And on 9/11?  People of all faiths died, including Muslims.

Pointing fingers in all the wrong directions will not cure the country’s financial crisis, anymore than wishing for quick, easy solutions.  Saving what’s best about our country–our religious tolerance—is far more important.

There were many things worth saving in 2011.  But hey, at least we rescued the American incandescent light bulb.

I feel so much better.  How about you?


Have We Died and Gone to Heaven?

Just read a heads-up from OpEd News that Tammy Baldwin [WI] has proposed H.Con Res. 85 for consideration to prevent any Wall Street settlement[s] and/or immunity against criminal or civil charges, where fraud [aka criminal activity] is indicated, requiring investigation and subsequent prosecution by Federal and state authorities.

Halleluiah!

This is in addition to the investigations that Attorney Generals Eric Schneiderman [NY], Beau Biden [DE], Martha Coakley [MA], Catherine Cortez Masto [NV] and Karmala D. Harris [CA] are pursuing in the mortgage foreclosure crisis, namely robosigning, origination and securities fraud, as well as NY District Court Judge Jed Rakoff, who notably [and bravely] refused to sign off on a ‘deal’ between the SEC and Citigroup in another case involving securities fraud.

Forty-eight representatives have signed to co-sponsor the proposed bill. I think it’s safe to say that the Occupy Wall St. Movement has had an impact, voicing the concerns and anger of the 99%, the ordinary citizen, all of us, who would be thrown into the clink for breaking the law.  Particularly for brazen theft.  Yet bank CEOs and managers, mortgage servicers, realtors, accountants, lawyers and variety of regulators and auditors have been routinely given a pass [get out of jail card[.

Dare I say our lawmakers are finally listening?  Let’s hope so because unless the Rule of Law is re-established unequivocally there can be no faith in the system. The Law applies to all or it is invalidated, applying to none.

Thumbs up to Congresswoman Baldwin [who is running for the Wisconsin Senate seat in 2012] and her colleagues listed below.  If one of these gentlemen or gentlewomen represent your district, an appreciative email might be in order.  If your representative’s name does not appear you may want to send a questioning email or pick up the phone–just to say ‘hello’ and btw why aren’t you supporting The Rule of Law?

Those of us not in the streets, still have our voices.

Let them be heard.

Rep. Earl Blumenauer [OR]

Rep. Michael Capuano  [MA]

Rep. Andre Carson [IN]

Rep. David Cicilline [RI]

Rep. Steve Cohen [TN]

Rep. John Conyers [MI]

Rep. Elijah Cummings [MD]

Rep. Danny Davis [IL]

Rep. Peter DeFazio [OR]

Rep. Keith Ellison[MN]

Rep. Bob Filner[CA]

Rep. Marcia Fudge [OH]

Rep. Raul Grijalva [AZ]

Rep. Luis Gutierrez [AZ]

Rep. Janice Hahn [CA]

Rep. Alcee Hastings [FL]

Rep. Brian Higgins [NY]

Rep. Rep. Maurice Hinchey [NY]

Rep. Rush Holt [NJ]

Rep. Michael Honda [CA]

Rep. Jay Inslee [WA]

Rep. Jesse Jackson [IL]

Rep. Henry Johnson [GA]

Rep. Marcy Kaptur [OH]

Rep. Dennis Kucinich [OH]

Rep. James Langevin [RI]

Rep. John Larson [CT]

Rep. Barbara Lee [CA]

Rep. Edward Markey [MA]

Rep. Doris Matsui [CA]

Rep. James McDermott [WA]

Rep. James McGovern [MA]

Rep. Gwen Moore [WI]

Rep. Grace Napolitano [CA]

Del.   Eleanor Norton [DC]

Rep. John Olver [MA]

Rep. Mike Quigley [IL]

Rep. Bobby Rush [IL]

Rep. Loretta Sanchez [CA]

Rep. Janice Schakowsky [IL]

Rep. Louise Slaughter [NY]

Rep. Fortney Stark [CA]

Rep. Michael Thompson [CA]

Rep. John Tierney [MA]

Rep. Edolphus Towns [NY]

Rep. Niki Tsongas [MA]

Rep. Maxine Waters [CA]

Rep. Lynn Woolsy [CA]

UPDATE: Just received an email indicating that cosponsors now number 50 [don’t have the additional names].


In the Land of White Ribbons

First we had the Arab Spring then the European Summer.  The American Autumn manifested itself in the Occupy Wall St. Movement.

Welcome the Russian Winter.

Saturday nearly 35,000 young, mostly university-educated protesters, the new Russian middle class, gathered in Moscow in peaceful demonstration.  Reportedly, a police presence on the order of 50,000 greeted them.  But still they came and marched to voice opposition to Russia’s recent election results.  Vladimir Putin’s party won the parliamentary election after multiple reports of election fraud and ballot box stuffing.  For instance, in Chechnya [hardly a place of Putin-love] the party pulled 94% of the vote.  Putin has announced his plans to run in Russia’s March presidential elections to the dismay of many citizens, who charge that fraud and corruption run rampant throughout the country’s political system.

Demonstrators, donning white ribbons, marched in various cities around the country to say: Enough is enough.

Dismissed by the official Russian press, the white ribbon demonstrators were ignored by state television, which focused on small, flag-waving pro-Putin groups. How did the word get out?  Social media—Facebook and twitter.

In an attempt to disrupt the protests, Russian authorities circulated rumors that young men present at the rallies could be stopped by police and conscripted into the army.  Health officials reportedly warned citizens to stay home for fear of contracting a virulent flu or Sars.  Twitter feeds were jammed and robo-calls flooded phone lines with messages of state propaganda.

Sound vaguely familiar?

How much press is OWS getting today with its West coast port demonstrations?  How many words have been spent denigrating protesters as un-American losers, slackers, even dangerous criminals?  Let’s not forget the MSM’s reluctance to cover OWS, the strange lack of network film footage during police actions, particularly as the encampments were dismantled.  Twitter feeds jammed, cameras turned off.

Still, the world is watching.  The world is pushing back.  Everywhere.


Congressional Insider Trading: A case study in Moral Hazard

The more I’ve become aware of how pervasive the problem is of congressional insider trading, the more horrified I’ve become. This is a worst case scenario because this is just like congressional raises and campaign finance reform in that the foxes are in charge of their taxpayer funded chicken coop.  They are unlikely to pass any kind of law that controls self-dealing behavior and there is no other way to get it done.  There are always a few of them that are willing to do the right thing but the leadership of each house is most likely to be the stellar examples of those that manipulate the system to their own advantage.  So, if a law comes up, the leadership will stop any forward momentum.  Insider trading appears to be a bi-partisan problem with egregious examples from both sides of the aisle.

Insider trading in the financial markets is one of the most prosecuted and investigated crimes.  The realization that inside information–information you have that is not available to the public–gives you an unfair advantage in predicting prices of assets is long standing.  It’s been declared unethical and illegal for some time.  Insider, self dealing behavior has been a problem for our country both in and outside of government.  One good early congressional example is that of William Duer who was a member of the Continental Congress.  However, Duer was an outlier for his time.  Recent investigation by journalists  indicate that the current congresspeople regularly self deal by buying stocks and other assets while influencing legislation that directly impacts those holdings.

Eric Cantor just blocked a bill that would outlaw insider trading by members of congress. This appears to be another example of a congressional leader who has made money off a practice ensuring they can continue to ride their gravy train. The behavior is clearly an example of self-dealing and is considered unethical in Wall Street and financial market circles. Given those guys frequently try to push the envelop on acceptable investing behaviors, that really puts Cantor in the poster child of moral hazard category.

The Republican sponsor of the bill in the House, Financial Services Chairman Spencer Bachus of Alabama, had scheduled a markup of the Stop Trading on Congressional Knowledge (STOCK) Act for next week. But on Wednesday, Majority Leader Eric Cantor of Virginia cancelled the markup session.

Cantor reportedly said he blocked the bill to give Congress more time to examine the issue. Critics of the move, however, fear that any delay could kill the bill entirely.

Some version of the the STOCK Act has been bouncing around Capitol Hill for six years. But recent attention to the issue of Congressional insider trading, following reports from CNBC’s Eamon Javers and a “60 Minutes” report, brought the bill out of stasis and made its passage into law seem likely. If the latest delay pushes the bill into next year, it may become lost in election-year politics.

Trading by lawmakers based on non-public information about legislation falls into what many see as a loophole in insider trading regulations.

Although corporate insiders are banned from trading on non-public information about their companies, congressional representatives and senators may not be banned from trading on non-public information about legislation or regulation. The legal issue is disputed by scholars and regulators.

The head of the enforcement division of the Securities and Exchange Commission recently argued that congressional insider trading is already banned. But he admitted that no legal action has ever been taken against a member of Congress.

Studies have shown the investment portfolios of House members and Senators consistently outperform the market by significant degrees, suggesting they are either miraculously bright and lucky investors or using their access to non-public information when trading. Financial experts regard the idea that it is just luck or investing smarts as laughable.

Minnesota Democrat-Farm-Labor Representative Tim Walz has been one of the bill’s sponsor.  He’s currently doing interviews in an attempt to shame Cantor into releasing his hold.

The 1st District DFL Rep. Tim Walz-sponsored STOCK Act — Stop Trading in Congressional Knowledge — has been around for six years, but just recently started getting attention. It had been going nowhere until a “60 Minutes” report in November.

“We know that during the health care debate, people were trading health care stocks. We know that during the financial crisis of 2008, they were getting out of the market before the rest of America really knew what was going on,” Peter Schweizer, a fellow at the conservative Hoover Institution said on “60 Minutes.”

Overnight, the bill went from a handful of co-sponsors to having dozens. A month later, the bill has more than 220 co-sponsors from both parties, but mostly from the House.

This is a bill that should be on the top of the list for things that those sympathetic of the Occupy movement.  It should appeal to Tea Republicans too.  This is clearly something that is highly unethical and similar behavior by senior management in the private sector would be subject to criminal investigation and would result in charges. You can watch the 60 Minutes segment here.  It’s worth watching.  This bill should pass and be implemented.  Something is seriously wrong with Eric Cantor’s moral barometer if he really thinks it needs more study.

Cantor’s move comes after we find that the wealth of US households suffered their biggest loss last quarter since the worst part of the financial crisis in 2008.  Congress actually gained net worth during the same period. Last quarter’s losses by ordinary Americans are undoubtedly due to the eurozone crisis–which is essentially yet another bank problem–and the brinkmanship behavior of Congress balking at passing the debt ceiling increase to pay for spending they approved.  The inability of congress to do anything substantial for the economy and instead engaging in naked partisan one-up-man-ship has been beyond the comprehension of most economists who know exactly what needs to be done to put the nation back on solid ground.

Even more unsettling than the latest quarterly figures on wealth destruction is the amount of wealth that has been vaporized in the past four years.  The net worth of American households peaked in 2007 at $66.8 trillion.  As of September 30, 2011, the net worth of American households had plunged to $57.4 trillion for a loss of $9.4 trillion.  To put these number in perspective, this is a loss of net worth per person in the United States of $30,618.  A family of four is statistically poorer by $122,472 than they were in 2007.

This is nothing less than malpractice on the part of elected officials that are more focused on gaining and keeping seats in their caucuses than doing right by the American people.  Joseph Stiglitz’s ‘The Book of Jobs’ in January’s Vanity Fair is a compelling list of America’s economic troubles and the sins our elected officials in getting everything backasswards. This has not been our grandparent’s Great Depression where the government and the administration thought and acted big to take care of American people and their communities.  Instead, our congress jumped to benefit personally from their knowledge of the problems by investing correctly and conducting policy improperly. They seem to know what their actions are doing when it comes to smartly using their own funds for their own enrichment.

It has now been almost five years since the bursting of the housing bubble, and four years since the onset of the recession. There are 6.6 million fewer jobs in the United States than there were four years ago. Some 23 million Americans who would like to work full-time cannot get a job. Almost half of those who are unemployed have been unemployed long-term. Wages are falling—the real income of a typical American household is now below the level it was in 1997.

We knew the crisis was serious back in 2008. And we thought we knew who the “bad guys” were—the nation’s big banks, which through cynical lending and reckless gambling had brought the U.S. to the brink of ruin. The Bush and Obama administrations justified a bailout on the grounds that only if the banks were handed money without limit—and without conditions—could the economy recover. We did this not because we loved the banks but because (we were told) we couldn’t do without the lending that they made possible. Many, especially in the financial sector, argued that strong, resolute, and generous action to save not just the banks but the bankers, their shareholders, and their creditors would return the economy to where it had been before the crisis. In the meantime, a short-term stimulus, moderate in size, would suffice to tide the economy over until the banks could be restored to health.

The banks got their bailout. Some of the money went to bonuses. Little of it went to lending. And the economy didn’t really recover—output is barely greater than it was before the crisis, and the job situation is bleak. The diagnosis of our condition and the prescription that followed from it were incorrect.

The problem is that congress–due to its ability to self deal–has no experience of any of this.  In fact, the more we suffer it appears the more they make up fairy tales that suggest the only people doing well in this economy should be left to repeat the sins of their past.  A congressional seat should not be an easy path to a secure position among the 1 percent. It appalls me that so many folks don’t seem to actually get this.  Witness the rise of ultimate self-dealer Newt Gingrich to the front runner status of the republican presidential campaign. If we can’t stand up to the likes of Eric Cantor and we can’t reject the leadership model of Newt Gingrich, we will certainly loose any semblance of truly representative government. This bill would close the door on one faucet of the moral hazard problems that are rampant in government.


A Tale of Two Speeches, A Tale of Two Men

On Tuesday, Barack Obama delivered a speech in Kansas.  Osawatomie, Kansas to be exact.  With little subtlety, this was an attempt to conjure up the spirit of Teddy Roosevelt, the TRex of the early 20th Century, the scrappy yet privileged pugilist, who pitted himself against monopolies, rabid financiers and proudly defended the American ‘square deal.’  In truth, TR was no saint.  But he was a man of conviction.  And action.

Barack Obama has proven himself a weak sister by any comparison.  Yet, he and his handlers, his ever-present speechwriters saw fit to mirror Roosevelt’s words.  We’re to believe that Obama is a populist at heart, a Roosevelt clone, calling on the Nation to embrace progress over privilege.  The square deal becomes the fair chance.  The review of abuses and lawlessness that TR was not afraid to call destructive become a wrong.  Legislative solutions and regulatory oversight that TR specifically cites are mentioned in passing or given more credit than they’re actually due, eg., the stripped down Dodd-Frank bill.  Notice there was no mention of reinstating Glass-Steagall, something that wouldn’t solve the entire mess we find ourselves in but would be an important first step in the reform process.

Let’s get real.  Barack Obama has no intention of reforming anything.  Unlike TR who said:

“Words count for nothing except in so far as they represent acts.”

And Barack Obama?   He’s countered with words leading nowhere.

He was against the Iraq War, only there’s no record of his opposition.  His ‘just words’ speech—a steal from an earlier Deval Patrick oratory—said everything the man has proven himself to be, an empty talker.  Where is the evidence that Barack Obama is or ever was a defender of the ‘ordinary man and woman?”  Oh yes, he was a community organizer.  And what exactly were his accomplishments?  He was a State Senator.  Accomplishments, please [beyond representing the interests of slum landlords].  And as a US senator?  Accomplishments?

Nada.

Let’s line this up against a few of Teddy Roosevelt words made flesh:

  • Successfully prosecuted the Northern Securities Co. for the merger of the Northern Pacific, The Great Northern and the Chicago, Burlington and Quincey railroads under the Sherman Antitrust Act.
  • Restored public confidence in the government’s ability to hold the country’s most powerful men accountable to the law.
  • Frequently warned conservative critics that revolutionary upheaval was likely to be inspired by an ‘attitude of arrogance on the part of property owners and their unwillingness to recognize their duty to the public.’
  • Pushed through Congress legislation establishing the Department of Commerce and Labor and within that Department the Bureau of Corporations, authorized to investigate and publicize suspect corporate activities.
  • Challenged the corporate view that business records be kept in secrecy and that employers had a right to deal with employees as they saw fit [one need only review the deplorable working conditions and wages of the era to understand the need for reform] with no interference from the Government.
  • Brokered a peace between Russia and Japan, for which he earned the Nobel Peace Prize.

There’s more, of course—the good, the bad and the ugly.  TR was not perfect but unlike the present occupant of the White House, he had a vision that was his and his alone.  He was the public face and voice of the American Progressive Movement that would eventually lead to improved working conditions, a woman’s right to vote, union legitimacy and new attitudes regarding our environment–conserving our national, natural treasures for the future–among other things.

Teddy Roosevelt was a man of the moment and a man with a legacy.

Now think of Barack Obama, the lack of vision, the broken promises, the man in search of an identity:  JFK, FDR, Abraham Lincoln.  And now Teddy Roosevelt.  This is the blank slate upon whom everything has been written but nothing has stuck.  Oh yes, we have the healthcare reform bill, a legislative mystery written behind closed doors then sealed with secret insurance industry deals and wet kisses to Big Pharma.  We also have wars continued and financed, record unemployment [jobs which will not be replaced by pretty words],  nearly 46 million Americans receiving food stamps [1 in 7], houses still underwater with few promised modifications and/or relief and 20+% of our children classified as ‘food insecure.’

This is not a vision.  It’s a disaster.  I’ll leave you with Teddy Roosevelt’s words, from his own Kansas speech:

I stand for the square deal. But when I say that I am for the square deal, I mean not merely that I stand for fair play under the present rules of the games, but that I stand for having those rules changed so as to work for a more substantial equality of opportunity and of reward for equally good service.

And,

The object of government is the welfare of the people. The material progress and prosperity of a nation are desirable chiefly so far as they lead to the moral and material welfare of all good citizens.

And,

One of the fundamental necessities in a representative government such as ours is to make certain that the men to whom the people delegate their power shall serve the people by whom they are elected, and not the special interests. I believe that every national officer, elected or appointed, should be forbidden to perform any service or receive any compensation, directly or indirectly, from interstate corporations; and a similar provision could not fail to be useful within the States.

These are words most of us can believe in, spoken August 31, 1910.  I’d encourage readers to take a few moments and read TR’s words in their entirety.

Then read Obama’s speech.

Two speeches.  Two men.

If President Obama wants to slip on the mantle of Teddy Roosevelt, become a born-again populist in 2012, he’ll need action to prove his words.

Why?

Because the days of blind faith are over.