William Black Goes Ballistic

I’ve been reading William Black’s essays and posts, watching his video interviews and You Tube presentations, ever since I saw him on Bill Moyers Journal speaking frankly, no holds barred, about how the financial industry had brought the country to its knees and gotten away with it.  He spoke frankly again during his Congressional testimony last year when he came right out and called the mortgage debacle that nearly finished the US economy . . . fraud.  Yes he used the ‘f’ word!  This was unlike other ‘experts’ who insisted there was no inkling of trouble on the horizon, that the financial meltdown was ‘an act of the economic gods,’ a huge surprise, the product of overly optimistic financial predictions.

No, Black said.  It was fraud.  It was criminal.  In case you missed that testimony, you can watch below.  It’s worth a second go-around.

Too bad Black’s comments were basically ignored, caught up in the razzle-dazzle of excuses, half-truths and political posturing that’s become all too familiar to anyone paying attention.  Business as usual is still the acceptable mantra.  In case, you’ve forgotten [time flies when we’re having so much fun], William Black headed Poppy Bush’s forensic audit team during the S&L scandal, which ultimately led to 1000 elite felony convictions.

Black’s investigative team wasn’t kidding around.

William Black came out yesterday morning with his own take on President Obama’s SOTU announcement of a Task Force [The Let’s Try It Again Task Force], quoting POTUS:

And tonight, I am asking my Attorney General to create a special unit of federal prosecutors and leading state attorneys general to expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis. This new unit will hold accountable those who broke the law, speed assistance to homeowners, and help turn the page on an era of recklessness that hurt so many Americans.

Black suggests we look at the wording, the avoidance of using the ‘f’ or ‘c’ word.  That would be fraud and criminal.  His response to this and Eric Holder’s follow up memorandum:

The working group will not “investigate … abusive lending” and it will not “hold accountable those who broke the law … [by defrauding] homeowners.” It will not “speed assistance to homeowners.” It will not “turn the page on an era of recklessness” – and fraud, not “recklessness” is what prosecutors should prosecute. The name of the working group makes its crippling limitations clear: the Residential Mortgage-Backed Securities Working Group. Attorney General Holder’s  memorandum about the working group makes clear that the name is not misleading. The working group will deal only with mortgage-backed securities (MBS) – not the fraudulent mortgage origination that drove the crisis (the only exception is federally insured mortgages).

Clearly, he’s not impressed.  No, instead he’s disgusted and enraged.  In fact, the essay nearly jumps off the page with genuine anger.  He goes on to say:

The working group is a symbolic political gesture designed to neutralize criticism of the administration’s continuing failure to hold accountable the elite frauds that drove the crisis. Neither the Bush nor the Obama administration has convicted a single elite fraud that drove the crisis. This is a national disgrace and represents the triumph of crony capitalism. Remember that the FBI warned in September 2004 that there was an “epidemic” of mortgage fraud and predicted that it would cause a financial “crisis.” There are no valid excuses for the Bush and Obama administrations’ failures. The media have begun to pummel the Obama administration for its failure to prosecute. The administration could not answer this criticism with substance because it has nothing substantive to offer in prosecuting elite mortgage origination frauds. The ugly truth is that we are three full years into his presidency and Holder could not find a single indictment to bring that Obama could brag about in his SOTU address. Who doubts that Holder and Obama would have done so if they had anything in the prosecutorial pipeline? Why do Holder and Obama have nothing in the pipeline?

One of the other things that deeply disturbs Black is President Obama’s willingness to play politics in this matter, float the gambit of the Task Force /Working Group and the reputation of Eric Schneiderman to create the appearance of a genuine hands-on effort.  But this move is not genuine as far as Black is concerned and contradicts the very essence of President Obama’s SOTU address, conjuring up the Seal Team that took out Osama Bin Laden—a team effort, concentrating on the mission.

This is no more than vulgar propaganda, Black claims.

He also refers to a disclosure made by Scot Paltrow for Rueters 10 days ago, revealing that US Attorney General Eric Holder and Lanny Breuer, heading the DOJs criminal division [also a co-chair of the ‘Let’s Try It Again Task Force], had been partners at Covington and Burling, a well-established and well-heeled law firm that represented many of the largest banks, providing cover for their clients through key arguments on the MERS debacle.

Conflict of interest anyone?

The state Attorney Generals?  They were lobbyied, leaned on, even offered [as was the case of AG Kamala Harris, CA] $8 billion to assist damaged California homeowners in a bid to agree to the original deal, which would have offered the big banks immunity from liability.  All so the President could announce ‘a deal’ in his State of the Union address, even though homeowners would be left out to dry and bank executives, who led deliberate “accounting control frauds,” could continue their conduct with absolute impunity.

This is ugly, made all the uglier in that it was sanctioned through and by the White House.  Black suggests that Eric Schneiderman recognized the leverage he had, agreed to join the Task Force as a co-chair with the stipulation that the original deal be modified, specifically concerning civil liability in mortgage origination fraud.

This might explain Jamie Dimon’s whine last Friday, pouting and claiming bankers are the objects of unfair discrimination.  Really?  Here’s the average American’s response:

Of course, you would think that this mess would be a window of opportunity for Republicans in an election year.  What an incredible club to use on President Obama to win the WH, maybe the House and the Senate by gargantuan majorities.

No fear there because for every compromised Democrat there is an equally compromised Republican.  Both the Democrats and Republicans rely heavily on campaign contributions from the financial sector.  Neither side is willing to cut their bankers [crooked or not] off at the knees.

What to do?  What better reason to support any and all actions to get money out of the political arena.  Until we do?  The world belongs to the highest bidder.


Doublespeak, the Devil’s Advocate and Diogenes’ Endless Quest

Just when you think current events and various public utterances cannot get any more ridiculous, they do.  Often, much of what we hear and are expected to take seriously is wrapped in doublespeak, deliberately vague, obscure language to hide the speaker/writer’s true intent.

We’ve had examples galore as the 2012 election looms over DC, political candidates twisting themselves into pretzels to find the right combination of words to seduce voters.  Newt Gingrich, for instance, referred to his lobbying involvement with Fannie Mae and Freddie Mac [for which he was paid handsomely] as providing advice as an ‘historian.’  John Boehner has taken a page out of Frank Luntz’s cannon, repeating the phrase ‘job creators’ as if it were a magical incantation.  Democrats are certainly not immune to this form of prevarication.  Every time I recall Nancy Pelosi’s infamous statement about the Healthcare Reform Bill, I wince: We have to pass the bill before we know what’s in it.

That being said, there’s a special spot in Doublespeak Heaven or Hell for John Yoo, who often writes for the American Enterprise Institute.

John Yoo.  Name sound familiar?  Mr. Yoo, the infamous legal advisor to the Bush Administration’s inner circle, recently jumped up, expressing considerable distaste for and worry over President Obama’s overreaching his authority, abusing and doing considerable damage to the US Constitution.  A reasonable person might conclude this is in reference to the recent indefinite detention clause in the National Defense Authorization Act, the one POTUS claimed he would not sign.  But then did.

But we’re not talking reasonable.  We’re talking John Yoo, deputy assistant attorney general in the Office of Legal Counsel [OLC], Department of Justice from 2001-2003.

John Yoo helped strangle the English language, managing to transform the word torture into ‘enhanced interrogation,’ a smoke screen phrase that former Vice President Cheney is still defending, so he and his buddies can sleep at night.

Let’s recall the past.

John Yoo spun out legal arguments for wiretapping, warrantless surveillance on all communication coming in or out of the country as well as warrentless surveillance against American citizens; defended the use of torture [excuse me, enhanced interrogation], authoring the infamous ‘torture memo,’ in which he cited permissible techniques, including assault, maiming and drugging on orders of the President as long as they do not result in death, organ failure or impairment of bodily functions.  He also advised the suspension of the Geneva Convention, War Crimes Act, indicating that the US is no longer restrained by International Law in our endless War on Terror; declared that the President is empowered to make war without Congressional permission and, in fact, has the power to order military strikes inside the US.  He defended the President’s right to order rendition without Congressional approval, etc., etc., etc.

That John Yoo.  He was a very busy man while he held tenure as the Devil’s Advocate.

Mr. Yoo now says President Obama has exceeded his powers by his recess appointment of Richard Cordray to head the Consumer Financial Protection Bureau.  As you may recall this is the nefarious agency, the wicked brainchild of Elizabeth Warren, to protect American consumers from the labyrinth of confusing language offered in loan and credit agreements.  For example, credit card agreements and home loans.

According to Mr. Yoo, who wrote a piece for the National Review Online, President Obama is making a sweeping claim in the very definition of ‘recess.’

But President Obama is making a far more sweeping claim. Here, as I understand it, the Senate is not officially in adjournment (they have held “pro forma” meetings, where little to no business occurs, to prevent Obama from making exactly such appointments). So there is no question whether the adjournment has become a constitutional “recess.”

And,

This, in my view, is not up to the president, but the Senate. It is up to the Senate to decide when it is in session or not, and whether it feels like conducting any real business or just having senators sitting around on the floor reading the papers. The president cannot decide the legitimacy of the activities of the Senate any more than he could for the other branches, and vice versa.

I find this argument particularly startling coming from Yoo, considering his defense of all things related to the expansion of presidential authority.

But there’s more,

Even with my broad view of executive power, I’ve always thought that each branch has control over its own functions and has the right — if not the duty — to exclude the others as best it can from its own decisions.

Broad view is an understatement because John Yoo is on record, as early as March 1996, declaring that the President has the right to declare war, not Congress.  During his tenure with OLC, he asserted that a President can suspend First Amendment Freedoms in wartime and that the power of the Executive is virtually unlimited in times of war.

You can’t have it both ways.  We’re still engaged in Afghanistan, involved in a seemingly perpetual state of war.

Yoo further states that in view of President Obama’s gross overreach:

Most importantly, private parties outside government can refuse to obey any regulation issued by the new agency. They will be able to defend themselves in court by claiming that the head of the agency is an unconstitutional officer . . .

Now to be clear, I am not a lawyer. I cannot comment on the legalistic merits of the argument.  Others have done that.  But I do think I have a fairly good eye for hypocrisy.  And then there’s this, in reviewing Mr. Yoo’s past declarations, summaries of his memos and advice on matters of war, torture and the suspension of civil rights, this recent charge against President Obama seems out of proportion.

And duplicitous.

It’s okay when neo-cons play with the boundaries and definitions of the Constitution but not when our presumably Democratic President does the same thing.  That’s not to say I agree with either political class redefining, remaking and declaring right and true what is and what is not permissible under the Constitution for very distinct political purposes, merely extending a particular agenda.  But once this questionable threshold is crossed?  The results are what they are.

What neither side refuses to speak to is the considerable danger there is in not accounting for what the next elected Executive is likely to do with ‘expanded’ powers, the establishment of a unitary president. This falls under the heading: Short-Term Goals. It should be noted that redefining the scope of the Executive Office was all the rage during the Bush years, something that Obama vowed to change.

But he did not.

Recalling Mr. Yoo’s penchant for reinterpreting the US Constitution during 2001-2003 [not a pleasant journey], I felt as if I’d literally entered a parallel Universe, one in which language is weaponized.  In this strange, ever-evolving cosmos, white is black, up is down, evil is good and ultimate power [with no accountability] is the Law.

George Orwell is screaming from the Heavens to be named a true prophet.

As for the US Constitution?  It can mean anything you want it to mean. It depends on which side of the political divide you’re standing on.

John Yoo is not a person I would ever turn to for legal advice.  Not for the world I wish to inhabit or wish available to my children and future grandbabies.  In fact, I would think after all the damage Mr. Yoo  [admittedly, he was not alone] did during the early years of the Bush Administration, he’d be reluctant to level charges against anyone ever again.

And yet, a quick check through the archives found that Yoo had weighed in on President Obama’s proposed Executive Order on Federal contractor disclosure.  This proposal would require contractors to provide their political-giving history, any gift over $5000.   The proposal, it is argued, will make the Federal contract system more transparent and accountable to the public.

How radical!

Yet Mr. Yoo suggests the proposal makes some of Richard Nixon’s ‘dirty tricks’ look quaint by comparison.  As an example, he conjures up the humiliating fate of anyone tempted by Presidential overreach, undoing the time-honored, Constitutional right of anonymous political speech [conveniently avoiding the issue of money-giving, as in, swamping our elections in massive amounts of payola].  Namely, the consequence of these sins leads to impeachment.

I’m falling down a rabbit hole.  A really dark rabbit hole.

A case in point, Mr. Yoo ties his concern for poor, vulnerable corporations to MoveOn’s boycott of the retail operation, Target, in Minnesota.  The boycott and subsequent bad press disclosed that Target had made a contribution to a conservative group supporting a gubernatorial candidate opposed to gay marriage.  Yet Target had repeatedly proclaimed itself a gay-friendly corporation.

Ian Millhiser at Think Progress summarizes Yoo’s analysis this way:

In other words, Target misled the public by calling itself a gay-friendly corporation, when it actually was secretly funding an anti-gay effort. Yet, because of disclosure, it was no longer able to maintain this charade and forced to end its two-faced practices. In Yoo’s twisted understanding of the world, this is a great tragedy and not a compelling argument for why disclosure laws are necessary.

I would like to think there’s a place in the Universe where bad actors are rehabilitated, where they reconsider bad decisions, damaging policies that serve only to injure the weak and/or take advantage of human vulnerabilities. Yet reviewing the twisted logic of John Yoo has given me real pause.  If fact, all these political players give me great pause.

This is particularly true with a primary season trudging along, Republican candidates making whacko statements and mean-spirited declarations. We’ve witnessed:

Michelle Bachmann’s delusions, the Eye of the Newt’s vindictive nature, Romney’s spinning positions, Santorum’s woman and gay problem, Perry’s aphasia, Jon Huntsman’s [sadly] invisible campaign and the cuddly libertarian Ron Paul, who yearns to return to the good ole days of 1900. We have not had the benefit of listening to the likes of Buddy Roemer, a voice that should be heard. But now add John Yoo to the brigade of howling voices, then mix a large measure of contradiction, deception and slick language games.

President Obama [who certainly has employed doublespeak with flair, spun numerous fantastic tales of his own] begins to look grounded, normal.

Which means, of course, I’ve definitely entered an alternate Universe.  Maybe this one:

The crazy season just goes on and on and on.  Which makes me think of Diogenes, wandering ancient Greece with lantern in hand, searching for that one honest man.

That was nearly 2500 years ago.  We haven’t learned much.


The Art of Doublespeak

Language is important.  Words can inspire, inflame, enrage.  Words can hide a speaker’s intentions.  Sing me a lullaby.  Spin me a fairytale.  Sell me a load of bull-hockey.

One of today’s best-known language twisters is Frank Luntz.  Pollster and political consultant, Luntz is the Master of Political Doublespeak.  He would have made Orwell proud:  War is Peace, Freedom is Slavery, Ignorance is Strength.  He crawls out during every election cycle with the creepy focus groups, wired up and ready to go.  We learn ‘what words work.’  Otherwise known as  ‘what words obfuscate, spin and get the best reaction from would-be voters.’

Well, here’s a Newsflash: Luntz is worried about Occupy Wall Street, all those sorry slackers the GOP and various critics have sidelined as hippies, losers and Obama-lovers.  Seems from Luntz’s point of view, OWS is having an impact on political discourse. 

No kidding Sherlock! 

And so, Luntz decided a tutorial was needed to school Republicans how to “speak” when asked questions about the very issues that the Occupy wave has been raising. 

Fascinating!  A defense against the so-called irrelevant.  But even more fascinating is the list of rules on how to ‘discuss and defend against’ the grievances that Occupy members  have introduced into the public sphere.

The very first instruction made me laugh:

Don’t say capitalism.

Because people might start questioning the broken economic construct that’s taken root in the US.  Btw, I haven’t heard OWS slamming capitalism, per se.  It’s Vulture Capitalism, the darling of the neoliberal/libertarian set, that’s being questioned and panned, where only the well-heeled financial class takes the booty while the rest of the country is left to collect unemployment checks and shop with food stamps.  Sorry, don’t think ‘free market’ or ‘economic freedom’ will wash in a country where poverty is rising at an alarming rate and over 20% of American kids are classified as food insecure.

Politicians whether Right or Left need to do far better than that.  Like maybe tell the truth: that the financial class in this country has been running a huge Ponzi scheme, that transnational corporations are willing to run roughshod over everything in a blind pursuit of profit, that endless war makes money for the few, while the many bleed.

That would be refreshing.

Don’t say the government taxes the rich.  Tell them the government takes from the rich.

Oh yes, that’s much better.  Then pull out Warren Buffet’s statement that his tax rate [as a multi-billionaire] is lower than what his secretary is required to pay.  And please, take a spin over the corporate history of negative taxes after all the loopholes and government largesse heaped on the ‘job creators’ is taken in to account. Then too, let’s not forget the ‘off-shore’ pooling of tax-free profits and tidy nest eggs.   The beat goes on for those with the courage to look. 

The government takes from the rich?   Hahaha.  More like the government sucks up to the rich and their ever-present lobbyists.

Republicans should forget winning the battle for the middle-class.  Call them hardworking tax-payers.

Yes, Republicans should forget winning the middle-class since they’ve gone out of their way to eliminate them, crush them out like last year’s cigarettes.

Frank Luntz is ‘really’ scared of the Occupy Movement ?  With rules like this he may be out of a job. If the Republican’s go-to wordsmith can’t get his head or words around the basic complaints of not simply Occupy but most Americans and/or the very real economic and political discontent, then they are deaf, dumb and blind.

Or maybe smart like the wily fox.  Because the evidence is everywhere.  What to do?  Keep the disinformation and propaganda machine in high gear.  I won’t belabor the hypocrisy and cynicism of Luntz’s list.  He and the entire stable of political pollsters, consultants and analysts on all sides are merely symptoms of a system flailing in the wind, a system that’s forgotten how to reach out or even talk to real people in anything approaching honest discourse.  A system that has no respect for its citizenry.

Will the Luntz approach work as it has in the past? 

We shall see.  But I invite you to read the Ten Commandments of Political Doublespeak for 2012 at the link above.  Some examples will make you laugh.  Several will make you mad as hell. 

Oh, and here’s a tip: Don’t say the word ‘Bonus.’