At WHAT point does HE own it?
Posted: June 12, 2009 Filed under: Bailout Blues, Diplomacy Nightmares, Global Financial Crisis, Hillary Clinton: Her Campaign for All of Us, president teleprompter jesus, Surreality, Team Obama, Voter Ignorance | Tags: broken campaign promises 3 CommentsThe Political Memo in today’s NYT minces few words in Blaming the Guy Who Came Before Doesn’t Work Long and I’d like to just tag right along with that. Its thesis is clear. The Obama administration wastes no opportunity to turn the phrase “we inherited a lot of problems”.
As President Obama struggles to turn around the moribund economy and confront multiple international issues, he wastes few opportunities to remind the country that the problems are not of his making.
“The financial crisis this administration inherited is still creating painful challenges for businesses and families alike,” Mr. Obama said this week as he proposed spending limits.
“We inherited a financial crisis unlike any that we’ve seen in our time,” he said last week as he thrust General Motors into bankruptcy.
His advisers and allies follow the same script. “The Obama administration inherited a situation at Guantánamo that was intolerable,” James L. Jones, the national security adviser, said of the military prison in Cuba. Secretary of State Hillary Rodham Clinton defended the Obama foreign policy in the same vein. “We inherited a lot of problems,” she said.
Mr. Obama is hardly the first president to point to his predecessor. Ronald Reagan blamed Jimmy Carter for the poor economy he inherited, just as Bill Clinton blamed the first President Bush and the younger Mr. Bush then blamed Mr. Clinton. Former Bush aides like Karl Rove argue that Mr. Obama has done it more extensively and routinely than other presidents have, although the Obama team denies that.
But at a certain point, a new president assumes ownership of the problems and finds himself answering for his own actions. For Mr. Obama, even some advisers say that moment may be coming soon.
I’d really like to extend the question of when does he own it a bit further to what good does saying you inherited all these problems do when your solution is basically a continuation of those same failed policies?
In the two major areas of concern during the election and primary–the Iraq War and the Financial Crisis–we not only seen continuation of the same dysfunctional policies, but we’ve seeing appointment of the same dysfunctional policy makers in both cases. Timothy Geithner (with Obama’s consent and support) has basically been following the same policies of his predecessor Secretary of Wall Street Bailouts Hank Paulson. I know this because oc-08I’ve been following the economic policies quite closely because of obvious reasons. I have had to rely on others for examples in other policy areas. To say there is a plethora is understatement. I am getting tired of flushing spam from seriously delusional Obama voters into byte heaven that mostly reads: “Hillary would have done the same thing” and “he’s just doing what he has to at the moment, just wait it will change, you’ll see.”
Cannonfire has run a series of threads demonstrating how closely aligned President Obama’s policies have been to his predecessor. I’ve spent a few days following the links from The Worm turns and turns. One link is to Paul Craig Roberts at Global Research and the title absolutely says everything. It’s called Watching Obama Morph Into Dick Cheney. This one especially appeals to me because of a post I took a lot of grief for back in the day that used a side-by-side Broke Back Mountain view of the boyz will be boyz.
Unraveling the Greed
Posted: June 7, 2009 Filed under: New Orleans, Surreality, U.S. Economy | Tags: Predatory Lending, Subprime mortgages, unbanked, Wells Fargo Comments Off on Unraveling the Greed
I remember during my Hurricane Katrina Exile from New Orleans that I was invited by a good friend and colleague to attend a gathering of social workers and others to discuss the impact of being “unbanked” and hearing about predatory lending practices. For about two years, I did several research papers and gathered quite a collection of stock prices and balance sheet information on DiTech, Advance America, Dollar Financial, and other credit type companies that provide a bevy of financial services to the poor. At the time, I also put Wells Fargo into that mix. I was studying the impact of monetary policy on this little studied area of financial institutions. I basically argued that the increasing reliance on this type of company for debt financing and the potential volatility in their portfolios could explode and impact the larger financial markets. I’m looking back at my paper (dated December 6, 2006) and remembering how everyone thought that a trivial question at the time it was presented.
Here are some questions that I asked in my introduction.
Traditional lenders achieve profits from low operating costs and positive interest rate spreads. Credit Services Companies hold risky assets, charge numerous fees (some not covered by Truth-in-Lending Laws), and have higher than normal interest rates due to the nature of the borrower or the loan. Some of these companies are associated with banks that have fiduciary responsibilities. Others rely on commercial paper or retained earnings to finance loans. Companies such as Dollar Financial specialize in servicing the consumers called the “unbanked” or “underbanked”. They charge fees to cash checks and receive fees from utilities to take payments from cash paying customers. Franklin Credit specializes in subprime lending in the mortgage area.
One of the most interesting trends in this particular business has been the spread of credit service company branches into poor and working class neighborhoods vacated by traditional financial institutions. It is really difficult to drive around a poor neighborhood and find a bank branch these days. It is very easy to find a branch of a credit services company on nearly every block. Credit service companies are also aggressive marketers. GMAC, traditionally the lending arm of General Motors for floor plan loans to dealers and car loans to those unable to get bank loans is the parent company of Ditech; undoubtedly the most over-advertised Credit Service Company on television.
Do these companies respond to interest rate movements and volatility in rates the same way that more traditional financial institutions like banks do? Do their already high spreads protect them? Do their many fees provide them with some insulation from interest rate movement? OR will many of the come crashing down in a period of high interest rates or an economic downturn? What will this mean to the high number of un-banked? The Federal Reserve Bank, GNMA and FNMA have developed an interest in credit sector companies recently. Sallie Mae is under some scrutiny by Congress for its considerable profits. The Fed reports and monitors those credit companies owned by bank holding companies. Their aggregate financial data is published monthly at the Board of Governor’s Website. There appears to be increasing interest by many parties in these financial institutions but little is understood about how their explosive growth will impact the financial system at large.
I basically had to quit the research line at the time and switch to something less ‘kitschy’ as one senior researcher told me. However, I keep going back to my work on predatory lenders when I read something like this in the NY Times:
Bank Accused of Pushing Mortgage Deals on Blacks.
I was aware that there were a lot of lending seminars going on in my neighborhood. I live in the ninth ward in New Orleans. My neighborhood is the very antithesis to the gated suburban community. I am the minority here. These seminars were sponsored most times by ACORN (their HQ is less than a mile from my house) and local churches. I used to get fliers all the time on my front door of the little house I bought with my FHA loan. Wells Fargo has my loan now. My loan probably qualifies under the CRA. I wish I still had the fliers or that I actually had gone to one of the meetings, because I thought it odd that these seminars would be offering chances to meet with actual lenders. I was never motivated to actually go to one.
It came as no surprise to me then to read this in the NY Times article.
This American Life
Posted: June 5, 2009 Filed under: just because, president teleprompter jesus, Surreality | Tags: apologists for Obama, broken campaign promises and Obama, David Sirota, presidential polls, young conservatives 2 CommentsMy thoughts appear to be a bit disjointed today so I thought I’d paste together some links I found over morning coffee and let you all hash them over.
First, from the annals of No kidding … yes, you are a young con (artist), I offer up this you tube of some newbie conservative boys. They call themselves the ‘young cons’ and they prove, once again, that young privileged white boys can’t rap. Hide your young!
Next up, is the answer to my question why aren’t we hearing anything about POTUS and his Poll numbers anymore? Well, according to Rasmussen: “Overall, 54% of voters say they at least somewhat approve of the President’s performance so far. Forty-six percent (46%) disapprove.”
The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 34% of the nation’s voters now Strongly Approve of the way that Barack Obama is performing his role as President. Thirty-four percent (34%) Strongly Disapprove giving Obama a Presidential Approval Index rating of 0. That’s the highest level of strong disapproval and the lowest overall rating yet recorded (see trends).
We continue also to see an erosion of support from left blogistan as David Sirota asks: Whither the sacred campaign promise? Is it just possible that one of these guys will eventually say that some of us were right one day?
But then behavior by President Obama suggests a more systemic assault on the campaign promise is under way.
It started in December, when he was asked why he was making Hillary Rodham Clinton his chief diplomat after criticizing her qualifications and promising Democratic primary voters that his views on international relations were different than hers. He responded by telling the questioner “you’re having fun” trying “to stir up whatever quotes were generated during the course of the campaign.” The implicit assertion was that anyone expecting him to answer for campaign statements must just be “having fun” – and certainly can’t be serious.
A few months later, in reversing a 5-year-old commitment to support ending the Cuban embargo, Obama offered no rationale for the U-turn other than saying he was “running for Senate” at a time that “seems just eons ago” – again, as if everyone should know that previous campaign promises mean nothing.
At least that was a response. After the New York Times recently reported that “the administration has no present plans to reopen negotiations on NAFTA” as “Obama vowed to do during his campaign,” there was no explanation offered whatsoever. We were left to recall Obama previously telling Fortune magazine that his NAFTA promises were too “overheated and amplified” to be taken literally.
It’s true that politicians have always broken promises, but rarely so proudly and with such impunity.
I’m just going to leave the last word to Stevie Wonder:
People keep on learnin’
Soldiers keep on warrin’
World keep on turnin’
Cause it won’t be too longPowers keep on lyin’
While your people keep on dyin’
World keep on turnin’
Cause it won’t be too longI’m so darn glad he let me try it again
Cause my last time on earth I lived a whole world of sin
I’m so glad that I know more than I knew then
Gonna keep on tryin’
Till I reach the highest ground
What’s our Return Policy?
Posted: May 29, 2009 Filed under: president teleprompter jesus, Surreality, Voter Ignorance | Tags: Common Dreams, Ted Rall, Ted Rall Calls for Obama Resignation 3 CommentsState of Disbelief sent me this link earlier today. I very rarely just post some one else’s stuff outright, but this column by Ted Rall is just is beyond belief. I’m looking forward to her comments and background work over on The Confluence later, hopefully, today.[UPDATE: LINK] But right now, I’m pretty speechless. Let’s just file this under Buyer’s Remorse. Ted, talk to me, why didn’t you do your homework earlier now that we’re stuck with him? We couldn’t even get Bush impeached and we still can’t get his war criminal cabinet investigated and there’s a majority of Dems in Congress? You think any one’s going to seriously discuss resignation with Joe Biden and Nancy Pelosi on the Flight Deck?
Published on Thursday, May 28, 2009 by TedRall.com
An Early Call for Obama’s Resignation
With Democrats Like Him, Who Needs Dictators?
by Ted Rall
We expected broken promises. But the gap between the soaring expectations that accompanied Barack Obama’s inauguration and his wretched performance is the broadest such chasm in recent historical memory. This guy makes Bill Clinton look like a paragon of integrity and follow-through.
From healthcare to torture to the economy to war, Obama has reneged on pledges real and implied. So timid and so owned is he that he trembles in fear of offending, of all things, the government of Turkey. Obama has officially reneged on his campaign promise to acknowledge the Armenian genocide. When a president doesn’t have the ‘nads to annoy the Turks, why does he bother to show up for work in the morning?
Obama is useless. Worse than that, he’s dangerous. Which is why, if he has any patriotism left after the thousands of meetings he has sat through with corporate contributors, blood-sucking lobbyists and corrupt politicians, he ought to step down now–before he drags us further into the abyss.
I refer here to Obama’s plan for “preventive detentions.” If a cop or other government official thinks you might want to commit a crime someday, you could be held in “prolonged detention.” Reports in U.S. state-controlled media imply that Obama’s shocking new policy would only apply to Islamic terrorists (or, in this case, wannabe Islamic terrorists, and also kinda-sorta-maybe-thinking-about-terrorism dudes). As if that made it OK.
In practice, Obama wants to let government goons snatch you, me and anyone else they deem annoying off the street.Preventive detention is the classic defining characteristic of a military dictatorship. Because dictatorial regimes rely on fear rather than consensus, their priority is self-preservation rather than improving their people’s lives. They worry obsessively over the one thing they can’t control, what Orwell called “thoughtcrime”–contempt for rulers that might someday translate to direct action.
Locking up people who haven’t done anything wrong is worse than un-American and a violent attack on the most basic principles of Western jurisprudence. It is contrary to the most essential notion of human decency. That anyone has ever been subjected to “preventive detention” is an outrage. That the President of the United States, a man who won an election because he promised to elevate our moral and political discourse, would even entertain such a revolting idea offends the idea of civilization itself.
Obama is cute. He is charming. But there is something rotten inside him. Unlike the Republicans who backed Bush, I won’t follow a terrible leader just because I voted for him. Obama has revealed himself. He is a monster, and he should remove himself from power.
“Prolonged detention,” reported The New York Times, would be inflicted upon “terrorism suspects who cannot be tried.”
“Cannot be tried.” Interesting choice of words.
Any “terrorism suspect” (can you be a suspect if you haven’t been charged with a crime?) can be tried. Anyone can be tried for anything. At this writing, a Somali child is sitting in a prison in New York, charged with piracy in the Indian Ocean, where the U.S. has no jurisdiction. Anyone can be tried. Why is it, exactly, that some prisoners “cannot be tried”?
The Old Grey Lady explains why Obama wants this “entirely new chapter in American law” in a boring little sentence buried a couple past the jump and a couple of hundred words down page A16: “Yet another question is what to do with the most problematic group of Guantánamo detainees: those who pose a national security threat but cannot be prosecuted, either for lack of evidence or because evidence is tainted.”
In democracies with functioning legal systems, it is assumed that people against whom there is a “lack of evidence” are innocent. They walk free. In countries where the rule of law prevails, in places blessedly free of fearful leaders whose only concern is staying in power, “tainted evidence” is no evidence at all. If you can’t prove that a defendant committed a crime–an actual crime, not a thoughtcrime–in a fair trial, you release him and apologize to the judge and jury for wasting their time.
It is amazing and incredible, after eight years of Bush’s lawless behavior, to have to still have to explain these things. For that reason alone, Obama should resign.
© 2009 Ted RallTed Rall is the author of the new book “Silk Road to Ruin: Is Central Asia the New Middle East?,” an in-depth prose and graphic novel analysis of America’s next big foreign policy challenge.

The Rasmussen Reports daily Presidential Tracking Poll for Friday shows that 34% of the nation’s voters now Strongly Approve of the way that Barack Obama is performing his role as President. Thirty-four percent (34%) Strongly Disapprove giving Obama a Presidential Approval Index rating of 0. That’s the highest level of strong disapproval and the lowest overall rating yet recorded (see trends).



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