Monday Reads

Good Morning! It’s been a tough weekend. As usual when dreadful events happen, the cable channels are covering the shooting in Arizona 24/7. Things are still happening in the DC despite the horror of that story. I just don’t know how much more I can read about it. Thinking about senseless hatred and violence is starting to make me feel physically ill.

If you do want to read more about the Arizona tragedy, the Washington Post has special section on it: Special Report: The Tucson shooting rampage. The New York Times also has lots of stories and photos on the front page.

Now I’ll see if I can find any other important stories for you to check out this morning.

On Saturday, I wrote a long piece on Darrell Issa, the man who is going have subpoena power as Chairman of the House Oversight Committee. The man is a thug, and we’d better be paying attention to what he’s doing. I hope when the news about the shooting calms down that people will take a look at that piece. I don’t usually “pimp” my posts, but I feel that this one is important.

Now I see that the Republicans plan to make changes in another important House committee: Republicans banish ‘civil rights’ and ‘civil liberties’ from House subcommittee

Congressman Jerrold Nadler (D-NY) blasted Republicans for planning to change the name of the Subcommittee on the Constitution, Civil Rights, and Civil Liberties to the “Constitution Subcommittee.”

“Once again, the new Republican majority has shown that it isn’t quite as committed to the Constitution as its recent lofty rhetoric would indicate,” Rep. Nadler, who has served as the Chairman of the Subcommittee on the Constitution, Civil Rights, and Civil Liberties since 2007, said.

“It has yet again shown its contempt for key portions of the document – the areas of civil rights and civil liberties – by banishing those words from the title of the Constitution Subcommittee.”

The Subcommittee on the Constitution is one of five subcommittees of the US House Committee on the Judiciary. The subcommittee has jurisdiction over constitutional amendments, constitutional rights, federal civil rights, ethics in government, and related matters.

Nice, huh?

I’ve seen people talking about this in the comments, but can I just say that I’m sick and tired of people tampering with Huckleberry Finn? It’s one of my favorite books. I have read it multiple times, and I happen to think it’s a candidate for the Great American Novel.

Mark Twain wrote the book the way he did to deliver some serious messages, one of which was an argument against racism. He did that by demonstrating in his novel why racism is wrong. There is also a strong message in the book about child neglect and abuse and about alcoholism. It’s a brilliant book, and there is no need to censor it. If it is taught in school, then the context of the language Twain used can be discussed and debated. Huckleberry Finn is not a children’s book. High school students are perfectly capable of understanding the book and its importance.

Here’s a piece at Truthdig that offers 10 Reasons Why the Slurs Should Stay in ‘Huck Finn.’ It’s pretty good.

When I was a senior in high school I read Shakespeare’s plays in my English class. There were two teachers who taught the Shakespeare course. My teacher had us read the plays aloud as written. The other teacher, an elderly woman, had students read the “dirty” parts silently. I’m glad I wasn’t in her class. But at least she didn’t make the students skip over those parts entirely or try to censor the plays.

I say let’s read the greatest works of literature as written.

Here’s a interesting and ironic story at the LA Times: 1800s-era skeletons discovered as crews build L.A. heritage center

Under a half-acre lot of dirt and mud being transformed into a garden and public space for a cultural center celebrating the Mexican American heritage of Los Angeles, construction workers and scientists have found bodies buried in the first cemetery of Los Angeles — bodies believed to have been removed and reinterred elsewhere in the 1800s.

Since late October, the fragile bones of dozens of Los Angeles settlers have been discovered under what will be the outdoor space of La Plaza de Cultura y Artes downtown near Olvera Street. According to archaeologists and the chief executive of La Plaza, they appear to be remains from the Campo Santo, or cemetery, connected to the historic Catholic church Our Lady Queen of Angels, commonly called La Placita. The remains are just south of the church.

Pieces of decaying wood coffins as well as religious artifacts such as rosary beads and medals have also been unearthed.

The cemetery, which officially closed in 1844, was the final resting place of a melting pot of early Los Angeles — Native Americans; Spanish, Mexican, European settlers; and their intermarried offspring. But the repercussions of the discovery outside La Placita have been anything but peaceful.

So digging up the bones of early settlers in order to build a monument to early settlers. Ironic.

Dakinikat sent me this Bloomberg article about Goldman Sachs and their investment in Facebook.

News has leaked out that Goldman, supposedly the smartest Wall Street firm, will buy $450 million of stock in closely held Facebook, with Digital Sky Technologies, which invests in start- ups and is partly owned by Goldman, purchasing another $50 million.

The anonymous folks who put out these numbers said the deal sets a value for Facebook equal to that of Boeing Co. and approaching that of Home Depot Inc.

Goldman clearly is capitalizing on Wall Street’s latest diversion: a semi-public stock market for private companies.

Several firms now offer shares of closely held companies or offer estimates of their value, or both.

It seems that Goldman is hyping Facebook in order to increase the value of its own investment in advance of Facebook going public. Shouldn’t that be illegal?

Dak also sent me this link to the Economist about the war on government unions: It’s a long article and I haven’t been able to read the whole thing yet, but it looks worthwhile. Perhaps Dak will do a longer post on this issue.

[MABlue’s picks]
Bethany McLean from Vanity Fair has a great reportage about Goldman Sachs. These poor guys, they’re so misunderstood.
The Bank Job

One of the biggest disconnects on Wall Street today is between the way Goldman Sachs sees itself (they’re the smartest) and the way everyone else sees Goldman (they’re the smartest, greediest, and most dangerous). Questioning C.E.O. Lloyd Blankfein, C.O.O. Gary Cohn, and C.F.O. David Viniar, among others, the author explores how their firm navigated the collapse of September 2008, why it has already set aside $16.7 billion for compensation this year, and which lines it’s accused of crossing.

There’s more on the heinous crimes of the week-end, violent rhetoric from Right (spare me the “Both-Sides-Do-It”), and intimidation of political figures.
How the Tucson Massacre Rattled U.S. Judges

For a moment, U.S. District Judge John M. Roll seemed as likely the main target of the Tucson massacre as Congresswoman Gabrielle Giffords. In 2009, Roll had come under threats severe enough that he and his family were placed under 24-hour protection by the U.S. Marshals Service. After he ruled that a high-profile suit brought by a group of Mexican immigrants could proceed, his phone lines were deluged with angry callers — including at least four that threatened violence.

At the time, the U.S. Marshal for Arizona told the Arizona Republic that the threats had been egged on by radio talk-show hosts critical of Roll’s decision. Critics began sharing his personal information on Web sites as the rhetoric became more heated. The round-the-clock protection lasted a month, though Roll ultimately decided not to press charges against the callers.
[…]
For some members of the judiciary, the news that Roll was among the six who died during the shooting spree in Tucson was unsettling in ways that went beyond personal grief from those who knew and served with Roll, who had been placed on the bench by President George H. W. Bush in 1991 at the urging of Senator John McCain. Just minutes after learning of the slayings, U.S. District Judge Robert Gettleman of Chicago told TIME in an email that the news of the murder was “very disturbing… Just when we were beginning to feel more secure.”

Or I see. There’s a big difference between men’s tears and women’s tears. As “luck” would have it (or as always in these matters), men’s tears are a turn on for women, but women’s tears are a turnoff for men. Or is it? There’s an interesting study out but not all agree on the interpretation of the results.
Crying, Sex, and John Boehner: Not So Fast

The study is, predictably, getting a lot of media attention (WOMEN’S TEARS SAY, ‘NOT TONIGHT, DEAR’), but experts on tears and crying aren’t so sure the findings mean what the Weizmann scientists say they do. “I like their study very much, and I think their results are fascinating, but I have my doubts about their interpretation,” says Vingerhoets. “I suspect the sexual effect is just a side effect: testosterone, which was reduced when men sniffed the women’s tears, isn’t only about sex: it’s also about aggression. And that fits better with our current thinking about tears.”

Sooooo…. What are you reading this morning?


Wing Nut Scramble (Live Blogging a Shooter Tragedy)

You don’t have to have a doctorate in psychology to figure out that the latest spree shooter had serious mental illness problems. What’s odd to me is the sudden scramble–typical  in these situations–by ideologues ready to label his mental illness as a symptom of political ideology.  No where is this more rampant than the number of right wingers that are taking one mention of one book–The Communist Manifesto–as an indication that suspected shooter Jared Loughner was a leftie.  That’s pretty interesting given that WAPO is reporting that he’s a veteran. Loughner tried to enlist in the military but was rejected. (See update below.) They’re screaming ‘leftie’ while simultaneously scrubbing their sites of items like the Palin Tweet and the Palin Map of Congressional Critterz’ Districts–including that of shooting victim Congress Woman Gifford–with rifle sight images over the top.  Is this kind of after-the-fact scrubbing a mea culpa of sorts?  They’re sure acting like they own it.

Giffords has been a target of violent threats for some time now.  The threats have come  from the right wing and the majority have occurred since the HCR vote last summer.  Folks that say that this shooter’s acts–no matter how linked to his personal mental hell–can’t be put into the context of  encouraging and enabling violence haven’t been paying attention. Violent imagery and rhetoric is a loaded gun.  It’s the same denial that comes from anti-abortion supporters and their disconnect from the shooting of Dr. Gun. You encourage it.  You own a role in it.  It’s not the root cause of mental illness, but it establishes violence as a potentially heroic act.  Most psychotic people are crazy but not stupid.  They can feel the heroic myth. Many seek a way to go down with it.

But it’s worth noting that Giffords — who in 2006 became the youngest woman ever elected to Congress, at 36 — has, for more than a year, been the target of violence-tinged rhetoric from political opponents and of threats that appear to have come from right-wing activists.

Asked by the New York Post whether his daughter had any enemies, Giffords’s father replied: “The whole tea party.”

In August 2009, an attendee at a Giffords town-hall meeting dropped a handgun, leading Giffords’ staff to call the police. “We have never felt the need before to notify law enforcement when we hold these events,” her spokesman said at the time.

After Giffords voted in favor of the health-care overhaul in March, she said that vandals had broken the glass door of her Tucson office. “The rhetoric is incredibly heated, not just the calls but the emails, the slurs,” she told MSNBC at the time. “Things have really gotten spun up.”

Ben Smith has a brief thread up on the foot prints left in social media by alleged shooter Jared Loughner.  Some of them are bizarre rants about currency and the gold standard that are worthy of a Glenn Beck or Ron Paul fan.  There’s also some crazed references to correct English grammar and mind control.   Who knows which flake in the vast American Breakfast Bowl of ideology some of this stuff comes from?

Read the rest of this entry »


New Chairman of House Oversight Committee Lacks Moral Gravitas (To Put It Mildly)

New House Oversight Committee Chairman Darrell Issa (R-CA)

Now that the Republicans control the House of Representatives, the new Chairman of the House Committee for Oversight and Reform will be five-term California Representative Darrell Issa.

According to Wikipedia, Issa is the wealthiest member of Congress with a net worth of $250 million. Before running for office Issa was CEO of Directed Electronics, which makes car alarms and other security devices for autos.

In a recent appearance on the In an October 2010 appearance on the Rush Limbaugh radio show, Issa told the right wing host that Obama is “one of the most corrupt presidents in modern times.”

Issa later tried to backtrack on this statement, saying he was referring to the Obama administration, not the President personally. On Wednesday, he defended his remarks by telling John King that he and CNN did not understand the meaning of the word “corrupt.”

Speaking to CNN’s Chief National Correspondent John King Wednesday, Issa offered his definition of the word “corrupt”:

“I think people misunderstand the meaning of the word corrupt, and obviously, CNN does. ‘Corrupt’, or ‘corrupted’ or ‘failure’, it’s no different than a disc drive that’s given you some bits that are wrong,” Issa said on CNN.

Issa continued, “I have never said it’s illegal.

Issa then explained that the “corruption” he is most concerned about is government regulation of corporations. In fact, Issa recently sent letters to business leaders, asking them to say which regulations they would like to get rid of.

Recipients of the letters include the American Petroleum Institute, The Association of American Railroads, and Toyota. Politico reports that the invitation has garnered complaints against a wide-range of regulations. Environmental protections have drawn lots of criticism. Everything from limiting waste-water flows from construction sites, to greenhouse gas and hazardous air pollutant controls, have been attacked. in the name of economic growth industries are also requesting repeals or blocks on everything from labor safety regulations, financial reforms, and consumer safety.

At Huffington Post, Ryan Grim reported yesterday that Issa plans to investigate the foreclosure crisis by focusing primarily on Fannie and Freddie instead of corporate giants like Bank of America.

This is the man who will be “investigating” the Obama administration and “the operations of Government activities at all levels with a view to determining their economy and efficiency.” Incidentally, one of Issa’s sidekicks on the committee is Dan Burton of Indiana, the guy who “investigated” death of Vince Foster by shooting a watermelon in his backyard in front of reporters.

According to Donald Cohen and Peter Dreier at Alternet,

Issa plans to hold hearings of his Oversight and Government Reform Committee to explore how he can help corporate America rid itself of “burdensome government regulations.” According to Politico, Issa asked businesses, including Duke Energy, FMC Corp., Toyota and Bayer, to supply him with their wish lists. He also sent letters to industry lobby groups including the American Petroleum Institute, National Association of Manufacturers (NAM), the Association of American Railroads, the National Petrochemical & Refiners Association (NPRA) and entities representing health care and telecommunication providers.

It isn’t hard to imagine what that their wish list will look like. Indeed, it hasn’t changed much in the past century. The specific bills and issues ebb and flow, but the business mantra is always the same. Get government off our backs. Let the “free” market determine what we make and how we make it. We can police ourselves. Too many government rules kills jobs.

This would almost be fun to watch if there weren’t so much at stake.

So Who is Darrell Issa? Read the rest of this entry »


Our Dismal Job Market

Economists–well at least NeoKeynesian economists that look at data–frequently use words like “rigid” and “sticky” to describe the jobs market.  Rigid is a good word.  It means “deficient in or devoid of flexibility”.  The Labor Markets are the biggest empirical hurdles to jump if you want to buy into some variant of supply-side economics or NeoClassical economics.

Wages and quantities of labor used to adjust very slowly.  They appear to be dismally slow these days. Part of this is obviously due to outsourcing.  The substitution of  foreign (e.g. outside of our borders; legal status really doesn’t matter for purposes of macro growth) for US-based workers seems to have made the NeoKeynesian assumptions of sticky and rigid wages even more so.

What’s very interesting about today’s BLS report on jobs is that the unemployment rate inched down but the fundamentals in the job market don’t appear to be changing much.  Plus, the unemployment rate inched down based on the way it’s calculated by more than anything else.  It’s not really fooling people that know economics or finance, but will the public at large embrace the nuance? A huge portion of the populace is simply leaving the job market.

Felix Salmon explains some of the nuances in his Reuters Blog today called “No good news for the long-term unemployed”. He focuses on some of  the buried  numbers rather than the top number.  Yes, he has a nifty graph you should check that out too.

The December jobs report turns recent history on its head. We’ve been used to healthy increases in employment making no dent in the unemployment rate, but this time a mediocre jobs figure—just 103,000 new jobs were created—coincides with a gratifyingly large fall in unemployment, to 9.4% from 9.8%. For those keeping track at home, that’s employment up by 103,000 and unemployment down by a whopping 556,000.

There’s no doubt that the headline payrolls number is a disappointment. The economy just doesn’t seem to be creating jobs: we need to see 150,000 new jobs a month just to keep pace with population growth. But is there some good news, at least, on the unemployment front?

I’m not sure. While unemployment is down from both December 2009 and December 2010, it’s down only for those who have been out of work for less than 26 weeks. The ranks of the long-term unemployed are still rising

Well, it’s not so ‘whopping’  in context–as we’ll see in a moment–but let’s look at some other things.  The underlying numbers appear to be a total disconnect–and Salmon’s analysis is not unique among economists’ take on the situation–with the assessment of the President who just appointed lawyer Gene Sperling to do an economist’s job.  President Obama also continued his rhetoric on substanial job creation being just around the corner and how the trend is just so much rosier under his leadership.  Does any one outside of his circle actually believe this?

Now, read this Bloomberg article and notice the part at the end that I highlighted.

Obama said Sperling has been an “extraordinary asset” over the past two years as a senior adviser to Treasury Secretary Timothy Geithner, helping to pass a small-business jobs bill and a tax-cut compromise.

Obama said one of the reasons he selected Sperling is that “he’s done this before,” a reference to Sperling’s 1996-2000 leadership of the NEC during the Bill Clinton administration.

Obama also named Jason Furman as principal deputy director of the NEC, and nominated Katharine Abraham to the Council of Economic Advisers. He also nominated Heather Higginbottom as deputy director of the Office of Management and Budget.

Obama spoke on the same day that government data showed that the U.S. added 130,000 jobs in December and the unemployment rate dropped to 9.4%.  Read MarketWatch’s story about jobs report.

Obama trumpeted 12 straight months of private-sector job creation and said, “the trend is clear.” But he said there’s a lot of work to do to get more people back in the labor force, and pledged to forge ahead with more job-creation efforts.

Sperling was also deputy NEC director during Clinton’s first term, which was marked by standoffs that resulted in government shutdowns. Sperling helped negotiate a balanced budget agreement in 1997 and was an advocate for the repeal of the Glass-Steagall law that separated commercial and investment banking.

Read the rest of this entry »


Economist Heidi Shierholz: “There’s never been a pool of missing workers this large”

Economics isn’t my area of expertise, but I can read, and the top story at Huffpo right now is pretty disturbing. Author Lila Shapiro spoke to some economists, including Heidi Shierholz, about the December jobs report, which came out today.

Although the unemployment rate fell to 9.4 percent from 9.8 percent in December, bringing the total number of officially unemployed Americans to 14.5 million, only 103,000 jobs were added in December according to the Labor Department’s BLS report — a number significantly lower than expected. (The Wall Street Journal reported that many Wall Street analysts were predicting “at or above 200,000” new jobs.)

The news gets worse: less than half of the drop in unemployment rate can be attributed to new job creation — the other half came from 260,000 Americans who have dropped out of the labor force altogether.

This brings the percentage of Americans who are either employed or actively looking for work down to 64.3 percent, what economist Heidi Shierholz calls “a stunning new low for the recession.”

[….]

“We have now added jobs every single month for a year,” Schierholz said. “So you would think that there would be labor force growth, these missing workers starting to come back in. Not only is that not happening, it’s actually starting to go in the other direction. There’s never been a pool of missing workers this large. It’s not clear to me when they’ll come back.”

That can’t be good, no matter what the White House and CNN try to get us to swallow.

At the Wall Street Journal the reaction to the jobs report doesn’t make things sound much better. One headline reads: Markets Whipsawed After Jobs Report. Here’s the gist:

Investors hoped that the jobs report would confirm expectations that a robust recovery was finally filtering through to long-stagnated labor markets. But after traders positioned aggressively this week on lofty expectations of a strong payrolls figure, the disappointing data had a relatively muted impact.

[….]

The Labor Department reported that the U.S. economy created 103,000 new positions last month, far below market consensus expectations for a 150,000 gain. In November, the economy added 39,000 jobs. The unemployment rate fell sharply to 9.4% from 9.7%.

Sustainable job creation has been elusive in an economy that is still recovering from the 2008 financial crisis. As a result of the troubled job market, analysts think the Federal Reserve is likely to continue full steam ahead with its controversial $600 billion plan to reinflate the economy.

Dakinikat can give us her expert take on this, but as a layperson, I think it’s obvious that the country is on the wrong track and some one needs to light a fire under the President and his incompetent economic advisers.

HEY VILLAGERS! WE NEED JOBS!!!