Thursday Reads
Posted: October 27, 2011 Filed under: #Occupy and We are the 99 percent!, Catfood Commission, Super Committee | Tags: derivatives, Dodd Frank, Euro, Euro Debt Crisis, Herman Cain, Right Wing Lies, Super Committee, Tax Dodging, Volcker Rule, Wall Street 27 CommentsIt’s amazing what kind of nonsense the right wing can come up with when their interests and myths are threatened. Here’s the latest Faux News canard about Occupy. It’s an ACORN plot! If any one believes that, I have a few bridges across the Mississippi I’d like to sell them. The Crescent City Connection even comes with tolls!!
How can a group that folded 19 months ago secretly conspire to bolster Occupy protests? Apparently, “sources tell” Fox News that people who used to work for ACORN have now taken on roles helping organize Occupy protests. In fact, Fox News reports that the former director of New York ACORN and his aides are now working for New York Communities for Change (NYCC), which is turn supporting demonstrations.
I’m not sure why this would be especially interesting if true — if folks who used to be involved with one group then started playing a role with another, who cares? — but as it turns out, a spokesperson for Occupy Wall Street said the NYCC isn’t playing a role in the protests anyway. But don’t worry, Fox News’ unnamed “source” said the group really is up to secret misdeeds, adding, “And yes, we’re still ACORN, there is a still a national ACORN.”
It’s safe to assume that Fox News has reliable contacts among progressive activist organizations, right? There’s bound to be plenty of former ACORN staffers and Occupy activists eager to dish to the Republicans’ cable news outlet, right?
Please. It’s really no wonder at all why Fox News’ audience ends up believing so much nonsense.
They do believe the nonsense, which makes Fox News watchers very dangerous in the voting booth.
Dems on the Super Committee are offering up Medicaid and other ‘entitlements’ in order to get tax increases from Republicans. It didn’t work, but you have to wonder exactly what all they’re willing to put on the table.
Republicans have pressured supercommittee members to reject any deficit-reduction deal that raises taxes — including stimulus spending for the economy would almost certainly be a non-starter for most in the party.
Democrats have said from the beginning that the supercommittee should produce a “jobs plan” that includes “investments” to help the economy.
The supercommittee is charged with devising a plan that will cut at least $1.2 trillion over 10 years from annual deficits, but deep divisions exist on the panel over whether to raise taxes and cut entitlements to meet that goal.
The members met again Wednesday afternoon and Democrats were looking to see if the GOP would present an alternative path to the grand bargain.
You may recall that the grand bargain was the giveaway President Obama offered to Boehner last summer during the debt ceiling talks. More details are available at this WAPO link.
The panel has floundered since meetings began in September. If the supercommittee fails to reach agreement to trim borrowing by at least $1.2 trillion through 2021, automatic spending cuts of an equal amount would be triggered in January 2013. These cuts would strike especially hard at the Pentagon, an outcome that Republicans are eager to avoid.
Ralph B posted this tidbit downthread last night. Chelsea Clinton is said to be considering a congressional run.
Clinton has been approached by “the right people” in the New York Democratic Party, according to one source in Albany. While no decision has been made, Clinton is said to be “actively considering” a Congressional run from New York State in 2012.
Chelsea Clinton, 31, is the only child of former U.S. President Bill Clinton and U.S. Secretary of State Hillary Rodham Clinton.
The discussions of running Chelsea Clinton for a house seat grew out of the redistricting plans currently underway in the New York State legislature in Albany.
The plan is to identify an open seat for Clinton in or around New York City where she currently resides with her husband, Marc Mezvinsky. While no specific district has been determined, New York City and Westchester are said to be the focus with New York’s 18th District considered a strong possibility. The 18th encompasses much of Westchester County, just south of where her parents have maintained a home for the past 12 years.
The Daily Beast reports that Herman Cain was delinquent in paying taxes in 2006. Additionally, he fought paying the bill.
According to court documents obtained by The Beast, Cain and his wife, Gloria, were served in February 2008 with a tax lien totaling $8,558.46 for unpaid income taxes and penalty due for the 2006 calendar year.
Gordon said Cain had filed with the IRS and won a six-month reprieve in paying his 2006 federal taxes as he was undergoing his treatment for stage four lymphoma and believed that filing should also have bought him time with the state of Georgia. “In Georgia, a taxpayer can submit a copy of his federal extension to request an extension of state income taxes,” Gordon said.
But instead, the state sent a notice of overdue taxes in October 2007, and then proceeded with the tax lien four months later, he said.
Cain’s accountant fought the Georgia Department of Revenue on behalf of his client well into 2008 and the two sides finally settled the matter in November 2008. A court formally withdrew the state tax lien on Dec. 8, 2008, court records show.
Gordon said the campaign was researching the exact date on which Cain made the payment to extinguish the lien
Robert Reich thinks that Wall Street is still out of control.
Dodd-Frank is rife with so many loopholes and exemptions that the largest Wall Street banks – larger by far then they were before the bailout – are back to many of their old tricks.
It’s impossible to know, for example, the exposure of the Street to European banks in danger of going under. To stay afloat, Europe’s banks will be forced to sell mountains of assets – among them, derivatives originating on the Street – and may have to reneg on or delay some repayments on loans from Wall Street banks.
The Street says it’s not worried because these assets are insured. But remember AIG? The fact Morgan Stanley and other big U.S. banks are taking a beating in the market suggests investors don’t believe the Street. This itself proves financial reform hasn’t gone far enough.
If you want more evidence, consider the fancy footwork by Bank of America in recent days. Hit by a credit downgrade last month, BofA just moved its riskiest derivatives from its Merrill Lynch unit to a retail subsidiary flush with insured deposits. That unit has a higher credit rating because the Federal Deposit Insurance Corporation (that is, you and me and other taxpayers) are backing the deposits. Result: BofA improves its bottom line at the expense of American taxpayers.
Wasn’t this supposed to be illegal? Keeping risky assets away from insured deposits had been a key principle of U.S. regulation for decades before the repeal of Glass-Steagall.
The so-called “Volcker rule” was supposed to remedy that. But under pressure of Wall Street’s lobbyists, the rule – as officially proposed last week – has morphed into almost 300 pages of regulatory mumbo-jumbo, riddled with exemptions and loopholes.
It would have been far simpler simply to ban proprietary trading from the jump. Why should banks ever be permitted to use peoples’ bank deposits – insured by the federal government – to place risky bets on the banks’ own behalf? Bring back Glass-Steagall.
The MSCI Asia Pacific Index gained 0.9 percent to 120.25 as of 11 a.m. in Tokyo, set for the highest close since Sept. 9. Standard & Poor’s 500 Index futures added 0.8 percent. The 17- nation euro climbed 0.5 percent to $1.3979 and rose 0.3 percent to 106.26 yen. Treasury 10-year notes erased earlier gains. Copper, zinc and lead jumped more than 1.4 percent in London and crude climbed 1.9 percent in New York.
French President Nicolas Sarkozy said the euro region’s bailout fund will be leveraged by four to five times, and investors have agreed to a voluntary writedown of 50 percent on Greek debt. Sarkozy plans to call Chinese leader Hu Jintao today to discuss contributions from the Asian nation to a fund European leaders may set up to fight the crisis, a person familiar with the matter said.
The news of a deal is “certainly mildly positive news for markets,” Adarsh Sinha, head of strategy for Group of 10 foreign exchange at Bank of America, said in a Bloomberg Television interview in Hong Kong. “We have got a plan out but a lot of the details aren’t in place.”
CNN announced the details late last night.
French President Nicolas Sarkozy said Greek bondholders voluntarily agreed to write down the value of Greek bonds by 50%, which translates to €100 billion and will reduce the nation’s debt load to 120% from 150%.
Sarkozy said the leaders agreed to boost the firepower of the EU bailout fund, known as the European Financial Stability Facility, “by four or five fold.” He added that officials have negotiated additional funding from the International Monetary Fund.
The writedowns were one of three inter-related problems political leaders must solve to devise a comprehensive solution to Europe’s debt crisis. They must also determine how to leverage a government-backed bailout fund and stabilize the banking sector.
EU leaders had pledged to resolve these issues Wednesday at their summit in Brussels. But given the bondholders’ resistance, it was unclear until the early hours of Thursday if the leaders would be able to follow through.
Earlier, the European Council issued a statement saying heads of state had agreed to raise capital requirements for banks vulnerable to losses on euro-area government bonds.
Under the terms outlined by EU officials, banks would be required to sharply increase core capital levels to 9% to create a buffer against potential losses. The amount to be raised would be determined after accounting for declines in the value of euro-area government bonds, including debt issued by Greece.
Based on market rates in September, banks will need to raise a total of €106 billion to meet the new targets, according to the European Banking Authority.
So, that’s the headlines that have grabbed my attention today. What’s on your blogging and reading list today?
Saturday Night with the Stupids
Posted: October 22, 2011 Filed under: Republican presidential politics, U.S. Economy, U.S. Politics | Tags: abortion, guns, Herman Cain, hunting, love affairs, Michele Bachmann, pro choice, Rick Perry 12 CommentsI know that title is kind of harsh, but I’m beginning to lose my patience with the Republican candidates for President. How on earth can anyone even consider voting for one of these people? Just looking quickly at the headlines on Google, I was able to find multiple examples of complete idiocy from Rick Perry, Michele Bachmann, and Herman Cain.
Today Rick Perry went pheasant hunting in northern Iowa and was quoted as saying that he has had a “long love affair with guns.”
“As long as I’ve got memory, I had something to go hunting with,” Perry told a small gaggle of reporters at the Loess Hills Hunting Preserve. “It was a long love affair with a boy and his gun that turned into a man and his gun, and then it turned into a man and his son and his daughter and their guns.”
Look, I have nothing against hunting. My grandfather used to go pheasant hunting in North Dakota every year, and we enjoyed eating what he brought back. But I can’t imagine my grandfather ever talking about loving his guns. That’s just sick.
The Boston Globe noted that Perry seemed a lot more comfortable holding a gun than performing on the debate stage. And he wants to make it easy for everyone to become a gun-lover.
As governor, Perry supported legislation that made it easier for Texans to pay for a concealed handgun license, and a bill to let them keep their concealed handgun licenses for five years instead of four. He helped cut agreements with other states to let Texans carry their concealed handguns outside the state.
Perry has his own concealed handgun license — and regularly carries one, once famously shooting a coyote that was threatening his daughter’s Labrador retriever while out on a jog. The gun company, Ruger, has a special version of its .380 in Perry’s honor: the True Texan Coyote Special.
And where it comes to guns, Perry has plenty of the same aggressive bravado he’s displayed on the debate stage. He sent a video introduction to the National Rifle Association Convention that featured him shooting a rifle and calling himself “a believer in the notion that gun control is hitting what you’re aiming at.” (He’s also said it’s “use both hands.”)
Something tells me if Perry ever got elected, he’d get worse treatment from the Villagers than Carter or Clinton did. He comes across as the consummate hillbilly (not that there’s anything inherently wrong with being a hillbilly).
Perry also announced his “economic plan” today, and it’s going to drive Dakinikat nuts.
Rick Perry previewed the economic plan he will roll out on Tuesday, saying he would call for trashing the current tax code and replacing it with a flat tax, ending all earmarks, enacting a balanced budget amendment and reforming entitlements.
“It’s time to get Washington out of the way in order for us to preserve the American way,” Perry said. “The American people may be bruised but they’re not broken and they want a new president who can deliver the hope and change that this one that we have today promised.”
It sounds pretty changy, but not very hopey, if you ask me. Perry also had this to say about women’s reproductive rights:
Maintaining the U.S. moral authority in the world begins with preventing abortion and protecting “innocent and vulnerable unborn children,” Perry said.
For that reason, government must take an active role in legislating restrictions on the procedure, he said.
Really? The country’s “moral authority” depends on controlling women’s bodies? What about torture, war, summary assassinations, and government corruption? I guess those are all “moral.”
Next up, Michele Bachmann. A couple of days ago, her entire New Hampshire staff quit, and she didn’t even know it.
According to POLITICO and WUMR, Bachmann’s entire New Hampshire staff jumped ship, partly because they hadn’t been paid in a month. That story seemed to make sense, considering the severe fundraising shortfalls in the Bachmann camp and growing dissatisfaction with her as a candidate.
However, Bachmann released a statement about her New Hampshire staff, saying, “That is a shocking story to me… I don’t know where this came from, but we’ve made call and it’s certainly not true.” Well, if she’s made calls, then certainly we must believe her! There’s no way Michele Bachmann could be so incredibly wrong about the status of her own campaign!
….According to Jeff Chidester, who is either Bachmann’s current New Hampshire campaign director if you believe Michele, or her former campaign director if you believe Jeff, “The New Hampshire team has quit.” When asked about Michele’s statement that they were still working for her, Chidester added, “I’m sorry the national team is confused. They shouldn’t be.”
Sigh…
But Herman Cain has to be the stupidest of these three. He amazed everyone by going on CNN and, in so many words, declaring himself pro-choice. Now he’s trying to walk that back, and not doing a very good job of it. Here his is on Fox News sounding completely confused. This guy has no understanding of any issue–even the ones most near and dear to his wingnut fans.
Tuesday Reads
Posted: October 18, 2011 Filed under: morning reads | Tags: #OccupyWallStreet, Amish renegades, Anita Perry, Christian fundamentalists, evangelicals, Glass Steagall Act, global occupy protests, hair-cutting attacks, Herman Cain, Rick Perry, the burning bush, Volker rule 18 CommentsGood Morning!! I’m struggling with some kind of viral thing. I don’t know if it’s the flu or what, but I’ve been really tired and my brain hasn’t been working properly. Anyway, I’ve got some odds and ends of news for you, and I hope what I write will make sense.
There’s a good summary of the global nature of the Occupy protests at the Guardian:
In Madrid, tens of thousands thronged the Puerta del Sol square shouting “Hands up! This is a robbery!” In Santiago, 25,000 Chileans processed through the city, pausing outside the presidential palace to hurl insults at the country’s billionaire president. In Frankfurt, more than 5,000 people massed outside the European Central Bank, in scenes echoed in 50 towns and cities across Germany, from Berlin to Stuttgart. Sixty thousand people gathered in Barcelona, 100 in Manila, 3,000 in Auckland, 200 in Kuala Lumpur, 1,000 in Tel Aviv, 4,000 in London.
A month to the day after 1,000 people first turned up in Wall Street to express their outrage at corporate greed and social inequality, campaigners are reflecting on a weekend that saw a relatively modest demonstration in New York swell into a truly global howl of protest.
The Occupy campaign may have hoped, at its launch, to inspire similar action elsewhere, but few can have foreseen that within four weeks, more than 900 cities around the world would host co-ordinated protests directly or loosely affiliated to the Occupy cause.
The exact targets of protesters’ anger may differ from city to city and country to country. But while their numbers remain small in many places, activists argue that Saturday’s demonstrations, many of which are still ongoing – and are pledged to remain so for the foreseeable future – are evidence of a growing wave of global anger at social and economic injustice.
It’s just amazing how this movement has grown.
You know how Dakinikat has been arguing that one of the first things Occupy protesters should be demanding is the restoration of the Glass-Steagall Act? Well, Matt Yglesias says it’s no big deal: Glass-Steagall is Mostly a Red Herring.
Something I’ve heard from participants in the 99 Percent Movement is a revival of interest in rescinding the repeal of the 1932 Glass-Steagall Act. I think this is largely a misunderstanding, and it’s a actually a different — slightly more obscure — banking regulation from the same era that people are interested in.
First off, what did Glass-Steagall do? Well it did a number of things (like establish the FDIC) that were never repealed. But the rule that was repealed in the 1999 Gramm–Leach–Bliley Act were restrictions on the same holding company owning a bank and owning other kinds of financial companies. The thing about this is just that there’s really nothing in particular about co-ownership that you can point to as having been a problem in the financial crisis. And if anything that fact seems to indicate that the repealers were right to think there’s no special problem here — even in a huge financial crisis combined financial firms worked no worse than other kinds.
I’d like to see Matt debate Dakinikat about this on national TV. Here’s what Mark Thoma had to say about it:
I am sympathetic to this point of view, i.e. that the elimination of Glass-Steagall wasn’t an important causative factor in the crash. However, as I said a few days ago:
There is a debate over the extent to which removing Glass-Steagall — the old version of the Volcker rule — contributed to the crisis. However, whether the elimination of the Glass-Steagall act caused the present crisis is the wrong question to ask. To determine the value of reinstating a similar rule, the question is whether the elimination of the Glass-Steagall act made the system more vulnerable to crashes. When the question is phrased in this way, it’s clear that it has for the reasons outlined above.
So there’s still a reason to reinstate some version of the rule even if it wasn’t the main problem in the banking sector this time around.
I have a couple of stories about crazy Republican candidates, well one candidate and one candidate’s wife. First, on Sunday Herman Cain discussed his views on abortion:
“I believe in life from conception, and I do not agree with abortion under any circumstances,” Cain responded. “Not for rape and incest because if you look at, you look at rape and incest, the, the percentage of those instances is so miniscule that there are other options. If it’s the life of the mother, that family’s going to have to make that decision.”
Pressed on the life of the mother exception, Cain stuck to his answer, saying, “That family is going to have to make that decision.”
And check this out (via NPR). Last year Cain wrote a piece for Red State in which he called Jesus “the perfect conservative” and claimed that a “liberal court” was responsible for Jesus being crucified.
He helped the poor without one government program. He healed the sick without a government health care system. He feed the hungry without food stamps. And everywhere He went, it turned into a rally, attracting large crowds, and giving them hope, encouragement and inspiration.
For three years He was unemployed, and never collected an unemployment check. Nevertheless, he completed all the work He needed to get done. He didn’t travel by private jet. He walked and sailed, and sometimes traveled on a donkey…. And when they tried Him in court, He never said a mumbling word….
The liberal court found Him guilty of false offences [sic] and sentenced Him to death, all because He changed the hearts and minds of men with an army of 12.
Funny, most liberals are opposed to capital punishment… Can you imagine this guy in the White House? That would be proof that there is no god.
Next up, Anita Perry, wife of presidential candidate Rick Perry. It seems she’s the real extremist evangelical behind Governor Goodhair. Last Thursday, she gave a very revealing speech in South Carolina in which she claimed that she and her husband have been “brutalized” by the other Republican candidates because of their “faith.”
The Texas first lady weaved [sic] together religion and politics in a speech at North Greenville University, characterizing her husband’s decision to seek the presidency in August as a calling from God. Perry suggested her husband was being targeted for his evangelical Christian faith.
“It’s been a rough month. We have been brutalized and beaten up and chewed up in the press to where I need this today,” she said. “We are being brutalized by our opponents, and our own party. So much of that is, I think they look at him, because of his faith. He is the only true conservative – well, there are some true conservatives. And they’re there for good reasons. And they may feel like God called them too. But I truly feel like we are here for that purpose.”
NPR noted that Mrs. Perry admitted in the speech that she had been the one who pushed Governor Goodhair to throw his hat into the presidential ring.
According to Mrs. Perry, it was she, not her husband, who first heard the divine call that her husband should run for president.
“There was a nagging, pulling at my heart for him to run for president. He didn’t want to hear a thing about running for president. He felt like he needed to see the burning bush. I said ‘Look, let me tell you something. You may not see that burning bush but there are people seeing that burning bush for you.’ “
The “burning bush” was a reference to the Old Testament story found in Exodus 3 where God gives Moses his marching orders to tell Pharoah to release the Israelites from Egyptian bondage.
Among the noteworthy aspects of that Old Testament tale, is that it’s Moses who gets the divine message directly. It doesn’t come via an intermediary like, say, Aaron his older brother.
That’s the thing about such callings. They’re intensely personal. That’s why they’re so often marked by such a profound sense of drive and personal mission and willingness to sacrifice.
If Gov. Perry had doubts, which his wife certainly makes it appear was the case, and had to be persuaded to run, that could certainly help explain what looks to many as a lack of preparation for a national campaign.
Yikes! The burning bush? These people are completely out of touch with reality.
Yesterday Reuters published an in-depth article about Anita Perry, in case you’d like to know more.
Speaking of fundamentalist religions, here’s a bizarre story from The New York Times about Amish “renegades” attacking other Amish people.
BERGHOLZ, Ohio — Myron Miller and his wife, Arlene, had been asleep for an hour when their 15-year-old daughter woke them and said that people were knocking at the door.
Mr. Miller, 45, a stocky construction worker and an Amish bishop in the peaceful farmlands of eastern Ohio, found five or six men waiting. Some grabbed him and wrestled him outside as others hacked at his long black beard with scissors, clipping off six inches. As Mr. Miller kept struggling, his wife screamed at the children to call 911, and the attackers fled.
For an Amish man, it was an unthinkable personal violation, and all the more bewildering because those accused in the attack are other Amish….
The attackers, the authorities said, had traveled from an isolated splinter settlement near Bergholz, south of the Miller residence. Sheriffs and Amish leaders in the region, home to one of the country’s largest concentrations of Amish, had come to expect trouble from the Bergholz group. It is said to be led with an iron hand by Sam Mullet, a prickly 66-year-old man who had become bitterly estranged from mainstream Amish communities and had had several confrontations with the Jefferson County sheriff.
Too weird. So…. What are you reading and blogging about today?










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