Sunday Reads

JeanGood Morning!

Minx is stuck in the snow and holed up in a hotel so I’ve got your reads this morning!

I was one of those earth mother types to Doctor Daughter and I tried to do the same with youngest daughter although the cancer thing got in the way and the grandparents had to step in for me.   I still am an earth goddess wannabe. I admit, I’m a hippie at heart.   I breast fed Doctor Daughter until she took her first step on her first birthday and  weaned herself on the same day.  I had to wean my second one to soy formula at 5 months because of the chemotherapy.  Well, that and the shock of the stage 4 diagnosis just dried me up.

I was never away from Doctor Daughter’s side for well over a year.  I actually joined the La Leche League because I wanted to be around other nursing mothers and bought their cookbook.  I love to cook and so we made everything from the garden when possible and always by hand.  The cookbook had a kid’s snack section and we used to make everything together. Making healthy food was part of our together time.

My daughter had really healthy snacks.  I decided to turn to teaching at the college level rather than return to corporate life when she turned 18 months.  She went to Montessori preschool while I taught in the morning. Her dad stayed with her for my one evening class.  Montessori insisted on healthy snacks. It wasn’t until we moved from our condo to a newly built, two story house in a neighborhood with lots of stay-at-home moms that I had folks calling me up about her weird predilections. Did I know my daughter had no idea that kids ate Spaghettios and that pasta could come from a can? How come she’s never seen candy before? Well, she had, it was just my Dad’s homemade fudge that didn’t come in wrappers.  How come she always asked for Apple Juice when offered Koolaid or Cola?  My daughter didn’t eat or drink anything she hadn’t seen before and I guess they were shocked!

I always laughed a lot at this because I worked as a full time college instructor teaching finance and economics so I juggled all kinds of roles. But both my daughters had fresh, soft clean cotton diapers and home made meals. Both were introduced to junk food by stay-at-home moms who should’ve had time to find their inner earth goddesses too.  I later  learned that her friends spent more time in the local spa/salon’s childcare than she spent at Montessori with her pink tower, her sandpaper letters, and her healthy snacks. Maybe that explains why I’m the only one with the doctor, but hey, I really shouldn’t be judgmental, should I?

It wasn’t me that introduced Doctor Daughter to junk food.  It was the local stay-at-home suburban moms who needed me to tell my daughter that what they wanted to feed her wasn’t weird and she should stop giving it the evil eye.  I mean, wouldn’t you shriek if some one tried to serve you Spaghettios?

Youngest daughter went on a jag as a toddler–like toddlers frequently do–and became a vegan for about a year.  She would only eat salads, vegetables, and carbs. It totally freaked my dad out but she loved tossed salads with blue cheese dressing better than anything and I never could figure out why wieners and mac were some how more filling and hence,better.  She was two years old.  That’s why I have no idea why eating healthy is controversial or considered an impossible dream for kids.  My kids never missed this kind of crap and were, well, really wierded out when their friends moms tried to feed them anything we hadn’t prepared ourselves.  They also couldn’t understand why only their Montessori friends didn’t leave their playroom a mess, but that’s another story.  Believe me, kids will eat healthy food if that’s the only thing they are offered from day one.  One of the things Doctor Daughter complains about in her ob/gyn practice these days is the number of moms who are so overweight and have diabetes that many of them are classified as high risk in their prime child bearing years.  Unfortunately, these are also the moms that are on medicare and are least likely to get help.

The Obama administration proposed regulations Friday that would prohibit U.S. schools from selling unhealthy snacks.

The 160-page regulation from the Department of Agriculture (USDA) would enact nutrition standards for “competitive” foods not included in the official school meal.

In practice, the proposed rules would replace traditional potato chips with baked versions and candy with granola. Regular soda is out, though high-schoolers may have access to diet versions.

“Although nutrition standards for foods sold at school alone may not be a determining factor in children’s overall diets, they are critical to providing children with healthy food options throughout the entire school day,” the proposed rule states.

“Thus, these standards will help to ensure that the school nutrition environment does all that it can to promote healthy choice, and help to prevent diet-related health problems.”

The rules are a product of the 2010 Healthy, Hunger-Free Kids Act, which also overhauled the nutritional make-up of regular school meals. They would apply to any school, public or private, that participates in the National School Lunch Program and the School Breakfast Program.

Those rules saw a backlash from conservative lawmakers who said students were going hungry as a result of calorie limits. A GOP House member famously compared the rules to “The Hunger Games.” The USDA eventually relaxed some guidelines in response.

Believe me, kids that don’t eat junk food aren’t going hungry.  They’re just not getting addicted to stuff that’s not good for them.  My dad was always yelling at me to “give that kid some real food” when she was a few months old and only on breast milk. I dunno.  That’s Dr. Daughter up there as a toddler with Arlo Guthrie Mousehound.  Does she look like she was a neglected and starved child to you? Oh, and she got those glasses because she couldn’t read the music when I was teaching her to play piano.  I caught her early on that too. I have no idea why so many adults underestimate kids but they do.  I tried to get my children interested in everything when they were little.  The deal was to let them find their thing and see what stuck.  Both of them still play piano.  Both of them still eat healthy.  It wasn’t “The Hunger Games” at our house.  Both my girls were off the normal growth charts so, I guess, congress thinks I’m a miserable excuse for a mother but really, I am glad they ate sushi in the high chair and never discovered the golden arches until some one turned the TV away from Sesame Street.  Believe me, it wasn’t me.

I have many friends from Bangladesh including my primary professor. It’s one of the reasons that I watch its economy and my heart breaks when I read how so many young women are dying in its clothing factories.  Factory fires in Bangladesh and Pakistan have killed more than 400 people. These factories
primarily make clothing for WalMart, Sears and other U.S. retailers.   A lot of these deaths might be due to the governments who don’t seem to care about the safety of the factories, but don’t these companies bear some responsibility too?  Economist Mark Thoma debates colleague Jagdish Bhagwati who argues that its the fault of the local governments.

I agree that the Bangladeshi government should “step up to the plate to establish proper regulations and monitoring,” but companies have a role to play too (they may, for example, have political power that can be used to block or encourage regulation and monitoring, and there is the moral obligation to protect workers as well). If we assume the companies can’t do much, and don’t hold them accountable — if we brush it off as an inevitable response to market pressures in an environment with few constraints on this type of behavior — they’ll have no incentive to change.

I continue to despair on what I consider a rise in a neoconfederacy and insurrectionist movement in the country.  Why is the so?  Chris Hedges writes that “as Southern whites sink into economic despair, more and more are retreating into a fictional past”.   Where does this leave our country as a nation divided that cannot not stand?  Why do some people glorify the likes of Confederate General Nathan Bedford Forrest to this day?

Forrest, who is buried in Forrest Park under a statue of himself in his Confederate general’s uniform and mounted on a horse, is one of the most odious figures in American history. A moody, barely literate, violent man—he was not averse to shooting his own troops if he deemed them to be cowards—he became a millionaire before the war as a slave trader. As a Confederate general he was noted for moronic aphorisms such as “War means fighting and fighting means killing.” He was, even by the accounts of those who served under him, a butcher. He led a  massacre at Fort Pillow in Henning, Tenn., of some 300 black Union troops—who had surrendered and put down their weapons—as well as women and children who had sheltered in the fort. Forrest was, after the war, the first grand wizard of the Ku Klux Klan. He used his skills as a former cavalry commander to lead armed night raids to terrorize blacks.Forrest, like many other white racists of the antebellum South, is enjoying a disquieting renaissance. The Sons of Confederate Veterans and the West Tennessee Historical Commission last summer put up a 1,000-pound granite marker at the entrance to the park that read “Forrest Park.” The city, saying the groups had not obtained a permit, removed it with a crane. A dispute over the park name, now raging in the Memphis City Council, exposes the deep divide in Memphis and throughout much of the South between those who laud the Confederacy and those who detest it, a split that runs like a wide fault down racial lines.

Another thing that worries me is the current use of drones in our nation’s “war” against terrorist.  Is Obama the “Drone Ranger” as Bill Moyers and guests suggest?  Will any one criticize our policy at John Brennan’s confirmation hearing as proposed CIA director?

A key player in our government’s current drone program is John Brennan, who during the Bush presidency was a senior official at the Central Intelligence Agency and head of the National Counterterrorism Center. Reportedly, Barack Obama considered offering him the top job at the CIA in 2008, but public opposition — in reaction to the charges that the Bush White House had approved torture — caused Brennan to withdraw his name from consideration. Nonetheless, Obama kept him on as an adviser, and now, despite Brennan’s past notoriety, Obama officially has chosen him to head the CIA. This time, there’s been little criticism of the decision.

We hope Brennan’s upcoming confirmation hearings on February 7 will offer Congressional critics the chance to press him on drone attacks and whether the Obama administration in its fight against terror is functioning within the rule of law — or abusing presidential power when there has been no formal declaration of war.

Alright, so what would an electric post of mine be without a reference to my graves and graveyard interests?  One of these days, I will find a place M_Id_352404_old_tombwhere I can plant a tent and dust off the remains of people past whose lives were lived in quiet desperation too.

A 1,300-year-old unidentified cluster of 102 tombs, 40 per cent of which were made for infants, have been unearthed in China’s restive westernmost province.

The tombs, found on the Pamirs Plateau in Xinjiang Uygur Autonomous Region, contain wooden caskets with desiccated corpses, as well as stoneware, pottery and copper ware believed to have been buried as sacrificial items, said Ai Tao from the Xinjiang Archaeological Institute.

“The cluster covers an area of 1,500 square meters on a 20-meter-high cliff, an unusual location for tombs,” Ai told state-run Xinhua news agency.

He added that his team was also very surprised to find such a large number of infant corpses.

But further research is needed to determine why so many people from that tribe died young.

Archaeologists said they have also unearthed a large number of well-preserved utensils made from gourds, some of which were placed inside the caskets.

“The burial custom is the first of its kind to be found in Xinjiang,” said Ai.

It is believed that the cluster dates back to the Tang Dynasty (618-907).

At that time, economic and cultural exchanges between China and the West flourished via the ancient Silk Road.

“The shape of the felt-covered caskets show that sinic culture had a great influence on the lives of local people’s some 1,300 years ago,” said Yu Zhiyong, head of the Xinjiang Archaeological Institute.

I’m going to close with a quote from Glenn Beck that I propose is the MOST lunatic thing he’s ever said.  I know, that’s a BIG statement, but judge for yourself.  Brace yourself for unisex bathrooms and mothers dying in combat!  Oh, wait, we already have that, yes?

“This is the dumbest idea I ever heard. Women now fight on the front lines? Democrats are hailing the move as another giant leap forward for equality. Progress, you know. Forward! And on the outside looking in it’s one of those feel good stories—oh great, women are great soldiers too, they deserve an equal chance, oh that’s great.

War is the act of killing each other. And to win, you have to kill people faster than the other team. That’s what war is all about. The enemy’s not going to cower in defeat because we have a female Eskimo Hispanic dwarf cross-dresser and some handicapable, transgendered breast cancer survivor as a soldier on the front line, ready to unleash an attack of unparalleled diversity.”

I dunno, I would find a female Eskimo Hispanic dwarf cross-dresser and some handicapable, transgendered breast cancer survivor on my team, woudn’t you?

APTOPIX-Super-Bowl-Football-New-OrleansHave a great Sunday!  Oh, and I will be waving to you when those blimps cross my front porch today.  All the Dakinis!!! Please save my city from these crazy celebrities and billionaires!!  Here’s a primer on this gross interruption to Mardi Gras.  Don’t forget to take a gander at the photo over there because my tax dollars paid for that giant multicolor egg just waiting to be fertilized by a black helicopter sperm.

Q: What is the Super Bowl?
A: It’s a football game! It’s the last one that gets played in the NFL until next season, meaning the winners get to be Best Football Guys for a year, and the losers are only Second Best Football Guys, which is way worse. It’s also a big event where famous musicians play and fireworks shoot off and so on.

Q: Fun! But what’s football?
A: Football is this game where one team tries to move a ball up a field by carrying it or throwing it and the other team tries to stop them by hitting them. Every time the guy carrying the ball falls down or the ball hits the ground play stops for a bit, then the players reorganize themselves and play starts up again. If one team doesn’t do a very good job moving the ball up the field, they give the ball to the other team. This goes on for three hours. The teams also kick the ball through a big yellow Y sometimes.

Q: That sounds terrible and boring. Why do people play this game?
A: Because they love it! Hahahahaha! No, actually many of the men playing in the Super Bowl get paid millions of dollars to do football.

Q: Whoooooaaaa! How did that happen?
A: Well, it turns out that people really, really like watching men play football on television. So many people watch football that companies pay the television folks a lot of money to show their commercials during the games, and that money trickles down to the NFL’s owners and then their players.

Yeah, and something tells me that we probably could’ve made more money off of not disturbing Mardi Gras had our Mayor not wanted to be on National TV so very much.  What’s on your reading and blogging list this morning?


The State of Our Union

To put it simply – CRAZY!     

I’m beginning to think that there must be something in the drinking water. The Right Wingnuttery has risen to unforeseen heights in the past few weeks. Tracing its beginning isn’t an easy task. I would imagine that, based on our differing ages and our personal experiences that it will be difficult to reach a consensus on exactly what caused the extreme right turn our politics have taken. Let me put forth some of my personal suggestions, not in any particular order:

  • The election of the B movie actor, Ronald Reagan
  • Jerry Falwell and the Moral Majority
  • Repeal of the Fairness Doctrine
  • The consolidation of the media
  • The rise of the Mega-Churches
  • Rush Limbaugh and his imitators getting their own bully pulpit on the radio
  • Gingrich’s Contract ON America
  • The stealing of the presidency by George & Jeb Bush & the Supreme Court
  • 9/11
  • The plucking of Sarah Palin from the frontier in Alaska
  • The Fox News Channel
  • The birth of the Tea Party

Some of these may qualify only as fuel for the fire as opposed to being actual triggering events.  Feel free to add to the list.  I’m sure that I’ve forgotten something critical to explaining the mass hysteria that surrounds us.

There is hardly a day that goes by that I don’t spend some time trying to understand the mean-spirited, venomous attacks on nearly everything I support.  Those thoughts are often interrupted by being blind-sided by something else coming under attack.  Let me give you just one recent example that left me speechless and more confused than ever.

One of my employees and I were having a discussion about some mail returned by the post office. She began by complaining about the post office, saying that the first thing she would do would be to get rid of the postal union.

Okay, to some that might not be a moment of confusion.  Her position, however, astounded me. I knew already that she is firmly planted in the Right Wingnuttery camp, but her vehement opposition to the postal union surprised me.  Her husband had worked for the phone company which, because of the CWA, provides its employees with good paying jobs, excellent health care coverage and generous retirement benefits.  I knew this because I had once worked for the same phone company as her husband.  He was able to take early retirement with a 6 figure bonus package.  His job permitted them to live more than comfortably for most of their lives.

None of the benefits this family enjoyed would have been possible without the existence of the CWA.  How could my employee not support unions?  Where was the logic and reason?  My conclusion:  she and the rest of the Wingnuttery bunch do not operate on either logic or reason. Apparently, she and the others who vote for Right Wing candidates have swallowed whole the propaganda fed to them by Fox, Rush, the Republican leadership and their preachers.  That’s the only conclusion I’ve been able to come up with.  If you have a clue, please share.

I can only shake my head and live with fear for the future of America and the rest of the world.  While these Right Wingers look forward to The Apocalypse foretold in their sacred book, I fear the inevitable apocalypse their actions and choices are driving us toward.  I’m grateful I’m on the other side of 60 and hope that younger, stronger, reasonable people can hold off this cataclysm for another 10 or 20 years.

I’ll leave you with two things.  The first is a political awareness test given by The Pew Research Center recently.  I urge you to take the quiz and then look at the results, which are shocking.  I don’t know if the majority of the respondents aren’t interested in politics, are terribly misinformed or a combination of both.

Pew Research News IQ Quiz

And then some of the pictures in a recent email from the employee I referenced above.


Live Blog: The Jobs Speech

Well, what kind of bedtime story will be read from TOTUS tonight?

The US labor market is in shambles and we need a big, bold plan like the sort FDR delivered during the Great Depression.  How likely are we to get even a smidgin of that?

Here’s some thoughts from some Congressional Democrats:

Millions of people are waking up every morning without a job and with dwindling hopes of finding one. Their faith in the American Dream is flagging. Their aspirations for a middle class life are being dashed.

This is a national emergency. Unemployment is unacceptably high, more than 9 percent, with more and more Americans slipping into poverty. The number of children in poverty has climbed to nearly 15 million, a moral outrage that must be remedied. Economic despair is afflicting Americans of all stripes — urban and rural, blue and white collar, those with advanced degrees, high school diplomas and GED.’s alike. They haven’t failed; their leaders have failed them.

For communities of color, the pain is even more acute – a 15.9 percent unemployment rate for African-Americans and 11.3 percent for Latinos. Youth joblessness is also persistent (a staggering 25 percent unemployment rate for those age 16 to 19), as qualified young people move into a job market that has nothing to offer them but rejection letters and crushed hopes.

The size of the federal budget deficit is not keeping the American people up at night ; they’re worried about how to pay for groceries. That’s what members of the Congressional Progressive Caucus found when we traveled across the country on a jobs tour this summer, listening to struggling Americans and seeking to elevate their voices over the misleading noise from Washington. Members regularly heard from families struggling to stay afloat, losing their homes, and emptying their savings just to pay the bills.

It’s time for their challenges to become the nation’s challenges. Republicans have proven uninterested in real job-creation efforts. An early glimpse at their so-called jobs agenda reveals little more than additional tax cuts for wealthy individuals and corporations, a rollback of environmental regulations and continued attacks on labor rights.

It’s up to the president to offer an ambitious proposal designed to have an immediate and lasting impact. All members of Congress should support a plan that can create good jobs — putting money in people’s pockets that they can pump back into the economy.

This was written by REP. BARBARA LEE & REP. KEITH ELLISON & REP. LYNN WOOLSEY & REP. RAUL GRIJALVA at Posted at Politico.
Other Democrats are equally outspoken. But will they act to see the President doesn’t propose yet another luke warm Republican plan that they’ve jettisoned in the past?  Maxine Waters wants to know if Obama is more concerned about high unemployment in the black community or Iowa primary voters?


We’ve heard Democratic criticism on the President’s plans in the past.  But when the time comes to fight for Democratic policies, they all fold and vote like sheep.  Let’s sit back and listen to what will undoubtedly be another speech with a few bad ideas that get passed and a few good ideas that will never have a chance of getting beyond rhetoric.


Ladies and Gentlemen, I give you the Teleprompter of the United States …


The Awakening

a little too late …  oh, and some of these folks deserve a swift kick for what they did a few years ago

Paul Krugman:

I’ve actually been avoiding thinking about the latest Obama cave-in, on ozone regulation; these repeated retreats are getting painful to watch. For what it’s worth, I think it’s bad politics. The Obama political people seem to think that their route to victory is to avoid doing anything that the GOP might attack — but the GOP will call Obama a socialist job-killer no matter what they do. Meanwhile, they just keep reinforcing the perception of mush from the wimp, of a president who doesn’t stand for anything.

Maureen Dowd:

Obama’s re-election chances depend on painting the Republicans as disrespectful. So why would the White House act disrespectful by scheduling a speech to a joint session of Congress at the exact time when the Republicans already had a debate planned?

And why is the White House so cocky about Obama as a TV draw against quick-draw Rick Perry? As James Carville acerbically noted, given a choice between watching an Obama speech and a G.O.P. debate, “I’d watch the debate, and I’m not even a Republican.”

The White House caved, of course, and moved to Thursday, because there’s nothing the Republicans say that he won’t eagerly meet halfway.

No. 2 on David Letterman’s Top Ten List of the president’s plans for Labor Day: “Pretty much whatever the Republicans tell him he can do.”

On MSNBC, the anchors were wistfully listening to old F.D.R. speeches, wishing that this president had some of that fight. But Obama can’t turn into F.D.R. for the campaign because he aspires to the class that F.D.R. was a traitor to; and he can’t turn into Harry Truman because he lacks the common touch. He has an acquired elitism.

MSNBC’s Matt Miller offered “a public service” to journalists talking about Obama — a list of synonyms for cave: “Buckle, fold, concede, bend, defer, submit, give in, knuckle under, kowtow, surrender, yield, comply, capitulate.”

And it wasn’t exactly Morning in America when Obama sent out a mass e-mail to supporters Wednesday under the heading “Frustrated.”

It unfortunately echoed a November 2010 parody in The Onion with the headline, “Frustrated Obama Sends Nation Rambling 75,000-Word E-Mail.”

Kevin Drum:

Barack Obama has pretty much caved in to the Republican contention that budget deficits are the biggest problem our economy faces. He’s pretty much caved in to the Republican contention that higher taxes are bad for the economy. And he’s pretty much caved in to the Republican contention that nothing big can done to improve the unemployment picture.

So what’s his next cave-in on the economy? Apparently this. I guess regulatory uncertainty is what’s holding us back after all. So much for the agenda-setting power of the presidency.

Open thread … have at it!!!

(Here’s some info on Chris Britt who penned this great political Cartoon.)


Finally, but is it for real?

When Obama swept into office, there was an ongoing, left-over Bush program in place to rescue the financial system which focused on getting banks recapitalized through the Fed.  Despite worsening unemployment and rising bankruptcies, a stimulus that was top heavy in worthless tax cuts was hurried to congress and a program–that was more of a plea to banks than an actual program–was pasted together to focus on refinancing underwater mortgage holders.  The stimulus may have changed the momentum of GDP growth and the FED program definitely stabilized the banking system, but the programs for homeowners and the unemployed were less-than-successful.  The President was itching to put something together on health care to prove that he could do something that hadn’t been achieved by the Clintons.  It looks now like his primary economic advisers were warning him that just feeding tax breaks to choice businesses and and cheap loans to banks was not going to solve a major financial crisis.  Obama’s focus never really appeared to be on things that mattered at the time.  As a result, serious improvement in key areas of the economy  never materialized.

It’s not a surprise to any of us around here that Obama’s handling of the US economy is souring voters.  James Carville’s mantra–it’s the economy stupid–has never been more relevant to the vast majority of Americans who have been made worse off by the policies of the last ten years.

Americans’ views on the economy have dimmed this summer. But so far, the growing pessimism doesn’t seem to be taking a toll on President Barack Obama’s re-election prospects.

More people now believe the country is headed in the wrong direction, a new Associated Press-GfK poll shows, and confidence in Obama’s handling of the economy has slipped from just a few months ago, notably among fellow Democrats.

The survey found that 86 percent of adults see the economy as “poor,” up from 80 percent in June. About half — 49 percent — said it worsened just in the past month. Only 27 percent responded that way in the June survey.

That can’t be good news for a president revving up his re-election campaign.

There’s a good chance that GDP–now growing at a miserably slow rate–may go into negative territories shortly, forcing the NBER to date the start of yet another recession when the recovery from this one has not really taken hold.  There’s indications in the market that another crash could be on the horizon.  After all, businesses can only wring so much profit out of restructuring debt to take advantage of cheap interest rates and cutting costs primarily by dumping workers.  Here’s some really frightening news on reinsurance on banks which is also causing weird stuff in the CDS market.  That’s the same damned market that messed up the economies of Europe and US the last time around which really needs some restructuring, standardization, and reform that has not been done despite Dodd-Frank and similar efforts on the other side of the pond. Bankers have fought new regulation and we’re likely to see the same problems revisit us in a different sector of the same market for the same kinds of vehicles.

Insurance on the debt of several major European banks has now hit historic levels, higher even than those recorded during financial crisis caused by the US financial group’s implosion nearly three years ago.

Credit default swaps on the bonds of Royal Bank of Scotland, BNP Paribas, Deutsche Bank and Intesa Sanpaolo, among others, flashed warning signals on Wednesday. Credit default swaps (CDS) on RBS were trading at 343.54 basis points, meaning the annual cost to insure £10m of the state-backed lender’s bonds against default is now £343,540.

The cost of insuring RBS bonds is now higher than before the taxpayer was forced to step in and rescue the bank in October 2008, and shows the recent dramatic downturn in sentiment among credit investors towards banks.

“The problem is a shortage of liquidity – that is what is causing the problems with the banks. It feels exactly as it felt in 2008,” said one senior London-based bank executive.

“I think we are heading for a market shock in September or October that will match anything we have ever seen before,” said a senior credit banker at a major European bank.

While Obama is on vacation, White House gnomes are pasting together two programs for the poll-beleaguered President to announce when Congress gets back into session. The first is a “jobs” package.  The second is a plan for massive mortgage refinancing.  This is something that should’ve been on the front burner years ago so now I’m actually wondering if it’s going to work in time to stymy the right wing nut jobs coming up through the Republican primary process or it’s actually going to be serious rather than some lame ass attempt at some neoReaganesque policy that will move farther right when Republicans start saying no to clearly Republican policy.

Here’s the “Contours of Obama jobs package” via Reuters.

The president is widely expected to repeat his calls for an extension of a payroll tax cut, push for patent reform and bilateral free trade deals, and suggest an infrastructure bank to upgrade the country’s roads, airports and other facilities.

Retrofitting schools with energy efficient technology would allow the government to directly hire for labor-intensive work and also give a boost to the clean energy sector that Obama has said could be an important U.S. economic motor.

Other measures being considered, according to economists who have advised the White House, include tax credits for firms hiring more workers, funds for local governments to hire teachers, and retraining help for the long-term unemployed. Steps to boost the ailing housing market are also under review.

“What’s going to be included in this plan are some reasonable ideas that could have a tangible impact on improving our economy and creating jobs … the kinds of things that Republicans should be able to support,” Earnest said. “These are bipartisan ideas that the president is going to offer up.”

Republicans have made it perfectly clear that their only priority is to make Obama a one term president.  So, in yet another attempt at trying to look above the fray instead of fighting for what is right, we’re going to see another lukewarm policy that won’t have any immediate effect and will undoubtedly be pushed further to the right and further into the ineffective zone.  Plus, it will probably just be offset by other spending cuts in key areas which are likely to have stronger recessionary multiplier effects attached than any positive multiplier effect of the new legislation.  I still can’t figure out what the obsession is with tax cuts for new employees.  The big cost of new employees is health insurance for one and you can avoid that cost by going any where in the developed and developing world BUT the US.  Plus, no  business is going to hire any one when the have no customers.  I feel like a broke record on the number of repeats on that one.  Having spent my life doing strategic planning and budgeting for corporations and having one of my PhD field areas in corporate finance, I can tell you that the US looks like one of those offshore tax havens right now for most major corporations.  Also, more ‘free trade’ deals are likely to have just the opposite effect on unemployment anyway as prices tend to equilibriate in the countries involved and we’re the cheap capital market, not the cheap labor market part of that equation.  (Hence, in our country, incomes to capital go up and incomes to labor go down as the market goes towards price parity for our country.)

So, the second program is no a way for the US to back mortgage refinancing. This is also something that should’ve been done years ago.

One proposal would allow millions of homeowners with government-backed mortgages to refinance them at today’s lower interest rates, about 4 percent, according to two people briefed on the administration’s discussions who asked not to be identified because they were not allowed to talk about the information.

A wave of refinancing could be a strong stimulus to the economy, because it would lower consumers’ mortgage bills right away and allow them to spend elsewhere. But such a sweeping change could face opposition from the regulator who oversees Fannie Mae and Freddie Mac, and from investors in government-backed mortgage bonds.

Administration officials said on Wednesday that they were weighing a range of proposals, including changes to its previous refinancing programs to increase the number of homeowners taking part. They are also working on a home rental program that would try to shore up housing prices by preventing hundreds of thousands of foreclosed homes from flooding the market. That program is further along — the administration requested ideas for execution from the private sector earlier this month.

But refinancing could have far greater breadth, saving homeowners, by one estimate, $85 billion a year. Despite record low interest rates, many homeowners have been unable to refinance their loans either because they owe more than their houses are now worth or because their credit is tarnished.

I’ve already looked into refinancing my FHA/VA loan from 7% to 4%.  I have good credit and my loan balance is about one half of what my house is worth–even with the recent decrease in home prices–because I’ve owned it for 11 years.  I didn’t follow through because the points charged by Wells Fargo–who processes my mortgage at the moment–were ridiculous.  They’d have to pick up the fees or points to intrigue me, frankly. The people with the worst problems are the ones that are now strategically defaulting because they are underwater.  Interesting enough, I’m set to discuss just that topic this fall in the Denver FMA meetings using this Philadelphia FED working paper.  Their findings suggest that people have the ability to pay these mortgages but they are defaulting anyway because they are underwater. The weird thing is they are defaulting on first mortgages while keeping their second liens current.  This means they are ‘strategically’ defaulting to get rid of the house because it’s a stupid investment for them.  Any plan that doesn’t deal directly with underwater mortgage holders specifically will not work.  Banks really don’t have any incentive to work with them now because they get more fee income from processing defaults than they do from renegotiating the mortgage.  The incentives on both sides of the market are totally warped at this point in time.  Again, quoting from the NYT article, this isn’t in the plan.

A broader criticism of a refinancing expansion is that it would not do enough to address the two main drivers of foreclosures: homes worth less than their mortgages, and a sudden loss of income, like unemployment. American homeowners currently owe some $700 billion more than their homes are worth.

I don’t see how the issues in the housing market are going to be solved until you solve this problem.  Dumping houses on the market is going to continually depress prices and cause this problem to regenerate.

So, this gets back to sort’ve my main point about both these big ideas.  First, they are a little too little and way too late.  The inside and outside lags on these kinds of fiscal policy measures are long and getting them through congress and into fruition is likely to lag-filled. We’re also likely to get a lecture and ransom demand from the austerity demons.  So, is this a real effort or a symbolic effort?  Second, the policy prescriptions are anemic. Neither of them focus on the real problems or the known solutions. So, again, is this a real effort or symbolic effort?  Third, these aren’t very aggressive policies nor or they what you would call traditionally Democratic policies so who are they really aimed at? Again, it seems like a symbolic offering to voters. If you’re getting the impression that I’m not impressed at all with this, you’re right.  I suppose this is all to make the confidence fairy come home to roost.  It still seems to me that she’s on her honey moon with the high priest of voodoo economics. Imaginary beings are symbolic too.