Only Bad lawyers and the Certifiably Insane wind up in Congress
Posted: December 15, 2010 Filed under: We are so F'd | Tags: Federal Reserve Bank, Financial Crisis of 2007, Obama-McConnell tax breaks extention, Politicians are Crazy, Ron Paul and other Flat earthers, Spencer Bachus, START 61 Comments
I went to Memorandum today to see what was up with the votes on the DADT repeal, the Tax Giveaways to Billionaires Act, and the START treaty. It’s one of the first places I go in the day because it usually groups the day’s relevant economic and political topics and it covers blog reactions from all sides of the political spectrum. I just wanted to know when the votes would be. What I saw was a bunch of headlines that lead to the thought you see above. I don’t even know where to start with this conglomeration of links, but they all seem connected to my hypothesis above.
It’s not that all of us outside the Beltway don’t recognize that there’s very few real people with functional brains in Congress. The proof for that is right there in the middle of the Memorandum page too.
From Gallup Polls:
Congress’ Job Approval Rating Worst in Gallup History :
Thirteen percent approve of the way Congress is handling its job
That headline is coupled with this one from WAPO: Washington Post-ABC poll: Public is not yet sold on GOP
From The Hill: DeMint will force readings of START Treaty and omnibus bill
For some reason, the 2000 pages of the Tax Bonuses for Billionaires plan isn’t germane to discussions of deficits and national security but the START treaty and the ominibus spending bill are fodder for ideological temper tantrums.
From TPM: Kyl: Reid Disrespecting Christians By Suggesting Post-Christmas Senate Votes
(Psst Kyl: the Reason for the Season is Mithros’ the Bull God’s birthday. Read your Roman History. The reason for Sunday services is The Sun God. Read your Roman History. You were had a long time ago by Constantine and the Nicene Council. Read the historical records of the Council set up by Constantine to establish a Roman religion and get off your friggin, butt and do your job!)
Oh, speaking of mythology, try THIS one on for size from the NYTimes: G.O.P. Panelists Dissent on Cause of Crisis. I’m going to spend some time on this because it’s just the best example of what is wrong with POLITICIANS. Congress was completely duplicitous in the crisis and yet, all the want to do is blame Federal Regulators.
Democrats have emphasized factors like fraudulent practices by mortgage lenders and reckless risk-taking by Wall Street banks and other financial institutions, while Republicans have focused on poor oversight of Fannie Mae and Freddie Mac, the entities that supported the secondary market for mortgages, and decades of government efforts to encourage homeownership.
“While the housing bubble, the financial crisis, and the recession are surely interrelated events, we do not believe that the housing bubble was a sufficient condition for the financial crisis,” the document states. “The unprecedented number of subprime and other weak mortgages in this bubble set it and its effect apart from others in the past.”
Unbelievable. Yes, that happened. Yes, it was a problem. But what drove the demand for subprime and weak mortgages was the demand for those wacky unregulated credit derivatives. It was all part of the same pattern of negligence and wishful thinking. You can’t unlink the systemic problems and the symptoms. Fannie and Freddie got into those things and drowned, but it wasn’t exactly their idea to begin with. Congress should’ve stopped them from going there. But the driving factor was still the demand for credit derivatives. Every institution was churning those things out in this country and in others. The delusion is worse than I thought.
From Yves at Naked Capitalism:
This whole line of thinking is garbage, the financial policy equivalent of arguing that the sun revolves around the earth. Yes, the US and other countries provide overly generous subsidies to housing, and curtailing them over time would not be a bad idea. But that’s been our policy for decades. Calling that a major, let alone primary, cause of the crisis, is simply a highly coded “blame the poor” strategy, In reality, both the runup to the crisis and its aftermath were on of the greatest wealth transfers from the citizenry at large to a comparatively small group of rentiers in the history of man. (If you want to read the long form debunking of this thesis, go straight to Barry Ritholtz, a Republican who has shredded this brand of class warfare, or as he calls it, “one giant clusterfuck of imbecility,” repeatedly on his blog.)
The intent is pretty transparent: to discredit an effort at fact finding into the roots of the crisis, what was hoped to be a Pecora Commission, by making it appear partisan and launching an alternative narrative to muddy the waters. And the reason is clear. Even though FCIC is certain not to have the same effect that the Pecora Commission did, of discrediting major financial services industry figures and exposing various forms of chicanery, it appears that even lesser forms of criticism of the banksters must be sandbagged (the bizarre part of this drama is that at least some Democrats and very selectively, Republicans in office are willing to call out the predatory, extractive behavior of the large banks. But no one has the guts to buck an industry that is a major paymaster in a very serious way).
Experts agree that while Fannie and Freddie and the federal government’s push to encourage homeownership played a significant role in causing the crisis, actions by Wall Street magnified the fallout and caused a crisis that led to the Great Recession. Economists from the Federal Reserve, as well as bank regulators first appointed by Republicans, agree that the Community Reinvestment Act played virtually no role in causing the financial crisis.
But the Republicans’ report will largely focus on the role played by the federal government. It will note that a crisis was averted after the government bailed out Bear Stearns and facilitated its absorption by JPMorgan Chase, according to people familiar with the matter. The crisis roared back after the government allowed Lehman Brothers to fail, scaring nervous investors. A bigger and more protracted downturn was avoided when policy makers essentially bailed out the entire financial system.
Exactly. It’s never EVER been the Community Reinvestment Act and to even insert it into the report is odious and false. I never got how the CRA got connected to the Fannie/Freddie mess from the outset other than through political memes. I remember getting blog wacked by some from the left because I said Fannie and Freddie were part of the problem. I never ONCE mentioned the CRA; only that Frannie and Freddie did what all the financial instituions did except on a much larger scale. They packaged and sold poorly underwritten mortgages that were eventually going to make some one homeless sooner or later. Fannie and Freddie’s roll was complicit and huge only because of their size and importance in the mortgage market. They’d have never dreamed of doing what they did if it wasn’t for the fact they could package and sell the things–just like Countrywide and a bunch of other now defunct private entities–to stupid investors who were mislead by high ratings and the belief that due diligence was done on mortgage underwriting. The deal is that Congress could’ve stopped all of that–especially Fannie and Freddie–but they did nothing. They could’ve prevented the underwriting of many of those predator loans.
Couple that with this travesty via the Birmingham News and AL.com.
Bachus, in an interview Wednesday night, said he brings a “main street” perspective to the committee, as opposed to Wall Street.
“In Washington, the view is that the banks are to be regulated, and my view is that Washington and the regulators are there to serve the banks,” he said.
…
In his quiet campaign for the chairmanship, Bachus promoted an agenda to end taxpayer subsidies for mortgage giants Fannie Mae and Freddie Mac, repeal those parts of the Wall Street reforms that he thinks still leave the door open for taxpayer bailouts of financial institutions or their creditors, and increase oversight of President Barack Obama’s administration.
Then, we have Congressman Out-of-touch-with-reality Ron Paul who will be in charge of the subcommittee in Congress that deals with the FED. This is another example of putting some one in charge of oversight that want’s to just plain abolish the reality. He’ll be so stuck in ideologue land that oversight will just go by the way side. It’s like putting a Flat Earther in charge of NASA.
In a move that may seem to some like putting the fox in charge of the hen house, Rep. Ron Paul (R-Texas) has been named to head the House subcommittee that oversees the Federal Reserve.
Paul, 75, is a longtime critic of the central bank and, as Bloomberg pointed out, has even written a book called “End the Fed.” He will lead the domestic monetary policy subcommittee of the House Financial Services panel.
In announcing Paul’s appointment Thursday, chairman-elect Spencer Bachus (R-Ala.) said the Texan would add to the team that “crafted the first comprehensive financial reform bill to put an end to the bailouts, wind down the taxpayer funding of Fannie Mae and Freddie Mac, and enforce a strong audit of the Federal Reserve.”
Paul told Bloomberg last week he plans to call for hearings on U.S. monetary policy and will continue to press for a full accounting of the Fed’s functions. In the past, Paul has introduced legislation to abolish the central bank.
There are a lot of people realizing that Congress is not acting in the interest of the American people. The American Interest journal has a series of articles–including an important one on Income Inequality by Tyler Cowen–on
inequality and democracy. The front page of the Magazine–featured and linked to on the right–asks the most relevant question I can think of today. “Are Plutocrats Drowning our Republic?” A subsidiary question could well be “Why is every one in Congress intent on helping them do it?”
Congress did not get the message from this election. Here’s a clue from another link at that AI site. They just seem intent and recreating the same scenarios and the same problems over and over and over again.
Many Americans are still furious that their government helped the rich and politically connected few while leaving the rest hung out to dry. The government bailed out Wall Street financiers who live in the top tenth of the top hundredth of the income distribution. Meanwhile, almost one quarter of families with mortgages remains stuck with negative equity in their homes.
Let’s return to that bit on the Republicans on the crisis panel. I’ll borrow some analysis from Paul Krugman in his blog thread: ‘Invincible Ignorance’.
So Republican members of the Financial Crisis Inquiry Commission are going to issue their own report, placing primary blame on the government — because it’s always the government’s fault.
And according to reporting at the Huffington Post,
all four Republicans voted in favor of banning the phrases “Wall Street” and “shadow banking” and the words “interconnection” and “deregulation” from the panel’s final report, according to a person familiar with the matter and confirmed by Brooksley E. Born, one of the six commissioners who voted against the proposal.
Yep. It was all Fannie and Freddie, which somehow managed to cause housing bubbles in Ireland, Iceland, Latvia, and Spain as well as the United States; and the repo market had nothing to do with it.
And bear in mind that this wasn’t one Republican; it was all of them.
We consistently get people in congress that appear to live in a reality of their own making. They ignore science. They ignore history. They ignore economics. They ignore nearly everything to push partisan power, curry favor with the donor and the bonus class, and spin tails to deluded followers that have no basis in fact, evidence, or theory. They even run campaigns based on denying scientific theories that are well prove–like evolution–and promoting failed hypothesis–like all of Reaganomics–even when the majority of people who would know try to give them the facts.
What is it about our political process that seems to put policy in the hands of complete whack jobs and unemployable lawyers? My one dash at the Nebraska Unicameral convinced me that only pathological narcissists and liars and ideologues capable of denying reality can get through the process. Those folks are surrounded and supported by equally pathological narcissists, liars, and ideologues and they’re all bought up by a plutocracy that pays to play.
We are so F’d. I am so frightened for and disheartened about the future of this country. How is it that Congress can get such low approval numbers but go right back to ruining the country in the same manner post-elections? Both parties have their on unique style that achieves the same end. What can we do to stop this? It has to be the gerrymandered districts and the money. But, how can we change the laws when the foxes are in charge of all the hen houses?
UPDATE: Senate approves tax cut deal; House Dems weigh amending estate tax
The Senate on Wednesday approved a sweeping tax package negotiated by the White House and congressional Republicans, and House leaders – who were looking to amend the measure in a way that would satisfy liberals without unraveling the deal altogether – said a House vote could follow as soon as Thursday.
The Senate passed the package by a vote of 81 to 19.
Before senators began debating the $858 billion package in late morning, President Obama urged lawmakers in both houses to pass it “as swiftly as possible.” He called the plan “an essential ingredient in spurring economic growth over the short run.”
Speaking before a meeting with business leaders, Obama said: “I am absolutely convinced that this tax cut plan, while not perfect, will help grow our economy and create jobs in the private sector.” He acknowledged that lawmakers of both parties object to different aspects of the plan but said, “That’s the nature of compromise.” He added that “we can’t afford to let it fall victim to either delay or defeat.”
In other news: Obama announces his Faith Based VooDoo economics initiative based on advice from the ghost of Ronald Reagan … We are still so F’d.
that is all.
Liveblog II: Okay, so it’s not really a filibuster…
Posted: December 10, 2010 Filed under: Populism, the blogosphere | Tags: Bernie Sanders, Filibuster, live blog, Obama-McConnell tax breaks extention 63 CommentsBernie Sanders isn’t really preventing the Obama-McConnell tax cuts from being voted on. That is supposed to happen on Monday. But who cares? Just killjoys and whiners. The man is still standing after 7+ hours on the Senate floor. His voice sounded a little hoarse for awhile, but right now he’s going strong again.
Why can’t we get Sanders to run for President? He’s a lot more charming than Ralph Nader and he actually cares about the middle class and the poor, unlike the arrogant, cynical, corrupt egomaniac who occupies the White House right now. The fact that only two other Democratic Senators have joined Sanders in his “filibuster” demonstrates to the American people how disgustingly corrupt and immoral our political class is today.
Sanders is talking about real issues that don’t get covered by our corporate media. He has discussed the growth of income equality in America, the lack of attention that has been paid to our infrastructure, the causes of the recent economic emergency, and why Obama’s tax cut bill is wrong and will harm ordinary Americans.
Sanders is talking about usury and how credit card companies are robbing people blind. He says they are “no different that the gangsters who used to beat up people on street corners” for not paying off the loan sharks.
I wonder what Obama and his pals in the White House are thinking about all of this?
Here are some reactions to the “filibuster” that I have found around the blogosphere.
At FDL, David Dayen wrote that
Sanders is calling attention to the massive inequality in America, which will only be stratified further by a tax cut bill that raises taxes from current law for 25 million low-income workers and gives millionaires a tax cut of about $139,000 a person. He’s explaining America’s insane trade policies, which have cut out the American manufacturing base and hollowed out the middle class. He’s taking on corporate CEO pay, and the two-income trap, and basically making the progressive critique of an economy bought and paid for by the very rich….
…you’re seeing issues discussed on the Senate floor that almost never come up in any other context. Political theater is sadly one of the few ways to cut through the clutter in America, and that’s what Sanders is up to, I suspect.
At his Guardian blog, Michael Tomasky wrote:
I can’t count the number of times I’ve heard liberals say, “Reid should just make them filibuster! Make them hold the floor for 24 straight hours, as Strom Thurmond once did. They will look ridiculous to the American people, especially as said people figure out they’re trying to block a relatively inexpensive unemployment benefits extension, and the opposition will crash down like a house of cards.”
In a session with a record number of filibusters threatened and cloture motions filed, it never happened. Almost, once or twice; but it didn’t. So, it’s kind of sad that the only actual filibuster of the whole dysfunctional session is the one happening right now, but it doesn’t involve Republicans at all.
Tomasky likes the tax cut deal, but still…
I admire Sanders, and although I think the deal is pretty good, under the circumstances, and should pass, I do take my hat off to the guy. It’s just nice to see someone taking a stand for the view that upper-income households don’t need a tax cut, and the view that we’re going to have an estate tax that will impact – get this – just 3,500 families in the entire country (see that chart, and look at “taxable returns” for 2011 under the Lincoln-Kyl proposal).
Sanders is not expected to pull a Thurmond. The Senate put together a package last night and this morning that added a few meagre sweeteners for the Democrats (extending subsidies for alternative energy and ethanol that were slated to expire). It will almost surely pass, with most Republicans and enough Democrats. Then, the action moves to the House, where things are a bit iffier but, most suspect, only a bit.
There goes another cynical killjoy. Sanders is doing something truly admirable and he deserves support, if not from other politicians, from us ordinary Americans. Just seeing him do this gives me hope–and not the kind of fake “hope” that Obama sold to the progs. It’s the kind of hope that makes you want to get up and fight for what is right.
At The Nation, John Nichols writes:
After Sanders took the rostrum at 10:24 a.m. Friday, the Vermont Independent posted a message on his his twitter account that read: “You can call what I am doing today whatever you want, you [can] call it a filibuster, you can call it a very long speech…”
Six hours later, Sanders was still speaking. His bold gesture grabbed the attention of the nation, as Senate video servers were overwhelmed when more than 12,000 people tried to watch the speech online.
For all the excitement, Sanders was not actually blocking a vote on the tax deal. The Senate will not take the issue up until Monday, at the earliest.
Sanders was, however, sending a powerful signal about the fight to come.
Nichols also calls attention to
…a letter circulated by Oregon Senator Jeff Merkley and Louisiana Senator Mary Landrieu, the senators said: “We have grave misgivings about the recent tax agreement. We hope that the Senate can improve on it. We look forward to working with you to ensure a vote on our amendment to strengthen Social Security in lieu of bonus tax cuts for people who are doing quite well.”
The following Senators have signed the letter:
Merkley, Landrieu. Alaska’s Mark Begich, Hawaii’s Daniel Akaka, Ohio’s Sherrod Brown, Minnesota’s Al Franken, Colorado’s Mark Udall and California’s Barbara Boxer
Nichols suggests that several other Senators might support the sentiments in the letter. The text of the letter is included at the end of the article.
Politifact investigated Sanders’ claims about income inequality and learned that he has been telling the truth. Are you listening corporate media?
Right now, Bernie Sanders is reading from heartrending letters from his constituents. Someone needs to force President Obama to sit down in front of his TV and watch this. He might learn what a real Democrat should look and sound like. Yes, I know Bernie is an independent, but back in the ’40s, ’50s, and ’60s, Democrats he would have fit in in the Democratic Party.
Today, corrupt corporate tools like Barack Obama have the gall to call themselves Democrats. It’s a crying shame what has happened to my former party and my country. Thank you Bernie Sanders for what you are doing today.
Watch Bernie Sanders long, long speech at C-Span 2.






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