Tuesday Reads

fifth anniversary of financial crisis

Good Morning!!

It’s October first in the good ol’ US of A, and one Senator, one ex-Senator, and thirty Republican House members, with the help of the weakest Speaker of the House in history, John Boehner, have managed to shut down the government. And yet, despite the concentrated efforts of these terrorist blackmailers, the Affordable Care Act, AKA Obamacare, continues onward, with health care exchanges opening today. Wall Street is nervous, but still not really accepting that Republicans are really trying to crash the economy.

Despite the claims of John Boehner that he and the Tea Party Republicans are just “listening to the American people,” the American people don’t support what they are doing. Bloomberg: Americans by 72% Oppose Shutdown Tied to Health Care Cuts.

In a rejection of congressional Republicans’ strategy, Americans overwhelmingly oppose undermining President Barack Obama’s health-care law by shutting down the federal government or resisting an increase in the nation’s debt limit, according to a poll released today.

By 72 percent to 22 percent, Americans oppose Congress “shutting down major activities of the federal government” as a way to stop the Affordable Care Act from going into effect, the national survey from Quinnipiac University found.

By 64 percent to 27 percent, voters don’t want Congress to block an increase in the nation’s $16.7 trillion federal borrowing limit as a way to thwart implementation of the health-care law, which Obama signed into law in 2010 with a goal of insuring millions of Americans, known as “Obamacare.”

A majority of the public, 58 percent, is opposed to cutting off funding for the insurance program that begins enrollment today. Thirty-four percent support defunding it.

That’s pretty much it for national politics news today. As an American, I feel really embarrassed that a small number of wingnut terrorists have been permitted to take over the government of a nation of 300 million people. What else can you call it but a coup? And of course it won’t end here. We are approaching the debt limit, and a couple of weeks from now the GOP will most likely hold us all hostage again. At Policymic, Drew Mendelson writes:

I spent some time on the topic of the debt ceiling last year. I won’t repeat that except to note that we are approaching the limit of $16.7 trillion set last year on how much debt the federal government can maintain. Since government sending continues to outpace its income, we will need to borrow to pay some of our debts. Unless the debt ceiling is raised, once we hit it we will no longer be able to borrow and will likely default on some of that debt. The resulting catastrophe of frozen credit, climbing interest rates, and a stalling economy could bring a replay of the Great Recession of 2007-2009.

Conservative icon Ronald Reagan once warned that “the full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar.”

I can’t imagine that even the hardest core in either party wants that. But the threat of it could give the Republicans (or maybe just its Tea Party faction) an opportunity for hostage-taking far more ominous than in the budget resolution battle. We went to the brink on the debt ceiling last year and ended up passing an increase but at the cost of maintaining most of the sequester cuts in the process.

This doesn’t have to happen. It’s time for President Obama to use the Constitutional option and raise the limit on his own. Back to Mendelson:

Does President Obama have to put up with this? Some say no. There is a range of opinion on whether or not the Section 4 of the Fourteenth Amendment gives the president the power to bypass Congress and raise the debt ceiling by executive order. House Minority Leader Nancy Pelosi (D-Calif.) said earlier this year: “Well, you ask the Republicans …we always passed the debt ceiling. When President Bush was president, as he was incurring these massive debts, and the Republicans weren’t saying ‘boo’ at the time.… In fact, if I were president, I’d use the Fourteenth Amendment, which says that the debt of the United States will always be paid.” [….]

Our cautious President obviously doesn’t want to do it. But experts say he has the power.

in a July 2011 New York Times op-ed piece, law professors Eric A. Posner and Adrian Vermeule argue that even without the Fourteenth Amendment the president would have the power to override the debt ceiling based on “the necessities of state, and on the president’s role as the ultimate guardian of the constitutional order, charged with taking care that the laws be faithfully executed.”

As Mendelson writes, we are going to find out pretty soon whether President Obama will use the power he has to stop Congress from holding the entire country hostage to the fantasies of a few extremists.

As of today, the President and Democrats in general are the winners in this ugly little drama, according to NBC News’s Michael O’Brien:

The shutdown of the federal government is poised to reshuffle U.S. politics, as Americans observe one of the starkest examples of political dysfunction since the last shutdown in the mid-90s.

That crisis reinvigorated President Bill Clinton and badly set back a then-resurgent Republican Party that had designs of retaking the White House in the 1996 elections. The GOP fell well short of expectations in that election, though some conservatives now argue that the party’s performance wasn’t as bad as it seemed at the time.

Nonetheless, after two-and-a-half years of standoffs and gridlock, the fact that a shutdown has finally come to pass — 17 days before Congress must also raise the debt ceiling, no less — could upend politics with unforeseen consequences for many of this fight’s key players.

Read O’Brien’s take on the winners and losers in this battle as of today at the link. Spoiler: Obama is up right now, but he could hurt himself if he doesn’t step up and deal with the childish tantrums of the Tea Party Republicans over the debt ceiling.

Now I want to move on from the ridiculous and embarrassing battles in Washington DC to a story about women making a difference.

From PBS News Hour: World Pulse’s “web” of women keeps growing.

In her early 20s, Jensine Larsen was working as a freelance journalist in Burma and the Amazon region of South America, and learned that many of the stories affecting women weren’t being reported in the media. She then realized that women shouldn’t have to depend on the media to tell their stories.

“If we want to solve water issues and health care, the only way we can solve them is by listening to women,” she told the PBS NewsHour recently over the phone.

Larsen, a Portland, Ore., native, visualized a place where women could report for themselves, and founded World Pulse magazine, which came out with its first edition in 2004.

As technologies and social media evolved, so did World Pulse, and it launched an online component in 2007 with the goals of bringing women together and giving them a voice and the ability to improve their communities and their lives.

“We’re not about professional journalists, we’re more about that emerging woman leader who’s just coming online and has a powerful contribution to make,” Larsen said.

It’s an inspiring story–please go read the whole thing.

Finally, a little science news:

Ohioans who were outside late last night got a surprise from the Universe, according to the Columbus Dispatch: Meteor over central Ohio lights up night, phone lines.

The bright flash of light at 11:33 p.m. prompted some people to call Columbus police to ask what it was while officers chatted about the event over their radios.

“The initial trajectory suggests it passed over Columbus, Ohio, moving slightly north of west,” Bill Cooke of NASA’s Meteoroid Environments Office told The Dispatch in an email. Cooke said there were some reports of sounds similar to sonic booms, which suggests some of the fireball’s fragments made it to fairly low altitudes.

NASA’s meteor camera in Ohio and Pennsylvania first detected it at 67 miles up, and it began breaking apart 41 miles above the earth. Cooke said it’s not yet certain, but it’s unlikely that the fireball produced meteorites on the ground given the “tremendous” speed at which it was moving.

“The fireball was so bright our meteor-detection software ‘went home to momma’ and thought it was seeing lightning,” Cooke wrote. “The fireball lit up the sky, so the detection software thought it was lightning and did not flag it as a meteor/fireball.”

According to the American Meteor Society’s website, Ohio was ground zero for the sighting. The society’s fireball coordinator, Robert Lunsford, said the fireball already had generated 900 reports to the society’s website, making it the third-most reported meteor event since the group began tracking them in 2005.

What was exciting was that this event happened at a time when lots of people were awake and looking up at the sky. I would just love to see a meteor! See a short video at the link.

Here’s another science story from The A Register: Egad! TUPPERWARE FOUND on ALIEN MOON: NASA shocker.

A NASA spacecraft sniffing the smoggy atmosphere of Titan has found traces of the chemical used to make plastic Tupperware boxes….

As if the place wasn’t nasty enough, space boffins now know that it is home to detectable quantities of propylene, which is a key ingredient in food containers as well as car bumpers.

NASA used Cassini’s Composite Infrared Spectrometer (CIRS) to scan the hazy atmosphere, measuring the heat radiation emitted as infrared light from the moon in a process that NASA described as being similar to “the way our hands feel the warmth of a fire”.

The first chemical the scientists discovered using the CIRS was propylene, which was identified in small quantities at various altitudes throughout the lower levels of the soupy hydrocarbon fog found in the moon’s noxious skies.

“This chemical is all around us in everyday life, strung together in long chains to form a plastic called polypropylene,” said Conor Nixon, a planetary scientist at NASA’s Goddard Space Flight Center in Greenbelt, Maryland, and lead author of a paper describing the findings.

“That plastic container at the grocery store with the recycling code 5 on the bottom – that’s polypropylene.”

Geographer Franck Lavigne of the Université Paris 1 Panthéon-Sorbonne and his research group believe they have solved an 800-year-old puzzle: Deadly 13th-Century Volcano Eruption: Mystery Solved?

One of history’s great disaster mysteries may be solved—the case of the largest volcanic eruption in the last 3,700 years. Nearly 800 years ago, the blast that was recorded, and then forgotten, may also have created a “Pompeii of the Far East,” researchers suggest, which might lie buried and waiting for discovery on an Indonesian island.

The source of an eruption that scattered ash from pole to pole has been pinpointed as Samalas volcano on Indonesia’s Lombok Island. The research team, led by geographer Franck Lavigne of the Université Paris 1 Panthéon-Sorbonne, has now dated the event to between May and October of 1257. The findings were published today in the Proceedings of the National Academy of Sciences.

“It’s been a long time that some people have been looking,” said Lavigne. After glaciologists turned up evidence for the blast three decades ago, volcano experts had looked for the origin of the eruption everywhere from New Zealand’s Okataina volcano to Mexico’s El Chichón.

The previously unattributed eruption was an estimated eight times as large as the famed Krakatau explosion (1883) and twice as large as Tambora in 1815, the researchers estimate. (Related: “Tambora: The Greatest Explosion in History.”) “Until now we thought that Tambora was the largest eruption for 3,700 years,” Lavigne said, but the study reveals that the 1257 event was even larger.

Those are my offerings for today. What stories are you following? Please share your links in the comment thread.


Monday Reads

library reading room NYPLGood Morning!

There’s more than just a bit of March madness in the air and you don’t have to be watching basketball to catch it.  It seems that the Republican Party’s Teabots have decided to boycott Fox News for being too liberal.  Yes, you read that right.  Fox is not fair and balanced towards their viewpoints so off with th eir heads!!!!

Among the demands the protesters have is that Fox News “be the right-wing CBS News: to break stories, to break information, and to do what news organizations have always done with such stories: break politicians,” that the network have at least one segment on Benghazi every night on two of its prime-time shows; that Fox similarly devote investigative resources to discovering the truth of Obama’s birth certificate; and that the network cease striving to be “fair and balanced.”

“We need Fox to turn right,” said Hjerlied. “We think this is a coverup and Fox is aiding and abetting it. This is the way Hitler started taking over Germany, by managing and manipulating the news media.”

The descriptions of the boycotters and their preferences for conspiracy sites is pretty obvious. Poor Fox and the Republican Party Establishment just cannot shove these loonies back into their boxes.

Agreement has been reached on what to do with Cyprus and its unstable banks.  The agreement will not be put to a vote of parliament.

Cyprus will close down one of its two biggest banks and restructure the second one as part of an international bailout, Cyprus and underwoodinternational lenders agreed on Tuesday.

Bank depositors of up to 100,000 euros will not suffer any losses but bigger depositors will contribute to recapitalizing the bank that is to be restructured – Bank of Cyprus.

Shareholders, bondholders and those who held deposits above 100,000 euros in Laiki bank, which will be closed down, will cover the cost of the resolution, euro zone ministers and the International Monetary Fund decided.

Depositors with more than 100,000 euros in the Bank of Cyprus will see their money above that threshold frozen until it is clear how much of it will be needed to recapitalize the bank so that it can reach a capital ratio of 9 percent.

Here’s some discussion of what the Cyprus fallout could be around the world by Marshall Auerback.  Moody’s says Cyprus is still at risk of default, euro zone exit should these steps resolve the current crisis.  So, what type of precedent does this set for such a risky move with no real guarantee of success?

Regardless of the ultimate form this bailout takes, it is increasingly hard to view Cyprus as a “one-off,” which has no implications for us here in the US. What Cyprus has demonstrated is that even with deposit insurance, your deposits are not in fact a risk-free guaranteed asset, but actually simply another branch in the creditor tree in relation to your bank if it fails. That was made abundantly clear by no less than the Bank for International Settlements (BIS), the central bankers’ bank back in the heart of the financial crisis. The BIS noted that bank failures had become increasingly expensive for governments and taxpayers and therefore recommended an “Open Bank Resolution,” which would ensure that, as far as possible , “any future losses are ultimately borne by the bank’s shareholders and creditors.” (See primer on the Open Market Resolution concept by the Reserve Bank of New Zealand.)

Why does this matter? Because, you, as a depositor are legally considered a “creditor” of your bank, not simply a customer who may have entrusted your entire life savings with the very same institution.

The science editor at BBC News wonders why there is such a fuss about extinction which leads to the question “would the world be a better place if we still had velociraptors? But, is natural extinction different than man-caused extinction?

We are certainly far better off without velociraptors slashing their way through our cities. Our streets are safer with no sabre-toothed tigers. And imagine trying to swat one of those monster prehistoric insects like a vulture-sized dragonfly.

The question of extinction most recently surfaced at the talks on the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) – the treaty meant to save endangered species from the devastating effects of trade.

The slaughter of rhino, the decimation of elephant, the forlorn last stand of the tiger – all had their profiles raised as the delegates in Bangkok negotiated their fate.

And anyone hearing the protests and the campaigns, and the shocking statistics about the losses, might be forgiven for thinking that extinction was some new kind of evil that was not invented until rapacious and uncaring mankind came along.

I should state right now that some of the most ghastly examples are indeed entirely the result of man’s activities, sometimes unwittingly, sometimes carelessly.

hepburn readingWe’re seeing slow, drawn out, death-by-lobbying of the hopes for better gun safety laws.  The NRA is pushing the meme that gun-free zones–like the Sandy Hook School–attract mass murderers.  Mark Follman takes on this myth.

Ever since the massacres in Aurora, Colo., and Newtown, Conn., this idea has been repeated like some surreal requiem: The reason that mass gun violence keeps happening is because the United States is full of places that ban guns.

Second Amendment activists have long floated this theme, and now lawmaker sacross the nation are using it, too. During a recent floor debate in the Colorado legislature, Republican state Rep. Carole Murray put it this way: “Most of the mass killings that we talk about have been affected in gun-free zones. So when you have a gun-free zone, it’s like saying, ‘Come and get me.'”

The argument claims to explain both the motive behind mass shootings and how they play out. The killers deliberately choose sites where firearms are forbidden, gun-rights advocates say, and because there are no weapons, no “good guy with a gun” will be on hand to stop the crime.

Sound bite sophistry

With its overtones of fear and heroism, the argument makes for slick sound bites. But here’s the problem: Both its underlying assumptions are contradicted by data. Not only is there zero evidence to support them, our examination at Mother Jones of America’s mass shootings indicates they are just plain wrong.

Among the 62 mass shootings over the past 30 years that we studied, not a single case includes evidence that the killer chose to target a place because it banned guns. To the contrary, in many of the cases there was clearly another motive for the choice of location. For example, 20 were workplace shootings, most of which involved perpetrators who felt wronged by employers and colleagues. Last September, when a troubled man working at a sign manufacturer in Minneapolis was told he would be let go, he pulled out a 9mm Glock and killed six people and injured another before putting a bullet in his own head. Similar tragedies unfolded at a beer distributor in Connecticut in 2010 and at a plastics factory in Kentucky in 2008.

Or consider the 12 school shootings we documented, in which all but one of the killers had personal ties to the school they struck.librarian reading

Or take the man who opened fire in suburban Milwaukee last August: Are we to believe that a white supremacist targeted the Sikh temple there not because it was filled with members of a religious minority he despised, but because it was a place that didn’t allow firearms?

Despite the momentum in Congress of the NRA, Mayor Mike Bloomberg is going to spend beaucoups bux trying to get a better outcome.

New York City Mayor Mike Bloomberg wants new gun control legislation so bad that he’s set to spend a staggering $12 million of his own money on ads targeting US senators in a dozen states.

As the New York Times reports, Bloomberg’s new wave of ads, which begin on Monday, support universal background checks for nearly all gun purchases, but do not mention a ban on assault weapons. The ads, run under the auspices of Mayors Against Illegal Guns, a group funded and co-chaired by Bloomberg, will target Sens. Kay Hagan (D-N.C.), Mary Landrieu (D-La.), Mark Pryor (D-Ark.), Dean Heller (R-Nev.), Rob Portman (R-Ohio), Patrick Toomey (R-Penn.), Saxby Chambliss (R-Ga.), Johnny Isakson (R-Ga.), Dan Coats (R-Ind.), and Jeff Flake (R-Ariz.).

Bloomberg’s $12 million ad buy further cements his position as the main political force challenging the clout of the National Rifle Association. For decades, the NRA has used its money and manpower to oust politicians who support any new regulation of guns in America. The threat of NRA attacks helped stifle any effort at new gun laws, including requiring background checks for most gun purchases and reinstating the ban on assault rifles, which expired in 2004. Now, by pumping money into Mayors Against Illegal Guns and Independence USA, his super-PAC, Bloomberg hopes to counter the might of the NRA, while giving cover to pro-gun-control legislators.

Today, SCOTUS hears arguments on California’s Prop 8 and will begin to hear arguments on the constitutionality of DOMA.

California Attorney General Kemala Harris gave an impassioned, pithy defense of marriage equality during an appearance on CNN’s State of the Union Sunday morning in anticipation of the Supreme Court’s hearing on whether California’s Proposition 8, which overturned the state’s marriage equality law, is itself constitutional.

Asked by CNN’s Candy Crowley to explain why she was refusing to defend the state’s proposition, Harris insisted that the measure undermined the fundamental rights of gay Americans, taking away their equal protections under the law:

I am absolutely against a ban on same-sex marriages because [bans] are simply unconstitutional. And it is one thing to read the polls, which we have discussed which show again that a majority of Americans are in favor of same sex marriage, but it is more important to read the Constitution. And the Constitution of the United States dictates, I believe, under every court precedent that we have discussed in terms of describing marriage as a fundamental right that the same-sex couples that are before the United states supreme court — Mrs. Windsor, Miss Perry — be allowed to have equal protection under the laws as any Americans when it comes to their ability to join themselves with their loving partners in marriage and raise their children. And 61% of Californians are in favor of same-sex marriage.

Harris is considered an up and comer to the national political scene.  You can follow the link above to see the interview.  We will be following the arguments closely today and will keep you updated as things happen.

So. that’s it for me this morning.  What’s on your reading and blogging list today?


Friday Reads

Good Morning!

I’m really glad it’s Friday and I’m wondering what the markets will be doing.  There’s more extremist nonsense coming out of the Congress in the debt ceiling and deficit debate. Let’s take a brief look at the headlines.

First, it appears that Pell Grants are under attack. 

House conservatives who have stalled legislation to raise the national debt limit are angry that it includes $17 billion in supplemental spending for Pell Grants, which some compare to welfare.

Legislation crafted by House Speaker John Boehner (R-Ohio) to raise the debt limit by $900 billion would directly appropriate $9 billion for Pell Grants in 2012 and another $8 billion in 2013.

There’s speculation that some of the teabots may have their districts cannibalized by an angry Speaker of the House in redistricting measures.

Jim Jordan’s open defiance of Speaker John Boehner’s efforts to solve the debt-ceiling crisis could cost the Urbana Republican his safe House seat in next year’s election.

Two Republican sources deeply involved in configuring new Ohio congressional districts confirmed to The Dispatch  today  that Jordan’s disloyalty to Boehner has put him in jeopardy of being zeroed out of a district.

“Jim Jordan’s boneheadedness has kind of informed everybody’s thinking,” said one of the sources, both of whom spoke only on condition of anonymity. “The easiest option for everybody has presented itself.”

Jordan’s rural 11-county district, which has a 60 percent Republican voter index, “is easy to cannibalize because it stretches so far,” the other source said.

Michele in Wonderland thinks the impasse on the debt ceiling is not an emergency.  Can some one please tell this woman to report to someplace where she can buy a clue or a brain or some sanity?

Republican presidential candidate Michele Bachmann again brushed off warnings from leaders in both parties that the country would face disastrous economic consequences if the government fails to raise the debt ceiling by next Tuesday.

“I do not believe for one moment that we will lose the full faith and credit of the United States,” Bachmann said Thursday during a question-and-answer session at the National Press Club in Washington.

Bachmann, a House member from Minnesota, has been a staunch opponent of the debt ceiling hike for months, saying the move poses no threat to the markets or to the American public and would only give President Barack Obama license to increase government spending.

Other insane Bachmann stories today including her defense of using Federal Loans for her own housing while lambasting the very agencies that helped her afford her house.  Evidently, it’s not welfare when she does it.

GOP presidential contender Michele Bachmann (R) has been in hot water in recent weeks for personally taking advantage of hundreds of thousands of dollars in government aid while denouncing the very programs she benefited from. Most recently, the Washington Post discovered that Bachmann and her husband signed for a $417,000 home loan backed by Fannie Mae or Freddie Mac just weeks before she called for the two mortgage giants to be entirely dismantled.

Bachmann has been a consistently fierce critic of mortgage lending programs and has advocated abolishing the government sponsored mortgage enterprises (GSEs) Fannie Mae and Freddie Mac. Yet she took out the maximum possible loan from those programs to finance her family’s move to a lavish 5,200-square-foot home on a golf course.

Bachmann also wants to declare her family business’ “pray away the gay” discredited therapy practice put off limits.

Rep. Michele Bachmann (R-Minn.) visited the National Press Club in Washington on Thursday for a speech and question-and-answer session. The GOP presidential contender’s remarks focused mostly on her opposition to raising the debt ceiling under any circumstances. She did field one question on an issue we’ve covered: reports that the Christian counseling clinic she co-owns with her husband tries to cure gay people of homosexuality. Bachmann has repeatedly dodged questions on the issue, and even gone so far as to cut off interviews with Iowa reporters who broach the subject; when I caught up with her outside the MoJo DC office recently, she was a no comment (literally, she didn’t say anything).

On Thursday, Bachmann was asked if she believes homosexuality is a lifestyle decision that can be cured. So, with her husband sitting to her left at the Press Club, how’d Bachmann respond? By dodging the issue entirely and declaring her spouse, her children, her foster children, and her business off limits:

The next interesting trial on TV should be that of Polygamist Cult Leader Warren Jeffs who is being tried for sex assault on a 12 year old girl.  Jeffs wants to act as his own lawyer.

Prosecutors said they have an audio tape of polygamist leader Warren Jeffs sexually assaulting a 12-year-old child, The Salt Lake Tribune reported on its websiteThursday.

The revelation came during opening statements on Jeffs’ trial on child sexual assault charges.

The prosecutor also said DNA evidence would prove that Jeffs fathered a child with a 15-year-old girl, the Tribune reported.

Earlier Thursday, Jeffs threw the trial into disarray when he fired his defense lawyers and demanded the right to represent himself, which the judge then granted.

“It’s not as easy as it looks on TV, Mr. Jeffs,” State District Judge Barbara Walther told him. “You’re on your own.”

Jeffs refused to answer when Walther asked him whether he wanted to make an opening statement, the Tribune said.

Jeffs, the leader of a breakaway Mormon sect, is charged with child sexual assault and aggravated child sexual assault in connection with his “spiritual marriages” to a 12-year-old girl and a 14-year-old girl at the Yearning for Zion Ranch in remote west Texas.

There is also DNA evidence.

Here’s a great article from Alternet on how Wall Street broke the economy.   It’s an interview with Gretchen Morgensen on her new book.  Here’s a great conversation on how predatory lenders fed bad loans into Fannie and Freddie.

TM: After the S&L crisis, we were going to fix Fannie and Freddie, but things only got worse. When you ask the fox how to clean the henhouse…

GM: You make a good point about who’s to blame. Blame falls on both sides of the aisle in Congress. It’s not an either-or, Democratic or Republican issue, not a liberal or conservative issue — there’s enough blame to go around. Fannie Mae and Freddie Mac were primary movers in the push for home ownership. And there’s nothing wrong with that, owning your own home is a deep-seated wish in the American psyche. The problem was in the execution. You don’t lure people in who are unsophisticated, who don’t understand what they’re doing. You certainly don’t offer them the kinds of poisonous loans that were targeted to minority borrowers; low-income borrowers; first-time home buyers.

TMTargeted by Fannie and Freddie or targeted by predatory mortgage lenders?

GM: This is where Fannie and Freddie step aside and the mortgage lenders step into the breach. Countrywide was Fannie Mae’s biggest provider of loans. A lot of the losses that taxpayers are footing at this moment came very late in the game, in 2005, 2006, mortgages that were really ugly and really poisonous. Fannie Mae led the way, pushing for home ownership, degrading underwriting standards, pushing for more relaxed lending standards. Then the predatory lenders take the ball and run with it because there’s so much money to be made.

TM: And because of Fannie Mae’s initiative, so little risk.

GM: So little risk. Fannie Mae was either guaranteeing the loans that Countrywide and other lenders were making or taking them into their own portfolios. The taxpayer was essentially taking on the risk. There is an unholy alliance between Fannie Mae, a government sponsored enterprise, and predatory lenders and Wall Street. Wall Street saw Fannie Mae creating pools of loans that they would sell to others to sell to investors. Wall Street took that ball and ran with it, issuing trillions of dollars in mortgage-backed securities bursting with predatory loans.

I’m glad to see her clarify the misunderstanding of the role of Fannie and Freddie in the mortgage meltdown.  It wasn’t their affordable housing role that created the bigger mess.  It was their lack of due diligence in investigating loans packaged by known predatory lenders and their managers who were dealing themselves quota bonuses.  Congress didn’t watch what they were doing either.  They just assumed they were following their mandate.

I’m happy to see that a Judge will allow a defamation suit against propagandameister Breitbart to proceed.  The suit was filed by Shirley Sherrod and dealt with the horrible edit job his site did to make her look like some kind of racist.  You may recall she used to work in the Department of Agriculture.

Last year, Breitbart published a video of Sherrod describing to an NAACP conference how she overcame her own racist attitudes. However, a video from that speech was deceptively edited to make it appear that she was describing how she used the power of the government against a white farmer.

She was fired from her post at the agriculture department within hours of the clip hitting Breitbart’s website, and for at least a day the world believed Sherrod was a racist who abused her power to harm a white farmer.

Once it became clear that was not the case, the government offered her the job back, but she declined. Even after a formal apology from the White House and an offer to talk to the president, Sherrod still refused.

Agriculture Secretary Tom Vilsack took it a step further and offered her a position dealing with civil rights and discrimination issues at the USDA, but Sherrod declined and vowed to sue Breitbart over his deceptive prank.

The suit also targets Breitbart colleague Larry O’Connor and one other unnamed defendant.

Lawyers for the defense argued that the suit was invalid because it was triggered by a matter of “pure opinion,” not statements of fact.

So, that should give you something to think on this morning.  What’s on your reading and blogging list today?  Please!  Share with us!