Thursday Reads: Greece, Golf, and the Stanley Cup

Posted: June 16, 2011 | Author: | Filed under: 2012 presidential campaign, Economy, Republican presidential politics, The Bonus Class, U.S. Economy, U.S. Politics, unemployment, Violence against women | Tags: , , , , , , , , , , , | 12 Comments

Good Morning!!

Thousands of demonstrators have taken to the streets in Greece to protest austerity measures being forced on them by the government, the European Union and the International Monetary Fund (IMF). Government leaders are so nervous that

Prime Minister George Papandreou of Greece said on Wednesday that he would reshuffle his cabinet and request a vote of confidence in Parliament after talks with the opposition about a unity government foundered.

Earlier in the day….Mr. Papandreou offered to step aside so that his Socialist party could form a coalition government with the center-right opposition, but only if the opposition would support a new bailout plan for the debt-ridden country.

Mr. Papandreou’s support has been plummeting, even within his party, and the Socialists appear to be lagging behind the center-right opposition for the first time since the current government was elected in 2009. With a five-seat majority in Parliament, Mr. Papandreou has been struggling to get his government fully behind the measures and to contain growing rifts within his party.

Antonis Samaras, the leader of the center-right New Democracy party, has opposed spending cuts. He has called instead for tax breaks and a renegotiation of the terms of Greece’s agreement with its foreign creditors.

The markets reacted negatively to the situation in Greece.

Greece’s financial and political crisis, compounded by new fears about the pace of the United States economic recovery, sent financial markets reeling on Wednesday….

Anxious investors feared the situation could spin out of control, igniting a series of crises in other heavily indebted euro zone countries, like Portugal, Ireland and Spain. That, in turn, could threaten Europe’s banks and even reach into the United States financial system.

“We are pretty much giving back everything we got yesterday and more,” said Lawrence R. Creatura, a portfolio manager at Federated Investors, noting the rise in the main American indexes of more than 1 percent Tuesday. “Today the market just can’t escape the undertow of deteriorating economic data and political events.”

Awwww…poor little rich men…just let me break out my tiny violin.

In just a few days, President Obama will be playing golf and schmoozing with John Boehner, supposedly to try to come to a “compromise” on the raising the debt ceiling. But according to The New York Times, voters don’t relish seeing privileged politicians playing and watching golf with the economy being so bad for the majority of Americans.

…with two wars, a tight economy and a high national unemployment rate, the prevailing belief is that constituents do not want to see their representatives having fun at the golf course.

“Right now, some constituents think that members of Congress playing golf is a big deal and they don’t like it,” Tate Sr., who lobbies for the PGA Tour, said. “There is so much less talk about politicians going fishing or hunting, because that supposedly makes those members of Congress seem more normal. How ambushing and slaughtering another living creature makes you more normal, I have no idea. But it’s all about perception.”

Do Obama and Boehner care? Apparently not.

Here’s some good news for a change. Yesterday a bankruptcy judge in California followed the example of Massachusetts and declared the Defense of Marriage Act unconstitutional.

The decision issued by U.S. Bankruptcy Judge Thomas Donovan was prompted by a joint bankruptcy filing by a Los Angeles gay couple legally married in 2008. The U.S. trustee assigned to vet the filing by Gene Balas and Carlos Morales had asked Donovan to dismiss the Chapter 13 petition because the 15-year-old law, known as DOMA, restricts federal benefits like joint filings to marriages between a man and a woman. Donovan ruled that the law violated the Constitution’s equal protection guarantee.

Legal analysts said the ruling could have broad implications for gay spouses seeking equal treatment from federal agencies because it adds weight to two other federal court rulings in Massachusetts last year making their way through the appeals process.

The rulings last July by U.S. District Judge Joseph Tauro dealt only with the law as it affects Massachusetts residents, and Monday’s ruling by the Los Angeles bankruptcy court was likewise specific to the local case. But the rulings are seen as bellwethers for the possible extension of federal benefits to gay spouses in states where such marriages are legal, including the estimated 18,000 gay couples who wed in California in 2008.

Potential presidential candidate Rick Perry considers himself a “prophet.”

In his first national TV interview since presidential rumors surfaced, Perry answered Fox News’ Neil Cavuto question about why he’s so unpopular in his home state by suggesting he’s a “prophet”:

CAVUTO: You have kind of like the Chris Christie phenomenon: very popular outside your state, still popular but not nearly as popular within your state. There are even Tea Party groups within your state who like you but don’t love you. […] What do you say?

PERRY: I say that a prophet is generally not loved in their hometown. That’s both Biblical and practical.

You can watch the video at Think Progress.

An interesting trial will begin on Monday in New Hampshire. A woman who was raped by a member of her church and impregnated when she was only 15 years old may finally get a chance for justice.

Jury selection starts Monday at Merrimack Superior Court in New Hampshire in the case against Ernest Willis, who prosecutors charge raped Tina Anderson twice in her home in 1997, leaving her pregnant, the New Hampshire Union Leader reported.

The then-teenager was then compelled by leaders of the Trinity Baptist Church to apologize for becoming pregnant with a married man’s child, the Concord Monitor reported.

Willis, now 52, has admitted to the sex, but claims it was consensual.

Anderson, now 29, who asked media outlets to publicly identify her to draw attention to the case, told police the church’s pastor, Charles Phelps, spirited her away to another church member in Colorado in an effort to muddle a police investigation back in 1997.

Finally, a little provincialism once again…The Boston Bruins are the Stanley Cup Champions!!!!

Paul Ryan’s Selective Randianism

Posted: April 23, 2011 | Author: | Filed under: abortion rights, poverty, Psychopaths in charge, religion, Reproductive Rights, The Bonus Class, U.S. Economy, U.S. Politics, voodoo economics, Voter Ignorance | Tags: , , , , , , , , , , , , , | 27 Comments

While browsing the links on Memeorandum earlier this afternoon, I came across this post at Down With Tyranny: The Inspiration For Paul Ryan’s Profoundly And Explicitly Anti-Christian Budget. As Lambert would say, it is a post filled to the brim with “linky goodness.” I read all the linked articles and I refer to a few of them in this post.

DWT discusses Ryan’s self-professed admiration for the “philosophy” of Ayn Rand.

What is the great cause for which Ryan wants to devote his political life? Unkind critics point to the unprecedented– at least in Wisconsin politics– gushers of money Ryan has solicited from the Wall Street sector and detect a correlation between the bribes he takes and the policies he espouses. And since there is nothing that holds his voting record– huge, unjustifiable bailouts for Wall Street banks coupled with the dismantling of Medicare and unconscionable tax breaks for the richest Americans coupled with privatization of Social Security– other than obeisance to a garden variety Big Business agenda, this interpretation has become widespread. What people may be missing, however, is a parallel influence on Ryan– one not unrelated, but not identical either: his devotion to the adolescent philosophy of Ayn Rand: “the virtue of selfishness,” a more direct– if somewhat off-putting to non-believers– description of a philosophy known as “Objectivism.”

DWT points out that Rand’s teachings are explicitly anti-Christian–Rand was an atheist who thought altruism was evil and poor and working people were losers and “parasites.” Newsweek’s Jonathan Chait writes:

Ayn Rand, of course, was a kind of politicized L. Ron Hubbard—a novelist-philosopher who inspired a cult of acolytes who deem her the greatest human being who ever lived. The enduring heart of Rand’s totalistic philosophy was Marxism flipped upside down. Rand viewed the capitalists, not the workers, as the producers of all wealth, and the workers, not the capitalists, as useless parasites.

John Galt, the protagonist of her iconic novel Atlas Shrugged, expressed Rand’s inverted Marxism: “The man at the top of the intellectual pyramid contributes the most to all those below him, but gets nothing except his material payment, receiving no intellectual bonus from others to add to the value of his time. The man at the bottom who, left to himself, would starve in his hopeless ineptitude, contributes nothing to those above him, but receives the bonus of all of their brains.”

Chait calls Ryan an “acolyte” of Ayn Rand, and explains at length that the deficit and the debt aren’t what’s bugging the new House superstar. Most of Ryan’s proposals don’t cut the deficit much, and besides, he includes huge new tax cuts for the rich and goodies for Wall Street in his plan. Further more Ryan was an enthusiastic supporter of the Wall Street bailout and he voted for every spending bill that came down the pike under George W. Bush. So what are the Ryan cuts all about?

Ryan’s plan does do two things in immediate and specific ways: hurt the poor and help the rich. After extending the Bush tax cuts, he would cut the top rate for individuals and corporations from 35 percent to 25 percent. Then Ryan slashes Medicaid, Pell Grants, food stamps, and low-income housing. These programs to help the poor, which constitute approximately 21 percent of the federal budget, absorb two thirds of Ryan’s cuts.

Ryan casts these cuts as an incentive for the poor to get off their lazy butts. He insists that we “ensure that America’s safety net does not become a hammock that lulls able-bodied citizens into lives of complacency and dependency.” It’s worth translating what Ryan means here. Welfare reform was premised on the tough but persuasive argument that providing long-term cash payments to people who don’t work encourages long-term dependency. Ryan is saying that the poor should not only be denied cash income but also food and health care.

OK, that part does sound like Randianism, doesn’t it? Rand admired the strong and despised the weak, and so does Paul Ryan, apparently. Rand even went so far as to praise a serial killer for his lack of empathy for his fellow human beings.

On the level of personal behavior, the heroes in Rand’s novels commit borderline rape, blow up buildings, and dynamite oil fields — actions which Rand portrays as admirable and virtuous fulfillments of the characters’ personal will and desires. Her early diaries gush with admiration for William Hickman, a serial killer who raped and murdered a young girl. Hickman showed no understanding of “the necessity, meaning or importance of other people,” a trait Rand apparently found quite admirable.

But did Rand believe that corporations should benefit from government largess? According to Rand devotee Donald L. Luskin, she didn’t.

it’s a misreading of “Atlas” to claim that it is simply an antigovernment tract or an uncritical celebration of big business. In fact, the real villain of “Atlas” is a big businessman, railroad CEO James Taggart, whose crony capitalism does more to bring down the economy than all of Mouch’s regulations. With Taggart, Rand was anticipating figures like Angelo Mozilo, the CEO of Countrywide Financial, the subprime lender that proved to be a toxic mortgage factory. Like Taggart, Mr. Mozilo engineered government subsidies for his company in the name of noble-sounding virtues like home ownership for all.

Still, most of the heroes of “Atlas” are big businessmen who are unfairly persecuted by government. The struggle of Rand’s fictional steel magnate Henry Rearden against confiscatory regulation is a perfect anticipation of the antitrust travails of Microsoft CEO Bill Gates. In both cases, the government’s depredations were inspired by behind-the-scenes maneuverings of business rivals. And now Microsoft is maneuvering against Google with an antitrust complaint in the European Union.

The reality is that in Rand’s novel, as in life, self-described capitalists can be the worst enemies of capitalism. But that doesn’t fit in easily with the simple pro-business narrative about Rand now being retailed.

Luskin seems somewhat bemused by the selective Randianism (my term) of the new Tea Party radicals like Ryan. Traditional conservatives like William F. Buckley “loathed” Rand back in the day, probably because of her atheism and the fact that, while she verbally denigrated feminism, she lived

her life as an exemplary feminist, even as she denied it by calling herself a “male chauvinist.” She was the breadwinner throughout her lifelong marriage. The most sharply drawn hero in “Atlas” is the extraordinarily capable female railroad executive Dagny Taggart, who is set in contrast with her boss, her incompetent brother James. She’s the woman who deserves the man’s job but doesn’t have it; he’s the man who has the job but doesn’t deserve it.

Rand was strongly pro-choice, speaking out for abortion rights even before Roe v. Wade. In late middle age, she became enamored of a much younger man and made up her mind to have an affair with him, having duly informed her husband and the younger man’s wife in advance. Conservatives don’t do things like that—or at least they say they don’t.

These weren’t the only times Rand took positions that didn’t ingratiate her to the right. She was an early opponent of the Vietnam war, once saying, “I am against the war in Vietnam and have been for years. . . . In my view we should fight fascism and communism when they come to this country.” During the ’60s she declared, “I am an enemy of racism,” and advised opponents of school busing, “If you object to sending your children to school with black children, you’ll lose for sure because right is on the other side.”

BTW, none of the male authors I have cited except for Luskin mentioned the abortion issue or the incongruity of the anti-abortion Ryan claiming to believe in Ayn Rand’s vision of complete individualism.

I guess the new fantasy-based Republicans like Ryan can just mentally excise much of Rand’s individualistic philosophy–taking what they want and leaving the rest–just as they do with the bible and with science. How else can Ryan and his radical colleagues rationalize idolizing Ayn Rand while voting again and again to limit the rights of women?

Thursday Reads: Crazy Republicans, Nuclear Meltdowns, MLB Follies, and More

Posted: April 21, 2011 | Author: | Filed under: Gulf Oil Spill, net-neutrality, Psychopaths in charge, the internet, The Media SUCKS, U.S. Economy, U.S. Politics | Tags: , , , , , , , , , , , , , , , , , , , , | 62 Comments

Good Morning!!

According to Politico, Republicans are escalating their game of chicken with demands they want met before they agree to raise the debt limit.

One day after being named to a presidential task force to negotiate deficit reduction, House Majority Leader Eric Cantor fired off a stark warning to Democrats that the GOP “will not grant their request for a debt limit increase” without major spending cuts or budget process reforms.

The Virginia Republican’s missive is a clear escalation in the long-running Washington spending war, with no less than the full faith and credit of the United States hanging in the balance.

Wait a minute…Obama put ERIC CANTOR on a deficit task force??!! Okay, the joke’s over. This guy cannot legitimately run on a Democratic ticket in 2012.

Cantor says he’s ready to plunge the nation into default if the GOP’s demands are not met. People close to Cantor say that he hopes to make clear that small concessions from Democrats, including President Barack Obama, will not be enough to deliver the GOP on a debt increase….

Republicans are floating a wide range of major structural reforms that could be attached to the debt limit vote, including statutory spending caps, a balanced budget amendment and a two-thirds vote requirement for tax increases and debt limit increases.

Japan’s Nuclear and Industrial Safety Agency has finally admitted that nuclear fuel in reactors 1, 2, and 3 has melted. From reading the article, it isn’t exactly clear what has happened, but I still detect efforts to minimize the damage. There’s a little more detail in an article from the Irish Times:

The head of the Atomic Energy Society of Japan, Takashi Sawada, said yesterday that fuel rods in reactors 1 and 3 have melted and settled at the bottom of their containment vessels, confirming fears that the plant suffered a partial meltdown after last month’s huge earthquake and tsunami.

Engineers have been struggling since to bring four reactors under control by pouring water onto overheating nuclear fuel, and that water is highly contaminated as a result. Mr Sawada warned the condition of the plant could worsen if another strong quake knocks out power to its cooling systems.

“That would destabilise pressure and temperatures inside the reactors and the situation would become extremely unpredictable again,” he said.

The story also says that there was an aftershock yesterday centered around 25 miles from the plant.

All the news outlets are covering the BP oil gusher and the damage it has done to the Gulf, because yesterday was the anniversary of the explosion that killed 11 oil rig workers. Don’t worry, they’ll drop the subject like a hot potato in a couple of days. Here’s an article from the NYT.

Even in the worst days of the BP spill, coastal advocates were looking past the immediate emergency to what the president’s oil spill commission called “the central question from the recovery of the spill — can or should such a major pollution event steer political energy, human resources and funding into solutions for a continuing systemic tragedy?”

That tragedy is the ill and declining health of the Gulf of Mexico, including the enormous dead zone off the mouth of the Mississippi and the alarmingly rapid disappearance of Louisiana’s coastal wetlands, roughly 2,000 square miles smaller than they were 80 years ago. Few here would take issue with the commission’s question, but the answer to it is far from resolved.

Eclipsed by the spill’s uncertain environmental impact is the other fallout: the vast sums in penalties and fines BP will have to pay to the federal government. In addition to criminal fines and restitution, BP is facing civil liabilities that fall roughly into two categories: Clean Water Act penalties and claims from the Natural Resource Damage Assessment process, whereby state and federal agencies tally the damage caused by the spill and put a price tag on it. This could add up to billions, perhaps tens of billions, of dollars.

Awwww, gee. Poor BP. It sounds like the writer feels sorry for them.

In Wisconsin, JoAnne Kloppenburg has asked for a recount in the race for the state supreme court.

JoAnne Kloppenburg arrived at the state Government Accountability Board’s office in Madison barely an hour before the 5 p.m. local time deadline by which she had to ask for a recount or concede defeat. According to the vote count finalized by the state last week, she trails Justice David Prosser by 7,316 votes out of nearly 1.5 million cast in the April 5 election.

“Today, my campaign is asking the Government Accountability Board to conduct a statewide recount,” Kloppenburg said at a news conference. The announcement was met with applause and cheers of “thank you.” She’s requesting the recount “in part to determine what the proper outcome of the election will be and to ensure that elections form this point forward will be fair.

“I do not make this decision lightly … I have weighed the options and I have considered the facts,” Kloppenburg, currently an assistant state attorney general, said. The tight margin — small enough to trigger a provision allowing the state to pay for the recount process — means that “the importance of every vote is magnified and doubts about every vote are magnified as well,” she said.

And in silly Republican news, eight Wisconsin doctorswho wrote excuses for protesting teachers are being investigated.

The state Department of Regulation and Licensing and the Medical Examining Board said Wednesday that they had opened investigations into eight individuals who allegedly wrote doctor excuse notes for protesters at the state Capitol during rallies in February.

Last month, the Department of Regulation and Licensing said it had identified 11 people who may have provided the medical excuses, and it asked them to submit information about their activities at the Capitol.

Three members of the Medical Examining Board reviewed the information and decided to open investigations on eight of the 11, according to a department news release.

The eight being investigated are all licensed physicians, department spokesman David Carlson said.

Are Wisconsin taxpayers going to have to pay for this silliness? How ridiculous.

As a Kindle owner, I’m excited about this news. Amazon’s Kindle Will Offer E-Books From Libraries

Bookworms who own Amazon.com Inc.’s popular Kindle electronic reader will finally be able to borrow digital books from public libraries….

The move is likely to have major repercussions for public libraries and the digital-reading market generally, since Amazon currently dominates the e-book industry and its actions in the space are closely watched. There are an estimated 7.5 million Kindles in the U.S., which gives Amazon a two-thirds share of the $1 billion digital-book market, said Forrester Research analyst James McQuivey.

Many major public libraries, including those in New York, Chicago and San Francisco, offer free digital-book lending. A physical trip to the library isn’t required. Instead, library-card holders can download books from library websites. Each library sets its own digital-book lending policy, but typical lending periods are 14 or 21 days.

Major League Baseball has seized the LA Dodgers and will now control day-to-day operations for the team. Owner Frank McCourt is having financial problems.

The move was prompted by a number of issues surrounding the Dodgers, including owner Frank McCourt’s recent receipt of $30-million personal loan to meet payroll and the parking-lot attack at Dodger Stadium on March 31 that left a San Francisco Giants fan in a coma, according to a league source.

“This has been like watching a soap opera unfold,” said Gary Toebben, the president and CEO of the Los Angeles Area Chamber of Commerce. “We want a financially solvent Dodgers. We want a winning team.”

The league will now have approval rights over every significant expenditure by the team, including a trade or contract extension. This will likely put the franchise on the path to being sold.

The commissioner’s move adds to the turmoil surrounding a team already embroiled in divorce proceedings between McCourt and his wife, Jamie, who is seeking joint ownership.

McCourt tried to buy the Red Sox back when the the former owner died. Thank goodness he didn’t succeed in buying the team–they probably never would have beat the curse and won the World Series twice.

Some nutty right wing talk show host says the Bible forbids net neutrality.

The idea that all Internet traffic should be treated equally is against the teachings of the Bible and America’s Founding Fathers, according to evangelical Christian minister and political activist David Barton.

During his radio show on Tuesday, he said that net neutrality violated the Biblical principle of free markets, a principle upheld by Benjamin Franklin, Thomas Jefferson, and George Washington.

“That is part of the reason we have prosperity,” Barton said. “This is what the Pilgrims brought in, the Puritans brought in, this is free market mentality. Net neutrality sounds really good, but it is socialism on the Internet.”

“This is really, I’m going to use the word wicked stuff, and I don’t use that word very often, but this is wicked stuff,” he added.

Well that settles it then!

Monday was the 40th anniversary of Charles Manson’s conviction, so some media types decided to give him an opportunity to spout a bunch on nonsense. Manson’s new lawyer has asked the president to let the maniac out of prison, but Manson ruined his chances by giving his honest opinion of Obama.

Manson, 76, called Obama foolish in reference to Wall Street, saying he considered the president “a slave of Wall Street.”

“He doesn’t realize what they are doing. They are playing with him,” he said, according to the magazine.

Bla, bla, bla … so what else is new?


That’s about it for me. What are you reading and blogging about today?

Tuesday Reads: Tim Geithner in Control of Obama’s Economic Policy, and Other News

Posted: February 15, 2011 | Author: | Filed under: Bailout Blues, Barack Obama, Economic Develpment, Egypt, financial institutions, Foreign Affairs, Global Financial Crisis, Gulf Oil Spill, Iran, U.S. Economy, U.S. Politics, unemployment, Yemen | Tags: , , , , , , | 22 Comments

Good Morning!! The snow is slowly melting outside my house, and I’ve come down with Spring fever! No more snowstorms please, Mother Nature. Anyway, at least for this week, we are getting temperatures in the 40s and 50s. It is going to be chilly again tomorrow, but after that–springlike! After the frigid winter we’ve lived through, these temperatures feel amazing. Maybe this will make the bad news from DC a little more bearable. I hope so.

This morning I want to focus on an important article that comes via David Dayen at FDL. It’s a piece at The New Republic about Timothy Geithner, written by Noam Scheiber. First a little aside.

Back in November, I wrote a post about the axing of Obama’s economic team and noted that Geither was the last man standing.

In that post, I quoted Andrew Cockburn of Counterpunch:

If Barack Obama needed any help in guiding the Democratic Party over the cliff he certainly got it from Treasury Secretary Timothy Geithner. Voters have told pollsters that the state of the economy, their own in particular, was their principle concern. Though impelled by the specter of unemployment and homelessness, the image of Geithner, toady to the bankers, can only have encouraged them in their fury. A sensible president would therefore already be running out the plank prior to giving this disastrous financial overseer an encouraging shove between the shoulders. But in this case, we may not be that lucky. CounterPunch can reveal the crucial role played in these matters by a group close to the President but unknown to the outside world.

A knowledgeable insider told Cockburn that despite Larry Summers’ reputation as a corporate tool,

“Larry has some idea that there is more to the economy than just the welfare of large banks,” this official suggests. “He did push for a larger stimulus and more jobs programs, for example. Tim just cares about banks.”

I then went on to indulge in a little conspiracy theorizing based on Cockburn’s information. But that’s beside the point right now. The point is that after writing that post, I came to the conclusion that Geithner was running economic policy in the Obama administration.

Getting back to the article at TNR, Scheiber purports to explain how Geithner survived the massacre of the economists. One interesting tidbit in the lengthy article is about Geithner’s relationship with Larry Summers, who acted as Geithner’s mentor and patron early on.

In 1993, Geithner caught the attention of [a] prominent patron—Larry Summers—whom Bill Clinton had appointed as his treasury undersecretary. Summers took a personal interest in Geithner’s career and promoted him each time he rose through the Treasury ranks.

And then during the Obama administration, Geithner apparently stabbed his patron in the back, becoming President Obama’s primary economic adviser–even though Geithner isn’t an economist. (Neither is anyone else on Obama current “economic team,” as Dakinikat frequently points out.)

Geithner actually sounds a lot like Obama–he’s really good at sucking up and convincing people he’s on their side–until he slides in the knife. Regarding Geithner’s time at the IMF, Scheiber writes:

According to former co-workers, Geithner was deft at bringing skeptical colleagues on board. One technique involved homing in on possible dissidents and absorbing their suggestions into his proposals.

Sound familiar? A bit more:

Perhaps most important, Geithner was scrupulously attuned to the temperament of the boss. Like Obama, he evinced a strong aversion to blather. During meetings with the president, he would say little, and usually not until the end, when his opinion was solicited. “I thought [Geithner] got the president really well,” says a former administration official who interacted with him on nonfinancial matters. “When he was in trouble, I said to someone, ‘He just needs to hold on. He’ll be fine with Obama. Once they get to know each other, they’re like the same person.’”

Scheiber describes an epic struggle between Geithner and Summers over how to deal with the banks that had crashed the U.S. economy. Summers argued for some form of nationalization, while Geithner claimed the banks just needed more capital and they could recover.

If Geithner was right, the capital shortfall was much more manageable than Summers feared. The banks might be able to fill it with minimal government help, simply by selling shares to investors. But, if he was wrong, the banks would stumble along in a kind of vampire state, sucking credit from the economy and exacerbating the recession. In the worst case, fears of insolvency could trigger a modern-day version of Depression-era bank runs.

Hey, wait a minute. That sounds like what is happening to our economy right now. But, never mind, Geithner won the battle that counted–the battle for Obama’s favor.

Part of what Geithner convinced Obama of was “that it was ultimately better politics to risk a backlash with unemployment at 10 percent than to feed the backlash and watch the economy shrink further.” So it’s Geithner we have to thank for the new normal of high unemployment, poverty, and suffering among the middle, working, and lower classes.

Finally, what horrified David Dayen was Geithner’s out-front claim that–in Dayen’s words, “what’s good for Wall Street is good for America.” Geithner:

“I don’t have any enthusiasm for … trying to shrink the relative importance of the financial system in our economy as a test of reform, because we have to think about the fact that we operate in the broader world,” he said. “It’s the same thing for Microsoft or anything else. We want U.S. firms to benefit from that.” He continued: “Now financial firms are different because of the risk, but you can contain that through regulation.” This was the purpose of the recent financial reform, he said. In effect, Geithner was arguing that we should be as comfortable linking the fate of our economy to Wall Street as to automakers or Silicon Valley.

In response, Dayen writes:

I don’t even know what to say about this. We’re just a few years removed from the financial oligarchs destroying the global economy through their own greed and negligence. And the man put in charge of regulating them, who had a front-row seat to all this destruction and who has been given expanded powers under Dodd-Frank to see to it that never happens again, thinks that there’s a great “financial deepening” about to take place where the demand for sophisticated financial innovations will jump. Therefore, the financial sector will need to grow and become the most reliable spur of the US economy. That’s his feeling. And regulation can reduce the risk, even though the new regulations barely put a dent into Wall Street’s core business, and are being systematically defunded besides.

Financialization of the economy has led to practically nothing but pain for the average worker and risk for the taxpayer. It has turned the allocation of capital into the placing of bets at a casino, and the stock market into a particularly sophisticated video poker game. This territory was all covered before in the run-up to the Great Depression as well, and we know the precise causes and remedies involved. Geithner prefers not to address the plutocracy he’s really advancing here – where elites provide “financial deepening” services abroad and amass ridiculous profits that they wall off.

This incredibly amoral conman is partnering with our conman chief executive to sell out our country, our lives, and those of our children and grandchildren. There’s lots more of interest in the article, particularly the information about Geithner’s upbringing.

I’ll wrap this up with a few other stories, and then throw the floor open to your links and opinions. Did you hear that Stephen Baldwin is suing Kevin Costner over Costner’s oil-eating invention?

It seems Baldwin sold his shares in Costner’s company right before BP shelled out $50 million for the machines.

Jane Hamsher offers a flow-chart of the principle players in the scandal over US Chamber of Commerce’s attempts to discredit Wikileaks, Glenn Greenwald, Brad Friedman, David House, and others who have supported wikileaks and Bradley Manning. Joseph Cannon has also been covering this story.

Brad Friedman’s post especially is a must read. Get this, the Chamber paid 2 million dollars a month for dirt on Friedman, and got completely inaccurate information. And that inaccurate information came from corporations who are paid billions by our government “to target terrorists.” But Obama wants to cancel heating assistance for poor people to save money.

Mitt Romney is ahead in the latest NH poll, at 40%, for whatever that’s worth. Romney was always going to win NH. They always vote for New Englanders up there. The real test for Romney will be Iowa.

The Patriot Act extension has been passed by the House on the second try. I think the Egyptians will probably get rid of their emergency law before we get rid of ours.

There are “massive” protests in Iran, inspired by the dramatic events in Egypt. There have also been more protests in Yemen and in Bahrain. When will it happen here?

What are you reading and blogging about today?

Who Holds Wall Street Accountable?

Posted: October 5, 2009 | Author: | Filed under: Bailout Blues, Equity Markets, Global Financial Crisis, Surreality, Team Obama, The Bonus Class, The Great Recession, The Media SUCKS, U.S. Economy | Tags: , , , , , , , , | Comments Off on Who Holds Wall Street Accountable?

If your answer included any of number regulators or congress with its oversight duties or the traditional media with its watchdog of the public duties sorta answer, that would be a wrong answer. There were so many articles today about past and present Wall Street tomfoolery that I almost forgot to check the Wall Street Journal or The Hill. Instead, I”m relying on my subscriptions to things I’m supposed to be reading in the bath tub with Chopin playing in the background and a glass of Pinot Grigio nearby. Today, the best read came from Vanity Fare and was written by Andrew Ross Sorkin. (My Vanity Fare showed up today along with my latest copy of The Economist with the cover shouting “After the Storm: How to make the best of the Recovery.” ) My bottom line is still that Wall Street caused this and they are not only NOT cleaning it up, they are not being cleaned up.

I’m also checking out Matt Taibbi and TaibBlog now that his infamous vampire squid article in July’s Rolling Stone defined the shadowy world of Goldman Sachs better than just about any thing I’ve recently read. Matt’s blog today takes on naked selling or ‘naked swindling’ in the succinct framing of the Wall Street Deal that I now consider better jargon than that of the derivatives blah blah blah that I was taught in any of my PhD level corporate finance or investment classes. I may be able to do the proof for the Black Scholes formula but I will never be able to prove its social usefulness.

Actually, this takes me back to the Grey Lady and my first read of the day about the now bankrupt Simmons Bedding company that was the cash cow purposely inflicted with mad cow disease. Now days, it’s still more about the arbitrage deal and the leveraged deal that produces dividends than it is about what a company produces and the lives of the workers and long time managers who produce valuable stuff. It’s no longer build it and they will come. It’s leverage it to the hilt, take your dividends now, and find the next sucker with the next model that can hyperactivate the milking machine. It’s another real life example of Gordan Gekko and the greed is good speech. Spend some time with the Simmons story before you hit Taibblog and definitely the Sorkin article in Vanity Fare. It’ll put you in the right frame of mind.

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