Blog on the Run: Reloaded

Thursday, May 15, 2014 12:18 pm

Stressing the country out; or, Tim Geithner should have been fired about umpty-‘leven years ago

Tim Geithner, the guy President Obama inexplicably put in charge of the bank bailouts, has a new book out called “Stress Test.” (The term derives from the laughably phony “tests” endangered large banks were put through to see whether they had so many crap assets on their books that they needed to be liquidated; the fix was in, so not one large bank was broken apart of liquidated. Instead, we gave them bazillions of taxpayers’ dollars which they spent on bonuses for themselves instead of lending money to businesses to create jobs.)

The consensus seems to be — unsurprisingly, to me — that it sucks. Particularly, it’s incoherent where it’s not downright dishonest. The Washington Center for Equitable Growth rounds up some of the responses:

Glenn Hubbard:

About housing… I must say I split my side in laughter because Tim Geithner personally and actively opposed mortgage refinancing…. And now he’s claiming this would be a great idea…

David Dayen:

The guy who handed hundreds of billions of dollars over to banks with basically no strings attached [was] suddenly worried about fairness when homeowners get a break on their mortgage payments…. Even as he says in the book “I wish we had expanded our housing programs earlier,” he completely contradicts that to Andrew Ross Sorkin, saying [that his own] statement is “unicorny”…

Amir Sufi and Atif Mian:

Multiplying $700 billion by 0.18 gives us a spending boost to the economy in 2009 of $126 billion, which is 1.3% of PCE, 10 times larger than the estimate Secretary Geithner asserted in his book. So Mr. Geithner is off by an order of magnitude…

Economist Brad DeLong concludes:

In the “real world” Geithner did have full control over the GSEs and the FHA–because Paulson nationalized them in the summer of 2008.

In the “real world” Geithner submits his recommendation that Glenn Hubbard be nominated as head of the FHFA to President Obama on January 21, 2009, it is approved by the senate in February 2009, and thereafter there are no constraints on technocratic use of FHFA and the GSEs to rebalance the housing sector and aggregate demand.

Geithner should not say “I wanted the FHFA to act but I did not have the authority to get the FHFA to act” and at the same time say “having the FHFA act would have made no difference”; Geithner should to say “you cannot blame me because of the constraints” when we know that it was his own actions and inactions made those constraints.

Look: Tim Geithner did much better as a 2009-2010 finance minister than any of his peers. Look: the stress tests worked, and worked very well. (I disagree — Lex.) Look: Christina Romer and company say that if you need a bank rescued in 48 hours, Tim Geithner is your man. But the purpose of Stress Test is to explain to us what Tim Geithner thought and why he thought it, and thus why he did what he did.

And in Stress Test, on housing policy, he doesn’t.

Wednesday, April 28, 2010 11:13 pm

Speaking, as I was earlier, of “Oh, please, oh, please” …

… is SIGTARP — the Special Inspector General at the Treasury Department who is responsible for rooting out waste, fraud and abuse in the federal bank bailout, going to throw the book at Tim Geithner??

[Neil Barofsky] has also criticized Treasury Secretary Timothy F. Geithner in reports and in congressional testimony for his handling of the process by which insurance giant American International Group Inc. was saved from insolvency in 2008, when Geithner was head of the Federal Reserve Bank of New York.

The secrecy that enveloped the deal was unwarranted, Barofsky says, adding that his probe of an alleged New York Fed coverup in the AIG case could result in criminal or civil charges.

In Senate Finance Committee testimony on April 20, Barofsky said SIGTARP would investigate seven AIG-linked mortgage-related securities similar to Abacus 2007-AC1, the instrument underwritten by Goldman Sachs Group Inc. that is at the center of a U.S. Securities and Exchange Commission lawsuit filed against the investment bank on April 16.

Leading the Charge

“I’ve been in contact with the SEC,” he told the committee. “We’re going to coordinate with them, but we’re going to lead the charge. We’re going to review these transactions.”

Barofsky and Geithner’s offices have gone toe-to-toe over AIG, alleged lax oversight of TARP funds and even over the question of whom Barofsky reports to.

Barofsky, a former federal prosecutor who was once the target of a kidnapping plot by Colombian drug traffickers, says he’s also looking into possible insider trading connected to TARP.

But that’s absurd, because no American banker would be such a cad and bounder as to run out and buy stock in his own bank before word of an impending federal bailout of that bank became public, would he?

Naaah.

A Patriots’ Day call to arms

I’m way late to this, but it’s so good it’s still worth repeating in its entirety even as parts get overtaken by events. The author is MSNBC’s Dylan Ratigan:

This letter is a call to (electronic) arms on Patriots’ Day.

Mr. President, please show the American people the AIG emails.

In the wake of the disclosures associated with Friday’s government fraud accusations against Goldman, Sachs & Co., one of our nation’s wealthiest, largest and most politically well-connected banks, it is inexcusable the U.S. government still refuses to release the thousands of emails that exist between AIG and Goldman Sachs.

Unlike the Icelandic volcano, this was no natural disaster. Trillions of dollars have been defrauded from the U.S. taxpayer by a banking scam run by the top 1% of our country.

The mark for this con game has been and continues to be every teacher, cop, firefighter, nurse, conservative saver, small investor, student and retiree. People whose pensions, homes, jobs and monthly retirement stipends have been and continue to be deprived — so these people can use our government to transfer money from your work to themselves.

We also know that the same people responsible for this failed system are STILL RUNNING IT, leaving obvious conflicts of interest everywhere you turn.

But the American people still have one tremendous ally in not letting them get away with the fraud — a SEC law that forces these companies to keep records of all of their communications coupled with the most sophisticated, extraordinary ability to use 21st century technology to quickly harvest relevant information out of billions of pieces of data.

And even by barely scratching the surface, this is what we already find:

A Goldman Sachs vice president accused of fraud, writing “more and more leverage in the system, The whole building is about to collapse anytime now…

An S&P ratings agent saying “Let’s hope we are all wealthy and retired by the time this house of cards falters.”

Our government is in a position to grant access to a vast pool of information that could answer so many questions about why all our money was taken. But flush with money from these potentially fraudulent institutions, politicians have systematically gutted the very people charged with investigating these crimes.

As a final insult, they provide 23.7 trillion in direct and implied support for these bankers to keep bonusing themselves billions, yet offer a paltry 0.0000003% of that amount to investigate how this incredibly un-American event happened in the first place.

To add insult to injury, we the people now OWN the company at the center of much of the alleged fraud. Currently, you, the U.S. taxpayer, own 80 percent of AIG and there are now 5 people who represent us as trustees at the company.

Please Mr. President,

Show the American people the AIG emails. Many are suffering, our young are without work, our middle class is stuck in houses they can’t sell, making it impossible to move to new jobs for the future of our country, and our retirees who, at their most vulnerable, find the custodians of their life savings as either crooks or suckers for the bankster scams.

As our president, you are in charge of AIG. That means that without even a court order, the American people can see every email and it is long past due for you to release those 10 years of AIG emails to the people.

Today, in honor of our ongoing fight against tyranny, let’s send a plea to all our elected officials, Treasury Secretary and president to fulfill their custodial obligation to those they represent and show the American people the AIG emails.

And just to prove a point, look into your old email files and find some innocuous email from the past 10 years to attach to the bottom… perhaps if we show them ours, they will show us theirs.

Here is how to do it:

Your Representative http://www.house.gov/

Your Senator http://www.senate.gov/general/contact_information/senators_cfm.cfm

Treasury Secretary Timothy Geithner

President Barack Obama

Sunday, April 11, 2010 11:35 pm

Gasping for breath

The deluge is not over, but the worst of it has passed, and I now have a wee bit of breathing space. So, let’s see, what has happened while I’m gone? Nothing good, it seems:

I have no idea when I’ll be back, so this’ll have to do ya for a while.

Wednesday, January 27, 2010 11:06 pm

Odds and ends for 1/27

And people think I’m crazy for suggesting that Obama is as bad as Bush: Marcy flags something that the Washington Post’s Dana Priest wrote down but apparently failed to grasp the significance of: “Somewhere there’s a list of Americans who, the President has determined, can be killed [by their own government] with no due process.” OK, I’ll say it: Impeach him. I’m dead serious. Because if what Priest reports is true, the president has illegally and extraconstitutionally conspired to commit murder.

Think George W. Bush will watch on teevee?: Britain’s former prime minister Tony Blair testifies Friday in the inquiry into that country’s decision to join the war in Iraq. Even if he escapes indictment — and that is far from certain — Blair’s place in British history appears sure to fall into the Brit equivalent of Warren Harding country.

Cue ominous music: The SEC voted 4-1 today to suspend automatic redemptions from money-market funds. People who value these investments for their liquidity now have no reason to value them. Let the stampede begin. What’s the larger meaning? I have no idea, but I’m about 98% sure it ain’t good.

The banksters screw us again: Citi temporarily tamped down some of the criticism of its big bonuses by announcing that every part of anyone’s bonus over $100,000 would be paid in stock, not cash. The idea is, you tie employees in to the company’s goal of long-term growth and profitability. Which would be great if the stock weren’t redeemable for a couple or three years. But this stock? Will be redeemable in April. As stock bonuses go, that’s practically cash.

How the banksters screwed us the first time: The so-called “Schedule A,” the list of crap mortgage-backed securities that the New York Fed took off AIG’s hands at 100 cents on the dollar when they were actually worth around half that, has finally been made public. Not sure exactly what it will mean, but inasmuch as the NYFRB tried to keep this list secret until 2018, you can be reasonably sure it’s nothing good.

Smoking gun: Goldman Sachs could and should have had to eat some of its bad investments in 2008, but the New York Fed let it off the hook, documents show. That’s the same New York Fed then run by our current SecTreas, who REALLY needs to be returned to the private sector posthaste. Oh, wait: He has been a “public servant” his whole life. Well, that’s OK. After what he appears to have done for Goldman, they should pay him a princely sum for life and not even require him to show up for work. Then they’d have a slight taste of how we taxpayers feel, except for the part where they NEVER ACTUALLY DID ANYTHING FOR US, not that I am bitter.

Cops bumping into each other: Joining the House Oversight Committee in looking into the New York Fed’s bailout of Goldman Sachs and AIG is Neil Barofsky, Special Inspector General for the Troubled Asset Relief Program, better known as the bank bailout program, who testified today before Congress.

Oh, and lookee what Mr. Barofsky had to say: “According to these [Federal Reserve Bank of New York] executives, then-President [Tim] Geithner ‘acquiesced’ to the executive’s proposal. When asked by [Barofsky’s office]  if the executives felt they had received their ‘marching orders’ from then-FRBNY President Geithner to pay the counterparties par [instead of the roughly 48 cents on the dollar they actually were worth], one FRBNY official responded ‘yes, absolutely.'” But … but … Geithner and the White House both say Geithner wasn’t involved in the decision to screw taxpayers by paying AIG customers (including Goldman Sachs) more than they should have. So somebody’s lying. And Barofsky’s the one under oath.

And the hits just keep on coming: A report from Rep. Darrell Issa, ranking Republican on the House Oversight Committee, nails Tim Geithner’s butt to the wall.

Memo to commenters on this article: Genocide is not a contest. There is no prize.

If Steven Pearlstein were president, he’d say the state of the union sucks.

Mixed blessing: In his article “Appalled in Greenwich Connecticut [sic],” downloadable (.pdf) from his site StumblingonTruth.com, Clifford Asness of AQR Capital Management, whom I have not read before, combines grossly unfortunate metaphor (“Unfortunately for this President, he will, I hope, find the financial community not cowering from his Cossacks on a shtetl in the Pale of Settlement (Greenwich, CT), but meeting his accusations with logic and patriotism.”) with both an entitlement mentality AND common sense (“So, how do you fix too-big-to-fail? Well, this is complicated, give me a moment. I got it. You let them fail.”). For a quant, he manipulates words real purty. I may return.

The problem with cutting Medicare and Medicaid: Abe Sauer explains.

Tax the rich! Tax the rich! Oregon’s doing it. Sort of. A little. For the first time in 80 years. But the media is all Scott “Our Next President” Brown, so if you don’t hear about this, that’s why.

Wrong AND lame: President Obama’s proposed 3-year freeze on domestic discretionary spending is not only exactly not what the economy needs in a time of depressed consumer demand, it’s also almost meaningless in its effects on the budget deficit, given that it doesn’t affect big-ticket items like defense, wars, interest on the national debt or entitlements. It’s one more example of trying to appear to people who believe you incapable of doing the right thing that you’re doing the right thing. You will never win those people over, so you ought to just go ahead and do the right thing. Simpler. More effective. Pisses off the people who are wrong. Everyone’s a winner.

Rhodes Scholar tackles spending freeze, president loses.

Related: A roundup of amusing reactions to the quote freeze unquote.

And if you want to look for budget savings, here’s a suggestion. Even George W. Bush’s last Defense Secretary thinks we’re spending too much on defense, and spending it the wrong way. Observes Spencer Ackerman, who covers this stuff for a living, “Everyone in Washington who studies the Pentagon budget quickly finds gobs and gobs of wasteful spending. Not some people. Not dirty hippies. Every. Single. Defense. Analyst.”

Can we like ACORN again? Reminder: O’Keefe’s videotapes were doctored. And August J. Pollak’s commentary on the case is short enough and good enough for you to hie thee hence and read it in its entirety. Go on. I’ll wait.

(pause)

Oh, good, you’re back. Moving on, then …

Conflict of interest: Tyler Durden points out reason to believe that Senate Majority Leader Harry Reid has a quite personal reason for wanting to see Bumbling Ben Bernanke reconfirmed as Fed chairman as early as Thursday.

Whoops! Not so fast, there, Fast Harry: Sen. Jim Bunning, R-Ky., claims to have documents showing that Bernanke overruled his advisers in approving the AIG bailout. And here we thought Harry Reid was just venal. Y’know, nothing is becoming Jim Bunning’s Senate career like his leaving of it. Maybe the old guy is going senile, but he’s actually, at long last, acting in the public interest here. Or maybe he just hates Democrats. Either works for me.

Hard cases make bad law, and this hard case has led a judge to make some awful case law.

You might want to put down the knife, Ms. Quinn, because the Secret Service does NOT mess around: Obama has been advised to make sure the bunny is secure. Commenter El Cid at Balloon Juice adds, “I think it’s kind of funny that Sally Quinn goes to the trouble of asking her readers to ‘indulge [her] for a moment’, as if that woman spends the tiniest femtosecond of her life not being indulged.” And this would be funny if every other Washington journalist weren’t just like her.

The teabaggers are “good Republicans even if they don’t know it.” That’s about the best description I’ve seen.

Speaking of good Republicans, the ones doing PR for the party are just top-notch: The GOP response to the State of the Union tonight was given in — I am not making this up — the hall where Jefferson Davis was inaugurated.

The public option: C’est popular. Corporations: pas tellement: In a Research 2000 poll in 10 swing congressional districts whose seats are currently held by Democrats, a majority of Republicans favor a public option, and a plurality of Republicans, 43%, say Democrats need to do more to fight big corporations.  In the single N.C. district polled, Larry Kissell’s NC-08, voters overall favor a public option by 73% to 16%, with 11% undecided, and a 59% majority of voters, the biggest majority of any of the 10 districts, said Democrats need to do more to fight big corporations. It’d be interesting to see the results if the vague “big corporations” was changed to “banks” or “health-insurance companies” or both.

Against it for all the wrong reasons: Polling ace Nate Silver points out that part of the reason health-care reform isn’t polling as well as its supporters wish is that sizable chunks of the population believe (bad) things about the bill that are objectively untrue.

Why wouldn’t a combination of high-deductible health-insurance plans and Health Savings Accounts fix the problem? That’s pretty much the question one of my cousins asked me in an e-mail the other day. Well, Nancy, here’s your answer.

It would be funny if these people didn’t effectively control the entire U.S. school textbook market: The Texas Board of Education [sic] bans Bill Martin Jr.’s Brown Bear, Brown Bear, What Do You See? from its third-grade reading list after confusing its author with that of the book Ethical Marxism.

Afghanistan Fail: The guy who once held Stanley McChrystal’s job running the U.S. military in Afghanistan and is now ambassador to Afghanistan says McChrystal’s anti-insurgency effort in Afghanistan is doomed.

Good news, for a change, for vets: Iraq and Afghanistan vets suffering from post-traumatic stress disorder but denied monthly disability benefits from the VA can join a class-action lawsuit to get their disability ratings increased to the level required by law, which will make them eligible for benefits. The relevant law was quite clear on what disability rating vets with PTSD are supposed to be assigned, so the fact that someone even had to sue over the issue is a disgrace and an outrage.

CBS: Morons: They won’t let people run factual advertisements about George W. Bush’s war crimes, but they’ll let Christianist wingnuts Focus on the Family run a forced-pregnancy ad during the Super Bowl. I think maybe I’ll just skip the game, then — all the best parts (i.e., the other commercials) will be on YouTube next day anyway. Also, I hope all the fans of Tim Tebow, who’ll star in the commercial, read this. The money quote comes from “an NFC South talent evaluator” who is most likely with the Bucs, since the Saints and Falcons are fixed for starting QBs and the Panthers have neither the money nor the draft pick to go after a potential first-round QB.

Don’t don’t-ask-don’t-tell: That well known military-hater, retired Gen. John Shalikashvili, who implemented “Don’t Ask, Don’t Tell” as chairman of the Joint Chiefs of Staff, says it’s time to repeal the military’s ban on openly gay people. I’d say that time actually was 1775, but I’m happy to welcome J-Shal to the bandwagon.

The lessons of Stuyvesant Town: But by all means, let’s re-confirm Ben Bernanke. Jesus wept.

Rush Limbaugh confesses that he AND the world would be better off if he killed himself: Only on The Onion, unfortunately.

Why Howard Zinn and not Rush Limbaugh?: Zinn, who came up with the radical idea that the history of a democracy shouldn’t be by and for aristocrats only, is dead at 87.

Would it be irresponsible to speculate that since he’s getting a divorce, Karl Rove is now free to woo and wed Jeff Gannon? It would be irresponsible not to.

OK, this is just weird:

You’re looking at the performance of Apple stock earlier today. That big dip came right around the announcement of the iPad. I’m not sure what it means, but I’m pretty sure it ain’t what the Apple board expected.

Best. Apple. Humor. Ever.: The Wikipedia Entry for the iPad (until today): “iPad was a prototype for a feminine hygiene product that purported to digitize a woman’s menstruation cycle and store it on a password-protected Web server.[1]” More iPad humor here, but guys may want to give it a miss.

Keith Richards, sober? Because he was so upset by how hard Ron Wood fell off the wagon? I think The Awl says it all: “If Keith Richards stops drinking because he thinks you have a problem, well, you have a problem.”

This cannot possibly end well: George Lucas is producing a computer-animated musical.

And you thought Blog on the Run was minor-league: I’ll have you know this blog has just 35 fewer paying customers than Newsday.com, so there. And that’s after spending $4 million less on my site design than Newsday spent on theirs!

And you thought my carpal-tunnel syndrome happened because I type a lot.

How Japan intends to win the World Cup (this one goes out to my friend Beau):

(Note that the numbers on the radar are kph, not mph.)

And, finally, things journalists should know about polls:

Friday, January 22, 2010 8:21 pm

Odds and ends for 1/22

Double dip: There were 482,000 new unemployment claims for the week ending 1/16, which was 36,000 more than the previous week and 42,000 more than expected. Worse, new emergency unemployment claims, for those who’ve exhausted regular benefits, were up 652,364 to 5,654,544. If this is a green shoot, it’s the kind of green you see when things are rotting.

Theft of a lifetime: The chief strategist for a major international bank accuses the U.S. and U.K. central banks of conspiring to steal wealth from their respective countries’ middle classes. It’s actually a little more complicated than that, but only a little.

Risky business: President Obama has proposed ending proprietary trading by bank holding companies to reduce the level of risk in the market and, therefore, the risk that taxpayers will have to bail out more banks, something Paul Volcker supports. Banks have protested that this is unnecessary on the grounds that prop trading really isn’t a big part of their business (Goldman Sachs puts its prop-trade revenue at 10% of the total). However, observes Zero Hedge with a nice little chart, “the market begs to differ.” Goldman’s own analysis suggests that while prop trading accounts for perhaps 10% of Bank of America’s revenues, because of prop trading’s high margins it accounts for up to 45% of BAC’s earnings. If that’s true, BAC stock, which is supposed to double in price by the end of 2011, could fall 50% instead.

Related: Real conservatives like Obama’s proposal. American “conservatives,” however, not so much.

So, will Goldman Sachs stop being a bank holding company so that it can continue its proprietary trading?: Probably, although it’s kind of in a pickle because currently it has almost 21 billion reasons not to.

Best health-care reform political analysis. Ever: I don’t think it’s correct on the substance, but whether it is or not, I just love the pretty words: “The only path to national health care reform is to pass the Senate bill. Unless Nancy Pelosi and the House leadership can herd three distinct groups of cats — the Blue Dogs, the Stupak coat-hanger crowd and the progressives — HCR is going down in flames, quite possibly for another generation. This is where we’re at. It sucks. It also blows, a seemingly self-canceling phenomenon that is only witnessed in the rarest, most [rear-end]-tasting conditions. And we are witnessing such conditions this very day — a perfect storm of sucking and blowing. That said, if passing the Senate bill verbatim is a once-in-a-lifetime Suckicane meeting a Category 5 Blowphoon head-on, then NOT PASSING ANYTHING AT ALL takes us into the Bruckheimer-Emmerich territory of summer blockbuster-class suckstinction-level blowvents.”

Quote of the day, from Matt Taibbi, on the prop-trading restrictions: “Obviously this is good news, but what I find irritating about it is that the government only starts listening to its voters once the more corrupt option turns out to be untenable.” Yo, Matt, that ain’t true only about banking, either.

The New York Fed and AIG: A timeline, by Bloomberg. Nice.

People thought Rupert Murdoch wouldn’t ruin the Wall Street Journal. People were wrong, although the author concedes the problem is a bit more nuanced than he first claimed.

So if Glenn Beck isn’t talking about going after progressives through the political process, then what’s he talking about? Because when you say you’re going after your political opponents like the Israelis went after Eichmann, you probably know your audience understands that what awaited Eichmann was a gallows.

Barney Frank may actually have a good idea: Blowing up Fannie Mae and Freddie Mac and creating a new system of housing finance. F&F didn’t cause as much of the current housing-bubble crisis as most of their critics claim, but they did contribute, oh, yes, they did.

And they say this like it’s a bad thing: ABC thinks there may not be enough votes in Congress to reconfirm Ben Bernanke. Let’s hope they’re right. Bernanke is a big reason we’re in as much trouble as we are right now.

They’re the Christian Taliban, they’re stone (no pun intended) killers, and they’re based in Newark: Yeah, that’s right: Read about the connections between the PrayforNewark social-action group, the bill in Uganda to execute gays, and the Dominionist movement in the U.S. These are scary people.

If this had been my daughter, the lawsuit would’ve been filed before the sun went down: TSA employee plants bag of white powder in college student’s carry-on luggage. Plenty of witnesses — who were afraid to speak up. Excellent! Just what you want when you’re trying to prevent terrorism — people who see something hinky but are afraid to speak up for fear of being arrested!

Apparently they can use lasers to zap away fat!: Which sounds cool, and I am so on board (assuming I can find the money) … just as soon as they figure out where the fat goes.

Monday, January 11, 2010 10:55 pm

Odds and ends for 1/11

U.S. v. terror: Conviction rate in civilian courts? 88%. Conviction rate in military tribunals? 15%. So someone explain to me again why Dick and Liz Cheney are still getting airtime?

Harry Reid v. Trent Lott: To elaborate a bit on a comment discussion Fred and I had in a previous thread: What Harry Reid said about Obama was grossly awkward and inept, but he said it in a context of praising Obama. What Lott said, on the other hand, was praising a segregationist. These two things are not logically, linguistically or morally equivalent.

Guantanamo v. the Constitution: Those party animals at McClatchy News Service have served up a pyrotechnic package of print (with a whole bunch o’ Web stuff, too, including source documents) in observance of the eighth anniversary of the incarceration of the first terrorism suspects at Gitmo. The series touches on subjects ranging from holding, and torturing, innocent people to the Taliban’s influence within the prison (yeah, you read that right).

Generation R(ecession) v. the economy: Newsweek’s Rana Foroohar notes some interesting characteristics of people who come of age in bad economic times. Unfortunately, notes Chris Lehmann at The Awl, she draws some of the wrong conclusions.

Afghans v. everybody else: Incredibly mixed findings in this ABC News poll from Afghanistan. They hate both us and the Taliban. They almost unanimously think their government is corrupt, but they actually support President Hamid Karzai more than they used to. And they’re about evenly divided over whether civilian deaths are more NATO’s fault or more the insurgents’ fault for mingling with civilians.

Matt Labash v. perspective women: In his feature “Ask Matt Labash” on Tucker Carlson’s new anti-Huffington Post, the Daily Caller, Matt Labash calls red-light cameras “legalized rape” and calls Rachel Maddow “the sexiest man alive.” Way to court those swing voters, guys.

Dylan Ratigan v. Geithner: The MSNBC reporter/anchor is starting to carve pieces out of SecTreas Tim Geithner’s hide, and it couldn’t happen to a more deserving guy not named Bush, Cheney or Rove.

Perry v. Schwarzenegger: Gay marriage on trial — literally: The lawsuit Perry v. Schwarzenegger went to trial today in U.S. District Court in San Francisco. At issue is the constitutionality of Proposition 8, enacted last year by referendum to deny the right of marriage to couples of the same sex in Cali. Expected to last about 3 weeks — with the case likely to end up before the Supreme Court no matter who wins. Your all-purpose source for trial info is here, and if the opening arguments are any indication — which they may or may not be — gay-marriage proponents are headed for a big win.

The perfect v. the very good: Actually, the U.S. health-care debate is now more like the acceptable (if you drop the Stupak amendment) v. the bad, and the bad is winning.

Law enforcement v. the drug war: A lot of former cops, judges and prosecutors have endorsed legalizing marijuana in California, where a legislative committee is scheduled to vote on just that next week. Whether the full legislature passes the bill may be immaterial, though; an initiative to regulate and tax pot is on the November ballot and expected to pass.

Congresscritters v. reality: About six in 10 Americans say terrorists probably will find some way to strike us again. Unfortunately, that’s probably correct, but you wouldn’t know it to listen to some of the Congressional Republicans who are suggesting that 1) we should all be peeing in our pants over the guy who nearly set his crotch on fire and 2) that if you torture enough people and bomb enough civilians, all terror can be prevented.

Time v. knowledge: I am shocked, shocked to learn just how many Balloon Juice commenters did not know that the Germans bombed Pearl Harbor.

It’s like Vegas: What happens on Facebook stays on Facebook. Forever.

There an app for your cheapo phone if you’re a student at UNC-Wilmington, where a couple of people set out to create useful apps for the 88% of us who can’t afford smartphones.

Shorter Jonathan Alter: Clap louder and the Democrats will be fine in 2010.

Best SEC comment letter EVER: (h/t Zero Hedge)

Friday, January 8, 2010 11:26 pm

Odds and ends for 1/8

Wellnow. AIG, Tim Geithner and PricewaterhouseCoopers could all be in trouble. I don’t know much about PwC, but as far as the other two go, trouble couldn’t happen to a more deserving pair. Unfortunately for Democrats, AIG and Geithner are now their problem, as at least some recognize.

And regarding Geithner, etc., this Republican says “amen”: Says “washunate”: “If we [Democrats] don’t clean house, Republicans eventually will. … We are at the bizarre point now where situations that should be case studies for everything that’s wrong with the crony capitalism of the Reagan-Bush era are being turned into defend-the-ramparts or remember-the-Alamo entrenchment by Democratic leaders.”

NO MASterCard!: Consumer borrowing plunged by a seasonally adjusted all-time record $17.5 billion in Novemer.

Freemasonry unveiled!: And it’s not nearly as entertaining as Dan Brown would have us believe.

Evidence that Teh Sm4rt Kid2 aren’t going into journalism: Newsweek’s Jonathan Alter suggests that President Obama meet personally with Dick Cheney to tell him to STFU ask him to stop bad-mouthing administration terrorism policy. Pshyeah. The only reason Obama should meet personally with Dick Cheney is to personally clap him in irons and haul his war-criminal ass off The Hague. (“Clap him in irons.” I love that phrase. So pirate.)

Jackassery unveiled!: The manager and assistant manager of Maricopa County, Ariz., will testify before a federal grand jury against Joe Arpaio, the unrepentantly abusive, bigoted thug currently occupying the office of sheriff.

People ask me why I think private, for-profit health insurers are a mistake: This is one reason why.

As she has done in the past on Republican apologists for Plamegate, Marcy Wheeler is laying a hurting on the Obama administration’s main academic apologist for its health-care reform plan.

Another hold on Ben Bernanke, this one from Byron Dorgan, at least until Bernanke opens the Fed’s books. Good! So good, in fact, that Teddy Partridge thinks we should replace Geithner with Dorgan. More background on Dorgan here. Remember, Dorgan is not only the person who said it would take us less than a decade to regret repealing Glass-Stegall, he’s also the guy who was warning us of the dangers of “too big to fail” — in 1974.

Love’s Labors Lebowski’ed: Nance (actually, strictly speaking, some of Nance’s commenters) and others have been bugging me for years to see The Big Lebowski. And it’s not that I don’t want to, but I just haven’t had, or made, the opportunity. But it now appears that I’m going to have to rent it or something just so that I can fully enjoy this.

Another fight the Obama team appears likely to try to back down from: ‘Net neutrality. At some point, some presidential candidate is going to have to openly run against corporate lobbyists (and win by about 20 million popular votes, so that there’s no question about a mandate), or else there will never be the political will to put these weasels back in their cages.

Shorter Ellen Malcolm, departing head of the pro-choice lobbying group Emily’s List, as channeled by Jane Hamsher: “Every single person we elected [to Congress] is determined to vote for the biggest setback to abortion rights in my lifetime, and I don’t want to be here and eat s— for it from big donors when it happens.”

And, finally, yes, I’m probably going to have to watch this: (OK, Vimeo had a trailer for the new “A-Team” movie up today that looked really, really cool, but it has been taken down.)

Monday, November 23, 2009 9:56 pm

Odds and ends for 11/23

  • Critics of the health-care reform bills complain that the government will start paying for it years before people actually begin to receive services. And that’s a valid complaint. But if it all started together, wouldn’t they be complaining about that, too, because that would represent a failure to get the money in place first?
  • House Appropriations Chairman David Obey warns the president that if the U.S. wants to send more troops to Afghanistan, he won’t approve funding (which could be $40B) without a “war surtax” to pay for it. Obey absolutely opposes sending more troops, so that’s what this is really about for him, but the fact is, we shouldn’t be paying for wars off budget, as we have been doing.
  • There’s a huge bloc of voters out there for the grabbing for any politician willing to champion consumers’ rights and fight stuff like this.
  • A couple of months old but still noteworthy: Almost 1 in 4 U.S. households has suffered a layoff during the current recession; 44% have either lost a job or had their wages or hours cut; 53% of those polled (including majorities of both Republicans and Democrats) call unemployment the nation’s top problem; 51% said this year’s stimulus bill was the right thing to do and 81% said Obama has not done enough to help the economy.
  • How did I miss this — and when did Muammar el-Qaddafi go to work for The Onion? (h/t: Jill)
  • Some people just flat shouldn’t be allowed to be cops. Joe Apaio is definitely one of them.
  • Yet more on how the Fed, and Tim Geithner in particular, screwed up its handling of AIG. If it seems like I’m harping on this subject, it’s because I think it contains important lessons that I’m terrified we’re not going to learn.
  • Sewage? You’re drinking it, and there’s almost a 1-in-10 chance it made you sick last year.
  • Congresswoman and raving lunatic Michele Bachmann, R-Minn., says she can’t understand “why the Democratic Party would be opposed to me.” The appropriate question is why any sentient life form would not be opposed to her.
  • And, finally, advice for journalists, from Athenae at First Draft: “Mourning the death of hard news? Go do some.”

Most concise explanation I’ve seen …

… of why Tim Geithner ought not be on my payroll.

Friday, November 20, 2009 9:33 pm

Odds and ends for 11/20

Huge win for the good guys, by which I mean taxpayers: House Finance Committee overwhelmingly and with true bipartisan support votes to audit the Fed. Barney Frank, previously a supporter, voted against. He’s going to need a damn good explanation.

Welcome to the 21st century, beehortches: Muslims want an anti-blasphemy law? Well, I want a jet pack and I ain’t getting that, either.

Come for the counsel, stay for the funny anecdotes (or vice versa): The NYT asks a shrink to tackle the fraught topic of holiday family get-togethers.

Transact this: Economist Dean Baker on the case for a financial-transaction tax. Short version: Yes, it would raise (microscopically) the cost of capital, but like booze and cigarette taxes, it would discourage something harmful: in this case, the kind of high-frequency, high-volume, low-value trading currently dominating the stock market. (Let’s face it, when the market can go up significantly on a day when more than a third of all trading involves the stock of just four companies — four basically insolvent companies — does the economy really benefit?)

Show some respect: A large majority of Americans, and 53% of Republicans, think it’s OK for the president of the United States to bow to the leader of a foreign country he’s visiting when it’s custom to bow in that country, according to a poll from that hotbed of pro-Obama liberalism, Fox News (question 18).

Shorter Amanda Hess, for the win: Why is sexism only a problem when it affects Sarah Palin?

Funding priorities: Can we please all agree that whatever else goes into health-care reform legislation, it ought not contain a dime for stuff that doesn’t work? Or has Teh Stoopid rendered even that common-sense position untenable?

Consumer advocacy: Elizabeth Warren sez, “We need a new model: If you can’t explain it, you can’t sell it.”

Once-a-century confluence?; or, Who are you and what have you done with the senator?: When Sen. James Inhofe and former New York Gov. Eliot Spitzer agree that it’s time SecTreas Tim Geithner resigned, maybe it really is time Tim Geithner resigned.

Tuesday, November 17, 2009 8:42 pm

Odds and ends, Nov. 17

  • Our eyes are on Afghanistan, but the prize is energy-rich Uzbekistan. So they boil political opponents alive. Big freakin’ deal.
  • The Special Inspector General of the fed bank bailout program says we need to audit the Fed already. Fine minds agree. So let’s audit the Fed already.
  • Tim Geithner’s pissing away of taxpayer money earlier this month, to the benefit of — surprise!! — Goldman Sachs and AIG —  would’ve been grounds for dismissal, if not execution, in any country that wasn’t already a banana republic. Unfortunately, we’re all now singing the Chiquita song:

This, Mr. Geithner, is what moral hazard is all about. Thanks to your actions you have doomed the U.S.’s formerly free and efficient equity markets to the biggest capital market bubble in history, which, like any ponzi, has only two outcomes: it either keeps growing in perpetuity as greater fools crawl out of the woodwork to keep it growing, albeit at ever slower marginal rates (note, this did not work out too well for Madoff), or it eventually pops. And the longer it takes to pop, the greater the ultimate loss of value: one day Madoff’s business was worth $50 billion, the next day it was $0. And that is precisely the same fate that American capital markets will have at some point in the upcoming months or years. When future historians look back at what specific action caused the biggest crash in U.S. capital markets history, Mr. Geithner’s cataclysmally botched negotiation of the AIG counterparty bailout will undoubtedly be at the very top of the list. In the meantime, just like in the Madoff case where the trustee is trying hard to trace where any stolen money may have been transferred to, to see the fund flows in our ongoing “ponzi in progress”, look no further than the bank accounts of Goldman bankers as they receive their biggest ever bonus this year …

 

  • Relatedly, I’m a lot less bothered about Obama bowing to an Asian leader than I am about his bowing to Goldman Sachs.
  • Question of the day, from Michael Lind: Shouldn’t the government pledge allegiance to the people, rather than the other way around?
  • Nice punking of an anti-immigration crowd. Not-so-nice behavior of the cops on hand, who were shoving around nonviolent counterprotesters rather than the anti-immigration folks who started the fisticuffs.
  • Time to revoke David Broder’s membership in the Wise Old Mainstream Media Pundits’ Club: When you say it’s more important to do something, anything, now than to do the right thing, you’re reckless. When you say that about a decision over whether to start, or expand, a war of choice, you’re just batsh*t insane definitely not supporting the troops.
  • Faith may well complement competent psychiatric care, but it is no substitute, a fact that appears to have escaped the Department of Veterans Affairs. And this is just one facet, albeit a particularly annoying one, of the VA’s utter failure to cope competently with the mental-health problems of veterans of the fighting in Iraq and Afghanistan. My senior senator, Richard Burr, ranking Republican on the Senate Veterans Affairs Committee and a guy with a DSCC bulls-eye on his back this election year, could do himself a lot of political good, in addition to doing a lot of real-world good for a lot of deserving people, if he just rode this issue like a beast across the plains of Mongolia.
  • And speaking of Richard Burr, call the WAAAAmbulance. Apparently, Senate Republicans are concerned that TV commercials about them supporting government contractors who let their employees get gang-raped may engender bad feelings against … um, well, the 30 Senate Republicans who supported government contractors who let their employees get gang-raped. (Here’s the one on Burr:)

Saturday, November 7, 2009 11:10 pm

“Too big to fail” …

… is too big, period. Sign Sen. Bernie Sanders’ petition to Tim Geithner to break up the banks that pose a risk to American taxpayers, and please support Sanders’ forthcoming legislation.

Tuesday, November 3, 2009 11:02 pm

Let’s fire him now and avoid the rush

MSNBC’s Dylan Ratigan on Treasury Secretary Tim Geithner, who not only played a major role in getting us into this mess but also is allowing the banksters to screw us over while worsening the mess. His bill of particulars is long and damning. A taste:

… in the past 9 months, not only has the administration not fixed anything, they have made things much worse for anyone who isn’t a Wall Street banker. Therefore, we are past the point where anyone in power still gets the benefit of the doubt and the process of taking back our country for all citizens must begin now.

This is why I think we must ask if U.S. Treasury Secretary Timothy Geithner is still the right person for the job. It has become clear recently that back in his previous role as New York Federal Reserve Governor, he unnecessarily gave billions of dollars of US tax money to banks and insurance companies with few strings attached. And it is now becoming clear that his lack of meaningful action is helping many of these same banks steal more by legalizing their most economically dangerous, socially destructive and self-enriching practices.

Firing Geithner now would actually be doing him a favor, too, by providing him additional time to prepare his defense.

Relatedly, the banksters’ entitlement mentality is getting so overweening that even Bloomberg has been reduced to snark:

In fact, those Bloomberg customers [polled by the news organization] said any limits on pay will boomerang. Asked “Do you think limits on executive compensation in the financial industry will do more to control excessive risk-taking or more to discourage useful innovation?” 65 percent of the ones working in the U.S. said limits on pay would choke innovation.

Knowing what we do about innovation in finance, we wouldn’t want that to happen.

Also relatedly, don’t ask me how the Supreme Court we had in June could vote to give state officials more regulatory power over federally chartered banks. Just be glad they did, because some state attorneys general are going to sue them some crooked lenders. I’ve said on numerous occasions that there’s no way the mortgage bubble could have happened without widespread fraud, and if the feds aren’t going to crack the whip, I’m just happy somebody is.

 

 

Wednesday, October 21, 2009 10:46 pm

More odds and ends

  • The Galleon insider-trading case, in which billionaire Raj Rajaratnam was charged and the securities-rating firm Moody’s was implicated? Has been assigned to Judge Jed Rakoff. Yeah, this Jed Rakoff. (I hope the judge is taking extremely good care of his health, if you know what I mean, because he is making life intolerable for some very, very wealthy and powerful people.)
  • Former Fed Chairman Paul Volcker, who got us both into and out of the ’81-’82 recession, thinks we need to kind of restore the Glass-Steagall Act, which kept commercial banks from doing investments (and being dragged under when those investments went south) before its 1999 repeal. But he’s having trouble selling that idea to all the Goldman Sachs alumni on Team Obama.
  • If this hearing in fact happens tomorrow — I read or heard somewhere it could get delayed — it could get real ugly real fast for Fed Chairman Ben Bernanke and former Treasury Secretary Hank Paulson. Hell, it might even get ugly for current Treasury Secretary Tim Geithner. I’d be OK with any and/or all suffering some consequences, because you don’t have to be a Harvard MBA to know Bank of America shareholders got screwed.
  • Speaking of Hank Paulson, turns out that while he was still secretary, he met in Moscow with the board of Goldman Sachs. But nothing improper happened. Really. Move along; nothing to see here. These are not the droids banksters you’re looking for.
  • Dana Perino, concern troll. Memo: advice on how to conduct yourself from a PR standpoint from someone who used to take money to call people traitors and supporters of terrorists is probably not worth what you’re paying for it.
  • Shorter Congressman Jeb Hanserling (R-Texas): I’m here to protect banks; screw the consumers.
  • Another Republican, this time John McCain, thinks another earmark, this one $325,000 for earthquake study in Memphis, is a waste of money, and once again is wrong. Three words: New Madrid Fault.
  • Shorter Timothy Noah: Whatever happened to, you know, reporting?; or, The public option was always popular, you morons — you just pretended otherwise or weren’t paying attention.
  • More Noah, because this is just so good and so true: “Political reporters are momentum junkies, forever plotting out momentary trends to infinity. If they were meteorologists, they’d interpret 90-degree temperatures in July to predict 160-degree temperatures in December.”
  • John Cole righteously dopeslaps neocon pinhead Pete Wehner.
  • Sure, Sarah Palin’s $29 book can become a bestseller — when you sell it for $9 or give it away with a magazine subscription.
  • The Bush and Obama administrations actually threatened not to share intelligence with the U.K. if it released evidence of our torture of a guy named Binyam Mohammed. (Yeah, let’s stop sharing info with our oldest and most trusted ally. Genius.) Fortunately, Britain’s highest court is calling their bluff.
  • The maker of Tasers, which has long claimed that Tasers aren’t lethal, now concedes that they might be, potentially, well, a little bit, um, lethal. I’m guessing someone finally talked to their lawyer and figured that just maybe they might want to do a little butt-covering.
  • Socialism … and its potential benefits.
  • OTOH, let’s foster competition and innovation, not hinder it.

Finally, a bit of a health-care roundup:

  • The House Judiciary Committee voted 20-9 today to strip the health-insurance industry of its federal antitrust exemption. This is such a good idea that three Republicans even went along with it. I dearly hope my own representative, Howard Coble, was one of them. (thomas.loc.gov hasn’t been updated yet so I don’t know.)
  • You can too get a hip replacement under the Canadian health-care system even if you’re of retirement age. Ignore the urban legends/propaganda.
  • Sen. Richard Burr’s health-care reform plan: fail. Not epic fail, not actual sabotage of what the bill purports to support, but also not enough recognition of certain economic and financial realities.
  • Expand Medicare to include — well, anyone who wants in? That’s a public option even some Blue Dogs can believe in.
  • And even if we choose a real public option, the Congressional Budget Office says it won’t cost as much as opponents have been claiming.
  • Apparently, U.S. Sen. Arlen Specter had no idea that some people were unable to start their own businesses, or stuck in jobs they hate or aren’t suited for, because they can’t afford the health insurance costs they’d have to pay if they made those moves. I mean, c’mon, how imaginative do you have to be before that possibility occurs to you?
  • Last but not least, Al Franken humbles a Hudson Institute hack on health-care finance:


Senator Al Franken: I think we disagree on whether or not the healthcare reform we’re talking about now in Congress should pass. And you said that, kind of the way we’re going will increase bankruptcies. I want to ask you, how many bankruptcies because of medical crises were there last year in Switzerland?

Diana Furchtgott-Roth: I don’t have that number in front of me but I could find out and get back to you.

Franken: I can tell you how many it was. It’s zero. Do you know how many medical bankruptcies there were last year in France?

Furchtgott-Roth: I don’t have that number but I can get back to you if you like.

Franken: The number is zero.
…

Monday, March 23, 2009 10:23 pm

Quote of the day, Treasury Secretary Tim Geithner edition

Tbogg, on Geithner’s newly released (but not new; see earlier Geithner plan, Paulson plan) plan to stick taxpayers with the cost of banks’ bad assets while letting private interests get the vast majority of any profits:

“Geithner isn’t Michael Brown. He’s Hurricane Katrina.”

Bankrupt firms belong in bankruptcy court, not sucking endlessly on the public teat. It’s Geithner’s responsibility to get them there, and not only is he not doing it, he’s doing his dead-level best to keep them on life support. (Other things he’s doing wrong here.)

Now, that said, I should point out that Geithner isn’t operating in a vacuum: He’s doing what Barack Obama wants him to do. So either Obama doesn’t understand the ramifications of the plan, or he understands perfectly well and just doesn’t care.

I vote the latter. Obama could well end up a one-term president because of it. And that’s what he would deserve.

Just a little ray of sunshine, he is

Filed under: We're so screwed — Lex @ 9:35 pm
Tags: ,

Bad as things are right now, James Galbraith says, they’re going to get worse with Tim Geithner’s plan:

For the first time since the 1930s, millions of American households are financially ruined. Families that two years ago enjoyed wealth in stocks and in their homes now have neither. Their 401(k)s have fallen by half, their mortgages are a burden, and their homes are an albatross. For many the best strategy is to mail the keys to the bank. This practically assures that excess supply and collapsed prices in housing will continue for years. Apart from cash—protected by deposit insurance and now desperately being conserved—the American middle class finds today that its major source of wealth is the implicit value of Social Security and Medicare—illiquid and intangible but real and inalienable in a way that home and equity values are not. And so it will remain, as long as future benefits are not cut. In addition, some of the biggest banks are bust, almost for certain. Having abandoned prudent risk management in a climate of regulatory negligence and complicity under Bush, these banks participated gleefully in a poisonous game of abusive mortgage originations followed by rounds of pass-the-bad-penny-to-the-greater-fool. But they could not pass them all. And when in August 2007 the music stopped, banks discovered that the markets for their toxic-mortgage-backed securities had collapsed, and found themselves insolvent. Only a dogged political refusal to admit this has since kept the banks from being taken into receivership by the Federal Deposit Insurance Corporation. …

Delay is not innocuous. When a bank’s insolvency is ignored, the incentives for normal prudent banking collapse. Management has nothing to lose. It may take big new risks, in volatile markets like commodities, in the hope of salvation before the regulators close in. Or it may loot the institution—nomenklatura privatization, as the Russians would say—through unjustified bonuses, dividends, and options. It will never fully disclose the extent of insolvency on its own.

The most likely scenario, should the Geithner plan go through, is a combination of looting, fraud, and a renewed speculation in volatile commodity markets such as oil. Ultimately the losses fall on the public anyway, since deposits are largely insured. There is no chance that the banks will simply resume normal long-term lending. To whom would they lend? For what? Against what collateral? And if banks are recapitalized without changing their management, why should we expect them to change the behavior that caused the insolvency in the first place?

We’re so screwed.

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