Why does the Congressional Democratic leadership appear so hell-bent on getting a Wall Street bailout bill passed? Word from Capitol Hill today is that the framework of a deal is close to being agreed upon, but that some contentious aspects still need to be hammered out. However, opposition to any bailout of Wall Street with taxpayer funds apparently runs deep, on both sides of the political spectrum. Indeed, Republicans appear to be scared shitless to vote yes on such a massive transfer of government funds. I don't think it is hard to see why. They already face the daunting task of getting re-elected in the midst of a massive economic meltdown, and add to that the eight years of disaster under Dubya, and you can see that this would likely be the last nail in the coffin for many a Republican congressman. They would prefer not to have to go back to their districts to face an angry constituency, and explain how this Republican administration just cooked up the "mother of all waffles," to the tune of $700 billion dollars,
“We do not support government bailouts of private institutions. Government interference in the markets exacerbates problems in the marketplace and causes the free market to take longer to correct itself.”
-- 2008 Republican Platform
That pretty much sums up the state of the Republican Party, don't you think? Thanks to Craig Markwardt for forwarding that gem. Still, we are left with the question of why the Democratic leadership seems to want to take ownership of this noxious bill. A number of leading economists have recently questioned the need, indeed the usefulness, of the scheme outlined by Paulson. The ultimate albatross around the neck of our economy is debt, so it is not at all clear that borrowing nearly a trillion dollars to throw at the perpetrators of the debacle will be of any lasting value. More likely, it may simply speed up the flight from the dollar in the long run, more like gasoline on a fire rather than water.
Nevertheless, in the face of all of this opposition, the Democratic leadership still appears to be more concerned with the wishes of the administration and the so-called wizards of Wall Street than the average American. For one thing, Democrats should simply consider the source of this massive request. When was the last time Bush and Co. were right about anything? But for some reason, even with historic levels of dissatisfaction with Bush and the Republican party, there would appear to be nothing the Democrats in Congress would deny the Mediocrity in Chief.
While the times clearly call for strong leadership, all we continue to get from Pelosi and Reid is caution and unwarranted bipartisanship. Indeed, it has become the hallmark of this pair that the appearance of so called bipartisanship seems to be their raison d'etre. No matter what horrendous legislation they are passing, as long as they can appear "bipartisan", they seem to think that the American people will sit back and applaud. This is a calculation Democrats have been making now for a long time, and what success has it brought them? Very little. They still appear weak and unprincipled, and too willing to act in the interests of big money rather than their supposed base of support among working Americans. Before passing perhaps the biggest public bailout of corporate interests, the Democratic leadership needs to go before the people and clearly explain how and why this bailout will work, how it will be done, how it will be overseen, and how it will be paid for. If these issues are not clearly addressed in a rush to pass something, then the Democrats will also, rightly, face the ire of many outraged voters in November.
Saturday, September 27, 2008
Sunday, September 21, 2008
A Financial Patriot Act
Twice in the George W. Bush era a catastrophe has had its epicenter on Wall Street. We know all about the first, the terrorist attacks on September 11, 2001. The second, the financial "storm" engulfing our corrupt banking and financial system, will now play itself out over the weeks and months to come. Already it has claimed hundreds of billions of dollars of the public trust, and the end may be nowhere in sight. The circumstances surrounding these two events, ironically, have much in common.
With it's head in the sand, ignoring ample warnings suggesting that strikes inside the US were likely being organized--recall the title of that Presidential Daily Briefing, "Bin Laden Determined To Strike in US"--the Bush administration sleep-walked while the 9/11 attacks were being prepared and executed. The political results of that negligence we know all too well, expanded government powers; legislation gravely treading upon Constitutional liberties; a disastrous change in US foreign policy; torture, extraordinary rendition and Guantanamo Bay (to name but a few). Bad legislation was pushed through Congress and equally bad policies were foisted on an America kept fearful and ignorant by administration propaganda and deception. In a state of fear Congress rushed through the Orwellian-named "Patriot Act," provisions of which any true patriot would find unconscionable. Let us recap this sad tale. Those who were negligent, and by their negligence at least partially responsible, were left ultimately unaccountable, moreover, they were left in power, unchecked and with free reign to manage the aftermath of 9/11, to the disastrous ends we all now must live with.
Now, the American people, seemingly without a memory, are allowing a replay of this scenario to unfold, perhaps to equally disastrous ends. After eight years of corruption, deregulation, dismantling of any oversight and enforcement regime, and cheer-leading for corporate greed and excess, the same administration that napped while terrorists plotted, has been comatose while a largely foreseeable financial meltdown that may ultimately match or exceed the Great Depression, has been allowed to happen. And now, with the crisis at its apparent zenith, with fear and the professed need to act at near fever pitch, drastic solutions are being discussed by the administration and the Democrat-controlled Congress. Indeed, the first details of Treasury Secretary Paulson's proposed bail-out legislation has been made public this weekend, and from the looks of it has every indication of being a financial version of the Patriot Act. The remarkably terse text of the bill, essentially grants Paulson and the administration, a rolling $700 Billion slush fund with which to buy up the bad mortgage-related debts of ANY financial institution based in the US. How's that for broadly defined? Although it might seem that the $700 Billion is a cap, the text indicates that this is the amount that can be outstanding AT ANY GIVEN TIME. Thus, the total sum which American taxpayers could be on the hook for could be significantly more, say, several Trillion dollars! Now that's some serious coin! However, the most sinister and outrageous clause in the text is the following;
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Yes, you might want to read that again. Decisions made by the Secretary regarding this Act would be NON-REVIEWABLE, by ANY agency, court or entity. This would be Congressionally mandated and approved fascism, nothing less. It would grant virtually unlimited financial power to the agents of the President without any accountability! Moreover, it would grant this authority to those who, Nero-like sat back, watched and indeed, precipitated the crisis with their disregard of their regulatory functions and pro-Wall Street legislation. But it would do even more than that, it would privatize the ill-gotten profits of these corporate criminals, while socializing all of the risk, on the backs of our kids, perhaps for decades to come. This is beyond outrageous. As Glenn Greenwald and others have pointed out, this should arguably be something of a "pitch-fork" moment, something that might actually get people out into the streets protesting, that is, if protests were still allowed. This must not be allowed to happen. Every thinking, responsible American needs to get on the phone and contact their representatives in Congress to oppose this monstrous draft bill.
While it may be true that some form of Government-sponsored bail-out is needed to stabilize the economy, all Americans should insist that it meet several conditions;
With it's head in the sand, ignoring ample warnings suggesting that strikes inside the US were likely being organized--recall the title of that Presidential Daily Briefing, "Bin Laden Determined To Strike in US"--the Bush administration sleep-walked while the 9/11 attacks were being prepared and executed. The political results of that negligence we know all too well, expanded government powers; legislation gravely treading upon Constitutional liberties; a disastrous change in US foreign policy; torture, extraordinary rendition and Guantanamo Bay (to name but a few). Bad legislation was pushed through Congress and equally bad policies were foisted on an America kept fearful and ignorant by administration propaganda and deception. In a state of fear Congress rushed through the Orwellian-named "Patriot Act," provisions of which any true patriot would find unconscionable. Let us recap this sad tale. Those who were negligent, and by their negligence at least partially responsible, were left ultimately unaccountable, moreover, they were left in power, unchecked and with free reign to manage the aftermath of 9/11, to the disastrous ends we all now must live with.
Now, the American people, seemingly without a memory, are allowing a replay of this scenario to unfold, perhaps to equally disastrous ends. After eight years of corruption, deregulation, dismantling of any oversight and enforcement regime, and cheer-leading for corporate greed and excess, the same administration that napped while terrorists plotted, has been comatose while a largely foreseeable financial meltdown that may ultimately match or exceed the Great Depression, has been allowed to happen. And now, with the crisis at its apparent zenith, with fear and the professed need to act at near fever pitch, drastic solutions are being discussed by the administration and the Democrat-controlled Congress. Indeed, the first details of Treasury Secretary Paulson's proposed bail-out legislation has been made public this weekend, and from the looks of it has every indication of being a financial version of the Patriot Act. The remarkably terse text of the bill, essentially grants Paulson and the administration, a rolling $700 Billion slush fund with which to buy up the bad mortgage-related debts of ANY financial institution based in the US. How's that for broadly defined? Although it might seem that the $700 Billion is a cap, the text indicates that this is the amount that can be outstanding AT ANY GIVEN TIME. Thus, the total sum which American taxpayers could be on the hook for could be significantly more, say, several Trillion dollars! Now that's some serious coin! However, the most sinister and outrageous clause in the text is the following;
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency."
Yes, you might want to read that again. Decisions made by the Secretary regarding this Act would be NON-REVIEWABLE, by ANY agency, court or entity. This would be Congressionally mandated and approved fascism, nothing less. It would grant virtually unlimited financial power to the agents of the President without any accountability! Moreover, it would grant this authority to those who, Nero-like sat back, watched and indeed, precipitated the crisis with their disregard of their regulatory functions and pro-Wall Street legislation. But it would do even more than that, it would privatize the ill-gotten profits of these corporate criminals, while socializing all of the risk, on the backs of our kids, perhaps for decades to come. This is beyond outrageous. As Glenn Greenwald and others have pointed out, this should arguably be something of a "pitch-fork" moment, something that might actually get people out into the streets protesting, that is, if protests were still allowed. This must not be allowed to happen. Every thinking, responsible American needs to get on the phone and contact their representatives in Congress to oppose this monstrous draft bill.
While it may be true that some form of Government-sponsored bail-out is needed to stabilize the economy, all Americans should insist that it meet several conditions;
- It must not reward the perpetrators of this catastrophe. That is, the Wall Street fat-cats who gambled with the public's money, lost, and now wish to be repaid!
- It must be largely financed by those who sought to profit and brought about the conditions that precipitated the crisis. It must not be financed on the backs of the middle class and lower income Americans. This point has recently been emphasized by Independent Senator Bernie Sanders. Taxes should be raised on corporations and the wealthy, at a minimum.
- Any deal must be conditional on major changes to the current administration. At a minimum, those economic "stewards," the Treasury Secretary (Paulson) and Federal Reserve Chairman (Bernanke) who were so demonstrably wrong must resign. However, a more reasonable requirement for Democratic approval of some bail-out would be resignation of the President and Vice President.
- It must be accompanied by a return to close regulation and policing of the banking and finance industries, indeed, of all corporations. There can be no return to "business as usual." A new commitment to a corporate culture that benefits society must be enforced.
- Those responsible for the debacle must not be allowed to manage the aftermath, and must be held accountable for their negligence and malfeasance.
Tuesday, September 16, 2008
Socialized Capitalism
The last few days have seen some rather astonishing developments coming out of the Treasury Department of the Bush administration, what with the collapse and bail-out of mortgage giants Fannie Mae and Freddie Mac, the 500 point implosion of the stock market on Monday, followed by the death or sale of several big-name Wall Street financial institutions including; Merrill Lynch, Lehman Brothers, and now most recently, the insurance giant AIG. But not to worry, we can all rest easy knowing that none other than that economic genius John McCain has decreed that our economy has "sound fundamentals." I'm so glad, just imagine what unsound fundamentals might look like!
We are truly fortunate, as over the last few weeks we have been witness to the perfection of a new kind of political economy. This new form of governance can only accurately be called "Socialized Capitalism." And who have been the authors of this new kind of socialism for the rich? You guessed it, none other than the self-styled free-market, Capitalist, Republican administration of George W. Bush! Here's how it works. Powerful corporate and wealthy interests essentially take over the functions of government. This was easy, as the die was cast when the Republicans came back to power with the 2000 "election" of Bush. These elite, wealthy special interests are essentially the constituency of the Republican party (though the Democratic Party does not escape all blame here either). With the reigns of power in hand, or at least in the hands of their surrogates, corporations can then re-write regulatory law and weaken the oversight and enforcement functions of the government. In the context of the financial sector, this gave banks and investment firms carte blanche to freewheel and make a killing, selling "derivatives" and bundled, mortgage-backed securities, while overexposing themselves to substantial debts from an ocean of bad loans in the process. Then, when the bill finally comes due and the pyramid scheme collapses, that same corporate-run government that initially rigged the game, allowing and enabling the plunder, provides billions and billions of tax-payer dollars to bail out those poor ailing corporations. It's a perfect confidence racket, and every tax-paying citizen is a chump with the word "sucker" written right across their forehead. Not just you, your young children will be saddled with this debt for years to come. These hucksters have mortgaged our kids futures to enrich their already rich constituents. Almost enough to make one boiling mad, eh?
And all this is brought to you by that very same Republican Party that loves to talk about free markets, small government, personal responsibility and the wonders of unfettered Capitalism, the same Republican Party that becomes apoplectic when anyone even breathes the words liberal, socialism or, god forbid, welfare. Of course all this Republican talk of free markets etc. is a steaming pile of guano, and maybe after being fleeced for eight years by Bush and Co. enough Republican-voting "suckers" out there will finally get the message? Republicans love big government, especially the kind that is doling out huge sums of cash to their constituents. They love free markets for the other guy, but hate them if it means they would have to compete fairly. And personal responsibility? Republicans are NEVER responsible, that's also for the other guy. In fact, when you're a Republican it's always the other guys fault. Make no mistake, this Republican administration is practicing rampant socialism for all its corporate constituents. Forget about welfare queens, Bush, McCain, and all their Republican supporters are the welfare kings, the kings of corporate welfare. We let them stay in power at our own peril.
We are truly fortunate, as over the last few weeks we have been witness to the perfection of a new kind of political economy. This new form of governance can only accurately be called "Socialized Capitalism." And who have been the authors of this new kind of socialism for the rich? You guessed it, none other than the self-styled free-market, Capitalist, Republican administration of George W. Bush! Here's how it works. Powerful corporate and wealthy interests essentially take over the functions of government. This was easy, as the die was cast when the Republicans came back to power with the 2000 "election" of Bush. These elite, wealthy special interests are essentially the constituency of the Republican party (though the Democratic Party does not escape all blame here either). With the reigns of power in hand, or at least in the hands of their surrogates, corporations can then re-write regulatory law and weaken the oversight and enforcement functions of the government. In the context of the financial sector, this gave banks and investment firms carte blanche to freewheel and make a killing, selling "derivatives" and bundled, mortgage-backed securities, while overexposing themselves to substantial debts from an ocean of bad loans in the process. Then, when the bill finally comes due and the pyramid scheme collapses, that same corporate-run government that initially rigged the game, allowing and enabling the plunder, provides billions and billions of tax-payer dollars to bail out those poor ailing corporations. It's a perfect confidence racket, and every tax-paying citizen is a chump with the word "sucker" written right across their forehead. Not just you, your young children will be saddled with this debt for years to come. These hucksters have mortgaged our kids futures to enrich their already rich constituents. Almost enough to make one boiling mad, eh?
And all this is brought to you by that very same Republican Party that loves to talk about free markets, small government, personal responsibility and the wonders of unfettered Capitalism, the same Republican Party that becomes apoplectic when anyone even breathes the words liberal, socialism or, god forbid, welfare. Of course all this Republican talk of free markets etc. is a steaming pile of guano, and maybe after being fleeced for eight years by Bush and Co. enough Republican-voting "suckers" out there will finally get the message? Republicans love big government, especially the kind that is doling out huge sums of cash to their constituents. They love free markets for the other guy, but hate them if it means they would have to compete fairly. And personal responsibility? Republicans are NEVER responsible, that's also for the other guy. In fact, when you're a Republican it's always the other guys fault. Make no mistake, this Republican administration is practicing rampant socialism for all its corporate constituents. Forget about welfare queens, Bush, McCain, and all their Republican supporters are the welfare kings, the kings of corporate welfare. We let them stay in power at our own peril.
Friday, September 5, 2008
Mendacious Maverick
It's pretty obvious that national political conventions have become little more than highly staged media events, designed to, in the words of George W. Bush, "catapult the propaganda." While this is now largely true of both major political parties, the recently concluded Republican convention has clearly broken new ground in terms of outright deception, Orwellian abuse of language and the overall debasement of our political culture. Indeed, it was as if, protected by some kind of force field, the Excel Center in Minneapolis became a kind of twilight zone, with no memory, impervious to history and fact, a virtual tabula rasa on which the Republicans could hope to re-write the failed legacy of eight years of disastrous rule. Nowhere was this more evident than in the remarks from John McCain on accepting the presidential nomination of his traitorous Party.
Since it would take an epic tome to document all the dissembling and deception evident in McCain's speech, let's just hit some of the major themes and highlights and see how they hold up to some reality-based thinking. Perhaps the most astounding claims from McCain revolve around the notion that the Republican ticket represents the agent of change in the upcoming election. McCain's first change pedigree, he would have us believe, is his choice of a virtually unknown, largely inexperienced, right-wing, neophyte governor, none other than Alaskan governor Sarah Palin. As McCain boasted, "I'm very proud to have introduced our next vice president to the country. But I can't wait until I introduce her to Washington. And let me offer an advance warning to the old, big-spending, do-nothing, me-first, country-second Washington crowd: Change is coming." But wait, who exactly are those old, big-spending, country-second Washington hacks? If you're thinking they are exactly the same Party that was nominating McCain, then you'd be right, and McCain was and has been a major player in this me-first crowd for the past eight years. McCain would have you believe that he and his Party, the authors of eight years of perfidy, are the ones to "clean up the mess" in Washington. If you are willing to swallow that pile of bull, then I know a bridge for sale, cheap. The only truth here in McCain's statement is that there really is a mess in Washington, but he (and his Party) is the mess! The contradictions in McCain's message were succinctly highlighted by The Nation's John Nichols, who pointed out, "Even as he (McCain) was pledging to 'change the way government does almost everything,' the senator from Arizona announced his commitment to much, much more of the same."
McCain's next big theme was of course "defense" (actually, offense might be a more apt description). McCain boasted about his supposed key part in authoring and implementing the so-called "surge" in Iraq, and further boasted that, "Thanks to the leadership of a brilliant general, David Petraeus, and the brave men and women he has the honor to command, that strategy succeeded and rescued us from a defeat that would have demoralized our military, risked a wider war and threatened the security of all Americans." The notion that "the surge" rescued us from a defeat in Iraq is fanciful, as Tom Engelhardt has pointed out. It is an indication of the depths to which the Republican Party has sunk for its present leader to brand an unnecessary, immoral, illegal and devastating war, that has killed hundreds of thousands of people and laid waste to an entire country, a success, indeed, it is an obscene characterization. Also, McCain is apparently unaware that many in our military are already demoralized by this war, as this short video from the Guardian's Sean Smith demonstrates, and that it is the Iraq war itself, and American military adventurism, that threatens wider war and the security of Americans. By any measure; moral, economic, political, the Iraq war has been nothing less than catastrophic. To suggest continuing it to some undefined, unattainable "victory" is nothing less than insanity.
McCain, however, doesn't see fit to stop with Iraq, he further brandishes the saber at both Russia and, of course, Iran, a favorite Republican "whipping boy." But McCain really starts to lose it when he attempts to tongue-lash Russia for its "invasion" of Georgia and, in his words, "reassembling the Russian Empire." He then further castigates Moscow, arguing that, "we can't turn a blind eye to aggression and international lawlessness that threatens the peace and stability of the world and the security of the American people." The irony here is rich indeed, as McCain has been a cheer-leader for just such aggression and lawlessness with the US invasion and occupation of Iraq. However, one of the benefits of being a Republican is that it comes with an immunity to irony. If McCain had any legitimate security bonafides he might also consider the effect of unnecessary NATO expansionism in intimidating Russia toward a more belligerent posture with respect to its neighbors. Further, insisting on an unnecessary and dangerously destabilizing (and arguably useless) missile defense system in Eastern Europe, is also needlessly isolating Russia. McCain also contradicts his own CIA in perpetuating the favorite Bush administration canard that Iran is dangerously close to developing a nuclear weapon.
Clearly McCain doesn't know half as much about real national security issues as he likes to claim. As his own fellow traveler Pat Buchanan put it, if elected, "McCain will make Cheney look like Ghandi." Trust me, we can do without that.
Since it would take an epic tome to document all the dissembling and deception evident in McCain's speech, let's just hit some of the major themes and highlights and see how they hold up to some reality-based thinking. Perhaps the most astounding claims from McCain revolve around the notion that the Republican ticket represents the agent of change in the upcoming election. McCain's first change pedigree, he would have us believe, is his choice of a virtually unknown, largely inexperienced, right-wing, neophyte governor, none other than Alaskan governor Sarah Palin. As McCain boasted, "I'm very proud to have introduced our next vice president to the country. But I can't wait until I introduce her to Washington. And let me offer an advance warning to the old, big-spending, do-nothing, me-first, country-second Washington crowd: Change is coming." But wait, who exactly are those old, big-spending, country-second Washington hacks? If you're thinking they are exactly the same Party that was nominating McCain, then you'd be right, and McCain was and has been a major player in this me-first crowd for the past eight years. McCain would have you believe that he and his Party, the authors of eight years of perfidy, are the ones to "clean up the mess" in Washington. If you are willing to swallow that pile of bull, then I know a bridge for sale, cheap. The only truth here in McCain's statement is that there really is a mess in Washington, but he (and his Party) is the mess! The contradictions in McCain's message were succinctly highlighted by The Nation's John Nichols, who pointed out, "Even as he (McCain) was pledging to 'change the way government does almost everything,' the senator from Arizona announced his commitment to much, much more of the same."
McCain's next big theme was of course "defense" (actually, offense might be a more apt description). McCain boasted about his supposed key part in authoring and implementing the so-called "surge" in Iraq, and further boasted that, "Thanks to the leadership of a brilliant general, David Petraeus, and the brave men and women he has the honor to command, that strategy succeeded and rescued us from a defeat that would have demoralized our military, risked a wider war and threatened the security of all Americans." The notion that "the surge" rescued us from a defeat in Iraq is fanciful, as Tom Engelhardt has pointed out. It is an indication of the depths to which the Republican Party has sunk for its present leader to brand an unnecessary, immoral, illegal and devastating war, that has killed hundreds of thousands of people and laid waste to an entire country, a success, indeed, it is an obscene characterization. Also, McCain is apparently unaware that many in our military are already demoralized by this war, as this short video from the Guardian's Sean Smith demonstrates, and that it is the Iraq war itself, and American military adventurism, that threatens wider war and the security of Americans. By any measure; moral, economic, political, the Iraq war has been nothing less than catastrophic. To suggest continuing it to some undefined, unattainable "victory" is nothing less than insanity.
McCain, however, doesn't see fit to stop with Iraq, he further brandishes the saber at both Russia and, of course, Iran, a favorite Republican "whipping boy." But McCain really starts to lose it when he attempts to tongue-lash Russia for its "invasion" of Georgia and, in his words, "reassembling the Russian Empire." He then further castigates Moscow, arguing that, "we can't turn a blind eye to aggression and international lawlessness that threatens the peace and stability of the world and the security of the American people." The irony here is rich indeed, as McCain has been a cheer-leader for just such aggression and lawlessness with the US invasion and occupation of Iraq. However, one of the benefits of being a Republican is that it comes with an immunity to irony. If McCain had any legitimate security bonafides he might also consider the effect of unnecessary NATO expansionism in intimidating Russia toward a more belligerent posture with respect to its neighbors. Further, insisting on an unnecessary and dangerously destabilizing (and arguably useless) missile defense system in Eastern Europe, is also needlessly isolating Russia. McCain also contradicts his own CIA in perpetuating the favorite Bush administration canard that Iran is dangerously close to developing a nuclear weapon.
Clearly McCain doesn't know half as much about real national security issues as he likes to claim. As his own fellow traveler Pat Buchanan put it, if elected, "McCain will make Cheney look like Ghandi." Trust me, we can do without that.
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