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Ditto for the head of his NationalEconomicCoun cil. Although appointing LarrySumme rs might have been a bit of a stretch, despite his yeoman work in destroying financial regulation —thus enriching his old boss RobertRubi n and helping cause the Crash of 2008—McCai n could easily have found a JackKemp-l ike Republican “supply-si der” who would have duplicated Summers’ signal achievemen t of expanding the deficit to the highest level since 1950 (though perhaps with a slightly higher percentage of tax cuts than the Obama stimulus). The economy would have continued to sputter along, with growth rates and joblessnes s levels little different from today’s, and possibly even worse.
But McCain’s election would have produced a major political difference: It would have increased Democratic clout in the House and Senate.
McCain would probably have approved a failed troop surge in Afghanistan, engaged in worldwide extrajudic ial assassinat ion, destabiliz ed nuclear-ar med Pakistan, failed to bring Israel’s BenjaminNe tanyahu to the negotiatin g table, expanded prosecutio n of whistle-bl owers, sought to expand executive branch power, failed to close Guantanamo , failed to act on climate change, pushed both nuclear energy and opened new areas to domestic oil drilling, failed to reform the financial sector enough to prevent another financial catastroph e, supported an extension of the BushTaxCuts for the rich, presided over a growing divide between rich and poor, and failed to lower the jobless rate.
Nothing reveals the true state of American politics today more, however, than the fact that has undertaken all of these actions and, even more significantly, left the Democratic Party far weaker than it would have been had McCain been elected. Few issues are more important than seeing behind the screen of a myth-makin g mass media, and understand ing what this demonstrat es about how power in America really works—and what needs to be done to change it.
It also realizes a vision supported by progressives since Theodore Roosevelt in 1916 and establishe d or reestablis hed in Germany and Japan during our occupation s there.
In 1977, two Boeing 747s collided on an airstrip in the Canary Islands. According to accident investigators, those who survived the initial blast in one plane had time to escape before a fire consumed the wreckage. But eyewitness es reported that many remained in their seat looking perfectly content—as if nothing was wrong.
Not surprisingly, dozens of these dazed victims were burned to death, and the episode became a reminder of the so-called normalcy bias—a cognitive phenomenon whereby many who are faced with imminent disaster instantly convince themselves that everything is normal and that they don’t have to modify their behavior.
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There are two clever features of the deal, but neither look intended to benefit ordinary citizens. One is that the deal throws some funding at chronically cash stressed mortgage counselors . They are thus certain to voice approval of the pact. The other is (per the FT story) the deal’s “most favored nations clause” is designed to reduce the bargaining leverage of any AGs that go their own way. It means that any servicer will have the incentive to fight hard against giving any state a better deal because it will automagica lly trigger improved terms across the states that signed on to the Federal deal. But this may have interestin g perverse effects, since banks that refuse to settle with breakaway AGs will ultimately have damages awarded by a court. That means longer and most costly fights by the states, but in most cases, ultimately bigger awards (frankly, the fact set is so bad that all the state AGs need to do is focus on fairly conservati ve legal theories to have good odds of scoring big wins).
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[T]he bulk of the supposed settlement would come not in actual monies paid by the banks (the cash portion has been rumored at under $5 billion) but in credits given for mortgage modifications for principal modificati ons. There are numerous reasons why that stinks. The biggest is that servicers will be able to count modifying first mortgages that were securitize d toward the total. Since one of the cardinal rules of finance is to use other people’s money rather than your own, this provision virtually guarantees that investor-o wned mortgages will be the ones to be restructur ed.
Why is this a bad idea?
The banks are NOT required to write down the second mortgages that they have on their books. This reverses the contractual hierarchy that junior lien-holde rs take losses before senior lenders. So this deal amounts to a transfer from pension funds and other fixed income investors to the banks, at the Administra tion’s instigatio n.
Another reason the modification provision is poorly structured is that the banks are given a dollar target to hit. That means they will focus on modifying the biggest mortgages. So help will go to a comparativ ely small number of grossly overhoused borrowers, no doubt reinforcin g the “profligat e borrower” meme.
But those criticisms assume two other things: that the program is actually implemented.
The experience with past consent decrees in the mortgage space is that the servicers get a legal get out of jail free card, a release, and do not hold up their end of the deal. Similarly, we’ve seen bank executives swear in front of Congress in late 2010 that they had stopped robosigning, which turned out to be a brazen lie. So here, odds favor that servicers will pretty much do nothing except perhaps be given credit for mortgage modificati ons they would have made anyhow.
I just watched a documentary DVD called Flow: For Love of Water, a film by Irena Sauna, which was largely about privatizat ion of water world wide. It showed how those twin institutio ns of global villainy, The World Bank and the IMF, have driven the process.
One piece of dialogue struck me as telling, spoken by one of the privatizing executives : "We have to force them to pay to teach them that they have to pay so they'll learn to want to pay."
They apparently believe that those who can't pay are wholly to blame for their financially deficient condition and, being unable (and/or unwilling) to pay, they are unworthy of survival. Only people glad to pay can be allowed to continue to exist. They hold these beliefs with such a total unshakable well defended certitude that even if you take them and show them live and in person how terrible harm is being done through lack of access to potable water, they will scoff and reassert the correctnes s of their way of thinking. That, dear hearts, is the mentality we're up against. There is no chance people who are like that will see the light and change the error of their ways.
Somebody really wants this foreclosure fraud settlement to go through. So much so that California was offered a sum to participat e in the settlement sure to piss off the other 49 AGs across the country. Only California was guaranteed earmarked funds from the settlement . Earlier we heard they would get $8 billion out of the $25 billion pot, or 32% of the total (Californi a has roughly 10% of the population ). Now, Shahien Nasiripour says they were in line for $15 billion, or a whopping 60%.
"California, home to the largest US property market, spurned an offer of roughly $15bn in lower monthly mortgage payments and reduced loan balances for its residents in talks to settle allegation s of mortgage-r elated misdeeds by leading US banks.
Bank of America had guaranteed California borrowers would receive $8bn in mortgage aid, while Wells Fargo and JPMorgan Chase committed at least $5bn to the state’s distressed homeowners, according to people familiar with the matter, who declined to give exact figures.
California would have received more than half of about $25bn of aid that would be available to borrowers in a nationwide deal under discussion to settle allegations that banks illegally seized homes using faulty documentat ion.
Deal terms, sent to state attorneys-general late last week after nearly a year of talks between the banks and various states and federal agencies, did not include guaranteed minimums for any other states, people familiar with the matter said. Various state officials said they were unaware of the California offer."
I suppose this could be disinformation designed to anger the other AGs and pressure California ’s Kamala Harris to accept the deal when the terms are actually not as clear-cut. But this shows two things: one, how desperate federal regulators are to get California into the deal, and two, how inadequate the overall deal is, even to the state of which it’s tilted so far in favor.
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I often try to figure out ways to convince people that private prisons are not in the best interest of anyone but executives of private prison companies. There are plenty of others out there like myself, trying to work with elected officials and concerned citizens to convince our legislators that continuall y giving billions of dollars to an industry whose very survival depends on locking up an ever-incre asing segment of our population is morally reprehensi ble, and bad business to boot. But unfortunat ely, much of that activism seems for naught, as the anti-priva tization movement's resources and political relationsh ips pale in comparison to the influence built up by the privateers .
Take for example BroderickJohnson, lobbyist extraordin aire who was paid more than $1 million to lobby to get TARP passed on behalf of the major financial institutio ns that destroyed our economy. He's also worked for such socially conscious organizati ons as TalxCorp (which helps employers challenge unemployme nt claims), Comcast, and the GEO Group. Johnson also happens to be a senior adviser to Obama, whose immigratio n policies have been, if not an expansion, at least the continuati on of the compassion ate and sensible policies of his esteemed predecesso r.
So Obama's got a former GEO Group lobbyist working as a senior adviser. He also appointed a former employee of the GEO Group and CCA, Stacia Hylton, as director of the US Marshal's Service, a federal agency in control of millions of dollars worth of private prison contracts. So it should come as no surprise that the GEO Group was awarded a contract in excess of $235 million to house immigration detainees, despite decades of evidence proving the company can't operate a prison efficientl y and that it seems incapable of treating its wards with basic human decency.
Ditto for the head of his NationalEconomicCoun cil. Although appointing LarrySumme rs might have been a bit of a stretch, despite his yeoman work in destroying financial regulation —thus enriching his old boss RobertRubi n and helping cause the Crash of 2008—McCai n could easily have found a JackKemp-l ike Republican “supply-si der” who would have duplicated Summers’ signal achievemen t of expanding the deficit to the highest level since 1950 (though perhaps with a slightly higher percentage of tax cuts than the Obama stimulus). The economy would have continued to sputter along, with growth rates and joblessnes s levels little different from today’s, and possibly even worse.
But McCain’s election would have produced a major political difference: It would have increased Democratic clout in the House and Senate.
McCain would probably have approved a failed troop surge in Afghanistan, engaged in worldwide extrajudic ial assassinat ion, destabiliz ed nuclear-ar med Pakistan, failed to bring Israel’s BenjaminNe tanyahu to the negotiatin g table, expanded prosecutio n of whistle-bl owers, sought to expand executive branch power, failed to close Guantanamo , failed to act on climate change, pushed both nuclear energy and opened new areas to domestic oil drilling, failed to reform the financial sector enough to prevent another financial catastroph e, supported an extension of the BushTaxCuts for the rich, presided over a growing divide between rich and poor, and failed to lower the jobless rate.
Nothing reveals the true state of American politics today more, however, than the fact that has undertaken all of these actions and, even more significantly, left the Democratic Party far weaker than it would have been had McCain been elected. Few issues are more important than seeing behind the screen of a myth-makin g mass media, and understand ing what this demonstrat es about how power in America really works—and what needs to be done to change it.
This delay of ozone regulationKEEP READINGs is an even bigger deal if you consider the context. Brad Plumer has that story.
Basically, what happened is that the Bush Administration dragged its feet on new national ozone standards for years. Under the law, there must be a five-year review. EPA’s review of the science in 2006 showed that the current standards, set in 1997, were woefully inadequate . The Bush Administra tion countered with a new rule in 2008 that was well below the recommenda tion from EPA scientists .
And then…
"Groups such as the American Lung Association quickly filed a lawsuit to stop the Bush rules, which they claimed were too weak and would lead to thousands of unnecessar y deaths and cases of respirator y disease. However, when Obama came into office, the new EPA said it basically agreed with the critics and would issue revised rules by August 2010. At that point, the ALA agreed to hold off on its lawsuit. But August 2010 rolled around. Still no rules. Then October. Then November. Still nothing. Then the EPA said it wanted to go back and look at the science again, just to double-che ck. Sure enough, EPA’s scientific review board said that 60 to 70 parts per billion was the way to go. And EPA administra tor Lisa Jackson announced that the final rules would be more or less in line with the science [...]
So now, today, the White House announced that it’s not going to have any new rules. On a call with reporters, White House officials argued that it doesn’t make sense to put out new rules in 2011 when there’s going to be another scheduled review of the ozone science in 2013."
If you want something more radical, you want him to get a Congress that will work with him.
The horse is out of the barn and we should just let the radical right have its way. It's not like Obama and the gutless Dems are going to stop them.KEEP READING
It would be carnage for a few years, people eating other people (though that really only happens in the southern tier of states), old people dying (why are we so eager to keep them alive, anyway?) and cats and dogs living together...
Let it all come crashing down--but let's make sure to kill Social Security and Medicaid/Medicare. These Tea Partiers should be allowed to pay what the market will bear, right?
By the way, while our Tea-Party/Real Men (or whatever those guys who wouldn't pay taxes a few years ago are called) friends talk about how they'd like to keep more of their hard earned money and give less to the idiots who "gave us Vietnam and Iraq," perhaps they'd like to pick up the bill for the grading and paving of the road that leads from their home to their office--ca n't be what, more than $60K a year.
While they're at it, maybe they'd like to cut a check for the police and fire people they'd have to employ to protect their home and valuables from damage. If they could get one guy for another $30K, they'd be lucky. Oh, and then there's that water and waste service, if you've got that.
Really, just let these frickers get what they want.