Category Archives: Wall Street

Climbing Aboard the Hillary Train

20 Saturday Feb 2016

Posted by in Bernie Sanders, Democrats, Election 2016, health care, Hillary Clinton, Obama, Politics, Wall Street

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I have an admission to make. It isn’t the popular or trendy one (but if you took a look in my closet you would see these are not words that affect my decisions) and it will almost certainly deny me a seat at the cool kid’s table in the cafeteria, but here goes.

Hi, my name is Craig and I’m a Hillary Clinton supporter.

There, I said it. Whew! This was not an easy destination for me. In 2008 I was the furthest thing you could get from a Clintonite. But times change, circumstances change, this isn’t 2008, and despite what the ardent Sandernistas would have us believe, Bernie Sanders ain’t no Barack Obama. And if my support for Hillary makes me a shill for corporations, a tool of Wall Street, a supporter of the oligarchy, a defender of The Establishment, and a lackey for the 1%, so be it. I’ve been called worse. What I do support and defend is reality, arithmetic, facts, and truth. However un-revolutionary that may be.

Unfortunately, I bear a few burdens and carry more than a few battle scars and subsequent lessons learned from this long, strange, trip we call life that lands me in the Clinton camp this time around. In no particular order:

There ain’t no free lunch, and anybody who tells me there is gets a great big ol’ sideways look and an “Unh huh, what’s the catch?” from me. It sounds good to an idealistic, innocent twenty-something—it would have to me many moons ago when I was that age and a babe in the woods of life. Not so much anymore. Everything costs something. And ‘somebody else will pay for it’ smells like 8-day-old road kill. Along this line, simple solutions get a wary eye from me, too. We have problems to be dealt with in this country, for sure. The undue influence of money in politics, access to health care, income inequality, the cost of a college education, to name a few. These are complex issues with many moving parts and the answers aren’t as easy as overturn Citizen’s United, Medicare for All, break up the banks, tax the rich, and free tuition. The fixes also aren’t quick. They will take time and commitment, not just a momentary Revolution!

I have a deep admiration and respect for President Obama. What this man has accomplished in the face of political adversity and opposition has been nothing short of remarkable. That opposition has come from both his enemies and his supposed friends, by the way. From the right because…well, just because that’s what they do, and from the left because of a good case of unrealistic expectations and unicorn hunting. As Democrats are wont to do, they show up for the presidential election and then check out. ‘OK, we elected you, now wave your magic wand and go do everything you promised. Mid-terms? What’s that? We’ll see you in 4 years.’ In spite of that, the list of Obama’s accomplishments is looooooooong. Saving the economy, health care reform, saving the auto industry…..it would take too much space for the entire roll call.

Now if my 2 choices to succeed Obama are one who embraces his accomplishments and his legacy, and promises to build on the foundation he has laid, or one who seldom misses an opportunity to take a shot at Obama, who called for Obama to be primaried in 2012, and who wants to risk tossing away 8 years of progress for a wish list of half-baked, pie-in -the-sky foolishness, that choice would be a no-brainer in my book.

I also carry the burden of having a pretty good civics education in my younger days, and a pretty good knowledge of how politics works from a few decades of observing and participating in the process. Promise all you want, what can you get done? And getting things done in our system requires the ability to form consensus and reach common ground with friend and foe alike. Which generally means first and foremost being a member of, and having a solid base of support in, one of one of the 2 major parties. Hillary Clinton is a Democrat, has been a Democrat, has worked with Democrats currently in the Congress, and has the confidence of her fellow Democrats in her ability to not only work with them but with Republicans as well. She knows from experience how the process works because as First Lady she watched her husband get things done despite a Republican Congress, and she was a Cabinet member when President Obama got things done despite a Republican Congress. Hillary also cares about, and has a proven commitment to, Democratic candidates other than herself. So far she has raised over $18 million for the DNC to assist in the down ballot races. Bernie? Zero.

Bernie Sanders never wanted to be affiliated with the Democratic Party until he decided to run for president. Who are the people in the Senate he works with? Here’s a little barometer. Bernie’s 3 big ideas are Medicare for All, free college tuition, and a tax on financial transactions which will (allegedly) cover the cost of not only tuition but his trillion-dollar infrastructure plan as well. He has introduced legislation in the Senate over the last 3 years dealing with all three of these issues. So far those three pieces of legislation have a combined total of one co-sponsor. One. Add that to the number of Sanders’ colleagues in the Senate who have endorsed his run for the nomination and you get—-still one.

I also know this about the average American voter. Socialist Democrat ain’t gonna play in Peoria. Try and explain it the Sanders people can do all they want, the American voter, the vast majority who aren’t political junkies and who begin to pay attention sometime after Labor Day, will hear “socialist” and no further. The Republican nominee and the GOP attack machine will beat that drum from nomination ‘til November and have Americans convinced that Bernie Sanders is a cross between Marx and Mao. What also won’t sell is higher taxes. The last presidential candidate to proudly run on that promise was a guy named Mondale. I believe he carried 1 state in the election of 1984. Want some more buzz words that the average voter doesn’t give two flying figs about? The Establishment, the 1%, Wall Street, oligarchy. These all mean something to political wonks and those of us who follow this stuff daily. The great majority, the people who ultimately decide the outcome of presidential elections…Do. Not. Care.

I also suffer from a working knowledge of arithmetic. Whether on taxes, health care, college tuition, infrastructure, or any other plank of the Sanders platform, the numbers just flat don’t add up. Across the board it is nothing more than the left’s version of voodoo economics. No different than ‘cutting taxes will bring in more revenue, create jobs, and spur economic growth for everyone’, aka trickle-down. We all know how that worked out. Just because the snake oil is being peddled by a salesman on the left instead of the right doesn’t make it any less snake oil.

Age and maturity have also tempered the need for everything to be exciting. “Single payer” gets the adrenaline pumping more than incrementally improving the ACA, “break up the banks” is more sexy than improving Dodd-Frank, and “free college tuition” has much more eye and ear appeal than making college more affordable and reducing student debt. Some have described what Hillary Clinton is proposing as boring and unambitious. One person’s boring and unambitious is another person’s real and achievable. I’ll take 70% of something over 100% of nothing six days a week and twice on Sunday.

Sometimes things just work out right. Hillary Clinton wasn’t meant to be the president to precede Barack Obama. After the Bush years Obama was the right person for the job. The country needed a major shift of historic proportions and we got it. However, Hillary is exactly the right person to be the president who succeeds Obama. The right policies, the right temperament, and a firm grip on reality and what is achievable under the circumstances. We don’t need no stinkin’ revolution.

You Say You Want a Revolution…

31 Sunday Jan 2016

Posted by in Bernie Sanders, Campaign Financing, Corporations, Democrats, Election 2016, financial regulation, health care, Hillary Clinton, Obama administration, Politics, Supreme Court, Wall Street

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…well you know, we don’t need one.
Let me get his out of the way first. I could not possibly care less about who gets the Republican nomination for president. Doesn’t matter one iota to me, I ain’t voting for any of them. No way, no how. I do, however, care who gets the Democratic nomination. Very much. Much has been gained during the Obama administration, naysayers on the left notwithstanding, and much stands to be lost should Democrats nominate the wrong person. The wrong person is Bernie Sanders.

I suppose that by the time one is pushing 60 years of life on this thing we call Earth, one should find very little at which to be surprised. One would be wrong. I find myself surprised at the intelligent, pragmatic, and otherwise generally clear-thinking and practical people who have been and continue to be taken in by the so-called Bernie Sanders revolution.

This isn’t original (read it somewhere but can’t remember where, another consequence of those nearly 60 years) but I wholeheartedly agree with it. The 2016 election isn’t about changing the guard, it’s about guarding the change. We changed the guard in 2008. After 8 years of the utter disaster that was Bush/Cheney, the American people were ready for a new direction–a completely different direction–we got that with the historic election of Barack Obama. Now we need a president who can guard the change. Who can first and foremost protect what has been accomplished and, where possible, make some incremental improvements. That isn’t nearly as exciting and sexy as “revolution” but I’ll take it 7 days a week and twice on Sunday.

I suppose the appeal of the revolution is that it sounds so good and so simple. Medicare For All, Break Up the Banks, Overturn Citizens United. Yeah buddy, let’s do it. But drill down a little bit and it isn’t quite that good or that simple. Yes, the cost of health care is still a problem, the power of Wall Street is as well, and the influence of money on political campaigns needs to be addressed. But all these are complex and intricate issues which have reached the point they are now over years and even decades. They won’t be fixed with simple slogans and 8 page plans that don’t take into account the ramifications that would ensue should they be enacted.

Medicare For All. Does anybody actually believe that the health care needs of a family of four can be covered for $460 a year and paid for by nothing but a measly 2% increase in income taxes? Doesn’t pass my smell test. The state of Vermont found that out with their attempt to implement single-payer. When pencil met paper the result was closer to a 20 percent tax hike and a doubling of state expenditures.

Abolish private health insurance? What about the millions of Americans who make their living working for them? The private insurers aren’t just the few fat cat CEOs who sit at the top receiving exorbitant compensation. There are millions of Americans who work for not only those companies directly but whose jobs are dependant on their existence. Claims, billing, etc. What happens to them if private health insurance goes away? Does the Sanders plan lay out what happens to them should the “revolution” hit health care, and what would be the effects on the economy as a whole should private health insurance be outlawed? Nope.

The way forward is not to scrap the ACA after only 5 years, but to build on it. Social Security, Medicare, Medicaid, none of these were perfect originally, neither is the ACA. But it’s damn sure better than what we had before, and in its infancy and with all its shortcomings has helped millions of Americans. To scrap it for a hastily concocted and not well thought out alternative would be foolish.

Break Up The Big Banks. Okay, then what?

“For example, to break up the big banks sounds good and well but what happens to the customers of those banks that rely on them for their savings accounts? What about small businesses that rely on those banks for loans? What about homeowners who pay a mortgage through the bank? Are all these accounts then shifted toward community banks? If so, which ones? What if this new bank is far away from someone’s home or business?”

And again, what is the effect on the economy of the break up and the loss of jobs sure to follow? As with the private insurers, these institutions are a significant portion of our economy and encompass more than just the guys at the top who get all the headlines. Lots of jobs for people not named Jamie Dimon or Lloyd Blankfein depend on Chase, Bank of America, Citi, et al. What happens to those people?

No, we don’t need to take that risk. Dodd-Frank, despite all its imperfections, is doing its job. Could it be stronger? Absolutely. But gradually and incrementally, as boring as that is, is the only way to proceed, both practically and politically.

Overturn Citizens United. This is a recording, it ain’t that simple. The Supreme Court can’t just take it upon themselves to overturn a standing decision. A case must be brought, in almost every situation, after having gone through years in lower courts. This whole “money is speech” and “corporations are people” mess got started with the Buckley v Valeo decision. In 1976. The rotten fruit of that decision became Citizens United. In 2010. For those keeping score, that’s 34 years. Changing the system will take time and a Supreme Court amenable to hearing and reviewing cases brought before it. We don’t have that now, revolution notwithstanding.

Just to be really blunt, Sanders can’t win in November. I know his supporters like to claim that he polls better against Republican candidates than does Hillary Clinton. Two things about that. One, January polls are about as predictive of November election results as Tarot cards and tea leaves. Two, should Sanders be nominated, and once Republicans settle on a nominee and turn all their blazing guns on Sanders, he will be destroyed by months of negative and yet more negative ads. He will go down and take a lot of people and a lot of progress with him in the process.

We can’t afford to let that happen. Change is hard, change takes time, and nobody waves a magic wand. The way forward is to build on the solid foundation laid by what will be the 8 years of President Obama. Given the two choice facing Democratic primary voters (sorry Martin, but it’s true) Hillary Clinton is the right person for that job.

Membership Has Its Privileges

28 Wednesday Mar 2012

Posted by in Congress, Goldman Sachs, too big to fail, Wall Street

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As they say in the American Express commercials, membership has its privileges. Membership in the Big Club is no different. It allows you to do things like ignore six subpoenas from the Feds:

“U.S. securities regulators accused Wells Fargo & Co on Friday of repeatedly ignoring its subpoenas for documents in connection with a probe into the bank’s $60 billion sale of mortgage-backed securities.

The Securities and Exchange Commission’s filing in a San Francisco federal court seeks to compel the fourth largest U.S. bank to hand over documents. The SEC said it has issued several subpoenas since September…According to the SEC’s Friday filing against Wells Fargo, the agency has issued six subpoenas to Wells Fargo since September 30.”

Try that one time and see what happens to you. Membership also allows you to lie to Congress without any fear of repercussions:

“Jon S. Corzine, MF Global’s chief executive officer [also former CEO of Goldman Sachs as well as New Jersey’s former governor and senator], gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co., according to a memo written by congressional investigators.

Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says.

[..]

Corzine, 65, in testimony in front of the House panel in December, said he did not order any improper transfer of customer funds. Corzine also testified that he never intended a misuse of customer funds at MF Global, and that he doesn’t know where client funds went.

“I never gave any instruction to misuse customer funds, I never intended anyone at MF Global to misuse customer funds and I don’t believe that anything I said could reasonably have been interpreted as an instruction to misuse customer funds,” Corzine told lawmakers in December.”

Anybody think Corzine will be held accountable? If you do I’ve got a bridge for sale. Cheap.

It’s Not About JOBS, It’s About FRAUD

24 Saturday Mar 2012

Posted by in Congress, financial regulation, Wall Street

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If there’s one thing you can take to the bank, so to speak, in these times of political polarization in Washington it’s this-any bill that passes the House and Senate with margins like 390-23 and 73-26 isn’t, in the words of John Nance Garner, worth a warm bucket of spit. The recent passage of the so-called JOBS Act is no exception. The FRAUD Act would have been a more appropriate title. Facilitating Rampant And Unchecked Deceit.

(Just as an aside, giving bad legislation names with catchy acronyms like JOBS Act is a little trick the crooks in Congress have also learned. See PATRIOT Act.)

Under the pretense of being about making it easier for small businesses and startup companies to access capital, the JOBS Act is just another round of Wall Street deregulation that was such a rousing success leading up to the collapse of 2008. It weakens investor protection, eases SEC oversight and transparency rules, and guts much of Sarbanes-Oxley, which was passed in 2002 to prevent future Enrons from happening. Happy days are here again!

Here’s what Sen. Bernie Sanders had to say about it:

“At best, this bill could make it easier for con artists to defraud seniors out of their entire life savings by convincing them to invest in worthless companies. At worst, this bill has the potential to create the next Enron or Arthur Andersen scandal or an even worse financial crisis.”

Bloomberg has more. Lynn Turner, former SEC accountant:

“It won’t create jobs, but it will simplify fraud. This would be better known as the bucket-shop and penny-stock fraud reauthorization act of 2012,” he said, referring to practices banned under securities law.”

Barbara Roper, director of investor protection for the Consumer Federation of America:

“You don’t increase jobs growth by rolling back regulatory protections, and it’s frankly bewildering that the Democrats have been so willing to buy into the traditional Republican argument.”

Representative John P. Sarbanes of Maryland, one of 23 Democratic opponents in the House, warned colleagues in a letter that the bill could lead to an “Enron-Type fraud,” invoking the accounting scandal that led Congress to enact the law named for his father, former Senator Paul Sarbanes.

Bill Black:

“The JOBS Act is something only a financial scavenger could love. It will create a fraud-friendly and fraud-enhancing environment. It will add to the unprecedented level of financial fraud by our most elite CEOS that has devastated the U.S. and European economies and cost over 20 million people their jobs.”

Sen. Jack Reed (D-RI) proposed an amendment which would have limited corporations from making an end-run around SEC regulations, but the cowards in the Senate wouldn’t even go on the record against that, killing it with a voice vote.

Oh by the way, that amendment was opposed by the Chamber of Commerce and the American Bankers Association.

GFY, S&P

27 Wednesday Jul 2011

Posted by in economy, Financial Crisis, Wall Street

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As the extortionists at Standard and Poor’s threaten a credit rating downgrade, not just if the debt ceiling isn’t raised but if the deficit isn’t cut by $4 trillion, Robert Reich points out that if the crooks at S& P had done their effin’ jobs the deficit and debt that they demand be cut wouldn’t be where it is today:

“Who is Standard & Poor’s to tell America how much debt it has to shed in order to keep its credit rating? Standard & Poor’s didn’t exactly distinguish itself prior to Wall Street’s financial meltdown in 2007. Until the eve of the collapse it gave triple-A ratings to some of the Street’s riskiest packages of mortgage-backed securities and collateralized debt obligations.”

A practice from which S&P profited handsomely:

“S&P’s net annual revenues from ratings nearly doubled from $517 million in 2002, to $1.16 billion in 2007.”

And what happened to those securities S&P stamped AAA?

“…90% of the subprime-backed mortgage securities S&P and its competitors rated AAA in 2006-2007 – which means they’re as sound as Treasury notes – were later downgraded to junk bond status.”

Back to Reich:

“Standard & Poor’s (along with Moody’s and Fitch) bear much of the responsibility for what happened next. Had they done their job and warned investors how much risk Wall Street was taking on, the housing and debt bubbles wouldn’t have become so large – and their bursts wouldn’t have brought down much of the economy.

Had Standard & Poor’s done its job, you and I and other taxpayers wouldn’t have had to bail out Wall Street; millions of Americans would now be working now instead of collecting unemployment insurance; the government wouldn’t have had to inject the economy with a massive stimulus to save millions of other jobs; and far more tax revenue would now be pouring into the Treasury from individuals and businesses doing better than they are now.

In other words, had Standard & Poor’s done its job, today’s budget deficit would be far smaller.

And where was Standard & Poor’s…during the George W. Bush administration – when W. turned a $5 trillion budget surplus bequeathed to him by Bill Clinton into a gaping deficit? Standard & Poor didn’t object to Bush’s giant tax cuts for the wealthy. Nor did it raise a warning about his huge Medicare drug benefit…or his decision to fight two expensive wars without paying for them.

Add Bush’s spending splurge and his tax cuts to the expenses brought on by Wall Street’s near collapse – and today’s budget deficit would be tiny.

Put another way: If Standard & Poor’s had been doing the job it was supposed to be doing between 2000 and 2008, the federal budget wouldn’t be in a crisis — and Standard & Poor’s wouldn’t be threatening the United States with a downgrade if we didn’t come up with a credible plan for lopping $4 trillion off it.”  

So why in the hell is anybody listening to what Standard and Poor’s has to say? If we had a Justice Department that was actually interested in justice, the S&P analysts would be behind bars instead of issuing threats.

All the Bad News That Fits

23 Saturday Jul 2011

Posted by in Afghanistan, budget, Congress, economy, Iraq, Medicaid, Medicare, Obama, Politics, Social Security, Unemployment, Wall Street

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“I met a girl who sang the blues, and I asked her for some happy news. She just smiled and turned away.”

In the latest episode of “As the Debt Ceiling Turns”; Boehner walks, Obama has a hissy fit, and Pelosi throws yet another plan into the mix:

“House Minority Leader Nancy Pelosi acknowledged Friday that Democrats may reluctantly accept a last-minute compromise to avoid a default that involves up to $2.5 trillion in spending cuts — without agreed-upon new tax revenues — if Medicare, Medicaid, and Social Security are protected from the debt limit brinksmanship.”

Yes, by all means, let’s cut spending. Never mind this:

“Companies are laying off employees at a level not seen in nearly a year, hobbling the job market and intensifying fears about the pace of the economic recovery.

Cisco Systems Inc., Lockheed Martin Corp. and troubled bookstore chain Borders Group Inc. are among those that have recently announced hefty cuts, while recent government numbers underscore how companies have shifted toward cutting jobs.

The increase in layoffs is a key reason why the U.S. recorded an average of only 21,500 new jobs over the past two months, far below the level needed to bring down unemployment, which now stands at 9.2%.”

Or this:

“Initial weekly unemployment claims increased to 418,000. The 4 week moving average is 421,250. A weekly average above 400,000 does not indicate job growth and we now have a pattern of perpetual disaster for U.S. citizens trying to earn a living.”

About that default deadline, is it August 2, August 10, or August 15? Nobody seems to know for sure.

The Money Party has some questions and answers on Obama’s handling of the budget never let a good crisis go to waste. Here’s just one:

“Question:  Why did President Obama put Social Security and Medicare on the table in the budget negotiations when 80% of the people oppose cuts to these programs?

Answer:  The president is not in office to represent those people.  He was selected, funded and carried over the finish line by corporate America.  Look at the appointment of Wall Streeter Timothy Geithner, the bailouts, and the failure to prosecute any of the crooks who caused the current recession. He’s serving the people who put him in office.  Those people don’t need Social Security and Medicare.”

Not only serving the people who put him in office, but serving those who he is depending on to keep him there:

“Among big fundraisers, Obama has drawn close to a third of his money from people in the finance industry, up from 20% during his 2008 campaign, according to an analysis by the Center for Responsive Politics.

The amount raised so far is more than two-thirds what Wall Street elites helped Obama raise in his entire 2008 campaign. And it is enough to make the finance world the single largest source of big-ticket donations for Obama.”

While we cut the social safety net out from under our most vulnerable at home, billions are going unaccounted for in Afghanistan:

“SIGAR [Special Inspector General for Afghanistan Reconstruction] found that U.S. agencies have limited visibility over U.S. cash that enters the Afghan economy — leaving it vulnerable to fraud and diversion to the insurgency…”SIGAR auditors found that U.S. agencies have not done all they can to safeguard U.S. funds, and the Afghan government has not provided the cooperation needed to build a strong, secure financial system.”

Also on the Endless War front, the State Department is telling the Special Inspector General in Iraq to mind his own business when it comes to State’s mercenary army in that country:

“By January 2012, the State Department will do something it’s never done before: command a mercenary army the size of a heavy combat brigade. That’s the plan to provide security for its diplomats in Iraq once the U.S. military withdraws. And no one outside State knows anything more, as the department has gone to war with its independent government watchdog to keep its plan a secret.

Stuart Bowen, the Special Inspector General for Iraq Reconstruction (SIGIR), is essentially in the dark about one of the most complex and dangerous endeavors the State Department has ever undertaken, one with huge implications for the future of the United States in Iraq. “Our audit of the program is making no progress,” Bowen tells Danger Room.

For months, Bowen’s team has tried to get basic information out of the State Department about how it will command its assembled army of about 5,500 private security contractors. How many State contracting officials will oversee how many hired guns? What are the rules of engagement for the guards? What’s the system for reporting a security danger, and for directing the guards’ response?

And for months, the State Department’s management chief, former Ambassador Patrick Kennedy, has given Bowen a clear response: That’s not your jurisdiction. You just deal with reconstruction, not security. Never mind that Bowen has audited over $1.2 billion worth of security contracts over seven years.”

To be continued…unfortunately.

Greenwald: Obama Gutting Core Democratic Principles

22 Friday Jul 2011

Posted by in Democrats, drone strikes, George W. Bush, Libya, Medicare, Obama, Social Security, Wall Street

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Yet another gem from Glenn Greenwald in today’s Guardian:

“[I]n 2009, clear signs emerged that President Obama was eager to achieve what his right-predecessor could not: cut social security. Before he was even inaugurated, Obama echoed the right’s manipulative rhetorical tactic: that (along with Medicare) the program was in crisis and producing “red ink as far as the eye can see.” President-elect Obama thus vowed that these crown jewels of his party since the New Deal would be, as Politico reported, a “central part” of his efforts to reduce the deficit.

The next month, his top economic adviser, the Wall Street-friendly Larry Summers, also vowed specific benefit cuts to Time magazine. He then stacked his “deficit commission” with long-time advocates of social security cuts.

Many progressives, ebullient over the election of a Democratic president, chose to ignore these preliminary signs, unwilling to believe that their own party’s leader was as devoted as he claimed to attacking the social safety net. But some were more realistic. The popular liberal blogger and economist Duncan “Atrios” Black, who was one of the leaders of the campaign against Bush’s privatization scheme, vowed in response to these early reports:

The left … will create an epic 360-degree shitstorm if Obama and the Dems decide that cutting social security benefits is a good idea.

Fast forward to 2011: it is now beyond dispute that President Obama not only favours, but is the leading force in Washington pushing for, serious benefit cuts to both social security and Medicare.

[…]

The same Democratic president who supported the transfer of $700bn to bail out Wall Street banks, who earlier this year signed an extension of Bush’s massive tax cuts for the wealthy, and who has escalated America’s bankruptcy-inducing posture of Endless War, is now trying to reduce the debt by cutting benefits for America’s most vulnerable – at the exact time that economic insecurity and income inequality are at all-time highs.

Where is the “epic shitstorm” from the left which Black predicted? With a few exceptions – the liberal blog FiredogLake has assembled 50,000 Obama supporters vowing to withhold re-election support if he follows through, and a few other groups have begun organizing as well – it’s nowhere to be found.

Therein lies one of the most enduring attributes of Obama’s legacy: in many crucial areas, he has done more to subvert and weaken the left’s political agenda than a GOP president could have dreamed of achieving. So potent, so overarching, are tribal loyalties in American politics that partisans will support, or at least tolerate, any and all policies their party’s leader endorses – even if those policies are ones they long claimed to loathe.

[…]

He has gone further than his predecessor by waging an unprecedented war on whistleblowers, seizing the power to assassinate U.S. citizens without due process far from any battlefield, massively escalating drone attacks in multiple nations, and asserting the authority to unilaterally prosecute a war (in Libya) even in defiance of a Congressional vote against authorizing the war.

And now he is devoting all of his presidential power to cutting the entitlement programs that have been the defining hallmark of the Democratic party since Franklin Roosevelt’s New Deal. The silence from progressive partisans is deafening – and depressing, though sadly predictable.

[…]

Obama is now on the verge of injecting what until recently was the politically toxic and unattainable dream of Wall Street and the American right – attacks on the nation’s social safety net – into the heart and soul of the Democratic party’s platform. Those progressives who are guided more by party loyalty than actual belief will seamlessly transform from virulent opponents of such cuts into their primary defenders.

And thus will Obama succeed – yet again – in gutting not only core Democratic policies, but also the identity and power of the American Left.”

DOJ Prepares Subpoenas for News Corp.

22 Friday Jul 2011

Posted by in Justice Department, Wall Street

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Wow, that didn’t take long:

“The U.S. Justice Department is preparing subpoenas as part of preliminary investigations into News Corp. relating to alleged foreign bribery and alleged hacking of voicemail of Sept. 11 victims, according to a government official.”

Would have been nice to see this kind of zeal and this sense of urgency and immediacy when it came to taking on the banksters.

Priorities.

Moody’s Threatens Credit Rating Downgrade

14 Thursday Jul 2011

Posted by in budget, economy, Wall Street

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Wasn’t it Moody’s who was handing out AAA ratings like candy on Halloween for Wall Street’s toxic MBS, CDO crap not too long ago?

“The “rising possibility” that the debt limit will not be raised by Aug. 2 has driven Moody’s Investors Service to put the nation’s triple-A credit rating on review for a downgrade.

In a statement, the credit-rating agency warned that the risk of a default on U.S. obligations, while low, had risen. A default would “fundamentally alter Moody’s assessment of the timeliness of future payments, and a AAA rating would likely no longer be appropriate,” Moody’s stated shortly after markets closed Wednesday.

The agency also warned that even if the debt limit was raised in time, the nation’s credit rating would retain a negative outlook if no “substantial and credible agreement” also was struck to reduce the deficit “beginning within the next few years.”

Forgive me if I question your credibility.

Why Is This So Damn Difficult?

09 Saturday Jul 2011

Posted by in Afghanistan, budget, economy, Iraq, Medicare, Obama, Politics, Social Security, Taxes, Unemployment, Wall Street

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This is so simple it’s ridiculous. The three major causes of the dramatic increases in debt and deficit are:

1) The Bush, now Obama, tax cuts.

2) The wars in Iraq and Afghanistan.

3) The financial collapse caused by Wall Street greed.

Ending the tax cuts just for those making over $250,000 will bring in $700 billion over 10 years. The wars cost about $140 billion a year. End both and we save $1.4 trillion over the same 10-year period. A financial transaction tax of just one quarter of one percent will result in $150 billion a year, $1.5 trillion over 10. There’s $3.6 trillion over 10 years, which is just about the same amount the debt ceiling dealers are talking about cutting spending. And we haven’t touched Social Security, Medicare, Medicaid, education, etc. Yet none of these three are even on the debt ceiling/spending cut/revenue increases negotiating table. Why?

The American Society of Civil Engineers estimates the cost of repairing our crumbling infrastructure to be $2.2 trillion over 5 years. Do you see where I’m going here? Take the money we’ve saved, not from cutting the safety net out from under our most vulnerable who had nothing to do with the debt explosion and who did not benefit from it, but from the root causes and from those who did.

The result is millions of Americans have jobs. They’re paying income taxes, Social Security taxes, Medicare taxes. They no longer need unemployment, food stamps, or other forms of government assistance. They’re buying stuff, which creates demand for stuff, which creates more jobs, which creates more demand for stuff. And so on, and so on, and so on. Why is this so damn difficult?

But what do we get from our “leaders?” Gobbledegook and gibberish. Like President Obama’s remarks yesterday after the release of the horrible job numbers. Things like streamlining the patent process, advancing more so-called free trade agreements (which costs jobs rather that create them) and this:

“[T]o put our economy on a stronger and sounder footing for the future, we’ve got to rein in our deficits and get the government to live within its means, while still making the investments that help put people to work right now and make us more competitive in the future.

The sooner we get this done, the sooner that the markets know that the debt limit ceiling will have been raised and that we have a serious plan to deal with our debt and deficit, the sooner that we give our businesses the certainty that they will need in order to make additional investments to grow and hire and will provide more confidence to the rest of the world as well..”

Beside the fact that this is straight of the Republican playbook for economic growth, it’s nonsense (but I’m being redundant). Live within our means while making investments? What the hell is that? Give businesses the certainty they need? Businesses don’t need certainty, they need customers. Customers create jobs, not the ever-elusive confidence unicorn. Why is this so damn difficult?

The president’s mouthpiece at the Council of Economic Advisers, Austan Goolsbe offered more of the same:

“Today’s report underscores the need for bipartisan action to help the private sector and the economy grow – such as measures to extend the payroll tax cut, pass the pending free trade agreements, and create an infrastructure bank to help put Americans back to work.  It also underscores the need for a balanced approach to deficit reduction that instills confidence and allows us to live within our means without shortchanging future growth.”

*Sigh* Can’t anybody here play this game?