Tag Archives: David Axelrod

Foreclosure Fraud Just the Tip of the Iceberg

12 Tuesday Oct 2010

Posted by in bailout, Congress, economy, Financial Crisis, financial reform, financial regulation, Foreclosures, Justice Department, Obama administration, special interests, too big to fail, Wall Street

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Dylan Ratigan, Ohio Secretary of State Jennifer Brunner, and Karl Denninger of The Market Ticker unravel foreclosure fraud:

To reiterate, the fraud in foreclosures that we’re seeing now is just the tip of the iceberg. The purpose is to try and cover up, and cover for, the fraud in the mortgage process all the way back to the origination of the mortgages, which were then packaged into securities and fraudulently sold to investors as AAA quality, a rating gained by paying off the ratings agencies. As our parents always told us, one lie requires another one to cover up the first one, which requires another lie to cover up the second one, and so on, and so on, and…….

In my opinion, that’s why the Senate tried to sneak through the legislation that President Obama vetoed—it would have given the big banks protection from liability in this entire mess. As an aside–again just my opinion– but the only reason the president vetoed the bill was because of the attention it received and the light that was shone on its alleged “unintended consequences” (and if you’ll buy that….) My cynical nature when it comes to politicians tells me that “sending the bill back for modifications” translates into, ‘We’ll try again when the heat’s off.’

It’s also why, according to David Axelrod, the hope in the White House is that “this moves rapidly and that this gets unwound very, very quickly.” And why the White House opposes a national moratorium on foreclosures. A moratorium would give investigators and especially some 40 states’ attorneys general time to delve back into fraud and deceit at every level of the process

As Mr. Denninger explained, the only remedy is to force the big banks to buy back the toxic securities that they sold to investors under false pretenses. They can’t do that, which means Chase, BofA, et al, are insolvent. Actually, they’re insolvent now but for the phony profits from peddling this garbage to unsuspecting investors.

There is a provision in the financial reform legislation for resolution authority, that is breaking up large financial institutions that pose a “systemic risk” to the entire economy. Will Congress use it or will they do what they have done in the past and bail out their Wall Street cronies and contributors—again. If Republicans take control of Congress will they hold true to their campaign rhetoric of “no more bailouts” or will they dance to the tune of their big donors on Wall Street?

We may soon find out.

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Axelrod in Wonderland

24 Friday Sep 2010

Posted by in financial reform, health care, Obama administration, Politics, special interests, too big to fail, Wall Street

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David Axelrod in yesterday’s Washington Post:

“Pundits will spend a lot of time predicting who will win in November. But more is at stake than the fate of Democrats or Republicans. What’s at stake is whether the powerful corporate special interests will go back to writing our laws or whether our democracy will remain where it belongs — in the hands of the American people.”

What color is the sky in the land where unicorns run free, Dave? “Go back?” They never left. Former insurance company lobbyists and executives wrote the lion’s share of health care “reform.” Your boss cut a backroom deal with the pharmaceutical industry to ensure their monopoly remained intact. Did the big banks get broken up by so-called financial reform? Hell no. Is too big to fail still around? Hell yes. Does the military-industrial complex still get the same blank check that they’ve always had? Absolutely.

FYI, Mr. Axelrod, we no longer have a democracy in America. The correct term is oligarchy.

Obama and Axelrod’s Mixed Messages

12 Monday Jul 2010

Posted by in Congress, Democrats, economy, Obama, Obama administration, Politics, Republicans

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To whom it may concern at the White House and the DNC:

If you want to lose the House and possibly the Senate in November, if you want to increase the possibility of the 2 most dreaded words in the English language—President Palin—becoming a reality in 2012, keep the lack of a cohesive message coming. And keep on waiting for the GOP to get on board.

First have President Obama come out on a Thursday with a speech focusing on job creation—saying how we can’t afford to give the keys back to the Republicans because they’re the ones whose policies “gave us the economic crisis” and drove the economy into the ditch. This is called firing up the base for the upcoming mid-term elections. (BTW, mid-term elections are all about turning out the base, and in case you haven’t noticed the Republican base is ready to vote today).

Then have David Axelrod go on This Week on Sunday and say that “there is no great desire on Capitol Hill” for more spending to stimulate the economy and that “we’re hoping we can persuade enough people on the other side of the aisle to put politics aside and join us.”  This makes your base throw up their hands (or just throw up) and say ‘For cryin’ out loud, somebody get a freakin’  clue. The Republicans don’t want anything that resembles economic growth, now or in the next 2 years. When are you guys gonna get it?’

Here are some steps you might want to consider and some advice you might want to listen to. First from Atrios:

“So let’s say Obama’s people have correctly deduced that there’s no chance in hell of getting anything through Congress. They have two basic options. First, they could get on the teevee every day and say, “This is my plan to help. Republicans in Congress won’t pass it.” They could hold rallies in Maine. Allies could run ads. At least people would know who is for and who is against…and just what it was that people are for or against.”

Option two is back off proposals you’ve previously made and have Axelrod get on the teevee and say, “there is some argument for additional spending in the short-run to continue to generate economic activity.”

Paul Krugman adds:

“I have no idea what they’re thinking. It would be one thing if polls suggested a tolerable outcome in November, so that playing it safe could possibly make sense as a political strategy. But that’s not the way it is; and it’s hard to see what possible motivation there is for pulling punches.”

Steve Benen at Washington Monthly:

“My sense is that President Obama really hates — and actively avoids — picking fights he fully expects to lose…The defeat would leave him weaker, exacerbate intra-party tensions, and at the same time signal that the White House lacks confidence in the strength of the economic recovery.

But the current alternative is far worse, especially given the fact that the White House should lack confidence in the strength of the economic recovery. It makes a lot more sense to push an ambitious jobs bill — like, now — invite Republicans to do what they always do, give Democrats something to fight for, and have the debate.

[…]

Yes, Republicans will block any measure intended to improve the economy, and it’s largely too late for a new stimulus effort to boost the economy before November. But it’s still worth having the fight — force the GOP to stand in the way of job creation, and show the public that Democrats are prepared to fight to improve on an unsatisfactory status quo.”

To sum up, you’re quickly approaching (if not already at) ‘nothing to lose’ stage. In sports terminology, this is not the time for basketball’s 4-corner offense or football’s prevent defense. (Long-time Houston fans can tell you how both of those work out, and it ain’t good. See UH–NC State and Oilers vs. Buffalo Bills). For those who don’t follow sports, let’s go with “faint heart never won fair maiden.” And faint heart never kicked the shit out of an obstructionist Republican either. It’s time to go bold and force the other team to re-act to you, not you to them.

Just my $0.02.

Time for a Leader, Not a Politician

07 Wednesday Jul 2010

Posted by in budget, Congress, economy, Obama, Politics

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“The easiest thing in the world for a politician to do is tell you exactly what you want to hear.”—Senator Barack Obama during the 2008 presidential campaign when the other candidates were calling for a gasoline tax holiday in the face of soaring oil prices.

It’s time for President Obama to take some advice from Senator Obama and not from his political advisers in the White House, like David Axelrod and Rahm Emanuel, who are telling him that the public mood is anti-spending and anti-deficit, and that it will be politically advantageous in the upcoming mid-term elections for him and the Democrats to play to the fear of a deficit boogeyman being ginned up by the right-wing noise machine and the president’s political opponents. Opponents who, let’s face it, don’t want to see unemployment go down or the economy improve between now and November. If the Republicans can get the president to focus on the deficit and cutting spending while unemployment hovers around 10%, they’ll be happy as pigs in slop, so to speak.

President Obama doesn’t help to counteract  the fearmongering when he does things like proposing spending freezes and initiating a debt commission stacked with deficit hawks and Social Security privatizers. In my opinion, this is a golden opportunity for a teaching moment.

If I were advising the president I would suggest a series of television appearances like Ross Perot did during his short-lived presidential campaign in 1992, (before he went all black helicopters, that is) complete with charts and graphs to illustrate his points. The American people, for the most part, aren’t stupid. We get a lot more than politicians and their political advisers give us credit for.

The president could start with a history lesson from 1937. About how FDR gave in to the deficit hawks of his day and started cutting spending before the country was out of the Great Depression which led to a “recession within the Depression” and delayed the recovery.

He could explain the stimulative effects of unemployment benefits. How that every dollar which goes out comes back as $1.64. How that almost half of the unemployed have been out of work for 6 months, something that hasn’t happened since the Labor Dept. started keeping that statistic in 1948. How the unemployed aren’t lazy bums looking for a handout—another popular meme of the noise machine—but that there are 6 applicants for every job opening, and that those over 50 who are disproportionately affected are Americans who have worked for the better part of their lives and have been caught up in an economic situation beyond their control. In their time of need they need our compassion, not our condemnation.

He could use the Gulf oil spill as a springboard to re-invigorate American manufacturing jobs in the field of clean energy, which leads to more people paying taxes and reduced deficits. We could be a country that makes things again, and in the process breathe new life into the rapidly disappearing American middle-class. As Rep. Tim Ryan (D-OH) said recently:

“We know what happens when the economy depends only on financial services and the creation of wealth through bookkeeping. Manufacturing jobs are good paying jobs that support families and communities, create spin-off jobs, and leads to innovation…We’ve spent the last 30 years pandering to those who have taken manufacturing off shore and in turn we lost the heart and soul of our country. We need to see ‘Made in the USA’ again.”

With signs of a slowing economy and the prospects of a double-dip recession looming, this is not the time for a politician with his finger in the wind gauging public opinion or re-acting to the misinformation and disinformation being put out by his opponents. This calls for someone to lead, educate to populace, and shape public opinion, not react to it.

We Don’t Need No Stinkin’ Contingency Plan

30 Saturday Jan 2010

Posted by in health care, Obama, Politics

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The danger of ass-u-me-ing, from TPMDC:

“The White House had no contingency plan for health care reform if Democrat Martha Coakley lost the special election in Massachusetts, and officials did not discuss the possibility a Democratic loss would dramatically imperil their legislative efforts, a top adviser said today.

…”There wasn’t much discussion about the implications if the thing went the other way,” he said.

President Obama’s senior advisor David Axelrod said there “wasn’t much discussion” about an alternative path to passing health care with just 59 Democrats in the Senate because there was “widespread assumption was that that seat was safe.”

Apparently, there are no former Boy Scouts in the president’s inner circle.