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Tag Archives: New York Times

Unemployment Rises to 9.2%

08 Friday Jul 2011

Posted by Craig in Unemployment

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9.2%, austerity, belt tightening, New York Times, unemployment

From this morning’s New York Times:

“The United States economy added a meager 18,000 jobs in June, up from a gain of a revised 25,000 jobs in May, the Department of Labor said on Friday. The unemployment rate rose to 9.2 percent in June from 9.1 percent in May, the department said.

[…]

The report said that 14.1 million people were out of work in June, among them 6.3 million who have been jobless for six months or longer. In May, the total number of unemployed people was reported as 13.9 million, with the long-term unemployed at 6.2 million.

[…]

The Labor Department said that following gains that averaged 215,000 jobs per month from February through April, employment has been “essentially flat” for the past two months.”

By strange coincidence, right about the time that cutting spending, belt-tightening, and austerity became the order of the day. Couldn’t be any correlation between the two, could there? But never mind, it’ll have no influence whatsoever on the 2012 election. Fluffy said so.

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The “Secret Channel” at Lehman Brothers

13 Tuesday Apr 2010

Posted by Craig in bailout, economy, Financial Crisis, Politics, Wall Street

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alter ego, Lehman Brothers, New York Times, shadow banking, Wall Street

Today’s New York Times has an account of a Lehman Brothers “alter ego” firm, Hudson Castle, part of the “vast financial system that operates in the shadows of Wall Street”:

“It was like a hidden passage on Wall Street, a secret channel that enabled billions of dollars to flow through Lehman Brothers.

In the years before its collapse, Lehman used a small company — its “alter ego,” in the words of a former Lehman trader — to shift investments off its books.

“Entities like Hudson Castle are part of a vast financial system that operates in the shadows of Wall Street, largely beyond the reach of banking regulators. These entities enable banks to exchange investments for cash to finance their operations and, at times, make their finances look stronger than they are.”

The firm, called Hudson Castle, played a crucial, behind-the-scenes role at Lehman, according to an internal Lehman document and interviews with former employees. The relationship raises new questions about the extent to which Lehman obscured its financial condition before it plunged into bankruptcy.

[…]

And sadly, it’s still going on:

“Even now, a year and a half after Lehman’s collapse, major banks still undertake such transactions with businesses whose names, like Hudson Castle’s, are rarely mentioned outside of footnotes in financial statements, if at all.”

Financial Crisis Round-Up

04 Sunday Apr 2010

Posted by Craig in bailout, economy, Financial Crisis, financial reform, financial regulation, Politics, too big to fail, Wall Street

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13 Bankers, Baseline Scenario, Debt Disaster Ahead, How Washington Abetted the Bank Job, Jamie Dimon, Market Oracle, McClatchy, Moody's board, New York Times, Politico, Reuters, Robert Reich, Simon Johnson, Sniveling Scamster, The Fed in Hot Water, The Most Dangerous Man in America, Thomas Hoenig, Timothy Geithner, Wall Street cabal, Zero Hedge

The constraints of time, due in large part to my newly-arrived copy of 13 Bankers, doesn’t allow extensive commentary on any of these posts from around the financial blogosphere, but all are deserving of a closer look:

Speaking of 13 Bankers, co-author Simon Johnson has a piece at Baseline Scenario on how a combination of political savvy and public relations acumen make JPMorgan Chase CEO Jamie Dimon “The Most Dangerous Man in America.”

Mike Whitney’s “Timothy Geithner is a Sniveling Scamster” at The Market Oracle describes how President Obama’s new mortgage modification program is “just another stealth bailout” for the banksters.

Tyler Durden at Zero Hedge comments on  Kansas City Fed President Thomas Hoenig’s extensive interview with Shahien Narisirpour of the Huffington Post.

Robert Reich’s “The Fed in Hot Water” on the belated admission of its taking tens of millions of bad loans off Bear Stearn’s books in order to facilitate their takeover by JPMorgan Chase.

Susan P. Koniak, George M. Cohen, David A. Dana and Thomas Ross in a New York Times op-ed entitled “How Washington Abetted the Bank Job” on the D.C buck-passing in regards to the regulators who were either incompetent or complicit (I choose the latter) in the Lehman Brothers Enron-like bookkeeping scam.

Speaking of inept, incompetent, or complicit so-called regulators, a McClatchy article asks, “Where was Moody’s board when top-rated bonds blew up?”

Herbert Lash at Reuters on the “Wall Street cabal” blocking derivative reform.

Finally, Rick Berman at Politico on the “Debt Disaster Dead Ahead.”

An Earmark Ban That’s Not Really an Earmark Ban

11 Thursday Mar 2010

Posted by Craig in Congress, Democrats, lobbyists, Politics, special interests

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Boeing, Bridge to Nowhere, defense, earmark ban, for-profit companies, Genaral Dynamics, Lockheed, New York Times, Northrop, Pelosi

Reading this headline in the New York Times—“Leaders in House Block Earmarks to Corporations”— might give the impression that some serious reform is underway on Capitol Hill, right? Wrong. As usual with our esteemed members of Congress,  it’s all about appearance. The appearance of doing something while actually doing nothing. And again, as usual, there are loopholes big enough for Patton’s Third Army to march through.

For instance, the ban on earmarks only applies to for-profit companies, allegedly. Which means that:

“Under the new restrictions, not-for-profit institutions like schools and colleges, state and local governments, research groups, social service centers and others are still free to receive earmarks. The new restrictions, for example, would still allow the type of award to local governmental agencies that became infamous in 2005 with Alaska’s “Bridge to Nowhere.”

Loophole No. 2:

“In addition, billions added to the defense bills for existing national security programs under contract with major defense companies such as Boeing, General Dynamics, Lockheed Martin and Northrop Grumman probably would not be affected.

For example, when House appropriators add more funds for Boeing’s C-17 cargo aircraft, they do not disclose them as earmarks. Instead, they are considered programs essential to national security even though none of the funds are requested by the Pentagon. These funds benefit lawmaker districts where the weapons systems are built.”

So what’s the point? It’s all about “image,” “appearances” and “optics.”

“House Democrats, in a bid to rehabilitate the image of a committee long mired in ethical mishaps, announced the Appropriations panel would not approve earmarks for for-profit corporations…”

“…For Pelosi, it clearly seemed to be a bid to simultaneously rehabilitate her party’s image and that of the Appropriations Committee, several of whose members were cleared in a wide-ranging ethics probe last month.”

“…Practically, many understand this rule means very little. Defense insiders say the proposal, especially without the help of the Senate, is an empty stab at reform…But optically, the move was important for Democrats.”

“…Democrats still think it’s a step in the right direction for the body as a whole, even if just for the sake of appearances. Rep. Chris Murphy (D-Conn.), a second-term member, said he doesn’t earmark for private entities and still is able to help defense contractors in Connecticut with federal projects.”

“I think it helps some of the optics with some of the members who I think are for earmark reform,” said [Rep. Joseph] Crowley [D-NY].”

Better headline: “Congress’ Eternal Quest, How Can We Fool ‘Em Today”

Washington Still Fiddling

09 Tuesday Mar 2010

Posted by Craig in Congress, economy, health care, Obama, Politics

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Bob Herbert, health care reform, jobs, New York Times, number one focus, State of the Union, unemployment

Bob Herbert’s op-ed in yesterday’s New York Times echos what I’ve been thinking lately—it’s time for Congress and President Obama to get past health care reform and move on to jobs. Please.

“The Obama administration and Democrats in general are in trouble because they are not urgently and effectively addressing the issue that most Americans want them to: the frightening economic insecurity that has put a chokehold on millions of American families.

The economy shed 36,000 jobs last month, and that was trumpeted in the press as good news. Well, after your house has burned down I suppose it’s good news that the flames may finally be flickering out. But once you realize that it will take 11 million or more new jobs to get us back to where we were when the recession began, you begin to understand that we’re not really making any headway at all.

…Instead of focusing with unwavering intensity on this increasingly tragic situation, making it their top domestic priority, President Obama and the Democrats on Capitol Hill have spent astonishing amounts of time and energy, and most of their political capital, on an obsessive quest to pass a health care bill.”

“Obsessive quest” is right. But sadly I don’t see it ending any time soon. Now the talk is to have health care done by Easter. Anybody who believes that believes in the Easter bunny. But never mind, Congress. Take your time. The good economic news is that another million people stopped looking for work last month and no longer count in the unemployment statistics. Hooray.

By the way, what happened to “jobs must be our number one focus in 2010″ from the State of the Union speech in January? Just curious.

"Deficit Peacocks"

30 Saturday Jan 2010

Posted by Craig in economy

≈ 1 Comment

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Center for American Progress, deficit hawks, deficit peacocks, New York Times, Paul Krugman

In his op-ed in Thursday’s New York Times Paul Krugman refers to Michael Linden’s piece at the Center for American Progress which makes the distinction between what he calls “deficit hawks” and “deficit peacocks.” Linden describes the hawks as, “those who believe that the long-term deficits pose serious risks, but that short-term deficits are necessary and wise during a recession” and “those who believe that deficits are always risky and should be avoided at all costs.”

The two have this is common:

“Both kinds of hawks are genuine in their concern over our nation’s finances and are sincerely committed to working toward a more sustainable federal budget.”

Then he turns to the “peacocks:”

“Deficit peacocks like to preen and call attention to themselves, but are not sincerely interested in taking the difficult but necessary steps toward a balanced budget. Peacocks prefer scoring political points to solving problems.”

Unfortunately, this category takes in the lion’s share of our elected officials in Washington–on both sides of the aisle–whose top priority is their own re-election, and who see those “difficult but necessary steps” as an impediment to that. After all, difficult choices are not often popular choices.

Linden then lists 4 ways to distinguish the hawks from the peacocks. Peacocks:

“1. Never mention revenues.
Increasing revenues is going to have to be part of the solution for meeting the fiscal challenge. Any suggestion that we can solve this problem solely by cutting spending reveals an utter misunderstanding or ignorance of the budget numbers. Balancing the budget without raising any additional revenue 10 years from now would require cutting every program in the entire budget by more than 25 percent, including all defense spending, Social Security and Medicare benefits, air-traffic-control funding, veterans’ benefits, aid to schools, job training programs, agriculture subsidies, highway maintenance, and everything else.

2. Offer easy answers.
We face a very large budget gap over the coming decade, and the scale of the problem is such that no one solution is going to solve it all. It is going to take a mix of increased revenues, spending reductions, and improved government efficiency to get our fiscal house in order. Those who claim that we could get the budget back to sustainability if we only cut out earmarks, or say that the solution is to simply freeze discretionary spending, are just peddling fiscal snake oil.”

(Note: this article is dated January 20, prior to President Obama’s State of the Union address)

“There are no easy answers to our budgetary challenges. We have an aging population, rising health care costs, and a tax code full of loopholes, exceptions, and targeted subsidies. It is going to take more than simple solutions to meet these challenges. If you hear the words, “all we have to do to balance the budget is…” then you know whoever spoke them hasn’t fully grasped the scope of the problem.

3. Support policies that make the long-term deficit problem worse.
Congress voted repeatedly over the past eight years to make huge tax cuts and create new spending programs without offsetting any of those costs. Many of the very same members of Congress who voted for those policies are now loudly urging the president to clean up the mess that they themselves made.

4. (Sorry, Sen. McCain, but facts is facts.) Think our budget woes appeared suddenly in January 2009.
More than 50 % of 2009’s huge deficit can be directly attributed to policies enacted by the previous administration, and that is not counting the 20 percent that was due to the economic disaster that began and gathered its momentum on President Bush’s watch. President Obama’s efforts to rescue the economy, on the other hand, are responsible for only 16 percent…The Bush-era tax cuts alone will add more than $5 trillion to the budget deficit over the next 10 years.”

Linden concludes:

“There are people from all parts of the political spectrum who strongly and sincerely believe that our current budget path is unsustainable and are committed to taking concrete steps to put the country on a better path. But there are also many who are only interested in scoring political points or in getting in the way of progress on this issue. Sometimes it can be difficult to distinguish between the two. Now, all you need to do to tell the former from the latter is apply any of these four handy tests.”

If We Sink to the Level of the Terrorists, Haven’t They Won?

22 Wednesday Apr 2009

Posted by Craig in Obama, Politics, Uncategorized

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CIA, CNS News, Dennis Blair, Khalid Sheikh Mohammed, memo, New York Times, Obama, Osama bin Laden, remarks, waterboarding

There are a couple of articles in the news this morning that are bringing cries of ‘See, we told you so’ from the defenders of the so-called “enhanced interrogation techniques.”

One is from CNS News, which says that the waterboarding of Khalid Sheikh Mohammed yielded information that prevented a terrorist attack on Los Angeles.

The other is from the New York Times, which contains this quote from a memo sent by national intelligence director Admiral Dennis Blair to his staff:

“High value information came from interrogations in which those methods were used and provided a deeper understanding of the al Qa’ida organization that was attacking this country.”

Those are headlines you are likely to see from those who seek to justify the use of torture. What you aren’t likely to read in those same places is this quote, also from Admiral Blair, also in the NYT article:

“The information gained from these techniques was valuable in some instances, but there is no way of knowing whether the same information could have been obtained through other means. The bottom line is these techniques have hurt our image around the world, the damage they have done to our interests far outweighed whatever benefit they gave us and they are not essential to our national security.”

So I’ll ask you, should the policy of the United States of America regarding interrogation be ‘whatever it takes?’ Do we adopt the tactics, such as waterboarding, used by Imperial Japan in WWII, tactics which were later prosecuted as war crimes, and which were common in Pol Pot’s Cambodia?

Personally, I’ll side with President Obama, who said this in his remarks to the CIA:

“What makes the United States special, and what makes you special, is precisely the fact that we are willing to uphold our values and ideals even when it’s hard — not just when it’s easy; even when we are afraid and under threat — not just when it’s expedient to do so. That’s what makes us different.”

One more question. If we sink to the level of Osama bin Laden and his followers who seek to do us harm, haven’t they won?

Paul Krugman: “What Do You Mean We”?

01 Monday Dec 2008

Posted by Craig in Election 2008, Obama, Politics, Uncategorized

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Lawrence Summers, New York Times, op-ed, Paul Krugman, President-elect Obama, Timothy Geithner

With all due respect to Timothy Geithner, Lawrence Summers, and the rest of President-elect Obama’s economic team, there is one name I would like to have seen included on that list–that of Nobel prize winning economist Paul Krugman.

Here’s why. From a Krugman op-ed piece in the New York Times recently:

“A few months ago I found myself at a meeting of economists and finance officials, discussing — what else? — the crisis. There was a lot of soul-searching going on. One senior policy maker asked, “Why didn’t we see this coming?”

There was, of course, only one thing to say in reply, so I said it: “What do you mean ‘we,’ white man?”

Seriously, though, the official had a point. Some people say that the current crisis is unprecedented, but the truth is that there were plenty of precedents, some of them of very recent vintage. Yet these precedents were ignored. And the story of how “we” failed to see this coming has a clear policy implication — namely, that financial market reform should be pressed quickly, that it shouldn’t wait until the crisis is resolved.

About those precedents: Why did so many observers dismiss the obvious signs of a housing bubble, even though the 1990s dot-com bubble was fresh in our memories?

Why did so many people insist that our financial system was “resilient,” as Alan Greenspan put it, when in 1998 the collapse of a single hedge fund, Long-Term Capital Management, temporarily paralyzed credit markets around the world?

Why did almost everyone believe in the omnipotence of the Federal Reserve when its counterpart, the Bank of Japan, spent a decade trying and failing to jump-start a stalled economy?

One answer to these questions is that nobody likes a party pooper. While the housing bubble was still inflating, lenders were making lots of money issuing mortgages to anyone who walked in the door; investment banks were making even more money repackaging those mortgages into shiny new securities; and money managers who booked big paper profits by buying those securities with borrowed funds looked like geniuses, and were paid accordingly. Who wanted to hear from dismal economists warning that the whole thing was, in effect, a giant Ponzi scheme?”

Put more succinctly by Upton Sinclair:

“It is difficult to get a man to understand something, when his salary depends upon his not understanding it!”

Mr. Krugman’s conclusion, and one I hope is heeded by the Obama administration, is that now is the time not only to focus on the short-term crisis, but to make the long-term fixes that will prevent the next one from occurring.

Fair And Balanced? Not So Much

18 Saturday Oct 2008

Posted by Craig in Election 2008, McCain, Obama, Politics, Uncategorized

≈ 2 Comments

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ACORN, Al Smith dinner, Ayers, bias, debate, Fox News, New York Times, Obama, Rupert Murdoch, Wednesday

Something that has gained little attention lately, as much of the media has been focused on all the “Plumber” hoopla, is that Barack Obama has been aggressively going after Fox News. He made reference to Fox’s bias in the debate on Wednesday night, saying this:

 

 

In his remarks at the Al Smith dinner last night, he again mentioned Fox and Rupert Murdoch. In an article in the New York Times, Obama made this observation:

“I am convinced that if there were no Fox News, I might be two or three points higher in the polls,” Obama told me. “If I were watching Fox News, I wouldn’t vote for me, right? Because the way I’m portrayed 24/7 is as a freak! I am the latte-sipping, New York Times-reading, Volvo-driving, no-gun-owning, effete, politically correct, arrogant liberal. Who wants somebody like that?

“I guess the point I’m making,” he went on, “is that there is an entire industry now, an entire apparatus, designed to perpetuate this cultural schism, and it’s powerful. People want to know that you’re fighting for them, that you get them. And I actually think I do. But you know, if people are just seeing me in sound bites, they’re not going to discover that. That’s why I say that some of that may have to happen after the election, when they get to know you.”

Obama’s campaign manager David Ploufe has also recently referred to Fox News as the “24-hour ACORN channel.” With apologies to Mr. Ploufe, and in my own effort to be “fair and balanced”, that’s not entirely true. Better said, Fox has become the 24-hour ACORN and Ayers channel.

Don’t believe it? Take a look at the number of times the words Ayers and ACORN have been mentioned on Fox and their competitors at MSNBC and CNN since Sunday, versus the number of times the economy has been mentioned.

               Fox            MSNBC       CNN

 

Ayers       525           340             279

ACORN    706             67             112

Economy 826         1032             954

For the mathematically challenged, that comes to 1,231 times the words Ayers and ACORN have been said on Fox, as compared to 826 times the word economy has been mentioned. That is nearly 50% more.

MSNBC and CNN combined have used the words Ayers and ACORN 798 times, as compared with 1,231 by Fox News alone. In contrast, MSNBC and CNN have each used the word economy more times than Fox.

Somebody remind me, which issue was it that 60% of the people said was the most important in the campaign. Was it the economy or was it Ayers and ACORN? I don’t seem to recall.

I Told You So, Republicans

15 Wednesday Oct 2008

Posted by Craig in Election 2008, McCain, Obama, Politics, Uncategorized

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attacks, CBS, liberal media, McCain, New York Times, Obama, Palin, Republicans, unfavorable

I hate to say I told you so, Republicans (not really) but I told you so. Your attacks on Barack Obama’s associations aren’t working. In fact, the opposite is true. McCain and Palin’s unfavorable ratings are rising and Obama’s favorables are at an all-time high since the attacks began. Thanks, GOP.

Before we go any further, these numbers are taken from a poll done by the New York Times and CBS, so I know some will dismiss it immediately as “liberal media bias.” You are free to leave at this point.

Now back to the polling data. About McCain’s attempts to tie Obama to William Ayers, the Times found this:

“After several weeks in which the McCain campaign sought to tie Mr. Obama to William Ayers, 64 percent of voters said that they had either read or heard something about the subject. But a majority said they were not bothered by Mr. Obama’s background or past associations. Several people said in follow-up interviews that they felt that Mr. McCain’s attacks on Mr. Obama were too rooted in the past, or too unconnected to the nation’s major problems.”

 

On the issue of favorability:

“Mr. McCain was viewed unfavorably by 41 percent of voters, and favorably by 36 percent. Ms. Palin’s favorability rating is now 32 percent, down 8 points from last month, and her unfavorable rating climbed nine percentage points to 41 percent. Mr. Obama’s favorability rating, by contrast, is now at 50 percent, the highest recorded for him thus far by The Times and CBS News.”

To show how poorly this attack strategy has worked, Palin’s favorable rating is now only 8 points ahead of President Bush, who is at an all-time low of 24%. Nice job Republicans, keep it up.

To show you how out of touch Republicans are at this point, take a look at this chart showing voter’s responses when asked which candidate has spent more time explaining his positions or attacking his opponent:

 

 

 

Almost half of the Republicans surveyed actually think that McCain has spent more time explaining his positions, talk about living in an alternate reality.

But then again, these are the same Mensa members that we see in line at McCain/Palin rallies, never mind.

 

 

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