December 2011 archive

My Little Town 20111207: My Mum Part II

Those of you that read this regular series know that I am from Hackett, Arkansas, just a mile or so from the Oklahoma border, and just about 10 miles south of the Arkansas River.  It was a redneck sort of place, and just zoom onto my previous posts to understand a bit about it.

Friday past, instead of posting Popular Culture I posted the first half of a tribute to my mum because that would have been her 90th birthday.  Tonight I post the second half of that tribute.

Since this the 70th anniversary of the bombing of the fleet at Pearl Harbor, I have a Pearl Harbor story about her and my dad as well.  I sort of jumped to 1957 last time, so we need to backtrack a little.

Obama Will Sign NDAA Bill: Up Dated

As per Sen. Karl Levin, Obama requested that the language barring the indefinite detention of US citizens be removed from the National Defense Authorization Bill. This doesn’t exonerate Levin or the other 93 Senators who voted “aye” on this travesty of legislation.

We have only a few days to speak up to Congress before the President signs NDAA Section 1031, permitting citizen imprisonment without evidence or a trial. Congress plans to give it to him to sign by Dec 9. But if we act urgently to raise awareness among our friends, family, and colleagues, we can still prevent this. Here is what we can do:

1) Americans must know about this to stop it. Urgently pass this petition as widely as possible: http://www.change.org/petition… … – Contact the media by any means available to you. ZERO news stories have covered this Chairman Levin clip yet!

2) Congress can still block the law before December 9. Write and call your Representative and Senator telling them to stop NDAA Section 1031.

Contact your Representative: http://writerep.house.gov/writ…

Contact your Senator: http://www.senate.gov/general/…

3) Write and call the White House to tell the President you won’t sit by and watch NDAA Section 1031 become law: http://www.whitehouse.gov/cont…

4) Stay smart — To slow down journalists and concerned citizens, it appears Section 1032 was deliberately crafted to distract from Section 1031. However, section 1032 is NOT the citizen imprisonment law. Disturbingly, this confusion is helping Section 1031 to slip by the American people. Do NOT fall for the misdirection, stay informed and urgently work to stop NDAA Section 1031.

We need to stop Obama and Congress from trashing the Constitution.

Up Date 12.8.2011: The web site Lawfare has an excellent two part analysis and side by side comparison of the House and Senate versions of NDAA. Written by Benjamin Wittes, it is an enlightening read on the flaws of both bills:

As the House of Representatives and the Senate head to conference on the NDAA, I thought it might be useful to analyze the similarities and differences between the counterterrorism provisions of the two versions of the bill. People sometimes talk about the NDAA as though both houses are on the same track. And there are some similar themes. But the two bills are also quite different. And these difference give rise to opportunities in conference: opportunities to emerge with far better policy than either bill presents on its own, and opportunities for mischief as well.

In this pair of posts, which is organized thematically and loosely according to the sequence of provisions in the House version of the bill, I am going to do a kind of side-by-side analysis. In each section that follows, I will start with a discussion of the House bill, which is longer and more involved, then describe how the analogous Senate provision (if one exists) differs. I will then discuss what I think the optimal realistic policy outcome looks like given the two versions. I am not going to rehash the merits or lack thereof of the specific provisions, all of which we have discussed elsewhere. My point is simply to highlight where the Congress has a clear position and where the houses are reading from different playbooks.

The Senate version of the bill is available here (pdf), with the relevant section running from pp. 426-445. The House version of the bill is available here (pdf) and runs from pp. 567-603. As this will get long, I will break it up into two posts.

House-Senate Side-by-Side of NDAA Provisions: Part I

House-Senate Side-by-Side of NDAA Provisions: Part II

The Fed Strikes Back And Fails

Poor Federal Reserve Chairman Ben Bernanke, he got dissed by Bloomberg News investigation of his $7.7 trillion give away, so he sends a six page complaint (pdf) to Congress. Bloomberg News responded to Ben’s whining with a blow by blow response:

Federal Reserve Chairman Ben S. Bernanke said in a letter to four senior lawmakers today that recent news articles about the central bank’s emergency lending programs contained “egregious errors.”

While Bernanke’s letter and an accompanying four-page staff memo posted on the Fed’s website didn’t mention any news organizations by name, Bloomberg News has published a series of articles this year examining the bailout. The latest, “Secret Fed Loans Gave Banks $13 Billion Undisclosed to Congress,” appeared Nov. 28.

“Bloomberg stands by its reporting,” said Matthew Winkler, editor-in-chief of Bloomberg News.

Yves Smith weighs in on the “food fight”:

First, it [the Fed] tries the sneaky device of complaining about all the bad press it is getting, and alludes in passing to the latest Bloomberg report (“one last week”). So are we dealing with the general or the specific? The attachment to the letter, which makes a series of specific claims of where the coverage allegedly was off beam, was rebutted with great speed and vigor by Bloomberg. So trying to have it both ways (attacking Bloomberg but trying to depict it as part of general critic wrongheadedness) backfired.

But what is even more striking is the tone and substance of the letter: overreaching words like “egregious,” the patently false claims that there is nothing new in the latest (and by implication, earlier) Bloomberg stories, that the disclosure issues are settled. If there was no new information given to Bloomberg, then why did the Fed fight so hard to prevent the release of information? The Fed has never been cooperative. Even with the Congressional Oversight Panel, the so called Sanders report coming out of Audit the Fed (and remember, the Fed succeeded in lobbying to narrow the scope of Audit the Fed), a new GAO report, the latest Bloomberg FOIA still pried loose more information. The Fed is clearly not interested in transparency, but keeps trying to claims that everything that anyone would want to know is public, and there really is nothing here to discuss any more. [..]

But the biggest lie in this fabric of Big Lies is that the banks were just suffering a wee liquidity crisis in the crisis, not a solvency crisis. If that was true, why did we need a TARP plus making failed credit default swap hedges good via the AIG rescue? In addition, Steve Waldman has described, long form, that bank equity is such an abstraction, in that there is a very high degree of uncertainty in the value of both assets and liabilities, that you need much bigger buffers of equity than anyone now has to properly deem a bank to be solvent […] The regulators determine whether a bank was insolvent. And since no regulator was willing to say a bank was insolvent (although Sheila Bair was clearly close to doing so with Citi), ipso facto, they were all solvent. Nice to have such accommodating people handing out grades.

The most laughable part of the Fed’s defense is the claim that Congress was fully informed about their actions. Really? Not according to Rep. Barnie Frank, former chairman of the House Financial Services Committee, who said “”We didn’t know the specifics.”

It is well past time for Congress to rein in the Fed. Anyone have a toga?

December 7, 1941: This Is Not A Drill

Photobucket

Click on image to enlarge

This message was sent to all in the US Naval Fleet at 8:00 AM HST by Admiral Husband Kimmel, in charge of Pearl Harbor.

h/t Command Posts

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Wednesday is Ladies’ Day

Katrina vanden Heuvel: It’s accountability time for banks and Wall Street

There’s a scene in the HBO adaptation of Andrew Ross Sorkin’s book “Too Big to Fail” where Treasury Secretary Henry Paulson’s adviser suggests he call Warren Buffett to ask for help with Lehman Brothers. “As what?” responds Paulson. “Warren’s friend? His former banker? The treasury secretary? No!” In the movie, Paulson understands the difference, that there are bright lines that he should not cross. In real life, it turns out, these were not the kind of distinctions Paulson was particularly concerned about making.

Missing from that movie – and other first drafts of recent financial history – was a bombshell recently uncovered by Bloomberg’s Richard Teitelbaum: Paulson gave his hedge fund friends inside information about government plans to seize Fannie Mae and Freddie Mac, seven weeks before it happened. Common stock and some preferred stock would be wiped out in the process, he told them, meaning a bet against the giants was a bet that could make them millions. Those without connections to Paulson didn’t get a tip-off; worse, they got the opposite. On the same day that Paulson met with the hedge funds, he told the New York Times that markets would soon have reason for renewed confidence in both enterprises.

Yves Smith: Obama Road Tests Hopey-Changey Big Lie 2.0: He’ll Reincarnate as Teddy Roosevelt if You Are Dumb Enough to be Fooled Twice

Wow, I have to hand it to Obama’s spinmeisters. They’ve managed to find a way to resurrect his old hopium branding by calling it something completely different that still has many of the old associations. [..]

Team Obama may have planned to wheel this new, improved image out later, with the timing accelerated by Judge Jed Rakoff’s decision against a proposed $285 million settlement between the SEC and Citigroup over a bum CDO in which Citi allegedly wielded considerable influence over its contents so it could bet against it. The SEC has gone on a full bore media offensive against Rakoff, with enforcement chief Robert Khuzami’s becoming uncharacteristically accessible to the media and also using scheduled speaking engagements to take issue with Rakoff’s ruling. And on top of Khuzami’s own efforts, the media has taken up some other dubious plants by the SEC. The biggest howler is a story in the Wall Street Journal earlier this week. Titled “Financial Crimes Bedevil Prosecutors,” not one of the sources for the story is a prosecutor!

Amy Goodman: Listen to the People, Not the Polluters

There is a growing consensus here in Durban that the United States is the main impediment to progress at these crucial talks. A consortium of 16 of the major environmental groups in the U.S. wrote a letter to Secretary of State Hillary Clinton, who directly oversees the U.S. climate negotiations. They pointed out that, while President Barack Obama originally campaigned on a promise to lead in global climate negotiations, “three years later, America risks being viewed not as a global leader on climate change, but as a major obstacle to progress.”

The fossil-fuel industry exerts enormous influence over the U.S. government, and over the U.S. public, with tens of millions of dollars on lobbying and PR campaigns to shape public opinion. Kumi Naidoo, who has been jailed many times for his activism, compared the struggle against apartheid to the fight against climate change: “If people around the world can actually unite-trade unions, social movements, religious leaders, environmental groups and so on, which we saw in the march on Saturday-I pray and hope that we will have a similar kind of miracle to get these climate negotiations to deliver a fair, ambitious and legally binding outcome.”

Naomi Wolf: The American hangover

Trends in American leisure activities reflect a change – frugality and making do are in, gaudy consumerism is out.

New York, NY – As turmoil stalks the US financial markets and protests fill its streets, Americans’ lifestyle choices are evolving in a telling way: Once seen by the rest of the world as an exuberant teenager – the globe’s extrovert, exporter of rock ‘n’ roll and flashy Hollywood movies – Americans are now becoming decidedly withdrawn, or at least inward-looking. Trends in leisure activities reflect that change: Frugality and making do are in; gaudy consumerism is out. [..]

Ronald Reagan asserted in 1980 that it was “morning in America”, but in the US now, it is the morning after. This drive towards an off-the-grid, eat-what-you-raise, bike-there-on-your-own, solar-powered collective fantasy is inevitable: Americans were pumped full of hope that more consumption would make them happier, and instead were left with a pile of debt. They were asked to admire the top of the income pyramid, only to find that they were looking at a pyramid scheme.

Maureen Dowd: Silence Is Golden

Hello chatter, my old friend.

The sounds of silence are a dim recollection now, like mystery, privacy and paying attention to one thing – or one person – at a time.

As far back as half-a-century ago, the Swiss philosopher Max Picard warned: “Nothing has changed the nature of man so much as the loss of silence,” once as natural as the sky and air.

As fiendish little gadgets conspire to track our movements and record our activities wherever we go, producing a barrage of pictures of everything we’re doing and saying, our lives will unroll as one long instant replay.

There will be fewer and fewer of what Virginia Woolf called “moments of being,” intense sensations that stand apart from the “cotton wool of daily life.”

On this Day In History December 7

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future

Find the past “On This Day in History” here.

December 7 is the 341st day of the year (342nd in leap years) in the Gregorian calendar. There are 24 days remaining until the end of the year.

On this day in 1787, (In) Dover, Delaware, the U.S. Constitution is unanimously ratified by all 30 delegates to the Delaware Constitutional Convention, making Delaware the first state of the modern United States.

Less than four months before, the Constitution was signed by 37 of the original 55 delegates to the Constitutional Convention meeting in Philadelphia. The Constitution was sent to the states for ratification, and, by the terms of the document, the Constitution would become binding once nine of the former 13 colonies had ratified the document. Delaware led the process, and on June 21, 1788, New Hampshire became the ninth state to ratify the Constitution, making federal democracy the law of the land. Government under the U.S. Constitution took effect on March 4, 1789.

Delaware  is a U.S. state located on the Atlantic Coast in the Mid-Atlantic region of the United States. The state takes its name from Thomas West, 3rd Baron De La Warr, an English nobleman and Virginia’s first colonial governor, after whom (what is now called) Cape Henlopen was originally named.

Delaware is located in the northeastern portion of the Delmarva Peninsula and is the second smallest state in area (after Rhode Island). Estimates in 2007 rank the population of Delaware as 45th in the nation, but 6th in population density, with more than 60% of the population in New Castle County. Delaware is divided into three counties. From north to south, these three counties are New Castle, Kent, and Sussex. While the southern two counties have historically been predominantly agricultural, New Castle County has been more industrialized.

The state ranks second in civilian scientists and engineers as a percentage of the workforce and number of patents issued to companies or individuals per 1,000 workers. The history of the state’s economic and industrial development is closely tied to the impact of the Du Pont family, founders and scions of E. I. du Pont de Nemours and Company, one of the world’s largest chemical companies.

Before its coastline was first explored by Europeans in the 16th century, Delaware was inhabited by several groups of Native Americans, including the Lenape in the north and Nanticoke in the south. It was initially colonized by Dutch traders at Zwaanendael, located near the present town of Lewes, in 1631. Delaware was one of the thirteen colonies participating in the American Revolution and on December 7, 1787, became the first state to ratify the Constitution of the United States, thereby becoming known as The First State.

Delaware is the home state of Vice President Joseph Biden

Love is Hard, but Rewarding

Alexis, only 34 months old today, had her tonsils removed.  As a scientist, I am not fully in agreement with that.  But her physician thought it the right thing to do.

Ashley, 19 years old, and the mother of Alexis, asked me to visit tonight.  I did!

C’thulhu fhtagn

Then mankind would have become as the Great Old Ones; free and wild and beyond good and evil, with laws and morals thrown aside and all men shouting and killing and revelling in joy. Then the liberated Old Ones would teach them new ways to shout and kill and revel and enjoy themselves, and all the earth would flame with a holocaust of ecstasy and freedom.

I’ve been following what purports to be a conversation with a libertarian over at Naked Capitalism and I hardly know how to characterize it except as pathological.  It’s faith based and factually wrong in addition to being illegal, immoral, and selfish.

I’m not making the claim that it accurately represents libertarian doctrine or practice, or even the viewpoint of a real human being and not a fictional straw man construct.

Frankly I don’t know what to think.  I was appalled and horrified reading it and draw your attention because of those qualities.

By Andrew Dittmer, who recently finished his PhD in mathematics at Harvard and is currently continuing work on his thesis topic. He also taught mathematics at a local elementary school. Andrew enjoys explaining the recent history of the financial sector to a popular audience.

Simulposted at The Distributist Review

(h/t Think Progress)

Moral Hazard?

What’s that?  Never heard of it.

The eurozone’s terrible mistake

Felix Salmon, Reuters

Dec 5, 2011 23:36 EST

The FT is reporting today that the new fiscal rules for the EU “include a commitment not to force private sector bondholders to take losses on any future eurozone bail-outs”. If this principle really does get enshrined into some new treaty, it will be one of the most fiscally insane derelictions of statesmanship the world has seen – but it certainly helps explain the short-term rally that we saw today in Italian government debt.



To understand just how stupid this is, all you need to do is go back and read Michael Lewis’s Ireland article. The fateful decision in Ireland was to take the insolvent banks and give them a blanket bailout, with the banks’ creditors all getting 100 cents on the euro. That only served to put a positively evil debt burden onto the Irish people, forcing a massive austerity program and causing untold billions of euros in foregone growth, while bailing out lenders who deserved no such thing.



The worst case scenario is that the EU kicks the can down the road with one new bailout facility after another, until it eventually gives up throwing good money after bad and imposes the restructuring which was inevitable all along. In that case, as one hedge fund manager was explaining to me last week, private sector creditors get devastated: because the EU and the ECB and the IMF won’t take any losses on their loans, all of the haircut, pretty much, will have to be borne by a private sector which accounts for only a fraction of the debt. So the private sector could end up with very, very little indeed.



The immediate result of this plan is that everybody will rush into the highest-yielding bonds in Europe, which is exactly what seems to have happened today. The other effect of the plan, however, is that every country in Europe is now effectively guaranteeing everybody else’s debt. Which is more than sufficient to explain why S&P is minded to downgrade every country in Europe, up to and including Germany.

In order for markets to work, lenders need to suffer when they make bad lending decisions. If the Europeans didn’t learn from Ireland, couldn’t they at least learn from the Fed’s much-criticized decision to pay off all AIG creditors at 100 cents on the dollar? Blanket guarantees at par are pretty much always a really bad idea – and this one, if it comes to pass, will be the biggest one yet. It won’t end well.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Dean Baker: The Stop Online Piracy Act: Class War in Cyberspace

The One Percent and their employees are masters of word play. They turned the estate tax into the “death tax,” life-saving health and environmental rules became “job-killing” regulations and, of course, when it comes to taxes, the richest of the rich are now “job creators” who are supposed to be exempt from paying taxes.

Given this track record, it is hardly surprising that a bill that would require every web site in the country to become unpaid copyright enforcement officers for Time Warner, Disney and The Washington Post comes packaged as the “Stop Online Piracy Act.” While the name may lead the public to believe that Congress is trying to keep our email pure and our computer screens safe, the real story is that the One Percent are again trying to rig the rules so that they get as many dollars as possible from the rest of us.

David Brooks: The Wonky Liberal

Republicans have many strong arguments to make against the Obama administration, but one major criticism doesn’t square with the evidence. This is the charge that President Obama is running a virulently antibusiness administration that spews out a steady flow of job- and economy-crushing regulations.

In the first place, President Obama has certainly not shut corporate-types out of the regulatory process. According to data collected by the Center for Progressive Reforms, 62 percent of the people who met with the White House office in charge of reviewing regulations were representatives of industry, while only 16 percent represented activist groups. At these meetings, business representatives outnumbered activists by more than 4 to 1.

Nor is it true that the administration is blindly doing the bidding of the liberal activist groups. On the contrary, the White House Office of Information and Regulatory Affairs and its administrator, Cass Sunstein, have been the subject of withering attacks from the left. The organization Think Progress says the office is “appalling.” Mother Jones magazine is on the warpath. The Huffington Post published a long article studded with negative comments from unions and environmental activists.

I know, David Brooks you ask, well, the only problem with Bobo’s article is his title. As the article illustrates so precisely, Obama may be “wonky” but he ain’t no liberal.

Bill McKibben: The Most Important News Story of the Day/Millennium

The most important piece of news yesterday, this week, this month, and this year was a new set of statistics released yesterday by the Global Carbon Project. It showed that carbon emissions from our planet had increased 5.9 percent between 2009 and 2010. In fact, it was arguably among the most important pieces of data in the last, oh, three centuries, since according to the New York Times it represented “almost certainly the largest absolute jump in any year since the Industrial Revolution.”

What it means, in climate terms, is that we’ve all but lost the battle to reduce the damage from global warming. The planet has already warmed about a degree Celsius; it’s clearly going to go well past two degrees. It means, in political terms, that the fossil fuel industry has delayed effective action for the 12 years since the Kyoto treaty was signed. It means, in diplomatic terms, that the endless talks underway in Durban should be more important than ever–they should be the focus of a planetary population desperate to figure out how it’s going to survive the century.

Ari Berman: How Obama Should Thwart GOP Obstructionism

This week President Obama is launching a media blitz in support of Richard Cordray, his nominee to head the Consumer Financial Protection Bureau (CFPB). The Senate Banking Committee has confirmed Cordray, but the full Senate is likely to block his nomination this week, since Republicans have vowed to torpedo the CFPB director unless the Obama administration institutes changes that would cripple the agency. And without a director in place, the CFPB cannot assume many of its important new powers.

How will this prolonged standoff end? Unless the Obama administration changes its strategy, Cordray will likely suffer the same fate as other well-qualified nominees killed off by GOP filibusters, such as Donald Berwick, Peter Diamond and Goodwin Liu.

Frank Bruni: Familiarity Breeds Newt

In accordance with the rhythm of the Republican contest so far, it’s time to ask when Newt Gingrich, the unlikely race car of the moment, will run out of gas.

Much of the emerging thinking goes like this: He’ll be spared the sputtering by dint of the calendar. The caucuses in Iowa, where the latest polls show him in the lead, are less than a month away. Between now and then there’s too much gift shopping, gift giving, eggnog and “Auld Lang Syne” for distracted voters to travel the whole attraction-to-repulsion arc with him. The attraction endures. Gingrich contends. Mitt Romney, uncharacteristically, sweats.

I buy the contention and perspiration parts. But if they happen, I don’t think the sole or even principal explanation will be the lucky timing of Gingrich’s velocity. There’s something else – something more potentially advantageous – at work.

New York Times Editorial: Mr. Romney’s Missing Details

The biggest whopper in Mitt Romney’s fiscal plan comes right at the beginning of the description on his Web site: “We will level with the American people about what it will take to truly cut spending and balance our budget.” Actually, Mr. Romney never tells voters the full cost of his plan to balance the budget while cutting taxes: popular programs would be slashed or eliminated, vital state and local services would disappear, misery would be inflicted on the poor and the working class.

Such details would make the plan a hard sell as he runs for the Republican presidential nomination, so Mr. Romney presents it as a breeze, with little pain attached. Just cap spending, make the Bush tax cuts permanent and eliminate the estate tax, raise the retirement age for Social Security, and offer some lower-cost Medicare options. Before you know it, economic growth will return to 4 percent a year and military cuts can be called off.

Joe Nocera: Dr. Berwick’s Pink Slip

Dr. Donald Berwick was already in Massachusetts when I spoke to him Sunday afternoon. He was back in the Newton home where he’d lived for 30 years, being pleasantly interrupted during our conversation by his 2-year-old grandson. His last day in Washington as the administrator of the Centers for Medicare and Medicaid Services had been Thursday. Friday was packing day. Saturday was moving day. And, by Sunday, he was already talking about his too-short, 17-month tenure as the nation’s top Medicare official in the past tense. Which, alas, it was. [..]

Of course, 17 months is hardly enough time to complete such a transformation, and it is hard to know if Berwick’s emphasis on quality will stick. What he needed, most of all, was more time – precisely what the Republicans wouldn’t give him.

By refusing to confirm him, Republicans won a pointless victory against the president. But, if the day ever comes when they – and the country – truly get serious about reforming Medicare, they may regret giving a pink slip to the best man for the job.

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