Democratic challenger for the US Senate seat from Massachusetts and Harvard Law professor, Elizabeth Warren has been a popular guest this week on the cable networks. She appeared on MSNBC Thursday following the Republican debate and assessed Republicans as favoring a policy to “invest in those who already made it”. She specifically addressed wealthy businessman Mitt Romney’s income and his preferred tax rate:

“Mitt Romney pays 14 percent of his income in taxes, and people who get out there and work for a living pay 25, 28, 30, 33 percent. I get it, Mitt Romney gets a better deal than any of the rest of us because he manages to earn his income in a way that has been specially protected for rich folks,” said Ms. Warren.

Her assessment of former House Speaker Newt Gingrich was equally critical on his proposed tax policy of reducing everyone’s tax rate to 15% and expressed her support of “Warren Buffett rule” that would raise taxes on the wealthiest Americans.

Earlier on Tuesday night with Jon Stewart on Comedy Central’s “The Daily Show“, she informed Jon that “The Pats are gonna spank the Giants” and addressed tax policy, lobbying, and investment, her signature issues. She opposes cuts in education research as detrimental and the need to invest in the middle class. In Part 2, she goes on to describe the role that government should play in regulating America’s private sector.  This is the unedited interview that is only available on line

There are those who are concerned that Warren, a political novice, will compromise her principles to the pressure of Wall St. hawks like Sen. Charles Schumer (D-NY). After watching her dress down Treasury Secretary Tim Geithner during hearings as chair of the five-member Congressional Oversight Panel created to oversee the implementation of TARP, I think she’ll be able to stand her ground. I’ll forgive her for her support of the Patriots. Nobody’s perfect.

Jon Stewart gives his critique of President Obama’s State of the Union.

He doesn’t spare the Republican response for Indiana Gov. Mitch Daniels or the GOP candidates.

“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”.

Paul Krugman: Rooted in Politics, Austerity Worsens the Greek Tragedy

The Washington Post recently published a heartrending story on the suffering being imposed on ordinary Greeks. So much for the doctrine of expansionary austerity.

I do have a small bone to pick, however. In the article, published on Jan. 10 and titled “In Greece, Fears That Austerity Is Killing the Economy,” there’s the discussion of why such harsh austerity is being imposed: “European powers, led by fiscally conservative Germany, have been insisting that Greece correct years of mismanagement by enacting swift waves of cuts and other major economic reforms to regain the confidence of investors and ensure the integrity of the euro. Slashing the deficit quickly is essential to ushering in a sustainable future, they have argued, and the resulting social pain is necessary to impress on Greek politicians and society that such excesses should never happen again.”

Most of that is right – but not the bit about regaining the confidence of investors – or at any rate, that’s not what it’s about these days. For it’s quite clear that at this point investor confidence is unregainable. Greek borrowing costs aren’t coming down to affordable levels for a very long time.

Amy Goodman: Obama’s Late Payment to Mortgage-Fraud Victims

In his State of the Union address, many heard echoes of the Barack Obama of old, the presidential aspirant of 2007 and 2008. Among the populist pledges rolled out in the speech was tough talk against the too-big-to-fail banks that have funded his campaigns and for whom many of his key advisers have worked: “The rest of us are not bailing you out ever again,” he promised.[..]

Obama is aware that those at the Occupy Wall Street protests around the country include many who were his most active supporters during the 2008 campaign. Does the formation of the new task force signify a move to more progressive policies, as MoveOn suggests?[..]

This is the Occupy Wall Street conflict distilled. Will Eric Schneiderman’s new job lead to the indictment of fraudulent financiers, or to just another indictment of our corrupt political system?

I realize that there has been a lot of speculation about what went down in the 24 hrs prior to the SOTU after Miller announced that there was no bank/state settlement deal. There is a lot of speculation about Schneiderman and not without good reason. When I was writing my article for Stars Hollow I was careful not to join in the “sell out” theme that was running hot with some very respected bloggers. I think Obama is desperate. He knows that he is losing the Independents and moderate Republicans and needed to do something fast, especially in the light of the unpopularity of the 50 state agreement and the massive push to stop it. On the other side, and I somewhat agree with RJ Eskow on this, Schneiderman has the upper hand. He is wildly popular and scares the crap out of Cuomo & company. Schneiderman is not dropping the investigation here in NY, he’s expanding it from what I hear.

That said, I think that if this unit doesn’t move quickly in the evidence they already have, evidence BTW Schneiderman has not had access to, he will drop this like a hot potato and walk. Obama is walking a thin line and realizes that Wall St money alone will not get him reelected. I think Schneiderman is playing on that and hopes to at least hold some of them more responsible and get some better compensation for the homeowners that got screwed along with some regulation of the securitization that caused this all.

I have my doubts. There are better ways to do this, namely appointing a special prosecutor with a budget, investigators and subpoena power. I’m not willing to throw Schneiderman under the bus just yet.

I also think Obama wants him to succeed Holder who said he would leave this year even if Obama is reelected. It’s either him or CA’s AG Harris.

This was a complete surprise, so I’m being very cautious here, knowing what I do about Schneiderman and who is politically afraid of him. Like after Obama was elected, I’m watching and listening very carefully. Hoping that it is not as bad as it looks.

Eskow’s opinion appeared in Huffington Post and he disclosed that he is a fellow at Campaign for America’s Future, a left wing strategy center. (This site, however, is not affiliated with any outside organization and opinions expressed here are solely are own.) He gives a good analysis of the reasons for the skepticism of David Dayen, Yves Smith and Duncan Black (Atrios) who said, “It’s hard to see the Schneiderman thing as anything but bad news.”

Eskow dissects the reasons for the skepticism

The administration’s lack of prosecutions has been inexcusable. His administration has refused to prosecute even the most compelling prima facie cases of and has appointed one revolving-door banker after another to key economic positions. Its financial settlements with Wall Street have been disgraceful. For far too long the president pushed the nonsensical argument that “Wall Street and Main Street rise and fall together.”

And with an election coming up, bankers can write big checks that most other people can’t.

He also points out that if the Department of Justice and the SEC had been doing their jobs in the first place neither the Financial Fraud Task Force or this unit would be necessary. It’s hard not to agree with him that committees are “designed for paralysis and gridlock, not efficiency” and that president who promoted “”streamlining government” and “eliminating bureaucracy” would create this committee. Looking back on what happened with health care and financial reform everyone on the left has good cause to be wary of anything that President Obama does at this point and some groups, perhaps shouldn’t have been so effusive in their praise of this deal. Eskow, as do I, thinks that the White House, left scrambling after Iowa AG Tom Miller announced that there was no settlement with the banks and presented with citizen petitions that had hundred of thousands of names, reversed course in desperation. Then with the announcement that Schneiderman would “chair” the committee, there was a rush of exuberant relief that Obama was finally showing some signs of supporting the 99%.

As to the possibility that Schneiderman “caved”to pressure from the White House, Eskow backs up what I have said, Schneiderman has too much leverage:

Whatever Eric Schneiderman’s goals are, I doubt they include being stigmatized by progressives as a sell-out. His actions over the last few months have not been those of a guy who rolls over easily. It’s safe to assume that he wants to prosecute bank fraud, and that this appointment will give him access to the resources he’s needed to conduct a thorough investigation. [..]

Consider this: What would it do to the White House if Schneiderman labeled the entire effort a sham, resigned in protest, and continued his investigations alone? He must know he has leverage now, and presumably will use it if necessary.

Escow appeared with Cenk Uygur on “The Young Turks” to discuss the unit and Schneiderman with Cenk’s panel:

I certainly don’t agree with Michael Shure and what basically is “the lesser of two evils” meme. It can be just as bad with Obama. That said, could this turn out as the cynics are predicting? Sure and if it does we here at Stars Hollow, like Eskow, will say so.

Another good discussion of this new committee was with Delaware AG Beau Biden who appeared with Dylan Ratigan on MSNBC and his other guest real estate analyst, Jack McCabe:

I’m not ready to throw in the towel nor am I going to get on the cheer-leading band wagon. I will wait to see what transpires and keep my fingers crossed for the best outcome for the most people, the 99%.

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.

January 26 is the 26th day of the year in the Gregorian calendar. There are 339 days remaining until the end of the year (340 in leap years).

On this day in 1788, Captain Arthur Phillip guides a fleet of 11 British ships carrying convicts to the colony of New South Wales, effectively founding Australia. After overcoming a period of hardship, the fledgling colony began to celebrate the anniversary of this date with great fanfare.

Australia Day (previously known as Anniversary Day, Foundation Day, and ANA Day) is the official national day of Australia. Celebrated annually on 26 January, the date commemorates the arrival of the First Fleet at Sydney Cove in 1788 and the proclamation at that time of British sovereignty over the eastern seaboard of New Holland.

Although it was not known as Australia Day until over a century later, records of celebrations on 26 January date back to 1808, with the first official celebration of the formation of New South Wales held in 1818. It is presently an official public holiday in every state and territory of Australia and is marked by inductions into the Order of Australia and presentations of the Australian of the Year awards, along with an address from the governor-general and prime minister.

The date is controversial to some Australians, particularly those of Indigenous heritage, leading to the use of alternate names, such as Invasion Day and Survival Day. Proposals have been made to change the date of Australia Day, but these have failed to gain widespread public support.

Arrival of the First Fleet

On 13 May 1787, a fleet of 11 ships, which came to be known as the First Fleet, was sent by the British Admiralty from England to Australia. Under the command of Captain Arthur Phillip, the fleet sought to establish a penal colony at Botany Bay on the coast of New South Wales, which had been explored and claimed by Captain James Cook in 1770. The settlement was seen as necessary because of the loss of the colonies in North America. The Fleet arrived between 18 and 20 January 1788, but it was immediately apparent that Botany Bay was unsuitable.

On 21 January, Philip and a few officers travelled to Port Jackson, 12 kilometres to the north, to see if it would be a better location for a settlement. They stayed there until 23 January; Philip named the site of their landing Sydney Cove, after the Home Secretary, Thomas Townshend, 1st Viscount Sydney. They also had some contact with the local aborigines.

They returned to Botany Bay on the evening of 23 January, when Philip gave orders to move the fleet to Sydney Cove the next morning, 24 January. That day, there was a huge gale blowing, making it impossible to leave Botany Bay, so they decided to wait till the next day, 25 January. However, during 24 January, they spotted the ships Astrolabe and Boussole, flying the French flag, at the entrance to Botany Bay; they were having as much trouble getting into the bay as the First Fleet was having getting out.

On 25 January, the gale was still blowing; the fleet tried to leave Botany Bay, but only the HMS Supply made it out, carrying Arthur Philip, Philip Gidley King, some marines and about 40 convicts; they anchored in Sydney Cove in the afternoon.

On 26 January, early in the morning, Philip along with a few dozen marines, officers and oarsmen, rowed ashore and took possession of the land in the name of King George III. The remainder of the ship’s company and the convicts watched from onboard the Supply.

Meanwhile, back at Botany Bay, Captain John Hunter of the HMS Sirius made contact with the French ships, and he and the commander, Captain de Clonard, exchanged greetings. Clonard advised Hunter that the fleet commander was Jean-Francois de Galaup, comte de La Perouse. The Sirius successfully cleared Botany Bay, but the other ships were in great difficulty. The Charlotte was blown dangerously close to rocks; the Friendship and the Prince of Wales became entangled, both ship losing booms or sails; the Charlotte and the Friendship actually collided; and the Lady Penrhyn nearly ran aground. Despite these difficulties, all the remaining ships finally managed to clear Botany Bay and sail to Sydney Cove on 26 January. The last ship anchored there at about 3 pm.

Note that the formal establishment of the Colony of New South Wales did not occur on 26 January, as is commonly assumed. That did not occur until 7 February 1788, when the formal proclamation of the colony and of Arthur Phillip’s governorship were read out. The vesting of all land in the reigning monarch George III also dates from 7 February 1788.

We all know that Chris Matthews is a fawning tool who gets excited over politicians’ rhetoric even when it laced with blatant lies and 1% talking points. But Matthews got called out by none other than Rachel Maddow when he went all gushy over Gov. Mitch Daniels (R-IN) rebuttal to President Obama’s State of the Union address.

   MATTHEWS: You know, I really liked that speech by Mitch Daniels. I thought it was really a Midwestern conservatism of the best kind, honest, fiscally conservative or course, but recognizing that we have to protect our safety net and we have to recognize that the rich cannot get all the pension money and all the entitlement money. There’s not enough to go around. We’re going to have to have means testing. We’re going to have to close the loopholes.

   A very responsible kind of look at fiscal conservatism that recognizes that the rich can’t plunder the poor any more, that if you’re going to have a true conservatism, in other words a society that will sustain itself, a society that will be at peace with itself, you need to help the people to get a break and that means it’s not Libertarianism at all. There’s nothing of Ron Paul in what that man said.

   It was a responsible social policy of the right, which was really I think cast in old time Midwest, Bob Taft conservatism, except for some of the bromides, the idiomatic crap that he threw in there to make everybody happy. There was a seriousness to this speech. And now I understand why people like Mitch Daniels.

   MADDOW: Chris I am very glad that we area all talking about this together because I could not disagree with you more about the speech. This was just my impression of it but I don’t have time to go into that…

   MATTHEWS: Why?

   MADDOW: We’re going to go into that in a moment.

   MATTHEWS: What’s wrong?

   MADDOW: I think that Mitch Daniels there to say the world is on fire. Be afraid. Run to Republicans. I mean, he’s talking about America as a country that… America adrift, quarreling and paralyzed going over Niagra. I mean this was a “Be afraid, be afraid, be afraid” this guy’s trying to murder the country speech.

   MATTHEWS: But he also had solutions. He had gutsy solutions. He wasn’t afraid to take on the rich and that’s so rare today in the Republican side.

   MADDOW: I will take you on that Chris, absolutely.

Does Daniels make Matthews’ leg tingle?

h/t Heather at Crooks and Liars Video Cafe for the transcript

While there are there are many reasons to cheer President Obama’s announcement during his State of the Union address that he was forming a special unit within the Financial Fraud Task Force to investigate the fraud and other illegalities that caused the financial crisis and collapse of the housing market, there are plenty of reasons to be very skeptical.

The unit will be co-chaired by New York Attorney General Eric Schneiderman who withdrew from the DOJ panel of state attorney generals that was working on a settlement with the big banks over their part in mortgage fraud. That’s about all the good news there is. The other members of the unit are Lanny Breuer, assistant attorney general at the Criminal Division of the Department of Justice, Robert Khuzami, director of enforcement at the SEC; John Walsh, a U.S. attorney in Colorado, and Tony West, assistant attorney general in the Civil Division at DOJ.  Also, the And there in lies the farce of this unit.

Lanny Breuer, along with Attorney General Eric Holder, was partner in the Washington DC law firm Covington & Burling that represented a number of big banks and MERS which are at the center of alleged foreclosure fraud. He recently appeared on “60 Minutes” making numerous lame excuses justifying the lack of prosecutions out of the Justice Department. Despite the evidence, including records from federal and state courts and local clerks’ offices around the country, showing widespread forgery, perjury, obstruction of justice, and illegal foreclosures on the homes of thousands of active-duty military personnel, the Holder DOJ has not brought any criminal cases against big banks or other companies involved. There is a clear conflict of interest and possible ethics violations.

The director of enforcement of the SEC is another embarrassment. Robert Khuzami, a former general counsel at Deutsche Bank, one of the leading trustees in securitization, will no be looking into the instruments of the fraud he helped create. It has been Khuzami’s office that has been giving the banks no-fault settlements which recently were rejected by U.S. District Judge Jed S. Rakoff.

U.S. Attorney in Colorado, John Walsh, is most notable for justifying the crackdown on medical marijuana dispensaries in that state. He doesn’t appear to have any experience in prosecuting banking fraud.

The last unit member is Tony West, the brother-in-law of California’s Attorney General, Kamala Harris who like Schneiderman withdrew from the DOJ agreement because it was too little and didn’t hold the banks or companies libel. West, a lawyer with a Oakland, CA law firm and a former US attorney, appears to have little experience with financial fraud.

Is this really the way to do this? Why not create a Special Prosecutor with the budget and subpoena power rather than a committee within a task force that has done minimal in the last three years to investigate fraud? Both David Dayen at FDL News Desk and Yves Smith at naked capitalism think that Schneiderman is being used for a charade that would eventually let the banks get away with fraud anyway. But is Schneiderman that easily misled or dazzled by Obama’s offer? He certainly didn’t sound like he was going to end his state level investigation in this release from his office:

I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis.

In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.

The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today’s announcement is a major step in the right direction.

(emphasis mine)

Considering who has run the Treasury, the revolving door of bankers in the Oval Office and Obama’s weak efforts in investigating or prosecuting any person or entity that would ruffle the feathers of his Wall St. contributors over the last three years, there is a whole lot of reason to be doubtful about the president’s sincerity or any future hope of substantial relief for homeowners.

“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: Why this election is a choice, not a referendum

At the “heart of this campaign,” Newt Gingrich told his adoring followers in his South Carolina victory speech on Saturday night, is the fundamental choice between “American exceptionalism” and “the radicalism of Saul Alinsky.” America has a choice, he argued, between the vision of the founders and that of radical organizer Saul Alinsky, between a paycheck president and a food stamp president.

For a man of serial corruptions, it is ironic that character assassination is Gingrich’s true craft. Dog-whistle racism – Obama as the “food stamp president” – provided him his initial lift in South Carolina. Few at Gingrich’s victory speech knew who Alinsky was, but they could tell from the name that he was surely unsavory and probably un-American.

But the Gingrich dichotomy is neither original nor unique. It is simply the gutter version of the standard Republican frame for this election. In the more tempered words of Mitt Romney, Obama is accused of trying to transform America from an “Opportunity Society” to a “European-style Entitlement Society.” No matter who wins the nomination, this will be a theme pounded on over the next months.

Adele M. Stan: Obama’s State of the Union Plays to His Base — But Not Everything Was Worth Cheering

In his State of the Union message, Obama succeeded in painting the GOP as obstructionist, and came down hard on the banks.

In the final State of the Union message President Barack Obama will deliver this term, he came out swinging against the obstructionism of Republicans in Congress, and spoke to the growing gap between America’s rich and poor.

With a delivery that often sounded like he was imploring America to believe in itself again, Obama gave an address that may not have been his most inspirational, but got the job done. He laid out a strong case for his programs and his administration’s efforts to revive the economy, and made the GOP look small and petty at the expense of everyday people.[..]

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.

January 25 is the 25th day of the year in the Gregorian calendar. There are 340 days remaining until the end of the year (341 in leap years).

On this day in 1905, the world’s largest diamond is found. At the Premier Mine in Pretoria, South Africa, a 3,106-carat diamond is discovered during a routine inspection by the mine’s superintendent. Weighing 1.33 pounds, and christened the “Cullinan,” it was [the largest diamond ever found.

The Cullinan diamond is the largest rough gem-quality diamond ever found, at 3,106.75 carats (621.35 g).

The largest polished gem from the stone is named Cullinan I or the Great Star of Africa, and at 530.4 carats (106.1 g) was the largest polished diamond in the world until the 1985 discovery of the Golden Jubilee Diamond, 545.67 carats (109.13 g), also from the Premier Mine. Cullinan I is now mounted in the head of the Sceptre with the Cross. The second largest gem from the Cullinan stone, Cullinan II or the Lesser Star of Africa, at 317.4 carats (63.5 g), is the fourth largest polished diamond in the world. Both gems are in the Crown Jewels of the United Kingdom.

History

The Cullinan diamond was found by Frederick Wells, surface manager of the Premier Diamond Mining Company in Cullinan, on January 26, 1905. The stone was named after Sir Thomas Cullinan, the owner of the diamond mine.

Sir William Crookes performed an analysis of the Cullinan diamond before it was cut and mentioned its remarkable clarity, but also a black spot in the middle. The colours around the black spot were very vivid and changed as the analyzer was turned. According to Crookes, this pointed to internal strain. Such strain is not uncommon in diamonds.

The stone was bought by the Transvaal government and presented to King Edward VII on his birthday. It was cut into three large parts by Asscher Brothers of Amsterdam, and eventually into 9 large gem-quality stones and a number of smaller fragments. At the time, technology had not yet evolved to guarantee quality of the modern standard, and cutting the diamond was considered difficult and risky. In order to enable Asscher to cut the diamond in one blow, an incision was made, half an inch deep. Then, a specifically designed knife was placed in the incision and the diamond was split in one heavy blow. The diamond split through a defective spot, which was shared in both halves of the diamond.

It’s that time of the year. No, not the State of the Union address. pfffttt. The Academy Awards nominations were announced this morning. It’s Oscar time, you silly gooses!

The 84th Academy Awards will be presented on February 26th hosted by one of the best hosts since Bob Hope, Billy Crystal and will air on the ABC network at 7 PM EST/ 6 PM CST.

As we did last year, we here at Stars Hollow, will be hosting a live blog and Oscar party. Prior to the big night, I will once again have food and drink suggestions that will entertain your palate as you watch the festivities. So get ready there is barely a month to prepare.

And here are the nominees:

Best Picture

“The Artist”

“The Descendants”

“Extremely Loud & Incredibly Close”

“Hugo”

“Midnight in Paris”

“The Help”

“Moneyball”

“War Horse”

“The Tree of Life”

Best Actor

Demian Bichir, “A Better Life”

George Clooney, “The Descendants”

Jean Dujardin, “The Artist”

Gary Oldman, “Tinker Tailor Soldier Spy”

Brad Pitt, “Moneyball”

Best Actress

Glenn Close, “Albert Nobbs”

Viola Davis, “The Help”

Rooney Mara, “The Girl With the Dragon Tattoo”

Meryl Streep, “The Iron Lady”

Michelle Williams, “My Week With Marilyn”

(The rest below the fold. We wouldn’t want to hog the stage. 😉