Slow Class

Wall Street’s Fatal Defect

Mark Sunshine, The Huffington Post

President and CEO, M.A. Sunshine Capital

Posted: December 29, 2010 03:06 PM

According to many industry experts, including the Congressional Oversight Panel, many private label mortgage backed bonds have a fatal defect. Of course, Wall Street disagrees and claims that the problem is a mere technicality and not very important. The “insignificant” defect that Wall Street is downplaying is that many mortgage backed bonds may not be backed by mortgages.

The last sentence was not a typo or a mistake of fact.

There is a serious chance that the issuers of many mortgage backed bonds lack ownership of the mortgages that are supposed to back their bonds. This dirty little defect has paralyzed the private mortgage finance markets and is a primary reason that new issuance of even private mortgage securities made up of loans to “A” quality borrowers and low loan to values has ceased. And, the problem seems to be ignored by the administration and regulators.

Remember, our Masters of the Universe went to the best schools and are ever so much brighter than us mere serfs.

Why Mortgage-Backed Securities Aren’t (Backed by Securities): How MERS Toasted the Banks

L. Randall Wray, The Huffington Post

Professor of Economics and Research Director of the Center for Full Employment and Price Stability, University of Missouri-Kansas City

Posted: December 30, 2010 08:35 AM

In a series of pieces I have argued that MERS, a creation of the mortgage banking industry, has effectively destroyed the institution of private property in America. Ironically, MERS was created to facilitate quick and easy and cheap securitization of mortgages — what are called mortgage-backed securities. In fact, what it did was to eliminate any backing of the securities by mortgages. Of the total securitized asset universe, something like $7 trillion are (supposedly) backed by residential mortgages. However, MERS helped to delink the securities from the mortgages. At best, they are unsecured debt — there is no property backing the securities. What this means is that foreclosure is not permitted. As I have said before, it is likely that most or even all foreclosures occurring in the US are illegal seizures of property — home thefts. We are talking about 100,000 completed home thefts per month, with another 250,000 new foreclosures started to steal homes every month. Projections are that 13 million homes will have been “foreclosed” (read: stolen) by 2012.

Worse, from the perspective of the banks, they’ve got to take back all the fraudulent MBSs, most of which are toxic.

In what follows I want to present the most favorable case for the mortgage industry. That is to say, I will ignore fraud and criminal conspiracies. Let us look at the current predicament as if it resulted from a series of monumental errors. With that in mind, what is the best-case scenario? First a caveat: I am not a lawyer nor am I an investigative reporter. I have relied on my perusal of reported evidence, plus a discussion with James McGuire who has put together an entirely convincing argument that the securitizations of mortgages resulted in securities that are not backed by mortgages. I urge interested readers to go to his website.

New Year’s Eve TV

Happy Amateur Night!  If you’re like me you’re not that into sharing the road or even a space.  I remember one year when someone poisoned themselves on 1.75 of Stoli, announced they had to pee, stood up, turned around, and proceeded to do so on the couch they had previously been sitting on.

Being a charitable fellow I literally held the bag for him as he detoxified before he slept it off.  I will admit I let him do it on the same couch (well, we had to burn it anyway).

In any event to kick off the festivities I direct your attention to the Holiday Bowl Big Balloon Parade.  Yup, bigger than Macy’s and more concentrated, only an hour at 9 am on USA.  The results of last night’s Holiday Bowl itself?  Washington 19 – 7 over Nebraska.

Expect updates.  This edition good until noon.  Now through 8 pm.  Up to 11 pm.  Now until 2 am.  6 am.

New Tools.  Previous entries.  Instant gratification-

Zap2it TV Listings, Yahoo TV Listings

6 am

6:30 am

7 am

8 am

8:30 am

9 am

9:30 am

10 am

10:30 am

11 am

11:30 am

Noon

  • DisneyPhineas and Ferb Summer Belongs to You
  • ESPN– College Throwball, Meineke Car Care Bowl: Clemson v. South Florida
  • ESPN2– College Hoopies, Northwestern @ Purdue, College of Charleston @ Tennessee
  • FXDoomsday
  • National Geographic– Fishing marathon until 3 am
  • CBS– College Hoopies, Kentucky @ Louisville

12:30 pm

1 pm

1:30 pm

2 pm

  • FXCloverfield
  • ToonJohnny Test until 3 pm
  • CBS– College Throwball, Sun Bowl: Miami v. Notre Dame
  • ESPN2– College Hoopies, College of Charleston @ Tennessee

2:30 pm

3 pm

3:30 pm

4 pm

4:30 pm

5 pm

  • LifetimeReviving Ophelia
  • NickiCarly marthon until 8 pm

5:30 pm

6 pm

6:30 pm

7 pm

7:30 pm

  • ESPN– College Throwball, Chick-fil-A Bowl: Florida State v. South Carolina

8 pm

8:30 pm

9 pm

9:30 pm

  • Turner ClassicMonkey Business (“You call this a party?  The beer is warm, the women cold and I’m hot under the collar.”)

10 pm

  • ABCDick Clark’s Primetime New Year’s Rockin’ Eve With Ryan Seacrest 2011 (premier)
  • E!The Soup (premier)
  • ESPN2– College Hoopies, Oklahoma State @ Gonzaga

11 pm

  • AMCBack to the Future Part III
  • BravoWatch What Happens Live: Andy’s New Year’s Party x 2 until 2:30 am
  • CNNNew Year’s Eve Live With Anderson Cooper and Kathy Griffin
  • FOXNew Year’s Eve Live
  • ESPNNew Year’s Eve: Year of the Quarterback Countdown
  • Turner ClassicHorsefeathers (“I’ve got to stay here, but there’s no reason why you folks shouldn’t go out into the lobby until this thing to blows over.”)
  • TNT300 (“Joey, how about those gladiators”)
  • Vs.NHL Winter Classic Eve Special

11:30 pm

  • CBS– Dave in repeats from 11/16
  • ABCDick Clark’s New Year’s Rockin’ Eve With Ryan Seacrest 2011
  • NBCNBC’s New Year’s Eve With Carson Daly

Midnight

12:30 am

  • Comedy200 Cigarettes (again)
  • FXArcher until 2 am
  • LifetimeThe Sisterhood of the Traveling Pants
  • Turner ClassicDuck Soup (“You’re a brave man. Go and break through the lines. And remember, while you’re out there risking your life and limb through shot and shell, we’ll be in be in here thinking what a sucker you are.”)

1 am

1:30 am

2 am

  • Vs.NHL Winter Classic Eve Special

2:30 am

3 am

  • ESPN– College Throwball, Chick-fil-A Bowl: Florida State v. South Carolina
  • VH1SNL until 6 am

3:30 am

  • Turner ClassicA Day at the Races (“Ice Cream!  Get your Tutsi Fruitsie Ice Cream!”)

4 am

  • AMCThree Stooges marathon until 6 am.
  • Toon– Actually Signs Off!  I’ll believe it when I see it.

5:30 am

  • Turner ClassicGo West (“I’d have thrashed him to within an inch of his life, but I didn’t have a tape measure.”)

Desert Island with Stossel, Carlson, and Hannity 20101230

I rarely write fiction, because I am better at scientific nonfiction.  However, listening to Stossel on the Fox “News” Network just now has stimulated me to imagine.  And what an imagination it is!

The three of them were on a junket and their small aeroplane crashed, gently, onto an uncharted island, sort of like Gilligan’s.  The three of them, plus the pilot (a rank amateur) and the other crew of one (a 55 year old mother of three) survived, but in very different camps.

Stossel awakened first and looked over the debris field.  “Hmmmm, there must be lots of peanuts in the wreckage.  They might be several meals.  I better get them before everyone else awakens.  Besides, they probably would not form a small government with me for our mutual advantage, so I will get those peanuts before they do.”

Hannity was next.  Having eaten most of the peanuts whislt the craft was in the air, he was full but cold.  “Well, I had better get some firewood together and get warm.  I hate the cold!”  So he assembled lots of firewood and used his fiery breath to start it.  “And they pay me for this!  HAHAHAHAHAHA!  If only they knew that I do not have any core values!  But my breath is still hot!”  Then he blew a fire into existence.

Tucker Carlson finally awakened and was both cold and hungry.  Not knowing how to do anything, he asked Hannity if he could warm up by the fire.  “No, to hell with you, Carlson, all you do is say stupid stuff.  This fire is mine, and you just get away from it.  I built it, and it is mine, mine, MINE!  That is how capitalism works!  I built the fire, so you can not have any of it, unless you have some gold.  Do you?”

“Well, I do, but it is being stored by the company that advertises on your show about how good it is to buy it.  Can I write you a certificate for some of it?”, Carlson asked.  Hannity was livid.  “No!  And you did not say what I wanted you to say, so just like on my shows, I will cut you off.  Go find Stossel.”

Poor little Carlson took off to find Stossel, calling out his name, plaintively.  The almost frozen person finally returned his call.  “Tucker, did you bring any fire with you?”

“Well, no, Sean would not share any with me.  Do you have any peanuts?”

“Yes, I have a pocketful of them.  Want some?”

“Sure!  Thanks!”

“Wait, Tucker!  I need either fire or gold for these peanuts.  Do you have any of those?”

“Well, I have some gold that the folks that advertise on Fox are holding for me.  Is that OK?”

“NO!  I want physical GOLD, and LOTS of it!  You really were fooled by the sponsors, weren’t you?  You really think that if times get hard that they would send you the gold?  HAHAHAHA!  But you might have fire.  I gathered up some firewood, on my own accord, since I know that the government would not find firewood for me.  All that I need is fire, because I never learnt how to make it myself.  If you can find some fire, we can share the wood that I found, for a fee from you to me, in addition to the fire.”

Poor Tucker was hungry, cold, and getting at his (few) wits’ end.  “OK, I will talk to Hannity and see if he will give me some fire.  But you might need to give him some peanuts in return.”

“Hell, no!  Carlson, you are probably the stupidest person I have ever seen.  No PEANUTS for FIRE, ever.  This is part of our platform!  Just do what Congress did in December, and let him keep more of his fire.  He will understand that you just want a little of it, only 30% of it, not nearly 40% of it.  He will be reasonable.”

“OK, John, I will try.  But I am getting cold and weak as it gets darker and colder.”

Stossel:  “No one should take care of you when it gets cold and dark.  You should have provided for yourself!  You should have had a pocketful of peanuts, and a BIC lighter!  Fool!”

Carlson dragged himself over to Hannity’s camp.  “John says that the Congress says that we can take around 28% of your fire.  I want it now.”

Hannity:  “OK, here you go, but you have to carry the live coals in your bare hands.  We can not give you a handout for it.  I resent giving my fire to you, but I want it to hurt you to take it.  But first, where is my gold or my peanuts?  No fire until I get one or the other!”

Carlson:  “My gold is only on paper, and Stossel will not give me any peanuts to give you!  He is full and fat, and you are warm and comfortable, and I am going back and forth, getting more hungry and much colder as we go.”

Hannity:  “Welcome to capitalism!  Your show failed, so now you are hungry and cold.  Nice to see you that way!”

Tucker finally crawled over to the pilot and the assistant’s little camp.  It had enough firewood to keep them from freezing, but not enough to keep them really warm.  They had also developed a food source from the nearby river, catching a fish.  The two of them were not either completely warm not completely full, but they allowed Carlson to join them in their little bit of goodness, provided that he would help them join the collective and provide firewood and food the next day.

Hannity finally starved to death in the third day, and Stossel expired from hypothermia the same day.  Hannity had firewood, but no energy to use it, and Stossel had food but no help to make a fire.

The three, who worked together, not only lived, but thrived.  In 2012 Tucker Carlson began to advocate about the advantages of being a liberal.

Well, an attempt at humor.  What do you think?

Warmest regards,

Doc

Crossposted at Docudharma.com and at Dailykos.com

Prime Time

Happy New Year Charlie Brown.  I shouldn’t be so flip about Stamford, they are after all the last team to beat UConn before the streak, but I don’t see any reason to think they will tonight unless it is a very bad night indeed.  The secret of their success is very similar to Tiger Woods’.  He starts playing to win on Thursday, most of the others play to make the cut until Saturday.  Likewise the Lady Huskies play crushing defense from the tip off and never show any mercy on scoring.

Later-

Dave in repeats from 12/6.  Conan in repeats from 11/17.

With any luck at all I’ll have your 24 hour New Year’s Eve listings up by 6 am.

Zap2it TV Listings, Yahoo TV Listings

Evening Edition

Evening Edition is an Open Thread

From Yahoo News Top Stories

1 UN warns Gbagbo against attack on Ivory Coast peacekeepers

by Dave Clark, AFP

1 hr 39 mins ago

ABIDJAN (AFP) – The United Nations sternly warned Ivory Coast strongman Laurent Gbagbo on Thursday not to allow an attack on the hotel where its peacekeepers are defending Alassane Ouattara’s shadow government.

UN Secretary General Ban Ki-moon warned UN troops would resist any assault, which he said could trigger civil war in the fragile West African state, after Gbagbo’s most notorious lieutenant vowed to storm his rival’s base.

In a statement, a “deeply concerned” Ban said UNOCI force would “use all necessary means to protect its personnel, as well as the government officials and other civilians at these premises of the hotel.”

2 Ivory Coast youth leader urges assault on Gbagbo rival’s HQ

by Christophe Koffi, AFP

Wed Dec 29, 4:26 pm ET

ABIDJAN (AFP) – Defiant Ivory Coast leader Laurent Gbagbo’s most notorious lieutenant on Wednesday urged the strongman’s diehard supporters to launch an unarmed assault on rival Alassane Ouattara’s UN-defended base.

West African diplomatic moves to save the fragile country from civil war took on new urgency when Gbagbo’s “Street General”, Charles Ble Goude, told youths to storm Ouattara’s heavily-protected Abidjan hotel headquarters.

Ouattara’s new United Nations ambassador Youssoufou Bamba further turned up the heat as he received his credentials from Secretary General Ban Ki-moon, warning: “We are on the brink of genocide, something should be done.”

3 UN says deaths down, but Ivory Coast still on the brink

by Dave Clark, AFP

Thu Dec 30, 1:29 pm ET

ABIDJAN (AFP) – The United Nations welcomed a dramatic drop in the number of killings in Ivory Coast on Thursday, even as new threats heightened the risk that its political crisis might end in a violent showdown.

The country’s internationally-recognised leader Alassane Ouattara called for West African mediators to find a rapid solution to the standoff, as supporters of strongman Laurent Gbagbo vowed to storm his hotel base.

The United Nations said the rate of killing in the crisis had dropped dramatically, with only six dead in the past week compared to 173 in the previous one, while rights abuses have declining “drastically”.

4 Russia’s Khodorkovsky to stay in jail six more years

by Maria Antonova, AFP

1 hr 28 mins ago

MOSCOW (AFP) – A Russian court Thursday ordered ex-oil tycoon Mikhail Khodorkovsky to stay in jail until 2017, sentencing him to 14 more years in a trial his defence said was influenced by strongman Vladimir Putin.

Judge Viktor Danilkin issued the new sentence for Khodorkovsky and his co-accused Platon Lebedev after finding them guilty of money laundering and embezzlement in a trial that started in March 2009.

With the sentence back-dated to his initial arrest in 2003, Khodorkovsky will stay in prison until 2017, removing a key opponent of president turned Prime Minister Vladimir Putin from the political scene for years to come.

5 Israel ex-president Katsav convicted of rape

by Michael Blum, AFP

Thu Dec 30, 11:01 am ET

TEL AVIV (AFP) – Former Israeli president Moshe Katsav was convicted of two counts of rape on Thursday, capping a four-year scandal that shocked the Jewish state and leaves him facing at least eight years in prison.

As a Tel Aviv court handed down the verdict, which also convicted Katsav on charges of sexual harassment, indecent acts and obstruction of justice, the visibly distraught 65-year-old muttered “No, no.”

On the street outside, protesters chanted: “All the world knows, Katsav is a criminal.”

6 Pope’s decree vows to tackle money-laundering in Vatican

by Ella Ide, AFP

Thu Dec 30, 12:50 pm ET

VATICAN CITY (AFP) – Pope Benedict XVI created a new financial authority Thursday aimed at tackling allegations of Vatican money-laundering and “financing of terrorism” after an embarrassing probe into Vatican bank officials.

Benedict’s decree, which addressed “the prevention and opposition to illegal financial activity”, comes three months after an investigation was launched into two senior figures at the bank.

“Sadly, peace in today’s society… is threatened by many things, including the improper use of the market and the economy,” the pope said in a letter accompanying the decree.

7 Spanish PM trumpets economic uptick, commits to reforms

AFP

Thu Dec 30, 12:42 pm ET

MADRID (AFP) – Spain’s embattled prime minister moved Thursday to reassure the country — and nervous markets — over the economy, announcing a return to positive growth in the fourth quarter and a small rise in the minimum wage and in pensions for 2011.

In a year-end press conference following a cabinet meeting, Jose Luis Rodriguez Zapatero also vowed that Spain would meet its public deficit target for next year, essential for easing investor fears of a Irish or Greek-style bailout of its battered economy.

The Spanish economy, the EU’s fifth largest, slumped into recession during the second-half of 2008 as the global financial meltdown compounded the collapse of the once-booming property market.

8 Spain draws last puff ahead of tough anti-smoking law

by Denholm Barnetson, AFP

Thu Dec 30, 10:19 am ET

MADRID (AFP) – Spaniards will wake up on Sunday to find that what many consider an inalienable right — puffing on a cigarette with a drink and some tapas at their local bar — has become illegal overnight.

On January 2, one of the laxest anti-smoking laws in Europe will have become one of the strictest, along with that of Ireland.

Spanish smokers will no longer be able to light up in bars, restaurants and cafes as new legislation takes effect that bans smoking in all enclosed public spaces.

9 Bloomberg takes flak over New York blizzard

by Paola Messana, AFP

Wed Dec 29, 6:17 pm ET

NEW YORK (AFP) – Criticism of New York mayor Michael Bloomberg snowballed Wednesday as the top city official bore the brunt of the blame for the lackluster response to one of the worst blizzards in decades.

While airports worked to clear a massive backlog of flights, frustration at the paralysis turned to anger as reports emerged of ambulances failing to reach critical patients, in one case leading a woman to lose her baby.

“Clearly, the response was unacceptable,” speaker Christine Quinn told a special session of the city council, giving voice to hundreds of complaints from disgruntled New York residents.

10 Injured Ponting ruled out of final Ashes Test

AFP

Thu Dec 30, 10:57 am ET

SYDNEY (AFP) – Michael Clarke will captain Australia for the first time and Usman Khawaja will make an historic debut in next week’s final Ashes Test in the absence of injured skipper Ricky Ponting.

Clarke was promoted on Thursday from vice-captain to lead the team after Ponting was ruled out with a fractured little finger.

Clarke will also captain Australia in the limited overs and Twenty20 matches against England following the Test series, with Cameron White his deputy.

11 Rattner settles with Cuomo for $10 million

By Jonathan Steeple, Reuters

1 hr 13 mins ago

NEW YORK (Reuters) – Former Obama administration auto industry czar Steven Rattner agreed to pay $10 million to resolve lawsuits by New York’s attorney general over kickbacks allegedly paid to do business with the state’s pension fund.

Rattner is the most prominent outside executive and last major figure to resolve charges in a multiyear “pay to play” corruption probe that involved the roughly $132.8 billion New York State Common Retirement Fund.

New York Attorney General Andrew Cuomo said on Thursday the settlement ends two lawsuits by his office over alleged kickbacks dating to 2005 and 2006 when Rattner worked for Quadrangle Group, the private equity firm he co-founded.

12 Dollar weakens broadly, stocks lose ground

By Walter Brandimarte, Reuters

Thu Dec 30, 12:38 pm ET

NEW YORK (Reuters) – The dollar weakened broadly on Thursday on expectations of low bond yields continuing into 2011, while U.S. and European stocks gave back part of the recent gains that had taken global equities close to September 2008 highs.

The Swiss franc soared to record highs against the dollar and the euro as concerns about the European debt crisis reinforced its safe-haven appeal among currency investors.

U.S. stocks dipped in spite of a solid batch of economic data as investors avoided taking on more risk before the new year. Still, the S&P 500 appeared headed for its best December in nearly two decades and a MSCI index of global stocks remained close to September 2008 highs.

13 Russia’s Khodorkovsky sentenced, West concerned

By Alexei Anishchuk, Reuters

Thu Dec 30, 1:47 pm ET

MOSCOW (Reuters) – Former tycoon Mikhail Khodorkovsky’s jail term was extended until 2017 on Thursday when he was convicted of theft and money-laundering in a trial condemned in the West as politically motivated.

With Khodorkovsky and co-defendant Platon Lebedev watching from a glass-walled courtroom cage at the close of their trial, the judge said there was no way they could be reformed without “isolation from society.”

Russia’s leading human rights activist called the sentence “monstrous” for the defendants and their country, and the United States said it appeared to result from “an abusive use of the legal system for improper ends.”

14 Minnesota sues 3M over pollution claims

By James B. Kelleher, Reuters

2 hrs 29 mins ago

CHICAGO (Reuters) – The state of Minnesota sued 3M Co on Thursday, saying that the company contaminated the state’s waters for decades with chemicals used in some of its best known products, including Scotchgard stain repellent.

The lawsuit, filed by Minnesota Attorney General Lori Swanson, seeks unspecified damages from 3M.

The company did not respond to a request for a comment.

15 Israel’s ex-president Katsav guilty of rape

By Rami Amichai, Reuters

Thu Dec 30, 12:56 pm ET

TEL AVIV (Reuters) – Former Israeli President Moshe Katsav was found guilty of rape and other sex crimes on Thursday, in what Prime Minister Benjamin Netanyahu called a sad day for the Jewish state.

Katsav, who could now face years in prison, had denied charges he twice raped an aide when he was a cabinet minister in the late 1990s, and molested or sexually harassed two other women who worked for him during his 2000-2007 term as president.

But a three-judge panel said his testimony had been “riddled with lies.”

16 China factory inflation eases, yuan hits record

By Kevin Yao and Chen Aizhu, Reuters

Thu Dec 30, 3:20 am ET

BEIJING (Reuters) – Chinese inflation showed signs of cresting in a manufacturing survey on Thursday, an early indication that the government will be able to stick to its course of gradual rather than aggressive monetary tightening.

An easing of price pressures could also cap this week’s jump the yuan to a record high against the dollar, which the central bank said had played an important role in taming inflation.

HSBC’s China Purchasing Mangers’ Index fell to a three month-low of 54.4 in December from 55.3 in November, suggesting that the pace of business expansion in the factories of the world’s second-largest economy was moderating but still strong.

17 Ivory Coast on brink of "genocide": envoy to U.N.

Reuters

Thu Dec 30, 9:38 am ET

ABIDJAN/UNITED NATIONS (Reuters) – Political unrest following Ivory Coast’s disputed presidential election has brought the West African country to the “brink of genocide,” its new ambassador to the United Nations said.

World leaders have stepped up pressure on incumbent leader Laurent Gbagbo to quit in favor of Alassane Ouattara, widely recognized as having won the vote.

Youssoufou Bamba, appointed as ambassador to the United Nations by Ouattara, described him as the rightful ruler of Ivory Coast.

18 Ivorian refugees flood into Liberian border towns

By Alphonso Toweh, Reuters

Thu Dec 30, 11:30 am ET

OLD LOGUATUO, Liberia (Reuters) – Gluee Teah walked through the forest for a day and crossed a river to escape the political turmoil that is gripping Ivory Coast, burdened by her two young daughters and an unborn child.

“I am nine months pregnant,” she said, as her three-year-old daughter sucked on the tattered edge of her dress in this Liberian border town. “There is not much I can do. Who will help me take care of my children?”

Teah is among the more than 16,000 Ivorians who have fled their country to neighboring Liberia since a November 28 election, fearing that an ugly dispute over who won the vote will rekindle the civil war of 2002-03.

19 Harsh U.S. words for Russia, but little impact on ties

By Arshad Mohammed and Ross Colvin, Reuters

2 hrs 29 mins ago

WASHINGTON (Reuters) – The United States suggested on Thursday the sentencing of a former Russian tycoon to six more years in prison was an abuse of justice, and a senior U.S. official said it may impede Russia’s entry into the World Trade Organization.

Despite the harsh U.S. words, analysts said the treatment of Mikhail Khodorkovsky and his co-defendant Platon Lebedev was unlikely to undercut the White House effort to work with the Kremlin where it can on strategic and security issues.

A Russian judge ordered Khodorkovsky jailed until 2017 after being convicted of theft and money-laundering in a case seen by the West as a test of the rule of law in Russia and as a political vendetta against an adversary of Russian Prime Minister Vladimir Putin.

20 Cuomo gets second chance

By Daniel Trotta and Basil Katz, Reuters

Thu Dec 30, 1:50 pm ET

NEW YORK (Reuters) – When Democrat Andrew Cuomo becomes New York governor on Saturday he inherits a $10 billion budget deficit, a notoriously corrupt political system and the legacy of his father, the popular former Governor Mario Cuomo.

But if he succeeds, the new job also offers a second chance on the national stage for Cuomo, 53, who became the youngest-ever U.S. secretary of housing and urban development under President Bill Clinton in 1997 but whose signature achievement there backfired.

“The Democratic Party does not have a lot of tall trees out there on the plain. If he is modestly successful on this prairie, he will stand tall, it’s not going to take a lot,” said Fred Siegel, a senior fellow at the Manhattan Institute think tank.

21 Home foreclosures jump in 3rd quarter: regulators

By Dave Clarke, Reuters

Wed Dec 29, 1:02 pm ET

WASHINGTON (Reuters) – U.S. home foreclosures jumped in the third quarter and banks’ efforts to keep borrowers in their homes dropped as the housing market continues to struggle, U.S. bank regulators said on Wednesday.

The regulators said one reason for the increase in foreclosures is that banks have “exhausted” options for keeping many delinquent borrowers in their homes through programs such as loan modifications.

Newly-initiated foreclosures increased to 382,000 in the third quarter, a 31.2 percent jump over the previous quarter and a 3.7 percent rise from the same quarter a year ago, the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) said in a quarterly mortgage report.

22 Budget woes force state parks to delay maintenance

By CHRIS BLANK, Associated Press

58 mins ago

KAISER, Mo. – At state parks across the nation, this is the toll of the deepening budget crisis and years of financial neglect: crumbling roads, faltering roofs, deteriorating restrooms.

Electrical and sewer systems are beginning to give out, too, as are scores of park buildings, some of them built by the Civilian Conservation Corps during the Great Depression. In a few places, aging bridges have been detoured and tunnels blocked off because of falling debris.

The tough economy has made money scarcer for administrators at some of the country’s most treasured public spaces who have been forced to postpone maintenance and construction projects, creating a huge backlog of unfinished work that would cost billions of dollars to complete.

23 What you pay for Medicare won’t cover your costs

By RICARDO ALONSO-ZALDIVAR, Associated Press

25 mins ago

WASHINGTON – You paid your Medicare taxes all those years and want your money’s worth: full benefits after you retire.

Nearly three out of five people say in a recent Associated Press-GfK poll that they paid into the system so they deserve their full benefits – no cuts.

But a newly updated financial analysis shows that what people paid into the system doesn’t come close to covering the full value of the medical care they can expect to receive as retirees.

Two words- Single Payer.

24 O’Donnell: Spending accusations are ‘thug’ tactics

By BEN EVANS, Associated Press

3 mins ago

WASHINGTON – Failed U.S. Senate candidate Christine O’Donnell said Thursday that accusations she misspent campaign funds are politically motivated and stoked by disgruntled former campaign workers.

The Delaware Republican appeared on several network morning shows to defend herself a day after The Associated Press reported federal authorities have launched a criminal probe to determine whether she broke the law by using campaign money to pay personal expenses.

“There’s been no impermissible use of campaign funds whatsoever,” O’Donnell told ABC’s “Good Morning America.”

25 Disgraced ex-Israeli president convicted of rape

By JOSEF FEDERMAN, Associated Press

1 min ago

JERUSALEM – Former Israeli President Moshe Katsav was convicted of rape Thursday, a dramatic fall from grace for a man who rose from humble beginnings to become a symbol of achievement for Jews of Middle Eastern origin.

The disgraced politician, who had rejected a plea bargain that would have kept him out of jail, will likely be sentenced to four to 16 years in prison. The verdict was seen as a victory for the Israeli legal system and for women’s rights in a decades-long struggle to chip away at the nation’s macho culture, which once permitted political and military leaders great liberties.

“The court sent two clear and sharp messages: that everyone is equal and every woman has the full right to her body,” Prime Minister Benjamin Netanyahu said in a statement. But he added that it was “a sad day for Israel and its citizens.”

26 Daughter, wife of AZ official accused in sex case

By AMANDA LEE MYERS, Associated Press

6 mins ago

PHOENIX – The daughter of a county supervisor has been arrested on suspicion of sexual misconduct with the same teenage boy that her mother is accused of sexually abusing over a three-year period, police said Thursday.

Rachel Katherine Brock, 21, was arrested Wednesday on three counts of sexual conduct with a minor and one count of transmitting obscene material as part of an ongoing investigation surrounding her mother, 48-year-old Susan Brock.

Both women were being held without bond at the Maricopa County jail.

27 US teen birth rate still far higher than W. Europe

By MIKE STOBBE, AP Medical Writer

2 hrs 38 mins ago

ATLANTA – The rate of teen births in the U.S. is at its lowest level in almost 70 years. Yet, the sobering context is that the teen pregnancy rate is far lower in many other countries. The most convincing explanation is that contraceptive use is much higher among teens in most Western European countries.

Last week, U.S. health officials released new government figures for 2009 showing 39 births per 1,000 girls, ages 15 through 19 – the lowest rate since records have been kept on this issue.

That’s close to the teen birth rate for Romania, Turkey and Bulgaria in 2007, the latest numbers available from the World Bank, which collects a variety of data gauging international development.

28 NYC mayor: City’s snowstorm response unacceptable

By JENNIFER PELTZ, Associated Press

2 hrs 42 mins ago

NEW YORK – Mayor Michael Bloomberg acknowledged Thursday that the city’s response to the blizzard that dropped 20 inches of snow was “inadequate and unacceptable” and said it would be reviewed, but he continued to be criticized, including by one politician sharing the spotlight with him.

At an event in Queens where Bloomberg gave an update on the cleanup to reporters, Queens borough President Helen Marshall took the microphone to say her residents need more help. “Where is the plow?” she said.

The city’s cleanup efforts, which left streets covered in snow days after the storm had finished, “was slower than anyone would have liked,” Bloomberg said.

29 Cleanup of oil-tainted Gulf Coast nears end

By CAIN BURDEAU, Associated Press

Thu Dec 30, 1:23 pm ET

EAST GRAND TERRE ISLAND, La. – Dig 2 feet into the sand on this wind-swept beach and up comes the foul smell of oil.

The unmistakable whiff of crude eight months after the BP spill is one of the last in-your-face reminders of the long, tainted summer on the Gulf Coast.

For months, in what BP calls Operation Deep Clean, crews have been scouring the Gulf Coast’s sandy shores for oil – digging, scraping, tilling and sifting beach after beach.

30 Vatican creates financial watchdog amid bank probe

By NICOLE WINFIELD, Associated Press

Thu Dec 30, 12:49 pm ET

VATICAN CITY – The Vatican on Thursday created a financial watchdog agency and issued new laws to fight money laundering and terrorist financing in a major effort to shed its image as a tax haven that for years has been mired in secrecy and scandal.

The decrees, which go into effect April 1, were passed as the Vatican’s own bank remains implicated in a money-laundering investigation that resulted in 23 million euros ($31 million) being seized and its top two officials placed under investigation.

The bank, formally known as the Institute for Religious Works, or IOR, is one of several Vatican offices that are covered by the new financial transparency rules, which were adopted primarily to comply with European Union norms. The Vatican city state’s governing administration, the department that controls the pope’s vast real estate holdings, even the Holy See’s pharmacy, museum and TV station are covered as well.

31 UK’s Thatcher appealed to Iran over US hostages

By DAVID STRINGER, Associated Press

Thu Dec 30, 10:25 am ET

LONDON – British Prime Minister Margaret Thatcher made a previously unknown effort to secure the release of American hostages in Iran and predicted that Ronald Reagan would confound expectations following his election, newly disclosed files revealed Thursday.

The documents from 1980, made public under Britain’s 30-year disclosure rule, also recount Thatcher’s clashes with her central bank governor, diplomats and royal officials, burnishing her reputation as a combative national leader.

Thatcher, who served as prime minister from 1979 to 1990 and was nicknamed the Iron Lady for her tough stance against communism, is recorded as attempting to exert her influence over a wide range of events.

32 Texas, EPA fight over regulations grows fierce

By RAMIT PLUSHNICK-MASTI, Associated Press

Thu Dec 30, 12:49 pm ET

HOUSTON – A longstanding tit-for-tat between Texas and the U.S. Environmental Protection Agency over how to regulate pollution has grown fierce in recent months, leaving industry frustrated and allowing some plants and refineries to spew more toxic waste into the air, streams and lakes than what is federally acceptable.

Both sides and conservation groups agree the battle has put the health of Texas residents and the environment at risk. But the back-and-forth over everything from who should issue permits to whether state agencies are properly cracking down on polluters shows no signs of slowing down.

The fight has gotten so ugly that the EPA took the unprecedented step this month of announcing it will directly issue greenhouse gas permits to Texas industries beginning in January after the state openly refused to comply with new federal regulations.

33 Ohio child cancers confound parents, investigators

By JOHN SEEWER, Associated Press

2 hrs 36 mins ago

CLYDE, Ohio – Every time his kids cough, Dave Hisey’s mind starts to race. Is it cancer? Is it coming back?

His oldest daughter, diagnosed with leukemia nearly five years ago when she was 13, is in remission. His 12-year-old son has another year of chemotherapy for a different type of leukemia. And his 9-year-old daughter is scared she’ll be next.

Hisey is not alone in fearing the worst. Just about every mom and dad in this rural northern Ohio town gets nervous whenever their children get a sinus infection or a stomachache lingers. It’s hard not to panic since mysterious cancers have sickened dozens of area children in recent years.

34 Adult drive-thru store in Alabama offers privacy

By JAY REEVES, Associated Press

Thu Dec 30, 11:31 am ET

HUNTSVILLE, Ala. – Gabrielle Silva takes down a customer’s order from the drive-thru window, stuffs a bag full of products and passes it outside to the couple waiting in a car.

“Thanks, and I put some free condoms in there, too!” Silva chirps.

In this technology-savvy north Alabama city, visitors won’t just find burgers and prescriptions at the drive-thru window.

35 Fit at 50 can mean fit at 60, 70, 80 with changes

By LEANNE ITALIE, Associated Press

Thu Dec 30, 11:12 am ET

At 45, DeEtte Sauer was a dead woman walking.

She was morbidly obese, her heart disease so serious a doctor warned her to expect “an event at any time.” Eaten up by her marketing career, struggling to raise three kids, she smoked, drank and never, ever exercised.

Sauer remembers a vacation when – at 5-foot-5 and 230 pounds – she couldn’t make it onto a small boat for a day out with her family. “That’s when it hit me. I was an elected cripple. I had done it to myself.”

36 Grizzly bear deaths near Yellowstone rise in 2010

By MATTHEW BROWN, Associated Press

Thu Dec 30, 9:44 am ET

BILLINGS, Mont. – Grizzly bear deaths neared record levels for the region around Yellowstone National Park in 2010, but government biologists said the population remains robust enough to withstand the heavy losses.

An estimated 75 of the protected animals were killed or removed from the wild, according to a government-sponsored grizzly study team. That equates to one grizzly gone for every eight counted this year in the sparsely populated Yellowstone region of Montana, Wyoming and Idaho.

The deaths were blamed primarily on grizzlies pushing into inhabited areas, where bears get into trouble as they search out food in farmyards and from the big game herds also stalked by hunters. Despite those conflicts, researchers recently reported the population topped 600 animals for the first time since grizzly recovery efforts began in the 1970s.

37 Calif. liver recipient, 13, on mission of thanks

By CHRISTINA HOAG, Associated Press

Thu Dec 30, 4:39 am ET

PASADENA, Calif. – Eleven-year-old Mikey Carraway’s liver had failed – doctors had two weeks at most to find an organ donor to save his life. Two days later, they had one_ 18-year-old Johnny Hernandez, who suffered a fatal brain injury in a motorcycle crash.

Mikey, now 13, and his mom Shaheda Wright thanked the Hernandez family in person Wednesday in a rare meeting between a donor family and an organ recipient.

“We just want to say to you that if it wasn’t for your decision at tough time in your life, my son wouldn’t be here today,” Wright said.

38 Rig owner refuses to honor oil spill subpoenas

By HARRY R. WEBER, Associated Press

Wed Dec 29, 10:58 pm ET

NEW ORLEANS – The owner of the rig that exploded in the Gulf of Mexico is refusing to honor subpoenas from a federal board that has challenged the company’s involvement in monitoring the testing of a key piece of equipment that failed to stop the oil spill disaster.

Transocean said the U.S. Chemical Safety Board does not have jurisdiction in the probe, so it doesn’t have a right to the documents and other items it seeks. The board told The Associated Press late Wednesday that it does have jurisdiction and it has asked the Justice Department to intervene to enforce the subpoenas.

Last week, the board demanded that the testing of the failed blowout preventer stop until Transocean and Cameron International are removed from any hands-on role in the examination. It said it’s a conflict of interest. The request is pending.

Don’t let it bring you down. It’s only castles burning.

(2 pm. – promoted by ek hornbeck)

Big Tent Democrat commented earlier today at Talkleft in his post Policy And Politics: The Economy that:

Discussing E.J. Dionne’s column today, Booman makes some good points:

Considering that [the column] is supposed to be about [Dems] regaining the initiative, it’s pretty weak to lecture the White House about its tendency to defend itself and “the left” about never being satisfied. Those things aren’t going to change. We can be critical of that reality, but we ought not offer it up as something to fix so that we can get our mojo back.

In fact it is not something to fix. The White House should tout its accomplishments. They are in the politics business after all. And people dissatisfied with what the White House is doing should say so and work to make them do what they want. That’s how it works. But both Booman and Dionne miss the connection between the political problems Dems have and the economic policies of the Obama Administration.

[…]

And these failures explain almost all of the political trouble the Democrats are in. Booman writes:

There are two things that will help us get our mojo back: Speaker Boehner and Obama’s reelection campaign. That’s all we need. And improving economy would be nice, but realistically we are going to be fighting over who is to blame for high unemployment and who has a better plan to get something through Congress that will create jobs.

(Emphasis supplied.) If that is where the political battle is going to be fought, then the Dems’ political fortunes do not look bright.

“An improving economy would be nice but realistically we are going to be fighting over who is to blame for high unemployment”?

Booman of course and as usual has his finger on the pulse of reality, and like many strong Obama supporters knows deep in his heart that it’s far more important for them to “win” than it is to have the administration produce results, even if he has to lose to win.

The man is a genius at political analysis, and all he asks is that everyone take a deep breath, think hard, and give Obama all the credit due him. After all, he’s already restored the rule of law and arranged crackdowns on all those greedy people all across the country who selfishly want to keep their jobs and their homes, and now he has all those greedy retirees who are scheming for free lifetime handouts from social security in his sights. He’s a savior.

What more could you ask for? Besides, he looks ‘dreamy’ in a bomber jacket, and have you seen the latest photos of Michelle? Swoon. And the puppy.

Don’t forget the puppy.

And let’s not forget, ever, just how bad things would be if Obama and Geithner hadn’t saved the economy from it’s free fall plummet. My gawd, we all know there were investment bankers on Wall Street starving, literally wasting away into mere shadows of themselves, before the grace of Obama reached out to them and quantitatively eased them out of their misery, saving the rest of the country as a side effect…

OilPrice.com: Invest In The USA? Why Bother?

Capital will flow to where there’s money to be made. It’s just that simple. America’s “accomodative” monetary policy has spurred a new wave of corporate borrowing. And where are these multinational entities deploying these new investments? Not in the United States. That money is flowing into emerging economies. Bloomberg reported on the trend in Bernanke’s ‘Cheap Money’ Stimulus Spurs Corporate Investment Outside U.S-

“You’re seeing leakage from quantitative easing,” said Stephen Wood, chief market strategist for Russell Investments in New York, which has $140 billion under management. “That leakage is going into emerging markets, commodity-based economies, commodities themselves and non-U.S. opportunities.”

U.S. corporations have issued more than $1.07 trillion in debt so far this year, according to data compiled by Bloomberg. Foreign companies also are tapping U.S. markets for cheap cash, selling $605.9 billion in debt through Nov. 15 compared with $371.8 billion for all of 2007, before the Fed cut the overnight bank-lending rate to a range of zero to 0.25 percent…

Corporate cash sloshing across U.S. borders is an unavoidable consequence of the Fed’s low-rate strategy, Wood said…

U.S. corporations’ overseas investment in the first half of 2010 exceeded the amount that foreign firms spent in the U.S. on factories and acquisitions at an annual rate of almost $220 billion, according to the Commerce Department.

In the first half of 2006, the last year before the financial crisis, the net flow favored the U.S. at an annual rate of about $30 billion.

And let’s also not forget that, as Chris Hedges pointedly pointed out the other day, for anyone that was still trying to sleep, that:

Our manufacturing base has been dismantled. Speculators and swindlers have looted the U.S. Treasury and stolen billions from small shareholders who had set aside money for retirement or college. Civil liberties, including habeas corpus and protection from warrantless wiretapping, have been taken away. Basic services, including public education and health care, have been handed over to the corporations to exploit for profit. The few who raise voices of dissent, who refuse to engage in the corporate happy talk, are derided by the corporate establishment as freaks.

The façade is crumbling. And as more and more people realize that they have been used and robbed, we will move swiftly from Huxley’s “Brave New World” to Orwell’s “1984.” The public, at some point, will have to face some very unpleasant truths. The good-paying jobs are not coming back. The largest deficits in human history mean that we are trapped in a debt peonage system that will be used by the corporate state to eradicate the last vestiges of social protection for citizens, including Social Security. The state has devolved from a capitalist democracy to neo-feudalism. And when these truths become apparent, anger will replace the corporate-imposed cheerful conformity. The bleakness of our post-industrial pockets, where some 40 million Americans live in a state of poverty and tens of millions in a category called “near poverty,” coupled with the lack of credit to save families from foreclosures, bank repossessions and bankruptcy from medical bills, means that inverted totalitarianism will no longer work.

And if all of that still leaves you snoring softly in the contented assurance that everything is just fine and dandy and all’s well with the world, then you may not want to read what Fellow at the Campaign for America’s Future, consulting partner with the Cognitive Policy Works in Seattle, and one of the few trained social futurists in North America Sara Robinson had to say about the bigger picture that is the backdrop to everything above in this diary, last year in Is the U.S. on the Brink of Fascism?:

All through the dark years of the Bush Administration, progressives watched in horror as Constitutional protections vanished, nativist rhetoric ratcheted up, hate speech turned into intimidation and violence, and the president of the United States seized for himself powers only demanded by history’s worst dictators. With each new outrage, the small handful of us who’d made ourselves experts on right-wing culture and politics would hear once again from worried readers: Is this it? Have we finally become a fascist state? Are we there yet?

And every time this question got asked, people like Chip Berlet and Dave Neiwert and Fred Clarkson and yours truly would look up from our maps like a parent on a long drive, and smile a wan smile of reassurance. “Wellll…we’re on a bad road, and if we don’t change course, we could end up there soon enough. But there’s also still plenty of time and opportunity to turn back. Watch, but don’t worry. As bad as this looks: no — we are not there yet.”

In tracking the mileage on this trip to perdition, many of us relied on the work of historian Robert Paxton, who is probably the world’s pre-eminent scholar on the subject of how countries turn fascist. In a 1998 paper published in The Journal of Modern History, Paxton argued that the best way to recognize emerging fascist movements isn’t by their rhetoric, their politics, or their aesthetics. Rather, he said, mature democracies turn fascist by a recognizable process, a set of five stages that may be the most important family resemblance that links all the whole motley collection of 20th Century fascisms together. According to our reading of Paxton’s stages, we weren’t there yet. There were certain signs — one in particular — we were keeping an eye out for, and we just weren’t seeing it.

And now we are. In fact, if you know what you’re looking for, it’s suddenly everywhere. It’s odd that I haven’t been asked for quite a while; but if you asked me today, I’d tell you that if we’re not there right now, we’ve certainly taken that last turn into the parking lot and are now looking for a space. Either way, our fascist American future now looms very large in the front windshield — and those of us who value American democracy need to understand how we got here, what’s changing now, and what’s at stake in the very near future if these people are allowed to win — or even hold their ground.

Get prepared for 2011. Read all of Sara’s three part series:

Happy New Year.

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”.

Jessica B. Harris: Prosperity Starts With a Pea

AT year’s end, people around the world indulge in food rituals to ensure good luck in the days ahead. In Spain, grapes eaten as the clock turns midnight – one for each chime – foretell whether the year will be sweet or sour. In Austria, the New Year’s table is decorated with marzipan pigs to celebrate wealth, progress and prosperity. Germans savor carp and place a few fish scales in their wallets for luck. And for African-Americans and in the Southern United States, it’s all about black-eyed peas.

Not surprisingly, this American tradition originated elsewhere, in this case in the forests and savannahs of West Africa. After being domesticated there 5,000 years ago, black-eyed peas made their way into the diets of people in virtually all parts of that continent. They then traveled to the Americas in the holds of slave ships as food for the enslaved. “Everywhere African slaves arrived in substantial numbers, cowpeas followed,” wrote one historian, using one of several names the legume acquired. Today the peas are also eaten in Brazil, Central America and the Caribbean.

Elizabeth Warren: New Consumer Agency Is Frightfully Necessary — And Late

No one has missed the headlines: Haphazard and possibly illegal practices at mortgage-servicing companies have called into question home foreclosures across the nation.

The latest disclosures are deeply troubling, but they should not come as a big surprise. For years, both individual homeowners and consumer advocates sounded alarms that foreclosure processes were riddled with problems.

While federal and state investigators are still examining exactly what has gone wrong and why, two things are clear.

First, several financial services companies have already admitted that they used “robo-signers,” false declarations, and other workarounds to cut corners, creating a legal nightmare that will waste time and money that could have been better spent to help this economy recover. Mortgage lenders will spend millions of dollars retracing their steps, often with the same result that families who cannot pay will lose their homes.

Second, this mess might well have been avoided if the Consumer Financial Protection Bureau had been in place just a few years ago.

Robert Scheer: In Money-Changers We Trust

Two years into the Obama presidency and the economic data is still looking grim. Don’t be fooled by the gyrations of the stock market, where optimism is mostly a reflection of the ability of financial corporations-thanks to massive government largesse-to survive the mess they created. The basics are dismal: Unemployment is unacceptably high, the December consumer confidence index is down and housing prices have fallen for four months in a row. The number of Americans living in poverty has never been higher, and a majority in a Washington Post poll said they were worried about making their next mortgage or rent payment.

In a parallel universe lives Peter Orszag, President Barack Obama’s former budget director and key adviser, who even faster than his mentor, Robert Rubin, has passed through that revolving platinum door linking the White House with Wall Street. The goal is to use your government position to advance the interests of your future employer, and Orszag and Rubin’s actions in the government and then at Citigroup provide stunning examples of the synergy between big government and high finance.

William Pfaff: A Far From Happy New Year

The United States will begin 2011 waging one major war that is now 10 years old and showing serious signs of being lost. Another of its wars, Iraq, has already been lost by the objective standards of who now controls the country and who can be expected to continue controlling it-certainly not the U.S., but Iran, America and Israel’s main enemy in the region. The U.S. has engaged itself in a similar role of combatant in a half-dozen smaller conflicts against self-proclaimed enemy bands in Yemen, the Horn of Africa and western North Africa. . . . . .

The U.S. is entering the new year, and a new age, still with a policy paradigm of aggression, war and global domination in the stubborn belief that the agency for accomplishing its security is to attack religious radicalism in other people’s countries, teach democracy to societies ill-equipped for it and fight nationalist resistance (other people’s nationalism, not America’s). The inevitable result will simply be more aggression, war, reciprocal terrorism, defeat and failure. This promises a far from happy new year!

Dan Collins: Bloomberg’s Blizzard Blunder

When snow falls in much-larger-than-usual amounts, people are inconvenienced, irritated and uncomfortable. The job of elected officials is twofold: 1) Get rid of the snow and 2) Sound sympathetic. The first takes a while, but the second is a no-brainer. Be on the scene and never let anybody sound more concerned than you are about getting things back to normal. Never, ever let the public suspect that you think they’re over-dramatizing their suffering.

As in: Mayor Michael Bloomberg. “The world has not come to an end. The city is going fine. Broadway shows were full last night,” the mayor said in his famous initial response. “There are lots of tourists here enjoying themselves. I think the message is that the city goes on.”

Nononononono.

This has to go down as one of the worst snow responses in political history. Every single sentence is terrible beyond belief. The tourists are happy? Tens of thousands of actual voting residents are stranded. Their cars are buried. Their subways aren’t working. And you’re exulting over the ability of the tourists to get to a Spider-Man preview?

In one day, the Bloomberg mayoralty became a Spider-Man preview itself, thanks to terrible snow politics.

David Sirota: The New York Times‘ Versailles Manifesto

Over the years, we’ve all seen solid examples of the Versailles mentality in our media — ie. the mentality that glorifies Washington and its inhabitants as heroes saving the rest of America from itself. But usually these examples are a bit subtle in how they weave the arrogance into the prose. Usually, you have to really stop and do a careful double-take when you see a piece of Versailles propaganda.

That’s why this recent piece from the notoriously servile Matt Bai in the New York Times is such a groundbreaker. Never have I seen such a monumentally blatant piece of Versailles triumphalism. In that sense, it is truly The Versailles Manifesto.

E.J. Dionne, Jr.: Will Liberals Learn From Adversity?

And both the liberals and Obama need to escape the bubbles of legislative and narrowly ideological politics and re-engage the country on what can only be called a spiritual level. Modern American liberalism is not some abstract and alien creed. At its best, it marries a practical, get-things-done approach to government with a devotion to fairness, justice and compassion. These sentiments are grounded in the nation’s religious traditions and also in our commitment to community-building that Alexis de Tocqueville so appreciated.

Conservatives talk so much about first principles that they seem to forget how difficult it is to govern effectively. Liberals talk so much about specific programs that they forget how much citizens care about the values that undergird those programs and the moral choices that nurture those values.

In 2010, American liberals should have been cured of any overconfidence. Now, they and the president need to rekindle the hope that this year will be most remembered not for the defeats, but for the first steps taken down a more promising road.

Catfood

A few bloggers have highlighted yesterday’s piece by Delaney and Grim at the Huffington Post, many of them concentrating on the Dickensian conditions that prevailed before Social Security and the New Deal-

The talk of taking Green’s children was no vacant threat. In most states, children were not allowed to live in poorhouses. Families forced into them would be split up, with children either bound for orphanages, foster homes or apprenticeships. Pennsylvania, which banned poorhouses from hosting children between the ages of two and 16, was typical. Hundreds of children in just one home, the Chester County Poorhouse, were “bounded out” — given to other families — in the middle of the 19th Century, according to an archive of their names that survives.

In 1936 a woman’s aunt and uncle hoped to extract their niece and her new baby from a poorhouse in New Hampshire. They sent a letter to a county commissioner saying they would take care of the hapless pair at their home, but the commissioner wouldn’t allow it, according to Wagner. The commissioner didn’t doubt their ability to provide, but he figured the woman would have another burdensome baby. “If I am presented with definite proof from the Merrimack County Farm, that [she] has had a sterile operation, I have no objection to her going to live in your home.”

The unemployed who were denied outdoor relief by the city had another option: To be auctioned off to the lowest bidder and live as a boarder. The city would reimburse the homeowner for the specified amount in exchange for putting the pauper up. The jobless person was expected to work without pay in exchange.

And there are lots of stories like that in it, but I’d like to draw your attention to some of the more modern events they are reporting-

The Poorhouse: Aunt Winnie, Glenn Beck, And The Politics Of The New Deal

Arthur Delaney and  Ryan Grim, The Huffington Post

12-29-10 10:08 PM

Though Republican hostility to the New Deal isn’t new, the Democratic embrace of language that has long been used to undermine belief in government is. Announcing a pay freeze for federal workers, Obama reasoned that “small businesses and families are tightening their belts. Their government should, too.” With nearly one in ten people unable to find work, Democrats compete with Republicans over who can sound more concerned about the debt and deficit, despite a longstanding economic consensus that a deficit is a good thing to have in times of slow growth and high unemployment.

What is dangerous about Social Security is that it works. It is evidence that people can do a better job insuring against life’s cruel downturns by working together and pooling resources than by going it alone in the market. If the financial market and its representatives in Washington succeed in undermining Social Security, they will not only have access to trillions of dollars, but will have dealt a blow to a leading symbol of the potential collective action. It’s no coincidence that cutting Social Security is often described as a “signal” to financial markets. Even Obama, after his election, echoed such language. “We have to signal seriousness in this by making sure some of the hard decisions are made under my watch, not someone else’s,” Obama said before his inauguration.



During a meeting with progressive bloggers, Obama was asked to defend his administration’s failure to stem the foreclosure tide. The president’s worry, he said, was that his anti-foreclosure program might accidentally help people who didn’t deserve it. “The biggest challenge is how do you make sure that you are helping those who really deserve help, and, if they get some temporary help, can get back on their feet,” Obama said, specifically adding that he didn’t want the effort to assist “people who through no fault of their own just can’t afford their house anymore because of the change in housing values or their incomes don’t support it.”



Obama’s confusion about Social Security’s origins would seem mundane if it weren’t for the payroll tax holiday he pushed, the deficit commission targeting Social Security he created, and the reports that he’ll call for cuts to the program in his State of the Union address.

Social Security reform is necessary, the program’s opponents say, because its future solvency is in question: As a result of the Baby Boom and advances in medicine, more people are living longer. But the actuaries who set up Social Security in the 1930s forecast with an eerie exactitude how much life expectancies would increase — a detail that is always ignored. And the system was reformed by the Greenspan Commission in 1983, when the first Boomers were nearly forty years old. Nancy Altman, a boomer herself, served as a top aide to that commission, and said that it very specifically took into account the coming wave of retirements, which explains why it can pay full benefits through 2037, a quarter century after the first Boomer hits early retirement.

Social Security’s actuaries reported this fall that after 2037, payroll taxes would be sufficient to pay nearly four-fifths of benefits through 2084. The payroll tax stops, however, at a little over $106,000. The shortfall could be made up entirely by applying the payroll tax to more income above that threshold.

Obama’s Policies Likely to Fail

CNN Poll: Plurality say Obama’s policies will likely fail

Sixty-one percent of people questioned in the poll say they hope the president’s policies will succeed.

“That’s a fairly robust number but it’s down 10 points since last December,” says CNN Polling Director Keating Holland. “Twelve months ago a majority of the public said that they thought Obama’s policies would succeed; now that number has dropped to 44 percent, with a plurality predicting that his policies will likely fail.”

Obama to blink first on Social Security

By ROBERT KUTTNER, Politico

12/16/10 9:24 AM EST

(N)ow being teed up by the White House and key Senate Democrats, is a scheme for the president to embrace much of the Bowles-Simpson plan – including cuts in Social Security. This is to be unveiled, according to well-placed sources, in the president’s State of the Union address.

The idea is to pre-empt an even more draconian set of budget cuts likely to be proposed by the incoming House Budget Committee chairman, Rep. Paul Ryan (R-Wis.), as a condition of extending the debt ceiling. This is expected to hit in April.



How to put this politely? For a Democratic president, this approach is bad economics and worse politics.

For starters, cutting Social Security as part of a deficit reduction deal is needless – since Social Security is in surplus for the next 27 years. The move also gives away the single most potent distinction between Democrats and Republicans – Democrats defend your Social Security, and Republicans keep trying to undermine it.

If you think the Democratic base feels betrayed by Obama’s tax-cut deal, just imagine the mayhem when Obama proposes to cut the Democrats’ signature program.



Beltway Washington – the editorial writers, columnists, centrist policy organizations, Blue Dogs and, of course, the Obama administration and its Wall Street advisers – has become an echo chamber of bad advice.

As paradox at The Left Coaster puts it-

It has been stated here before, and is equally true today, that should any cut of any Social Security element proposed by the Democratic Obama Administration the United States is unequivocally, screamingly in the utter throes of a shock doctrine evolution. Social Security is abundantly, vastly in surplus by generations of over-taxation, there’s a $120 billion annual war on with incredible tax cuts just passed, it is beyond lunacy for Social Security to be cut, it’s outright theft, an act of amazing arrogance and contempt that could only happen by the enormous distraction and manipulation of unemployment. Times are tough, we all have to sacrifice, that’s what the thieves will seriously say.



Leaks are extremely useful in a variety of ways: they coddle and ensnare the reporter to a clubby insider status, they manipulate various political actors, they offer reaction gauges to proposed ideas, and steer the political conversation of the Village (DC) in a desired direction. Given this, just why would the Obama Administration leak that cutting Social Security story to Politico?

On This Day in History December 30

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.

Today history is being made in in Parson’s Kansas where the last roll of Kodachrome will be processed at Dwayne’s Photo Shop, the only Kodak certified processor of Kodachrome film in the world as of 2010. The final roll of 36-frame Kodachrome to be manufactured was tracked by National Geographic; it was shot by photographer Steve McCurry.

For Kodachrome Fans, Road Ends at Photo Lab in Kansas By A. G. Sulzberger

PARSONS, Kan. – An unlikely pilgrimage is under way to Dwayne’s Photo, a small family business that has through luck and persistence become the last processor in the world of Kodachrome, the first successful color film and still the most beloved.

That celebrated 75-year run from mainstream to niche photography is scheduled to come to an end on Thursday when the last processing machine is shut down here to be sold for scrap.

One of the toughest decisions was how to deal with the dozens of requests from amateurs and professionals alike to provide the last roll to be processed.

In the end, it was determined that a roll belonging to Dwayne Steinle, the owner, would be last. It took three tries to find a camera that worked. And over the course of the week he fired off shots of his house, his family and downtown Parsons. The last frame is already planned for Thursday, a picture of all the employees standing in front of Dwayne’s wearing shirts with the epitaph: “The best slide and movie film in history is now officially retired. Kodachrome: 1935-2010.”

A Color-Saturated Sun Sets on Kodachrome

I have fond memories of my 35mm Yashika and Canon cameras.

 1066 – Granada massacre: A Muslim mob storms the royal palace in Granada, crucifies Jewish vizier Joseph ibn Naghrela and massacres most of the Jewish population of the city.

1460 – Wars of the Roses: Battle of Wakefield.

1816 – The Treaty of St. Louis is proclaimed.

1853 – Gadsden Purchase: The United States buys land from Mexico to facilitate railroad building in the Southwest.

1853 – A dinner party is held inside a life-size model of an Iguanodon created by Benjamin Waterhouse Hawkins and Sir Richard Owen in south London.

1862 – The USS Monitor sinks off Cape Hatteras, North Carolina.

1896 – Jose Rizal is executed by firing

squad in Manila.

1897 – Natal annexes Zululand.

1903 – A fire at the Iroquois Theater in Chicago, Illinois kills 600.

1905 – Former Governor Frank Steunenberg is assassinated near his home in Caldwell, Idaho.

1906 – The All India Muslim League is founded in Dacca, East Bengal, British India Empire, which later laid down the foundations of Pakistan.

1916 – The last coronation in Hungary is performed for King Charles IV and Queen Zita.

1919 – Lincoln’s Inn in London admits its first female bar student.

1922 – The Union of Soviet Socialist Republics is formed.

1924 – Edwin Hubble announces the existence of other galaxies.

1927 – The Ginza Line, the first subway line in Asia, opens in Tokyo, Japan.

1936 – The United Auto Workers union stages its first sit-down strike.

1943 – Subhas Chandra Bose raises the flag of Indian independence at Port Blair.

1944 – King George II of Greece declares a regency, leaving the throne vacant.

1947 – King Michael of Romania is forced to abdicate by the Soviet Union-backed Communist government of Romania.

1948 – The Cole Porter Broadway musical, Kiss Me, Kate (1,077 performances), opens at the New Century Theatre and becomes the first show to win the Best Musical Tony Award.

1965 – Ferdinand Marcos becomes President of the Philippines.

1972 – Vietnam War: The United States halts heavy bombing of North Vietnam.

1977 – For the second time, Ted Bundy escapes from his cell in Glenwood Springs, Colorado.

1981 – In the 39th game of his 3rd NHL season Wayne Gretzky scores 5 goals giving him 50 on the year setting a new NHL record previously held by Maurice Richard and Mike Bossy who earlier had each scored 50 goals in 50 games.

1993 – Israel and the Vatican establish diplomatic relations.

1996 – In the Indian state of Assam, a passenger train is bombed by Bodo separatists, killing 26.

1996 – Proposed budget cuts by Benjamin Netanyahu spark protests from 250,000 workers who shut down services across Israel.

1997 – In the worst incident in Algeria’s insurgency, the Wilaya of Relizane massacres, 400 people from four villages are killed.

2000 – Rizal Day Bombings: A series of bombs explode in various places in Metro Manila, Philippines within a period of a few hours, killing 22 and injuring about a hundred.

2003 – U.S. Attorney General John Ashcroft recuses himself and his office from the Plame affair.

2004 – A fire in the Republica Cromagnon nightclub in Buenos Aires, Argentina kills 194.

2005 – Tropical Storm Zeta forms in the open Atlantic Ocean, tying the record for the latest tropical cyclone ever to form in the North Atlantic basin.

2006 – Madrid Barajas International Airport is bombed.

2006 – Deposed President of Iraq Saddam Hussein, convicted of the executions of 148 Iraqi Shiites, is executed by hanging.

2009 – The last roll of Kodachrome film is developed by Dwayne’s Photo, the only remaining Kodachrome processor at the time, concluding the film’s 74-year run as a photography icon.

Holidays and observances

   * Christian Feast Day:

         o Anysia of Salonika

         o Ecgwine of Worcester

         o Pope Felix I

         o Liberius of Ravenna

         o Ralph of Vaucelles

   * Day of the Declaration of Slovakia as an Independent Ecclesiastic Province (Slovakia)

   * Freedom Day (Church of Scientology)

   * Rizal Day, celebrated on Monday nearest. (Philippines)

   * The sixth day of Christmas. (Western Christianity)

Load more