Tag: Punting the Pundits

The day before Detroit declared bankruptcy, I found The New York Times’s Thomas Friedman up to his old tricks, extolling the North American Free Trade Agreement and “free trade” in general in a column so foolish and mendacious that his editors would have been well advised to spike it.

There’s no coincidence, I’m sure, that Detroit – the symbol and former center of American industrial power – officially threw in the towel so close to publication of Friedman’s claptrap. But the timing is worth noting as President Obama is now about to give away big chunks of the remaining U.S. manufacturing base to Japan and Vietnam, among other Pacific Rim countries, through a proposed free-trade agreement called the Trans-Pacific Partnership.

Richard (RJ) Escow: The ‘Bankization’ of America

The share of our national income which goes to corporate profit is the highest it’s been since they started tracking it in 1929, while the share going to people — as salary and wages — is the lowest. And the percentage of that corporate profit which goes to Wall Street is also the highest on record.

We’re becoming a financialized economy. Never before has the manipulation of money counted for so much and the real-world economy of people and consumer goods counted for so little.

And none of it is an accident.

Robert Naiman: Amend or Repeal the Espionage Act To Protect Journalists and Whistle-blowers

Isn’t it high time to amend or repeal the Espionage Act of 1917 so that it can’t be used to charge whistle-blowers or journalists with “aiding the enemy”?

Note that this demand is completely separable from saying that there should be no consequences for whistle-blowers who leak classified information to the media or journalists who publish classified information that is leaked to them. If I say that I am against the death penalty, it does not mean that I am against consequences for people who are found guilty of committing murder. It means that I don’t think that execution by the state should be one of those consequences. If I say that I am against the use of incarceration to punish nonviolent drug offenses, it does not mean that I am against consequences for people who are found guilty of nonviolent drug offenses. It means that I don’t think that incarceration should be one of those consequences. If I say that I am against a war – or killing Iranian civilians by cutting off their access to essential medicines, in blatant violation of international humanitarian law – to prevent Iran from “acquiring a nuclear weapons capability,” [sic] it does not mean that I think that efforts by Iran to pursue a “nuclear weapons capability” should face no consequences. The question is not whether the conduct being sanctioned should face no sanction. The question is whether “the punishment fits the crime.”

Robert C. Koehler: Stopped and Frisked by an Occupying Army

Stopping crime before it happens is a great idea, but stopping young men for “walking while black” – touted by true believers as the same thing – is a game played by an occupying army.

The tactic is called stop-and-frisk. As practiced by many police departments, including New York’s, it amounts to blatant racial profiling. Stop-and-frisk makes it impossible for young men of color to lead normal lives, to walk outside without fear of preemptive police harassment. The long-term hatred and tension it engenders does far more harm to a community than all the questionable good that proponents ascribe to it. Security based on racism is a sham.

No presidential appointment, no Senate confirmation, matters more than the one that will soon come for the post of chairman of the Federal Reserve.

If ever there was a time to ask for more-and better-this is it.

Yet, for the most part, official Washington is on autopilot, preparing for the replacement of outgoing Federal Reserve chairman Ben Bernanke with another predictable insider-perhaps even a choice the ultimate predictable insider: former Treasury Secretary Larry Summers.

President Obama, who says he will make his selection this fall, has defended Summers. A number of prominent Democratic senators have suggested that the president consider a more appealing prospect: Janet Yellen, the vice chair of the board of governors of the Fed.

But not everyone is satisfied with predictable prospects, or politics as usual.

Senators Bernie Sanders, I-Vermont, and Elizabeth Warren, D-Massachusetts, keep making the right demands and asking the right questions.

Robert Fisk: Endless War on Terror Far From Noble Cause

It was George W. Bush who reacted to the 9/11 attacks as a manifestation of Evil, imposing upon the United States the duty to extirpate the Foul Fiend and his offspring Terror, so as to restore Virtue by means of global war.

This was completely familiar moral territory to 21st century Americans, who had never in 150 years fought a war that was not described in the language of religion. From 1861 forward, Americans were trampling out the vintage of the Lord’s wrath, answering the call of His trumpet that would never sound retreat, calling Americans to die to make men free. A noble task, if by now become a hollow one.

Robert Sheer: Restore Honor and Pardon Edward Snowden

How do you justify criminally charging a government contractor for revealing an alarming truth that the public has every right to know? That is the contradiction raised by President Obama now that he has, in effect, acknowledged that Edward Snowden was an indispensable whistle-blower who significantly raised public awareness about a government threat to our freedom.

Unfortunately, the president didn’t have the grace and courage to concede that precise point and remains committed to imprisoning Snowden instead of thanking him for serving the public interest. But Julian Assange, no stranger to unrequited integrity, nailed it. “Today, the president of the United States validated Edward Snowden’s role as a whistleblower by announcing plans to reform America’s global surveillance program,” the WikiLeaks founder said in a statement posted Saturday, the day after Obama’s remarks.

Jim Hightower: Corporate Greed Is Making Us Sick

Low-wage workers in the restaurant industry are particularly vulnerable and, since they handle food, particularly threatening. Nearly 80 percent of America’s food service workers receive no paid sick leave, and researchers have found that about half of them go to work ill because they fear losing their jobs if they don’t. As a result, a study by the Centers for Disease Control finds that ill workers are causing up to 80 percent of America’s stomach flu outbreaks, which is one reason CDC has declared our country’s lack of paid sick leave to be a major public health threat.

You’d think the industry itself would be horrified enough by this endangerment of its customers that it would take the obvious curative step of providing the leave. But au contraire, amigos, such huge and hugely profitable chains as McDonald’s, Red Lobster and Taco Bell not only fail to provide such commonsense care for their employees, but also have lobbied furiously against city and state efforts to require paid sick days.

The president asks us to trust him on government surveillance, yet his administration constantly denigrates critics as unpatriotic

Tim Cushing made one of my favorite points of (last) week in his Tuesday post “Former NSA boss calls Snowden’s supporters internet shut-ins; equates transparency activists with al-Qaida“, when he explained that “some of the most ardent defenders of our nation’s surveillance programs” – much like proponents of overreaching cyber-legislation, like Sopa – have a habit of “belittling” their opponents as a loose confederation of basement-dwelling loners. I think it’s worth pointing out that General Hayden’s actual rhetoric is even more inflammatory than Cushing’s. Not only did the former NSA director call us “nihilists, anarchists, activists, Lulzsec, Anonymous, twentysomethings who haven’t talked to the opposite sex in five or six years”, he equates transparency groups like the ACLU with al-Qaida.

I appreciated this post for two reasons. [..]

But my main reason for singling out Tim’s post this week is that Hayden’s remark goes to the heart of what I continue to find most offensive about the administration’s handling of the NSA surveillance programs, which is their repeated insinuation that anyone who raises concerns about national security programs doesn’t care about national security.

Moira Herbst: Larry Summers’ record should rule him out of the Fed chairmanship

Why would we want a key advocate of the banking deregulation that brought us the great recession to head the Federal Reserve?

As a general rule in life – and certainly, in applying for a job – your record counts. If you’ve had a history of alienating people, being consistently wrong on the biggest issues in your field and screwing up – say, by helping set the stage (pdf) for the worst recession since the Great Depression – it’s time to look for a new career.

But that’s not, apparently, how life works out for Larry Summers, the fervent champion of deregulation and paid Wall Street consultant confirmed in last week’s presidential press conference to be a leading contender as Obama’s pick for the next chairman of the Federal Reserve.

Rebecca Hellmich: Who Dies in Yemen Drone Strikes?

A headline is sometimes worth a thousand words, and this was definitely the case after a deadly drone strike occurred in Yemen last week.

“Drone Strike Kills Six Suspected Militants in Yemen,” a Reuters headline (8/7/13) declared.  “More Suspected Al-Qaeda Militants Killed as Drone Strikes Intensify in Yemen,” a CNN.com headline  (8/8/13) offered. Whatever the language, one message was clear: “Suspected terrorists” or “militants” had been killed.

But with several drone strikes over the past week in Yemen, how can anyone actually know who is being killed?

The deceptive way the Obama administration defines “militants” has already been well – established – as the New York Times (5/29/12) put it, the White House policy “in effect counts all military-age males in a strike zone as combatants.”

Deborah Burger: Let’s Talk about a Real Healthcare System (And, No, I Don’t Mean “Obamacare”)

Let’s talk about healthcare. I don’t mean debating the Affordable Care Act. I mean healthcare, as in: If everyone needs healthcare, guarantee that everybody gets it.

I know, when it comes to healthcare, it’s easy to get into a debate for or against Obamacare. But we nurses see the world through a different lens: our patients.

Good healthcare is a fundamental resource that keeps America’s big engine running. Every day, as we do our best to care for our patients, nurses see people with chronic disease like asthma or diabetes who can’t afford insurance costs or medication. Maybe they’re absent from work, tired, and distracted from trying to manage their health on a shoestring. They run the risk of hospitalization. They struggle for a distant unreachable shore hoping something will help. They can’t get ahead because their health keeps dragging them down.

Does President Barack Obama think we’re stupid?

That’s the only conclusion possible after watching Friday’s bravura performance in which the president announced a set of proposals meant to bring more transparency to the National Security Agency – and claimed he would have done it anyway, even if Edward Snowden had never decided to leak thousands of highly sensitive documents to The Guardian’s Glenn Greenwald.

But even as he grudgingly admitted that the timing, at least, of his suggestions was a consequence of Snowden’s actions, the president declared, “I don’t think Mr. Snowden was a patriot.” When you look at what has changed over the past two months, though, it’s hard not to wonder, “What could be more patriotic than what Snowden did?”

Robert Reich: Why the Anger?

The last time America was this bitterly divided was in the 1920s, which was the last time income, wealth, and power were this concentrated.

When average people feel the game is rigged, they get angry. And that anger can easily find its way into deep resentments — of the poor, of blacks, of immigrants, of unions, of the well-educated, of government.

This shouldn’t be surprising. Demagogues throughout history have used anger to target scapegoats — thereby dividing and conquering, and distracting people from the real sources of their frustrations.

Make no mistake: The savage inequality America is experiencing today is deeply dangerous.

William K. Black: Why Are Appraisers Furious at Fraud by Their Peers While Corporate Lawyers Are Complacent?

I have done a series of articles about the efforts of honest appraisers (which began in 2000) and loan brokers to alert the lenders, the markets, and the government to the twin fraud epidemics (appraisals and “liar’s” loans) committed by lenders’ controlling officers that drove the financial crisis.

Honest appraisers could have profited greatly by becoming dishonest appraisers who would be given the lucrative assignments by fraudulent lenders’ controlling officers and their agents. Instead, honest appraisers suffered serious losses of income because they refused to succumb to the extortion efforts of the fraudulent lenders and their agents.[..]

What about corporate lawyers? I get the same answer about heroes when I speak to legal groups made up of professionals who represent corporations. On August 9, 2013 I had an opportunity to test the accuracy of this answer when I participated in a meeting of nearly 20 law professors who teach white-collar crime classes. Some of these professors teach at schools that regularly send their graduates to Wall Street. The hot business in white-collar crime is corporate investigations. I asked my counterparts if they could name a hero among corporate counsel — any counsel who stopped a control fraud at a major firm or who was fired trying to stop the fraud. No one could think of a corporate counsel (in-house or outside counsel) who had done so. As lawyers and teachers of lawyers we must be both horrified and energized (to change how we teach) by that answer. (I hope that there are corporate lawyers who were heroes we have not heard of yet.)

Dean Baker: The Smart Boys: Larry Summers and Jeff Bezos

The news in the last couple of weeks has had endless references to two people who we have been repeatedly told are brilliant: former Treasury Secretary and top Obama advisor Larry Summers and Amazon founder Jeff Bezos. The paeans to the genius of both men say a great deal about the quality of public debate in elite circles. [..]

It will be a big step forward when reporters and columnists are able to look at the people they consider brilliant with open eyes and talk about their accomplishments and failures in a serious way. In the recent Summers and Bezos chapters, they have been awed into vapidity.

Gary Younge: America cares for you – until you start asking questions

Manning, Snowden and Trayvon Martin: a series of legal cases is making US citizens re-evaluate what the state is really for

Those who defend this version of the all-powerful, all-caring state have little choice but to demonise those who oppose it. They assume their powers on the basis that they are best qualified to know what’s best for the public, even when the public thinks differently. Those who challenge such hubris are dealt with severely. The enemy in the NSA scandal is not those who are spying on you and lying about it, but the one who tells you about it. The criminal, in the Manning case, is not the soldiers who murder innocent civilians and laugh about it or the politicians who sent them to war but the young man who exposes their crimes.

The state is right to be worried. For while it has aggregated power, it has failed to garner the influence to sustain or justify it. Manning said he hoped by releasing the cables he would spark “worldwide discussion, debates, and reforms”. The leaks informed the Arab spring, revealing the venality of the leaders and the complicity of the US. When Snowden came out as a whistleblower, he said his greatest fear was “that nothing will change”. As Obama moves to modestly reform the NSA, the public he claims to be protecting shows growing support for Snowden. Neither the government nor the judiciary has been able to point to a single credible example of how its secrecy, neglect, deception or persecution in these cases has protected anybody or anything. When they insist such measures are crucial for security, they evidently mean security of the state – not the people who live in it.

Do you think the damage from the pending bankruptcy of the city of Detroit will be limited to Detroit? Think again.

Detroit is partly the victim of economic trends far beyond its control, the downsizing and outsourcing of the auto industry and the collapse of the sub-prime bubble, to name just two. And yes, the city has suffered from corrupt and inept local government. But leaving Detroit to a bankruptcy process that favors investment bankers over local pensioners will neither provide a fair outcome nor contain the damage.

Joe Firestone: What Would You Have the President Do?

There were varying reactions to the President’s recent speech at Knox College this week. My reaction was that the speech was deeply dishonest in light of the President’s previous policies, actions, and results, and I intended to do a critique, but Michael Hudson and Yves Smith beat me to it. In a fine post at Naked Capitalism, entitled “Michael Hudson Shreds Obama’s Orwellian Speech On Middle Class Prosperity,” Michael Hudson, with occasional added comments from Yves, deconstructs the speech paragraph by paragraph, and sometimes line-by-line, pointing out disingenuous assertions and outright dishonesty. [..]

The reaction to the post was vigorous with most of the discussion supporting and amplifying the views presented. However, there was one comment which said: [..]

What would u have him do? [..]

Of course, that persistent rationalization offered by the world’s Obamabots is my cue. What I want him to do falls into two major categories. First, there are necessary first moves he can probably get done which will facilitate passing all the other policies I propose. Second, there are the policies that will restore prosperity to poor and middle class over time.

Thom Hartman: We’re All Being Poisoned by Deregulated Capitalism

There’s an undeclared war going on between the rich and the poor right here in the United States and the rich think they’ve found a way to win it.

They’ve locked themselves into gated communities, lily-white suburbs, and wealthy urban neighborhoods and they’ve priced the poor out.

Happy and blissful in their one percent paradise, the richest Americans think they can ignore how their policies have decimated the poor and the working-class.

Think they can live in a “me” society, and ignore the larger “we society.”

But they’re wrong and here’s why.

It’s pretty much common knowledge in the United States that poverty and health are inseparable. All the major indicators of physical health – diabetes, heart-disease, and even access to nutritious foods – are connected to socioeconomic status.

Jim Hightower: The Border-Industrial Complex

War profiteers have spied a new place they can militarize with their high-tech, high-cost weaponry.

At last, both Republicans and Democrats are beginning to respond aggressively to economic needs. “It has been a tough time,” admits one Washington insider, applauding a new spending proposal that “could help out.”

Unfortunately, he and Congress aren’t referring to your tough times. No, no – they’re rushing to the aid of the multi-billion-dollar Military-Industrial Complex.

The government, you see, hasn’t been getting our nation into enough wars to satisfy the insatiable appetite of Northrop Grumman and its ilk for government money. So those war profiteers have spied a new place they can militarize with their high-tech, high-cost weaponry: The U.S.-Mexican border.

America was once the land of Lady Liberty, beckoning the world: “Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore. Send these, the homeless, tempest-tossed to me. I lift my lamp beside the golden door!”

No more.

Today’s America – at least as measured by the actions and inactions of the pariahs who roam its halls of power and the people who put them there – is insular, cruel and uncaring.

David Sirota: The Creative Destruction of Misguided Ideology

Stripped down to its fundamentals, the insurance business is the business of assessing risk. Regardless of what is being insured, a successful insurer is one that analyzes the risk of having to pay out benefits, and then adjusts coverage rates to make sure more money is coming in than is going out. The more accurate the assessment of risk, the more financially successful an insurance company tends to be.

Because of this model, private insurance is the conservative ideologue’s favored method of assessing danger and managing risk, for it is a purely free-market instrument. Indeed, as a right-wing activist would readily admit, private insurance focuses exclusively on the dollars and cents of actuarial analyses, and it bases prices on data and empiricism, not on fact-free political ideology and poll-tested platitudes.

So, then, what happens when the insurance industry so touted by the conservative movement starts saying things that wholly contradict that movement’s talking points?

Gail Collins: Playing Post Office

Today, let’s tackle a big national problem. Something that’s been going on for so long that everybody’s exhausted and has lost all hope of resolution in their lifetimes. (Like the baseball career of Alex Rodriguez.)

The Postal Service. Yes! Let’s fix the Postal Service, which lost more than $15 billion last year. Lately, things have been going better, but we’re still talking about a problem that’s actually way worse than A-Rod. More like something between a plague of locusts and a small, localized zombie invasion.

And it’s not all the management’s fault. You would be losing money, too, if your core product had been totally undermined by the Internet and you were required to be a self-supporting business except for the part where each and every move required special Congressional approval.

Jim Horn: Who’s Lying to Whom? Duncan, Bloomberg, and the Rotted Common Core

Yesterday Mike Bloomberg called the new test score basement that all NY schools have rushed into “very good news,” and he blamed the media for noticing that it was happening.  With State and City schools-at least the ones with poor kids-once more crushed under the boot (Rochester had 5% of kids passing reading and math) of new tests and new cut scores, the Prince followed up with this: “We have to make sure that we give our kids constantly the opportunity to move towards the major leagues.”

Really?  Is that what you are making sure of, Mike? Or are you not really making sure that poor kids and poor schools that have been sawed and savaged for a dozen years at least stay right where they are?  That is at the bottom, where the racist and classist standardized tests place them, except that from here forward these poor kids, re-demoralized by yet another round of failure assurance, will be taken housed in the segregated corporate reform schools that the charter traders and hedge fund managers on Wall Street are so heady about.  Isn’t that what you know is really going on, Mayor?

Arne Duncan tried yesterday to swoop in to help rescue Bloomberg from those reporters reporting the news and finally asking questions, but all the  the lead lummox could manage was to parrot his own voice recording that, in the present context of the new Common Core testing-delivery system, sounded even more hollow from an even hollower man: “Too many school systems lied to children, families and communities. . . .Finally, we are holding ourselves accountable as educators.”

Senator Obama’s objection to ‘a dumb war’ won him nomination. As commander-in-chief, he has reneged on opposing militarism

As the Obama family heads to their annual summer vacation on Martha’s Vineyard, perhaps the president should take along a copy of Catch-22 for some beach reading. Joseph Heller’s classic, satirical anti-war novel, published in 1961 and based on his experiences as a bombardier in the second world war, is sadly relevant today, as Obama’s wars, in Afghanistan and beyond, drag on. [..]

Heller’s protagonist in Catch-22, Captain Yossarian, holds a wounded comrade – named Snowden, coincidentally – who dies in his arms. The experience cements Yossarian’s opposition to war. Bradley Manning, too, went to war, and hated what he saw. He took action, leaking documents to spark a national debate.

Heller’s depiction of war – grim and stark – was fiction, though based on his own experience. Obama’s wars, his drone strikes, his war on whistleblowers, are all too real.

Mark Weisbrot: The More Nefarious US Foreign Policy, The More It Relies on Media Complicity

Americans are shielded from the ugly consequences of US military power by our journalists’ self-censorship

The US still has military spending that is higher in real, inflation-adjusted terms than it was during the peak of the Reagan cold war build-up, the Vietnam war and the Korean war. We seem to be in a state of permanent warfare, and – we have recently learned – massive government spying and surveillance of our own citizens. This is despite an ever-receding threat to the actual physical security of Americans. Only 19 people have been killed by acts of terrorism in the US since 11 September 2001, and none or almost none of these was connected to foreign terrorists. Also, there are no “enemy states” that pose a significant military threat to the US – if any governments can be called “enemy states” at all.

Michael T. Klare: How to Fry a Planet

The Third Carbon Age: Don’t for a Second Imagine We’re Heading for an Era of Renewable Energy

When it comes to energy and economics in the climate-change era, nothing is what it seems.  Most of us believe (or want to believe) that the second carbon era, the Age of Oil, will soon be superseded by the Age of Renewables, just as oil had long since superseded the Age of Coal.  President Obama offered exactly this vision in a much-praised June address on climate change.  True, fossil fuels will be needed a little bit longer, he indicated, but soon enough they will be overtaken by renewable forms of energy.

Many other experts share this view, assuring us that increased reliance on “clean” natural gas combined with expanded investments in wind and solar power will permit a smooth transition to a green energy future in which humanity will no longer be pouring carbon dioxide and other greenhouse gases into the atmosphere.  All this sounds promising indeed.  There is only one fly in the ointment: it is not, in fact, the path we are presently headed down.  The energy industry is not investing in any significant way in renewables.  Instead, it is pouring its historic profits into new fossil-fuel projects, mainly involving the exploitation of what are called “unconventional” oil and gas reserves.

Diana Ravitch: Punishing Kids for Adult Failures

The massive score drop on tough new New York tests gives us an opportunity–and obligation–to change course

Test scores across New York State have collapsed, new results released Wednesday showed. Last year, 55% of students in the state passed the reading test; 65% passed the math test. This year, only 31% passed both subjects. In New York City, the proportion passing the state tests fell from 47% in reading and 60% in math to only 26% in reading and 30% in math.

Did the students suddenly get stupid? Did their teachers become incompetent overnight? Did schools fail en masse? [..]

he leaders of the state seem intent on discouraging students, teachers and principals. Why do they want public schools to look bad? That is a question for them to answer.

The madness must end. Next spring, parents should keep their children home on testing day. Or send them to school with a note saying that they are opting out of the state testing. They should exercise their rights as citizens and send a message to the state: “Not with my child.”

President Obama’s Justice Department, under the direction of Attorney General Eric Holder, hasn’t indicted a single bank executive for the massive Wall Street crime wave that devastated the economy. The regulatory reform which followed the 2008 crisis wasn’t nearly enough, and yet Republicans are trying to weaken even that.

And just this week there were several news stories about bank crime. What do they mean? Why haven’t any bankers gone to jail? What’s going on in this country?

Here are seven things about Wall Street crime and Washington “justice” you might have wanted to know, but were probably too depressed to ask. It’s true that there’s a shortage of justice where bankers are concerned. But don’t get depressed. Get serious – about demanding change.

Juan Cole: How the GOP Libya Witch Hunt Made Us Close Our Mideast Embassies and Crippled U.S. Diplomacy

About those US embassy closures in the Middle East:  they make the US look like a wimp. [..]

As with George Mitchell and Northern Ireland, the most effective uses of American power have been diplomatic.  But hawks in Washington always want to drag us into foreign wars, in part to benefit their buddies in the arms industry.  The current GOP is divided on the issue of US power abroad, with Libertarians like Rand Paul viewing foreign wars as a waste of money and a fruitless enterprise, but hawks like John McCain and Lindsey Graham failing to discover a potential war that they don’t just love to death.

But the GOP is inadvertently pushing the US into a posture of dangerous diplomatic weakness.  This weakness is clear in the unprecedented closing of 21 US embassies in the Middle East this weekend because of a vague terrorist threat apparently emanating from “al-Qaeda in the Arabian Peninsula,” based in Yemen.

Jared Berstein: [Threatening to ‘Reform’ the Earned Income Tax Credit Threatening to ‘Reform’ the Earned Income Tax Credit]

Devoted readers know that I’m careful not to shoot everything that moves, but the more I hang around the DC tax debate, the more I’m exposed to deeply misguided thinking that seems largely motivated by the conviction that poor people — in this case, the working poor — have too much money and the wealthy have too little.

That’s the lesson from a report by the Tax Foundation on the “benefits” of getting rid of the Earned Income Tax Credit — a wage subsidy for low-income workers — and giving everybody else a tax break.

Jim Hightower: Forget Student Loans — Make Higher Ed Free

Well, finally! Hard-right congressional leaders and the Obama White House have agreed that interest rates on student loans should not double to nearly 7 percent, as they let happen early in July. Instead, college students will be billed at a rate that will steadily rise higher than 8 percent.

This is progress?

Temporarily, yes, because the new law drops this year’s rate to 3.8 percent. But, for the longer run, obviously not. Even capping the interest rate at 8.25 percent, as the White House demanded, is too high, for it still saddles students with a crushing debt of some $20,000 to $40,000 for a four-year degree, just as they’re getting started on their economic path.

The Detroit bankruptcy is looking suspiciously like the bail-in template originated by the G20’s Financial Stability Board in 2011, which exploded on the scene in Cyprus in 2013 and is now becoming the model globally. In Cyprus, the depositors were “bailed in” (stripped of a major portion of their deposits) to re-capitalize the banks. In Detroit, it is the municipal workers who are being bailed in, stripped of a major portion of their pensions to save the banks. [..]

Interestingly, Lansing Mayor Virg Bernero, Snyder’s Democratic opponent in the last gubernatorial race, proposed a solution that could have avoided either robbing the pensioners or scaring off the bondholders: a state-owned bank. If the state or the city had its own bank, it would not need to borrow from Wall Street, worry about interest rate swaps, or be beholden to the bond vigilantes. It could borrow from its own bank, which would leverage the local government’s capital into credit, back that credit with the deposits created by the government’s own revenues, and return the interest to the government as a dividend, following the ground-breaking model of the state-owned Bank of North Dakota.

There are other steps that need to be taken, and soon, to prevent a cascade of municipal bankruptcies.  The super-priority of derivatives in bankruptcy needs to be repealed, and the protections of Glass Steagall need to be restored. While we are waiting on a very dilatory Congress, however, state and local governments might consider protecting themselves and their revenues by setting up their own banks.

Lisa Graves: Voices Rising Against Hedge Fund Millionaire Larry Summers to Head the Fed

Opposition is growing to the idea of President Obama naming Larry Summers to head the Federal Reserve. As William Greider wrote in The Nation, “Summers is a toxic retread from the old boys’ network and a nettlesome egotist who offended just about everyone during his previous tours in government. More to the point, Summers was a central player in the grave governing errors that led to the financial collapse and a ruined economy.”

Summers is so cocksure and callous he once suggested using “underpopulated countries in Africa” as toxic waste dumps. [..]

The last thing America needs right now is a Friedmanite at the helm of the Fed. Summers would bring more winter in the economy for ordinary Americans while his buddies on Wall Street would get more and more of America’s wealth to offshore.

Valerie Strauss: Five Absurdities about High-Stakes Standardized Tests

Barely a day goes by when the education world isn’t treated to some new story involving high-stakes standardized tests, the chief metric of “accountability systems” in the modern era of school reform.

It might be about how student test scores went up or down or all around; about how standardized tests were incorrectly scored by giant companies that make millions from testing contracts; that some questions on the test don’t make any sense; that the high stakes being attached to the results – which are being used to evaluate students, teachers, principals, schools, districts and states – have gone from being unfair to preposterous.

Sue Sturgis: The South’s Widening War on Abortion Rights

Date on which North Carolina Gov. Pat McCrory (R) signed into law a bill that requires the state’s abortion clinics to meet the same standards as ambulatory surgical centers, despite a campaign promise that he would not sign any legislation that further restricts abortion: 7/30/2013

Additional cost to build a clinic that meets ambulatory surgical center standards: $1 million

Number of bodyguards that accompanied McCrory the following day when he left the executive mansion and stepped into the street to deliver cookies to abortion rights advocates protesting outside, who returned them with a note that said, “We want women’s health care, not cookies”: 4