Law professor Lawrence Lessig marked his appointed as Roy L. Furman Professor of Law and Leadership at Harvard Law School with a lecture dedicated to the memory of internet activist Aaron Swartz and his work. Prof. Lessig was a close friend and mentor to Aaron and his death was a great loss to him. He had planned to lecture on corruption but after Aaron’s death decided to discuss Aaron’s Law and his work:
At the center of [Aaron’s] struggle is and was copyright. In the debate between people who are pro and anti copyright, Aaron was on neither side.” Rather, he opposed “dumb copyright.” A perfect example was Swartz’s efforts to liberate data from PACER the database of public court records, which charged 8 cents a page. He was not violating copyright, technical restraints, terms of service or any other prohibitions. He had found a loophole. “A loophole for public good” as opposed to the loopholes used for private gain by lobbyists and tax lawyers. Swartz did the same thing with the government’s database of issued copyrights. The PACER project got Aaron FBI surveillance; the copyright project, on the other hand, was met with approval by the Copyright Office. Using all this as proof Lessig continued to emphasize that Aaron was a hacker. He defines “hacker” as one who uses technical knowledge to make a better world.
According to Lessig, Aaron was his mentor, not the other way around. The two worked together, upon Aaron’s insistence, on anti-corruption campaign for a while before they split again: while Aaron wanted to turn Barrack Obama into Elizabeth Warren, Lessig wanted Obama to pick up the fight with corruption he had promised in 2008. Without that fight, the defenders of the status quo would defeat real change.
“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”.
Alan Simpson, along with Erskine Bowles, represents a well-funded cadre of spokespeople who are only willing to present a narrow band of corporate- and billionaire-friendly economic policies. There’s just one approach in their world, one which Simpson and Bowles reiterated just this week: Medicare and Social Security benefit cuts for seniors and the disabled and the gutting of middle-class tax breaks, paired with further tax reductions for corporations and the wealthiest Americans.
This cynical agenda is all that Simpson represents. If he brings anything else to the table, it isn’t immediately visible. He lacks subject matter knowledge in any of the fields a person must understand to speak knowledgeably on budget issues. He’s not an expert in finance, economics, health care, or social welfare.
Congress waited six years to repeal the Tonkin Gulf Resolution after it opened the bloody floodgates for the Vietnam War in August 1964.
If that seems slow, consider the continuing failure of Congress to repeal the “war on terror” resolution-the Authorization for Use of Military Force-that sailed through, with just one dissenting vote, three days after 9/11.
Prior to casting the only “no” vote, Congresswoman Barbara Lee spoke on the House floor. “As we act,” she said, “let us not become the evil that we deplore.”
We have. That’s why, more than 11 years later, Lee’s prophetic one-minute speech is so painful to watch. The “war on terror” has inflicted carnage in Iraq, Afghanistan, Yemen and elsewhere as a matter of routine. Targets change, but the assumed prerogative to kill with impunity remains.
Now, Rep. Lee has introduced H.R. 198, a measure to repeal the Authorization for Use of Military Force.
Conservative policy researchers Avik Roy and Doug Holtz-Eakin say that Republicans can’t repeal the Patient Protection and Affordable Care Act and should instead reform it into the free-market system of their dreams. It’s a weird piece.
As Matt Yglesias notes, Roy and Holtz-Eakin basically offer a negotiated surrender that keeps the basic terms of PPACA, tinkers with its parameters and calls it a conservative victory. If conservatives could live with this, why didn’t they cut a deal like this in 2009 instead of engaging in three years of scorched-earth tactics in a failed effort to stop reform? [..]
It’s good to see conservatives realizing that they’re going to have to live with PPACA or something like it. I’m still waiting for them to work on controlling total health spending, within the context of universal coverage, in a truly constructive manner.
Americans need Social Security more than ever, and they’re willing to pay for it. Rather than more cuts, we need higher benefits across the board.
This was the gist of my presentation at the National Academy of Social Insurance conference last month, whose theme was “Social Security and Medicare in a Time of Budget Austerity” (emphasis added). I wasn’t expecting it to go over very well. [..]
At the conference, NASI released the results of a poll showing strong support for Social Security by the American people, a consensus that benefits are inadequate, and a willingness to pay higher taxes to strengthen the program (I discussed these results in an earlier blog post). The poll made it harder to dismiss calls for expanding Social Security, though Wall Street Journal economics editor David Wessel tried. Among the other conference participants who made a strong case for expanding Social Security were blogger-economist Duncan Black (a.k.a. Atrios) and Wilhelmina Leigh, a participant in the 2011 Commission to Modernize Social Security, which led the way in calling for higher contributions and benefits across the board.
There was a scarcely noted but classic moment in the Senate hearings on the nomination of John Brennan, the president’s counterterrorism “tsar,” to become the next CIA director. When Senator Carl Levin pressed him repeatedly on whether waterboarding was torture, he ended his reply this way: “I have a personal opinion that waterboarding is reprehensible and should not be done. And again, I am not a lawyer, senator, and I can’t address that question.”
How modern, how twenty-first-century American! How we’ve evolved since the dark days of Medieval Europe when waterboarding fell into a category known to all as “the water torture“! Brennan even cited Attorney General Eric Holder as one lawyer who had described waterboarding as “torture,” but he himself begged off. According to the man who was deputy executive director of the CIA and director of the Terrorist Threat Integration Center in the years of “enhanced interrogation techniques” and knew much about them, the only people equipped to recognize torture definitively as “torture” are lawyers. This might be more worrisome, if we weren’t a “nation of lawyers” (
Well, here we go again. Another season, another manufactured, self-inflicted, completely preventable crisis of government. This time it’s the sequester.
We may as well put these things in the Farmers’ Almanac.
Now we’re engaged in a finger-wagging blame game of who proposed it, who supported it and who is opposed to preventing it.
The enraging thing is that it was all transparent bullshit at the time. They gaslighted the nation. ~Atrios~
On March 19, it will be ten years since President George W. Bush launched the Iraq War that was based wholly on lies at the cost of thousands of lives to the United States and Iraqis and well over three trillion dollars. The overthrow of Sadaam Hussein opened the “can of worms” of decades long animosity of the religious factions in the region that will contribute to the instability of the region for the unforeseeable future, not to mention, the increased animosity towards the United States that breeds more terrorists determines to seek revenge.
As our government was making a fraudulent case to attack Iraq in 2002-2003, the MSNBC television network was doing everything it could to help, including booting Phil Donahue and Jeff Cohen off the air. The Donahue Show was deemed likely to be insufficiently war-boosting and was thus removed 10 years ago next week, and 10 days after the largest antiwar (or anything else) demonstrations in the history of the world, as a preemptive strike against the voices of honest peaceful people.
From there, MSNBC proceeded to support the war with mild critiques around the edges, and to white-out the idea of impeachment or accountability.
But now MSNBC has seen its way clear to airing a documentary about the fraudulent case it assisted in, a documentary titled Hubris. This short film (which aired between 9 and 10 p.m. ET Monday night, but with roughly half of those minutes occupied by commercials) pointed out the role of the New York Times in defrauding the public, but not MSNBC’s role. [..]
Despite this omission and the glossing over of any accountability for the lies then, and now about Iran, Mr. Swanson goes on to praise the all too short film (just short of 44 minutes minus commercials). He praises MSNBC and Ms. Maddow in hopes that American awareness about the lies that destroyed Iraq in hopes that it will stop an invasion of Iran.
At FDL‘s The Dissenter, Kevin Gosztola also reports the traditional MSM’s complicity and the refusal of Congress to hold anyone in the Bush – Cheney administration accountable, as well as, the MSM’s cooperation with the Obama administration to withhold information:
Eighty-two Democrats in the House of Representatives voted for the Iraq War resolution. Twenty-nine Democrats in the Senate, including Hillary Clinton and John Kerry, voted for the resolution. Jones has developed into an anti-war voice in Congress, but isn’t it remarkable that he is the one who gives the mea culpa in the documentary? Where is the Senate Democrat or House Democrat atoning for his or her role in making war possible?
Given the criminality of what the Bush administration did, it is shameful that none of the players involved have suffered consequences and David Corn makes this point, “A lot of people who purposely used extreme rhetoric to gin up populous support for the war, there have been no consequences for them.” [..]
Ten years on, it is appropriate to recount what happened, to remind Americans that what happened was wrong and there are criminals from the Bush administration who should have been held accountable in some way. Unfortunately, President Barack Obama and Congress, led by Democrats Nancy Pelosi and Harry Reid, shied away from accountability.
Between now and March 19, the tenth anniversary of the invasion, there should be reflection because it could happen again; maybe not a full-scale occupation but another military operation, perhaps, one involving drones. The media has not questioned Obama’s decision to wage conflict in Pakistan, Somalia or Yemen. Both the Washington Post and New York Timesagreed to comply with requests from the Obama administration to not report on a drone base in Saudi Arabia. Now, there’s talk of Iran and “round magnets.” There is no US war or national security operation the US media has not collectively been willing to sell and it would not be surprising to see a presidential administration successfully manipulate the media again.
“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”.
One of the most powerful men in Washington, it turns out, is also the most unpopular senator in the nation.
This is probably not a coincidence.
Facing reelection in 2014, Senate Minority Leader Mitch McConnell (R) finds himself in a tougher battle than many anticipated. According to a recent poll, just 17 percent of Kentucky voters are committed to voting for him. Given how out of touch he is with their needs, it’s no wonder. [..]
McConnell’s seat was once occupied by Henry Clay, who was dubbed “The Great Pacificator.” Admired by Abraham Lincoln, he is widely considered one of the greatest senators in American history. Clay once said, “Government is a trust, and the officers of the government are trustees; and both the trust and the trustees are created for the benefit of the people.”
Kentucky voters deserve a senator who understands the wisdom of those words.
The growing grassroots democracy movement took another huge step forward this week when Congressional Representatives Rick Nolan (DFL-Minnesota) and Mark Pocan (D-Wisconsin) joined Move To Amend coalition organizers Ben Manski and George “Leesa” Friday at the National Press Club to announce that the “We the People Amendment” was being introduced in Congress (H.J.Res. 29).
This amendment clearly and unequivocally states that:
Section 1. Only People Have Constitutional Rights [..]
Section 2. Money is Not Free Speech [..]
The Move to Amend Coalition was formed in preparation for the Supreme Court’s Citizens United v FEC ruling in 2010. Today, the coalition boasts over 260,000 supporters, thousands of endorsing organizations, and has organized over 150 local affiliate across the country. These are groups who have formed in their local communities to educate, agitate and organize in direct support of the Move To Amend position that only people have constitutional rights and that money is not free speech.
We reap the benefits of cheap farm and meatpacking labor in the form of low-priced food, thanks to the contributions of millions of undocumented workers.
Until a few years ago, Rosa Acosta had never even seen a flush toilet. She raised her 12 children in a tiny adobe home in rural Jalisco, Mexico. Several of her kids left it to work in the United States. One son, who left at age 12 to earn money as a farmworker in California, returned home to Rosa and his siblings after only a year. Another, her oldest, still works in California’s fields. Neither crossed the border legally. [..]
The Acosta family is one of millions whose fate hangs in the balance as President Barack Obama tries to convince Congress that it’s time to overhaul our immigration laws.
The massive surveillance system built up over the last 10 years is the domestic companion of overseas drone killings.
The big story buried in all the commentary about the US government’s drone policy is that the old algorithm of the liberal state no longer works. Focusing on drones is almost a distraction, if it weren’t for the number of men, women and children they have killed in only a few years. What we should focus on is the deeper condition that enables the drone policy, and so much more, and that is the sharp increase in unaccountable executive power, no matter what party is in power. [..]
What we are facing is a profound degradation of the liberal state. Drone killings and unlawful imprisonment are at one end of that spectrum of degradation, and the rise of the power, economic destructions and unaccountability of the financial sector are at the other end.
Salon exclusive: Study finds “liberals” more likely to favor targeted killings once they know it’s Obama’s policy
Civil libertarians have worried that some of President Obama’s comparatively hawkish national security policies are silencing “liberal” Democrats who would have opposed such measures under President Bush or another Republican. Now there’s new evidence that Obama’s support for such policies isn’t just silencing them – it’s winning them over.
The nebulous but potent charge of terrorism has been used to systematically curtail justice.
In the US, due process – one of the defining features of a democratic judicial process – continues to be badly bludgeoned: Obama fights tooth and nail to push through NDAA, which would allow indefinite detention of US citizens, and the definition of terrorism has expanded its unwieldy scope, casting a widening net that ensures more and more people are captured in its snare.
The US has pursued “domestic terrorism” by practicing pre-emptive prosecution, that is, going after individuals who have committed no crime but are alleged to possess an ideology that might dispose them to commit acts of “terrorism”. Maintaining that it can – and should – be in the business of divining intent, the government decimates crucial elements of the US justice system.
Thus, in cases where terrorism is charged, prosecutors need not prove guilt beyond a reasonable doubt. Rather, only the defendant’s potential for committing a crime need be established in order to convict.
The corporate austerians released their ‘new’ Bowles-Simpson recommendations today (pdf). They claim that they are building upon their original plan, not replacing it. They framed their recommendations as the last two steps in a four step process. For Social Security followers, Step Three includes the chained CPI. And Step Four includes all of the previous cuts to Social Security which they recommended in their first plan. Raising the retirement age starting in 2022 slowly to 69, cutting benefits through re-indexing and flattening all future benefits for our recipients in 2050. [..]
The corporate austerians go for installing the chained cpi first. Why? It could be that they still think that most Americans do not realize that the chained cpi is a cut which keeps on cutting [..]
The language is a vague euphemism for cuts; code words to their rich buddies that the uploading of wealth will not be threatened with significant new taxes. No pesky new scrap-the-FICA cap income taxes which might be used to pay for under-funded social insurance programs.
Meanwhile, President Obama, seemingly ignoring his two side show buddies, called for tax reforms that would increase revenue and a more balanced approach to the looming sequestration that would impose draconian cuts to non-defense spending programs. Taking lessons from Bill Maher, the Speaker of the House, Rep. John Boehner (R-OH), is having none of that and has proposed “new rule“:
“The sequester will be in effect until there are cuts and reforms that put us on a path to balance the budget in the next 10 years.”
One of the details that often goes overlooked is that the House Republican budget plan from the last Congress — the one that included all the spending cuts, entitlement reforms, and tax breaks the GOP are desperate to have — didn’t bring the federal budget into balance until 2040. That’s not a typo — under the House Republican plan, written by Paul Ryan, the United States would run deficits every year for nearly three decades, and then might reach a balanced budget 27 years from now if optimistic projections are met.
And that plan included spending cuts so severe, GOP candidates were afraid to talk about them out loud in public.
This year, however, thanks to a new “rule” embraced by Boehner and his cohorts, the new House Republican plan intends to balance the budget by 2023, instead of 2040. Why does that matter? Because trying to eliminate the entirety of the deficit in one decade instead of three necessarily means ridiculously drastic cuts.
A plan from the House Progressive Caucus that presented the unique idea that creating jobs would bring down the already shrinking deficit. But, as Greg Sargent of the Washington Post‘s “Plum Line“, notes it stands little chance of even being considered in the Republican held House:
Needless to say, this plan – the creation of the Congressional Progressive Caucus – has no chance whatsoever of passing Congress. Which is exactly the point: No plan that prioritizes job creation as the best means of reducing the deficit; no plan that cuts defense while determinedly avoiding any cuts that would hurt the poor and elderly; no plan that includes equivalent concessions by both sides – could ever have a prayer in today’s Washington. It’s yet another indication of how out of whack Washington’s priorities are.
So, Boehner says House Republicans are not only willing to let the sequester hit, but that the only acceptable replacement for it will be a plan that wipes away the deficit in 10 years – all without revenues. [..]
There’s simply no chance that House Republicans will produce such a budget by March 1st, which is the deadline for the sequester. If Boehner means any of this, he’s confirming that we’re getting the sequester, and it will remain in effect until it is replaced by a plan that is simply never, ever going to happen. Wiping out the deficit in 10 years with no new revenues would be at least as bad as the Ryan plan – probably worse – yet even that plan was loaded up with unspecified cuts and other big question marks. Republicans are never going to propose specific cuts that balance the budget in 10 years with no new revenues – ever. Boehner has, in effect, just taken ownership of the sequester.
No, Mr. Boehner has not thought this “boner” through.
In January of 2010, the US Supreme Court handed down its decision in Citizens United v. Federal Election Commission that held that the First Amendment prohibited the government from restricting independent political expenditures by corporations and unions. However, the case did not involve the federal ban on direct contributions from corporations or unions to candidate campaigns or political parties, which remain illegal in races for federal office.
Once again the US Supreme Court is about to weigh in on campaign finance agreeing to hear arguments in the McCutcheon v. Federal Election Commission which contends that limits on what individuals are allowed to give candidates and parties and PACs is an unconstitutional violation of the individual donor’s free speech rights.
The U.S. Court of Appeals already ruled in favor of keeping the biennial limits, which have been in place since 1971 and were upheld in the 1976 Buckley v. Valeo case. By accepting the case, the Supreme Court is stepping into the thick of another controversial campaign finance case just three years after ruling in Citizens United v. FEC that corporations and unions can spend freely on elections. [..]
Campaign finance reformers are already calling on the court to maintain the Buckley precedent and rule against the challenge in McCutcheon, for fear that any overturning of Buckley will eventually lead to future erosion of contribution limits and other campaign finance precedents meant to protect against corruption or the appearance of corruption. [..]
A ruling to overturn the biennial limits would not directly affect the amount an individual donor could give to a single candidate, but, thanks to the proliferation of joint fundraising committees, known as victory funds or committees, a candidate could potentially solicit a single contribution from one donor of up to — if not more than — $3,627,600.
“There’s so much money being spent, there’s so much cynicism about the system, but the evidence shows, in states that do have public financing systems, that candidates can run in those systems and win, and they do it by focusing on their constituents and small donors,” Soros tells Bill.
Soros and Cantor advocate for a New York State public financing system inspired by New York City’s publicly-funded program that makes it less financially prohibitive to run for city-wide office. “People should appreciate who gets to run for office when you have a system like this. Librarians run for office, ex-teachers run for office – not just people who have a rolodex of prospective donors,” Cantor says. “It’s good for the candidates and the voters alike.”
In the next four months, Mr. Soros and a small team at Friends of Democracy, the new Super PAC, are going to pick 10 to 15 House lawmakers whose records and public statements have not been supportive of what Mr. Soros calls a system of “citizen-led” elections.
In those districts, the new Super PAC will produce direct mail, telephone calls, Internet advertising and even a few television commercials aimed at making sure voters know the positions of the lawmaker
In addition, a separate sister organization will be picking a handful of campaign finance reform “heroes” who will receive some direct contributions to reward them for their positions.
If all goes according to plan, Mr. Soros is hoping to eventually demonstrate to politicians that there is a political cost for standing in the way of reform.
For sale to the highest bidder, the Unites States of America.
“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”.
It was encouraging to see President Obama propose an increase in the minimum wage in his State of the Union address, even if the $9.00 target did not seem especially ambitious. If the $9.00 minimum wage were in effect this year, the inflation-adjusted value of the minimum wage would still be more than two percent lower than it had been in the late 1960s. And this proposed target would not even be reached until 2015, when inflation is predicted to lower the value by another 6 percent.
While giving a raise worth more than $3,000 a year to the country’s lowest paid workers is definitely a good thing, it is hard to get too excited about a situation in which these workers will still be earning less than their counterparts did almost 50 years ago. By targeting wage levels that roughly move in step with inflation we have implemented a policy that workers at the bottom will receive none of the benefits of economic growth through time. In other words, if we hold the purchasing power of the minimum wage fixed through time, as the country as a whole gets richer, minimum wage workers will fall ever further behind.
The new CISPA – just like the old CISPA – would protect companies like Facebook and Microsoft from legal liability when they hand over your sensitive online data to the federal government, without any regard for your privacy. The bill would permit the government – including the National Security Agency and the Department of Homeland Security – to use that information for matters that have nothing to do with cybersecurity. The whole process would, of course, take place behind closed doors, with no accountability to the public.
Last year’s activism succeeded in improving a similar bill in the Senate, before that bill ultimately failed to move forward. At the time, President Obama vowed to veto any destructive CISPA-like bill that reached his desk.
This time around, for a number of reasons – including changes in Obama’s staff and shifting political dynamics – it’s unclear if the president would once again commit to vetoing CISPA. So if this “new” bill goes farther than it did last time around, we simply don’t know what will happen.
There was a scarcely noted but classic moment in the Senate hearings on the nomination of John Brennan, the president’s counterterrorism “tsar,” to become the next CIA director. When Senator Carl Levin pressed him repeatedly on whether waterboarding was torture, he ended his reply this way: “I have a personal opinion that waterboarding is reprehensible and should not be done. And again, I am not a lawyer, senator, and I can’t address that question.”
How modern, how twenty-first-century American! How we’ve evolved since the dark days of Medieval Europe when waterboarding fell into a category known to all as “the water torture”! Brennan even cited Attorney General Eric Holder as one lawyer who had described waterboarding as “torture,” but he himself begged off. According to the man who was deputy executive director of the CIA and director of the Terrorist Threat Integration Center in the years of “enhanced interrogation techniques” and knew much about them, the only people equipped to recognize torture definitively as “torture” are lawyers. This might be more worrisome, if we weren’t a “nation of lawyers” (though it also means that plummeting law school application rates could, in the future, create a torture-definition crisis).
In giving up the papacy, Pope Benedict XVI was brave and bold. He did the unexpected for the good of the Catholic Church. And when it selects a new pope next month, the College of Cardinals should be equally brave and bold. It is time to elect a nun as the next pontiff.
Now, I know this hope of mine is the longest of long shots. I have great faith in the Holy Spirit to move papal conclaves, but I would concede that I may be running ahead of the Spirit on this one. Women, after all, are not yet able to become priests, and it is unlikely that traditionalists in the church will suddenly upend the all-male, celibate priesthood, let alone name a woman as the bishop of Rome.
Nonetheless, handing leadership to a woman-and in particular, to a nun-would vastly strengthen Catholicism, help the church solve some of its immediate problems and inspire many who have left the church to look at it with new eyes.
If you watched President Obama’s State of the Union address last week, you might have missed the scheme that he unveiled that will lead to the ruination of the Medicare prescription drug program, destroy pharmaceutical companies’ incentive to develop new life-saving medicines and even imperil our country’s economic growth.
I know I missed it.
Fortunately, the top PR guy at the drug companies’ big trade association in Washington quickly issued a press release to clue us in on what the president is really up to and what will happen if he can follow through on his pledge to curtail Medicare spending by reducing “taxpayer subsidies to prescription drug companies.”
As we approach the self-immolation known as “The Sequester,” I find myself thinking about a woman in West Africa, asking people, “Would you like to buy a pen?”
She was a middle-aged woman, wearing a bright-colored dress. Judging by wear and tear, it may have been the only dress she owned.
She was standing on the steps in front of a small department store, which was selling pens by the dozen. She repeated softly, in French, to passers-by, “Voulez-vous acheter une plume?” And she held up a pen. [..]
So here is one argument against the sequester that you’re not hearing elsewhere — it will cause a lot of pain. A lot of hunger, a lot of disease, a lot of death. I understand that this argument is hopelessly unfashionable, and completely contrary to the zeitgeist of fear and hatred that dominates our political discourse. But there it is, nevertheless. I sure see it. Maybe you do, too.
Nearly a year ago Rolling Stone contributing editor, Matt Taibbi wrote about how the Bank of America had defrauded everyone yet the US government kept bailing it out. They got a slap on the wrist and a paltry $$137 million fine for bilking needy schools and cities all the while plotting to rig global interest rates. In that same article from March 29th, 2012, Matt noted that BoA was still failing, yet they were still being bailed out. Why? The government’s excuse then and still is that they are too big to fail and too big too jail.
On Saturday in her New York Times article Gretchen Morgenson revealed that, we, the American taxpayer, are still bailing out Bank of America in secret deals :
That the New York Fed would shower favors on a big financial institution may not surprise. It has long shielded large banks from assertive regulation and increased capital requirements.
Still, last week’s details of the undisclosed settlement between the New York Fed and Bank of America are remarkable. Not only do the filings show the New York Fed helping to thwart another institution’s fraud case against the bank, they also reveal that the New York Fed agreed to give away what may be billions of dollars in potential legal claims.
Here’s the skinny: Late last Wednesday, the New York Fed said in a court filing that in July it had released Bank of America from all legal claims arising from losses in some mortgage-backed securities the Fed received when the government bailed out the American International Group in 2008. One surprise in the filing, which was part of a case brought by A.I.G., was that the New York Fed let Bank of America off the hook even as A.I.G. was seeking to recover $7 billion in losses on those very mortgage securities.
It gets better.
What did the New York Fed get from Bank of America in this settlement? Some $43 million, it seems, from a small dispute the New York Fed had with the bank on two of the mortgage securities. At the same time, and for no compensation, it released Bank of America from all other legal claims.
[…] To anyone interested in holding banks accountable for mortgage improprieties, the Fed’s actions are bewildering. If the Fed intended that Maiden Lane II own the right to sue Bank of America for fraud, why didn’t it pursue such a potentially rich claim on behalf of taxpayers? The Fed made $2.8 billion on the Maiden Lane II deal, but the recovery from Bank of America could have been much greater. Why did it instead release Bank of America from these liabilities and supply declarations that seem to support the bank in its case against A.I.G.?
The New York Fed would not discuss this matter, citing the litigation. But taxpayers, who might have benefited had the New York Fed brought fraud claims, deserve answers to these questions.
[…] A New York Fed spokesman said it supported the settlement because it would generate significant value without potentially high litigation costs.
Let’s recap: For zero compensation, the New York Fed released Bank of America from what may be sizable legal claims, knowing that A.I.G. was trying to recover on those claims.
If they’re too big to fail, to big to jail then these banks should be too big to exist.
“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”.
President Obama laid out a number of good ideas in his State of the Union address. Unfortunately, almost all of them would require spending money – and given Republican control of the House of Representatives, it’s hard to imagine that happening.
One major proposal, however, wouldn’t involve budget outlays: the president’s call for a rise in the minimum wage from $7.25 an hour to $9, with subsequent increases in line with inflation. The question we need to ask is: Would this be good policy? And the answer, perhaps surprisingly, is a clear yes. [..]
So Mr. Obama’s wage proposal is good economics. It’s also good politics: a wage increase is supported by an overwhelming majority of voters, including a strong majority of self-identified Republican women (but not men). Yet G.O.P. leaders in Congress are opposed to any rise. Why? They say that they’re concerned about the people who might lose their jobs, never mind the evidence that this won’t actually happen. But this isn’t credible.
The details of American antiterrorism policies, put in place after 9/11, are still largely hidden, but more pieces of this sordid history are dribbling out.
A valuable new report issued this month by the Open Society Justice Initiative documents the extent of the Central Intelligence Agency’s use of extraordinary rendition – the practice of abducting suspected terrorists and transferring them to countries with reputations for torturing prisoners during interrogations.
If you want to appreciate just how conservative the fiscal conventional wisdom is, consider that hotbed of Bolshevism, the Federal Reserve. Yes, the central bank that progressives love to hate is today the most expansionist outfit in town.
Although they are arguing about the details, both President Obama and the Republican Congress have committed to another $1.5 trillion of deficit reduction over the next decade, just about guaranteeing a prolonged period of high unemployment, an under-performing economy, and flat or declining wages for most working people.
Consider this thoughtful speech by the Fed’s vice chairman, Janet Yellen, delivered last week at an event jointly sponsored by the AFL-CIO (!) and the German Social Democratic (!) Friedrich Ebert Foundation, titled “A Trans-Atlantic Agenda for Shared Prosperity.” It was light years more progressive than the sort of fiscal summits that the White House has blessed.
Like the global warming deniers, proponents of basing the Social Security cost-of-living adjustment (COLA) on a chained CPI are scared to death of data. They are all anxious to assert that the chained CPI is a more accurate measure of the cost of living and therefore it should provide the basis for the COLA. However, they have no research on which to base this assertion. [..]
While no one knows what a full elderly CPI will show, we do know that switching the COLA to a chained CPI will reduce lifetime Social Security benefits by an average of about 3 percent. This doesn’t raise a huge amount of money, but it would be a big hit to seniors, 70 percent of whom rely on Social Security for more than half of their income.
Over 35,000 people descended on the National Mall in Washington on Sunday, huddled together against a stinging cold wind to deliver a message of opposition to the Keystone XL pipeline. Their audience was really just one man, the only one with the power to stop the project: Barack Obama.
“This movement has been building for a long time. And one of the things that’s built it is everybody’s desire to give the president the support he needs to block this Keystone pipeline,” Bill McKibben, president of 350.org, told reporters just before the rally began. “The time for him to stand up now. He’s been saying good things about climate change, but the easiest, simplest, purest action he could take is to not build this long fuse to one of the biggest carbon bombs on earth.”
In the run up to the Iraq War, the New York Times (9/8/02) famously reported on an Iraqi scheme to procure special aluminum tubes that could only have one purpose: Iraq’s secret nuclear weapons program. Saddam Hussein was attempting to “buy thousands of specially designed aluminum tubes,” and the “diameter, thickness and other technical specifications of the aluminum tubes had persuaded American intelligence experts that they were meant for Iraq’s nuclear program.” The claims were false-Iraq, as it turned out, had no nuclear program-but still hugely influential
Yesterday, on the front page of the Washington Post (2/14/13), reporter Joby Warrick has the scoop on what Iran is evidently up to: [..]
It’s worth noting that back in 2002 there was one newspaper that poured cold water on the Iraq tubes story. It was the Washington Post. The reporter? The same Joby Warrick who wrote this story about Iranian magnets. And whose expertise did he rely on? David Albright of ISIS-the very same person pushing the Iran story now.
Dr. Baker start off citing Mr. Friedman’s first paragraph:
It begins by telling us that Tim Cook and Apple are sitting on $137 billion that they could be investing:
“Apple is currently sitting on $137 billion of cash in the bank. There are many reasons Apple has not spent its cash horde, but I’ll bet anything that one of them is the uncertain economic and tax environment in this country. Think about how much better we’d all be if Apple, and the many other companies sitting on cash, felt confident enough in the future to spend it. These are the most dynamic companies in the world. They don’t need any government help to innovate.”
He goes on to explain how, at this time, investment in equipment and software is near pre-recession levels. He then moves on to Mr. Friedman’s wrongheadedness about consumption and the trade deficit.
Then Dr. Dean get to the real nitty gritty of how really wrong Friedman is on getting the American economy moving is this theory on investment in infrastructure and early childhood education:
Friedman just keeps getting better:
“Our choice today is not ‘austerity’ versus ‘no austerity.’ That is a straw man argument offered by both extremes. It’s about whether we phase in – in the least painful way possible – a long-term plan that balances our need to protect the most vulnerable in this generation while funding the most opportunities for the next generation, and still creating growth. We can’t protect both generations in full anymore, but we must not sacrifice one for the other – favoring nursing homes over nursery schools – and that’s what we’re on track to do.”
You have to love the line:
“We can’t protect both generations in full anymore.”
Somehow Friedman missed the fact that the problem we are facing is a lack of demand. We need people to spend more not less. How does austerity reduce unemployment and get the economy back to full employment? It hasn’t worked in Ireland, Greece, Spain, the United Kingdom or anywhere else that can be identified. How on earth does the fact that we now face a huge gap in demand mean that we are less well-situated to “protect both generations.” (Of course he doesn’t say anything about income distribution.)
Again, if Friedman could be taught some intro economics it would be hugely helpful here. Suppose Friedman gets his wish for a grand bargain and everyone working today knew that they would be seeing sharply lower Social Security and Medicare benefits in the future. All of those consumers who Friedman thinks are paralyzed by uncertainty will suddenly realize that they can be certain that they will need more money to support themselves in retirement because the Thomas Friedmans of the world have taken away their Social Security and Medicare.
As Mr. Friedman has written, he mostly travel’s by taxi. So Dr. Baker has an idea on how you can help with Mr. Friedman’s economic education if you live in New York City:
Print copies of the two graph’s the investment share of GDP and consumption as a share of disposable income;
Give then to NYC cab driver’s to give to Mr. Friedman if, and when, they pick him up.
The theory is that if enough people do this eventually Mr. Friedman will learn something about economics and we will “no longer have to see painfully wrongheaded columns on the economy in the Sunday NYT.”
I stopped reading Mr. Friedman’s columns sometime after 2006, three years into the Iraq War that was only suppose to last six months. Mr. Friedman started predicting the outcome of the war would take six months in 2003. He did it often enough that Atrios started calling the prediction a “Friedman Unit” in 2006 and it became a running joke thereafter.
Recent Comments