Tag: Politics

The the tilt of the justice system that now favors the very elite took its sharpest turn with President Gerald Ford’s pardon of Richard Nixon. That pardon cost Ford his own term in the Oval Office and paved the way for future presidents to ignore the laws. In 2006, Americans infuriated with the corruption and crimes of the Bush administration, overwhelmingly threw out the Republicans from both houses of Congress. The electorate wanted the Bush cabal reigned in even if it meant the impeachment if both George W. Bush and his puppet master, Dick Cheney. They wanted the restoration of the balance of powers, the rules of law and the Constitution. So what did the Democratic leadership under House Speaker Nancy Pelosi and Majority Leader Sen. Harry Reid, do? They took impeachment off the table and paved the way for even more abuse of power by the executive branch, trampling of protected freedoms, and disregard for the law. President Barack Obama has refused to investigate the Bush administration crimes and has bent over backwards to continue to cover them up by hiding the evidence under the guise of national security. The current attempt by Obama and his Justice Department to exempt the banking industry from being held responsible for the fraud that brought this country to its economic knees, is a violation of his oath of office. The fact that the Americans are now fed up with our political system that has perpetuated this is now evident across this country with Occupy Wall Street. Our elected officials need to start listening, the message is clear, hold the criminals responsible whether it be Wall St., the banks or our elected representatives.

Glenn Greenwald, contributing editor for Salon and author of the new book, “Liberty and Justice for Some”, talks with Rachel Maddow about how the justice system in the United States has become corrupted such that powerful people are not prosecuted for breaking the law.

As multiple episodes demonstrate, a belief that elite immunity is both necessary and justified became the prevailing ethos in the nation’s most influential circles. In countless instances over recent years, prominent political and media figures have insisted that serious crimes by the most powerful should be overlooked- either in the name of the common good, or in the name of a warped conception of fairness according to which those with the greatest power are the most entitled to deference and understanding.

This is what makes the contemporary form of American lawlessness new and unprecedented. It is now perfectly common, and perfectly acceptable, to openly advocate elite immunity. And this advocacy has had its intended effect: the United States has become a nation that does not apply the rule of law to its elite class, which is another way of saying that the United States does not apply the rule of law. . . .

If the threat of real punishment for criminality is removed, for many rational people there will be little incentive to abide by the law and much incentive to break it. Alexander Hamilton, in Federalist 15, explained why.

   “It is essential to the idea of a law, that it be attended with a sanction; or, in other words, a penalty or punishment for disobedience. If there be no penalty annexed to disobedience, the resolutions or commands which pretend to be laws will, in fact, amount to nothing more than advice or recommendation.”

For the nation’s most powerful elites, the law has indeed been whittled down to “nothing more than advice or recommendation.” Although there have been episodes of unpunished elite malfeasance throughout American history, the explicit, systematic embrace of the notion that such malfeasance should be shielded from legal consequences begins with the Watergate scandal- one of the clearest cases of widespread, deliberate criminality at the highest level of the U.S. government.

Occupy Wall Street NYC now has a web site for its General Assembly  with up dates and information. Very informative and user friendly. It has information about events, a bulletin board, groups and minutes of the GA meetings.

Date/Time

Date(s) – 26 Oct 2011

3:00 PM – 7:00 PM

Location

Liberty Plaza

Under the Big Red Thing

   March

Time:

3:00pm Sign Making in Liberty Plaza

4:00pm Open Speakout – come share your personal struggles with our healthcare system

4:30pm March Against the Health Insurance Industry

March Details:

4:30pm – Empire Blue Cross Blue Shield / One Liberty Plaza: located across the street from Zuccotti park, Empire is a subsidiary of WellPoint, the largest publicly-traded health insurance company. CEO Angela Braley’s overall compensation is $13.1 million dollars, enough to cover 1455 New Yorkers.

5:30pm – WellCare / 110 5th Ave: the for-profit company that administers Medicaid and Medicare Advantage programs in New York and other states. Currently being investigated for fraud with estimates that WellCare illegally siphoned $400 million to $600 million from state health insurance programs for the poor. (1)

6pm – St Vincent’s Community Hospital / 12th St & 7th Ave: closed earlier this year due to bankruptcy, St Vincent’s is a casualty of profit-driven insurers and a healthcare system that leaves 50 million Americans uninsured. There are now no hospitals on the westside below 57th st.

From our friend evenyc at Daily Kos

OAKLAND — Police fired tear gas at least five times Tuesday night into a crowd of several hundred protesters backing the Occupy movement who unsuccessfully tried to retake an encampment outside Oakland City Hall that officers had cleared away more than 12 hours earlier.

Police gave repeated warnings to protesters to disperse from the entrance to Frank Ogawa Plaza at 14th Street and Broadway before firing several tear gas canisters into the crowd at about 7:45 p.m. Police had announced over a loudspeaker that those who refused to leave could be targeted by “chemical agents.”

President Obama announced that millions more underwater homeowners can take advantage of a refinancing program if their loan is owned or guaranteed by Fannie Mae or Freddie Mac. But, there are shortcomings, helpings banks more than homeowners by eliminating liability associated with the origination of the mortgage, including putback liability. From Yves Smith who asks why Obama is bothering to do this:

First, Obama is addicted to the appearance of Doing Something, regardless of whether it is productive. A clear sign is the apparent failure to investigate why HARP was a dud.

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Second, this is a sop to the banks, because a refi ends any liability associated with the origination of the mortgage, including putback liability. Now that would seem to be a big “get out of jail free” card for banks engaged in putback litigation. But the reason this is not as nefarious as it might seem is that current mortgages aren’t the big bone of contention in putbacks (even if the originator lied, the borrower is paying, so there are no damages). But it would also end any chain of title issue on that mortgage

At Huffington Post, Zack Carter gives a more detailed explanation:

   The newly expanded program would expunge legal liabilities associated with mortgages refinanced through the program for the original lenders of the mortgages. Each time a bank sent a loan to Fannie and Freddie, it certified that the loan met Fannie and Freddie’s safe lending criteria. But many loans sent to the mortgage giants did not, in fact, meet those criteria. Currently, when borrowers default on those ineligible loans, the mortgage giants can “put back” the resulting losses onto the banks that pushed the loans.

   Under the modified plan, “put back” liability at banks will be erased for any underwater mortgage that is refinanced through HARP, eliminating Fannie and Freddie’s ability to sack lenders with losses in the event that the mortgage does not pan out.

   If borrowers go through HARP, but decide after several months that the modest monthly savings do not outweigh owing tens of thousands of dollars more than their home is worth, taxpayer-owned Fannie and Freddie will have to take the full loss. Even if the original loan was sent to Fannie and Freddie with false or fraudulent guarantees from the bank – promises that may directly be tied to the borrower’s current financial problems – banks will be immune from liability. Fannie and Freddie plan to charge banks “a modest fee” to extinguish this liability, but the administration has yet to determine what that fee will be.

Professor William Black of the University of Missouri, Kansas City and Zack Carter of the Huffington Post join Dylan Ratigan to discuss the problems of Obama’s mortgage program

Find out why Mayor Chris Myers, Medford, N.J., is WORSE; Dave Briggs, Alisyn Camerota and Clayton Morris, hosts of the weekend edition of Fox & Friends on “Fixed” News, are WORSER; and Herman Cain is the WORST PERSON IN THE WORLD for Oct. 24, 2011.

Perry: Tax Cuts For All, Protect Social Security – And Privatize It

Rick Perry gave a major speech in South Carolina on Tuesday, laying out his “Cut, Balance and Grow” economic plan – the centerpiece of which is a tax reform proposal that would give people the choice of filing their taxes under the current code, or a 20% flat tax.

The political benefit of such a plan should be obvious: Allowing wealthier individuals to take a huge tax cut, while in theory not necessarily raising taxes on lower-income people who would not do as well under a flat tax, by at least giving them the legal option of paying a lower rate with more paperwork.

Perry also called for a drop in the corporate tax rate to 20%, while also eliminating loopholes. He would also not tax repatriated profits, if the taxes were already paid in the countries where the profits were earned. And, for a limited time, he would offer a reduced tax rate of 5.25% on repatriated earnings.

On Social Security, Perry appeared to give two contrary messages: To uphold the solvency of the program – and to allow young workers to divert funds away from it.

From the prepared remarks:

   Second, we will end the current pillaging of the Social Security Trust Fund by Washington politicians. Here is the hard truth: the trust fund is full of IOU’s, without a single dime of money left over from what workers have paid in. The politicians have borrowed against it for years. And in order to redeem the IOU’s in the fund, they will have to either raise taxes or cut spending on other programs to replenish it.

   Here is the other hard truth: if we don’t act, in 25 years benefits will be slashed 23 percent overnight. Protecting Social Security benefits begins with protecting the solvency of the fund, and stopping all current borrowing from the fund, just as we have done with the highway trust fund.

But this is then immediately followed by:

   The third principle of reform is to allow young workers to invest a portion of their payroll taxes into private accounts if they so choose.

   I am not naïve. I know this idea will be attacked. But a couple of facts are worth stating: one, the return on investment in Social Security is so small it is like an interest bearing savings account. Over the long-term, the markets generate a much higher yield.

   Second, opposition to this simple measure is based on a simple supposition: that the people are not smart enough to look out for themselves. The liberals think the American people cannot be trusted to safeguard even a portion of their own retirement dollars. It is time to end the nanny state and empower our people to exercise greater control over their money.

“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”.

Bill Black: The Anti-Regulators are the “Job Killers”

The new mantra of the Republican Party is the old mantra – regulation is a “job killer.”  It is certainly possible to have regulations kill jobs, and when I was a financial regulator I was a leader in cutting away many dumb requirements.   We have just experienced the epic ability of the anti-regulators to kill well over ten million jobs.  Why then is there not a single word from the new House leadership about investigations to determine how the anti-regulators did their damage?  Why is there no plan to investigate the fields in which inadequate regulation most endangers jobs?  While we’re at it, why not investigate the areas in which inadequate regulation allows firms to maim and kill.  This column addresses only financial regulation.

Deregulation, desupervision, and de facto decriminalization (the three “des”) created the criminogenic environment that drove the modern U.S. financial crises.  The three “des” were essential to create the epidemics of accounting control fraud that hyper-inflated the bubble that triggered the Great Recession.  “Job killing” is a combination of two factors – increased job losses and decreased job creation.  I’ll focus solely on private sector jobs – but the recession has also been devastating in terms of the loss of state and local governmental jobs.  

Paul Krugman: The Hole in Europe’s Bucket

If it weren’t so tragic, the current European crisis would be funny, in a gallows-humor sort of way. For as one rescue plan after another falls flat, Europe’s Very Serious People – who are, if such a thing is possible, even more pompous and self-regarding than their American counterparts – just keep looking more and more ridiculous.

I’ll get to the tragedy in a minute. First, let’s talk about the pratfalls, which have lately had me humming the old children’s song “There’s a Hole in My Bucket.”

For those not familiar with the song, it concerns a lazy farmer who complains about said hole and is told by his wife to fix it. Each action she suggests, however, turns out to require a prior action, and, eventually, she tells him to draw some water from the well. “But there’s a hole in my bucket, dear Liza, dear Liza.”

What does this have to do with Europe? Well, at this point, Greece, where the crisis began, is no more than a grim sideshow. The clear and present danger comes instead from a sort of bank run on Italy, the euro area’s third-largest economy. Investors, fearing a possible default, are demanding high interest rates on Italian debt. And these high interest rates, by raising the burden of debt service, make default more likely.

Occupy Wall Street NYC now has a web site for its General Assembly  with up dates and information. Very informative and user friendly. It has information about events, a bulletin board, groups and minutes of the GA meetings.

New York Governor, Andrew Cuomo, got told “No, we won’t do that” by Albany’s police and New York State troopers when ordered to clear Occupy Wall Street protesters from a park across the street from the state Capitol and Albany ‘s City Hall:

ALBANY — In a tense battle of wills, state troopers and Albany police held off making arrests of dozens of protesters near the Capitol over the weekend even as Albany’s mayor, under pressure from Gov. Andrew Cuomo’s administration, had urged his police chief to enforce a city curfew.

The situation intensified late Friday evening when Jennings, who has cultivated a strong relationship with Cuomo, directed his department to arrest protesters who refused to leave the city-owned portion of a large park that’s across Washington Avenue from the Capitol and City Hall.

At the Capitol, in anticipation of possibly dozens of arrests, a State Police civil disturbance unit was quietly activated, according to officials briefed on the matter but not authorized to comment publicly. But as the curfew neared, the group of protesters estimated at several hundred moved across an invisible line in the park from state land onto city property.

“We were ready to make arrests if needed, but these people complied with our orders,” a State Police official said. However, he added that State Police supported the defiant posture of Albany police leaders to hold off making arrests for the low-level offense of trespassing, in part because of concern it could incite a riot or draw thousands of protesters in a backlash that could endanger police and the public.

“We don’t have those resources, and these people were not causing trouble,” the official said. “The bottom line is the police know policing, not the governor and not the mayor.”

And to add to the ego deflation for Gov. Cuomo, Albany County District Attorney David Soares has stated:

“Our official policy with peaceful protesters is that unless there is property damage or injuries to law enforcement, we don’t prosecute people protesting,” Soares said. “If law enforcement engaged in a pre-emptive strike and started arresting people I believe it would lead to calamitous results, and the people protesting so far are peaceful.”

The camp has been named “Cuomoville”

Some protesters Monday were angry with the governor.

“Gov. Cuomo’s new name is Gov. 1 Percent because that’s who he chooses to represent – the more wealthy residents of New York state, those on Wall Street, his backers and supporters,” said Victorio Reyes, 37, a community organizer with the Social Justice Center of Albany who was making video reports from the park. “We’re not going to stand for it.”

Cuomo insists the temporary surcharge on incomes over $200,000 should expire Dec. 31, as planned when it was created under Gov. David Paterson to address a fiscal crisis. Cuomo and other opponents of the tax say it and a new proposal to tax earnings over $1 million would drive tax revenue and jobs out of state.

As anyone knows who has ever had to set up a military encampment or build a village from the ground up, occupations pose staggering logistical problems. Large numbers of people must be fed and kept reasonably warm and dry. Trash has to be removed; medical care and rudimentary security provided — to which ends a dozen or more committees may toil night and day. But for the individual occupier, one problem often overshadows everything else, including job loss, the destruction of the middle class, and the reign of the 1%. And that is the single question: Where am I going to pee?

Some of the Occupy Wall Street encampments now spreading across the U.S. have access to Port-o-Potties (Freedom Plaza in Washington, D.C.) or, better yet, restrooms with sinks and running water (Fort Wayne, Indiana). Others require their residents to forage on their own. At Zuccotti Park, just blocks from Wall Street, this means long waits for the restroom at a nearby Burger King or somewhat shorter ones at a Starbucks a block away. At McPherson Square in D.C., a twenty-something occupier showed me the pizza parlor where she can cop a pee during the hours it’s open, as well as the alley where she crouches late at night. Anyone with restroom-related issues — arising from age, pregnancy, prostate problems, or irritable bowel syndrome — should prepare to join the revolution in diapers.

Of course, political protesters do not face the challenges of urban camping alone. Homeless people confront the same issues every day: how to scrape together meals, keep warm at night by covering themselves with cardboard or tarp, and relieve themselves without committing a crime. Public restrooms are sparse in American cities — “as if the need to go to the bathroom does not exist,” travel expert Arthur Frommer once observed.  And yet to yield to bladder pressure is to risk arrest.

“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”.

New York Times Editorial: No Holiday

Big business has clearly decided that the economic crisis is too important to waste. While Washington debates how to create jobs and cut the budget deficit, major corporations – read major campaign contributors – are pushing Congress for an enormous tax cut on corporate profits. Lawmakers seem all too eager to grant their wish.

snip

These days, corporations are flush with $2 trillion in cash that is not being used for hiring. As long as the economy is weak and consumers aren’t spending, tax cuts will add to the cash pile, not create jobs. A tax holiday also would add to the deficit, in part because companies rush to bring money home, rather than repatriating the earnings over time at the usual rate. According to Congress’s Joint Committee on Taxation, another tax holiday at 5.25 percent would increase the deficit by nearly $80 billion over 10 years; a rate of 10.5 percent would cost $42 billion.

E.J. Dionne, Jr.: Perry, Cain and Flat Earth Government

It’s one of the strangest things in our politics: The only “big” ideas Republicans and conservatives seem to offer these days revolve around novel and sometimes bizarre ways of cutting taxes on rich people.

Given all the attention that Herman Cain’s nonsensical and regressive “9-9-9 tax plan” has received, the Republican debates should have as their soundtrack that old Beatles song that droned on about the number nine.

Now, Texas Gov. Rick Perry hopes to pump up his campaign with a supposedly bold proposal to institute a flat tax, which would also deliver more money to the well-off. Perry plans to outline his proposal this week, but has already touted it as a surefire way of “scrapping the 3 million words of the current tax code.”

President Obama and Washington still don’t get it. The Obama administration and Congress either don’t understand or are choosing to ignore the message from Occupy Wall St. Matt Taibbi exams two “disgusting developments” that have taken place since the demonstrations started. One was the shifting a huge collection of Merrill Lynch derivatives contracts onto Bank of America’s own federally-insured balance sheet. The second is Obama apparently expressing willingness to junk big chunks of Sarbanes-Oxley in exchange for support for his jobs program

Sarbanes-Oxley is an anti-trust law which was passed by Congress in 2002 in the wake of the accounting scandals of Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation’s securities markets. Now Obama’s Council on Jobs and Competitiveness, which is made up of 27-members, mostly of corporate executives, along with a handful of investors, labor leaders and academics, would like to lift some of these regulations on the pretext that it would create jobs:

Watering down Sarbanes-Oxley has long been a goal of corporate America, despite studies by the Securities and Exchange Commission showing that the law has reduced errors and fraud, and that changes to the law have made it easier for companies to comply.

As for the supposed barriers to investment, history is rife with companies that cooked their books to lure investors and created jobs in the short run, before imploding and causing mass joblessness.

Anything-goes markets are great for investors who get out before the jig is up, or who get bailed out when their bets go bad. They are a raw deal for everyone else.

Specifically, the report calls for compliance with Sarbanes-Oxley to be made voluntary for public companies worth less than $1 billion.

That would relieve some 6,000 companies — or 75 percent of all publicly traded companies — from various requirements, including the rule that corporate boards have independent audit committees, that corporate executives attest to the accuracy of the company’s financial statements, and that bonuses based on fraudulent statements be subject to clawback.

The view of this proposal from Canada:

It has come to this, then: In the all-consuming desire to do something, nearly anything, to promote job creation, Mr. Obama seems willing to gut one of the most significant investor protections of our time. If the anti-Sarbanes Oxley proposal succeeds, it is the Americans – and Canadians – who invest in U.S. stocks who will lose.

Sarbanes-Oxley, among many things, required the chief executive officer and chief financial officer publicly sign off on the accuracy of company financial reports and, with its “404” provisions, forced companies to document the internal controls used to produce accurate financial statements. Separately, the “Spitzer Decree” tried to improve the quality of analyst research by cutting the link between it and deal fees. And the Fair Disclosure Act set up rules to keep companies from whispering material information to favoured investors.

The Jobs Council is taking aim at all of it, suggesting rules be “right-sized” to exempt all but the largest companies. “Well-intentioned regulations aimed at protecting the public from the misrepresentations of a small number of large companies have unintentionally placed significant burdens on the large number of smaller companies,” the Jobs Council said in its interim report.

Unfortunately, the Jobs Council misunderstands or misrepresents the history of Sarbanes-Oxley and proposes a sledgehammer solution that fails to kill the fly, while smashing investors in the chops.

While Enron and WorldCom provided the political impetus to get Sarbanes-Oxley passed, there were sound intellectual underpinnings to the 404 provisions, which required companies to spend significant sums on improving internal controls. U.S. companies, absent regulation, simply weren’t spending the time or money required to do the best possible job of producing accurate financial statements.

Smaller companies, particularly those who recently went public, often were the worst offenders; they are now the companies the Jobs Council most wants to spare from the provisions.

Taibbi:

If the financial crisis proved anything, it’s that Wall Street companies in particular have been serial offenders in the area of dishonest accounting and book-cooking. Sarbanes-Oxley is obviously no panacea, but removing it in exchange for a temporary, election-year job boost is exactly the kind of myopic, absurdly irresponsible shit that got us into this mess in the first place. For Obama to pull this in the middle of these protests is crazy.

If anyone thought OWS has already done its job, and Washington has gotten the message already, think again. They’re not going to change until the protesters force them to change, it seems.

Occupy Wall Street NYC now has a web site for its General Assembly  with up dates and information. Very informative and user friendly. It has information about events, a bulletin board, groups and minutes of the GA meetings.

Naomi Wolf, political activist and author of “Give Me Liberty,” calls attention to the enormous power that the federal government can wield to prevent constitutionally guaranteed rights. “History shows they start with the Other and it gets closer and closer and closer and someday they come for you.”

Mayor Bloomberg is planning Draconian new measures to crack down on what he calls the “disruption” caused by the protesters at Zuccotti Park, and he is citing neighbors’ complaints about noise and mess. This set of talking points, and this strategy, is being geared up as well by administrations of municipalities around the nation in response to the endurance and growing influence of the Occupation protest sites. But the idea that any administration has the unmediated option of “striking a balance,” in Bloomberg’s words, that it likes, and closing down peaceful and lawful disruption of business as usual as it sees fit is a grave misunderstanding — or, more likely, deliberate misrepresentation — of our legal social contract as American citizens.

Some kinds of disruption in a free republic are not “optional extras” if the First Amendment governs the land, as it does ours, and are certainly not subject to the whims of mayors or local police, or even DHS. Just as protesters don’t have a blanket right to do everything they want, there is absolutely no blanket right of mayors or even of other citizens to be free from the effect of certain kinds of disruption resulting from their fellow citizens exercising First Amendment rights. That notion, presented right now by Bloomberg and other vested interests, of a “disruption-free” social contract is pure invention — just like the flat-out fabrication of the nonexistent permit cited in my own detention outside the Huffington Post Game Changers event this last Tuesday, when police told me, without the event organizers’ knowledge and contrary to their intentions, that a private entity had “control of the sidewalks” for several hours. (In fact, the permit in question — a red carpet event permit! — actually guarantees citizens’ rights to walk and even engage in political assembly on the streets if they do not block pedestrian traffic, as the OWS protesters were not.)