Tag: TMC Politics

Mortgage Backed Securities Are Back

Everything old is new again and the people that should be paying the price for the housing crash are again going to profit from the further pain of the 11 million people left behind by the Foreclosure Fraud Settlement.

Bonds Backed by Mortgages Regain Allure

by Azam Ahmed

Some Wall Street investors made money as the mortgage market boomed; others profited when it fell apart.

Having reaped big gains during both of those turns, Greg Lippmann, a former star trader at Deutsche Bank, is now catching the next upswing: buying the same securities built from mortgages that he bet against before the financial crisis erupted.

Mr. Lippmann is joined by other big-money investors – mutual funds like Fidelity as well as hedge funds – in riding a wave of interest in the same complex loan pools that nearly washed away the financial system.

The attraction is the price. Some mortgage bonds are so cheap that even in the worst forecasts, with home prices falling as much as 10 percent and foreclosures rising, investors say they can still make money. [..]

Yet the tide could turn again and wipe out investors. Chief among the risks is Europe: the Continent’s banks still hold a significant amount of United States mortgage securities, and if they are forced to sell assets, it could wreak havoc on the market.

Washington is a question mark, too. If banks have to pay for loans they issued under dubious circumstances, it would be a home run for investors, who could receive full payment for a mortgage in a security they bought at a discount. But if borrowers whose houses are worth less than their mortgages are able to reduce their principals on a large scale, bond investors could suffer because the securities would be worth even less than they paid. [..]

As for Mr. Lippmann, his reputation has made it both easier and more difficult to get commitments from investors. Some are impressed by his well-publicized bet against the mortgage market; others are turned off by his high profile in an industry known for secrecy and discretion.

LibreMax, made up of several members of Mr. Lippmann’s team from Deutsche Bank, has raised more than $1 billion in a little over a year. His performance has been relatively strong during a period of market turmoil – up 2 percent last year and a little more than 6 percent since launching.

What Yves Smith said:

The Times is quoting Greg Lippmann, the patient zero of subprime? If the SEC investigation of Deutsche Bank were remotely serious, Lippmann would be in serious trouble. What Greg Zuckerman and Michael Lewis have written about them in their books on subprime shorts alone is grist for a good civil suit. And even worse, the headline implies that there is a market for newly issued non-governemnt guaranteed bonds (wrong, that’s dead) when this is about speculation in vintage subprime.

The funniest bit is that the Times is acting as if the fact that Lippmann is talking up the market is a tip of sorts. As one of my buddies pointed out long ago, what you worry about when an investor talks up his book is not that he is trying to get more people in to raise the price, but he is trying to get more people in so he can complete his exit.

History may be repeating itself, again

Punting the Pundits: Sunday Preview Edition

Punting the Punditsis 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”.

The Sunday Talking Heads:

Up with Chris Hayes: The line up of Sunday’s guests was not available.

The Melissa Harris-Perry Show: MSNBC contributor, author and Tulane Professor Melissa Harris-Perry debuts her weekend program, “Melissa Harris-Perry,” on Saturday, February 18 at 10 a.m. ET. Melissa’s show will be live from 10a-noon ET both Saturday and Sunday after Up With Chris Hayes

This Week with George Stephanopolis: Sen. John McCain (R-AZ) is interviewed by Jake Tapper and, later, former White House press secretary Robert Gibbs. The “This Week” roundtable debates all the week’s politics, with ABC’s George Will, ABC News senior political correspondent Jonathan Karl, FOX Business Network host Lou Dobbs, Vanity Fair contributing editor and former Clinton White House press secretary Dee Dee Myers, and Chicago Tribune columnist Clarence Page.

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests are GOP Presidential candidate Rick Santorum and an interview with Mitt Romney biographer Michael Kranish. The panel guests are CBS News’ Norah O’Donnell and John Dickerson, The Washington Post‘s Karen Tumulty and The Detroit Free PressTodd Spangler.

The Chris Matthews Show: This week’s guests Liz Marlantes, The Christian Science Monitor; Michael Duffy, TIME Magazine Assistant Managing Editor; Major Garrett, National Journal Congressional Correspondent; and Kelly O’Donnell, NBC News Capitol Hill Correspondent.

Meet the Press with David Gregory: the House Budget Committee ranking member Rep. Chris Van Hollen (D-MD) and Chairman Rep. Paul Ryan (R-WI) debate the economy. The roundtable guests are GOP strategist Ed Gillespie, Bloomberg‘s Al Hunt, The NY TimesHelene Cooper, and NBC’s Andrea Mitchell.

State of the Union with Candy Crowley: Presidential candidate Rep. Ron Paul (R-TX) is interviewed by Ms. Crowley. Indiana Governor Mitch Daniels (R), and former GOP Presidential Candidate Michele Bachmann (R-MI) assess the state of the GOP field. Former CIA director Michael Hayden and former ambassador to Egypt and Israel, Ed Walker discuss the turmoil in the Middle East.

Rape Is No Laughing Matter

Keith Olbermann sets the record straight on the false accusations of rapist and rape apologists of Andrew Breitbart.

Keith Olbermann: Andrew Breitbart is ‘exploiting rape victims’ to smear Occupy movement

Transcript:

KEITH OLBERMANN: As I noted, we have had – and we will continue to have – as much fun at possible with the on-camera meltdown of Andrew Breitbart in front of a group of Occupy protesters at CPAC last weekend.

But, in our number one-story on the “Countdown” – the subject of rape is no laughing matter. The allegation that a political or cultural group condones or encourages rape and sexual assault, against anyone, is virtually as serious a charge as can be leveled. Yet nearly just as bad is to fabricate, twist, and alter facts, to make it seem like such a charge against such a group has any credence at all.

Mr. Breitbart and his websites have now promulgated a list of what his people boast are 17 rapes at Occupy protests between October 16th and November 19th of last year. Seventeen stories and links, listed “Rapes and Various Sexual Crimes,” and all of them attributed to Occupy.

It turns out Breitbart and his people have padded this list. They have listed some stories twice. In nearly every case, Breitbart’s crew has twisted nearly every one of the allegations in the stories. The idea seems to have been to make as long a list as possible, and assume that your supporters will never bother to link through to the actual stories, let alone follow up to find their true outcomes. Those who do will find Mr. Breitbart and his colleagues are lying.

Story number one – Madison, Wisconsin. Turns out this is the story of Occupy Madison losing its permit for a couple of days, in part because of a charge that somebody was masturbating in public. No charges, no names, no evidence, and even the head of the local business association which brought the complaint, one Mary Carbine, was emphatic that the behavior was, “not necessarily by the protesters themselves.”

Number two – Cleveland. Refers to an alleged assault of a member of Occupy Cleveland. No arrests and the police offer no indication the alleged assailant was a member of Occupy.

Number three – Seattle. Turns out to be the arrest of a man for indecent exposure in schoolyards and other parks, not at Occupy Seattle. Detectives say they were told the suspect had been seen at Occupy and, again, they make no claim he was associated with Occupy.

Number four – Cleveland. This is the same story as number two. Listed twice. This time, a Fox News video is linked as well.

Number five – Dallas. An alleged assault victim told police the sex in question was consensual. She would not press charges nor cooperate with authorities. The claim that there was an assault in the first place originated with one local TV station’s anonymous source in the Dallas police department.

Number six – Portland, Oregon. The registered address a sex offender gave authorities turned out to be the same address as the Occupy Portland camp. The police have no evidence he was ever there, nor do any witnesses place him there.

Number seven – Lawrence, Kansas. A local police captain named Jim Martin is quoted, in the Breitbart-linked story, as saying “someone who had been at the Occupy Lawrence camp reported on Monday morning a possible sexual assault. Martin said he did not believe the victim or any possible suspects were members of the group.”

Number eight – Glasgow. Breitbart assigns responsibility for an assault on an Occupy protester in Scotland to the American Occupy movement. He also does not note that the morning after the incident, Occupy organizers voluntarily began to disbanded the camp after police refused to provide security.

Number nine – Manchester, New Hampshire. A woman operating out of her own home is arrested in her own home there after she tries to turn an Occupy protester into a prostitute.

Number 10 – New York City. An Occupy protester is assaulted in her tent.

Number 11 – New York City. It’s the same story as number ten. They again listed it twice.

Number 12 – Chula Vista, California. On November 6th, a woman posts on the Occupy Los Angeles Facebook page, asking Occupy to help locate her daughter, a 16-year-old named Ashley Springer. The last the woman knew, Ashley Springer was at OccupyLA and then she disappeared. Breitbart does not note that by December 9th, Ashley Springer was home – safe, sound, and unharmed.

Number 13 – Philadelphia. The Breitbart list blares “Occupier Arrest for Rape.” The actual newspaper headline at the other end of the link says “Man arrested in Occupy Philly Sexual Assault.” The alleged victim was a member of Occupy, not the assailant, even though Breitbart implies it was the other way around.

Number 14 – Austin, Texas. A man in a sleeping bag near the Occupy encampment in a public square is arrested for allegedly masturbating in front of a 16-year-old. Again, despite the Breitbart headline, “Occupier Accused of Masturbating In Front of 16-Year-Old Girl,” in the actual story that Breitbart links to, police do not conclude that either the victim or perpetrator was involved with Occupy.

Number 15 – Chicago. A 21-year-old man named Robert Reitz, whom Occupy Chicago confirmed had attended some of its events, is arrested at his home, on child-porn charges. Breitbart does not bother to note that, in the second half of the very story he linked to, Occupy Chicago responded to the arrest by immediately banning this Reitz from its encampment.

Number 16 – St. Louis. Again, the victim in an assault is identified as a member of Occupy, not the alleged perpetrator.

Number 17 – New York City. Again, the victim in a fondling case is a member of Occupy, police identify the assailant as a neighborhood homeless person.

So, seventeen stories Breitbart claims are cases of rape by Occupy. Just reading the stories, just Googling the names of those identified, following up on these stories, that took me only about 70 minutes. The final result? Two cases of the stories on the list were duplicates, one story turns out to have been about consensual sex. One case, in Scotland, led the Occupy group to disband for the sake of safety. One case of an arrest for child porn, with Occupy immediately banning the alleged perpetrator. One case of a girl disappearing, ignoring the fact that she was home and unharmed a month later. Four cases in which police said neither the victim nor the assailant were apparently even associated with Occupy.

That leaves seven stories, all of which show police identifying Occupy participants as the victims, six of which show police identifying the alleged assailants as not being Occupy participants. That is the evidence that Andrew Breitbart has submitted to rationalize his irrational attempt to smear the Occupy movement, and Occupy members, as rapists, and to brand anybody who points out his dishonesty, his twisting of the facts – and who bothers to actually read the stories that disprove his own contention – to paint then as a rape denier or rape apologist.

What Mr. Breitbart and his fellow propagandists have done, in fact, is to take at least eight women – eight members of Occupy, who were raped or otherwise assaulted – and blamed them for being raped. He is not just perpetrating the classic fabrication con of the dishonest man, for whom facts are malleable and can be ignored when they are inconvenient.

More importantly, Breitbart is exploiting rape victims, blaming rape victims. And no woman, no man – conservative, liberal, or indifferent – can abide this despicable attempt to take individual human suffering and, by lying at the top of his voice, try to score cheap political points with it.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

New York Times Editorial: Europe’s Failed Course

Struggling euro-zone economies like Greece, Portugal, Spain and Italy cannot cut their way back to growth. Demanding rigid austerity from them as the price of European support has lengthened and deepened their recessions. It has made their debts harder, not easier, to pay off.

As The Times’s Landon Thomas Jr. reported this week, Portugal has met every demand from the European Union and the International Monetary Fund. It has cut wages and pensions, slashed public spending and raised taxes. Those steps have deepened its recession, making it even less able to repay its debts. When it received a bailout last May, Portugal’s ratio of debt to gross domestic product was 107 percent. By next year, it is expected to rise to 118 percent. That ratio will continue to rise so long as the economy shrinks. That is, indeed, the very definition of a vicious circle.

William Greider: Still No End to ‘Too Big to Fail’

When Congress passed the Dodd-Frank financial reform bill in the summer of 2010, the Obama administration made happy talk about putting an end to “too big to fail” banks. Hold the champagne. The Federal Reserve Board has just created the fifth-largest bank in the country, despite a flood of warnings from community advocates and smaller banks.

Skeptics in financial markets are entitled to their skepticism. Capital One has been rapidly assembling this new behemoth, acquiring local deposits and credit card operations in a series of mergers. Federal Reserve governors reviewed the complaints and rejected them. In banking regulation, the “new normal” so far looks a lot like the “old normal.”

Of course, it is impossible to say this marks an end to reform. But it’s a real downer for the reform advocates. They have pleaded for a different perspective from the Fed regulators-weighing the “public benefits” of bank consolidations against the “adverse effects,” as Dodd-Frank requires. But the Fed made this calculation on very narrow grounds.The governors concluded that one more very large bank will not by itself bring down the system. True enough. But each decision the Fed makes now on applying the new rules sets a precedent for its future decisions. How big is too big? The Capital One decision seems to say size is not an issue.

Hugh Espey: Bold Action Needed to Hold Big Banks Accountable

Fourteen months ago, Iowa Citizens for Community Improvement members and our allies from National People’s Action and the New Bottom Line campaign met with Iowa Attorney General Tom Miller in Des Moines to discuss the national foreclosure investigation that he was leading.

Miller vowed to pursue a fundamental transformation of the mortgage servicing industry. He spoke like a people’s champion, like someone who would “knock it out of the ballpark” and bring the banks to justice.

But after he announced the details of his settlement with the banks last week, we felt Miller had struck out. [..]

Bold action in the face of grave injustice is not counterproductive – it is required.

If Obama and Schneiderman take these “people first” actions to deliver justice for millions of homeowners and everyday people, then maybe we’ll have something to celebrate.

John Nichols: A Politics That Says: The People Shall Rule

After she organized Eugene McCarthy’s 1968 Democratic primary challenge to Lyndon Johnson, around the time she joined Gloria Steinem, Bella Abzug and Shirley Chisholm in forming the National Women’s Political Caucus, Midge Miller got herself elected to the Wisconsin Assembly. [..]

The point of progressive public service, argued Midge Miller, was not to be a cog in the machine run by corporate and political elites. It was to make the machine work for the people.

So when Midge Miller’s stepson, Wisconsin Senate minority leader Mark Miller, found himself leading a legislative caucus that was being asked to rubber-stamp Governor Scott Walker’s attacks on collective-bargaining rights, civil-service protections and local democracy, he thought of Midge. “She believed that it was the first responsibility of legislators to protect the rights of the people,” said Miller. “She would never have been a part of anything that rammed changes like these down the throats of the people.”

George Zornick: Obama’s Plan to Save the Military From Cuts-at the Expense of Domestic Programs

As budget wonks comb over President Obama’s outline for fiscal year 2013, a startling White House plan has become clear: the administration is seeking to undo some mandatory cuts to the Pentagon at the expense of critical domestic programs. It does so by basically undoing the defense sequester that kicked in as a result of the Congressional supercommittee on debt. This wasn’t a featured part of the White House budget rollout, and for good reason-it undercuts the administration’s carefully crafted message of benevolent government action and economic fairness.

The process for this shift is complicated, and has been flagged by the Center on Budget and Policy Priorities. Essentially, Obama wants to eliminate individual spending caps for both military and non-military spending, and institute one single discretionary spending cap instead. Here’s the basic rundown.

Ari Berman: Howard Dean Predicts Obama Re-Election, Democrats Retake House

No incumbent president since FDR has been re-elected with an unemployment rate above 8 percent. Despite that daunting precedent, an increasing number of political analysts and prominent Democratic Party figures are now bullish about President Obama’s re-election prospects. “Obama’s chances have definitely improved,” former Democratic Party chairman Howard Dean recently told me. “If Mitt Romney’s the Republican nominee, I would say it’s a one- or two-point win for Obama.”

Dean also likes his party’s chances at the Congressional level. “I’m predicting flat-out that if Obama wins, Democrats take back the House,” he says. Other analysts have recently raised that possibility, even though GOP domination of the redistricting process gives Republicans a major edge in 2012.

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Moochers Against Welfare

First, Atlas shrugged. Then he scratched his head in puzzlement.

Modern Republicans are very, very conservative; you might even (if you were Mitt Romney) say, severely conservative. Political scientists who use Congressional votes to measure such things find that the current G.O.P. majority is the most conservative since 1879, which is as far back as their estimates go.

And what these severe conservatives hate, above all, is reliance on government programs. Rick Santorum declares that President Obama is getting America hooked on “the narcotic of dependency.” Mr. Romney warns that government programs “foster passivity and sloth.” Representative Paul Ryan, the chairman of the House Budget Committee, requires that staffers read Ayn Rand’s “Atlas Shrugged,” in which heroic capitalists struggle against the “moochers” trying to steal their totally deserved wealth, a struggle the heroes win by withdrawing their productive effort and giving interminable speeches.

Timothy Egan: The Electoral Wasteland

In barely a century’s time, the population of the United States has more than tripled, to 313 million. We are a clattering, opinionated cluster of nearly all the world’s races and religions, and many of its languages, under one flag.

You would not know any of this looking at who is voting in one of the strangest presidential primary campaigns in history. There is no other way to put this without resorting to demographic bluntness: the small fraction of Americans who are trying to pick the Republican nominee are old, white, uniformly Christian and unrepresentative of the nation at large.

None of that is a surprise. But when you look at the numbers, it’s stunning how  little this Republican primary electorate resembles the rest of the United States.  They are much closer to the population of 1890 than of 2012.

Ben Adler: Rich Republicans Say Birth Control Is Cheap

At the Conservative Political Action Conference last week, Ann Coulter mocked the Obama administration for requiring health insurance to cover birth control by saying “birth control costs $20 a month; an abortion is $400 or $500 at the most, you don’t get insurance for that.” First of all, Coulter is wrong, or lying. Perhaps she’s never been without insurance herself and she doesn’t understand the difference between a co-payment and what something costs without birth control. Twenty dollars per month might be what one pays for the pill with insurance. Without it, you can pay over $100. This is, in other words, precisely what you have insurance for.

Lois Utley: Employees Need Birth Control Coverage Mandate

For the women employed by the former Hackley Hospital in Muskegon, Michigan, last week’s news couldn’t have been better. President Obama’s announcement that Catholic hospitals and educational institutions must provide contraceptive coverage to employees should mean those women will finally be getting back the insurance coverage for birth control they lost in 2007, when their hospital merged with a nearby Catholic hospital. That is, unless the Catholic Bishops and their allies in Congress succeed in unraveling the birth control coverage mandate for the hospital’s employees and millions of other American women.

Just as the Bishops had demanded, Obama announced that Catholic hospitals, colleges and social services agencies would not have to pay for contraceptive coverage for their employees. Instead, under what Obama characterized as an “accommodation,” the hospitals’ insurance companies would be required to offer the coverage at no extra charge to employees and their dependents. Insurers are expected to be willing to pay the birth control cost, since they save money by avoiding more costly pregnancy care.

Eugene Robinson: Pay Close Attention to China

China, for better or worse, is a serious country. The United States had better start acting like one.

I got a glimpse of the future Wednesday in the vast ballroom of a Washington hotel where hundreds of august dignitaries-and some journalists as well-gathered at a luncheon in honor of Vice President Xi Jinping, who is widely expected to become China’s top leader after a year-long transition.

Xi’s status is such that he was introduced by no less than Henry Kissinger, who spoke, not for the first time, of the Nixon-to-China breakthrough four decades ago. It is useful to remember that the country we now think of as a trillion-dollar creditor and the manufacturer of iPads was once a Maoist bastion, hermetically sealed against the capitalist influences of the Western world.

Richard Reeves: Comes the Revolution

LOS ANGELES-Andrew Breitbart, the publisher of Breitbart.com and a couple of other popular websites, set the tone for a program at the University of Southern California last Wednesday by calling George Stephanopoulus of ABC News a little rat with a runny nose.

He continued by equating mainstream newspapers and television news, National Public Radio, Hollywood and American universities with totalitarians around the world, citing Joseph Stalin, Hugo Chavez, Fidel Castro, cultural Marxism and storm troopers.

He was joined by Jon Fleischman, founder of FlashReport.org, a popular website out here that aggregates and reports on California politics, government and cultural life. He offered the opinion that “President Obama represents the abyss. He is taking us over the socialist cliff.”

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Mary Dudziak: This War Is Not Over Yet

THE defense secretary, Leon E. Panetta, recently announced that America hoped to end its combat mission in Afghanistan in 2013 as it did in Iraq last year.  Yet at Guantánamo Bay and elsewhere, the United States continues to hold enemy detainees “for the duration of hostilities.”  

Indeed, the “ending” of combat in Afghanistan and Iraq appears to have no consequences for the ending of detention. Because the end of a war is traditionally thought to be the moment when a president’s war powers begin to ebb, bringing combat to a close in Afghanistan and Iraq should lead to a reduction in executive power – including the legitimate basis for detaining the enemy.

But there is a disconnect today between the wars that are ending and the “war” that is used to justify ongoing detention of prisoners. Originally, the war in Afghanistan was part of the Bush administration’s “war on terror.”  This framing had rhetorical power, but it quickly drew criticism because a war on terror has no boundaries in space or time, and no prospect of ever ending.  

Gail Collins: Congress Has No Date for the Prom

I am shocked to report that Congress, the beating heart of American democracy, is unpopular.

Not unpopular like a shy kid in junior high. Unpopular like the Ebola virus, or zombies. Held in near-universal contempt, like TV shows about hoarders with dead cats in their kitchens. Or people who get students to call you up during dinner and ask you to give money to your old university.

The latest Gallup poll gave Congress a 10 percent approval rating. As Senator Michael Bennet of Colorado keeps pointing out, that’s lower than BP during the oil spill, Nixon during Watergate or banks during the banking crisis.

On the plus side, while 86 percent of respondents told Gallup that they disapproved of the job Congress was doing, only 4 percent said they had no opinion. That’s really a great sense of public awareness, given the fact that other surveys show less than half of all Americans know who their member of Congress is.

Amy Goodman: The Afghan War’s Nine Lives The Afghan War’s Nine Lives

Eight youths, tending their flock of sheep in the snowy fields of Afghanistan, were exterminated last week by a NATO airstrike. They were in the Najrab district of Kapisa province in eastern Afghanistan. Most were reportedly between the ages of 6 and 14. They had sought shelter near a large boulder, and had built a fire to stay warm. At first, NATO officials claimed they were armed men. The Afghan government condemned the bombing and released photos of some of the victims. By Wednesday, NATO offered, in a press release, “deep regret to the families and loved ones of several Afghan youths who died during an air engagement in Kapisa province Feb. 8.” Those eight killed were not that different in age from Lance Cpl. Osbrany Montes De Oca, 20, of North Arlington, N.J. He was killed two days later, Feb. 10, while on duty in Afghanistan’s Helmand province. These nine young, wasted lives will be the latest footnote in the longest war in United States history, a war that is being perpetuated, according to one brave, whistle-blowing U.S. Army officer, through a “pattern of overt and substantive deception” by “many of America’s most senior military leaders in Afghanistan.”

Those are the words written by Lt. Col. Danny Davis in his 84-page report, “Dereliction of Duty II: Senior Military Leaders’ Loss of Integrity Wounds Afghan War Effort.” A draft of that report, dated Jan. 27, 2012, was obtained by Rolling Stone magazine. It has not been approved by the U.S. Army Public Affairs office for release, even though Davis writes that its contents are not classified. He has submitted a classified version to members of Congress. Davis, a 17-year Army veteran with four combat tours behind him, spent a year in Afghanistan with the Army’s Rapid Equipping Force, traveling more than 9,000 miles to most operational sectors of the U.S. occupation and learning firsthand what the troops said they needed most.

Eugene Robinson: Drumming up a phony war on religion

At ease, Christian soldiers. There is no “war on religion,” no assault on the Catholic Church. A faith that has endured for thousands of years will survive even Nicki Minaj.

It never occurred to me to evaluate the Grammy Awards show on theological rectitude, but apparently we’re supposed to be outraged at the over-the-top “exorcism” Minaj performed Sunday night. The hip-hop diva, who writhed and cavorted amid a riot of religious iconography, is accused of anti-Catholic bigotry – and seen as an enemy combatant in an escalating “war on religion” being waged by “secular elites,” which seems to be used as a synonym for Democrats.

Seriously? Are we really going to pretend that Christianity is somehow under siege? That the Almighty would have been any more offended Sunday than he was, say, in 2006, when Madonna – who could sue Minaj for theft of intellectual property – performed a song during her touring act while being mock-crucified on a mirrored cross? While wearing a crown of thorns? Even at her show in Rome?

The “war on religion” alarmists are just like Minaj and Madonna in one key respect: Lacking a coherent point to make, they go for shock value.

Robert Sheer: Apple’s China Comes Home to Haunt Us

Four decades ago Richard Nixon, a once famously hawkish Republican president, cut a deal with the Communist overlords of China to reshape the world. The result was a transformation of the global economy in ways that we are only now, with the sharp critiques of Apple’s China operation, beginning to fully comprehend.

At the heart of the deal was a rejection of the basic moral claim of both egalitarian socialism and free market capitalism, the rival ideologies of the Cold War, to empower the individual as the center of decision-making. Instead, the fate of the citizen would come to be determined by an alliance between huge multinational corporations and government elites with scant reference to the needs of ordinary working folk.

Joe Conason: Will Catholic Bishops and the Religious Right Save Obama?

What is most striking about the showdown over contraceptive freedom is not the political victory that President Obama earned by standing up for women’s reproductive rights, although his Republican adversaries are certainly helping him to make the most of it. Those adversaries don’t seem to realize they have fallen into a trap, whether the White House set them up intentionally or not.

While the Catholic bishops and their allies on the religious right insist that this is an argument over the First Amendment, their true, longstanding purpose now stands revealed to the public. They would begin by imposing their dogma on every woman unlucky enough to work for an employer who shares it-an agenda that is deeply unpopular even among the Catholic faithful, let alone the rest of the American electorate. Then they would impose it on everyone, as the theorists of the religious right suggest every time they deny the separation of church and state.

New York Times Editorial: A Rare Deal

There’s nothing like a deadline – and the prospect of acute political embarrassment – to concentrate the mind. With Congress about to go on recess, and with Republicans fearing a voter backlash, negotiators on Wednesday were putting the finishing touches on a deal to extend the payroll tax cut and federal jobless benefits through 2012.

The agreement is imperfect but sound. It will help struggling Americans and the struggling economy. It is also a political win for Democrats and President Obama, who had made extending the payroll tax cut and the jobless benefits a centerpiece of his jobs agenda. We hope that it gives them the courage to stick to that agenda if they face another round of Republican obstructionism.

Greece: The Continued Slide Towards Default

It is almost inevitable that Greece will default but in the interim the Eurozone leaders are determined to force more austerity on the country in order to protect the hedge funds profits at the expense of the Greek people. Is America headed down this same road?

Freedom Rider: Greece: Your Money or Your Life

By Margaret Kimberly, editor and senior columnist at the Black Agenda Report

Greece is at the epicenter of an horrific assault on working people and on their democracy. As a result of corruption at the top of the Greek government and world wide finance capital, that nation is teetering on the brink of insolvency. The rescue cooked up by the same people who created the problem is in fact anything but.

The so-called bail out is a plan to destroy the last vestiges of the welfare state and the expectations of humanity that they can have any hope of being treated fairly in capitalist countries. The European Central Bank, the International Monetary Fund and the European Commission have descended like vultures, making it crystal clear where their interests lie. [..]

Beginning in 2008, Americans got a dose of some of the same medicine. We were told that our economy would implode if we didn’t give our money to bail out the very same banks which created the crisis. Four years and trillions of dollars later, we are still in a recession, unemployment remains high, ordinary people have lost their assets and our president and Congress bicker over how much they can cut government spending and ruin our lives even more.

The Greeks are ahead of the curve. At least they stood up and protested. Hopefully more people around the world will be like them instead of like passive Americans. Hopefully Americans will stop being passive before they end up like people in Greece.

The Greek Experiment

Michael Hudson: Greek crisis used to find out how far finance can drive down wages and privatize.”

Michael Hudson is a Wall Street Financial Analyst, Distinguished Research Professor of Economics at the University of Missouri, Kansas City and author of Super-Imperialism: The Economic Strategy of American Empire (1968 & 2003), Trade, Development and Foreign Debt (1992 & 2009) and of The Myth of Aid (1971).

Transcript:

PAUL JAY, SENIOR EDITOR, TRNN: Welcome to The Real News Network. I’m Paul Jay in Washington.

In Greece, the financial elites of Europe have gotten agreement from the Greek government to another round of what some people are calling savage austerity measures, for example, lowering the minimum wage by 22 percent, a new round of privatizations, and cuts to pensions and many other social programs. This is, I guess, an example of banks and a banking technocrat that now leads the Greek government directly intervening, calling government policy. So what does this tell us here in the U.S., Canada, and other countries that are watching this?

Now joining us to discuss all of this: Michael Hudson is a former Wall Street financial analyst, a distinguished research professor of economics at the University of Missouri-Kansas City, and he writes at Michael-Hudson.com. Thanks for joining us, Michael.

MICHAEL HUDSON, RESEARCH PROF., UMKC: Thank you very much.

JAY: So, Michael, what should we be learning from what’s going on in Greece?

HUDSON: Well, we should be learning what the European bankers are learning, and that is what is the result of a great experiment that’s going on. For the last five years in Latvia, they’ve-the neoliberals have lowered wages by about 30 percent. The basic premise of today’s model builders are: you don’t know how far you can lower wages and pensions until people begin to press back. Well, in Latvia they still haven’t begun to press back when they’ve lowered for 30 percent. Now they’re moving towards Greece on the way to Spain and Portugal and Italy, and they’re trying to figure out how much can we lower wages, how much can we drain an economy until there is pressure to come back.

And the right wing, who’ve essentially appointed, as you pointed out, a bank lobbyist, which is called a technocrat, in charge of Greece, is: let’s try the experiment to just see how much we can squeeze out-because they’ve realized that the left in Europe is completely fragmented. They don’t have a defense available, they don’t have a body of concepts available to say, wait a minute, this is crazy. When you’re lowering wages, you’re actually shrinking an economy. When you’re cutting the budget deficit, you’re reducing the amount of money that comes into the economy to promote demand. So in effect what Europe is doing is bleeding economies, very much like a medieval doctor would bleed blood on the ground, since this is going to make economies more productive.

Well, the only response that the Greek people have, not simply the left, but the right and the Greek people, is, look, if you think you’re going to increase the surplus, increase taxes by lowering our wages and cutting our pensions and cutting our health care, we’re going to do what the Egyptians are doing and what the Arab Spring is doing. We’re going to tear the economy apart, and there won’t be anything for you. And the PASOK, the socialist party that inaugurated this whole austerity program, now has an 8 percent approval rating in Greece. That’s even lower than Mr. Obama has for cutting wages here.

So what the Greeks are saying: look, when the premier said that they were going to have a referendum for whether we want to cut back the wages to pay the bankers, the first thing Angela Merkel said was, you can’t have a referendum. We’re going to suspend democracy, we’re going to impose a dictator on you, and we’re going to tell you what to do.

Well, under modern international law, if there’s no democratic commitment to pay, then the debt taken on is null and void. Well, the European common market, the European Union, has had its lawyers say, okay, we’re going to get the agreement of congress. Well, the Greek people can say, look, you can come down with bags of money and you can buy all the parliament members that you want to approve the deal, but as soon as there is an election, we’re going to throw them out, and they’re not acting on our behalf, and-.

JAY: Yeah, but it’s not clear by polling that the next election would actually elect a government that wouldn’t go along with this. Most of the parties that seem capable of winning elections in Greece have signed on to this deal. But can I go back to something earlier you said? Is not one of the big objectives here-’cause it’s hard to understand the logic of driving Greece into a decade of depression if you actually want any revenue that’s going to pay some of these debts back, which means, is not the real objective here not more about privatization, that if you can create so much chaos and dependency on the Greek government, on the European financial elites, they’re going to sell everything off? And apparently they’re talking now about selling airports and shipping-seaports, like, a whole ‘nother level of privatizations.

HUDSON: Not only that, but also the water systems, the sewer systems, real estate, the islands. You’re right. They think that if they can create a crisis, it becomes a grab bag area. And bankers and people who have a plan usually do much better in a crisis or a grab bag than people who don’t have a plan. So this indeed seems to be it. Finance today achieves what military invasion used to do in times past. So the new mode of warfare is financial, not military. It’s much cheaper and it’s much safer for the country doing the attack.

So you’re quite right: privatization is a big role. And that’s why yesterday the European Union said, wait a minute, we’re not even going to give you the money to pay us, namely, for us to pay our own banks that have bought your bonds, unless you spell out exactly what you’re going to privatize and commit to it now. And this is a sticking point. In the past, the Greeks have made promises, and thank heavens they haven’t privatized, because once they begin to sell things off, then there’s going to be a real squeeze and even more of an opposition. So you’re right. This is a property grab.

JAY: Yeah. We were joking off-camera. I was saying it’s amazing how the Europeans make Obama’s budget look good. And as critical as you and I and many people we’ve interviewed on The Real News have been critical of Obama, there actually does seem to be some kind of different approach between Wall Street (and, certainly, the sections of Wall Street that helped elect President Obama) and the Europeans. You can hear interviews with Wall Street representatives who actually say, no, you do have to have short-term stimulus before you have these kinds of austerity measures; you can’t force the world into a global depression. You hear that kind of language out of New York and out of President Obama, where the Europeans seem so committed to this severe austerity.

HUDSON: There are two reasons for that. Number one, from the very beginning, from the last century, America has already had in the private sector what was in the public domain in Europe. Europe had its power companies, electric and gas systems in the public domain. America privatized them, but as regulated public utilities. The public utilities were allowed-were regulated as to how much bond and equity they could get, what their rate of return would be. Europe has no body of law to regulate the prices or rent extraction the public utilities can charge, because they’d always had these in the public domain, just like Russia had no and the Soviet Union had no system like this. So the objective of privatizing in Europe, first of all, there’s much more property and public assets to grab in Europe than there were in the United States, and secondly, there is no regulatory body in Europe, because of the fact that in the past, power and sewer and water and public utilities were supplied either at cost or at subsidized rates to make the economy more competitive.

So the idea in Europe is not only that you cut wages by 30 percent, but you’re now going to raise the price of what you just mentioned, the access to water, sewers, transportation, everything else. You’re going to raise the price to put the real squeeze on wages. And the result in Greece will probably be the same as it was in Iceland, Latvia, and other countries. There’s going to be a large emigration of working-age labor. And the result will, of course, be to make the economy much less competitive.

And in this morning’s newspaper, when it turned out that Greece’s GDP fell at 7 percent annual rate, not the 5 percent expected, as usual the newspaper said, to everyone’s surprise, the situation is worse than projected. Well, of course it wasn’t really to our surprise, because we know that when you’re strangling an economy, of course it can’t cope very well. And they’re strangling the Greeks economy. And they’re using it, I think, as a laboratory experiment to say, what’s going to happen when we really just squeeze labor and squeeze labor? It’s like trying to feed a horse less and less and see whether it’s really going to be more efficient until it keels over dead.

JAY: And I guess it’s always-the way large-scale unemployment is always a good threat against the employed within a country, the more you can beat up Greece and Spain, Portugal, the more you can threaten the working class of France and Germany, where I guess the big targets eventually will be.

HUDSON: Well, if that happens, there’s going to be a renewed nationalism that’s going to cut the common market apart, and you’re going to have, all of a sudden, a realization that when Europe united, the whole idea of it’s united was so that it would never go to war again, military war. But now that it’s united under neoliberal bank rules, they think, wait a minute, we’re uniting and we are going to war. But it’s a class war. It’s an economic war. And this isn’t what we wanted. If the idea of uniting in Europe is for a class war under rules where we’re guaranteed to lose, then we’re saying no to Europe, just as the Icelanders have voted not to join Europe, just as other countries that had planned to join Europe, all the way to Turkey at the other end, are saying, wait a minute, if that’s the Europe that’s coming, an oligarchic Europe whose program is austerity and shrinkage, why on earth would we want to join?

JAY: Thanks for joining us, Michael.

HUDSON: Thank you very much.

JAY: And thank you for joining us on The Real News Network.

End

Greece is being forced out of eurozone, Venizelos claims

by Ian Traynor in Brussels and Larry Elliott of The Guardain UK

Greek finance minister says troika is shifting terms of €130bn bailout deal as part of move to force country out of eurozone

Greece rounded bitterly on its EU paymasters when the finance minister and socialist leader, Evangelos Venizelos, accused the eurozone of deliberately changing the terms of a proposed €130bn (£110bn) bailout because key players wanted to kick the country out of the single currency.

The charge that some eurozone countries were seeking to engineer a Greek sovereign default and exit from the euro deepened the rancour between debtor and creditors in the dangerous standoff.”There are many in the eurozone who don’t want us any more,” Venizelos declared at a meeting with President Karolos Papoulias. “We are constantly being given new terms and conditions.”

Papoulias went even further, denouncing Germany and Greece’s north European creditors after Wolfgang Schäuble, the German finance minister, said that Greece must not turn into a “bottomless pit” for eurozone bailout funds and that Europe was better prepared than when the crisis erupted two years ago to cope with a Greek sovereign default. [..]

Venizelos claimed the crucial debt swap with the banks – which technically requires three weeks to organise – will be announced on Monday provided the eurogroup signs off on the bailout.

The accord has to be in force well before 20 March when Greece is due to redeem €14.5bn of debt or face default.

Provoking A War With Iran

In January a young Iranian nuclear scientist was killed in a Tehran car bomb explosion, the fifth scientist to be killed since 2007. There were accusations by the Iranians that this was carried out by the Israelis with the blessings of the United States to stop Iran’s nuclear energy program. Of course there were the obligatory denials by the Israelis and the US through the State Department even though Israel had previously hinted about a covert campaign with Iran and told a parliamentary panel that 2012 would be a “critical year” for Iran in part because of “things that happen to it unnaturally”.

Robert Baer, the long-time senior CIA officer who spent 21 years working the Middle East, was on MSNBC’s ‘Hardball’ saying that he believes Israel is assassinating Iranian scientists in an attempt to provoke Iran to fight back and draw the US into a full-scale war. Baer has made this argument before considering Israel’s “track record of assassinations, from the Palestinian perpetrators of the Munich Olympic attack of 1972, to the killing of senior Hamas official Mahmoud al-Mabhouh in a Dubai hotel room in early 2010″:

“If you look at the choice of target it really could only be Israel,” says Robert Baer, a former CIA agent in the Middle East, currently working on a book on assassination called The Perfect Kill. “If it was an internal group, like the MeK (Mujahedin-e-Khalq) it would be security official or policeman who had been torturing their guys. If you look at the motivation, it must be Israel.”

However, Baer adds that it is quite likely that Israel is acting in tandem with an Iranian dissident organisation. “To do this in the middle of the day, with a limpet charge and then getaway, you need a lot of people on the ground,” he says. ” You need an extensive network of the kind only someone like MeK can provide.”

Glenn Greenwald at Salon has labeled this, not murder, but terrorism

   Part of the problem here is the pretense that Terrorism has some sort of fixed, definitive meaning. It does not. As Professor Remi Brulin has so exhaustively documented, the meaning of the term has constantly morphed depending upon the momentary interests of those nations (usually the U.S. and Israel) most aggressively wielding it. It’s a term of political propaganda, impoverished of any objective meaning, and thus susceptible to limitless manipulation. Even the formal definition incorporated into U.S. law is incredibly vague; one could debate forever without resolution whether targeted killings of scientists fall within its scope, and that’s by design. The less fixed the term is, the more flexibility there is in deciding what acts of violence are and are not included in its scope.

   But to really see what’s going on here, let’s look at how a very recent, very similar assassination plot was discussed. That occurred in October when the U.S. accused Iran’s Quds Forces of recruiting a failed used car salesman in Texas to hire Mexican drug cartels to assassinate the Saudi Ambassador at a restaurant in Washington, D.C. Let’s put to side the intrinsic ridiculousness of the accusation and assume it to be true […] when that plot to kill the Saudi Ambassador was “revealed,” virtually every last media outlet – and government official – branded it “Terrorism.” It was just reflexively described that way. And I never heard anyone – anywhere – object to the use of that term on the ground that targeted assassinations aren’t Terrorism, or on any other ground.

There is quite a bit of evidence to support this. The New York Times reported that there is more truth to the plot to draw Iran into a war than not:

   The campaign, which experts believe is being carried out mainly by Israel, apparently claimed its latest victim on Wednesday when a bomb killed a 32-year-old nuclear scientist in Tehran’s morning rush hour.

   The scientist, Mostafa Ahmadi Roshan, was a department supervisor at the Natanz uranium enrichment plant, a participant in what Western leaders believe is Iran’s halting but determined progress toward a nuclear weapon. He was at least the fifth scientist with nuclear connections to be killed since 2007; a sixth scientist, Fereydoon Abbasi, survived a 2010 attack and was put in charge of Iran’s Atomic Energy Organization […]

   “I often get asked when Israel might attack Iran,” Mr. (Patrick, director of the Iran Security Initiative at the Washington Institute for Near East Policy) Clawson said. “I say, ‘Two years ago.’ ”

   Mr. Clawson said the covert campaign was far preferable to overt airstrikes by Israel or the United States on suspected Iranian nuclear sites. “Sabotage and assassination is the way to go, if you can do it,” he said. “It doesn’t provoke a nationalist reaction in Iran, which could strengthen the regime. And it allows Iran to climb down if it decides the cost of pursuing a nuclear weapon is too high.”

Now flash forward to recent events with the attempt to kill Israeli embassy personnel in New Delhi and Tbilisi, Georgia. The Israelis were quick to accuse Iran without any evidence that there was any Iranian involvement and, of course the US media was quick to parrot the accusations as retaliation:

The rare coordinated attempts on the lives of Israeli diplomatic representatives came a month after the latest assassination of an Iranian nuclear scientist and were set against an escalating war of words between Israel and Iran over a possible Israeli strike on Iranian nuclear facilities. The attempted attacks also coincided with the fourth anniversary of the assassination of Imad Mughniyeh, a leader of Hezbollah, a militant Shiite Lebanese group backed by Iran.

India has stated that they have no evidence that Iran was involved but they have their own motivations, as does Russia, to protect Iran. Both India and Russia are ignoring the international sanctions to get Iran back to the table for discussion of their nuclear program. But. as Glenn Greenwald noted in his article about media the push to a war with Iran the media failed to mention

….the glaring irony that the mode of attack in India is virtually identical to the one used to kill numerous Iranian scientists (“a magnetic bomb was slapped onto {the} car by a passing motorcyclist”). One thing is crystal clear, as macgupta put it in the comment section: “In any case, no matter who the perpetrators are, these attacks are a sign that we are moving closer to a war with Iran.

The Guardian has analysis of why Iran seems an unlikely culprit for the attacks on Israeli diplomats:

Tehran has good relations with Thailand, India and Georgia. Why would it endanger that by planting bombs there?

Let’s assume that sections of the military and security apparatus in Iran are responsible for the string of bombings in Georgia, Thailand and India. What would be the motive? The argument that Iran is retaliating for the murder of five civilian nuclear scientists in Iran is not plausible. If Iran wanted to target Israeli interests, it has other means at its disposal. It is hard to imagine that the Iranian government would send Iranian operatives to friendly countries, completely equipped with Iranian money and passports – making the case against them as obvious as possible.

If the Iranian Revolutionary Guards are as professional, highly trained and politically savvy as we have been told repeatedly by Israeli politicians themselves, if they have successfully trained and equipped the cadres of Hezbollah and other movements with paramilitary wings in the region, then why would they launch such a clumsy and self-defeating operation?

And why India, Georgia and Thailand, three countries that Iran has had cordial relations with during a period when Iran is facing increasing sanctions spearheaded by the United States? A few days ago, India agreed a rupee-based oil and gas deal with Iran and resisted US pressures to join the western boycott of the Iranian energy sector. As a net importer of 12% of Iranian oil, India’s total trade with Iran amounted to $13.67bn in 2010-2011. What would be the motive for damaging relations with one of Iran’s major trading partners and regional heavyweights?

In December of 2010, Greenwald appeared on Morning Joe with Joe Scarborough to why Iran is not a threat to the US or Israel. His argument still holds true.

Is this another run up to another unnecessary war in the Middle East? If it looks like a duck …….

Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Wednesday is Ladies’ Day

Katrina vanden Heuvel: A Make-or-Break Moment for Democracy

President Obama’s decision to endorse super-PAC money as part of his re-election effort exposed the enduring divisions within the progressive community between pragmatism and idealism. Robert Reich, for example, put his disappointment bluntly: “Good ends don’t justify corrupt means.” Jonathan Chait disagreed, writing that “if you want to change the system, unilateral disarmament seems like a pretty bad way to go about it.”

The ambivalence is palpable-and understandable. I’ve felt it myself. On the one hand, we are seeing our worst fears realized. When the Supreme Court handed down its Citizens United decision, the concern was not just that one party would take advantage of it but that both parties would decide they had to adapt to it. The president has never held high moral ground on campaign finance (he withdrew from public financing in the 2008 campaign) but his willful, if reluctant, decision to submerge himself further in a system that actively stains our democracy is troubling.

Maria Tomchick: States Settle for…a Poke in the Eye

The $26 billion settlement that state authorities wrangled out of the nation’s five biggest banks amounts to peanuts compared to the damage that was done to homeowners across the country.

The five banks who’ve agreed to the settlement are Bank of America (who purchased the nation’s largest mortgage lender, Countrywide Financial), JP Morgan Chase (who bought Bear Stearns), Wells Fargo (who bought Wachovia), Citigroup (who was a major recipient of federal government bailout money), and Ally Financial (formerly GMAC and now majority owned by the US Treasury).

Are you seeing a pattern here? All of these banks have been the recipient of federal bailout funds and some, like Ally Financial, are still dependent on US taxpayers. Nevertheless, they’ve stockpiled enough cash that they could pay the $26 billion settlement today and not take a hit to their bottom lines. But that’s not what they’ll have to do. The settlement terms are much sweeter than that.

Miranda Spencer: Natural Gas and the News: Fracking Messages ‘Brought to You by Our Sponsors’

When it comes to natural gas extraction via “fracking,” TV journalism has some serious competition: energy industry commercials.

Like ads for political candidates that run concurrently with broadcast news coverage of the presidential race, ads promoting natural gas (and other fossil fuels) have long been running in concert with news segments about the topic, most recently touting the prospect of a “boom” made possible by the controversial extraction method known as hydraulic fracturing of the shale sprawling beneath more than 30 U.S. states.

During the past three years, Extra! found, there has been exponentially more propaganda for the wonders of natural gas on our screens each night than theoretically objective news segments about natural-gas extraction.

Marian Wright Edelman: Still Hungry in America

“There were some times where, you know, we wouldn’t have that much food, and I would tell my mom, ‘I’m not hungry, don’t worry about it,’ and I lost a lot of weight. I remember I used to be a size five, and I went from a size five to a size zero,” a New York high school senior said in December.

In 1967, as a young civil rights lawyer in Mississippi, I was asked to testify before the Senate Subcommittee on Employment, Manpower, and Poverty in Washington about how the anti-poverty program in Mississippi was working. The Head Start program was under attack by the powerful Mississippi segregationist delegation because it was operated by church, civil rights, and Black community groups after the state turned it down. After defending the Head Start program, I told the committee I had become increasingly concerned about the growing hunger in the Mississippi Delta. The convergence of efforts to register Black citizens to vote, Black parents’ challenges to segregated schools, the development of chemical weed killers and farm mechanization, and recent passage of a minimum wage law covering agriculture workers on large farms had resulted in many Black sharecroppers being pushed off their near feudal plantations which no longer needed their cheap labor. Many displaced sharecroppers were illiterate and had no skills. Free federal food commodities like cheese, powdered milk, flour, and peanut butter were all that stood between them and starvation. I invited the Senators to come to Mississippi and hear directly from local people about the positive impact the anti-poverty program was making. They did.

Kathy Kelly: Cold, Cold Heart

It’s Valentine’s Day, and opening the little cartoon on the Google page brings up a sentimental animation with Tony Bennett singing “why can’t I free your doubtful mind and melt your cold, cold heart.”

Here in Dubai, where I’m awaiting a visa to visit Afghanistan, the weather is already warm and humid. But my bags are packed with sweaters because Kabul is still reeling from the coldest winter on record. Two weeks ago, eight children under age five froze to death there in one of the sprawling refugee camps inhabited by so many who have fled from the battles in other provinces. Since January 15, at least 23 children under 5 have frozen to death in the camps.And just over a week ago, eight young shepherds, all but one under 14 years of age, lit a fire for warmth on the snowy Afghan mountainside in Kapisa Province where they were helping support their families by grazing sheep. French troops saw the fire, and acted on faulty information, and the boys were all killed in two successive NATO airstrikes. The usual denunciations from local authorities, and Western apologies, followed. (Trend News, February 10, 2012).

So I’m thinking about warmth, and who we share it with and who we don’t.

Jennifer Browdy de Hernandez: An Unlikely Environmental Evangelist

I was not raised in any religion, nor do I follow any religious practices now.  I don’t believe in God as a benevolent white man in the sky, nor do I believe that one needs to sit in a particular building, listening to a particular preacher, to reach out to the divine.

But I have always felt a deep spiritual connection to the natural world.  When I was 8 or 9, I used to go out into the woods and sit alone in my “spot,” which was a circle of mossy stones at the top of a big stone ridge, ringed by maples and centered around a grassy glade.  It was a small circle, no bigger than 10 feet in diameter.  I would just sit there and look and listen to the birds in the trees above me, the small insects on patrol in the grass, feeling the wind ruffling against my face and a kind of inner exultation and delight that I can only describe as religious ecstasy.

No one taught me to do this, and it wasn’t until much later, reading personal narratives by indigenous elders, that I was able to put this early spiritual connection with nature into a broader polytheistic cultural framework.

I believe that everything in our world is tinged with spiritual significance.  And I believe that human beings, because we are unique among animals in being able to see the effects of our actions on the larger landscape of the planet, and to both predict and alter the future, have a special moral imperative to do what we can to be the responsible stewards of the natural world of which we are a part.

The Mortgage Settlement: More Jokes

The Big Five Banks received another love tap from the Federal Reserve just a few day after the 49 state mortgage settlement was announced. They were fined a mere $766.5 million on February 9, 2012.  The release of documents also revealed this:

NOW, THEREFORE, before the filing of any notices, or taking of any testimony or adjudication of or finding on any issues of fact or law herein, and without this Consent Assessment Order constituting an admission by (bank) of any allegation made or implied by the Board of Governors in connection with this matter, and solely for the purpose of settling this matter without a formal proceeding being filed and without the necessity for protracted or extended hearings or testimony, it is hereby ORDERED by the Board of Governors…”

In other words not only was the fine piteously low considering the amount of equity that was lost by the victims through fraud, the banks don’t have to even admit that they committed a crime.

The other joke is the National Mortgage Settlement website. Remember David Dayen at FDL questioned why the site was a .com and not a .gov well the Department of Justice slapped a disclaimer on the site.

Photobucket Pictures, Images and Photos

Click on image to enlarge

And Richard (RJ) Eskow takes to task Edward J. DeMarco. He is the Bush holder-over head of the Federal Housing Finance Agency (FHFA) which overseas Freddie Mac and Fannie Mae. DeMarco is refusing to issue principal reductions, negotiate lower interest rates, push refinancing deals through the system that would dramatically reduce foreclosures. It would do far more than last week’s settlement deal can ever hope to accomplish and without Congressional approval. It only requires the stroke of its DeMarco’s pen. Fannie and Freddie, which taxpayers repurchased and bailed out after they were destroyed by ‘privatized’ mismanagement and Wall Street greed, hold more than half the mortgages in the country.

De Marco refuses to carry out his agency’s assignment for ideological reasons. The Defense Department’s mission is to protect the American people from attack, and the FHFA’s mission is to protect American homeowners – and in so doing, help the economy as well.

But instead of making it easier for homeowners to get relief, De Marco and his lieutenants are making it harder. Outrageously, they’re even paying a financial manipulator millions in taxpayer money to bet billions against the same homeowners.They’re betting that these homeowners can’t refinance, while at the same time making it harder for the to do it..[..]

As a letter from Reps. Elijah Cummings and John Tierney reveals, a former FHFA employee testified that there was a pilot program in principal reduction but “was terminated by senior officials at Fannie Mae who were ‘philosophically opposed’ to the concept of reducing principal.”

The more these homeowners lose out, the more money the financial guy makes. [..]

DeMarco didn’t reveal the existence of this program or its termination in his Congressional testimony. He also misled Congress and the public when he said that principal forgiveness for all (underwater) mortgages would cost “almost $100 billion,” since $100 billion is the estimated total of all underwater principal, not just the amount that would be reduced for distressed homeowners.

Another FHFA study showed that not reducing principal on these mortgages would cost more than $100 billion, as Cummings and Tierney noted, while yet another showed that a well-designed principal reduction program would actually save taxpayers $28 billion.

DeMarco didn’t mention those studies, either. [..]

DeMarco defends his unwillingness to carry out his duties by claiming that principal reductions for underwater homeowners – some of whom are still paying seven percent interest or more for nonexistent home value, when the prevailing rate is as much as three points lower – “would not meet (the FHFA’s) responsibilities as conservator of Fannie and Freddie.” He told Congress that “FHFA has a statutory responsibility to preserve and conserve the enterprises’ assets.”

What agency on Earth has a greater responsibility to not spend money serving its purpose than it does to do its job? It seems absurd, doesn’t it? DeMarco’s suggesting that not doing anything is a greater obligation for his agency than carrying out the function for which it was created.

And President Obama is stuck with this right wing banker crony because Congress won’t confirm Obama’s nominee and he can’t be fired because the FHFA is an independent agency. At least that’s the claim by the White House and DeMarco.

Read the rest Eskow’s article, it will leave you head shaking.

Load more