Friday, February 06, 2009

Team of Zombies, Part II: The "Outside" Economic Advisory Board from Open Left

from http://www.openleft.com/showDiary.do?diaryId=11417

Just to reiterate, President Obama today announced his "outside" economic advisory board, which is supposed to give him alternative economic viewpoints from the team of zombies he has working directly in the White House. Sadly, this "outside" board is made up mostly of Establishment and corporate insiders. Here's the list:

- William H. Donaldson, George W. Bush's S.E.C Chairman

- Roger W. Ferguson, Jr., President & CEO, TIAA-CREF

- Robert Wolf, Chairman & CEO, UBS Group Americas

- David F. Swensen, CIO, Yale University

- Mark T. Gallogly, Founder & Managing Partner, Centerbridge Partners L.P.

- Penny Pritzker, Chairman & Founder, Pritzker Realty Group

- Jeffrey R. Immelt, CEO, GE

- John Doerr, Partner, Kleiner, Perkins, Caufield & Byers

- Jim Owens, Chairman and CEO, Caterpillar Inc.

- Monica C. Lozano, Publisher & Chief Executive Officer, La Opinion

- Charles E. Phillips, Jr., President, Oracle Corporation

- Anna Burger, Chair, Change to Win

- Richard L. Trumka, Secretary-Treasurer, AFL-CIO

- Professor Laura D'Andrea Tyson, board member of Morgan Stanley

- Martin Feldstein, former top economist in the Reagan administration

This is about as bad as it gets - labor outnumbered 2 to 13; Wall Street insiders like Tyson, Gallogly and Wolf (the latter who is the boss of Phil Gramm and whose bank was a central part of the meltdown); Reagan and Bush officials...it's just more proof that D.C.'s zombie culture is alive and well.

rest http://www.openleft.com/showDiary.do?diaryId=11417

Only 1% Of NFLers Donated To Troubled Alumni from SPORTSbyBROOKS


It seems like hardly a week goes by without hearing another sad story about a former NFL player from the 1970s and earlier. Some have debilitating health problems, and others can barely put enough money together to scrape by. We live in a time in which our athletes are overvalued, but the abuse that old players took for very little pay is troubling (there are enough ex-linemen dropping dead at the age of 50 to see that).

NFL Players Won't Donate To Charity

So, it shouldn't be too much to ask for the millionaires playing in today's NFL to chip in a small percentage of their salary to help the guys who paved the way for them. In fact, Vikings center Matt Birk sent a letter to all 1,700 players in the league asking them to donate a portion of their check for one game in December to the Gridiron Greats Asssistance Fund, which provides help to ex-players with health and/or financial issues.

So how many decided that it was a worthy cause? About 20.

rest http://www.sportsbybrooks.com/nfl-players-arent-really-all-that-charitable-22167

scam: Cash4gold: 10 Confessions Of A Cash4Gold Employee



From the acid-cloud haze of the Cash4Gold processing center steps forth a shadowy figure, fingers stained with orange testing fluid. It's an ex-Cash4Gold employee and in-between tuberculosic wheezes he manages to pass you a yellow legal paid with 10 confessions about how his former employer taught him to rip people off. Then he evaporates leaving behind a pile of gold dust. You dip your finger in it and touch it to your tongue. Just as you thought: fool's gold.

Spotted on ComplaintsBoard: "I would like an article to be posted pertaining to the refinery Cash 4 Gold, located in Pompano Beach, Fl. I am a former employee, who would like to alert/warn the public on the scamming process involved with this company. There are many of us who would like to vouch on behalf of this fast growing scam. We would like to get the word out to everyone on this step by step scam which involves so many people in this country and their valuables.

Below I have attached the full details on the scam involving this company. We know this first hand, because this is how we were trained. Please take note of this information and do what you can to get the word out there, especially in a time when the economy has truly affected everyone for the worst. Thank you!

I am a former employee of Cash 4 Gold. I did not know much about the company before being hired. On my first day of being hired, I was taught the "Cash 4 Gold Scam" from beginning to end.

1. The "refiner's pack" that is used for you to put your jewelry is "insured for UP TO 100 dollars, " according to how much they determine from a description from you, the worth of your items to be, NOT an actual fully researched appraisal.

2. We receive your "Refiner's Pack" within 3-4 days, BUT we are instructed to tell you that it takes "7-10 business days, for us to receive your pack, ALTHOUGH many times, your package has already arrived.
(All cash4gold customers who have called customer service to track a package can vouch for this)


rest http://consumerist.com/5144296/10-confessions-of-a-cash4gold-employee

WALL STREET CEOS, BANKERS 'CHARGED PROSTITUTES TO CORPORATE CARDS' from Raw Story Breaking News

WALL STREET CEOS, BANKERS 'CHARGED PROSTITUTES TO CORPORATE CARDS'

Investment bankers racked up $100,000s in prostitution charges

Visa, Mastercard or American Express? Or maybe a credit card from JP Morgan Chase?

Wall Street CEOs, lawyers, bankers and media executives chalked up thousands of dollars in prostitution charges on their corporate credit cards -- swiping their cards for $2,000 an hour prostitutes, according to a New York madam who pleaded guilty last year.

Kristin Davis, the madam in question, went public to ABC News this week; ABC will be broadcasting her interview Friday at 10 pm. Davis says she has a list of 9,800 clients, many of whom she says New York prosecutors deliberately avoided when taking her case, even though she offered them her annotated client list.

In what's sure to create a media firestorm parallel to that of when a Washington, DC madam announced that she was publishing her client list (which included at least one senator), Davis' comments come at a time where incredible ire is already focused on Wall Street and banking executives. The pressure for her to release the list will certainly be immense.

But the pressure from New York's finest prosecuting team was nearly zero, Davis said.

"They showed no interest," Davis quipped, alleging that they ignored that numerous corporate titans had used her services.

"Some of these guys, I was invoicing on corporate credit cards," she said. "I was writing up monthly bills for computer consulting, construction expenses, all of these things, I was invoicing them monthly so they could get it by their accountants."

District attorney Robert Morgenthau's spokesman was said to have "no comment" on the handling of Davis' case or her allegations.

Davis provided the network with a print-out of her computerized client list, the same one she says that she offered the district attorney.

Among the names the network says it confirmed

* a vice president of NBC Universal (owned by General Electric)
* the part owner of a Major League Baseball team who "loves Kelsey"
* the CEO of one of the country's largest private equity firms who met "Cameron" at the Peninsula Hotel
* a major New York real estate developer who, according to the list, "will come to the door wearing women's panties"
* a partner at the Wall Street law firm Cravath Swaine Moore "looking for a party girl to come fully equipped" and spent a total of $20,000
* an investment banker from Lehman Brothers who saw "Kelsey and Keely together" and later saw "Aria and Skyler at the same time"
* an investment banker at JP Morgan Securities who "loves Brooke" and spent $41,600
* an investment banker at Goldman Sachs who "only wanted all-American girls" and spent $27,000
* a managing director from Merrill Lynch who saw "Lana" using the name "Nataly"
* a managing director from Deutsche Bank "who called about seeing Nataly again"

ABC said in their broadcast that for the individuals mentioned above, they could not confirm that the payments were made on corporate cards.

rest http://rawstory.com/news/2008/Wall_Street_CEOs_investment_bankers_charged_0206.html

"More to Promote Outsourcing Than Nearly Anyone Else In America" from Open Left - Front Page


Remember back in in 2004 when the Bush administration issued a report trumpeting the benefits of job outsourcing? And remember how Democrats correctly went apeshit? Well, let me pose a question: What's worse - issuing a report applauding job losses, or putting one of the biggest outsourcing advocates in America in a top government job?

Unfortunately, this isn't a hypothetical - it's very real. Check out this op-ed in the engineering trade journal EE Times. It's by Rochester Institute of Technology professor Ron Hira, one of the nation's leading progressive voices on the issue of jobs and trade:

On the very same day he was meeting with "CEOs [who] outsource American jobs"--a phrase he repeatedly and derisively used during his campaign, [Obama] named McKinsey's & Co.'s Diana Farrell to his National Economic Council, the inner circle of economic advisors in the White House. Farrell has done more to promote outsourcing than nearly anyone else in America.

Farrell was the lead author of the infamous "Offshoring: Is it a Win-Win Game?" Now she'll be operating at the highest levels of the Obama administration. Her phony "study" did more damage than any other in the debate over offshoring. And her propaganda was used to mislead the American public about the true impact of offshoring.

Moreover, Farrell's firm made millions of dollars consulting with companies, advising them to accelerate their offshoring. And she publicly made the rounds to convince policymakers and the public that offshoring was good for them and the country. It's also no coincidence that the IBM and Nasscom, the Indian IT outsourcing industry association, were major McKinsey clients. They benefited from McKinsey's lobbying as well as its consulting services.

As I said, Hira's a progressive, and one of the nation's most respected (and quoted) experts on the issue of job outsourcing. He's published terrific pieces on the issue in journals like the American Prospect that I highly recommend.

So considering the source - and the ample evidence he cites - I'd say this is a very problematic appointment, especially considering Farrell will be serving on a council headed by Larry Summers - not exactly a guy who has given a shit about reforming our trade/globalization laws.

BUSH 'OVERPAID' FOR BAILOUT BANKS BY $78 BILLION from Raw Story

BUSH 'OVERPAID' FOR BAILOUT BANKS BY $78 BILLION

Bush Treasury Sec. 'subsidized' his ex-firm with $2.5 billion

President George W. Bush overpaid $78 billion for investments in the nation's largest banks and brokerages, according to a Congressional report released late Thursday.

The findings showed that government investment in the banks amounted to a nearly $80 billion subsidy of an industry that seems to have recently excelled at flushing money down the drain.

Ironically, the "subsidy" itself was doled out by Bush Treasury Secretary Henry Paulson, the former chief executive of investment bank Goldman Sachs. According to the report, Goldman got an effective $2.5 billion subsidy from the Treasury Department.

While at Goldman, Paulson earned upwards of $10 million a year and was the richest member of the Bush Administration at the cabinet level or above.

The largest other purported subsidies were paid to: Citigroup ($9.5 billion), JP Morgan Chase ($4.4 billion) and Morgan Stanley ($4.2 billion).

The second round of bailout financing also added another $10 billion to Citigroup's alleged subsidy, and the second AIG bailout, $25 billion.

By contrast -- the entire amount the US government spend on higher education in 2006 was just over $50 billion -- less than the "subsidies" issued to the banks in the first round.

Click here to see a chart detailing which companies got what -- and at what cost to the US taxpayer (via Pro Publica).

rest http://rawstory.com/news/2008/Bush_overpaid_78_billion_for_bank_0206.html
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January job loss worst in 34 years

January job loss worst in 34 years

NEW YORK (CNNMoney.com) -- Employers slashed another 598,000 jobs off of U.S. payrolls in January, taking the unemployment rate up to 7.6%, according to the latest government reading on the nation's battered labor market.

The latest job loss is the worst since December 1974, and brings job losses to 1.8 million in just the last three months, or half of the 3.6 million jobs that have been lost since the beginning of 2008.

The loss since November is the biggest 3-month drop since immediately after the end of World War II, when the defense industry was shutting down for conversion to civilian production.

January's job loss was also worse than the forecast of a loss of 540,000 jobs from economists surveyed by Briefing.com

rest http://money.cnn.com/2009/02/06/news/economy/jobs_january/index.htm

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Drugs, weapons seized at home owned by high-ranking police official

 _drugs640.jpg

Apartment complex at 4553 W.56th St. in Chicago where a search warrant was executed at the home of a high-ranking Chicago Police official. (Antonio Perez/Chicago Tribune)

Drugs and weapons were seized last night at a condominium owned by a high-ranking Chicago police official, authorities said. A 28-year-old man, the boyfriend of the daughter of the police official, was taken into custody.

The condominium is owned by Assistant Supt. Beatrice Cuello (lower left), said police spokeswoman Monique Bond. Cuello's daughter lives in the condo with the suspect.

_cuello100x100.jpg

Officers recovered 175 grams of cocaine and four guns in the home, and the arrested man allegedly admitted "criminal involvement," Bond said.

He was charged with possession of a controlled substance and possession of ammunition and firearms. He was not identified.

"At this time the investigation has revealed the relative had no involvement with the offender's criminal activity," Bond said. No other arrests were made.

The condominium is in the 4500 block of West 56th Street.

rest http://www.chicagobreakingnews.com/2009/02/weapons-drugs-seized-at-police-officials-home.html

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As Economy Sheds 600,000 Jobs In One Month, Senate Conservatives Ask: What's The Rush?

Today, the Labor Department reported that the economy lost 598,000 jobs in January, the worst monthly jobs loss since 1974. 1.8 million jobs have been lost in the last three months alone, and U.S. unemployment now stands at 7.6 percent, the highest in nearly two decades.

While President Obama and congressional Democrats are pushing for a recovery and reinvestment plan that the non-partisan Congressional Budget Office predicts would create up to 3.6 million jobs by next year, Republicans are stonewalling action to help the economy recover. Even as millions of Americans are losing their jobs, conservative Senators insist that there's no rush to help them:

LINDSEY GRAHAM (R-SC): We do not need any more news conferences. What we need is getting more than 16 people in a room. We need to slow down, take a timeout, and get it right.

ROGER WICKER (R-MS): As Thomas Jefferson reminded Americans in his day — and I quote — "Delay is preferable to error." Let's not rush into doing this the wrong way.

JOHN ENSIGN (R-NV): So we need to act much more responsibly than this bill acts. It's still time. There is no hurry.

TOM COBURN (R-OK): There's no reason for us to hurry up, number one. There's no reason for us not to look at every area of this bill and make sure the american people know about it.

rest http://thinkprogress.org/2009/02/06/gop-senators-no-recovery-rush/


Why Republicans Object to Solis from Daily Kos


Republicans continue to hold up the nomination of Hilda Solis for Labor Secretary, today allegedly over her husband's tax liens.

Now, before we think about those tax liens, let's be clear: The delay in confirming Solis is not about taxes. It is about her support for working people. Specifically, as Trapper John wrote yesterday,

So in a nutshell, Solis's opponents are arguing that the US Secretary of Labor should recuse herself from advocating for passage of the most important labor law reform measure facing the United States. Needless to say this is completely insane -- it's akin to saying that the HHS Secretary shouldn't be involved in the health care debate, or that the Defense Secretary shouldn't talk about Iraq. But it's indicative of just how completely scared the Republican Party and its corporate masters are about the workplace democracy promised by the Employee Free Choice Act. No cabinet appointee other than Solis has been subject to such an assault, and it's because Solis is guilty of the GOP's unforgivable sin -- supporting the right of working people to join together and fight for their share of this country's wealth.  And if that kind of opposition from the lackeys of the multinationals isn't a sign to you of how good the Employee Free Choice Act would be for working Americans, I don't know what is.

It's important to remember also that the Republicans so opposed to a Secretary of Labor who has opinions on labor issues were happy enough to confirm Elaine Chao for George W. Bush. In that Labor Department, it was just hunky-dory to have an assistant secretary who

was a partner at Jackson Lewis, a well-known unionbusting law firm that trains companies on "How to Stay Union Free" and issues publications highlighting their corporate clients' success at preventing organizing in the workplace.

But having a Secretary of Labor who had an uncompensated position on the board of an organization in favor of unions and workers' rights? That would be beyond the pale to Senate Republicans.

rest http://www.dailykos.com/storyonly/2009/2/6/94920/09365/661/693952

Moon, Here I Come!: Scientists Succeed In Teleporting Matter A Whole Three Feet from Geekologie

teleporting.jpg That's right folks, I estimate in a few short months we'll all be able to teleport ourselves to our favorite vacation spots. Or inside a bank vault -- or the women's locker room! The possibilities I'm imagining are staggering, and, for the most part, illegal. Awh yeah -- breaking the law with science!

No one is galaxy-hopping, or even beaming people around, but for the first time, information has been teleported between two separate atoms across a distance of a meter -- about a yard. In the Jan. 23 issue of the journal Science, the scientists report that, by using their protocol, atom-to-atom teleported information can be recovered with perfect accuracy about 90 percent of the time -- and that figure can be improved.

rest http://www.geekologie.com/2009/02/moon_here_i_come_scientists_su.php

Why bother promoting breast cancer detection for poor women only to deny them treatment? from Scholars and Rogues


In an article titled Two-Thirds of Hispanic Women Discover Breast Cancer Themselves at U.S. News & World Report on Thursday, Feb. 5, Amanda Gardner writes:

Two-thirds of breast cancers in Hispanic women are detected by a self-exam, while only 23 percent come to light through a mammography and another 6 percent through a clinical exam. Yet screening mammography rates were 83 percent among U.S.-born Hispanic women and 62 percent among non-U.S.-born Hispanic women.

That Hispanic women are both receiving mammograms and beating mammography to the punch with self-exams is encouraging, especially considering the often poor education of the non-U.S.-born subgroup. However, there's more to the story. . .

What's troubling, however, is that about half of all women who noticed an abnormality during a self-exam waited at least a month before seeking medical help. . . [Emphasis added.]

Why did women wait so long before seeking help?

At this stage of the game, do we really need to ask?

Largely because of lack of health insurance or other ways to afford medical care. . .

Another article at U.S. News & World Report the same day, Cancer Patients Often Stranded in Health Insurance Nightmares, fleshes out the story:

rest http://www.scholarsandrogues.com/2009/02/06/why-bother-promoting-breast-cancer-detection-for-poor-women-only-to-deny-them-treatment/

8 Banks Took $153.4 Billion In Tax Payer Money, Spent $845 Million On Naming Rights from Consumerist

from http://consumerist.com/5148039/8-banks-took-1534-billion-in-tax-payer-money-spent-845-million-on-naming-rights

Should bailout out banks be buying naming rights? Dennis Kucinich doesn't think so, and last week he urged the Treasury department to cancel one such deal between Citibank and the New York Mets. Now Bloomberg says that seven more bailed out banks are spending money on stadium rights.

In 2006 when Citigroup signed the 20-year agreement with the Mets, the costliest in U.S. sports, the lender said the partnership would raise its profile among customers. Now the company may lose potential clients because of a backlash against the deal, said David Carter, executive director of the Sports Business Institute at the University of Southern California in Los Angeles.

"It's quickly becoming the sports-marketing poster child for the entire financial meltdown," Carter said of Citigroup in an interview. "You may be harming the relationships you are trying to build."

The eight banks received a total of $153.4 billion from the $700 billion U.S. bailout and are spending a combined $845 million for naming rights. U.S. banks have had $745 billion in losses and writedowns since the subprime mortgage crisis began in 2007.

The bailed out banks who are paying to name stadiums are:

Wachovia/Wells Fargo, $40 million, Philadelphia 76ers and Flyers

PNC, $40 million, Pittsburgh Pirates

Bank of New York Mellon Corp., $18 million, Pittsburgh Penguins, not renewed

Comerica, $66 million, Detroit Tigers

M&T Bank, $75 million, Baltimore Ravens

Citibank, $400 million, New York Mets

Bank of America Corp., $140 million, Carolina Panthers

JPMorgan Chase & Co, $66 million, Arizona Diamondbacks

The following companies have applied for bailout money but not yet received it:

BankAtlantic Bancorp. Inc., $27 million, Florida Panthers

Raymond James Financial Inc., $45 million, Tampa Bay Buccaneers

Citigroup, Seven U.S. Banks Spend on Stadium Deals (Update2) [Bloomberg]

Renovated "It's A Small World" Disneyland Ride Annoys Purists from Consumerist


Disneyland has updated that most deeply annoying of vacation experiences, the "It's a Small World!" ride. The new version includes lots of Disney characters in addition to the usual creepy chanting dolls that you know would come alive and kill you if you were stupid enough to sneak in there at night.

MSNBC says:

While a Disney press release says, "We know that many people have been eagerly awaiting the opportunity to relive their 'It's a small world' memories and create new ones with children, grandchildren and friends," some purists have questioned whether adding characters from animated movies sullies the intended experience.

A writer on the Web site Boing Boing calls it "one of the most egregious and downright disgusting decisions" ever made by Disney.

The press release says that the characters are done in the style of the original dolls and that guests are supposed to search for them. (Awww, look at Alice!) The article also attempts to dispel the rumor that the ride had to be closed down and renovated because we're too fat and were sinking the boats.

Thursday, February 05, 2009

U.S. passport information a piece of cake to steal from Caveat Emptor

A hacker with $250 of easy-to-obtain equipment drove around San Francisco grabbing users' personal information from passports and drivers' licenses equipped with soon-to-be-mandatory radio-frequency identification (RFID) cihps.

rest http://caveatemptorblog.com/2009/02/04/us-passport-information-a-piece-of-cake-to-steal/

New RNC Chair Brings Fundraising Prowess to Post from Capital Eye

When former Maryland Lt. Gov. Michael Steele lost his bid for Senate in 2006, it wasn't because his Democratic opponent, Congressman Ben Cardin, had raised more money. Steele collected $8.4 million, just shy of Cardin's $8.7 million. His fundraising success is likely a big part of the reason the GOP picked Steele to chair the Republican National Committee (RNC) last week, charging him with the task of bringing in cash to help the party maintain--and win back--seats in 2010.

The donors that Steele appealed to the most during his Senate race are those that would seemingly give to the party regardless of the person at the helm of the RNC. In the 2006 election cycle, Republican and conservative groups gave Steele his largest chunk of cash at $566,900, followed by the leadership PACs of other lawmakers ($495,300). But he also attracted money from retirees ($447,800) and lawyers and law firms ($331,450), which usually favor Democrats. His most generous sector was composed of ideological groups, which gave him a total of $1.2 million, with finance, insurance real estate companies next, giving $885,700. The fiscally conservative Club for Growth sent $242,800 Steele's way, while employees of the State of Maryland gave him $39,625. Other donors included defense company Lockheed Martin ($13,850) and law/lobbying firm Blank Rome ($13,300).

rest http://www.opensecrets.org/news/2009/02/new-rnc-chair-brings-fundraisi.html

Hot Dog icon Best’s Kosher Sausage is closing from Best of the Best Dining In Chicago


bestskosherhotdogs

The Chicago Ttribune published a personal article a few weeks ago by Susan Berger.  The company owned by her family is closing. The Best's Kosher Sausage Company, started by her great grandfather Isaac Oscherwitz in 1886, was sold by Susan's family in 1993 to Sara Lee Corp,   According to the article, a spokesperson for Sara Lee said: "It was not because it's not profitable – it's just not where it needs to be."
Best Kosher was the hot dog of choice at Wrigley Field, Comiskey Park, the United Center and Soldier Field. Best Kosher also sold corned beef, tongue, pastrami, bologna and other luncheon meats.

rest http://www.bestofthebestdiningchicago.com/?p=1089

ABC: Obama Is Hypocritical For Limiting Wall Street Pay While Having A ‘Lavish Lifestyle’ from Think Progress

from http://thinkprogress.org/2009/02/05/abc-obama-salary/

airforceone25.jpgYesterday, President Obama instituted a pay cap on bailed out businesses after it was revealed that Wall Street doled out an estimated $18.4 billion in bonuses last year. "If the taxpayers are helping you, then you've got certain responsibilities to not be living high on the hog," he explained.

In what appears to be an attempt to call Obama a hypocrite, ABC's Scott Mayerowitz "reports" today that the President also has a "lavish lifestyle." Under the title: "Obama's Perks: Private Jet, Chef Tax-Free," ABC notes that Obama earns $400,000 dollars a year and even has a private jet:

The president makes $400,000 a year, but hasn't received a raise from Congress since 2001. He also gets a $50,000 annual entertainment expense account (any unused money at the end of the year must go back to the Treasury.)

Then there is the use of two private jets, Boeing 747s better known as Air Force One. And of course the constant security details, drivers, a private chef, a country vacation estate and the rent-free use of a well-known, 132-room mansion called the White House. The president also used to have a yacht, until Jimmy Carter sold it.

As its evidence that "corporate America" is upset, ABC said that "some Wall Street bloggers" are angry with the compensation cap. But the article cited only one blogger, Dealbreaker.com, who — apparently poking fun at Sen. Claire McCaskill's statement — remarked, "Some accountability needs to be put in place. We won't have them kicking sand in the face of taxpayers any longer." Dealbreaker.com also suggests charging rent for White House tenants.

Comparing the President to Wall Street CEOs is absurd. The "private jet" that Obama uses is Air Force One, which is used as a security precaution and necessary for the dozens of staff and press that accompany the President on every trip. Each use of the jet by the President is regarded as a "classified military operation" in order to ensure the President's safety.

Furthermore, Obama's salary is set by Congress (whose members are elected by the public). CEO compensation is decided internally within the company, usually by its board of directors. The problem with recent excessive CEO compensation was that executives receiving federal funds were still rewarded for failure with tens of millions of dollars from their companies.

The President, on the other hand, does not get a bonus for his performance, good or bad. Indeed, Presidents Bush and Obama earn the same salary. County Fair at Media Matters has more.

Michael Wilson

Your guide to the economic stimulus bill from Politifact.com

As the Senate nears a final vote on the economic stimulus bill, we thought it would be helpful to pull together all of our Truth-O-Meter items on what's in the bill and what's not. You'll find our rulings summarized in the box on the right. If you've been reading the site over the past two weeks, you know that we found lots of hyperbole in the debate.

rest http://www.politifact.com/truth-o-meter/article/2009/feb/05/your-guide-economic-stimulus-bill/

Another Nominee With Tax Problems from Truthdig: Drilling Beneath the Headlines


What exactly was the point of that endless questionnaire Team Obama famously had prospective worker bees fill out? A fifth Obama nominee has run into some controversy, the fourth due to a failure to pay taxes, although in the case of Labor Secretary-designate Hilda Solis, her husband is to blame.

It seems Mr. Solis recently had to settle $6,400 in tax liens on his business. Those aren't exactly Tom Daschle proportions, but it makes one wonder, given how rampant this has been among the select group of Obama nominees, whether anyone actually pays their taxes.

No wonder we have such a huge deficit.

rest http://www.truthdig.com/eartotheground/item/20090205_another_nominee_with_tax_problems/

California Agriculture in Peril From Climate Change from Truthout - All Articles

     "We're looking at a scenario where there's no more agriculture in California," Steven Chu says. He sees education as a means to combat threat.

    Washington - California's farms and vineyards could vanish by the end of the century, and its major cities could be in jeopardy, if Americans do not act to slow the advance of global warming, Secretary of Energy Steven Chu said Tuesday.

    In his first interview since taking office last month, the Nobel-prize-winning physicist offered some of the starkest comments yet on how seriously President Obama's cabinet views the threat of climate change, along with a detailed assessment of the administration's plans to combat it.

    Chu warned of water shortages plaguing the West and Upper Midwest and particularly dire consequences for California, his home state, the nation's leading agricultural producer.

    In a worst case, Chu said, up to 90% of the Sierra snowpack could disappear, all but eliminating a natural storage system for water vital to agriculture.

rest http://www.truthout.org/020509EA

Report: Big Apple Losing Its Middle Class from Open Left

This report from the Center for an Urban Future basically says that for the middle class, there really is no future in New York City. Because of idiotically high housing prices and massive gentrification, the Big Apple is losing its middle-class at an astounding rate.

rest http://www.openleft.com/showDiary.do?diaryId=11397

Bank of New York Mellon's TARP deal worth $20 million from BailoutSleuth


The Government Accountability Office has spilled one of the Treasury Department's TARP secrets, revealing the value of the Bank of New York Mellon's contract to serve as master custodian for the financial-industry rescue program.

 

In a report issued late last week, the GAO estimated that Bank of New York Mellon would receive $20 million over three years.

 

The Treasury Department hired Bank of New York Mellon in October to keep tabs on the assets it would buy and sell through the $700 billion Troubled Asset Relief Program. But when it posted the contract on its web site, it blacked out the portion outlining how much the bank would be paid and how that pay would be calculated.


rest http://bailoutsleuth.com/2009/02/the-government-accountability-office-has/

Wednesday, February 04, 2009

Talk-Radio Republicans Are Winning The Stimulus Battle from Crooks and Liars


I was going to write something like this today, but former Air America CEO Doug Kreeger beat me to it. I'll just add that Obama gave the GOP this opening by courting Republican opinion instead of loudly denouncing them as the party that gave us this economic disaster.

Not that they wouldn't have done this anyway, but Obama legitimized them at a time the nation should be attacking them with pitchforks:

Last week, Obama's plans were debated in Congress. His goal of creating 2 million to 3 million jobs in the next two years through a massive rebuilding program of our crumbling infrastructure, was countered by the Republicans' revised stimulus plan. Their plan was not detailed beyond more tax cuts.

Here's the catch: The Republicans said their plan would create 6 million jobs. Really. Remember "Mission Accomplished"? Just saying something doesn't make it true.

The Republican playbook is about standing in opposition, knowing full well that the Democratic Congress is going to pass a stimulus package. Their next step is to go home and sell to what's left of their constituencies the notion that if we had listened to them, things would be far rosier. As a minority, a control group is unlikely to emerge that can disprove false numbers based on false rhetoric. They can go back and campaign in two years whether or not Obama's plan creates anywhere close to the number he hopes and tell the world, and claim that their plan would have provided double the number.

A perfectly manipulative strategy which plays to the short-term memory of the American electorate.

rest http://crooksandliars.com/susie-madrak/talk-show-republicans-are-winning-sti

After announcing job cuts, Macy's announces bonus payments from BloggingStocks

Suddenly, I have found myself playing the role of Don Quixote tilting at the windmills of poor executive decisions. I didn't intend to play this role, but the inhabitants of boardrooms and the corner offices are making the job so easy.

The latest example of poor decisions and announcement comes courtesy of Macy's (NYSE: M). The retailer announced on Monday that it would lay off roughly 7,000 workers and cut its dividend in half in hopes of saving money. So, what is the next announcement that the company makes? If you guessed performance bonus payments to executives, give yourself a pat on the back.
On Tuesday, M gave its top officials the final installment on $1.39 million in performance bonuses from 2004. The plan was created in March 2004 and gave five top executive stock credits after a three-year holding period, which ended Sunday. Half of the incentive was paid a year ago and the remainder was paid out on Monday - so this wasn't a decision made on Monday or last week.

rest http://www.bloggingstocks.com/2009/02/04/after-announcing-job-cuts-macys-announces-bonus-payments/

Obama's Betrayal from AfterDowningStreet.org

from http://www.afterdowningstreet.org/node/39549

Just two weeks after his historic inauguration ceremony, Obama's presidency is lurching towards failure, and not because three or his administration picks have been found to be tax cheats, but because nearly all of his administration picks are corporate whores and shills.

The problem with the new Obama administration is that it is turning out to be not about change at all, as he claimed during the campaign, but rather about more of the same—and these are not times that call for more of the same. Nor is more of the same the reason Obama won the election.

The economic team President Obama has put in place is composed of the same Wall Street hacks and conservative economic theologians who helped produce the current crisis, many of them as part of the Clinton administration, and some, like Timothy Geithner, actually as appointees of the thoroughly discredited Bush administration.

Obama's military team is essentially composed of holdovers from the Bush administration, starting at the top with Defense Secretary Robert Gates, and retreads from the Clinton administration.

Little wonder that the president's economic team is still talking about throwing more money at banks, with the only real tweak making this boondoggle different from the Bush administration's fall bailout that there will be some limits established on executive pay. Banks will still be able to use their taxpayer bailout cash to buy other banks. And there will still be no way to force them to lend money. Little wonder too that there is no real effort aimed at propping up the struggling public—no job sweeping job creation programs (except for expanding the military), no major income supplements for the poor, no expansion of welfare benefits, no mandatory mortgage renegotiations or mortgage payment holidays. And so far, no real effort to pass labor law reform to protect workers who try to form labor unions.

Little wonder too that Obama seems to be backing away from his key campaign promise to end the war in Iraq, and that the one area where he is moving rapidly is in expanding the war in Afghanistan and the tribal areas of western Pakistan.

If there is any new thinking going on in the new Obama White House, it seems focused on ways to neuter the progressive forces that put him in that building in the first place. In this, Obama is running true to form for a Democratic president. Traditionally, at least since the days of the New Deal, Democrats have run for office promising progressive government, and have then run away from their promises as quickly as possible. The difference with Obama is that he is betraying his base faster than any of his predecessors. His latest appointment of New Hampshire Republican Senator Judd Gregg as Commerce Secretary is a case in point—a man deeply conservative, opposed to the very existence of the Commerce Department he will head, and to top it off, Obama worked out a deal to have the Democratic governor of New Hampshire fill Gregg's vacated Senate seat with a Republican appointee, forfeiting the right to add a Democrat to the Senate and eliminate any chance of Republican filibusters.

In this instance, Obama's strategy is growing increasingly clear. He and the Democrats in Congress don't seem to really want to pass progressive legislation, such as the Employee Free Choice Act, and they probably don't really want to appoint true liberal judges to the appellate and the Supreme Court, either. That being the case, they are happy to leave Republicans with 41 Senate seats and at least the theoretical power to block Democratic legislation. That way, they can simply not offer up such legislation or such nominees, claiming these efforts would be doomed by a Republican filibuster. It's a fraudulent claim, of course. When the Democrats were in the minority in the Senate during the penultimate four years of the Bush administration, they didn't use the filibuster weapon to prevent Republican legislation. And the Republicans today are in a much weaker position, with a Democratic president who, at least theoretically, could bring considerable pressure on Republican legislators to do his bidding, or see their home states suffer.

One can puzzle over why a Democratic president would so quickly abandon his base, when Republicans, in contrast, have always strived so mightily to cater to theirs. My guess is that people like Obama cling to the long-discredited theory that the way to win elections is to appeal to some mythical "middle-of-the-road" electorate, and that thusly, he and his advisers, their eyes already on the 2012 election, are trying to position him as the candidate of the center.

Sadly, for both him and for all of us, this is a doomed strategy. The economy and the wars in the Middle East both call for dramatic action of the kind that Obama's voters and especially his activist base wanted and expected from him when they backed him last fall: In the case of the economy, a return to a kind of modern New Deal that would vastly expand funding for education right through college, that would dramatically expand unemployment compensation, job training benefits and welfare and child-care programs, that would expand Medicare to everyone, and that would end the subsidies for outsourcing of jobs and the relocation of businesses overseas; In the case of foreign policy, a prompt end to the Iraq War, a winding down of the Afghanistan War, and a termination of the so-called "war" on terror, with a refocus on international police cooperation and action against terrorist organizations.

Some of these things may eventually come to pass, but only when it becomes painfully obvious that the half measures and worn out strategies being applied to the economy have failed, and after the US faces being driven out of Iraq and Afghanistan—and even then only after the people who elected this president have taken to the streets to demonstrate against his betrayals. That awareness, of course, will come after the wasted spending of trillions of misdirected "stimulus" dollars and the wasted loss of hundreds or thousands of American lives, not to mention perhaps hundreds of thousands of Iraqi, Afghani and Pakistani lives.

It is, of course, still early in the game. Perhaps, with Obama's shabby appointments of people like Geithner, Tom Daschle and Nancy Killefer causing an uproar, with his top generals openly trying to undermine him, and with Republicans starting to regain their confidence and refusing to play his "non-partisan" game, opting instead for a strategy of political obstruction, he may realize that he needs his the enthusiastic backing of his liberal base. If this happens, that base needs to make him realize that, in the wake of his early betrayals, he is going to have to earn their support.

The "Kumbaya" and "This Land is Our Land" singing is over, and unless Obama starts singing a different tune soon, he will spend the next four years presiding over a shattered economy and a nation mired in a distant, pointless and unwinnable war.

Kidney removed through vagina from Boing Boing

Early this week, a surgeon successfully removed a healthy kidney through a donor's vagina for transplantation, the first operation of its kind. The donor and the recipent, the donor's niece, are both recovering. Typically, removing the kidney requires a six-inch incision through the belly and the donor is in the hospital for several days after. With the new procedure, the donor could likely go home in a day. From CNN:

rest http://www.boingboing.net/2009/02/04/kidney-removed-throu.html

Video: The reality about ‘clean’ coal. from Think Progress


The coal industry has spent hundreds of millions of dollars trying to convince the public that clean coal is more than a myth (it isn't). Its gimmicks have included "blogger brigades," cartoon "coal carolers," and countless ads. The Wonk Room's Brad Johnson has put together a short video spoofing these ads to show the truth about dirty coal. Watch it: 

http://www.youtube.com/watch?v=D4-HQrunDaE

from http://thinkprogress.org/2009/02/04/coal-ad-wonk/


The Untold Daschle Story - The Blacklisting of Leo Hindery from The Big Picture

from http://www.ritholtz.com/blog/2009/02/the-untold-daschle-story-the-blacklisting-of-leo-hindery/

Very interesting post on "Open Left" came over the transom this AM.

Blacklisting Progressives: The Untold Story Beneath the Daschle Headlines
by: David Sirota
Tue Feb 03, 2009 at 16:46
http://www.openleft.com/showDiary.do?diaryId=11343

Amid the swirling headlines about Tom Daschle withdrawing his nomination for Health and Human Service Secretary is a very dark, very foreboding story that tells us a lot more about what to expect from the Obama administration than a single nomination fight. It is a story that every single voter who supported Barack Obama because of his progressive economic platform should know about - and worry about.

As every newspaper in America has been happy to report, Daschle worked with venture capitalist Leo Hindery after he left the Senate. Hindery was a top economic adviser to John Edwards and later to Barack Obama, and many had floated his name for U.S. Trade Representative or Commerce Secretary. Now, though, that won't be happening, as anyone mentioned near the Daschle flap is being shunned by the Obama administration.

But is that really why someone as accomplished as Hindery was never seriously considered for a top economic post in the administration? The media and the Obama administration would like us to believe yes - but the answer is no. It has far less to do with the Daschle situation and far more to do with Hindery's progressive economic ideology.

Buried in a Politico dispatch, we get the real story:

Hindery did his best to carve out his own public profile, with generous contributions to a range of Democratic-leaning organizations and a 2005 book, "It Takes a CEO," decrying outsourcing, Wal-Mart, and "an ethical and aesthetic 'race to the bottom'" in the media industry.

He also hoped to land a job in the Obama administration, and he had a close Obama adviser - Daschle — in his corner, the two Democrats said. United Steeelworkers union officials also backed him.

But while Hindery complained that he "waited for the phone to ring," a source said, Obama's aides appear never to have taken his bid seriously. One possible source of friction: Hindery had set himself up in opposition to Obama's top economic advisors, many of whom were associated with The Hamilton Project, an economic think tank that was the inheritor of former Treasury Secretary Rubin's generally pro-trade position.

In the same story, of course, we get hedge fund shark Steve Rattner - a huge Democratic fundraiser on Wall Street - bashing Hindery for backing populist Democratic candidates for local and national office.

And that's the big story here: Leo Hindery, one of the few business leaders to use his wealth to challenge deregulation, corporate trade deals and anti-worker policies was blacklisted by the Obama administration well before the Daschle flap ever happened - and he was blacklisted because he dared to clash with the same Wall Street Democrats whose corporate-backed policies destroyed the economy.

You can go ahead and tell yourself that this is just theory - just a single example. But that's willful ignorance, as the Hindrey scalping is only one chapter in what has been one long narrative arc whereby economic progressives have been deliberately shut out of top administration jobs. Just step back and think about it for a minute: Amid a stable of eminently qualified and well-respected progressives like James Galbraith, Joseph Stiglitz, Dean Baker, Robert Reich, Paul Krugman and Larry Mishel, Obama has chosen Rubin sycophants like Larry Summers and Tim Geithner to run the economy - the same Larry Summers who pushed the repeal of the Glass-Steagal Act, the same Geithner who masterminded the kleptocratic bank bailout, the same duo whose claim to fame is their personal connections to Rubin, a disgraced Citigroup executive at the center of the current meltdown. And the list of Rubin sycophants keeps getting longer, from Peter Orszag to Jason Furman.

As the Nation's Chris Hayes shows, its the same in other key regulatory positions, as free market fundamentalists who created the problem take the helm of the regulatory agencies they tried to destroy. Indeed, the only movement progressive in a top economic position is Jared Bernstein, and he was relegated to an amorphous job in the Vice President's office.

And now we see that's not an accident. Though Obama won states like Ohio, Pennsylvania and Indiana on promises to challenge Wall Street and reform our trade policies, there has been a deliberate and calculated effort to stack the administration with the very Wall Street Democrats who created the problems he lamented, and shun those who have been fighting the good fight.

The Anger Behind Obama’s Executive Pay Limits from The Washington Independent


President Obama's expected moves today to limit pay, bonuses and perks for executives of companies that get government bailouts, reflect a kind of populist anger not seen in decades, Bloomberg reports.

Thomas Mann, a scholar at the Brookings Institution in Washington, said the anger hasn't been this pronounced since Franklin Roosevelt took office during the depths of the Great Depression in 1933.

Roosevelt gave voice to a public rage against "a generation of self-seekers," in his inaugural address. "Practices of the unscrupulous money changers stand indicted in the court of public opinion," said Roosevelt.

Along with imposing a $500,000 salary cap for top executives of firms that get significant amounts of government assistance, the Obama administration also wants to limit perks. From Bloomberg:

Any additional compensation will be in restricted stock that won't vest until taxpayers have been paid back, according to an administration official, who requested anonymity. The rules will force greater transparency on the use of corporate jets, office renovations and holiday parties as well as golden parachutes offered to executives when they leave companies.

I'm not sure the the corporate world really understands what's about to hit it. This will be just the beginning of a major overhaul of the financial system - something that will be popular with the American people. And Wall Street has no one to blame but itself, by flouting the economic pain of ordinary Americans with corporate jets, Super Bowl parties, and lavish retreats.

rest http://washingtonindependent.com/28875/the-anger-behind-obamas-executive-pay-limits

There Are 19 Million Vacant Homes In The US from Consumerist


19 million homes are currently vacant and for sale, either through foreclosure or bank seizure or just because no one feels like living there — and 19 million is a record.

From Bloomberg:

rest http://consumerist.com/5145628/there-are-19-million-vacant-homes-in-the-us

Idiot: Joe the Plumber: ‘I don’t know if the American public deserve me.’ from Think Progress


wurze.jpg Yesterday, the ubiquitous Samuel Joseph Wurzelbacher — aka "Joe the Plumber" and "Joe the War Correspondent" — became "Joe the Economist" when he went and spoke to a House GOP breakfast on the economic recovery package. The New York Daily News caught with Wurzelbacher and asked about the meeting:

"It's not politically incorrect to say you're Republican or conservative," Joe said. "They need to dig their heels in and fight for what needs to be done." […]

One thing that needs to be done, he said, is killing this stimulus package, because it's just another example of "American government" — Republicans and Democrats — "kicking our butts left and right." He also called it welfare.

rest http://thinkprogress.org/2009/02/04/joe-plumber-stimulus/

Madoff whistleblower: SEC “abject failure” from Politics in the Zeros.


Harry Markopolos, who told the SEC about Madoff in 2005, will testify before Congress today. (prepared statement PDF)

From financial journalist Gary Weiss

It is absolutely devastating. Among other things, Markopolos says that because of the SEC's "abject failure" to do anything, because of its "investigative ineptitude and financial illiteracy," he was in fear for the safety of his family.

No. It was not incompetence. It was quite deliberate. SEC was headed by free marketeer zealots who quite methodically set out to insure that nothing would "interfere" with the markets.

Of course there was certainly ample opportunity for corruption too. Not to mention Markopolos being, probably quite justifiably, scared for his life. "If Mr. Madoff was facing life in prison, there was little to no downside for him to remove any such threat," he said.

So Markopolos apparently thinks Madoff is quite capable of having someone killed. Tell me, just who is this Madoff fellow and most especially, who are those, still hiding in the shadows, that helped him pull this off?

This is an infuriating document. Infuriating to me personally, because I can tell you that if Markopolous had come to me or to anyone at Business Week — which at that time (May 2000) had editors who could actually understand such things — he'd have been taken seriously and his allegations would have been investigated thoroughly.

rest http://polizeros.com/2009/02/04/madoff-whistleblower-sec-abject-failure/

TARP Recipients Paid Out $114 Million for Politicking Last Year from Capital Eye


The companies that have been awarded taxpayers' money from Congress's bailout bill spent $77 million on lobbying and $37 million on federal campaign contributions, Center finds. The return on investment: 267,208 percent.

 
WASHINGTON--The struggling companies whose freewheeling business practices have contributed to the country's economic woes are getting a lucrative return on at least one of their investments. Beneficiaries of the $700 billion bailout package in the finance and automotive industries have spent a total of $114.2 million on lobbying in the past year and contributions toward the 2008 election, the nonpartisan Center for Responsive Politics has found. The companies' political activities have, in part, yielded them $305.2 billion from the federal government's Troubled Asset Relief Program (TARP), an extraordinary return of 267,208 percent.

"Even in the best economic times, you won't find an investment with a greater payoff than what these companies have been getting," said Sheila Krumholz, the Center's executive director. "Some of the companies and industries that have received payments may now consider their contributions and lobbying to be the smartest investments they've made in years." 

While the Treasury Department, not Congress, doles out TARP funds to specific institutions, congressional lawmakers had to authorize that money in the first place, and lawmakers will determine in the future whether to release more funds to prop up the U.S. economy. During the bill-writing process, members of Congress were able to specify to some extent where the money should go, and they have lobbied regulators to urge them to inject funds into specific banks and financial institutions, including those in lawmakers' own districts.  

"Taxpayers hope their money is being allocated entirely on the merits, but with Congress controlling how much money the Treasury gets to hand out, it will be impossible to completely exclude politics from this process," Krumholz said.

Some of the top recipients of contributions from companies receiving TARP money are the same members of Congress who chair committees charged with regulating the financial sector and overseeing the effectiveness of this unprecedented government program. They include Sen. Chris Dodd of Connecticut, chairman of the Senate Committee on Banking, Housing and Urban Affairs (he received $854,200 from the companies in the 2008 election cycle, including money to his presidential campaign) and Sen. Max Baucus of Montana, chair of the Senate Finance Committee (he received $279,000). In total, members of the Senate Committee on Banking, Housing and Urban Affairs, Senate Finance Committee and House Financial Services Committee received $5.2 million from TARP recipients in the 2007-2008 election cycle. President Obama collected at least $4.3 million from employees at these companies for his presidential campaign.

Some, Not All, TARP Recipients Hired Lobbyists

Of the more than 300 companies that have been aided by TARP, 25 paid lobbyists a total of $76.7 million to represent them on Capitol Hill in 2008. Treasury Secretary Tim Geithner said recently that institutions collecting these funds won't be allowed to lobby the federal government going forward. In the 4th Quarter of 2008, when Congress was crafting bailout legislation, these companies spent $17.8 million on lobbying--less than what they spent in the prior three quarters, probably because they were strapped for cash.

rest http://www.opensecrets.org/news/2009/02/tarp-recipients-paid-out-114-m.html

Welcome America to Your Sizzlin’ Larry Summers Shitburger from Firedoglake


visual stylings by phoenix woman

Yum.  Get 'em while they're hot:

Instead of taking a single approach, the Obama administration plans to divide assets and other loans into three categories, each with its own solution, according to sources familiar with the discussions, speaking on condition of anonymity because the details are not finalized.

The government would buy and hold on to those assets whose falling prices are putting banks under the most pressure. Officials want to limit these purchases because of the vast expense.

The centerpiece of the plan would be a guarantee to limit losses on a second group of troubled assets that can be kept by the banks because they have more stable prices.

And it would allow banks to retain and profit from their healthiest assets.

Which means you, America, get shit.  Do you get to have better healthcare, more public transit, clean air, better schools or more jobs if the banks you've invested so heavily in make money?

No!   The bankers who built this shitpile get to keep that.  You just get the losses.

rest http://firedoglake.com/2009/02/04/welcome-america-to-your-sizzlin-larry-summers-shitburger/

A Bit More on Obama’s Executive Compensation Stand from The Washington Independent


Following up on Mary's post, it's also worth noting that the $500,000 executive-pay limit for bailed out banks to be unveiled today by the White House seems to apply to total compensation — meaning salary, bonuses, stock options, everything.

That would be a sharp break from the Bush administration's Wall Street bailout bill, which did very little to rein in the enormous pay packages enjoyed by Wall Street executives, even after they'd run their companies into the ground. Under TARP, for example, the limits on golden parachute retirement packages applied only to the five top-paid employees of the bailed-out firm — and only if the firm accepted more than $300 million of taxpayer funding.

The Obama team's limits also seem poised to go further than the TARP-reform bill passed by the House last month. That proposal, which the Senate never considered, would have limited executive bonuses and incentive-based pay, but not salaries — a loophole that would have allowed bailed-out firms to pay their executives anything they pleased.

rest http://washingtonindependent.com/28902/a-bit-more-on-obamas-executive-compensation-stand

Longtime WGN radio host Eddie Schwartz dies from Chicago Breaking News


Republican Lobbyists Kill Michigan Foreclosure Relief from Political Affairs Magazine

GRAND RAPIDS, Mich. – The same Republican-owned law firm that may have tried to help Michigan Republicans hand an electoral victory to John McCain here in the November presidential election may also be blocking effective foreclosure relief legislation.

GRAND RAPIDS, Mich. – The same Republican-owned law firm that may have tried to help Michigan Republicans hand an electoral victory to John McCain here in the November presidential election may also be blocking effective foreclosure relief legislation, the news Web site Michigan Messenger reported this week.

Michigan Messenger broke a story last fall quoting state Republican Party officials as saying they planned to use a list of home foreclosures to challenge voters at the poll sin the Detroit area. The Web site further reported that such a list may have been obtained from Trott and Trott, an area law firm whose owner, David Trott, who had given thousands to the McCain campaign.

Trott and Trott, located in a suburb of Detroit, handles the paperwork for "thousands of foreclosed homes," the Michigan Messenger reported.

After the story about the Republican Party plan to use a foreclosure list possibly obtained from Trott and Trott broke, Republican Party officials denied the published quotes and threatened to sue the Web site. The threatened suits never materialized and heavy coverage of the incident forced Republican Party officials to back away from their plan to challenge voters.

Now, it appears the Trott and Trott firm may be intervening in Michigan state politics to singlehandedly weaken or block legislation that will help troubled homeowners renegotiate the terms of their mortgages, keep their homes and pay their bills, the Michigan Messenger has reported.

A bill, Home Foreclosure Prevention Act, introduced in the Michigan state legislature by Gov. Jennifer Granholm last December would have helped homeowners negotiate a new settlement with lenders before foreclosure proceedings. The bill, approved by the Democratic-controlled state House, was blocked in the Republican-controlled state Senate.

Democratic leaders in the state legislature blamed the failure of the bill on the lobbying efforts of Trott and Trott, which gives thousands to the Republican Party and enjoys a hefty business from foreclosure proceedings.

Further, the Michigan Messenger reported, one Democratic leader said that he was told by a Senate Republican leader that the Senate version of the bill was actually authored by Trott and Trott lawyers. Other Democrats in the state legislature also to that news Web site that Trott and Trott lobbyists helped kill previous foreclosure relief efforts.

rest http://politicalaffairs.net/article/view/8081/

Obama moves to limit TARP exec pay from Congress Matters


Some welcome news:

The Obama administration is expected to impose a cap of $500,000 for top executives at companies that receive large amounts of bailout money, according to people familiar with the plan.

Executives would also be prohibited from receiving any bonuses above their base pay, except for normal stock dividends.

It remains to be seen how well this holds up, of course. If there's one thing at which Wall Street excels, it's finding alternative methods to pipe money around regulations. But it's a step in the right direction, and one you would never have gotten out of the Bush "administration." And frankly, as recently as four days ago, we weren't so sure we were going to get it out of this one, either. (Are you keeping tabs on your source's track record, WaPo? He could certainly have been right at the time, of course. But keep score somewhere. Just a suggestion.)

I think it's fair to guess that lots will be said about this quote -- truly one for the ages:

"That is pretty draconian — $500,000 is not a lot of money, particularly if there is no bonus," said James F. Reda, founder and managing director of James F. Reda & Associates, a compensation consulting firm. "And you know these companies that are in trouble are not going to pay much of an annual dividend."

Mr. Reda said only a handful of big companies pay chief executives and other senior executives $500,000 or less in total compensation. He said such limits will make it hard for the companies to recruit and keep executives, most of whom could earn more money at other firms.

"It would be really tough to get people to staff" companies that are forced to impose these limits, he said. "I don't think this will work."

It's true. It is pretty draconian.

rest http://www.congressmatters.com/storyonly/2009/2/4/94511/26834

The "Make Him Do It" Dynamic In Action: Obama to Back Sanders' Crackdown on Executive Pay from Open Left

This week, I wrote my syndicated newspaper column about what I called "The Make Him Do It" Dynamic - that is, how congressional progressives - with the help of the progressive movement - were having success pushing President Obama to take much stronger stands on issues than he seems inclined to take. And yesterday, I noted that Sen. Bernie Sanders (I-VT) has been working with the progressive movement to push a legislative crackdown on executive pay at banks taking bailout money. Well, today, President Obama finally responded, announcing his support for such a crackdown.

Though we don't know the full details of Obama's plan, it is a pretty clear reversal of his administration's earlier declaration that it would oppose limits on executive pay.

rest http://www.openleft.com/showDiary.do?diaryId=11349

Wells Fargo Cancels Execs’ Las Vegas Mega-Party from Firedoglake


laswynn_r01.thumbnail.jpgWells Fargo, which received $25 billion in bail out money, hastily canceled a 12-night ultra-post Las Vegas getaway for the company's top mortgage officers when the media--both bloggers and MSM-- and Washington lawmakers  expressed deep-seated, pitchforks-and-torches outrage.

Reports the Wall Street Journal:

Initially, a spokesman for Wells Fargo said in a statement, the bank wasn't going to back away from holding the conference. Just hours later, as television networks and bloggers pummeled the bank, Wells Fargo began backpedaling.

rest http://lafiga.firedoglake.com/2009/02/04/well-fargo-cancels-execs-las-vegas-mega-party/

Monday, February 02, 2009

Democratic Senator Ben Nelson May Oppose Stimulus Package Because Of Pell Grant Funding from Think Progress

from http://thinkprogress.org/2009/02/02/nelson-pell-grants/

nelsonobama.jpgCollege students sought financial aid in record numbers last year, leading even Bush administration officials to call for an increase in Pell Grant funding — "the most important form of aid to needy students."

Yet Sen. Ben Nelson (D-NE) is arguing against the House version of the economic recovery package because of its funding for Pell Grants. Nelson says he wants to eliminate "non-stimulative" and non-"job creation" items in the bill:

Even some Democrats are speaking out against including popular programs — such as an almost $15 billion increase in funding for Pell grants for higher education — in legislation that is supposed to spark an economic recovery. "You don't want to be against Pell grants," said Sen. Ben. Nelson (D-Neb.). "But the question is: How many people go to work on Pell grants?"

Increasing Pell Grant funding is a key way to preserve jobs in this tough economy. As grant recipients pay tuition and buy books, college faculty and staff will stay employed at a time when the education sector is experiencing widespread job cuts.

And with unemployment rising, Pell Grants provide workers with greater access to higher education — boosting their prospects for gaining employment. CAP's Will Straw notes:

Improving the skills of unemployed American workers and providing funds to allow lower-income students to work their way through college would provide a boost to the economy and improve the workforce skills needed when businesses begin to hire again as the economy improves.

Furthermore, because the recession has forced colleges to raise tuition and cut aid, students receiving Pell Grants will quickly spend their loans, providing a short-term stimulus to the economy. In the long-term, increasing access to higher education is an investment that will help alleviate a human capital-starved economy.

Although Nelson has certainly championed Pell Grant funding in the past, he is echoing right-wing talking points in labeling parts of the bill as "non-stimulative." Putting off the Pell Grant shortfall for a later date is something the economy cannot afford.

Scandal: Tom Daschle Is Rich from Gawker


How Washington works: pay your dues as a Senator, then your rich friends get you a consulting gig and free car service! Then you forget to pay your taxes and it complicates your cabinet nomination.

That is the story of Tom Daschle, the former Senator and Obama's pick for Secretary of Health and Human Services. He is the guy who will fix health care, once his embarrassing tax issues are dealt with. All because a rich friend of his gave him millions of dollars to sit on the board of his media company that, oddly, had no business with the government. And also his friend let him use his Cadillac and driver for free, whenever he was out of town, and Daschle didn't pay taxes on that, because who knew?

And so Daschle's accountant finally told him that he owed $150 grand in taxes, on that car, but he can afford it because his rich friend's investment firm gave Daschle $2 million to raise money and sit on the board, with other former lawmakers and random notable political types.

rest http://gawker.com/5144360/scandal-tom-daschle-is-rich

Romer responds to distortions of her research: GOP analysis is ‘flat wrong’ and ‘absolutely incorrect.’ from Think Progress

from http://thinkprogress.org/2009/02/02/romer-gop-analysis/

Last week, House Republicans offered a tax-cut heavy alternative economic recovery plan that they claimed would create 6.2 million jobs. The conclusion was based on a distortion of past research done by Council of Economic Advisers Chair Christina Romer. Over the weekend, Berkeley economist Brad DeLong obtained Romer's response to the GOP's misuse of her work. "Romer's view is that the House analysis is absolutely incorrect," said the White House talking points:

Question: The House claims that based on the research of CEA Chair Christy Romer, their plan would create 6.2 million jobs. Isn't that a more effective way of jumpstarting the economy?

Answer: The Republican House analysis is flat wrong in its claim that the House Republican stimulus is more effective. No matter what your analytical assumptions, as long as they are consistent the plan the President supports would result in substantially greater job creation than the House Republican plan.

As CAPAF Senior Fellow James Kvaal has pointed out, the conclusion of the Romer paper that the GOP is quoting was "that the economic environment complicates the assessment of policy changes, not that tax cuts are the most effective way to create jobs." A more recent analysis by Romer and Jared Bernstein concluded that government investment creates more jobs than tax cuts.

The Financial Community Reinvestment Act from Dealbreaker

from http://dealbreaker.com/2009/02/the-financial-community-reinve.php

Much as it pains us to point out that it was government pressured lending that got us here in the first place, it was government pressured lending that got us here in the first place. Having absorbed exactly zero from the last bubble's explosion...

President Barack Obama will require banks to boost lending to consumers and companies in return for taxpayer aid from the $700 billion bailout fund, in a departure from Bush administration policy, a key lawmaker said.

"You're going to see the Obama administration," learning lessons from the first phase of the program, "push for much more lending," House Financial Services Committee Chairman Barney Frank, who helped write the financial-rescue law, said yesterday on ABC television's This Week program. "There are going to be some real rules in there."

If there is a formula to load the balance sheets of institutions with more bad loans, this probably looks a lot like it.

We can't really say we want to see banks doing all that much lending at the moment. Debting our way out of the current crisis is simply not a solution. It merely delays the problem, and pays it back later- with interest.

The United States enjoyed an eye-popping period of largely artificial growth the last two or three years (if not the last five), and one thing that never seems to sink in is that many of these "losses" are merely the evaporation of as much mist under the harsh sunlight of reality. This is a short way of saying that there is no escape from the pain but to endure the pain for awhile- you never had those assets anyhow, unless you sold them for cash. They were an illusion. Your only way to capitalize on them was to unload them on a greater fool before the sun came up. If you missed the boat, that's too bad but those are the breaks.

Certainly, the present administration is under a lot of pressure to produce "results" and press the magic button under the President's desk to make everything all-better. This is a self-inflicted wound, since they got themselves elected by setting expectations high. Very high. Unfortunately, it doesn't work that way, and until someone points out that more debt (particularly that issued by decree) is not exactly an answer, we are all in a lot of trouble.

Obama to Require Banks Receiving Aid to Boost Lending [Bloomberg]

Joe Scarborough: Obama’s Trying To ‘Buy Off People’ With ‘Pure, Straight Socialism’ from Think Progress


MSNBC's Joe Scarborough went off on a tear against President Obama's proposed stimulus plan this morning, slamming tax credits for people who, according to him, "don't pay taxes." "It's not even welfare!" he shouted, and accused Obama of trying to "buy off your constituents":

SCARBOROUGH: You're not going to get Republicans to line up and support tax cuts for people who don't pay taxes. That's taking you to a position now where you have the federal government — and this is very dangerous — just writing checks to people for doing nothing. It's not even welfare. … If you want pure straight socialism, if you want to buy off people, do that.

Watch it:http://www.youtube.com/watch?v=R4NElRfIVwU

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There are enormous problems with this analysis. First, Americans benefiting from the tax cut do pay taxes — sales taxes, payroll taxes, social security taxes — even if they don't pay income tax. In fact, those in the lowest income bracket pay about 4.3 percent of their income to federal taxes.

The tax credit isn't some kind of charity; it's one of the most effective kinds of tax cuts in terms of stimulating the economy. Moody's chief ecomomist Mark Zandi showed that the refundable tax credit gives the economy a far greater "bang for the buck" than non-refundable tax cuts, corporate tax cuts, or making Bush's tax cuts permanent, the "solutions" proposed by conservatives:

moody-chart.gif

What's more, as Center for American Progress Action Fund President John Podesta pointed out to Scarborough minutes later, these tax cuts were something that "Barack Obama campaigned on all year long" — and he encountered the exact same fearmongering accusations of "socialism" from conservatives. If Americans didn't support Obama's tax plan, they wouldn't have voted for him.