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Latest Obama Cave-in Is Likely To Further Erode His Base

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Well, he did it again.  Despite the fact that President Obama had vowed to veto the 2012 National Defense Authorization Act (NDAA), which allows for indefinite detention of American citizens without trial, the White House announced that the President will breach yet another promise and sign the controversial bill.

Jeremy Herb at The Hill reported on the administration’s concern that if Obama were to veto the bill, there might not have been enough votes in Congress to prevent an override of that veto.  In other words:  Obama was afraid of being embarrassed.  The report noted the defensive language contained in the official White House spin, to the effect that some minor changes in wording were made to satisfy the President:

The White House backed down from its veto threat of the defense authorization bill Wednesday, saying that the bill’s updated language would not constrain the Obama administration’s counterterrorism efforts.

*   *   *

The administration won some changes in conference committee, which wrapped up Monday, including the addition of a clause stating that FBI and local law enforcement counterterrorism activities would not be altered by the law.

Big deal.  Let the outrage begin!  At the Huffington Post, Michael McAuliff noted that the President had already decided to back down on his veto threat before the House of Representatives passed the bill:

The switch came just before the House voted 283-136 to pass the National Defense Authorization Act despite impassioned opposition that crossed party lines, with Democrats splitting on the bill and more than 40 Republicans opposing it.  Numerous national security experts and civil liberties advocates had argued that the indefinite detention measure enshrines recent, questionable investigative practices that are contrary to fundamental American rights.

At the Human Rights Watch website, no punches were pulled in their criticism of Obama’s latest betrayal of those very principles his supporters expected him to advance:

The Obama administration had threatened to veto the bill, the 2012 National Defense Authorization Act (NDAA), over detainee provisions, but on December 14, 2011, issued a statement indicating the president would likely sign the legislation.

“By signing this defense spending bill, President Obama will go down in history as the president who enshrined indefinite detention without trial in US law,” said Kenneth Roth, executive director of Human Rights Watch.  “In the past, Obama has lauded the importance of being on the right side of history, but today he is definitely on the wrong side.”

*   *   *

The far-reaching detainee provisions would codify indefinite detention without trial into US law for the first time since the McCarthy era when Congress in 1950 overrode the veto of then-President Harry Truman and passed the Internal Security Act.

*   *   *

“It is a sad moment when a president who has prided himself on his knowledge of and belief in constitutional principles succumbs to the politics of the moment to sign a bill that poses so great a threat to basic constitutional rights,” Roth said.

Many people might not know that quantitative equity research analyst and former hedge fund manager, Barry Ritholtz (author of Bailout Nation) is an alumnus of the Benjamin N. Cardozo School of Law in New York, where he served on the Law Review, and graduated Cum Laude with a 3.56 GPA.  Here are some of the recent comments made by Mr. Ritholtz concerning the National Defense Authorization Act:

While this is shocking, it is not occurring in a vacuum.  Indeed, it is part of a 30 year-long process of militarization inside our borders and a destruction of the American concepts of limited government and separation of powers.

*   *   *

Other Encroachments On Civil Rights Under Obama

As bad as Bush was, the truth is that, in many ways, freedom and constitutional rights are under attack even more than during the Bush years.

For example:

Obama has presided over the most draconian crackdown on leaks in our history – even more so than Nixon.

*   *   *

Furthermore – as hard as it is for Democrats to believe – the disinformation and propaganda campaigns launched by Bush have only increased under Obama.  See this and this.

And as I pointed out last year:

According to Department of Defense training manuals, protest is considered “low-level terrorism”.  And see this, this and this.

An FBI memo also labels peace protesters as “terrorists”.

At his blog, The Big Picture, Ritholtz made these points in a December 3 argument against the passage of this bill:

You might assume – in a vacuum – that this might be okay (even though it trashes the Constitution, the separation of military and police actions, and the division between internal and external affairs).

But it is dangerous in a climate where you can be labeled as or suspected of being a terrorist simply for questioning war, protesting anything, asking questions about pollution or about Wall Street shenanigans, supporting Ron Paul, being a libertarian, holding gold, or stocking up on more than 7 days of food.  And see this.

Once again, President Obama has breached a promise to his supporters out of fear that he could be embarrassed in a showdown with Congress.  Worse yet, Obama has acted to subvert the Constitutional right of Due Process simply because he wants to avoid the shame of a veto override.  As many commentators have observed, George W. Bush was not plagued by any such weakness and he went on to push a good number of controversial initiatives through Congress – most notably the Iraq War Resolution.  I find it surprising that so many of President Obama’s important decisions have been motivated by a fear of embarrassment, while at the same time he has exhibited no concern about exposing such timidity to both his allies and his opponents – wherever they may be.


 

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Hurricane Rick

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Be afraid.  Be very afraid.

In the aftermath of Hurricane Irene, there has been plenty of criticism directed at efforts by the media to amp-up the danger threat during the days before the storm made landfall.  Despite the fact that eleven people were killed by the hurricane, a wide assortment of commentators has seen fit to complain about the “hurricane hype”.  Here is a bit of what Howard Kurtz had to say at The Daily Beast:

But the tsunami of hype on this story was relentless, a Category 5 performance that was driven in large measure by ratings.  Every producer knew that to abandon the coverage even briefly – say, to cover the continued fighting in Libya – was to risk driving viewers elsewhere.  Websites, too, were running dramatic headlines even as it became apparent that the storm wasn’t as powerful as advertised.

The fact that New York, home to the nation’s top news outlets, was directly in the storm’s path clearly fed this story-on-steroids. Does anyone seriously believe the hurricane would have drawn the same level of coverage if it had been bearing down on, say, Ft. Lauderdale?

In fact, here in south Florida, we have become accustomed to the scare-mongering, which runs ahead of any tropical depression appearing west of the Cape Verde Islands.  Our local newscasters have an incentive to overstate the threat:  If they can scare the local politicians into ordering a mandatory evacuation – the story goes national and the networks provide some face time for the local correspondents.  At The Weather Channel, the incessant drumbeat warns:  Keep watching us or die!  I would be more than happy to cooperate if only they would feature Stephanie Abrams as often as they have Jim Cantore or Bryan Norcross on camera.

A similar fear-mongering strategy is becoming apparent in the Presidential campaign.  Before Rick Perry jumped into the race, disgruntled former Obama supporters saw the 2012 campaign as a choice between two nearly-indistinguishable corporatists.  With the ever-increasing likelihood that Rick Perry could become the Republican nominee, those ex-Obama fans are being constantly bombarded with reasons to be afraid  … be very afraid.  Are you going to just sit back and watch when President Perry declares war on Switzerland?

The most-frequently quoted observation about Rick Perry came from Bruce Bartlett, who served as deputy assistant secretary for economic policy at the Treasury Department, in the administration of President George H.W. Bush.  During a recent appearance on CNN’s American Morning, Bartlett remarked:

“Rick Perry is an idiot, and I don’t think anybody would disagree with that.”

At the Huffington Post, the fixation on Rick Perry’s intellectual limitations resulted in the publication of some information from the candidate’s college transcript:

A source in Texas passed The Huffington Post Perry’s transcripts from his years at Texas A&M University.  The future politician did not distinguish himself much in the classroom.  While he later became a student leader, he had to get out of academic probation to do so.  He rarely earned anything above a C in his courses — earning a C in U.S. History, a D in Shakespeare, and a D in the principles of economics.  Perry got a C in gym.

Perry also did poorly on classes within his animal science major. In fall semester 1970, he received a D in veterinary anatomy, a F in a second course on organic chemistry and a C in animal breeding.  He did get an A in world military systems and “Improv. of Learning” — his only two As while at A&M.

Josh Harkinson wrote an article for Mother Jones, recounting some episodes from Perry’s tenure as Governor of Texas.  In addition to discussing the infamous Trans-Texas Corridor fiasco, the essay provided these factoids:

In 2004, whistleblowers repeatedly informed Perry’s office that the Governor’s Texas Youth Commission hires and protects “known child abusers.”   His office ignored the warnings.  Three years later, the story broke that top officials with the TYC had learned of and done nothing to stop widespread child molestation at a juvenile detention facility in West Texas.

*   *   *

Last year, Perry called the BP oil spill an “act of God.”

*   *   *

Perry has accepted $1.2 million from Texas billionaire Harold Simmons, who is building a nuclear waste dump in West Texas over the objections of some of the state’s own environmental regulators.  In January, Texas’ Low-Level Radioactive Waste Disposal Compact Commission opened the door to allowing the dump to accept nuclear waste from around the country.  Six of of the commission’s seven members were appointed by Perry.

The passage from Harkinson’s article, striking fear into the hearts of Democrats, concerns a bit of history, which might repeat itself in the event that progressives should decide to support a third-party candidate:

Perry’s political associates, including top adviser Dave Carney, have been repeatedly accused of helping the Green Party qualify for the ballot in order to siphon votes away from Democratic candidates.

Could something similar happen in November of 2012?  Rick Perry is counting on it — and the media will incessantly remind you of that.

You’ve been warned!


 

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No Justice For The Wicked

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Although the drumbeat continues, I remain skeptical as to whether any of the criminals responsible for causing the financial crisis will ever be brought to justice.  In the weeks before President Obama’s Inauguration, the foremost question on my mind was whether the new administration would take the necessary steps to change the culture of corruption on Wall Street:

As we approach the eve of the Obama Administration’s first day, across America the new President’s supporters have visions of “change we can believe in” dancing in their heads.  For some, this change means the long overdue realization of health care reform.  For those active in the Democratic campaigns of 2006, “change” means an end to the Iraq war.  Many Americans are hoping that the new administration will crack down on the unregulated activities on Wall Street that helped bring about the current economic crisis.

On December 15, Stephen Labaton wrote an article for the New York Times, examining the recent failures of the Securities and Exchange Commission as well as the environment at the SEC that facilitates such breakdowns.

At that time, I also focused on the point made in a commentary by Michael Lewis and David Einhorn, which appeared in the January 3 New York Times:

It’s not hard to see why the S.E.C. behaves as it does.  If you work for the enforcement division of the S.E.C. you probably know in the back of your mind, and in the front too, that if you maintain good relations with Wall Street you might soon be paid huge sums of money to be employed by it.

I concluded that piece with a rhetorical question:

Let’s hope our new President, the Congress and others pay serious attention to what Lewis and Einhorn have said.  Cleaning up Wall Street is going to be a dirty job.  Will those responsible for accomplishing this task be up to doing it?

By March 23, 2009, it had become obvious that our new President was more concerned about the “welfare” (pun intended) of the Wall Street banks than the well-being of the American economy.  I began my posting of that date with this statement:

We the people, who voted for Barack Obama, are about to get ripped off by our favorite Hope dealer.

On August 27 of that year, I wrote another piece expressing my disappointment with how things had (not) progressed.  My October 1, 2009 posting focused on the fact that H. David Kotz, Inspector General of the Securities and Exchange Commission, issued two reports, recommending 58 changes to improve the way the agency investigates and enforces violations of securities laws, as a result of the SEC’s failure to investigate the Bernie Madoff Ponzi scheme.  The reports exposed a shocking degree of ineptitude at the SEC.

After the release of the report by bankruptcy examiner Anton Valukas, pinpointing the causes of the collapse of Lehman Brothers, I lamented the fact that the mainstream media hadn’t shown much concern about the matter, despite the terrible fraud exposed in the report.  Nevertheless, by the next day, I was able to highlight some great commentaries on the Valukas Report and I felt optimistic enough to conclude the piece with this thought:

We can only hope that a continued investigation into the Lehman scandal will result in a very bright light directed on those privileged plutocrats who consider themselves above the law.

If only  . . .

By the eve of the mid-term elections, I had an answer to the question I had posed on January 5, 2009 as to whether our new President and Congress would be up to the task of cleaning up Wall Street:

One common theme voiced by many critics of the Obama administration has been its lack of interest in prosecuting those responsible for causing the financial crisis.  Don’t hold your breath waiting for Attorney General Eric Hold-harmless to initiate any criminal proceedings against such noteworthy individuals as Countrywide’s Angelo Mozilo or Dick Fuld of Lehman Brothers.  On October 23, Frank Rich of The New York Times mentioned both of those individuals while lamenting the administration’s failure to prosecute the “financial crimes that devastated the nation”:

The Obama administration seems not to have a prosecutorial gene.   It’s shy about calling a fraud a fraud when it occurs in high finance.
*   *   *
Since Obama has neither aggressively pursued the crash’s con men nor compellingly explained how they gamed the system, he sometimes looks as if he’s fronting for the industry even if he’s not.

The special treatment afforded to the perpetrators of the frauds that helped create the financial crisis wasn’t the only gift to Wall Street from the Democratically-controlled White House, Senate and Congress.  The financial “reform” bill was so badly compromised (by the Administration and Senate Democrats, themselves) as it worked its way through the legislative process, that it is now commonly regarded as nothing more than a hoax.

By the close of 2010, I noted that an expanding number of commentators shared my outrage over the likelihood that we would never see any prosecutions result from the crimes that brought about the financial crisis:

A recent article written by former New York Mayor Ed Koch began with the grim observation that no criminal charges have been brought against any of the malefactors responsible for causing the financial crisis:

Looking back on 2010 and the Great Recession, I continue to be enraged by the lack of accountability for those who wrecked our economy and brought the U.S. to its knees.  The shocking truth is that those who did the damage are still in charge.  Many who ran Wall Street before and during the debacle are either still there making millions, if not billions, of dollars, or are in charge of our country’s economic policies which led to the debacle.

Most recently, Matt Taibbi has written another great article for Rolling Stone entitled, “Why Isn’t Wall Street in Jail?”.  It’s nice to know that the drumbeat for justice continues.  Taibbi’s essay provided a great history of the crisis, with a particular emphasis on how whistleblowers were ignored, just as Harry Markopolos was ignored when (in May of 2000) he tried to alert the SEC to the fact that Bernie Madoff’s hedge fund was a multi-billion-dollar Ponzi scheme.  Here is a great passage from Matt Taibbi’s essay:

In the past few years, the administration has allocated massive amounts of federal resources to catching wrongdoers — of a certain type.  Last year, the government deported 393,000 people, at a cost of $5 billion.  Since 2007, felony immigration prosecutions along the Mexican border have surged 77 percent; nonfelony prosecutions by 259 percent.  In Ohio last month, a single mother was caught lying about where she lived to put her kids into a better school district; the judge in the case tried to sentence her to 10 days in jail for fraud, declaring that letting her go free would “demean the seriousness” of the offenses.

So there you have it.  Illegal immigrants:  393,000.  Lying moms:  one.  Bankers:  zero.  The math makes sense only because the politics are so obvious.  You want to win elections, you bang on the jailable class. You build prisons and fill them with people for selling dime bags and stealing CD players.  But for stealing a billion dollars?  For fraud that puts a million people into foreclosure?  Pass.  It’s not a crime.  Prison is too harsh.  Get them to say they’re sorry, and move on.  Oh, wait — let’s not even make them say they’re sorry.  That’s too mean; let’s just give them a piece of paper with a government stamp on it, officially clearing them of the need to apologize, and make them pay a fine instead.  But don’t make them pay it out of their own pockets, and don’t ask them to give back the money they stole. In fact, let them profit from their collective crimes, to the tune of a record $135 billion in pay and benefits last year.  What’s next?  Taxpayer-funded massages for every Wall Street executive guilty of fraud?

Wouldn’t it be nice if public opinion meant more to the Obama administration than campaign contributions from Wall Street banksters?




Some Quick Takes On The Financial Crisis Inquiry Report

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The official Financial Crisis Inquiry Report by the Financial Crisis Inquiry Commission (FCIC) has become the subject of many turgid commentaries since its January 27 release date.  The Report itself is 633 pages long.  Nevertheless, if you hope to avoid all that reading by relying on reviews of the document, you could easily end up reading 633 pages of commentary about it.  By that point, you might be left with enough questions or curiosity to give up and actually read the whole, damned thing.  (Here it is.)  If you are content with reading the 14 pages of the Commission’s Conclusions, you can find those here.  What follows is my favorite passage from that section:

We conclude widespread failures in financial regulation and supervision proved devastating to the stability of the nation’s financial markets. The sentries were not at their posts, in no small part due to the widely accepted faith in the self-correcting nature of the markets and the ability of financial institutions to effectively police themselves.  More than 30 years of deregulation and reliance on self-regulation by financial institutions, championed by former Federal Reserve chairman Alan Greenspan and others, supported by successive administrations and Congresses, and actively pushed by the powerful financial industry at every turn, had stripped away key safeguards, which could have helped avoid catastrophe.  This approach had opened up gaps in oversight of critical areas with trillions of dollars at risk, such as the shadow banking system and over-the-counter derivatives markets.  In addition, the government permitted financial firms to pick their preferred regulators in what became a race to the weakest supervisor.

In order to help save you some time and trouble, I will provide you with a brief roadmap to some of the commentary that is readily available:

Gretchen Morgenson of The New York Times introduced her own 1,257-word discourse in this way:

For those who might find the report’s 633 pages a bit daunting for a weekend read, we offer a Cliffs Notes version.

Let’s begin with the Federal Reserve, the most powerful of financial regulators.  The report’s most important public service comes in its recitation of how top Fed officials, both in Washington and in New York, fiddled while the financial system smoldered and then burned.  It is disturbing indeed that this institution, defiantly inert and uninterested in reining in the mortgage mania, received even greater regulatory powers under the Dodd-Frank law that was supposed to reform our system.

(I find it disturbing that Ms. Morgenson is still fixated on “mortgage mania” as a cause of the crisis after having been upbraided by Barry Ritholtztwice – for “pushing the Fannie-Freddie CRA meme”.)

At her Naked Capitalism blog, Yves Smith focused more intently on what the FCIC Report didn’t say, as opposed to what it actually said:

The FCIC has also been unduly close-lipped about their criminal referrals, refusing to say how many they made or giving a high-level description of the type of activities they encouraged prosecutors to investigate.  By contrast, the Valukas report on the Lehman bankruptcy discussed in some detail whether it thought civil or criminal charges could be brought against Lehman CEO Richard Fuld and chief financial officers chiefs Chris O’Meara, Erin Callan and Ian I Lowitt, and accounting firm Ernst & Young.  If a report prepared in a private sector action can discuss liability and name names, why is the public not entitled to at least some general disclosure on possible criminal actions coming out of a taxpayer funded effort?  Or is it that the referrals were merely to burnish the image of the report, and are expected to die a speedy death?

At his Calculated Risk blog, Bill McBride corroborated one of the Report’s Conclusions, by recounting his own experience.  After quoting some of the language supporting the point that the crisis could have been avoided if the warning signs had not been ignored, due to the “pervasive permissiveness” at the Federal Reserve, McBride recalled a specific example:

This is absolutely correct.  In 2005 I was calling regulators and I was told they were very concerned – and several people told me confidentially that the political appointees were blocking all efforts to tighten standards – and one person told me “Greenspan is throwing his body in front of all efforts to tighten standards”.

The dissenting views that discount this willful lack of regulation are absurd and an embarrassment for the authors.

William Black wrote an essay criticizing the dissenters themselves – based on their experience in developing the climate of financial deregulation that facilitated the crisis:

The Commission is correct.  Absent the crisis was avoidable.  The scandal of the Republican commissioners’ apologia for their failed anti-regulatory policies was also avoidable.  The Republican Congressional leadership should have ensured that it did not appoint individuals who would be in the impossible position of judging themselves.  Even if the leadership failed to do so and proposed such appointments, the appointees to the Commission should have recognized the inherent conflict of interest and displayed the integrity to decline appointment.  There were many Republicans available with expertise in, for example, investigating elite white-collar criminals regardless of party affiliation.  That was the most relevant expertise needed on the Commission.

At this point, the important question is whether the efforts of the Financial Crisis Inquiry Commission will result in any changes that could help us avoid another disaster.  I’m not feeling too hopeful.


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Justice Denied

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A recent article written by former New York Mayor Ed Koch began with the grim observation that no criminal charges have been brought against any of the malefactors responsible for causing the financial crisis:

Looking back on 2010 and the Great Recession, I continue to be enraged by the lack of accountability for those who wrecked our economy and brought the U.S. to its knees.  The shocking truth is that those who did the damage are still in charge.  Many who ran Wall Street before and during the debacle are either still there making millions, if not billions, of dollars, or are in charge of our country’s economic policies which led to the debacle.

Most of us assumed that the Enron scandal had set a precedent for the prosecution of corporate financial crime.  A few Enron executives received prison sentences and the CEO, Ken Lay, died while serving time.  Enron’s auditor, Arthur Andersen & Company, was forced out of business.  In the wake of the Savings and Loan Crisis of the late 1980s, Charles Keating and a few of his associates were indicted by the State of California.  Keating eventually received a ten-year prison sentence for fraud, racketeering and conspiracy.  Keating’s prosecution resulted from pressure brought by William Black, former litigation director for the Federal Home Loan Bank Board.  At one point during Black’s investigation, Keating issued a written memo to one of his minions, with this directive:  “If you can’t get Wright and Congress to get Black . . .  Kill him dead.”

These days, William Black has been doing quite a bit of speaking and writing about the need to initiate criminal proceedings against the culprits responsible for causing the financial crisis.  On December 28, Black characterized the failure to prosecute those crimes as “de facto decriminalization of elite financial fraud”:

The FBI and the DOJ remain unlikely to prosecute the elite bank officers that ran the enormous “accounting control frauds” that drove the financial crisis.  While over 1000 elites were convicted of felonies arising from the savings and loan (S&L) debacle, there are no convictions of controlling officers of the large nonprime lenders.  The only indictment of controlling officers of a far smaller nonprime lender arose not from an investigation of the nonprime loans but rather from the lender’s alleged efforts to defraud the federal government’s TARP bailout program.

What has gone so catastrophically wrong with DOJ, and why has it continued so long?  The fundamental flaw is that DOJ’s senior leadership cannot conceive of elite bankers as criminals.

*   *   *

Our best bet is to continue to win the scholarly disputes and to continue to push media representatives to take fraud seriously. If the media demands for prosecution of the elite banking frauds expand there is a chance to create a bipartisan coalition in Congress and the administration supporting prosecutions.  In the S&L debacle, Representative Annunzio was one of the leading opponents of reregulation and leading supporters of Charles Keating.  After we brought several hundred successful prosecutions he began wearing a huge button:  “Jail the S&L Crooks!”  Bringing many hundreds of enforcement actions, civil suits, and prosecutions causes huge changes in the way a crisis is perceived.  It makes tens of thousands of documents detailing the frauds public.  It generates thousands of national and local news stories discussing the nature of the frauds and how wealthy the senior officers became through the frauds.  All of this increases the saliency of fraud and increases demands for serious reforms, adequate resources for the regulators and criminal justice bodies, and makes clear that elite fraud poses a severe danger.  Collectively, this creates the political space for real reform, vigorous regulators, and real prosecutors.

Hedge fund manager, David Einhorn (author of  Fooling Some of the People All of the Time) was recently interviewed by Charlie Rose.  At one point during the interview, Charlie Rose asked Einhorn to address the argument that regulators lacked the tools necessary for preventing the financial crisis.  Mr. Einhorn gave this response:

I would actually disagree with that.  I think that the problem was that the laws were not enforced.  After Enron you had Sarbanes Oxley.  And there have been hardly any prosecutions under Sarbanes Oxley.  You put in a tough anti-fraud law.  The CEO has to sign there is no fraud.

The CFO has to sign that the financial statements are correct.  If it’s not, there are going to be criminal consequences to all of this.  And the result was that effectively you passed a law but then they didn’t enforce the law.

And once the bad guys figured out that the law wasn’t being enforced, it effectively provided cover because everybody said, look we have the tough antifraud law.  The fraud must have gone away.

We often hear the expression “crime of the century” to describe some sensational act of blood lust.  Nevertheless, keep in mind that the financial crisis resulted from a massive fraud scheme, involving the packaging and “securitization” of mortgages known to be “liars’ loans”, which were then sold to unsuspecting investors by the creators of those products — who happened to be betting against the value of those items.  In consideration of the fact that the credit crisis resulting from this scam caused fifteen million people to lose their jobs as well as an expected 8 – 12 million foreclosures by 2012, one may easily conclude that this fraud scheme should be considered the crime of both the last century as well as the current century.

While many people have been getting excited about the “insider trading” investigation currently underway, I have been sitting here, wearing my tinfoil hat, viewing the entire episode as a diversionary tactic to direct public attention away from the crimes that caused the financial crisis.  Fortunately, I am not the only cynic with such an outlook.  Jesse Eisenger recently wrote a piece for the DealBook blog at The New York Times entitled, “The Feds Stage a Sideshow While the Big Tent Sits Empty”.  Here is some of what Eisenger had to say about the “insider trading” investigation:

In fact, plenty of people on Wall Street are happy about the investigation.  The ones with clean consciences like the idea that the world of special access to favorable tips is being cleaned up.

But others are pleased for a different reason:  They realize the investigation is a sideshow.

All the hype carries an air of defensiveness.  Everyone is wondering:  Where are the investigations related to the financial crisis?

John Hueston, a former lead Enron prosecutor, wonders, “Have they committed the resources in the right place?  Do these scandals warrant apparent national priority status?”

Nobody from Lehman, Merrill Lynch or Citigroup has been charged criminally with anything.  No top executives at Bear Stearns have been indicted.  All former American International Group executives are running free.  No big mortgage company executive has had to face the law.

There’s an old saying:  “Justice delayed is justice denied.”  The government has demonstrated that it is in no hurry to bring any significant criminal charges against the perpetrators of the crimes that caused the financial crisis.  With the passing of time, it becomes increasingly obvious that those crimes will go unpunished.  The cause of justice is simply no match for the ability of certain individuals to operate “above the law”.  In fact, it never has been.


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The Narrowing

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October 20, 2008

Halloween is less than two weeks away.  The theme of the perfect horror film for 2008 becomes increasingly apparent as I type this.  We can rely only on the YouTube medium to get this year’s best spooky thriller before the public in time.  Right now, the trees in our nation’s capitol are manifesting the multi-colored transition to autumn.  The time to shoot this movie is right now.  The time to get it before the public is right now.  The Narrowing has the potential to be the “fright film” of the decade.

The horror depicted in this movie is most troubling for the moderate Republicans.  On Sunday, October 19, millions of Americans watched former Secretary of State, Republican Colin Powell, a retired Army General, endorse Democratic nominee Barack Obama for the Presidency.  Among the reasons given by General Powell for his endorsement of Obama included what he described as “the narrowing” of the Republican Party during the course of this campaign.  On that same television program, NBC’s Meet The Press, conservative commentator David Brooks expressed his concern about “the narrowing” of the Republican Party throughout the current election cycle.  In his analysis of General Powell’s rationale for the Obama endorsement, Mr. Brooks said:

He (Powell) was attacking the Republican Party and the key word there was: “narrowing”.  The party is narrowing and leaving a lot of people out – people like Colin Powell.    . . .  They have to ask themselves:  “Why are we narrowing?”

*    *    *

A lot of people who were Republicans, feel like they have been left out  — not by McCain but by the party.  And if McCain has any blame, it is in the beginning of this campaign.  He didn’t say:  “I’m different.”  He didn’t break with the party.  He got sucked up (beautiful Freudian slip) – sucked in at least halfway into the orthodoxy of the party.  That’s narrowing.

As a movie, The Narrowing would feature mobs of “talk radio” – entranced people, wandering through the streets of our nation’s small towns and big cities.  There would be elderly men with racist-attired Curious George dolls.  They would speak with strange little voices, using the Curious George dolls as puppets to complain about how our nation’s public schools would be serving pigs’ feet and black-eyed peas to “red-blooded American children” for lunch.  The movie would depict elderly, white-trash women with “bed head”, repeating the rumor that Barack Obama is uncircumcised.  (It was actually Bill Maher who started this rumor.  In the movie, he would remind these women to include the aspect concerning the scent of curry.)  There would be pit bulls wearing lipstick with small “beehive wigs” and ersatz Kawasaki eyeglass frames, brought to animal shelters and veterinary emergency rooms after horrible maulings and other injuries.  These events would not have been caused from abuse by humans – but from attacks by irate Jack Russell Terriers and Border Collies.  Mobs carrying torches would be chasing after Peggy Noonan and Chris Buckley, yelling: “Traitor!”  John McCain would attempt to transform himself into “the old McCain of 2000” but it would be too late.

The film’s most scary moments would take place on Election Day.  Throngs of screaming people would be seen, running from polling places.  The Sarah Palin “wanna-bes” would show up to vote, not having washed their hairdos or having changed their clothes since Halloween.  The gasping exiles from the voting booths would complain of the overwhelming “homeless smell” carried into the polls by these over-ripe Palin impersonators.

At the conclusion of the film, the vanquished, moderate Republicans would be forced in retreat to the shelter of big cities such as New York, Chicago, Los Angeles and (gasp!) San Francisco.  They would form “cells” and organize plots to undo “the narrowing” and hopefully live to fight another day.

Meanwhile, here in “the real world”, The Narrowing is upon us.  It has become painfully obvious to the more astute members of the Republican Party and the conservative community.  If the GOP is to have a future, it must develop an immunosuppressive response to The Narrowing.