Time To Say Goodbye

In one of the best scenes in the movie Heat, Robert DeNiro tells Al Pacino: “Don’t let yourself get attached to anything you are not willing to walk out on in 30 seconds flat if you feel the heat around the corner.” And while the “heat” isn’t exactly on, I have come to the decision that it is time that I fold this little experiment in social and political punditry, at least temporarily.

That fact of the matter is that while initially a fun and intellectually stimulating hobby, Postcards has become a tremendous draw on my time. I find increasingly that I come home from 10 hour days of staring at a 17-inch computer monitor at an office only to trade it for another two or three hours at night and early the next morning staring at a 13-inch laptop.

Please don’t misunderstand me, it has been a labor of love, but it is a labor nonetheless. I’ve just come to the conclusion that these hours could be better spent elsewhere – exercise, for one, Mrs. Goldwater and the children for another. To use a tired cliché, I guess you could say I’m stepping down to spend more time with my family.

To all forty or so of you who have taken the time to stop by and comment over the past five months, you have my undying gratitude. Your input and comments have been truly inspiring.

But for now at least, it is time to say goodbye…

A Geek's Dream

If George Lucas had only written this into Episode I instead of Jar-Jar Binks:



ht: TigerHawk

Enough Already - Declare Franken Winner

Look, I'm not any more ecstatic about the prospect of a Senator Al Franken any more than most of the folks who peruse this site are. But the fact of the matter is that after all of the legal remedies were exhausted, Franken won. He won by the slimmest of margins, but he won nonetheless.

It is time for Norm Coleman to accept the hand dealt him, acknowledge his disastrous campaign, and move on.

The citizens of Minnesota deserve it. Boy, do they deserve it.

US Ready To Ease Preconditions On Iran

The US is set to drop a key precondition for continued nuclear negotiations with Iran, Obama Administration officials are hinting. The US has long insisted that it will not conduct diplomatic discussions with Iran unless Tehran shuts down its nuclear facilities during the early stages of discussions.

With Tehran recently announcing that it has installed 7,000 centrifuges in its Natanz uranium enrichment facility, the precondition would appear to be without teeth anyway.

As the Administration debuts its new-sheriff-in-town routine with Western Europe and Turkey, Tehran and Pyongyang continue work on their nuclear ambitions unimpressed. As years of useless UN sanctions and resolutions will attest, carrot-and-stick diplomacy won’t go very far. And if we are not willing or unable to go on the offensive, we may at least want to reconsider our position on the defensive…

Jailhouse Rock

Not the kind of publicity I think the President is going for. Perhaps he's looking for one of them there presidential pardons...

A Candle In The Wind…

OK, I probably should have ended my posting for the day with the Harry Kalas obit, but news today of the passing of another legend of sorts – adult film star Marilyn Chambers.

If there was ever a starlet to capture the euphoric highs and monotonous lows of pornogra…oh forget it, just read the news here.

Heeeeeeeeeeeee’s Outta Here!

There. I said it. I couldn’t think of a more appropriate lead-in than that. Harry Kalas, a legend in Philadelphia sports broadcasting for over four decades, has died today at the age of 73. Reports are that Kalas collapsed in the broadcast booth before the start of the Phillies game in Washington, DC earlier this afternoon.

If there was ever a voice to capture the euphoric highs and monotonous lows of the game of baseball, Harry Kalas’ baritone was it. Together with former Phillie Richie Ashburn, the pair called Phillies games for both radio and television broadcasts throughout the 70’s, 80s, and most of the 90s, ending only with Ashburn’s death in 1997. Kalas continued to broadcast with other commentators following Ashburn’s death, culminating with his dramatic call of the Phillies World Championship in October of last year. I’m glad he got to see his beloved team reach that pinnacle, and share in the city’s pride during the ensuing celebration.

For many, including me, Harry Kalas was Philadelphia baseball, but he was so much more. The sound of his voice year after year was a soothing reminder of the hope and promise the start of each season brought after a cold and dreary Philadelphia winter.

Now his absence will only remind me of the passage of time.

WSJ On Private v. Public Health Insurance

The Wall Street Journal editors have posted a rather ominous-sounding editorial on their site: The End of Private Health Insurance. The opinion that follows is as sobering; namely, that this middle class entitlement will neither encourage competition nor ultimately allow the public to choose how they receive health care services.

If You Vilify Them, They Will Leave…

The New York Times puts a curious spin on the current trend of mega bankers leaving the confines of their Wall Street palaces (by force or otherwise) for the greener pastures of smaller investment houses. The reasons, the Times asserts, vary: joining banks that do not face tightening regulations, including foreign banks; opting to go with start-up companies with the potential for a future payout; or, leaving simply because of culture clashes at merging companies.

One other possible explanation - how about that these guys simply looked across the street at the AIG building and the witch hunts their financial counterparts were subjected to over compensation and said, “Not me”.

But some feel this exodus is a good thing; that this marks the beginning of a “broad and necessary” reshaping of Wall Street. “If risk-taking spreads out to these smaller institutions, it is no longer a systematic threat,” says Matthew Richardson, professor of economics at New York University.

Huh? But I thought that the current financial conflagration occurred because the toxic assets of the big guys were whacked up, bundled and repackaged to the smaller guys. It became a systematic threat when the smaller institutions assumed this risk. I'm not sure how hiring on some of the braintrust that made some bad decisions on Wall Street will reduce this risk on Main Street.

Check...matey!

Arrghh!! Somali pirates have raised the stakes in their continuing game of high seas chicken, this time seizing an Italian tugboat with sixteen Italian crewmen on board. Earlier, French commandos stormed a sailboat held by different Somali bandits, freeing four captives. However, one captive died in the operation. Gotta admire the French for trying though; hope similar operations are on the drawing board over on the American side.

The Obama team is said to be continually monitoring the situation and weighing options in between bites of their deep dish pizzas.

I'll leave the planning to the professionals, but is it unrealistic to send a group of Navy frogmen in under the cover of night to cause slow leaks in the lifeboat? You can't plug leaks and guard a captain at the same time...

Update:
Checkmate, matey! - Of course, Navy SEALs snipers under the cover of night are also effective. Good call by the President to authorize it and God bless the US Navy for carrying it out.

Saturday Morning Blogroll

What others from around the blogosphere were saying this week...

CENTER LEFT:
Crooked Timber - a remedy to counter conservative Supreme Court decisions...
Donkeylicious - the solution to social security? Bring in more immigrants!...
Huffington Post - in defense of Harold Koh...
Glenn Greenwald - Noting contradictions between candidate Obama and President Obama on habeas corpus...
Anonymous Liberal - Reconsidering the Geithner plan...

CENTER RIGHT:
Exurban League - Obama reaches out to "moderate" pirate community...
Argghhh!! - One experience with life under a national health care system...
Keith Hennessey - Does the President's budget cut the deficit in half?
Neo Neocon - Mistaking America's arrogance for Obama's?
RedState - The New York Times: doomed and deservedly so?...

Giving Polar Bears Their Due Process

The Washington Times is reporting that new global warming legislation under construction in Congress contains (at the moment, anyway) a provision allowing global warming victims to sue the federal government for damages stemming from government or corporate inaction on climate change.

The Trial Lawyers Association has voiced opposition against the measure, saying they are “just too darn busy” litigating pharmaceutical and tobacco product liability cases.

Hillary To Sell Bill To Pay Debt

So many ways to go with this one...

Barney Diplomacy

Apparently, strong foreign policy will not be a hallmark of the Obama Administration, so says Sen. Chuck Schumer:



Then again, strong foreign policy is sooo 1980’s.

ht: Townhall

Obama And War Funding

In a letter to Speaker Nancy Pelosi, President Obama framed his request for an additional $83.4 billion in funds for Afghanistan along familiar themes: “the Taliban is resurgent and al Qaeda threatens America (emphasis mine) from its safe haven along the Afghan-Pakistan border.”

It will be interesting to watch this drama unfold. Not only from the standpoint of watching Pelosi and her gang of thugs twist and contort at the thought of providing additional war funding, but also for the reaction of congressional republicans who slogged it out with President Bush during similar funding battles. I agree with the President on this issue, and hope republicans of similar mind will stand with Obama as well.

But one teensy wrinkle I think the administration may need to reconcile – do you recall the stink raised by democrats (including Obama himself) concerning the “imminent threat” justification they claimed Bush used for the invasion of Iraq? If we are to hold President Obama to the same standard, does Afghanistan pass this muster? If the Office of Homeland Security is to be believed, the answer is no. “We maintain there is no credible information to suggest there’s an imminent threat against the homeland at this time”, according to an agency statement released in November 2008.

So if al Qaeda’s danger isn’t imminent (and by extension, Afghanistan’s), why all the fuss?

Pirate Plot Thickens…

Somali pirates holding a freighter captain hostage are receiving reinforcements by way of other pirated ships rushing to the scene with a cargo of human shields of their own. This, as the USS Bainbridge surrounds the drifting lifeboat in an attempt to force the bandits to give up the standoff.

General Petraeus has indicated that other US warships will be arriving on the scene shortly, including the guided missile frigate USS Halyburton. Halyburton?! I knew Dick Cheney’s bloody hands were all over this somehow!!

Rebuilding The Brand

But reconnecting with a younger generation of voters doesn’t mean conservatives should attempt to emulate Britain’s Conservative Party, writes Kimberly Strassel in today's Wall Street Journal.

In fact, what’s happening in Britain should seem vaguely familiar, albeit with the roles reversed…

And 41% Think Communism's Bitchin'...

When Barack Obama was elected last November, I chalked it up to an electorate that was: battle weary after seven years of fighting a war on terror; frustrated with eight years of Republican management (or mismanagement as it were) of the executive office; and, frightened at the sight of their life savings and other investments evaporate overnight. But I was comforted somewhat by the thought that democrats, emboldened with a spark of political relevancy, would inevitably overextend themselves leading to swift retribution at the ballot box.

I still think the former will occur; however, after reading the results of this Rasmussen poll, I'm not sure of any short-term political ramifications benefiting republicans. The phone survey found that 53% of adult respondents believe capitalism is better than socialism, with a quarter apparently not being able to tell the difference between the two.

Perhaps more alarming for the Republican Party, only 37% of those surveyed under the age of 30 years old prefer capitalism - almost evenly divided among those who are BFF's with socialism (33%) and those who couldn't focus their attentions away from the Xbox long enough to venture an opinion (30%).

As we saw in the election, Obama was able to connect with this voting segment in a manner that made republicans seem stale and out of touch. This survey would seem to further that notion - and signal to the GOP that it has its work cut out for it in terms of outreach programs to the younger generation of voters.

Behind The Numbers

Philip Klein of the American Spectator presents a fairly detailed breakdown of the 46 million uninsured Americans number that is used as the rallying cry by proponents of universal health coverage.

Being that we may have over $600 billion for health care reform on the line, I think additional due diligence on this number would be helpful.

Update:
Came across this op ed piece from Ramesh Ponnuru (National Review) in this morning's New York Times. His hook - universal health shouldn't be the goal of health care reform; more affordable and portable health care should.

Update, Part II:
Keith Hennessey weighs in on the 46million figure as well...

Yes We Can Go Broke Together!

The New York Times this morning is reporting that the Obama Administration is encouraging banks and other large investment houses to create bond instruments very similar to the war bonds sold in both World Wars; but these Bailout Bonds will be used instead to assist in the bailout of the financial industry. I thought bailout bonds are what you posted when your Uncle Manny got in trouble for talking to those painted ladies by the bridge?

Anyway, the conventional wisdom here is that banks will create these instruments, or funds, that will buy up other banks’ troubled assets. It is assumed that the bond holder will eventually profit once the funds sell the investments for a profit. Also built into this assumption is that these legacy assets are worth more than currently valued. If the opposite holds true, there are considerable risks for investors.

I’m having a hard time understanding how this Ponzi scheme differs from the one that got us into trouble the first time.

Mortgage Woes Continue

Two recent articles on the nation’s mortgage industry would appear to confirm that we haven’t quite hit bottom in this sector of the economy yet.

This one, from Reuters, reports that seven percent of homeowners with mortgages were at least 30 days late on their loans in February. While on its face this statistic may not appear all that concerning, it represents an increase of 50% from the same period a year earlier. What is perhaps more troubling is the fact that this delinquency rate represents “prime” loans, where the borrowers ostensibly are more “creditworthy”. Additionally, almost 40% of subprime borrowers were at least 30 days delinquent, up from 24% from the same period a year earlier.

But the $95 billion we’ve spent on loan modifications helped, right? Er, maybe. This second article notes that when loan contracts were actually modified under government-sponsored loan modification plans, just 37% of these loans reduced the monthly payment by more than 10%. And even when monthly payments were reduced by 10% or more, just under a quarter of these loans became seriously delinquent after six months.

I guess the "good" news in all of this is that at least there appears to be plenty of apartment space available...

Winning Hearts And Minds

Shouldn’t this be working the other way? Shouldn’t a US congressional delegation meeting with a Marxist dictator with a history of brutal suppression of his nation’s citizenry be extolling the virtues of capitalism, free market and democratic reforms instead of the other way around?

“What really surprised me, but also endeared me to him, was his keen sense of humor, his sense of history and his basic human qualities,” said Representative Bobby Rush (D-IL). Oh brother. No doubt this would come as a surprise to Cuban ex-pats currently living in the US and the countless thousands of their friends and relatives who suffered and died as a result of Castro’s “qualities”.

He’s a charmer, that Fidel…

At Least The K-Car Had Pinstripes...

This is what we've been sinking billions into GM for??

Unveiled as a joint venture between General Motors and Segway (you know, the folks who make those intimidating mall security cruisers), the new PUMA (Personal Urban Mobility and Accessibility) can carry two passengers and travel up to 35 miles on one charge of its lithium-ion battery.

No word yet on whether genuine Corinthian leather will be optional on future versions.

Israel Tests Missile Defense

While President Obama may believe that investment in "unproven" missile defense systems is money not well-spent, the nation of Israel feels a bit differently. Yesterday, Israel successfully tested a missile defense system designed to protect it from Iranian attack. In remarks before Israel's parliament last week, Prime Minister Benjamin Netanyahu alluded to a nuclear-capable Iran as the biggest threat to his nation's security.

But It Was Kobe Beef, Your Honor...

Whew... the ranks of eligible candidates for "Father of the Year" were thinned by at least one yesterday with the onset of proceedings against one Marcelino de Jesus Martinez of Salinas, CA. Martinez is accused of selling his 14 year-old daughter into marriage for $16,000, beer and meat.

Police were tipped off to the dowry contract only after Martinez went to authorities to get his daughter back because payment wasn't made.

VT Legalizes Gay Marriage

The Vermont legislature narrowly achieved an override of a gubernatorial veto on gay marriage yesterday, becoming the fourth state to legalize such unions and the first to do so through the legislative process.

Through the legislative process....those are four key words. Admittedly, while my own feelings on this issue are mixed and continue to evolve, I applaud the people of Vermont for using the legislature rather than overreaching judges to enact this change.

Gates: Less Is More

Perhaps bowing to current economic realities, the technological sophistication of current and imagined foes or a little of both, Defense Secretary Robert Gates outlined a new defense mantra in the Era of Obama: less is more.

The plan doesn’t necessarily represent a cut in defense spending per se; but rather, a shift on how these funds are currently spent. Gone are the days of laser beams on friggin’ sharks, replaced by lower-level insurgent targeting and surveillance systems.

Admittedly, national defense is not my bailiwick. You want a treatise on SpongeBob or some other piece of pop fluff, I’m your guy. But even based on a cursory review of Gates’ remarks, I would be inclined to agree with him. I just hope that the Administration (and by extension, the Pentagon) retains some sort of R&D budget large enough to continue the research into 22nd Century weapons systems. I’m not sure the US would have been able to strike with such surgical precision as it has in the last few conflicts had it not been for decades of research and development. The same goes for our mastery of the seas – part of our Navy’s success can be directly attributed to the technology and equipment that have enabled it to mobilize and deploy on literally a moment’s notice.

And besides, laser beams on sharks would be kind of cool.

He Is Human, After All...

I haven’t seen too much mainstream media coverage of Obama’s latest presidential gaffe, but apparently the President mistakenly referred to the native language of Austria as Austrian when it is actually German. The misstep occurred during a news conference, when asked by a European reporter what the President learned from European leaders during his recent trip. Obama’s response:

It's an interesting question. I had already formed relationships with many of them. ... There's a lot of -- I don't know what the term is in Austrian -- wheeling and dealing -- and, you know, people are pursuing their interests, and everybody has their own particular issues and their own particular politics.

I suppose it could have been worse…

Let's See If A Cat Could Do This...

Sophie Tucker, a pet dog who fell overboard in rough seas off the coast of Australia and survived for four months alone on an island, has been reunited with her owners.

The Obama TARP Pits

Why is the Obama Administration resisting efforts by some banks to return TARP funds? Fox Business Channel’s Stuart Varney thinks he know why…

The Financial Times has another view - the banks are going to need to find the money from somewhere in order to buy up all of those toxic assets...

Rocket Man

On Saturday, North Korea once again defied international condemnation and went ahead with its planned launch of a communications satellite *cough* long-range missile *cough*. For his part, President Obama was quick with a response. “North Korea broke the rules, once again, by testing a rocket that could be used for long-range missiles,” Obama said during an address in Prague. Give 'em Hell, Barack!

Despite the President’s forceful rhetoric, it appears that little, if anything will actually be done by the international community aside from the usual pointed but ineffective UN resolutions. As Obama stated, this isn’t the first time Pyongyang has flouted international law; and it can reasonably expect to continue to do so, so long as China and Russia run interference in the UN.

The North Koreans are starving, broke, and have nothing to lose – it’s hard to negotiate with a position like that, just ask former Presidents Bush and Clinton.

Hard Times For Harvard

Even hallowed Harvard University isn’t immune to the ravages of economic recession. The school has announced that it plans to cut capital spending by as much as half after its $36.9 billion endowment lost as much as $8 billion in the last quarter of 2008 alone.

The spending cuts are expected to impact Harvard Medical School, as well as the planned Harvard Stem Cell Institute, which broke ground early last year in the city’s Allston section.

Apparently, Harvard’s research on growing stem cells into money hasn’t panned out as they initially hoped.

NATO: We’re Behind American Troops (Waaaaay Behind Them)

Despite President Obama’s attempts to paint the daunting effort ahead for his Overseas Contingency Operation at the 60th anniversary meeting of NATO earlier this week, it seems that old Europe simply isn’t buying it.

The 5,000 additional forces NATO members did manage to pledge will be divided among 3,000 short-term deployment troops, and 1,500 – 2,000 members of the French Surrender Brigade. I’m sorry, that was a knee-jerk reaction – 1,500 – 2,000 training and technical personnel for the Afghanistan police and military force.

I just hope Obama's groveling before the feet of Europe will have a payoff at some point.

Feet Of Clay, Tongue Of Pitchfork

Financial disclosure forms released by the White House yesterday (yesterday!) indicate that Lawrence Summers, one of President Obama's top economic advisers was paid approximately $5.2 million by the hedge fund D.E. Shaw in 2008.

What's all this again about "my administration is the only thing between you and the pitchforks"?

Chavez On Capitalism

Venezuelan strongman Hugo Chavez told that nation's state television that the G20's attempts to regulate the global financial meltdown were "impossible", and that capitalism needs to fail. "It is impossible that capitalism can regulate the monster that is the world financial system. Capitalism needs to go down, and we must take a transitional road to a new model that we call socialism."

Hmm....rampant inflation, shortages of basic staples and increasing political isolation - I think I'll take my chances with capitalism. But that's not to say that Obamanomics won't have us there soon enough...

He Said It, Not Me!

Russian President Dmitry Medvedev hailed President Barack Obama as "my new comrade" after their first face-to-face meeting on Thursday.

I had a feeling those two nutty kids would hit it off...

Saturday Morning Blogroll

What others from around the blogosphere were saying this week...

CENTER LEFT

Huffington Post - GOP defends Sanford, others, for taking stimulus money...
Glenn Greenwald - Endless right-wing self pity...
Truthdig.com - Putting the "care" in health care...
The Confluence - Commentary on Pat Oliphant's recent controversial cartoon...
Matt Yglesias - Dropping Mark-to-Market is a bad idea...

CENTER RIGHT

Sistertoldjah - Are we moving to 1932, or further back in time?...
The Volokh Conspiracy - Gay marriage in the heartland...
Patterico's Pontifications - What E.J. Dionne could learn from Penn Jillette...
Vodkapundit - The New York Times endorses...Nazinomics
Professor Bainbridge - Whatever Obamanomics is, it isn't capitalism...

Truing Up “Hope”

Stanford economist Michael Boskin is not a fan of the Obama budget. In this morning’s Wall Street Journal, Boskin writes:

But what is not just worrisome but dangerous are the growing trillion dollar deficits in the latter years of the Obama budget. These deficits are so large for a prosperous nation in peacetime -- three times safe levels -- that they would cause the debt burden to soar toward banana republic levels. That's a recipe for a permanent drag on growth and serious pressure on the Federal Reserve to inflate, not the new era of rising prosperity that Mr. Obama and his advisers foresee.

Stagflation - sounds like the 70’s all over again. Read the whole thing here.

Maybe They Come For The Hospital Food

The organization Integrated Care Collaboration (ICC), a nonprofit group of health care providers for low-income and uninsured patients in Texas, has released a report claiming that nine people accounted for over 2,600 hospital emergency room visits in the Austin, TX area alone over a six year period. The ICC estimates these visits cost over $3 million, and project this cost upward to over hundreds of millions of dollars nationwide. The group’s fix? Technology – the ICC believes an automated system to identify patients who abuse the system will save time, money and resources.

Two things about this report aren’t sitting well with me. The first is the statistic – nine people accounting for over 2,600 ER visits – my Spidersense usually starts to tingle when I see a figure like that, as more often than not it’s indicative of fraud. I wouldn’t be surprised if this proves to be the case once the details behind the numbers are examined. The second, the notion that technology, or universal access or any of the other big government approaches to health care currently bandied about by the administration will lower the cost of medical care. In this regard, there are few options available: reducing the amount of care provided or reducing the amount paid for care – neither of which I feel would be satisfied by the system proposed by the ICC. Ultimately, those patients would still need to be seen and treated, the costs of which would need to be picked up somewhere downstream.

Schools Receive First Hits Of Stimulus Smack

The nation’s schools have begun receiving the first wave of supplemental funding under President Obama’s Economic Stimulus Program. The $44 billion dollar infusion will go ostensibly toward saving teachers’ jobs, although the administration has not been shy about its intent to use federal money and power to “transform” public education.

“This is a historic opportunity, a once-in-a-lifetime opportunity, to lay the groundwork for a generation of education reforms,” said Obama’s Education Secretary Arne Duncan. If we are truly "laying the groundwork", it stands to reason then that this “once-in-a-lifetime” stimulus bump received by Big Education will be anything but.

One can only imagine how tomorrow’s youth will be able to repay Uncle Sam for this historic opportunity.

Oh that’s right, MoveOn.org already has:

Meltdown At The G20

Protesters turned violent yesterday in demonstrations coinciding with the start of the G20 Summit.

British police suspect many of the rabble to be professional protesters – anarchists from Italy and France, mixing with the disenchanted crowds. The report mentions the protesters included environmentalists, anarchists, anti-war folks and workers demanding action from world leaders. Just how much more “action” they require of their respective governments beyond going into hock to pay for massive stimulus and spending programs is unclear.

Clare Smith, a member of G20 Meltdown and a 27 year-old post graduate anthropology student, played a giant game of Monopoly inside Paternoster Square as her chosen method of protest. “This is a parody of what’s going on inside the building,” Smith said. “Meanwhile, the poor are getting poorer and that has even started to show in this country.”

Admittedly, the idea of protesting a government that spends piles of money it doesn’t have to underwrite a lifestyle that allows a 27 year-old anthropology student to play Monopoly is a bit vexing to me.

Who is to blame then? A lot of ink has been devoted to this subject, but I think economists Steven Horowitz and Charles Dana sum it up nicely:

Before talking about how we did get here, let me say a quick word about what didn’t cause this mess. Those who wish to blame greed for the crisis need to explain how and why it is that greed seems to causes crises only at specific times, despite the fact that it is omnipresent as a feature of human nature and market economies. As the economist Larry White has noted, if we saw a bunch of planes crash all on the same day, we wouldn’t blame gravity. It’s always there. Something else must be at work. I would argue that the key is the set of institutions through which greed or self-interest is channeled. That is, good institutions can cause self-interest to generate desirable unintended consequences, and bad ones can cause undesirable ones. So perhaps we should be looking at institutions and policy.

The full text of their work can be read here.

Ignorance Is Strength

Does anyone else notice the creepy similarities between Treasury Secretary Geithner's picture featured on Drudge this morning and a certain computer commercial based on a classic dystopian novel?

Sec. Geithner tells CBS News that GM's Wagoner may not be the last CEO shown the door by the administration.

Used Car Salesman-In-Chief

Would you buy a car from a guy who says, “Starting today, the United States government will stand by your warranty”? Neither would I, but that’s the new pitch at Honest Barry’s Used Car Emporium.

But just don’t look too closely at that U-S of A certified warranty if you currently own a GM car or truck prior to the effective date of the Warranty Commitment Program, as it doesn’t cover current warranties or safety recalls.

Ah, remember the days of the K-car?

One World Is Enough…

Dr. Nina Federoff, a scientist and advisor to former Secretary of State Condoleezza Rice and current Secretary Hillary Clinton, told the BBC program “One Planet” that there are already too many people living on planet Earth. “We need to continue to decrease the growth rate of the global population,” said Dr. Federoff, “the planet can’t support too many more people.”

I disagree with Dr. Federoff's assessment. I think the planet is more than capable of supporting the current population and then some. However, I do feel the global population may be unable to support itself in a few decades if current birth rate trends continue. As Dr. Federoff points out, the global population growth rate is already decreasing. And as the birth rates in industrialized European nations continue to decrease (as are those of developing countries, though just not at equal rates) and the current population ages and consumes more and more government resources, many national economies will be pushed to the brink if not over the edge.

We’ve already begun loading the chambers in this game of economic Russian Roulette, and so far, Germany’s Chancellor Angela Merkel seems to be one of the few leaders sane enough to try to push her country away from the table.

My New Favorite Blog

Sorry CW, you’re so 2008. Yuval Levin over at National Review recommended a new blog created by Keith Hennessey. Hennessey was an economic advisor to President George W. Bush, and ran the President’s National Economic Council in 2008.

Hennessey fills the knowledge gap of current economic issues and policy decisions with incredible detail from a firsthand perspective. Be forewarned - his posts are not the snarky mind candy you find on this site. His narrative is purposely long but it is worth the read.

If you have a couple of hours to kill this morning, pour a cup of coffee (or two) and enjoy.

Light At The End Of The Tunnel?

The Consumer Confidence Index held steady at 26.0 in March, up a tick from its 25.3 reading in February. The positive increase followed three consecutive months of declines, but economists remained dour as they had expected a CCI of 28 for the month.

Is the worst over? It depends on who you ask. I think the economic freefall that has gripped the American psyche over the last six months may be waning, and that we may well indeed be “bottoming out”. But that is not to say that good times are necessarily ahead. My feeling is that Americans have digested about as much apocalyptic gloom and doom as they can, have assessed their particular situation and have come to the conclusion that they’ll survive – that they have indeed survived. Perhaps a little poorer for the experience, but definitely a little wiser.

Navel Gazer Of The Day…

If a drunk never leaves his stool, is it drunk driving? This is not a philosophical dilemma analogous to the tree-in-the-woods question, this is an actual case in which Ohio authorities have charged a man with drunken driving where, after responding to a call of a crash, officers found 28 year-old Kile Wygle amid the wreckage of a motorized bar stool powered by a deconstructed lawnmower engine. Wygle later admitted to the officers that he had consumed 15 beers before getting behind the bar of his bar stool. The young man has pleaded not guilty and has requested a jury trial.

Fight the power.

In The Belly Of The Beast

I found this link over at TigerHawk– it’s a blog entry written by an executive (or soon to be former executive) at AIG. He is (was) a member of the support team, responsible for making sure all of the technical pieces ran smoothly.

Whatever your feelings are of the whole AIG bonus debacle, you should take a few minutes to read through this – it’s worth it.

With Critics Like These…

It turns out that the five questioners chosen randomly by President Obama in the East Room during his White House town hall meeting last Thursday were actually campaign backers. Of course, the Post is quick to point out that the practice is hardly new – Bush engaged in such town hall chicanery – but it does appear to water down Obama’s lofty rhetoric about engaging one’s critics: “I think it’s important to engage your critics…because not only will you occasionally change their mind but, more importantly, sometimes they will change your mind.”

And if you happen to share one mind, all the easier…

Wagoner Out At GM

Perhaps as a harbinger of things to come, GM CEO Rick Wagoner has agreed to step down at GM at the behest of the Obama Administration.

Those of you who still feel the right is hyperventilating conspiracy theories about the administration’s intent to nationalize large swatches of US industry may want to re-read that last sentence…

ShamWow Guy Busted

Vince Shlomi, the pitchman for TV's ShamWow and other useful household gadgets, was arrested last month in Miami's South Beach following a violent confrontation with a prostitute in his hotel room.

I guess she didn't like his nuts...

Saturday Morning Blogroll

What others from around the blogosphere were saying this week...

CENTER LEFT

Crooked Timber: The Totalitarian Temptation and all that...
Brad DeLong: J.M. Keynes comments on the current crisis...
Ezra Klein: Don't trust the regulators...
Firedoglake: Reaction to President Obama's Af-Pak speech...
Huffington Post: Reid: Justice Roberts lied to us...

CENTER RIGHT

Argghhh!: The new White House Afstan/Pakistan policy...
Back Talk: The enigma of US opinion on the death penalty as a deterrent...
Michael Barone: Obama's Cap-and-Trade will meet stiff resistance...
The Elephant Bar: Obama and Geithner worry the Czechs and the EU...
Counterterrorism Blog: Pakistan will be key factor in Af-Pak strategy...

Southpark Explains It All

This clip of Stan becoming privy to the inner workings of the Treasury bailout program makes more sense than any of the explanations I've heard from Geithner to date...



WARNING: Cartoon violence

HT:Calculated Risk

Nice Work If You Can Get It

I’m not one to begrudge anyone from using their talents to make a lot of money, and I certainly don’t buy into the public witch hunt over the AIG bonuses, but I can’t help thinking a bit of a double standard is at play here after reading this story on Rahm Emanuel’s payout after his brief stint with Freddie Mac.

Emanuel served on the board of the failed mortgage giant Freddie Mac for fourteen months after his appointment in 2000 by then-President Bill Clinton. If the facts of the article are valid, the board met no more than six times a year, and Emanuel was not assigned to any of the board’s working committees. For his service, Emanuel received a $20,000 annual fee along with $380,000 in stock and options. Not a bad return on investment.

So while Jake DeSantis and other AIG executives are publicly flogged for accepting bonus payouts, Emanuel skirts by scrutiny. I think Emanuel will prove to be more a liability than asset for President Obama, and the President might want to consider developing an Emanuel exit strategy of his own.

Paying For The Bullet That Kills You

Speaking before reporters yesterday, National Intelligence Director Dennis Blair confirmed that the Administration not only intends to release some of the enemy combatants currently housed in Gitmo by the end of the year, but also that the US will provide assistance to allow them to return to society. That’s a return to society – in the US.

“You just can’t put them on the street,” said Blair. I agree, why not put them on a C130 and fly them back to their countries of origin along with note pinned to their chest thanking them for providing the CIA with intelligence on their brethren’s location and movements.

Or better yet, why not make them community activists?

White Men Can’t Save

The President of Brazil is certainly taking an interesting position in this whole global financial crisis. Instead of following the “Blame Bush” crowd, Luiz Inacio da Silva believes the crisis “was caused by the irrational behavior of white people with blue eyes, who before the crisis appeared to know everything and now demonstrate they know nothing.”

Sort of like the voters in Brazil…

Blue Dog Hunting

It seems MoveOn and Americans United for Change have taken out ads seeking to pressure moderate or so-called “Blue Dog” democrats to…well I guess in this case roll over for the President on his budget initiatives. MoveOn Executive Director Justin Ruben explains, “Our ads ensure the voices of our 5 million members and the millions of other Americans who support this budget can be heard over the army of lobbyists.” To which army of lobbyists do you think he refers – MoveOn and its “5 million members” or the army of lobbyists working for the Obama Administration – the article doesn’t make it too clear.

My suspicion is these dogs are going to start howling once things start to heat up over the spring when the promised economic growth doesn’t quite tie out to Administration forecasts.

Bad Money After Bad…

Assemble a team with zero to no experience in the automotive industry and charge them with restructuring the nation’s flailing auto industry and what do you get? After meeting for just over a month, Obama’s task force on the auto industry is expected to release its findings that Chrysler and GM futures are viable, provided that these companies’ management, labor unions and bond holders all make sacrifices. Oh yes, this and they’re willing to lend an additional $22 billion of taxpayer dollars to ensure this viability.

Why don’t we just lock a room full of monkeys in a room with flip charts and lap tops and let them have at it – we could have saved on salaries, and they’re likely to come back with more salient positions than these guys. Oops, sorry, not allowed to say that…

Volker To Lead Tax-Code Overhaul

President Obama has tapped former Fed Chairman Paul Volker to head a commission charged with reviewing and making recommendations on “simplifying” the nation’s Byzantine tax-code.

Every President I can remember assembles one of these “blue ribbon” panels early in his administration, who then go away for six months and come back with a phonebook size report of policy recommendations, many of which wind up in the President’s circular file. I will be curious to see if this panel’s work follows this same path. The tax-code is in definite need of an overhaul, but I would have preferred it have been overseen by a President less likely to use taxation as a punitive weapon, or as a means to “level the playing field”.

Moe, Larry, The Cheese

I realize this story may wind up being nothing more than a silly rumor, but it’s too tempting to resist. From La-La-Land comes news that MGM and the Farrelly brothers (Dumb and Dumber) are teaming up for a full-length feature update of the classic “Three Stooges” comedy shorts.

Rumored casting for the lead roles includes Jim Carrey as Curly (I would have preferred Michael Moore), Benicio del Toro as Moe and none other than the right’s favorite Stooge Sean Penn as Larry. Please feel free to insert any other del Toro-and-Penn-are-real-life-stooges jokes here…

But admittedly – I think these casting choices are inspired, and would be mildly curious to see the finished product if it ends up with these three in the roles. But I think it should be told as a biopic as opposed to “a fictional treatment that maintains the Stooges' gleeful slap schtick updated for a modern milieu.”

Nyuk-nyuk-nyuk indeed.

Newspaper Bailout Next?

Dear Baby Jesus, please stop the madness. Senator Benjamin Cardin has introduced legislation to allow newspaper companies to restructure as nonprofits, enabling them to become eligible for government tax breaks.

Sen. Cardin’s Newspaper Revitalization Act would allow newspapers to operate as nonprofits for “educational purposes” under the U.S. tax code, giving them a similar status to public broadcasting companies. Under the bill, newspapers would be allowed to report on all areas of interest, including political campaigns, but would be prohibited from making political endorsements.

This arrangement seems to be working splendidly with NPR’s and PBS’ neutrality.

The Tax Cut To Nowhere

The middle-class tax cut, which had been the cornerstone of the Obama campaign's economic plan, now faces an uncertain future in Congress. Outlining his administration’s budget priorities during last night’s press conference, President Obama stressed his effort will be focused on health care reform, energy policy, investment in education and deficit reduction - and it will be up to Congress whether or not the tax "cuts" are made permanent.

The real trick here will be to see how exactly the President intends to reduce the deficit when the other three priorities appear to require massive and permanent “investment”. Washington has proven it can spend; however, it does not have the best track record on cutting back.

And what of those tax “cuts” to 95% of American households - the President sought fit to leave Congress holding that bag. “When it comes to the middle-class tax cut,” the President said, “we know that’s going to be in place for at least the next two years.” But the President continued, “If Congress has better ideas in terms of how to pay for it, then we’re happy to listen.”

“We never expected, when we printed out our budget, that they would simply Xerox it and vote on it,” Obama said. Perhaps, but that’s precisely what they did at his direction; and now, a different sort of printing press is working overtime to pay for it.

Specter A Rock On Card Check

Perhaps feeling heat from a potential election challenge from Republican rival Pat Toomey, Pennsylvania Senator Arlen Specter is apparently making it known that he will vote against cloture on card check legislation, setting back labor union efforts to eliminate workers’ secret ballot vote on unionization. Specter was the only Republican to vote for card check legislation the last time it came up in the Senate.

Grover Norquist told the American Spectator’s blog yesterday that he received a call from Specter’s chief of staff saying that the senator would be voting against cloture on card check. However, Specter left open the possibility of voting for card check in the future on the floor of the Senate later that day:

“If efforts are unsuccessful to give Labor sufficient bargaining power through amendments to the NLRA, then I would be willing to reconsider Employees’ Free Choice legislation when the economy returns to normalcy.”

At least you know where he stands.

Hat tip: The Weekly Standard

Obama Uses Monitor; Teleprompter Heartbroken

The air in the East Room of the White House was abuzz with rumor and innuendo last evening when President Obama was seen reading from a newer, younger and definitely more sleek LCD monitor.

His teleprompter attempted to put up a stoic front despite the obvious snub, but friends say the device is heartbroken and seeking comfort with several IBM Thinkpads in the White House basement.

“They’ve set up the East Room, and Big Boy said he’d feel more comfortable having lots of friends around him,” said the teleprompter. “The LCD screen thing is gonna make life so much easier for him when he’s back in the White House.”

Stand by your man.

The President’s Press Conference

President Obama has scheduled his second prime time news conference since taking office in January, presumably to answer questions concerning the bank bailout plan, AIG bonuses, Iran and reports that he intends to replace Press Secretary Robert Gibbs with his teleprompter.

To make this fun for those of you playing at home, try viewing tonight’s festivities with your favorite bottle of spirits nearby, and take a drink every time you hear the President say, or make reference to the following (or close to it):

- I didn’t create this mess, but I’m going to clean it up
- The last ten years of poor policy decisions have led to this climate of greed
- I inherited over a trillion dollars in debt, but my plan will halve it by 2012
- My stimulus bill has already begun to have a positive impact on the economy
- Responsibility for the AIG bonuses begins and ends with me; but…
- Pahk-eee-stahn

That should be a good enough start. Enjoy.

The CBO Says We Are SOL…

The CBO has released an assessment of President Obama’s proposed 2010 budget requests, and has found that the proposals would likely increase the federal deficit by $2.3trillion more over 10 years than the White House had originally stated.

Additionally, the study projects that Obama’s spending proposals would likely inflate the budget deficit to over 4 percent of GDP, and by the end of his second term (oy!), that figure would rise to over five percent:
More...
But so what, argue the new Keynesians, Republicans have run deficits for years and it was only until Clinton took over in ’93 did we finally balance the books to the plus side. And besides, we’re smack dab in the middle of a crisis requiring swift and bold (read: expensive) action.

Perhaps, but what if the government spending multipliers that form the basis of Obama’s economic models were based on older Keynesian assumptions? This report presented by economists/authors Cogan, Cwik, Taylor and Wieland last month conclude that government spending multipliers in new Keynesian models used universally in academia are much less than older models. How much less? The report says the spending impacts presented by Obama’s Economic Advisor Christina Romer on the President’s stimulus package and budget proposals are six times larger than those implied by government spending multipliers in a typical new Keynesian model. Romer’s numbers also report job impacts that are up to six times larger than the alternative models the authors present.

If the economy is humming along at 4% growth and the budget deficit is under three percent of GDP by this time in 2016, I’ll consider it Monopoly money well-spent. But until that time, I’ll remain a healthy skeptic.

McCain Beats Obama – In NCAA Picks

Heh. I can’t wait to see the reaction from the Conservative Wahoo about Obama's opinion of the ACC. When asked Saturday morning if he thought the ACC was overrated, President Obama remarked, “Apparently so.” Ouch.

Anyway, Senator John McCain easily beat President Obama in the weekend’s NCAA men’s tournament bracket picks. McCain has 14 of his first-round teams heading to the Sweet 16, placing him in the 94th percent tile. Obama did not fare as well. But being there's a recession on and all, so I'll cut him some slack.

Exit Part Of Entrance Into Afghanistan

Speaking on CBS’ “Sixty Minutes” last evening, President Obama previewed his upcoming policy objectives in Afghanistan and Pahk-ee-stan, and added that a US exit strategy might be a key component in his war in Afghanistan.

This particular policy nuance is in contrast to his predecessor, who resisted congressional efforts to tack timetables and exit strategies in Iraq.

Now that he’s calling the shots, it will be interesting to see exactly how this exit strategy evolves as the heat is turned up…

Updated 3/23/09, with comments from Micheal Yon on Afghanistan:
The hints coming out of Washington tend to cause me to believe we will abandon Afghanistan. I’m making no personal comment one way or the other yet, other than Iraq was worth the effort and costs all the way around – so long as we cement that success. Afghanistan seems little more than a tar pit. I want to hear General Petraeus say success is achievable, and to at least set some white lines by what he defines as success. He’s one of the very few people who have both the experience and character that are required to accurately estimate the truth and then deliver the good, bad and the ugly. If General Petraeus puts his word behind it, I’m only one man but I’ll back him. That’s about all there is to say on Afghanistan. HT: NRO

Strange Bedfellows

Later today, Treasury Secretary Timothy Geithner is expected to unveil his agency’s long-awaited plan to remove toxic assets from the financial sector’s balance sheets. Central to the plan’s success is the creation of a public-private sector partnership to absorb the troubled assets to the tune of some $500 billion to $1 trillion. These private sector fellows who are integral to the plan’s success are the same rabble currently being vilified by the President and Congress for its excesses in executive compensation.

More...
The Geithner plan is a three-prong attack designed to stabilize the financial system and restart business and consumer lending. The plan’s components include:

- A partnership of the Treasury and FDIC to stimulate auto, credit card and consumer lending;
- Government purchasing of securities backed by the SBA loans to encourage lending; and,
- A mortgage-loan modification program to reduce foreclosures.

While the plan calls for a “stress test” for troubled major banks and new infusions of capital for those that need it, it does not address (or I didn’t see it) reorganization as a remedy for these institutions – in other words, they’re all too big to fail.

Writing in this morning’s Wall Street Journal, Secretary Geithner believes that his plan will help to unclog the lending channel and provide a market-based price for these toxic assets, which he feels to be undervalued at the moment. And to help ease the sting of Congressional spankings over executive compensation, Geithner hopes to exclude program participants from executive pay rules imposed by Congress.

Considering the anti-capitalist furor that has seemed to grip the American psyche over the last few months, this “partnership” would seem a risky proposition. And while Wall Street would be certainly within its rights to thumb its nose at the administration for its sanctimonious sermons on executive bonuses, it also understands a good deal when it sees it. If this is an opportunity to make money, Wall Street is in – it will find other ways to keep its fat cats happy.

But for any overtures made by the administration toward program participants with regard to exemption from executive pay rules, I submit the fable of the Scorpion and the Frog as a likely outcome of that proposition…

"Job Fair" Is The New "Ballet"

Not that I would ever condone this sort of behavior, but a Rhode Island club has hit upon the perfect alibi for guys in these trying economic times...

Where are you going, honey?

Why, I'm going to a job fair dear.

Did The Canadian System Fail Richardson?

My brother Tom posited an interesting question earlier this week following actress Natasha Richardson’s unfortunate skiing accident in Canada; something to the effect of:

If the health care system in Canada is superior to that of the US, why was Richardson flown to a hospital in New York?

My initial thought was, “well, to die of course”. However, a Canadian doctor’s contention that Quebec’s lack of a medial helicopter may have played a factor in Richardson’s death puts this question into a whole new context. “Our system isn’t set up for traumas and doesn’t match what’s available in other Canadian cities, let alone the states,” said Tarek Razek, director of trauma services for the McGill University Health Centre, which represents six of Montreal’s hospitals.

Food for thought…

Kelloggs Wants Its Peanuts, And Eat Them Too

I finished reading Jonah Goldberg’s Liberal Fascism earlier this week. For me, seven eighths of the book was a fascinating, well-researched read on the roots of modern liberalism. However, it lost me in the last 75 or so pages; but this isn’t a slight on Goldberg’s thesis or writing as much as it is a combination of my ADD and desire to move on to the new Watchmen novel I received as a birthday gift.

One of the interesting parts of Goldberg’s book concerns the relationship of Progressivism and “Big Business”. Many on the left point to the era of the muckrakers as one societal role liberalism played in breaking the collusion existing between corporations and the right. Goldberg asserts that this is a misconception; that “Big Business” actually welcomed government intervention and regulation and worked hand-in-hand with the Wilson and Roosevelt administrations in crafting the very rules that governed them. Why? Simply put, because it crowded out competition. The larger corporations could afford to absorb the economic costs of regulation that the smaller companies could not. And if you’re going to be regulated, why not have a hand in steering it to your advantage? The federal government benefits as well, as fewer companies in a particular industry are easier to manage.

Could this be a continuation on that theme? The CEO of Kelloggs testified before Congress on Thursday calling for new requirements that all food companies have written safety plans, annual federal inspections of facilities that make high-risk foods, as well as other safety measures.

Saturday Morning Blogroll

What others around the blogosphere were saying this week…

THE LEFT

crooksandliars - reactions to President Obama's performance on the Tonight Show...
firedoglake - Treasury attempts to "blame Dodd" for AIG bonuses...
Huffinington Post - Edgar Bronfman on realism and leverage for engaging Iran...
Americablog - John Aravosis on "exploding" mortgages...
FiveThirtyEight - Unintended consequences with bonus tax legislation...

THE RIGHT

Rightwing Nuthouse - a case for the defense of the Administration's handling of the AIG affair...
American Thinker - more global warming alarmist child abuse?...
TigerHawk - Iran responds to President Obama...
Powerline - Are we a banana republic?...
ScrappleFace - Union demands fair wages for Obama's Garden Kids...

Obama Lowers The Bar

President Obama used his appearance on Leno to promote his budget plan, the stimulus, and reaffirm his confidence in his Treasury Secretary Timothy Geithner. The President also sought to reassure Americans that the economy will recover, but tempered his remarks by saying that patience is required. “We will come out on the other side stronger and a more prosperous nation,” the President said. “That I can guarantee you. I can’t tell you how long it will take, what obstacles we’ll face along the way, but I promise you this: there will be brighter days ahead.”

The American public…patience!? Good luck with that. But I can't help feeling that Obama himself contributed in part to these unreasonable expectations through a little rainmaking of his own. Here are the growth forecasts put out by the Obama budget team (in red) followed by a consensus forecast made up of private “blue chip” forecasters (in blue):

2009: -1.2% -1.9%
2010: +3.2% +2.1%
2011: +4.0% +2.9%
2012: +4.6% +2.9%
2013: +4.2% +2.8%

HT on the data: Greg Mankiw

He can’t tell us how long it will take? According to his Administration’s forecasts, prosperity is right around the corner. Obama has banked his budget (and our collective futures) on it.

…Or Like A White Man Dancing

President Barack Obama yukked it up with Jay Leno last evening, but one bon mot in particular from his appearance may be giving Press Secretary Gibbs fits this morning.

As Jake Tapper reports, the gaffe happened toward the end of President Obama’s appearance, as he talked about his infamous bowling prowess and how he’s improved with practice on the White House lanes. Obama said he bowled a 129, to which Leno replied sarcastically, “that’s very good, Mr. President.”

“It’s like a Special Olympics moment,” the President shot back.

Yes Mr. President, it is precisely like a Special Olympics moment – except for the fact that the participants in that event have IQs of 40 and many of them are unable to tie their shoes.

Wasn’t his election supposed to be a breath of fresh air, that his intelligence and elocution would transcend politics and even race? We’re sixty days into this presidency, and President Obama already has enough material for an “Obamansims” calendar.

He's a pretty funny guy.

Baby Boom Or Bust?

First the good news – the United States isn’t on quite the same trajectory to demographic oblivion as its developed Western European counterparts. In 2007, a record 4.3 million babies were born, bringing the US birth rate to just over 2.1, a healthy replacement rate. Many Western European nations are languishing at about 1.8 or lower.

Now the bad news – almost 40% of these babies were born to unmarried women, including almost three of every ten non-Hispanic white babies, seven out of every ten African American babies and five of every ten Hispanic babies. Additionally, the birth rate for teenage girls rose five percent from 2005 to 2007, to 42.5 births per 1,000 for girls aged 15-19.

Normally news of a minor baby boom like this would be met with relief, especially as multi-trillion dollar budget deficits loom on the horizon, not to mention the implending twin tsunamis of social security and Medicare entitlements. Baby booms mean a larger tax base, as millions of able-bodied men and women enter the workforce to replace retiring (and dying) Baby Boomer and Gen-X’ers. But judging by the socioeconomic challenges already facing this new generation, this boom might very well turn out to be a bust.

Just Wondering…

Will Senator Patrick Leahy’s “Truth Commission” seek to get to the bottom of just who in the administration and Congress knew of the AIG bonuses and the corresponding Stimulus loophole and when? I hear a lot of saber rattling from democrats about how they intend to stick it to AIG and Wall Street, but nothing about internal house cleaning designed to find out just how this fiasco was permitted to occur and who enabled it. Yes, I realize a democrat-controlled Congress would never sell out their own, but that’s the point – if this happened a year ago, there most certainly would have immediate calls for congressional hearings designed for maximum political damage.

AIG Is A P-I-G

Here’s video of Chuck Schumer this morning rising to righteous indignation on the floor of the Senate, threatening to pass legislation essentially taxing away any financial gains made by AIG executives through their retention bonuses.



What I find distressing about this clip is Sen. Schumer’s eagerness to use the power of taxation in such a vindictive and punitive matter so as to confiscate the money already paid to the recipients. What is the world coming to when I actually find myself agreeing with Charlie Rangel (D-NY) that the tax code is not “a political weapon”? If only he talked this talk in other areas of taxation as well *cough* wealth redistribution! *cough*.

I have no problem with Congress putting pressure on AIG’s CEO to renegotiate the retention bonus structure – lord knows I won’t be seeing any this year – so misery loves company. But let’s face it – not only did Congress and the administration know of AIG’s intent to pay this bonus months ago, it guaranteed it by codifying it into law.

Admittedly, I don’t know the details of how this bonus program is structured, but there must be some sort of corporate “out” where AIG has the right to alter the program at its discretion (most companies with bonus and other incentive programs do). Why not restructure the program so the money is paid to the recipients as required by law, but held in escrow for a period of three to five years as the company rights itself. If the executives leave the company before this period, they forfeit the money – if they are laid off, they receive the bonus as part of their severance package. I realize this may be a bit naive, but so is passing a law specifically to tax away this income if the recipients don’t voluntarily give it up.

The Inheritance Tax

Have you noticed a new buzzword making its way through Washington these days – inheritance – as in “my administration inherited this financial crisis”, “I inherited this war in Iraq” or “he inherited a difficult situation, including these…retention contracts”. That last remark is attributable to Treasury Secretary Timothy Geithner, referring to AIG CEO Edward Liddy, who accepted the position at the request of the federal government late last year.

The AIG situation is unfortunate and complicated, made even more so by legislative incompetence demonstrated by the likes of Dodd, Frank and Waters. Geithner appears to be in way over his head, and gives the perception (at least to me) that he lacks any sort of coordinated plan to relieve the financial system of this mess. And even if he does, the Gang of Three mentioned above will inevitably find a way to gum it up.

If You Say It Enough Times...

A poll released by CNN/Opinion Research Corporation finds that 45% of the respondents believe an economic depression is likely - this response is up seven percentage points from the same poll question asked back in December 2008.

Hmmm...economic catastrophe...depression...I wonder where the American public would go and get a thought like that in their heads?

Reading The Fine Print

As the administration scrambles to dodge the fallout generated by the revelation that AIG paid out over $165 million in executive bonuses, it may want to first check the language of its much-ballyhooed $787 billion stimulus package. For amid the thousands of pages of DC-style pork, a seemingly harmless loophole was inserted exempting TARP companies from prohibitions on paying bonuses contractually obligated before February 11th of this year.

And just who was responsible for insertion of this moral outrage? Why, that would be Senate Banking Chairman Chris Dodd, darling of the AIG lobby.

Perhaps President Obama may want to reconsider resurrecting that campaign pledge to sunset legislation before signing.

HT: National Review Online

Specter Staying In GOP

The Politico is reporting that a group of democrat movers and shakers including Vice President Joe Biden and "Fast Eddie" Ed Rendell recently attempted to pursuade Pennsylvania Senator Arlen Specter to switch party affiliation from republican to democrat.

"We've tried," said Rendell. "Myself, Sen. [Robert P.] Casey, Vice President Biden have tried to talk him into it, but he's bound and determined to stay a Republican."

Why bother, Ed? He can do more damage on the other side of the aisle.

Not Ready For Prime Time

In an effort to bolster public support for his budget proposal and deficit reduction programs, President Barack Obama will make an appearance on Jay Leno’s Tonight Show on Thursday evening. The president will stop by Leno’s studio during his trip to Los Angeles later this week.

If I was David Letterman, I’d feel a bit slighted. After all, Letterman made no attempt to conceal his contempt for the Republican Party or John McCain this past election cycle.

But beyond the obvious pandering, I don’t really get why the President of the United States would feel the need to appear on a comedy show to discuss matters of economic and national policy. It’s not as though the two are former school chums, and Obama is making good on a long-forgotten fraternity bet. This is the President; and there are other media forums available if he wishes to connect to the American public.

Perhaps this is just a sign of the times – a time where more and more Americans appear to be getting their news from Comedy Central than traditional “mainstream” media sources. Jon Stewart is a more trusted news source than Brian Williams; I don’t know if that is more a compliment to Stewart or an indictment of the pitiful state of network news.

The Troubles

Northern Ireland has been relatively quiet since the 1997 cease-fire agreement, a positive dividend fueled by an extended period of sustained economic growth and relative political stability in the UK. But the Celtic Tiger is now licking its wounds in the wake of its own mortgage crisis, and the numbers of unemployed and disillusioned hooligans on the dole increases daily.

In downplaying the possible resurgence of the IRA, the Lurgan police chief says that only a “very small group” of about 300 people was involved with the Irish Republican Army dissident groups that had claimed responsibility for recent killings of two British soldiers and a police officer. Even if this “very small group” was comprised of one, I’d be concerned.

Massachusetts Miracle Or Mirage?

If you want a glimpse into one possible future of health care under a government-funded system, look no further than the state of Massachusetts. In 2006, then-governor Mitt Romney and the legislature enacted one of the most sweeping health care proposals in the nation, providing near universal coverage to state citizens.

The problem is they purposely deferred to another day the problem of how to control rampant health spending. And now that day of reckoning is fast approaching...

Tough Choices Await Obama Health Plan

The New York Times this morning is reporting that the Obama Administration has signaled that it may be willing to consider taxing some employee health benefits – a position candidate Obama denounced as “the largest middle-class tax increase in history” during the campaign.

But don’t worry, Obama is no hypocrite, nor is he a fool. Presidential advisers have hinted that while the president will not propose the change in tax status himself, he will not oppose it if Congress does so. And if the democrats want to pass universal health legislation, they’re going to have to find the money from somewhere, so my guess is that Nan and Harry will be looked upon to take one for the team while Obama stays above the fray…

Obama: Fundamentals Are Stong

Seeking to reassure the Chinese government that their investments in T-bills are sound, President Obama asserted yesterday that despite current turmoil in the global markets, the US economy and political structure remains stable. At a gathering of reporters shortly after his meeting with Brazilian President Ignacio Lula da Silva, the President said "And so I think that not just the Chinese government, but every investor, can have absolute confidence in the soundness of investments in the United States...and that is not just in U.S.-issued Treasury notes, but also in the private sector and the commerce and the industry that has made this the most dynamic economy in the world."

Compare these sentiments with those expressed by candidate John McCain last September: "You know, there's been tremendous turmoil in our financial markets and Wall Street and it is -- people are frightened by these events. Our economy, I think, still the fundamentals of our economy are strong. But these are very, very difficult time. And I promise you, we will never put America in this position again. We will clean up Wall Street. We will reform government."

I recall many political commentators of the mainstream press at the time being quick to pounce on this statement as a sign of how out of touch McCain had become. Rereading his words this morning, they appear pretty innocuous; but the sentiment nevertheless echoes Obama's.

But where these words were once submitted as record to demonstrate incompetence, they are now held up as the soothing reassurance of a confident leader.

Brotherly Love

Um, ew. Just plain ew. Pittsfield, MA police responding to a domestic dispute learned that the altercation arose when one of the parties attempted to inseminate her wife (yes, you read that correctly) with the semen of her brother.

So many questions, so many answers that I just don't think I'm prepared to hear...

The Sensitive War On Terrorism

The Obama Administration has decided to forgo the Bush-era term “enemy combatant”, replacing it with the less threatening label “ideologically challenged nuisance”. OK, the latter part of that sentence isn’t true, but the former stands. As does apparently the Bush policy of retaining broad leeway in detaining those who would give assistance to the bad guys.

However, the Obama Justice Department is seeking to distinguish itself from the Bush Administration in this regard by stating that it would hold only terrorism suspects who “substantially supported” al-Qaeda and other groups, and not those who “provide unwitting or insignificant support.”

Toe-may-toe, toe-mah-toe; whatever helps your base sleep at night. Just keep them from blowing things up here.

Cuban Missile Crisis Redux?

While the press continues to fawningly compare President Obama to John F. Kennedy, this morning’s story from the Interfax news agency on Venezuela’s and Cuba’s invitation to the Kremlin to house Russian strategic bombers would appear to indicate that Putin is only too happy to play the role of Kruschev...

Saturday Morning Blogroll

I’ve started a new feature here at Postcards called “Saturday Morning Blog Roll”. Essentially, I’m going to list posts and news of interest from some of the most popular liberal and conservative blogs from around the internet. I do this mostly because I’m too lazy to come up with original content; but also because there is some terrific writing and thinking going on out there. To be fair, there is some truly awful stuff floating around as well. I Googled the 10 most popular liberal blogs (as well as conservative) to get started, but will add to this as we go along. Let me know what you think.

Liberal Sites

Americablog.com - There's a controversy brewing over whether the federal government should provide health benefits for gay employees…

Bagnewsnotes - At the fifty day mark of this Administration, I think this photo from yesterday's TIME White House Photo Blog carries a bit of weight...

CrooksandLiars.com - South Carolina Governor compares US black to Zimbabweans...

DailyKos.com - Musings over morning coffee. Nate Sliver answers Scott Rasmussen and Doug Schoen's WSJ piece about Obama's current approval ratings...

Firedoglake.com - The Wrath of Jon...

The Huffington Post - Thomas Frank: Obama takes on market based government...


Conservative Sites

HotAir.com - Boston Globe: Romney's the only adult left standing among the 2012 hopefuls...

Michelle Malkin - Business-as-usual Obama: OK, now "let's end the old way of doing business"...

TigerHawk - Joe Biden calls for "scaling back" in Afghanistan?...

The Volokh Conspiracy - Larry Summers Channels Gordon Gekko: Obama economic adviser Larry Summers is sounding like Gordon Gekko these days, arguing that we need more "greed" to revive the economy...

Right Wing Nut House - How radical is Barack Obama?...

Settled Science?

A group of leading scientists meeting in Copenhagen (they never meet in Newark, do they?) warned that global warming is accelerating beyond the worst predictions and threatening to trigger "irreversible" climate shifts on the planet.

Now I'm going to have to hold my hands in a "tee" and say time out here. Is climate change threatening to be irreversible, or is it already irreversible - this is no small distinction. And depending upon what day it is, the answer will vary, as evidenced here, here and here.

As a favor to this global warming heretic, could you folks on the other side of the argument perhaps get together and agree on this?

Our Banker Is Getting Nervous

Chinese Premier Wen Jiabao is said to be “worried” about his country’s holding of US debt, and wants assurances that his investment is safe (don’t we all!). At a press gathering in Beijing yesterday, Wen said that “we have lent a huge amount of money to the United States…I request the US maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”

But don’t worry Wen, the economic crisis isn’t as bad as we think.

Raise your hand if you think this obligation will have no effect on US/China relations, or the ability of the US to exert pressure on China vis-à-vis human rights, democratic reforms, North Korea or Taiwan. Anyone…anyone?

In His Own Words...

Candidate Barack Obama, on George W. Bush's use of signing statements:


If the left was so fearful of an imperial presidency under Bush, what are they to make of a guy who so clearly and condescendingly preaches to an audience on the evils of executive power unchecked (he taught Constitutional Law, after all), then reverses himself and adopts the same practice six weeks into office?

HT: Weekly Standard

Which Obama Are We To Believe?

- “We are in the worst financial crisis since the Great Depression" – Candidate Barack Obama, 10/07/08
- “The worse economic crisis since the Great Depression” – Candidate Barack Obama,10/30/08
- Obama called the financial crisis one of "historic proportions" – CNN, 11/24/08
- President Obama: A crisis “unlike any we have seen in our lifetime" – MSNBC, 1/13/09
- President Obama: Inaction will "turn a crisis into a catastrophe,” – NY Newsday, 2/9/09

- President Obama: Economic crisis “not as bad as we think.” – AP, 3/12/08

He may actually come to regret that last one.

Troubled Waters

Why should Barney Frank and Chris Dodd have all the fun? The Wall Street Journal this morning has published a story detailing the apparent conflict of interest of California Congresswoman Maxine Waters and the OneUnited Bank. Rep. Waters is a member of the House Financial Services Committee and a one-time shareholder of OneUnited Bank, a bank which recently received over $12 million in federal TARP money and one with which she still maintains close personal and financial ties.

While the article acknowledges that the relationship is nothing new – the representative has detailed her ties in disclosure forms – it does call into question the appropriateness of such a relationship during a time of financial crisis given the government’s continuing role as financial overlord. Waters’ Financial Services Committee oversees financial issues, and the representative is a (*shudders*) potential future chairperson.

Rep. Waters has been a vocal supporter of the minority-owned OneUnited Bank. Both she and her husband have held financial stakes in the bank – her husband still does, and was up until recently a director.

And while the bank has received numerous raves from community groups for its lending practices under the Community Reinvestment Act; OneUnited, like many of its competitors, has succumbed to the effects of the housing bubble. The bank had invested heavily in Freddie and Fannie, and had seen most of its assets wiped out last October. It was then that Rep. Waters stepped in and secured a meeting with Treasury officials. Shortly after, OneUnited received over $12 million in TARP money. Rep. Waters says she was unaware of the transaction, and added that OneUnited was “just a small” bank.

But a small bank with big friends nonetheless.

In October 2008, federal regulators ordered the bank to stop paying for a Porsche used by one of its executives and its chairman's $6.4 million beachfront home in Pacific Palisades, Calif., a luxury enclave between Malibu and Santa Monica.

What is the difference – propriety-wise – between the CEO of a major failed lending institution receiving a bonus, and the Porsche and $6.4 million beachfront home of “just a small” bank’s executive team being paid for by the shareholders and taxpayers?

And at the risk of poking the racial hornets nest, could someone please tell me what a "major white bank" is?

Separated At Birth? Part IV...

Kids in the Hall comedian Kevin McDonald, and...

Deer in the headlights Treasury Secretary Timothy Geithner?

Death By A Trillion Cuts

Not wanting to let a good crisis go to waste, congressional democrats are considering another stimulus package designed to stimulate the other stimulus package.

At meeting of the ironically-named Democratic Steering and Policy Committee, democrats heard from a variety of economists and policy wonks who convinced them that the surefire way to prosperity is to take the country deeper into debt.

“We have to keep the door open,” said House Speaker Nancy Pelosi, “the word of the day is confidence. Confidence in our markets, confidence in lending, confidence in our financial institutions.”

No Nan. The word of the day is “Weimar Republic”.

Biden's Math

The Weekly Standard highlights Vice President Joe Biden's continuing war with math:

“Well, let me just say -- and to paraphrase Secretary Holbrooke, our Special Envoy, and I agree with his assessment after numerous visits to the region and throughout the country -- 5 percent of the Taliban is incorrigible, not susceptible to anything other than being defeated. Another 25 percent or so are not quite sure, in my view, the intensity of their commitment to the insurgency. And roughly 70 percent are involved because of the money, because of them being -- getting paid.”

What's with Biden's fascination with 70%? This is one area that the Administration can't afford to be wrong 30% of the time...