July 17, 2008

It’s the Stupid (Republican) Economy

Filed under: Bush Administration, Republican Party, economy — maha @ 9:53 am

I think somebody ought to have an ad featuring these McCain quotes from a January 2008 debate running 24/7 –

Q: Are Americans better off than they were eight years ago?

A: You could argue that Americans overall are better off, because we have had a pretty good prosperous time, with low unemployment and low inflation and a lot of good things have happened. A lot of jobs have been created. … We need to make the Bush tax cuts permanent, which I voted for twice to do so. … I think we are better off overall if you look at the entire eight-year period, when you look at the millions of jobs that have been created, the improvement in the economy, etc.

This should be juxtaposed with a clip from Dubya’s Tuesday press conference.

He’s not worried.

On a day that saw one economic bombshell after another, President Bush squinted, smirked and grimaced into the future Tuesday, declaring - contrary to a growing mountain of evidence - that the country’s financial system is “basically sound.”

“I’m an optimist,” a sometimes testy Bush said in his first White House news conference since April. “I believe there’s a lot of positive things for our economy.”

Dan Froomkin cites an AP poll that says “by a 2-1 margin, Americans believe McCain would generally continue Bush’s economic policies.”

Harold Meyerson has a must-read column on McCain’s economic policies in today’s WaPo.

… as McCain tries to balance the tattered libertarianism of Reaganomics with the financial exigencies of the moment, he and his campaign have moved beyond inconsistency into utter incoherence. He vows to balance the budget while also cutting corporate taxes and making permanent the Bush tax cuts for the rich — even though the rich and corporations made out like bandits during the Bush “prosperity,” while everyone else’s incomes stagnated. McCain squares this circle by vowing to cut entitlements, a move that would reduce, rather than enhance, consumer purchasing power at a time of economic downturn (or any other time, for that matter).

Whether Americans are even experiencing a downturn has been a matter of some dispute in the McCain camp, since former senator Phil Gramm, until last week one of McCain’s chief surrogates on economic issues, deemed America a nation of “whiners” mistaking subjective insecurity over the economy for an objective economic fact. For McCain, who had the misfortune to be campaigning in Michigan the day that Gramm’s remarks dominated campaign news, Gramm’s insensitivity was appalling. But McCain has never expressed any concern that Gramm wrote the legislation that enabled the $62 trillion credit default swaps market to remain unregulated, which, as David Corn documented in Mother Jones, meant that banks and hedge funds could accumulate liabilities that they could not cover if the markets — most particularly, the subprime mortgage market — went south. To the contrary, McCain has viewed Gramm as one of his economic gurus. “There is no one in America that is more respected on the issue of economics than Senator Phil Gramm,” McCain declared in February. …

…One problem is that McCain himself has no real ideas about how to fix the economy, which leaves his tetherless surrogates free to roam the policy landscape. An even deeper problem is that standard-issue Republican economic policy has run out of plausible mantras. The ritual extolling of markets and denigration of government make no sense at a moment when a conservative Republican administration is rushing to save the markets through governmental intervention.

Or, to use Reagan’s construction: Republican economics is not the solution to our problem; Republican economics is the problem — for our nation, surely, and also for candidate McCain.

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July 14, 2008

Fairy Tales

Filed under: economy — maha @ 7:26 pm

E.J. Dionne wrote a column last week in which he said that free-market economic theory has collapsed.

You know the talking points: Regulation is the problem and deregulation is the solution. The distribution of income and wealth doesn’t matter. Providing incentives for the investors of capital to “grow the pie” is the only policy that counts. Free trade produces well-distributed economic growth, and any dissent from this orthodoxy is “protectionism.”

The old script is in rewrite. “We are in a worldwide crisis now because of excessive deregulation,” Rep. Barney Frank (D-Mass.), the chairman of the House Financial Services Committee, said in an interview.

To which I say, ha. Since when does the Right let anything like real-world experience or empirical evidence get in the way of a good fairy tale?

I’ve been watching today to see who’s commenting on the Fannie Mae-Freddie Mac crisis, and it’s mostly been us Leftie bloggers, with a few moderate Right exceptions. The Right is already coming up with creative ways to blame the Left. It’s what they’re good at.

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April 1, 2008

Tantrums

Filed under: Bush Administration, economy — maha @ 8:03 am

David Usborne of The Independent reports that a record number of Americans are now on food stamps. Predictably, right-wing bloggers panned the article as an example of liberal media bias.

One can argue that the headline of the article — “The Great Depression” — is over-the-top, since we’re not in an economic depression and our situation is not nearly as dire as the real Great Depression. Yet. Also, the accompanying photo is more than two years old. You can count on righties to pick the headline and photo apart and ignore the article, which presents a sobering picture of economic life in America. If the data presented are true, we should be concerned.

BTW, David Jolly reports for the New York Times:

UBS, the largest Swiss bank, said on Tuesday that it would write down another $19 billion related to “U.S. real estate and related structured credit positions” and said Marcel Ospel, its chairman, would step down.

UBS said the write-down would result in a first-quarter loss of about 12 billion Swiss francs, or $12 billion, and that it would seek new capital of about $15 billion, in the second time it has announced plans to raise new funds since the credit crisis began. The bank’s board proposed that Peter Kurer, currently general counsel for the bank, take over as chairman, pending shareholders’ approval at a meeting on April 23.

The news came as Deutsche Bank, the biggest German lender, said Tuesday that it expected a first-quarter loss of about $3.9 billion on write-downs of United States real estate loans and assets. Global banks have now written down more than $200 billion of soured loans in the market debacle that began last summer with the implosion of the American subprime mortgage market.

On the plus side, Bush’s chief of Housing and Urban Development, Alphonso Jackson, resigned yesterday. Jackson is under investigation for allegedly giving lucrative housing contracts to friends.

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March 21, 2008

Slacker Friday

Filed under: Democratic Party, economy — maha @ 10:50 am

See Prometheus 6 and the BooMan.

See also E.J. Dionne, “Another Angry Black Preacher” and “The Street on Welfare.

Paul Krugman explains why we’re re-making the mistakes of 1929.

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March 17, 2008

Crises Mode

Filed under: Democratic Party, economy, elections, Asia — maha @ 11:52 am

Hale Stewart on the Bear Stearns situation:

The Federal Reserve is scared shitless.

Sort of gets your attention, doesn’t it? Hale understands financial stuff and explains it better than I can, so see him for details. See also Paul Krugman.

I’m still watching the Tibet crisis on the other blog. Per my agreement with About.com I cannot cross-post, but today I wish I could. Chinese bloggers are weighing in, and they do not understand why the Tibetans are so ungrateful for being liberated. You’d think they’d be greeting the Chinese with flowers and candy, after all. Oh, wait …

The Chinese are really cracking down now. They are going house to house in Lhasa, arresting people and parading prisoners through the streets. I suspect the protests will either taper off after today, or they’ll get a lot worse. See also the Peking Duck, here, here and here.

Marc Ambinder catches Bill Kristol in a major flub. See also Balloon Juice.

Scott Helman reports for the Boston Globe that Republican voters are coming out for Clinton.

For a party that loves to hate the Clintons, Republican voters have cast an awful lot of ballots lately for Senator Hillary Clinton: About 100,000 GOP loyalists voted for her in Ohio, 119,000 in Texas, and about 38,000 in Mississippi, exit polls show. …

… Spurred by conservative talk radio, GOP voters who say they would never back Clinton in a general election are voting for her now for strategic reasons: Some want to prolong her bitter nomination battle with Barack Obama, others believe she would be easier to beat than Obama in the fall, or they simply want to register objections to Obama.

Now that McCain has sewed up the Republican nomination, Republicans in remaining primaries could really do some mischief. Pennsylvania has a closed primary, meaning only registered Dems can vote in the Dem primary, which should help. And I’m sure the pro-Clinton bloggers who have alleged there’s something sinister about Obama’s appeal to Independent and moderate Republican voters will take note and … oh, wait. They won’t. Never mind.

Oh, and happy Saint Patrick’s Day. Image above copyrighted — © Jeannel | Dreamstime.com

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January 25, 2008

When “Bipartisan” Means We’re Screwed

Filed under: Bush Administration, Congress, economy — maha @ 7:12 am

At the Washington Post, if it’s “bipartisan” it must be righteous.

Baker and Weisman’s article reveals a House of Representatives oozing with self-congratulation.

President Bush hailed “the kind of cooperation that some predicted was not possible here in Washington.” House Speaker Nancy Pelosi (D-Calif.) used the words “bipartisan” and “bipartisanship” 10 times in a brief appearance. “Many Americans believe that Washington is broken,” said House Minority Leader John A. Boehner (R-Ohio). “But I think this agreement, and I hope that this agreement, will show the American people that we can fix it.”

Paul Krugman has another opinion.

Specifically, the Democrats appear to have buckled in the face of the Bush administration’s ideological rigidity, dropping demands for provisions that would have helped those most in need. And those happen to be the same provisions that might actually have made the stimulus plan effective.

So what else is new?

Aside from business tax breaks — which are an unhappy story for another column — the plan gives each worker making less than $75,000 a $300 check, plus additional amounts to people who make enough to pay substantial sums in income tax. This ensures that the bulk of the money would go to people who are doing O.K. financially — which misses the whole point.

The goal of a stimulus plan should be to support overall spending, so as to avert or limit the depth of a recession. If the money the government lays out doesn’t get spent — if it just gets added to people’s bank accounts or used to pay off debts — the plan will have failed. …

…Yes, they extracted some concessions, increasing rebates for people with low income while reducing giveaways to the affluent. But basically they allowed themselves to be bullied into doing things the Bush administration’s way.

In his blog, Krugman explains why this is a problem.

Update: See also David Sirota, “The Stimulus Swindle“; Michael Mandel, “How Real Was the Prosperity?

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January 23, 2008

Booms and Busts

Filed under: economy — maha @ 7:02 am

You might enjoy this piece by Jonathan Freedland

If the market economy is looking peaky, then its accompanying free market ideology should be on life support. Behold the hypocrisy. The free marketeers have spent the past two decades preaching against the evils of state intervention, the dead hand of government, the need to roll back the frontiers, and so on. Yet what happens when these buccaneers of unfettered capitalism run into trouble? They go running to the nanny state they so deplore, sob into her lap and beg for help. The results of their own greed - “exuberance”, they call it - and incompetence have caused more than 100 substantial banking crises over the past 30 years, yet time and again it is the reviled state which answers the call for help. Four times in this period, the authorities have had to rescue crucial parts of the US financial setup. If the banks make money, they get to keep it. The moment they look like losing it, we have to cough up. In Wolf’s brilliant summary: “No industry has a comparable talent for privatising gains and socialising losses.”

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January 20, 2008

Financial Armageddon

Filed under: economy — maha @ 10:35 am

Some on the Right have been hankerin’ for Armageddon. Well, Ian Welsh says it’s coming, but not the one the premillennialists expected.

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January 7, 2008

Don’t Be Afraid

Filed under: Bush Administration, Republican Party, economy — maha @ 1:47 pm

Mike Madden writes at Salon:

First, an enormous orange fireball booms onto the screen. The camera shakes and a crowd runs for cover. Next, sirens wail, as an abandoned car explodes. Paramedics tote bodies away from another blast. Militants raise their AK-47s and parade across the desert, their faces masked.

What’s the next image that fills the screen, in a Web commercial by John McCain that really puts the “attack” in “attack ad”? Mitt Romney’s face, above a quote from a Hannity & Colmes appearance where Romney said “a president is not a foreign policy expert.”

The closer the New Hampshire primary gets, it seems, the more terrified the Republican presidential candidates want you to be. That way, you’ll vote for the guy who scared you the worst, and not that guy who’s going to preside over your death at the hands of jihadists. McCain, who wants to shift the conversation away from immigration and onto foreign policy and security issues, has Web ads like “Experience.” Rudy Giuliani — who never misses a chance to remind voters about 9/11 — is airing a TV commercial in New Hampshire called “Ready” that is even more alarming than McCain’s “Experience.” Released just days after Bhutto’s murder, it features footage of the late Pakistani leader, accompanied by a soundtrack of Middle Eastern music. “Hate without boundaries,” intones a narrator. “A people perverted … A nuclear power in chaos.” Mike Huckabee — no foreign policy maven — answered a press conference question about immigration by invoking the specter of Pakistanis with “shoulder-fired missiles” sneaking across the U.S.-Mexico border. Fred Thompson got into the act at Saturday night’s ABC News/Facebook/WMUR debate, proving that even campaigns that don’t have the money to scare people with ads can still try other methods. “We could be attacked with a biological weapon and not even know it for a long period of time,” Thompson told viewers matter-of-factly. (Now enjoy your late local news.) …

… Ask Republicans about the issue, of course, and they’ll say the only danger in advertisements that focus on terrorist attacks is that they won’t go far enough. “Whether we live or die is obviously the most important issue,” said Rep. Peter King, R-N.Y., an advisor to Giuliani’s campaign and the top Republican on the House Homeland Security Committee.

You readers are from all over the country. Are people where you live really cowering in fear of jihadists? Or are they more worried about their jobs and health insurance?

Apparently they tried illegal immigrant fear mongering — brown people with funny accents will steal your jobs and seduce your women — tactics in Iowa, to little effect. So they’re falling back on brown people with funny accents will blow up your shopping malls.

Paul Krugman writes about fear today, too.

The unemployment report on Friday was brutally bad. Unemployment rose in December, while job creation was minimal — and it’s highly likely, for technical reasons, that the job number will be revised down, showing an actual decline in employment. ..

…It’s not certain, even now, that we’ll have a formal recession, although given the news on Friday you have to say that the odds are that we will. But what is clear is that 2008 will be a troubled year for the U.S. economy — and that as a result, the overall economic record of the Bush years will have been dreary at best: two and a half years of slumping employment, three and a half years of good but not great growth, and two more years of renewed economic distress.

This should be good for Democrats. But then …

But the opponents of change, those who want to keep the Bush legacy intact, are not without resources. In fact, they’ve already made their standard pivot when things turn bad — the pivot from hype to fear. And in case you haven’t noticed, they’re very, very good at the fear thing.

I’m sure you’ve noticed that for the past seven years, conservative bobbleheads have wondered why the American people aren’t more appreciative of the great economy Bush has given them. (Professor Krugman provides some graphs on his blog that tell us why.) Very recently the Bushies have begun to notice the economy may be less than great. And the rhetoric, as Krugman says, has swung from hype to fear.

President Bush is warning that given the economy’s problems, “the worst thing the Congress could do is raise taxes on the American people and on American businesses.”

And even more dire warnings are coming from some of the Republican presidential candidates. For example, John McCain’s campaign Web site cautions darkly that “Entrepreneurs should not be taxed into submission. John McCain will make the Bush income and investment tax cuts permanent, keeping income tax rates at their current level and fighting the Democrats’ plans for a crippling tax increase in 2011.”

What “crippling” tax increase, which would tax entrepreneurs into submission, is Mr. McCain talking about? The answer is, proposals by Democrats to let the Bush tax cuts for people making more than $250,000 a year expire, returning upper-income tax rates to the levels that prevailed in the Clinton years.

I wonder if anyone but the entrenched ideological Right is buying this bilge, but we can’t be too careful.

Finally … if Barack Obama wins the Dem nomination we’re going to be spending a lot of time discussing racism in America. But for now I just want to say that if Senator Obama is the nominee, there’s one thing we can count on: The GOP will stop at nothing to prevent African Americans from getting to the polls.

The chief way this is done is to stir up fear of voter fraud, enabling the GOP to apply “remedies” that keep legitimate voters from voting. And in the current New Yorker, Jeffrey Toobin writes that the Supreme Court is about to hear a voter ID law challenge from Indiana, and the decision could have an impact on which citizens will be allowed to vote in the November elections.

“Let’s not beat around the bush,” Terence T. Evans, the dissenting Court of Appeals judge in the Indiana case, slyly wrote. “The Indiana voter photo ID law is a not-too-thinly-veiled attempt to discourage election-day turnout by certain folks believed to skew Democratic.” He’s not the only one to notice: the three federal judges who approved the Indiana law were appointed by a Republican President; the lone dissenter was appointed by a Democrat. It was also Republican-dominated legislatures that produced the Indiana and Georgia laws, both of which were signed by Republican governors.

Who are the “certain folks,” in Judge Evans’s delicate phrase, that the Indiana law is trying to discourage? The best answer can be found in a friend-of-the-court brief in the case filed by twenty-nine leading historians and scholars of voting rights. They concluded that the Indiana law belongs to a malign tradition in “this nation’s history of disfranchising people of color and poor whites under the banner of ‘reform.’ ” Such measures as the poll tax and literacy tests, they write, were “billed as anti-fraud or anti-corruption devices; yet through detailed provisions within them, they produced a discriminatory effect (often intended) within the particular historical context.” So it will be in Indiana, where the law creates a series of onerous barriers to voting. Consider one: you can get a government photo I.D. by showing your birth certificate, but you can’t get a copy of your birth certificate unless you can produce certain official photo I.D.s. And, with up to twenty million Americans of voting age lacking government-issued identification, the matter of requiring photo I.D.s has broad implications.

Let’s face it; today’s Republicans hate democracy.

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December 13, 2007

Roll Up for the Misery Tour

Filed under: economy — moonbat @ 2:16 pm

Repo Tour Bus

Stockton, California real estate agent Cesar Dias leads weekly Repo Home Tours, filling two 18-seat buses with prospective buyers eager to view foreclosed houses that can be snapped up at dramatically reduced prices.

Dias, a Stockton native, said that when he started the free tour in September, some residents criticized it as a tasteless marketing gimmick. But as headlines announce record foreclosures and weeds sprout in the yards of abandoned homes, their tune has changed.

“We’re bringing in homeowners to get the grass green again,” he said.

As the brightly colored buses recently rolled through a subdivision dotted with “For sale” signs, a couple who were stringing up Christmas lights waved. The bargain hunters aboard waved back. Dias, who said his business was booming, offered a friendly beep…

via Los Angeles Times.

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