
Tom Toles
Gamblin' Grampy McAbout-to-blow doubles down.
Enjoy!
This blog is evolving like life evolves. I am, once again, the Official Radical Militant Librarian of the Stephanie Miller Show. And, I am still blogging my thoughts on the current political scene - so please stay tuned.

Okay, okay, I admit that I have probably crossed the line from having a passing interest in politics to being a full-blown political junkie. Here's the proof - it is 4:45pm (CST) and I am watching C-SPAN2. At the moment Senator Bernie Sanders (I - VT) is offering an amendment that actually makes sense - it would place much of the burden of this colossal bailout on those who are responsible for creating this mess. Here is the most salient detail of the Sanders Amendment: "In the case of a taxpayer other than a corporation, there is hereby imposed (in addition to any other tax imposed by this subtitle) a tax equal to 10 percent of so much of modified adjusted gross income as exceeds $500,000.00 ($1,000,000.00 in the case of a joint return or a surviving spouse."

So here's the way the deal (didn't) go down: Treasury Secretary Henry Paulson comes to Congress with a two and a half page Bill that he exclaims that Congress must pass, "without clutter" as soon as is humanly possible. Congress is taken off-guard and in their stunned state agree that there is a CRISIS and begin to work with what Sec. Paulson handed to them (mistake number one - they should rather have taken a few deep breaths, sat down and looked at the financial situation). This is especially true since the Bill contained language as cited below:["Decisions by the Secretary [of the Treasury] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Talk about a recipe for a disaster. (emphasis mine).]As Frank Rich has so cogently written in this morning's NYTimes, John McCain will do or say absolutely ANYTHING to become president of these United States. Allow me to count the ways in which this "maverick" candidate has sold his soul for a ticket to the White House and explain why all his twisting in the wind, flip-flopping to a greater degree than any other candidate in modern history, and resorting to sheer gimmickry has or at least should have lost any support for his candidacy that he may once have legitimately had.
It has always been "McCain First," as a story by a fellow POW in Hanoi pointed out, McCain was not the only soldier to be offered an early release. It was a common offer and one that all men imprisoned by the North Vietnamese rejected. Although that does not mean that all POWs were released. See McCain and the POW Cover-Up (originally appeared in The Nation). It seems that one of the hallmarks of McCain's hero status and a huge rationale for his qualifications for president are built on a sham.
Soomebody better tell John McCain that sometimes the president needs to walk and chew gum at the same time, in other words, he/she sometimes needs to multitask. However, I am so glad that Grampy McSame decided to rally and join Barack Obama in Oxford, Mississippi for the first presidential debate. A debate in which ole Grampy managed to get through without incessant "blurting out of random crap."
"This administration is asking for a $700 billion blank check to be put in the hands of Henry Paulson, a guy who totally missed this, and has been wrong about almost everything. It's almost amazing they can do this with a straight face. There is clearly skepticism and anger at the idea that we'd give this money to these guys, no questions asked."
Dean Baker, Co-director, Center for Economic and Policy Research in Washington
What the Hell?
I had been attempting to educate myself on the sub-prime mortgage mess ever since Fannie Mae and Freddie Mac were bailed out, but today I gave up. I don't need to know any more than it is WRONG for taxpayers to bear the burden of the colossal financial mess that has its roots in the GOP deregulation madness that has finally come home to roost. No oversight equals no accountability. There are reasons why we are a country of laws - laws that apply to corporations as well as the average Joe. When the free marketeers finally succeeded in getting the government off of their back, they ran their ships into an iceberg, and now they want the government (read: average Joe Taxpayer) to bail them out. I say no way, not on Bush/Cheney/Paulson's terms. Not with this language in the legislation: "Decisions by the Secretary [of the Treasury] pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency." Talk about a recipe for a disaster.
There has been a piece floating around the internets entitled This is Your Nation on White Privilege, in which the author Tim Wise contrasts differing perspectives on various situations as viewed through a lens of race. This bail out smacks of the ultimate white/corporate/male/wealthy privilege that would never fly if the entity that needed the bail out were African-American working class families who just couldn't come up with the mortgage payment or pay a credit card bill. We know that this is true because there is little discussion of actually helping out the folks who can't pay their mortgages, rather all of the seven hundred billion dollars would go to the corporate fat cats who offered and signed off on those risky loans in the first place. This is a classic case of corporate welfare, and I, for one, hope that Congress calls McBush's bluff on this bail out scheme and "Just says no."
Last week I wrote the following in anticipation of the next shoe to drop, little did I anticipate that the shoe would be not just another shoe, but an Imelda Marcos-sized closet of shoes. A case on point: Fannie Mae and Freddie Mac get major bail-out, then AIG. Who's next? The answer to that question is the entire financial industry, every sub-prime mortgage lender, every hedge fund manager, every speculator, every derivative actor, every short-seller, every fly-by-night CEO and risky banker, every person who is working on Wall Street.
“Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe. This turmoil would directly and negatively impact household wealth: from family budgets, to home values, to savings for college and retirement. A failure would affect the ability of Americans to get home loans, auto loans and other consumer credit and business finance. And a failure would be harmful to economic growth and job creation.”
Henry Paulson, Secretary of the Treasury (NYTimes, September 7, 2008)
Some background information for those who are not economists or Security and Exchange Commission insiders:
Set up by the government - but run privately - Fannie and Freddie (Both "government sponsored entities"or GSEs) have been in the business of backing mortgages since 1968. Like any re-insurer that backs up loans, they make it easier for banks to issue riskier mortgages at lower rates. That means more mortgages for more families. Today Frannie and Freddie either own or back up 41% of home mortgages.
The companies ply their business in a number of ways. First, they buy mortgages from banks, savings and loans, and other mortgage lenders, freeing those lenders' cash to make more loans. Fannie Mae and Freddie Mac pay for those mortgage purchases by selling bonds in the public markets. They also guarantee mortgage-backed securities, investments sold on the open market that are backed by pools of thousands of home mortgages. The system is known as the secondary mortgage market.
Both before and after Fannie Mae and Freddie Mac became private companies, the system helped make credit widely available. The companies, which were created by Congress but are owned by investors, suffered more than $9 billion in mortgage-related losses last year, and analysts expect those losses to grow this year. Because they were chartered by Congress, both companies have the implied, if not legally binding, backing of the government. That allows them to sell bonds at lower interest rates in the open market because investors perceive them as safer.
Finally, Fannie Mae and Freddie Mac securities -- their bonds and mortgage-backed securities -- are one of the basic tools of financial-institution spreadsheets in the United States and abroad. U.S. banks buy billions of dollars worth of them a year. Further, because of the perceived safety, federally insured financial institutions can hold high concentrations of the government-sponsored-enterprise securities, well above that allowed of other securities. Those many tentacles into the financial system are the main reason why some -- most prominently Federal Reserve Chairman Alan Greenspan -- have expressed concern about "systemic risk." That is, under their current structures, if Fannie Mae or Freddie Mac falter, the shock to the system could be too great, and the financial risk to the government too heavy, to bear.
Fannie and Freddie do not lend directly to home buyers. Rather, they buy mortgages from banks and other lenders, and thereby provide fresh capital for home loans. The companies keep some of the mortgages they buy, hoping to profit from them, and sell the rest to investors with a guarantee to pay off the loan if the borrower defaults. Because of the widespread perception that the government would intervene if either company failed, they can borrow money at lower interest rates than their competitors. As a result, they have earned enormous profits that have enriched shareholders and managers alike: from 1990 to 2000, each company’s stock grew more than 500 percent and top executives were paid tens of millions of dollars.
Those profits were threatened earlier this decade, however, when new competitors emerged and after audits revealed that both companies had manipulated their earnings. The companies were forced to replace top executives, pay hundreds of millions in penalties and consent to strict growth limits. To keep profits aloft and meet affordable-housing goals set by Congress, the companies began buying huge numbers of subprime and Alt-A mortgages, the highly profitable loans often taken out by low-income and riskier borrowers. By the end of last year, the companies had guaranteed or invested in $717 billion of subprime and Alt-A loans, up from almost none in 2000.
“I want these companies to help with affordable housing, to help low-income families get loans and to help clean up this subprime mess. Otherwise, why should they exist?”
Representative Barney Frank, (D - Massachusetts), Chairman of the House Financial Services Committee.
A report released earlier this month by a regulator, noted that although Freddie and Fannie had a combined $19.9 billion of “unrealized losses” on mortgage-related investments, neither company had reduced its earnings to reflect those declines. That is because they judged the losses to be temporary — in essence wagering that the mortgage market would recover before those assets were sold. Such a wager is permitted by the rules but difficult for outsiders to analyze. Both companies have also recently changed their policies on delinquent loans, which they previously recorded as impaired when borrowers were 120 days late. Now, some overdue loans can go two years before the companies record a loss.
“We’ve taken tremendous risks by loosening these companies’ purse strings. They could cause an economywide meltdown if they got into real trouble and leave the public on the hook for billions.” Senator Mel Martinez, (R - Florida), Former Secretary of Housing and Urban Development. Ah, Senator, more prophetic words have rarely been spoken....
If you want to follow this debacle or send a message to Congress, click here.
Sign Senator Bernie Sanders' Petition to Secretary Henry Paulson.
Read Naomi Klein's excellent piece: Now Is the Time to Resist Wall Street's Shock Doctrine. Ms. Klein was on the Stephanie Miller Show this morning (Wed. Sept. 24, 2008). I recommend listening to the interview (it should be available at StephanieMiller.com later today).
It is jaw-dropping the number of gaffes (outright blunders or as I like to refer to them, idiotic mistakes) that have been uttered by the mouth of John McCain over the course of the last week. If these are not signs of the judgment that McSame would exercise should he be fortunate enough to steal another election for the GOP (Giddy Over Palin), then on what are we to base our decision in November?
Yesterday, I had my 50th birthday and like many people facing this milestone, I had mixed feelings about celebrating the occasion. There are several cliches that I will run through just because they seem apropos - golden oldies like, "If I thought I was gonna live this long, I would have taken better care of myself," or "Turning 50 isn't great, but it beats the alternative." On a more serious note, I never really thought I'd reach this age. I have battled severe clinical depression most of my adult life, and have attempted suicide on more than one occasion. But here I am, thanks in no small part to a wonderful therapist and a fabulous psychiatrist that helped me through my most recent battle with the demon depression. Thanks also to my wonderful family who has always been there for me, no matter how badly I tried to hide from them and the world at large. And thanks also to the amazing friends that I have had the great good fortune to know, some for many, many years.
Who would have guessed that Sarah Palin is such a beee-otch? She sure proved it last night with a speech full of lies, hyperbole, attacks and sheer hate-filled talk. Where to start? In case you missed it - here it is in all of it's hate-fueled glory. It was set-up by a string of other lie-filled speeches by Mittens Romney, Mike Huckleberry, and Rudi "Noun-verb-9/11" Ghouliani. By the time Palin took the stage the audience had worked themselves into a frenzy of attack mode, ready to hear all of the lies and hate without any expectation of substance or a real discussion of issues that face Americans today.
Okay, so here is a preview of the kind of judgment that a President McCain might exercise when he is contemplating the next Supreme Court Justice. The pundits like to say that a candidate's choice for Vice Presidential candidate is the first significant and telling judgment call of the nominee's candidacy. Well then, we have quite a window into the workings of the mind of McCain. What does this selection demonstrate to us as an insight into the mind of McSame? Is he thinking that by selecting a woman he might be able to coerce a few disgruntled Hill-bots (PUMAs) to his side by adding a woman to the ticket? If this is a part of McRage's consideration, then it assumes that the PUMAs would willing disregard the fact that that Mrs. Palin is strongly anti-choice, anti-science, and pro-drilling in ANWR. I think that McInsane's thinking was more along the lines that Sarah Palin is an evangelical Christian who is anti-choice, anti-science, and pro-drilling and in this way the selection of Mrs. Palin is a blatant plea to court the far religious right of the republican party.
"America, now is not the time for small plans." "To those who still believe in the myth of a maverick instead of the reality of a politician, I say, let’s compare Senator McCain to candidate McCain. Candidate McCain now supports the wartime tax cuts that Senator McCain once denounced as immoral. Candidate McCain criticizes Senator McCain’s own climate change bill. Candidate McCain says he would now vote against the immigration bill that Senator McCain wrote. Are you kidding? Talk about being for it before you’re against it."
"So remember, when we choose a commander-in-chief this November, we are electing judgment and character, not years in the Senate or years on this earth. Time and again, Barack Obama has seen farther, thought harder, and listened better. And time and again, Barack Obama has been proven right."
"Years ago when we protested a war, people would weigh in against us saying, “My country right or wrong.” Our answer? Absolutely, my country right or wrong. When right, keep it right. When wrong, make it right. Sometimes loving your country demands you must tell the truth to power."
President Bill Clinton (Wednesday, August 27, 2008):
"Most important, Barack Obama knows that America cannot be strong abroad unless we are strong at home. People the world over have always been more impressed by the power of our example than by the example of our power."
"They actually want us to reward them for the last eight years by giving them four more. Let’s send them a message that will echo from the Rockies all across America: Thanks, but no thanks. In this case, the third time is not the charm."
"Barack Obama will lead us away from division and fear of the last eight years back to unity and hope. If, like me, you still believe America must always be a place called Hope, then join Hillary, Chelsea and me in making Senator Barack Obama the next President of the United States."
Senator Joe Biden (Wednesday, August 27, 2008):
"Let me make this pledge to you right here and now. For every American who is trying to do the right thing, for all those people in government who are honoring their pledge to uphold the law and respect our Constitution, no longer will the eight most dreaded words in the English language be: 'The vice president’s office is on the phone.'”
"You can learn an awful lot about a man campaigning with him, debating him and seeing how he reacts under pressure. You learn about the strength of his mind, but even more importantly, you learn about the quality of his heart. I watched how he touched people, how he inspired them, and I realized he has tapped into the oldest American belief of all: We don’t have to accept a situation we cannot bear. We have the power to change it. That’s Barack Obama, and that’s what he will do for this country. He’ll change it."
Susan Eisenhower (Thursday, August 28, 2008):
"I believe that Barack Obama has the energy and the temperament to lead this country. He knows that we can either advance on the distant hills of hope or retreat to the garrisons of fear. As our standard bearer, he can mobilize a demoralized America and inspire all of us to show up for duty. Discipline will be required, as will compromise, flexibility and quiet strength."
Vice President Al Gore (Thursday, August 28, 2008):
"With John McCain's support, President Bush and Vice President Cheney have led our nation into one calamity after another because of their indifference to fact; their readiness to sacrifice the long term to the short term, subordinate the general good to the benefit of the few and short-circuit the rule of law."
"So why is this election so close? Well, I know something about close elections, so let me offer you my opinion. I believe this election is close today mainly because the forces of the status quo are desperately afraid of the change Barack Obama represents. There is no better example than the climate crisis. As I have said for many years throughout this land, we're borrowing money from China to buy oil from the Persian Gulf to burn it in ways that destroy the future of human civilization. Every bit of that has to change."
"And it just so happens that the climate crisis is intertwined with the other two great challenges facing our nation: reviving our economy and strengthening our national security. The solutions to all three require us to end our dependence on carbon-based fuels."
"Then let us leave here tonight and take the message of hope from Denver to every corner of our land, and do everything we can to serve our nation, our world-and most importantly, our children and their future-by electing Barack Obama President of the United States."
Senator Barack Obama (Thursday, August 28, 2008):
"These challenges are not all of government's making. But the failure to respond is a direct result of a broken politics in Washington and the failed policies of George W. Bush. America, we are better than these last eight years. We are a better country than this."
"The truth is, on issue after issue that would make a difference in your lives - on health care and education and the economy - Senator McCain has been anything but independent. He said that our economy has made 'great progress' under this President. He said that the fundamentals of the economy are strong. And when one of his chief advisors - the man who wrote his economic plan - was talking about the anxiety Americans are feeling, he said that we were just suffering from a "mental recession," and that we've become, and I quote, 'a nation of whiners.'"
"You see, we Democrats have a very different measure of what constitutes progress in this country. We measure progress by how many people can find a job that pays the mortgage; whether you can put a little extra money away at the end of each month so you can someday watch your child receive her college diploma. We measure progress in the 23 million new jobs that were created when Bill Clinton was President - when the average American family saw its income go up $7,500 instead of down $2,000 like it has under George Bush."
"Ours is a promise that says government cannot solve all our problems, but what it should do is that which we cannot do for ourselves - protect us from harm and provide every child a decent education; keep our water clean and our toys safe; invest in new schools and new roads and new science and technology. Our government should work for us, not against us. It should help us, not hurt us. It should ensure opportunity not just for those with the most money and influence, but for every American who's willing to work."
"Now, many of these plans will cost money, which is why I've laid out how I'll pay for every dime - by closing corporate loopholes and tax havens that don't help America grow. But I will also go through the federal budget, line by line, eliminating programs that no longer work and making the ones we do need work better and cost less - because we cannot meet twenty-first century challenges with a twentieth century bureaucracy."
"And just as we keep our promise to the next generation here at home, so must we keep America's promise abroad. If John McCain wants to have a debate about who has the temperament, and judgment, to serve as the next Commander-in-Chief, that's a debate I'm ready to have."
"We are the party of Roosevelt. We are the party of Kennedy. So don't tell me that Democrats won't defend this country. Don't tell me that Democrats won't keep us safe. The Bush-McCain foreign policy has squandered the legacy that generations of Americans -- Democrats and Republicans - have built, and we are here to restore that legacy."
"The times are too serious, the stakes are too high for this same partisan playbook. So let us agree that patriotism has no party. I love this country, and so do you, and so does John McCain. The men and women who serve in our battlefields may be Democrats and Republicans and Independents, but they have fought together and bled together and some died together under the same proud flag. They have not served a Red America or a Blue America - they have served the United States of America. So I've got news for you, John McCain. We all put our country first."
"I get it. I realize that I am not the likeliest candidate for this office. I don't fit the typical pedigree, and I haven't spent my career in the halls of Washington. But I stand before you tonight because all across America something is stirring. What the nay-sayers don't understand is that this election has never been about me. It's been about you."
"America, we cannot turn back. Not with so much work to be done. Not with so many children to educate, and so many veterans to care for. Not with an economy to fix and cities to rebuild and farms to save. Not with so many families to protect and so many lives to mend. America, we cannot turn back. We cannot walk alone. At this moment, in this election, we must pledge once more to march into the future."
If you missed any of these and many other fantastic speeches, google them, watch them on YouTube, click on the speakers' names and read the full text for yourself. But more than that, believe these words, because these words are perhaps all that stands between us and a catastrophic future, a future too dismal to imagine, a future that, if it includes a McCain presidency, will destroy us all as surely as day turns to night. So get out there and work your butts off for Barack Obama (& Joe Biden) - the future of the planet demands nothing less. Obama/Biden '08!
So, Obama's campaign selected Senator Joe Biden (D - Delaware), granted not the most creative pick, but here, today, I am prepared to defend the choice as a pragmatic one. And after eight years of right wing republican rule, I'll take pragmatism over neo-cons anytime. Here, as I see it, are the strengths that Biden brings to the ticket:
I just couldn't let this occasion pass without giving a shout out to our grrrrl, Dr. Rachel Maddow, Rhodes Scholar and all around great gal who just landed her own show on MSNBC. The show is set to kick off on September 8th and will follow the insightful Mr. Keith Olbermann at 8:00pm (CST). This move on the part of MSNBC is another sign that progressives are stealing more and more air time from the staid and stuffy usual political pundits that inhabit the airwaves and the myriad cable news channels. I love me some Rachel Maddow, unfortunately for me, she's taken. She and her partner, Susan Mikula, share homes in Manhattan and West Cummington, Massachusetts.
This morning I was perusing the NYTimes - an activity that I do most every Sunday and I turned as I do most every Sunday to the op-ed column written by Maureen Dowd (MoDo to those of us who feel a sort of familiar relationship with this usually witty writer). She, of course, focused her column this morning on the revelation that John Edwards had an affair in 2006, an affair that he has already confessed to his wife (whom he did not leave). I make a point of these details of Edwards' affair not to excuse his actions, but rather to contrast Edwards' infidelity with another man who is much closer to becoming president (John McCain).
After twelve long years of seemingly endless litigation, DC District Court Judge James Robertson finally gave a monetary amount to the betrayal of the Individual Indian Money account holders who have lost by most honest assessments billions and billions of dollars in mismanaged trust funds. The number that the Judge settled on was $455,600,000.00 - not even close to one billion dollars and a fraction of what the plaintiffs were seeking ($47 billion dollars). Once again the federales have screwed the Native people of this land, many of whom have died during the last twelve years of drawn-out litigation while the government kept delaying hearings, requesting postponements and otherwise attempting to wear the plaintiffs down and drain their meager resources so that they would settle for an amount far lower than what the government knew that they owed. Elouise Cobell (the lead plaintiff in this class action lawsuit), not unexpectedly, disagrees with the ruling:
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