What if Democrats behaved more like Republicans?

Tom Tomorrow asks, and answers, the question. Read More......

Kay Bailey Hutchison wants to return Texas education to the good ole days -- of segregation?

Media Matters asks "Does Sen. Hutchison Support Segregation?" Here's why:

While announcing her campaign for governor of Texas from the high school she attended, Sen. Kay Bailey Hutchison said, "I want to help to create an education system like I had." The only problem? Sen. Hutchison attended a "segregated white school."

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Obama approves $10.5 million pay plan for new AIG CEO

Technically it is Obama's "pay czar" but ultimately, this is Obama's team and Obama's decision. Obviously in order to attract a quality executive for the troubled company, AIG (the government, actually) needs to pay good money. In this case new CEO Benmosche will be receiving the average CEO pay assuming he achieves whatever goals have been established. It hardly sounds like the "claw back" big talk that we've heard from Obama's "pay czar" but the big talk already sounded wobbly. Especially during a recession, the average CEO pay sounds especially comfy. It doesn't leave me with the impression that any significant changes are coming and that is yet another major disappointment. Nobody forced Obama to talk about "change" and a new way of running government so I don't think it's asking too much to follow through with actions to back up the words. More of the same on top of more of the same is frustrating.

American International Group, the insurer that received billions of dollars in a U.S. bailout, said on Monday that it will pay newly-appointed Chief Executive Robert Benmosche an annual salary of $7 million.

In a filing with the U.S. Securities and Exchange Commission, AIG said the salary would consist of $3 million in cash and $4 million in fully-vested common stock. He will also be eligible for a performance bonus of up to $3.5 million.

The pay has been approved in principle by Washington's new pay czar Kenneth Feinberg, said AIG.

At the moment there is very little to suggest a radical, long term downward move in CEO pay. The numbers did go down last year but as you can see here, it's still very inflated. Contributing to the problem and maintaining the status quo in a government owned business during a Democratic administration - during a recession, no less - is beyond belief. The runaway pay problem is now owned by Obama. Read More......

Robert Reich: Without bailouts, there would be no Wall Street

Here's one former Clinton official thought out to be on the inside instead of the friends-of-Robert-Rubin team that keeps kicking the country. Read the entire blog post on the absurd "comparable pay" theory that Obama has bought into for Wall Street. As I've said before, if Wall Street doesn't like making less, let them discover capitalism and see just how many jobs are out there that will pay such outrageous amounts of money. Go ahead. Test the waters. These people are ridiculously over-rated and Obama somehow believes this is acceptable.

"Comparable" pay is a ridiculous standard to begin with, and the argument that $10 million, or even $7 million, is necessary to keep talent is absurd on its face. I needn't remind you that over the last several years Wall Street has exhibited a truly astonishing lack of talent. So why do any of Wall Street's big banks have the audacity to offer this sort of pay? Because the Street is back to the same, relentlessly untalented tactics that made it lots of money before the meltdown -- which also forced taxpayers to bail it out, caused the world economy to melt down, and tens of millions of people to lose big chunks of their life savings. Goldman Sach's chief financial executive asserted recently that its business model hadn't changed one bit from what it was before the meltdown. Goldman is making big money again, but its business model got it into such deep trouble it needed a multi-billion dollar taxpayer bailout as well as a bailout of AIG, which owed it money. Without these bailouts, there'd be no "talent" because there'd be no Goldman, no Citi, no Street.

Even if you believe Wall Street needs "talent," I suspect that firms such as Citi can get all the talent they need for far less than an average of $10 million each. Maybe even $1 million? The whole system of "comparable" pay is propped up by a zero-sum self-perpetuating competition in which the price of so-called "talent" is determined by how much every other bank is willing to pay for "talent." If every bank decided to pay $1 million, that would be the "comparable" price of talent on the Street. I mean, it's not as if this economy has so many other $1 million-a-year positions begging for Wall Street executives and traders.

There's a more basic issue here. The fact that these big banks have been judged "too big to fail" means their top executives and traders know they can take even bigger risks now, because we taxpayers will bail them out. So inevitably part of their firm's earnings, based on such risk-taking, now come as a result of this public insurance policy. When risks pay off, as many are doing now that the stock market is showing signs of life, they reap large rewards. When the risks turn really bad, you and I and other taxpayers will pick up the pieces.

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Obama "has not begun working with Congress to repeal" DOMA

Greg Sargent finds a key tidbit from today's Washington Post:

No action from President Obama on DOMA at all yet? Check out this nugget buried in today’s Washington Post:

The Obama administration, managing a busy and complicated legislative agenda, has not begun working with Congress to repeal the act, congressional and White House sources said.

While gay rights advocates are giving Obama props for his latest move, that seems noteworthy and could draw another round of criticism.

Yeah, "less bad" was the new "okay" with that brief.

But, no action is not acceptable. DOMA won't repeal itself. We need presidential action. When Team Obama really wants something done on Capitol Hill, they work at it. When they don't work at it, that speaks louder than anything. Read More......

This just in: Obama supports the public option again

This is getting very tiresome. Read More......

Reader's Digest filing for bankruptcy

It still exists?

Until recently its prosperity appeared to know no bounds; it published 50 global editions in 21 languages, but its move to seek Chapter 11 bankruptcy protection, which does not affect international editions including the British one, is a pre-emptive device aimed at freeing the company of debts to allow it to trade back to happier balance books.

But it casts a shadow on a long-standing byword for publishing prosperity, whose audited circulation of 8.1 million is still the highest of any magazine in the US.

The company's managers, in their comfortably named headquarters of Pleasantville, New York, said yesterday that the Chapter 11 filing would allow them to push ahead with "growth and transformational activities".

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The risk to Obama's public image

We are at a point in Obama's presidency that is very similar to one we faced last summer, during the presidential race. There were increasing concerns that the Obama campaign wasn't being forceful enough in taking on McCain's charges that Obama was a celebrity. The attacks were starting to take their toll, and worse, there was some concern that the public would begin to wonder if Obama was tough enough, and whether that's why he wasn't fighting back harder. The Obama campaign eventually got the message, and he fought back, and won the election.

I think President Obama is entering similar territory today, as a result of his lack of leadership in the health care debate, among other actions. And just as candidate Obama courted the risk of being labeled a wimp in the public eye, President Obama's recent actions are now starting to generate the same kind of bad publicity.

The fact that articles like this ("Does President Obama have the guts?") are being written by reporters who are friendly to Obama is not good news. If the public begins to question Obama's strength, and strength of character, it's going to be very hard to earn back their confidence, ever.

Here's an excerpt from Roger Simon's piece:

Could Hillary Clinton have been right about Barack Obama?

Could she have been right when she said that he was the candidate of lofty promises —“the skies will open, the light will come down, celestial choirs will be singing and everyone will know we should do the right thing and the world will be perfect” — and not the candidate of real leadership?

In her former life as a presidential candidate, Clinton warned voters that Obama would let them down. She warned them that when the going got tough, he would fold up.

She said it was not just a matter of Obama lacking experience — that was the least of it — but that he lacked the strength, the toughness, the will to get the job done."

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The right wing's latest insane conspiracy theory: an email enemies list

Is there no end to the insane conspiracy theories promulgated by the right wing. Check out this one, via Media Matters:

Conservative media have baselessly suggested that people who reportedly claim to have received unsolicited email from White House adviser David Axelrod may have been added to a White House "enemies list" after emails they sent that were critical of the Obama administration were purportedly forwarded to flag@whitehouse.gov. These media figures have failed to provide any credible evidence in support of this conspiracy theory.

MM has video of the media figures pontificating on their latest baseless charge.

John often says that the right accuses us of doing the things they actually do. This may be one of those cases. Our side doesn't think of the crazy things we're accused of. But, people on the right seem to take it for granted that these things happen. I wonder if they actually practice what they rail about. We think they're insane ideas, but this is probably standard operating procedure in right wing world. Read More......

Robert Novak dead at 78

The "prince of darkness" Robert Novak, died today from brain cancer. Read More......

Saying thanks and rewarding good behavior is important, too.

As everyone knows, we've been pretty upset at the Obama administration and some members of Congress over the health insurance reform debate. On Sunday, it looked like the Obama administration was going to drop the public option -- a provision that Obama has repeatedly told us is critical to reining in the insurance industry. That's proven to be unacceptable to many members of Congress. Since Sunday, a number of progressive members of Congress have stood up and basically said, ENOUGH!

Those members need to hear a big thank you from the progressive community. We need to strengthen their resolve. And, while we're quick to call out bad actions, we need to reward good behavior.

thereisnospoon at DailyKos provides links for several ways to say thanks:

On the issue of healthcare, the time has come to reward those Democrats who have committed to standing up for the public option by refusing to vote for a bill that does not include it. Fortunately, the always excellent folks at Democracy for America have made it easier for us to thank our healthcare heroes for doing the right thing, by giving them words of positive encouragement for continuing to stand up for the public option.

Piggybacking and expanding on that idea is an ActBlue page created by Howie Klein called Take the Pledge to financially reward those 64 representatives who are doing the right thing. This is part of an effort being put together by Jane Hamsher, Howie Klein, Darcy Burner, my brother Dante Atkins (hekebolos), myself and others that I am dubbing the Carrots, Not Sticks Initiative to help generate fundraising, blogosphere attention and broader media attention for members of the Progressive Caucus and for likeminded Senators. If the insurance industry and other big GOP donors are going to help reward those who dance to their tune, the least we can do is to help reward those who do what we want in whatever way we can, through the power of small-dollar fundraising.

The push back is working -- at least they're hearing it in the Obama administration. Secretary of HHS Kathleen Sebelius, along with Robert Gibbs, delivered the message on the Sunday talk shows that the Obama administration was willing to drop the public option. Today, Sebelius backed away from those comments and spoke about the importance of the public option and dismissed the idea that it's not part of the Obama plan (although, they're open to other ideas.)
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Another blistering opinion piece about Obama and health care reform

They're all over the papers this morning, from respected liberal voices. This one from Eugene Robinson:

Clearly, the White House feels itself on the defensive. But why?

Consider the political landscape. Democrats control the White House and both houses of Congress. No matter how disciplined Republicans are in opposing any reforms -- even if Republican objections are accommodated -- they don't have the votes to kill a final bill.

If conservative "Blue Dog" Democrats are successful in nixing a public health insurance option and watering down other reforms, progressive voters have a right to ask why they went to such trouble to elect Democratic majorities and a Democratic president. But the Senate can still resort to a parliamentary maneuver that would require only 51 votes, rendering most objections irrelevant. Historical trends indicate that it's unlikely the Democrats will expand their majorities in 2010. Politically, therefore, there's not likely to be a better moment for health reform than right now.

Robinson raises a good point. It's pretty pathetic admitting that you can't even get 51 votes in your own party. The point is, you can. If you choose to lead. Read More......

Bob Herbert: Obama plan to be windfall for insurance companies

This is just sick.

The hope of a government-run insurance option is all but gone. So there will be no effective alternative for consumers in the market for health coverage, which means no competitive pressure for private insurers to rein in premiums and other charges. (Forget about the nonprofit cooperatives. That’s like sending peewee footballers up against the Super Bowl champs.)

Insurance companies are delighted with the way “reform” is unfolding. Think of it: The government is planning to require most uninsured Americans to buy health coverage. Millions of young and healthy individuals will be herded into the industry’s welcoming arms. This is the population the insurers drool over.

So just to get this straight. You and I are probably going to pay more in taxes, regardless of what they tell us, and our country is going to be set back another trillion bucks, so that Blue Cross can make even more money, while continuing to up our premiums by 25% a year with no commensurate increase in benefits. It's good to be king. And let's not forget the drug companies:

The White House, for its part, agreed not to seek additional savings from the drug companies over those 10 years. This resulted in big grins and high fives at the drug lobby. The White House was rolled. The deal meant that the government’s ability to use its enormous purchasing power to negotiate lower drug prices was off the table.

This is what it feels like to be rolled. And played. Read More......

Republican party still opposes health care reform, even after Obama caved - imagine that

Maybe if we carve out 40% of the health care reform proposal as tax cuts... Read More......

Tuesday Morning Open Thread

Good morning.

Busy week already. There was actually some forward movement on LGBT issues yesterday from Team Obama. We needed to see that from them. It's unfortunate that we had to go through the battle over the DOMA brief. But, clearly, someone over there heard us.

Hopefully, someone over at the White House is listening us now on health insurance reform. There has to be a public option to rein in the insurance industry. Obama has stated that repeatedly. I believe him. But, in Rahm's White House, just because Obama says something, apparently, it doesn't hold much weight. Someone needs to rein him in. And, as we learned from the DOMA brief, if you want the attention of the Obama administration, be loud and be aggressive. Don't hold back. It's the only way they listen.

Also, it helps to speak the truth if one doesn't want anything from the Obama administration, like a job or help with clients. I just want Obama to deliver on his promises.

Let's get it started... Read More......

Average pay for bankers in London rose 6% last month

Reform, anyone? How many people in the real world do you know who have seen such increases during the recession? This system is rotten to the core. Each time the numbers go up they have a new excuse for justifying but in the end it always goes up.

Average pay for financial employees in London rose 6 percent in July from June due to intensified competition for "star performers" and confidence continued to improve across the industry, a survey showed on Tuesday.

The average salary paid to financial sector workers in London rose to 53,223 pounds ($87,220) in July, up 6 percent from June but down 1 percent from a year ago, recruiters Morgan McKinley said.

And remember, the salary alone is only a small piece of the puzzle. Bankers receive bonus money that can double their annual pay and it's not unusual to generate much more. Read More......

At least someone is building houses out there

Very retro but I loved Lego as a kid.

Lego has positively thrived during the recession, as parents revert back to longer-lasting toys. Its parent company, Lego Group, has now posted a two-thirds rise in pre-tax profits to £99.5m, boosted by a 20 per cent rise in consumer sales in the UK. Total sales rose to £469m over the first half of 2009.

Retailers of board games and other traditional toys have also seen a renaissance in demand during the downturn. Last month, Hamleys cited Barbie and Transformers, as well as Lego, as toys it expects to do well this Christmas.

Part of the appeal of Lego during a recession is its "longevity", said Marko Ilincic, the managing director of Lego UK. "Parents spend lots of money on plastic imported toys, but they only do what it says on the tin. But children take Lego to pieces, build them up again and add it to other Lego, and that gives it longevity."

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Anti-corruption takes another hit in Africa

Bad news for Zambia. If only corruption was limited to Africa though. In the west, our leaders cash in *after* they leave office because that somehow makes it all better. The Independent:

Prosecutors had chosen to pursue only a fraction of the monies alleged to have been looted by Mr Chiluba, which a UK court in 2007 estimated at more than $57m, in order to keep the case watertight. The former president's wife, Regina, was convicted in March by a Zambian court of receiving stolen goods but was freed pending her appeal and was in court with her husband to witness the acquittal.

Hopes of a conviction had been high, following the 2007 civil action, brought by Zambia's attorney general in Britain. The judge in that case had concluded that Mr Chiluba's official earnings after a decade in office amounted to $100,000 and yet, during the same period, he had spent five times that amount in a single shop, Boutique Basile, an exclusive outfitters in Geneva.

Investigators uncovered an extraordinary decade of spending while in office that saw the notoriously vain politician amass hundreds of designer outfits. The prosecution, led by Michael Sullivan QC, described accounts in several countries, including the UK, Switzerland and the Caribbean, that had been used to cover the president's lavish spending under the pretence of financing overseas intelligence operations.

Mr Justice Smith said in his ruling that Mr Chiluba should be "ashamed of himself" and ordered him to repay $57m in stolen monies. The judge remarked that "the president (unlike the emperor) needs to be clothed".

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Credit card defaults up yet again

Maybe the "recovery" talk could hold off until statistics such as this level off.

Capital One Financial Corp's U.S. credit card defaults and delinquencies rose in July, as Americans kept losing jobs and struggled to pay their debts.

In a regulatory filing on Monday, Capital One said the annualized net charge-off rate for U.S. credit cards -- debts the company believes it will never collect -- increased to 9.83 percent in July from 9.73 percent in June.

Capital One, one of the largest issuers of Visa and MasterCard credit cards, said accounts at least 30 days delinquent -- an indicator of future loan losses -- inched up to 4.83 percent from 4.77 percent.

For U.S. auto loans, Capital One's charge-off rate rose to 4.26 percent in July from 3.89 percent in June, and the delinquency rate increased to 9.22 percent from 8.89 percent.

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Jefferson, Franklin, Rivkin

Just like other modern presidents, Obama dished out the big two (London and Paris) to the big money donors. Muppet diplomacy.

At 47, Mr. Rivkin is the youngest American envoy in Paris in 56 years. His father was a well-regarded diplomat, but the son has carved out his place in life in Hollywood. And, of course, he raised over $500,000 for Barack Obama in Southern California last year, and the palatial residence on the swanky rue du Faubourg St.-Honoré is his reward.

To judge by a story from 2002, Mr. Rivkin may inject new and different life into the palatial but ritualized world of Parisian diplomacy.

In 2002, Mr. Rivkin, something of a Tinseltown wunderkind, was chief executive of the entertainment world’s Jim Henson Company. For a Christmas movie featuring the world-beloved Muppets, a Henson crew filmed Kermit and Snoop Dogg rapping together.

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