Should Congress investigate Wall Street as they did after '29?

It sounds reasonable to me and I'll even stomach a bit of grandstanding if that's what it takes to air this out. The Obama economic team leaves me concerned that they don't understand the problems or hostility to the crisis and they don't have the aggressiveness to fight the fight. Congress may have its faults but I suspect they also are going to be hearing enough from voters to see that this needs to happen.

Most relevant to today, Congress has investigated the causes behind economic downturns, using the power of investigation to raise public concern and improve knowledge of the economy.

This was the case with the famous Pecora Commission, the Senate Committee on Banking and Currency formed in the period between President Franklin Delano Roosevelt's election in November 1932 and his inauguration in March. It was a commission that lasted through May 1934.

The commission set out to discover what had led to the stock market crash in 1929. Committee Chairman Duncan Fletcher of New Jersey placed Ferdinand Pecora, the committee's chief counsel, in charge of the investigation.

Pecora, a tough New York prosecutor, proved to be a masterful interrogator. "I looked with astonishment," said his staffer John Flynn, a former journalist, "at this man who, through the intricate mazes of banking, syndicates, market deals, chicanery of all sorts, and in a field new to him, never forgot a name, never made an error in a figure, and never lost his temper."

Pecora brought some of the most prominent figures from Wall Street to speak with the commission and to answer difficult questions.

Americans learned that the tycoon J.P. Morgan had not paid income taxes for three years. Even worse, tax evasion was common among the wealthy. In his new book on FDR's Hundred Days, Adam Cohen recounts how the hearings revealed how National City Bank had caused enormous problems by mixing commercial and investment banking, reaping huge profits as customers were persuaded to make terrible investments.

Preferential treatment on stock, Americans learned, was routine as certain clients on Morgan's "preferred list" were given the best offers. By the time it closed, the commission produced thousands of pages of data about the inside operations of the financial world.

As a result of the Pecora Commission, public pressure for banking reform greatly intensified. The 1929 crash seemed like much less of a mystery when Pecora was done.

Congress passed historic banking regulations during the New Deal, including the Glass-Steagall Banking Act of 1933, the Securities Act of 1933, and the Public Utility Holding Company Act of 1935, all of which vastly expanded the role of the federal government in overseeing and regulating Wall Street.

Read More......

Even the NFL is cutting salaries

Well, at least one person is cutting. Whether this will carry over to players is another story, but it's amazing to see this. Professional football has not been lacking for revenue in recent years (though they have experienced a decline) though it's difficult to imagine their advertising, attendance and other related revenues not dropping during the recession.

The head of the National Football League will take a pay cut for the current fiscal year and freeze his salary for the coming year, the league announced Wednesday.

The move comes two months after the NFL cut about 15% of its staff.

NFL Commissioner Roger Goodell will give up about 20% to 25% of his $11 million salary for the 2008 budget year, which ends March 31, league spokesman Brian McCarthy said. Goodell will also forgo a scheduled raise in his contract for the coming year, and the rest of the NFL's executive staff will take similar cuts, he said.

"All of us understand that it will continue to take collective sacrifice to get through this challenging economic environment, but these and other steps by our office and clubs will enable us to be more efficient and better positioned for future growth," McCarthy said in a statement announcing the decision.

Goodell is a well paid and well respected professional so it's interesting to see him accept this cut despite not losing billions or trillions. Players next? Read More......

Scientists document freaky fish with see-through head

Okay, not the most scientific of explanations, but this is very cool. As the reader who sent it to me notes, it looks computer generated, and it's not. And to add to the freakiness, its eyes (which are the big green things, not the eye-looking things above its mouth (those are actually nostrils)) moves around in its head from the top of the head to a forward position. Just totally cool.

Read More......

Microsoft accused - again - of anti-gay bigotry in operation of Xbox

I have to tell you, considering the fierce competition between Xbox and PS3, it's not clear to me why Microsoft seems hellbent on creating controversy surrounding this game. But it seems that, yet again, we have a complaint that Microsoft is operating its gaming environment in a bigoted manner. This latest report comes via the blog of the Consumers Union, i.e., the Consumer Reports people. When they say that Microsoft now has a history of operating its Xbox operations in a bigoted anti-gay way, then I start to take notice. The gist of the ongoing complaints? Microsoft thinks it's dirty for gamers to refer to themselves as "gay" in their online profiles. Microsoft reportedly even suspended one guy's account because his last name was "Gaywood."

Considering the fact that people who play Xbox live are quite literally chatting with strangers all over the world, it's a bit much for Microsoft to suggest that this is some kind of children's haven where the little ones must be protected from finding out about "the gays." These "kids" are playing games based on murdering strangers, and they're striking up conversations and friendships - and chatting by VIDEO - with people they don't even know. So spare us the talk about protecting the kids. It's not Microsoft's job to play cyber-nanny and protect its customers from finding out that some other of its customers are gay. What's next? Banning any mention of a customer being black, lest we offend that little Hitler baby? Read More......

Troubled Swiss bank UBS places $31 billion incorrect order

Oops. Maybe Phil Gramm can step in and help the floundering bank sort out there problems instead of chasing handouts from governments. It's scary to think these banks have so much power and authority over the global economic system when they can make such costly errors, so easily.

Swiss bank UBS Japanese brokerage unit UBS Securities mistakenly placed orders to buy and sell 3 trillion yen ($30.91 billion) worth of convertible bonds issued by Japanese videogame maker Capcom, the Tokyo bourse said on Wednesday.

The Tokyo Stock Exchange said it received a cancellation request for the cross-trade, in which UBS Securities simultaneously placed both the buy and sell orders using the bourse's trading network system.

Both orders amounted to 3 trillion yen.

Read More......

The Hug

From DailyKosTV.

Read More......

The Party of Beavis and Butthead

Krugman on Jindal:

[L]eaving aside the chutzpah of casting the failure of his own party’s governance as proof that government can’t work, does he really think that the response to natural disasters like Katrina is best undertaken by uncoordinated private action? Hey, why bother having an army? Let’s just rely on self-defense by armed citizens.

The intellectual incoherence is stunning. Basically, the political philosophy of the GOP right now seems to consist of snickering at stuff that they think sounds funny. The party of ideas has become the party of Beavis and Butthead.

Read More......

Make sure to thank John McCain for the traffic

Reader S writes:

Say, I was at O'Hare last week and overheard security guys talking about Obama being in town. They said it was a real bitch when he would motorcade, but how thankful they were that he was now using the helicopter. A lot less hassle. I can only imagine that this is saving taxpayers money in other ways. Didn't think anything of it until McCain put his foot in his mouth.

Remember what the Republicans did to Nancy Pelosi when the House sargeant at arms requested that an Air Force plane be made available for her travel, for security reasons? That's exactly what John McCain is trying to do to Barack Obama by complaining about the presidential helicopter, Marine One. McCain, who may think he's still running for president against Obama, is simply playing the House Republican game of "I gotcha." Bitter, party of one. Read More......

RNC chair Steele on civil unions: 'Are you crazy?'

Gratuitously nasty response from the new head of the Republican party:

GALLAGHER: Do you favor civil unions?

STEELE: No, no no. What would we do that for? What are you crazy? No. Why would we backslide on a core, founding value of this country. I mean this isn't something that you just kind of like, "Oh well, today I feel, you know, loosey-goosey on marriage." I mean, this is a foundational principle of this country. It is a foundational principle of organized society. It isn't something that, you know, in America we decided, "Let's make it between a man and a woman; oh well now, let's change our mind and make it between anyone and anyone." No.

GALLAGHER: So no room even for a conversation about civil unions, in your mind?

STEELE: What's the difference?

GALLAGHER: Well, you're not calling it marriage.

STEELE: Is it?

GALLAGHER: I don't know. I mean, I... I...

STEELE: I mean, like Sarah Palin said, you put lipstick on a pig, it's still a pig.

Lest we forget, George W. Bush himself said he had no problem with recognizing civil unions for gay couples.

Gibson: They could be born that way. If that’s the case, just for sake of argument, that’s an unalterable characteristic for them. That’s like being black or being a woman. So, how can we deny them rights in any way to a civil union that would allow, give them the same economic rights or health rights or other things?

Mr. Bush: I don’t think we should deny people rights to a civil union, a legal arrangement, if that’s when a state chooses to do so.

Gibson: But the platform opposes it.

Mr. Bush: Well, I don’t.

For the life of me, I will never understand why gay rights advocates didn't jump on Bush's comments and re-run them continuously in ads, on the Web, quoting them on TV until they were ingrained in the mind of every American. Even George Bush supports civil unions. But our advocates ignored Bush's comments. Possibly because of the messenger (again, idiotic reasoning - you want a far-right conservative advocating your position, he's far more helpful to persuade people (a la Nixon goes to China) than someone on the far-left). Or possibly because some people find civil unions to be a slap in the face because they're not really marriage. Well, I disagree. Half a loaf is far better than no loaf at all. And once we get civil unions, people will see how innocuous the recognition of gay relationships really is. Not to mention, lots of couples will benefit. Generally, you win rights gradually, not in one fell swoop. In any case, here's the chimp.

Read More......

Holocaust-denying bishop raises fist to TV camera, neo-Nazis come to his defense

From Reuters:

Wearing dark sunglasses, a baseball cap and an overcoat, the tall, gray-haired Williamson was seen by a Reuters reporter in Argentina's main international airport as he entered the boarding area.

The bishop did not respond to questions and raised his fist toward the face of a local TV reporter who was trying to get a comment from him as he walked briskly toward his flight....

Pope Benedict angered Jewish leaders and many Catholics last month when he lifted excommunications on Williamson and three other traditionalists to try to heal a 20-year-old schism within the Church that began in 1988 when they were ordained without Vatican permission.

The Vatican ordered the British-born Williamson to retract his comments, but the bishop responded that he needed more time to review evidence regarding the Holocaust....

German neo-Nazi websites and blogs have published pieces supporting Williamson's stand.

He basically told the Pope to stick it, and the Vatican does nothing about it. "Healing the rift" with Holocaust-deniers is apparently more important than acting like members of the civilized world. What's next? Healing the rift with pedophile priests? Read More......

Conservative columnist David Brooks: Jindal's response was "unfortunate," "insane," and "a disaster"

Read More......

Obama's reviews are in

I posted some reviews of Bobby Jindal's performance last night so I think it's only fair to do the same for Obama. The DNC compiled some of the commentary on Obama's speech. I don't quite think the RNC will be putting together a similar document for Jindal:

CBS Poll: 79% Approve of Plans for Economic Crisis After Speech. CBS News Conducted a Poll of 500 respondents during the speech and they found that before the speech 62% of respondents approved of the President’s plans for the Economic Crisis. After the speech the number rose to 79%. [CBS News Special Report, 2/24/09]

CBS Poll: 69% Understand President’s Economic Plans; Up From 56% Before Speech. CBS News Conducted a Poll of 500 respondents during the speech and they found that before the speech 56% of the respondents believed they understood the President’s plans for the Economic Crisis. After the speech the number rose to 69%. [CBS News Special Report, 2/24/09]

David Brooks: This “Was An Excellent Speech” That “Perfectly Captured The Tenor Of The Country.” “I thought it was an excellent speech. It’s been a long time since I’ve really been able to rave over an Obama speech, but I thought this was a speech that perfectly captured the tenor of the country.” [PBS, NewsHour with Jim Lehrer Coverage of Presidential Address, 2/24/09]

Brooks: Speech Was “Outstanding,” Hits “Exactly The Right Tone,” and “Will Really Galvanize People.” “The essential message was ‘no more fooling around,’ and I thought that was exactly the right tone to take…So just as a speech, as an explanation, ‘here’s what I’m going to do,’ I thought it was outstanding. It will really galvanize people.” [PBS, NewsHour with Jim Lehrer Coverage of Presidential Address, 2/24/09 ]

Howard Fineman: President Obama Earned “Great Applause” and Respect from Republicans and Democrats Alike. The President “I think won great applause, that’s a measure of respect, not only from Democrats, but most of the Republicans in that room who realize sitting in that chamber what a political talent they are dealing with.” [MSNBC, Countdown with Keith Olbermann, 2/24/09]

Fineman: “The Best Budget Speech Anyone Ever Gave.” "This was the best darn budget speech that anyone ever gave because he gave it a sense of lift and drive and competence. The guy just has an ability to exude a sense of confidence in very tough circumstances." [MSNBC, Countdown with Keith Olbermann, 2/24/09]

CNN’s Dana Bash: “More Of A Bipartisan Tone” In The Chamber During President’s Speech Than Past Eight Years. “I was also in the chamber Anderson, during the president’s speech and certainly as opposed to what we saw for the past eight years, particularly the past couple years with President Bush, there definitely was more of a bipartisan tone in terms of the kind of reaction he got.” [CNN, Anderson Cooper 360, 2/24/09]

CNN’s David Gergen: President’s Speech Was “Most Ambitious… We’ve Heard In This Chamber In Decades.” “This was the most ambitious president we’ve heard in this chamber in decades. The first half of the speech was FDR fighting for the New Deal. The second half was Lyndon Johnson fighting for the Great Society and we have never seen those two presidents rolled together in quite this way before.” [CNN, Anderson Cooper 360, 2/24/09]

Associated Press: Obama “Used Address to Tap the Deep Well of American Optimism…” that “Great Presidents Embody.” “The president used his address to Congress on Tuesday night to tap the deep well of American optimism — the never-say-die national spirit that every president tries to capture in words. And great presidents embody…The themes of responsibility, accountability and, above all, national community rang throughout an address carefully balanced by the gravity of its times.” [Associated Press, 2/24/09:]

Fox News’ Major Garret: President's Speech is Bi-Partisan: "Well I think what we’re seeing right there playing out there on the floor of the House of Representatives is that continued efforts at bipartisan outreach, and that will be going on be a consistent quality for this President even when Republicans don’t respond in-kind because the White House believes politically it puts the President in a very safe, very productive frame of mind in relationship with the broader American public.” [Fox News, 2/24/09]

Newsweek’s Howard Fineman: President Gave A “Commanding” Performance. “That was as commanding performance, as confident a performance, as in control as I’ve ever seen a President.” [MSNBC, Countdown with Keith Olbermann, 2/24/09]

CBS News’ Jeff Greenfield “One of The Most Effective Uses” of the Medium. "It reminded in some sense of the radio speeches FDR gave where he talked about complicated issues in a simple way… I have to say it was one of the most effective uses of this wonderful imposing scene, the Congress. To talk not to the Congress, there was no ten-point plan. Here’s where we are and this is how I am going to get you out.” [CBS News Special Report, 2/24/09]

CNN.com: “Obama Puts Forth Ambitious Agenda in Speech.” “In his first speech to a joint session of Congress, President Obama outlined an ambitious agenda to revive the economy, saying it's time to act boldly ‘to build a new foundation for lasting prosperity.’ President Obama says the United States will overcome its current economic struggles. Obama focused on the three priorities of the budget he will present to Congress later this week: energy, health care and education.” [CNN.com, 2/24/09]

NBC News’ Chuck Todd: Speech “Hopeful, Uplifting.” “I think this idea that somehow [President Obama] had not been talking hopeful enough about the situation, I have a feeling that President Clinton isn't going to be criticizing him, particularly for that last I'd say ten minutes of the speech where it was all hopeful. It was all uplifting. It was as somebody had said to me, the last part of this speech, you're going to recognize it, is Obama-esque, and I think that it's not hard to look at that last part of the speech and saying he wasn't being hopeful and talking up about the economy.” [NBC, Nightly News with Brian Williams, 2/24/09]

ABC News: President “Greeted With Thunderous Applause;” Speech Earned "Standing Ovation From Both Democrats And Republicans." "Obama was greeted with thunderous applause in the House chamber, as lawmakers reached out to try and get a handshake or in some cases a kiss as the president made his way down the narrow aisle to the podium. Obama is enjoying a 68 percent approval rating after his first month in office, according to the latest ABC News-Washington Post poll, and his pledge to reverse the nation's economic woes earned him an early standing ovation from both Democrats and Republicans."[ABC News, 2/24/09,]

CNN’s Jeffrey Toobin: Speech “Obama’s Best Moment Yet.” “I give him an A.” [CNN.com's Political Ticker, Jeffrey Toobin, 2/24/09]

Keith Olbermann: Speech a “Resounding Debut.” “Repeatedly inspiring members of both parties to rise to their feet in the House Chamber, the 44th President of the United States with a resounding debut at that the highest stage, thus far, of his presidency.” [MSNBC, Coverage of Presidential Address, 2/24/09]

MSNBC’s Rachel Maddow: Speech Received High Rankings from McCain and Obama Voters in Focus Groups. Maddow noted that both McCain and Obama voters on MSNBC’s audience reaction “stayed up at the top the entire speech essentially.” [MSNBC, Coverage of Presidential Address, 2/24/09]

CNN’s Anderson Cooper: Calls President’s Address “Highly Ambitious.” “President Obama just finished his first address to a joint session of congress -- highly ambitious, mixing policy, pep talk, progress report on the economy. Saying America’s best days are ahead of it…” [CNN, Anderson Cooper 360, 2/24/09]

Washington Post: “A Note of Hope at a Time of Crisis.” “Five weeks into an administration already marked by dramatic highs and lows, President Obama sounded a note of hope at a time of crisis tonight, delivering an address to a joint session of Congress heavily focused on the ailing economy and how to fix it. Offering the prospect of a brighter future after weeks of grim rhetoric, Obama sought to put a human face on complex policy proposals. He linked his banking rescue proposal to the ability of a ‘young family’ to ‘finally buy a home.’ And he acknowledged populist anger at the prospect of more Wall Street bailouts, vowing to crack down on CEO bonuses and conduct tough oversight of the hundreds of billions of dollars already pledged to address the economic crisis.” [Washington Post, Ben Pershing, 2/24/09]

Read More......

Jindal's reviews are in: "really poor performance" "unserious" "hackneyed" "childish" (and that's just from one article in Politico)

It was a double whammy for Republicans last night. Not only did Barack Obama deliver a masterful speech, which deftly laid blame on the GOP fore the massive failings of their policies, but the GOP's great next voice, Bobby Jindal, was a dud. A huge dud:

Gov. Bobby Jindal (R-La.) hoped to step into the national spotlight Tuesday night to sound a hopeful yet defiant note in countering President Barack Obama as the GOP’s fresh and exciting face.

Instead, he got panned.

“I think he had a really poor performance tonight, I’m sorry to say,” National Public Radio’s Juan Williams said on a Fox News panel immediately following Jindal’s remarks. Williams went on to call the governor’s remarks “sing-songy” and said Jindal looked “childish” compared to Obama.

“This was not the best from the young man from Louisiana,” he said.

Fortune Magazine’s Nina Easton added flatly, “The delivery was not exactly perfect.”

Yep, he was a disaster. But, he had nothing to work with. Republicans are the party of no ideas and no vision. They are the party of "No." And, they've let Rush Limbaugh become their leader. Because, clearly, Bobby Jindal isn't.

One of the best quotes is from Tom Schaller:

Thomas Schaller, a political scientist at University of Maryland, Baltimore County, said, “Someday, when scholars are trying to fingerpoint the nadir of the post-Bush Republican Party, they may arrive at Jindal's speech tonight,” he said. “Though it was a tough moment for any Republican to give the opposition response, his speech came across as unserious in content and condescending in its tone.”

Spot on. Read More......

Wednesday Morning Open Thread

Good morning.

That was some speech last night by President Obama. That was a President. He was very good -- and set the right tone. Very impressive. We've got a real president now. And, we need a real president after the damage inflicted on us by the last one.

That was some speech last night by Governor Jindal. The exact opposite of Obama. He was awful. Unimpressive and uninspiring. And, using Katrina as an example to tout the GOP? That was sheer brilliance. I still didn't hear one GOP idea besides cutting taxes. They've got no ideas and Bobby Jindal showed that to the world last night. Remember, Jindal has been billed as the GOP's next great leader. The pundits have been salivating over his great prospects. But, let's admit it: Sarah Palin has nothing to worry about from Jindal.

So, let's get threading the news... Read More......

Another TARP bank boondoggle - this time it's the Ritz & LA parties

TMZ has photos from LA including the Northern Trust limos for the posh golf outing. They also link to the exclusive menu for the private party they hosted. Somehow they don't get it no matter what is happening around them. The banksters from Northern Trust were rumored to have been handing out gift bags and calling them "stimulus packages." These people have no sense of public responsibility and deserve to be treated accordingly. Enough. Start firing in the executive boardroom. Today. Maybe then they will get a better sense of urgency.

Jumping on taxpayer anger over junkets and other lavish spending by firms receiving federal aid, Senator John F. Kerry announced today that he plans to r member of the Finance Committee, today announced plans to introduce legislation to end such extravagance.

The Massachusetts Democrat, a senior member of the Senate Finance Committee, said his "TARP Taxpayer Protection and Corporate Responsibility Act" would prevent any recipient of financial bailout funds from hosting, sponsoring, or paying for conferences, holiday parties, and entertainment events. Any TARP recipient that misused the funds would be fined and required to reimburse the government.

Kerry’s office said he was responding to reports that Northern Trust Bank, which received $1.6 billion in bailout assistance, hosted hundreds of employees and clients at expensive hotels in Beverly Hills and threw Hollywood parties that featured performances by Chicago and Sheryl Crow. The bank recently laid off almost 450 workers.

Northern Trust issued a statement saying that the event is an important part of its marketing and was not paid for using government money.

Of course it wasn't. It reminds me of a little kid who doesn't have room in his stomach to each his vegetables but suddenly finds room for ice cream. The "it wasn't from the TARP funds" story isn't going to fly any longer. Game over. Read More......

Latvia cut to "junk" status by S&P;

Being added to the junk status list makes the financial hole even deeper, especially for emerging market countries. Sounds like there are even more to come so if nothing else, there may be benefit to a longer list. Also, it's not as though there are many premier ratings out there, or at least there shouldn't be in this environment.

Latvia on Tuesday became the second European Union nation after Romania to receive a junk level credit rating after Standard & Poor's reduced its rating on the crisis-hit nation.

S&P; cut its rating to BB+/B, which is below investment grade, from BBB-/A-3. The outlook was negative.

S&P; also put neighbors Estonia and Lithuania on credit watch, with negative implications.

The reduction on Latvia followed the fall of the government last week, which some economists have said raises risks for a program agreed with the IMF for a 7.5 billion euro rescue.

"The downgrade of Latvia reflects what we consider is a worsening external outlook and the associated implementation risks on the government's ambitious economic program," said Standard & Poor's credit analyst Eileen Zhang.

Read More......

Privacy in the age of terror?

Not so much. What makes this review interesting is that this comes from someone who worked on the inside of such decisions in the UK. In a rush to fend off terror, the West is moving much too far away from our traditional principles without questioning the process.

Privacy rights of innocent people will have to be sacrificed to give the security services access to a sweeping range of personal data, one of the architects of the government's national security strategy has warned.

Sir David Omand, the former Whitehall security and intelligence co-ordinator, sets out a blueprint for the way the state will mine data - including travel information, phone records and emails - held by public and private bodies and admits: "Finding out other people's secrets is going to involve breaking everyday moral rules."

His paper provides the most candid assessment yet of the scale of Whitehall's ambitions for a state database to track terrorist groups. It argues that while the measures are essential, public trust will be maintained only if such intrusive surveillance is carried out within a strong framework of morality and human rights.

"Modern intelligence access will often involve intrusive methods of surveillance and investigation, accepting that, in some respects this may have to be at the expense of some aspects of privacy rights," he writes in a newly published Institute for Public Policy research paper.

"This is a hard choice, and goes against current calls to curb the so-called surveillance society - but it is greatly preferable to tinkering with the rule of law, or derogating from fundamental human rights. Being able to demonstrate proper legal authorisation and appropriate oversight of the use of such intrusive intelligence activity may become a major future issue for the intelligence community, if the public at large is to be convinced of the desirability of such intelligence capability."

Read More......

Merrill Lynch posts even larger Q4 loss than previously reported

The market loves surprises. Especially when the CEO is being investigated by the New York Attorney General for questionable bonuses.

Merrill Lynch lost $15.84 billion in the fourth quarter, a regulatory filing showed, more than $500 million higher than the loss previously estimated by Bank of America.

The quarterly loss equaled $9.95 per share for the period ended Dec. 26, 2008, according to Merrill's annual report filed on Tuesday with the U.S. Securities and Exchange Commission.

Bank of America had on Jan. 16 estimated that Merrill lost $15.31 billion in the fourth quarter.

Read More......