Calendar note: Martial law and total collapse next year

Is Rush Limbaugh now consulting for Russia? Igor Panarin would have been quite a hit at CPAC. The dean of the Russian Foreign Ministry's diplomat school is now fine tuning his prediction for collapse. After years of predictions, 2010 is apparently the year when it's all going to happen and Sarah Palin's Alaska will beg for mercy and reconnect with Russia. It's difficult to see how Russia could be such a basket case with this kind of thinking at the top.

From the AP:

"There is a high probability that the collapse of the United States will occur by 2010," Panarin told dozens of students, professors and diplomats Tuesday at the Diplomatic Academy — a lecture the ministry pointedly invited The Associated Press and other foreign media to attend.

The prediction from Panarin, a former spokesman for Russia's Federal Space Agency and reportedly an ex-KGB analyst, meshes with the negative view of the U.S. that has been flowing from the Kremlin in recent years, in particular from Vladimir Putin.

Putin, the former president who is now prime minister, has likened the United States to Nazi Germany's Third Reich and blames Washington for the global financial crisis that has pounded the Russian economy.

Panarin didn't give many specifics on what underlies his analysis, mostly citing newspapers, magazines and other open sources.

He also noted he had been predicting the demise of the world's wealthiest country for more than a decade now.

But he said the recent economic turmoil in the U.S. and other "social and cultural phenomena" led him to nail down a specific timeframe for "The End" — when the United States will break up into six autonomous regions and Alaska will revert to Russian control.

Panarin argued that Americans are in moral decline, saying their great psychological stress is evident from school shootings, the size of the prison population and the number of gay men.

Turning to economic woes, he cited the slide in major stock indexes, the decline in U.S. gross domestic product and Washington's bailout of banking giant Citigroup as evidence that American dominance of global markets has collapsed.

Thankfully Russia never sees violence and it's a nation of exclusively manly men like Putin. It's all very impressive. Just like the performance of the Russian stock market. Read the rest of this post...

We're sorry, Rush

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McGruff the Crime Dog punched in his costume head by DC bus driver

You think D.C. isn't a tough town? Ask McGruff the Crime Dog:

D.C. police said a Metro bus driver was charged with assault Saturday after a bizarre incident in which he allegedly punched a patrol officer who was dressed as McGruff the Crime Dog, the popular mascot who educates children about crime prevention.

The driver, Shawn Brim, 39, got out of the bus he was driving at Spring Road and 14th Street NW early Saturday afternoon and punched Officer Tyrone Hardy in the head, police said.

Hardy was wearing his McGruff costume head at the time.

The incident, first reported yesterday by the Washington Examiner, occurred in front of a group of children. Police said Brim was charged with simple assault.

Wait. McGruff is a costume?

The bus driver apparently told police he was trying to be funny. Don't laugh.

Hat tip, PF.

Read the rest of this post...

Top 10 at Merrill made $209 million last year

Not bad considering the Merrill Lynch lost almost $28 billion. When the GOP and the Wall Street apologists attack the Obama plan to move the country beyond the failed policies of the past, this is who they are supporting. It's the American oligarchs and their political muscle who want to keep everything the same.

As bad as 2008 was for Merrill Lynch & Co., it was very good for Andrea Orcel, the firm's top investment banker. Although Merrill's net loss ballooned to $27.6 billion last year, Mr. Orcel, 45 years old, was paid $33.8 million in cash and stock, just shy of his pay in 2007.

While Merrill staggered, 11 top executives were paid more than $10 million in cash and stock last year, say people familiar with the situation. An additional 149 received $3 million or more. The stock awards, which accounted for much of the compensation, have fallen sharply in value since they were made last year.

New York Attorney General Andrew Cuomo has subpoenaed information about Merrill's highest-paid employees in connection with his probe into $3.6 billion in bonuses paid by Merrill in the days before it was taken over by Bank of America Corp. Thus far, Bank of America hasn't turned over the names of Merrill's highest-paid executives, claiming it would help rivals woo its top talent.

The Wall Street Journal has identified most of the top 10 executives and their compensation levels from documents and interviews with people familiar with Merrill's compensation. Merrill's 10 highest-paid employees got a total of $209 million in cash and stock in 2008, up slightly from $201 million paid to the top 10 a year earlier, according to the figures reviewed by the Journal. In 2007, 28 Merrill employees were paid more than $10 million. That total doesn't include Merrill's private-client group, where its brokers work.

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Mormon bigots go all out to kill civil unions in Illinois

Not only are the Mormon bigots once again attacking gays in a state that has nothing to do with Utah, but this time they're directly contradicting the Mormons' earlier statements that they have no problem with civil unions.

You see, after it was revealed that the Mormons were the monetary powerhouse behind the revocation of marriage rights for gays in California, the Mormons went all out with a PR campaign pretending they weren't really anti-gay, only anti- gay marriage. They claimed that, for example, they had no problem with civil unions. Well, surprise. The Mormon bigots are again up to their old tricks, trying to impose their ways on other states and other people who have nothing to do with Mormonism.

And guess what? The Mormon bigots are using the same lies they used in California to kill love in that state. Including the lies that granting gay couples the right to, for example, visit their dying loved one in a hospital will lead to:

1. The "gay lifestyle" being taught to small children in school; and
2. Little girls will be forced to share bathrooms with confused old men.

Funny that a people who forcibly convert dead Holocaust victims to Mormonism against the will of their families, who believe that Jesus and the devil are brothers, and who believe that Jesus had three wives and had sex with one of them, are so interested in having a public discussion about whose morality is better.

I don't know what it says in the Book of Mormon, but in the Bible we're taught not to lie, not to hate, and not to judge lest we be judged. Perhaps the bigots running the Mormon agenda should read it some time. Read the rest of this post...

The White House's secret strategy to destroy Rush Limbaugh. So secret that no one told any of us.

Our corporate media is in a tizzy today, accusing the White House of coordinating the entire media blow up over Rush Limbaugh this past week. Well, that's an interesting bit of fantasy. Let me dissect this for our friends in the media who are a tad too stupid and gullible for our own good.

1. So you mean, Barack Obama is behind GOP chair Michael Steele exploding the Limbaugh story in the news this past week by calling Limbaugh an ugly and incendiary entertainer. Wow, he is powerful, that Obama. Even controlling the head of the entire Republican party, and getting him to say something characteristically stupid. How does Obama do it?

2. And Barack Obama is behind Limbaugh publicly responding to Steele, suggesting that no one should donate to the Republican party, and suggesting that maybe Steele should just kill himself. Again, damn powerful, that all-knowing Oz.

3. Barack Obama is the reason the media, including FOX News, jumped on the Limbaugh-Steele feud and rode it for days. Please explain this one to me. How does it work? A reporter says to his editor, "Hey, did you see the head of the Republican party savaged Rush Limbaugh, right as he was speaking at the largest gathering of conservatives in the country, as their number one speaker, and then Limbaugh responded by suggesting that the head of the party kill himself." Your editor says, "not a story." You say, "Barack Obama?" Your editor says, "Oh my God, print it! But make sure you don't mention anything about Obama in the story because Obama is really the one behind the entire story!"

4. And apparently Barack Obama made Rush Limbaugh say, a good month ago, that he hopes Obama fails at trying to save the economy. You'll recall that this is the reason Rush has been in the news the past month. Obama is so all powerful, he somehow forced Limbaugh to say something stupid. Uh huh. Yeah, that was certainly an unexpected first for Limbaugh, saying something ugly and incendiary. Clearly, Obama was behind it all.

I suppose that Barack Obama was also behind my co-blogger Joe Sudbay and me suggesting to a number of our non-administration political friends this past week, in private, that we all ought to really jump on this Limbaugh story. Joe and I had this discussion many days before Rahm mentioned Limbaugh on the Sunday shows. (And let's not forget, Rahm mentioned Limbaugh AFTER Limbaugh and Steele started publicly savaging each other.) So was Obama secretly sending microwaves into our brains to get us to push the story?

Joe and I talk to this White House - a heck of a lot more than we talked to the last one. We've even had conference calls in the past few weeks with OMB Director Orszag and with VP Biden's top economic adviser. And during all these calls and communications no one once mentioned Rush Limbaugh. It just strikes me as a bit odd that the White House was supposedly behind the Limbaugh kerfuffle, yet no one shared this grand plan with the blogosphere, which is the perfect medium for exploding such a story. Odd isn't it?

And one final point.

Do you get what the Republicans are really doing here? In addition to their usual tactic of blaming us for things that they actually do, this is another trick they love to use. Blaming us for things that aren't bad things at all. Meaning, what the GOP, with the collusion of the media, is really saying is this: "Barack Obama is telling people the truth about Rush Limbaugh being kind of an idiot." And the media's response? "You mean, Obama told people the truth about what Rush Limbaugh said? Oh my God, how evil of the White House - stop the presses!" Next, the media incessantly pesters the administration, at press conferences, in made up stories, demanding the White House admit that someone there was behind an effort to simply reiterate what Rush Limbaugh actually said, as if somehow Limbaugh isn't a bad guy for saying the things he says, but everyone else is bad for spreading the news about what Limbaugh actually said. And the ultimate irony of this strategy, some of the very people Limbaugh attacked are TO BLAME for what Limbaugh said. Priceless.

So there you have it. Barack Obama single-handedly forced Michael Steele, the head of the Republican party, and Rush Limbaugh, the Republican party's star mouthpiece, to publicly savage each other, then he forced all of the major media to cover the story, even though it had nothing to do with Obama.

Maybe he truly is the magic negro.*

(* That's a reference to the time Barack Obama made Limbaugh sing a racist song about him.)

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Help us set the agenda at Netroots Nation

Our annual liberal blog conference, previously called YearlyKos, and now called Netroots Nation, is taking place from Thursday, August 13, 2009 to Sunday, August 16, 2009 in Pittsburgh. Up until March 31, the conference organizers are accepting submissions from people who would like to organize panels for the conference. By submitting a panel, you are saying that you will organize that panel for the August conference if in fact your submission is chosen. More info below:

In the next 12 months, we'll be working together more than ever to push progressive policy into legislation. And there's no better place to strategize our priorities and plan how to make them a reality than at Netroots Nation, the grassroots event of the year.

In order to create the most well-rounded agenda possible, we need your input. Will you help us develop and organize the sessions that you’ll attend at Netroots Nation in Pittsburgh—and help shape the dialog for progressives in 2009?

It's easy to get involved. Simply click here to submit your idea for an engaging session that will bring in multiple perspectives on a relevant issue. The deadline for submission is March 31.

We want to see proposals on key issues like the economy, health care and energy policy. And we also want to include sessions about successful offline and online organizing tactics.

But you are not limited to these topics. We want this year's agenda to reflect your interests. And your interests are best expressed by your proposal.

When you're brainstorming, here are a few things to think about:

• How does my idea help the broader progressive movement?
• How will it empower activists to take what they've learned and use it for the greater good?
• Do my proposed panelists represent diversity—of ethnicity, gender, geography, age and viewpoint?

Click here to read the full list of guidelines and submit your idea.

By submitting a proposal, you are taking responsibility as the organizer of the session. We’ll help you along the way, but ultimately, it’s your baby.

This is just one way you can get more deeply involved in the Netroots community. Will you step up?

Thanks in advance for helping us plan the best Netroots gathering ever!

Karen, Nolan, Mary and Raven

PS: If you haven't registered yet, click here to reserve your spot and get the lowest rate. And if you're a student, be sure to take advantage of our special $50 student rate!

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Spain's Matthew Shepard

A truly horrific story out of Spain. You need to read the article, but in a nutshell, a gay couple invited a guy home from a gay bar, and in the middle of the night the guy stabs them 57 times, puts a blanket over one guy's head, ties a cable around it, and tethers the man's now dead head to a bed post. And guess what? They jury acquitted him!

First, more on what this sicko did:

There are no independent witnesses, but police and forensic experts say that the murder rampage began around 4:00am. Apparently, Pérez Triviñio was stabbed first but did not die. Piñeiro then stabbed Anderson Luciano twice while in the couples' room, and 22 more times as he followed his victim out of the room, into a corridor and out to the living room - where he died.

Pérez Triviñio, in the meantime, had locked himself in the room and records show that he was able to call local authorities. The call was cut short when Piñeiro was able to break back into the room and finish him off by stabbing him 35 more times.

In the living room, he tied Anderson Luciano's hands and put a blanket over his body; in the bedroom, he placed a blanket over Pérez Triviñio's head, tied a cable around it, and tethered it to a bed post. He then emptied closets and threw clothes all over the apartment, poured alcohol and set everything on fire.

Why did the jury let him go? Because he explained to them that in the middle of the night "the gays" solicited him for sex and he was totally freaked out. Uh huh. He was hanging out in a gay bar, went home with a gay couple, slept overnight, and then when someone suggested sex, he freaked out. He claims they pulled a knife on him. Yes, that was why he had to stab them 57 times, tie cable around one guy's head and tether it to a bedpost like a pinata, and then set the entire place on fire.

Sad. Infuriating. Typical.

Spain has legalized gay marriage. So you'd think "we've won!" We haven't. Even after you win your rights - long after - you're still not equal, you're still not free. Slavery was abolished after the civil war. The Civil Rights Act didn't happen until 100 years later. And now, 50 years hence, African-Americans still face prejudice and discrimination, even having elected a black president. It takes a long time to purge bigotry.

I'm asking folks to do what they can to help publicize this case, and show support. There's a Facebook group I'd urge everyone to join. There are also protests this Saturday in Madrid, Barcelona, and around Spain.

It's Spain's "twinkie defense." It's Spain's Matthew Shepard.

It's Spain's shame. Read the rest of this post...

Public pension bailouts, and the question of fairness

Fascinating Bloomberg article sent to me by reader John. In a nutshell, the Chicago Transit Authority screwed up and now its employee pension system is more in the hole than ever. Across the US, the article says, public pensions are $1 trillion in the hole due in part to the recent stock market collapse.

Should state governments, or the federal government, bail out these pension plans?

I ask because there's another pension plan not being talked about in this article. It's the pension plan that most of you out there likely use. It's called a 401k. And it just lost 30% or more of its value.

It hasn't happened yet, but I think it will. Some day soon, politicians in your state, or in Washington, will start talking about the need to spend $1 trillion to save the pensions of public transit employees, teachers, and more. And they'll make a compelling argument about all the retired workers who are going to lose everything if they don't get their pensions. And they'll be right. But I have a nagging feeling that no one will talk about the fact that you just lost your pension plan too. That the millions of employees being laid off during this recession just lost their pension plans. That the employees of businesses like Circuit City, that just went bankrupt and dissolved - they're probably losing their pensions too. What happens to my parents, to Chris' and Joes' parents, to all of your parents who are retired and have a good chunk of their pensions, their retirement, wrapped up in the market? Do they get bailed out too?

None of this is to suggest that transit workers, and teachers, and other public employees don't deserve help. But their hardship is no different than the hardship every single American worker is facing after the market plummeted 30% and 40%. Are we going to bail out some people, or are we going to help everyone? My gut tells me it's going to be some people. Hopefully I'm wrong. Read the rest of this post...

More GOP attacks launched on Michael Steele. Morning Joe piles on.

Even other conservative media personalities are trying to curry favor with Rush Limbaugh -- at the expense of RNC Chair Michael Steele:

Michael Steele was the target of many a joke on MSNBC’s Morning Joe after he apparently declined to appear on the show.

After asking where the RNC chairman was and what time he was scheduled to appear on the show this morning, host Joe Scarborough quipped, “Did Rush not give him permission?”

Then, when discussing the DCCC new Web site, imsorryrush.com, “Do they have a permission slip that if you’re a Republican leader you can come on shows?” Scarborough asked.

Later while chatting about the economy: “You know who we should put in charge of the economy? Michael Steele – if Rush Limbaugh gives him permission.”

The chiding culminated with Morning Joe hosts airing Steele’s Today Show interview. They aired a video clip of Steele answering questions from Matt Lauer in a parody Morning Joe billed its own “Exclusive.” The hosts talked over Lauer, aping his questions.

“He wouldn’t come on,” Scarborough said of Steele.

How much longer is Steele going to take this abuse? It's one thing to get kicked around by Democrats, but the attacks are coming from fellow Republicans, like Joe Scarborough.

Rush is the GOP's Supreme Leader. I think he's combination of the fat, fiery head in the Wizard of Oz and Kim Jong-Il. Read the rest of this post...

Why are Democratic members and Democratic staffers fighting so hard for the banking industry when the banking industry has already failed us?

Sometimes, staffers really do become the story. And, as I've written many times, it will be Democrats who are the biggest obstacles to enacting the agenda of change.

Huffington Post has an article on Adam Pase, the bank lobbyist for the New Democrats Coalition who has become a central figure in an ongoing battle on Capitol Hill. The controversy stems from efforts by Pase and Congresswoman Ellen Tauscher to undo some proposed bankruptcy reforms in a bill sponsored by Rep. John Conyers, which has the support of President Obama. Conyers' bill would give bankruptcy judges the power to change the terms of mortgages on the primary residence. Amazingly, bankruptcy judges already have the power to make that change on second homes. Who really wants to kill this bill?:

The banking industry has lobbied hard against the measure, mounting a successful multimillion-dollar effort last year to kill it.

That would be the same banking industry that destroyed our economy. Jane Hamsher also makes a key point:

But banks and banking lobbyists are holding out hope that they can unload their bad loans on taxpayers, and are working through people like Tauscher to oppose the legislation so they never have to take responsibility for their mistakes.

Yeah, we're already paying way too much for bad banking policies. That brings us back to Adam Pase. Lest anyone think it's not fair to pick on a staffer, keep in mind: We pay these people with our tax dollars. And, Pase hasn't minded the spotlight. Just a couple weeks ago, Pase was "deemed wunderkind material" by Politico.

So, what made him a "wunderkind"? Pase worked the Twenty First Century Group, a lobbying firm started by Texas Rep. Jack Fields, a Republican who left Congress for K Street. During the time he was there, they represented the astroturf group the Coalition for Fair & Affordable Lending. In reality, that was a coalition of predatory lenders. Yes, even the predatory lenders had a lobbying group back in the heyday when no one in the banking industry was being regulated. In 2005, they were trying to pass a bill called, the Responsible Lending Act. That legislation, sponsored by Rep. Bob Ney (R-OH and now a convicted felon) and Rep. Paul Kanjorski (D-PA), was a really ugly piece of legislation. It would have removed all predatory lending laws, claiming that they were only trying to make it easier to get money to "low income and minority buyers." It was vigorously opposed (and exposed for what it was) by civil rights leaders

Huffington's article notes that Pase has a history of fighting against bankruptcy reform on the Hill, too:

In April 2005, he went back to Moore's office as a legislative assistant, according to congressional records. A year and a half later, he was promoted to "senior legislative assistant." From that perch, Pase led the Blue Dog effort at the staff level to kill bankruptcy reform after Democrats took control of Congress, said a congressional Democratic source involved in the fight at the time.

Only in the warped world of D.C. could that kind of work make someone a "wunderkind" in the eyes of Democrats. But, Pase is still on the Hill now and at the center of another effort to protect the banking industry. His primary boss, Ellen Tauscher, has been trying to weaken the bill that would allow bankruptcy judges to change the terms of mortgages. According to Huffington:

"[Pase] was the lead staffer on all this stuff," said one Democratic opponent. "When he was with Moore, Moore was leading [the fight against bankruptcy reform]. When he went to Tauscher, then she became the lead."

Keep in mind that Tauscher and 72 other Democrats supported the onerous bankruptcy "reform" law back in 2005, which was strongly supported by George Bush. That law was a gift to the banking industry at a time when members of Congress should have been focusing on the lack of regulation of banking. But, no. Congress gave the financial services industry a bankruptcy reform bill. In return, the financial services industry destroyed the nation's economy.

(One note to Tauscher's communication's director: We're not all stupid. We know that voting for the rule doesn't mean one supports the underlying bill. Voting against any rule is a very dangerous move by a member of the ruling party, especially one like your boss who wants to be a player. We're not new, so please don't talk to us like we are.)

Now, the banking industry is once again opposed to changing the bankruptcy laws. Why does anyone care what the bankers think? Tauscher does. Pase does. As noted, they've both worked against bankruptcy reforms before. Pase now has his salary paid for by many members of the New Democratic Coalition caucus. Do they even know they are paying the salary of a lobbyist for predatory lenders, who worked hard to remove all regulation and create this mess in the first place? Because according to the Politico article, Pase is writing the policy memos for the New Democrats now:

Tauscher’s New Democrat Coalition teamed with their natural allies in the Blue Dog Coalition to impose 10 significant changes, including requirements that bankruptcy judges use federal guidelines to determine the fair market value of a home and that modified loans must be “unaffordable and not just underwater” to prevent wealthy homeowners from taking advantage of the process, according to a widely distributed e-mail from Adam Pase, executive director of the New Democrat Coalition.

So, yes, Pase is working this bill for Tauscher and the New Democrats. As is often the case on the Hill, one has to wonder if so-called improvements are really just a way to sabotage the legislation. Is protecting the banking industry what the New Democrats stand for? Here are the Democrats who pay Pase's salary (and their phone numbers). Actually, your tax dollars pay his salary, a fact often lost on people up on the Hill:

Rep. Jim Moran (Democrat-Virginia-8th) 202 225-4376
Rep. Rush Holt (Democrat-New Jersey-12th) 202 225-5801
Rep. Loretta Sanchez (Democrat-California-47th) 202 225-2965
Rep. Charlie Melancon (Democrat-Louisiana-3rd) 202 225-4031
Rep. Debbie Wasserman Schultz (Democrat-Florida-20th) 202 225-7931
Rep. Gregory Meeks (Democrat-New York-6th) 202 225-3461
Rep. Shelley Berkley (Democrat-Nevada-1st) 202 225-3461
Rep. Eliot Engel (Democrat-New York-17th) 202 225-2464
Rep. Susan Davis (Democrat-California-53rd) 202 225-2040
Rep. Charlie Gonzalez (Democrat-Texas-20th) 202 225-3236
Rep. Dennis Moore (Democrat-Kansas-3rd) 202 225-2865
Rep. Lois Capps (Democrat-California-23rd) 202 225-3601
Rep. Ellen Tauscher (Democrat-California-10th) 202 225-1880

If you are represented by any of these members, you might want to know why they're spending your tax dollars on bad policy. And, ask what they're going to do on the bill to reform bankruptcy laws. Are they following the lead of Tauscher and Pase and the banking industry? Or will they agree with Obama?

The banking industry got what it wanted back in 2005 with that awful bankruptcy bill. Don't let them "win" again.

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CNBC picks another fight with Obama in effort to stay relevant

Move over Santelli. It's Cramer time! Yes, the popular (or at least previously popular when the market was going up) CNBC shock jock/trader/screamer is picking up where Santelli left off and claiming that Obama has "declared war on investors." Indeed. Cramer is infamous for his touting "all is well" with Bear Stearns six days before collapse. According to Barron's, Cramer lags 5% behind the market on his stock picks. Dazzling! Anyone in America who isn't aware of the critical impact of stock values on the long term health of the country due to the over reliance on Wall Street as a retirement vehicle has been asleep for the past few decades.

It's clear CNBC is worried about rating and the overall lack of interest in the market. When everything was going well, everyone wanted to learn about how much their 401K made but now it's a horror show. Few people have the stomach to want to see how much they have lost. In another time, market experts talked about long term strategies but those days have long gone. With the addition of sophisticated tools that benefit the few but can damage the market with rapid speed, the current mindset is minute by minute.

Cramer and too many other apologists live with the pre-crisis mentality. Building a long term program for everyone is going to take time and the leftover problems of previous administrations are not going to disappear because Obama waves a magic wand. Ignore the daily rumblings for now and what benefits the minority (who did pretty well in the pre-credit crisis world) and think about a few years down the road. Do we need another Wall Street success that rewards fake business and traders who borrow massive amounts of other people's cash, then pay a fraction of the taxes that others pay? Maybe Cramer and CNBC need to stir the pot to generate interest but for now, there's nothing that suggests Obama is targeting the destruction of wealth. Quite the opposite. I have much more faith in Obama building a future for the US than I do with Cramer or anyone other Wall Street cheerleader. Read the rest of this post...

Wednesday Morning Open Thread

Good morning.

I heard on the radio this morning that on this day in history, March 4, 1933, Franklin Delano Roosevelt was sworn in as president for the first time. During his first inaugural, in the midst of the depression, Roosevelt gave the famous "The only thing we have to fear is fear itself" speech:

So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself -- nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life, a leadership of frankness and of vigor has met with that understanding and support of the people themselves which is essential to victory. And I am convinced that you will again give that support to leadership in these critical days.

1933 was the last year when the inauguration was in March.

Just imagine the shape the nation would be in today if George Bush had been president until today. We'd never be able to crawl out of the hole. So, good move on that 20th amendment to the Constitution. It really came in handy this year.

Let's get this day rolling... Read the rest of this post...

Billionaire investor Ross makes the case for Obama

Rich investors always love the Republicans, right? Hardly. The fact remains that the Bush administration talked about how much they loved Wall Street but the results speak for themselves. It's been severely damaged and only by paying attention and becoming proactive will it improve. Obama was right yesterday when he cautioned against basing long term policy on "fits and starts." We need a long term approach that works not just for the short term traders, but for the long haul and for everyone. Americans have watched their retirement plans get kicked hard and there's little reason to bother to look at the daily rumblings because there will be very little positive news out there for a while. Correcting years of bad policy will take time, but it has to happen.

Onto the now and the future:

The Obama administration is doing a much better job with regards to the dealing with the economic crisis than its predecessor says Wilbur Ross, chairman and CEO of WL Ross & Co.

"The prior administration seemed to have as its objective, putting out the least amount of money at the least risk. I think this administration recognizes that the problems are very big and it's ok for the government to take some degree of risk," Ross told CNBC Wednesday.

The administration was better at recognizing that residential real estate was at the heart of the problem and they were dealing with it decisively.

"You can't have American families losing $5.5 trillion in their homes. You can't have 12 million families who owe more on their house than it's worth and think that you'll have a vibrant consumer. And the consumer is about 70 percent of the American economy," Ross added.

Ross said that he was very keen to participate in the Term Asset-Backed Securities Loan Facility, or TALF, which is aimed at boosting the availability of credit to consumers and small businesses.

The Federal Reserve will lend up to $200 billion to spur consumer lending -- for autos, education, credit cards and other financing. The money will be used to provide financing to investors to buy up the debt.

"In effect, the government is becoming the securitization mechanism for consumer lending. And I think that's a very very constructive thing for our economy because part of the problem that consumers are having, is getting financing, particularly for automobiles and houses, Ross said.

Read the rest of this post...

Australia economy shrinks, on edge of recession

For years the Australian economy had prospered as it hitched itself to the booming economies of China and the region. It was difficult to argue against being linked to one of the hottest economies that consumed the vast natural resources available in Australia. The problem with being attached to a bubble economy is that bubbles burst. So far the Australian economy has held up better than many and even now, the recession appears to be serious but not as bad as others. In this period, being not as bad is the new success story.

Wednesday's report showed GDP, essentially the value of all goods and services produced in Australia, fell 0.5 percent last quarter, from the third quarter when it rose 0.1 percent.

The result was well below forecasts of 0.2 percent growth and the first drop since 1991, when the introduction of a sales tax caused a one-off slump in demand.

It was still better than much of the competition. Japan, Australia's biggest export market, saw GDP fall 3.3 percent last quarter, while Korea suffered a 5.6 percent drop, the euro area 1.5 percent and the United States 1.6 percent.

Read the rest of this post...

Gordon Brown to speak to Congress today

The British press is worked up about whether he ought to apologize for his own handling of the economy and his role in helping to create the crisis. It's a fair criticism and one that I would surely make as well though the UK press is missing the point. How many people in Congress itself had made such admissions? There are quite a few people in Congress who played a critical role in developing this problem and sure, even in the Obama team there are a few who played important roles both in government as well as on Wall Street. (Larry Summers and the swarm of Citibank people who were hired immediately come to mind.

Gordon Brown owes someone an apology but I don't see the point in doing it in Washington. Any apology that he delivers ought to be back home to his own voters, or at least past voters. On the upside, Brown has shown a lot more leadership within Europe on the subject of building a plan and moving forward with recovery. The UK has the most difficult problems of the large European economies, but Brown has been on the forefront of encouraging a global response to the problem. He's been more aggressive with nationalizing the banks as opposed to the drip, drip, drip model the US continues to use.

If Brown wants to take a hard line against what he thinks is protectionism, fine. I believe there's more to the argument than we hear in public debates these days, but fine. Help us out and shed some light on the tremendous benefits to normal people as well. Be sure to also talk about the blight on the "free and open market system" of political leaders who sign up to be a multi-million dollar per year consultants as well. What politicians call protectionism is only a result of their own failure to make it work, so quit being so sensitive about criticisms.

Brace yourself for maybe the most exciting political speech of a lifetime. Or not. Read the rest of this post...