Category: Congress

Signs of the Apocalypse, Congress Edition

If there is anything that you can depend on, it is that whatever bill goes through Congress, it will either be killed, or weakened significantly.

Well, it appears that the reform of financial regulation is actually getting better and stronger in the Senate, which has added:

Seriously, I think that people inside the DC Beltway are beginning to realize just how unpopular the finance industry is, and the Senate is moving this way, because it wasn’t quite so obvious when the House passed the bill.


Same as it ever was

That being said, there were still things that show that Washington, DC is still the same as it ever was, specifically that they are looking to create a carve out for an industry that is notorious for cheating consumers, car dealers:

A measure under consideration in the Senate would shield auto dealers from a package of proposed financial rules aimed at protecting consumers.

Currently auto dealers are regulated by a host of state and federal consumer protection rules that prohibit practices such as “bait and switch” lending and loans packed with undisclosed extras such as extended warranties.

This is hardly surprising.

Car dealers are, as a whole, perceived by the public as an unsavory and dishonest lot, and so they have have consciously inserted themselves into government and elections as much as is possible, spreading largess, and making them patrons of politicians from dog catcher to Senator.

To his credit, and my surprise, Barack Obama is against exempting car dealers from the consumer financial protection agency.

Specter is Toast

So says the latest tracking poll, which has Joe Sestak leading Arlen Specter by 46% to 42%. (PDF)

If you assume that the numbers go the wrong way for Sestak on the margin of error (±5%), and figure in the 2:1 undecideds going for the challenger, then Specter wins a 51%-49% victory, but this is really grim for Specter, and the numbers also now appear to imply that Sestak is stronger in the general election against Neanderthal Pat Toomey.*

Basically, Sestak has started hitting Specter as being a political opportunist, and it works because it’s true.

Here’s hoping that Blanche Lincoln suffers the same fate.

*My apologies to Neanderthals for the comparison.

Teabaggers Win One

Bob Bennett, one of the most conservative members of the Senate, has lost the party caucus in Utah, which means that he will not be in the primary ballot.

He could mount a write-in campaign, but this is highly unlikely.

Seeing as how Utah is not only thoroughly Republican, but foaming at the mouth red-conservative, it’s unlikely that this would give us a Democratic Senator, as happened in that New York Congressional race.

Democratic Senate Primary Poll Update

These are obviously daily tracking polls, and only reflect last night’s sentiment, so they are just snap shot.

Arlen Specter is tied with Joe Sestak at 43%, which cannot be good for Specter.

Lincoln seems to be in better shape. She is leading Bill Halter by 44% to 32%, which, if you use the rule of thumb that undecideds go 2:1 to the challenger, has her winning by 52%-48%, though it is still close.

Both primaries are on May 18, so I expect these numbers to move over the next 11 days.

I’m rooting against both incumbents.

Jon Stewart Makes a Very Good Point


See profiling comment at 4:20

As always.

Actually, he makes a number of them, with the big one being, “What are we going to do in this country when we get attacked by someone who’s not one of the Home Alone burgers?”

But there is the little point that he makes that I find far more trenchant.

He runs an ad put out by a Teabagger candidate running against Alan Grayson, Dan Fanelli, talking about profiling terrorists, and brings out two men, one swarthy and bearded, and one white and old, which asks “Where’s Waldo” which one is the terrorist?

This leads the doyenne of late night news to ask the question himself, “Which one? Doctor Kevorkian on the left, or the cast member from The Jersey Shore on the right?”

Stewart’s answer is that the terrorist who flew his plane into the IRS building in Texas looked an awful lot like Congressman wannabe Fanelli.

A Take I Trust on Audit the Fed

Dean Baker, co-director of the CRPR, looks at the deal that Bernie Sanders cut with Chris Dodd, and declares it a victory for the little guy and a big step to making the Federal Reserve accountable, though he does also note the downside of the compromises:

Sanders did make some compromises. The audit has an arbitrary cutoff date of December 2007. The special facilities date from the summer of 2007. It also only has the audit as a one-off proposition, rather than establishing GAO audits of Fed operations as an ongoing principle. The compromise also explicitly exempts open market operations – the Fed’s daily buying and selling of short-term assets to control interest rates – from GAO scrutiny.

These concessions are unfortunate, the Fed is a creation of Congress and for that reason it should be subject to the same investigative procedures as any other federal agency, but they certainly are secondary compared with getting a full accounting of the money lent out through the special facilities. It is also important to note that in one very important way the Sanders compromise goes beyond the original Paul-Grayson language. Under the compromise, the information about the lending facilities will be made fully public where everyone can scrutinize it. The original bill would just have this information made available to the relevant congressional committees. They would then have to make a further decision about what information, if any, would be made public.

My guess is that the December, 2007 cutoff date is not “arbitrary”, and that even as we speak, the Fed is frantically backdating transactions to November 2007, but if this is a step in the process, then it appears to be a good thing.

Previous post here.

Senate Finance Debate Developments

We have the good:

The bad:

And the confusing:

  • The Audit the Fed amendment appears to be on track to pass, though Bernie Sanders has agreed to narrow its scope, getting Chris Dodd as a cosponsor:

The audit sought by Mr. Sanders would scrutinize an alphabet soup of programs that injected liquidity into the markets, ranging from commercial paper to money market funds. Under the proposal, the accountability office will not question whether the loans should have been made but will focus on operational integrity and accounting practices.

The audit, however, would explore “whether the credit facility inappropriately favors one or more specific participants over other institutions eligible to utilize the facility” and “whether there were conflicts of interest with respect to the manner in which such facility was established or operated.”

It appears that Obama/Geithner/Summers still oppose the audit provision, and are implying that they might consider such a provision worthy of a veto.

As I’ve said before, Summers wants to be Fed chair, so he hates it, Geithner is afraid of being forced to resign in disgrace or of criminal prosecution, and they have Obama’s ear,* so we continue to here noise from the White House in support of opacity as policy.

*But remember, the Cossacks work for the Czar.

Obey’s Explanation

Yesterday, he announced his retirement, and today he explains himself.

Basically, he’s sick and tired of the,”the ridiculous, accountability destroying rules of the Senate to confused, angry, and frustrated constituents,” though he also mentions the recent deaths of the his former colleagues John Murtha and Charlie Wilson.

His full statement is below the break.

May 5, 2010

Statement by Congressman David R. Obey
In December I will have been in public service for 48 years – over 6 years in the Wisconsin State Legislature and almost 42 years in the U.S. Congress. I have served in the House longer than anyone in Wisconsin history. God and my constituents have been incredibly good to me.

When I was a kid growing up in Wausau I never dreamed that I would have even one-tenth of the opportunities that have come my way. I hope that I have used those opportunities to do the most that could be done for the causes I believe in: fairer taxes; greater economic opportunity; better schools; affordable health care; expanded education and health care benefits for veterans; research that will help us fight diseases like cancer, diabetes and Parkinson’s; better health, safety, and economic security for workers; cleaner air; and water and preservation of National Parks and public places.

The people of Northern Wisconsin have given me the honor and the privilege of representing them on the great issues of our times, ranging from Vietnam to Watergate, the Iranian hostage crisis, the Reagan deficits, Iran-Contra, the collapse of communism, two Gulf Wars, the economic and budget reforms of the early 1990s, the government shut down, 9/11, and the economic meltdown of the past decade.

For a decade, as Chairman of the Foreign Operations Subcommittee, I had the privilege of helping lead the effort to meet our responsibilities to our fellow human beings around the globe who share this planet with us, but do not share our same good fortune. During that time, we consistently moved foreign aid money away from support of military dictators to the expansion of long-term development activities and through programs like UNICEF contributed to saving millions of children’s lives.

I’m especially proud of the role I paid in resisting American colonialism in Central America, working with people like James Baker, Dave Bonior, Jim Wright, Lee Hamilton, Matt McHugh, Joe Moakley, and Tom Foley to end the Contra War in Nicaragua. Probably, the most important historic role the committee played was the bipartisan work we did with the George H. Bush Administration and officials like Secretary Lawrence Eagleburger in helping Eastern European countries to transition from communist authoritarianism to Western capitalist democracies after the fall of the Berlin wall and the collapse of the Soviet Union.

Although it happened a long time ago, I am especially proud of the losing fight that I helped wage with Congressmen Henry Reuss and Mo Udall to prevent the passage of the fiscally irresponsible Reagan budgets, which at a time of devastating inflation cut taxes at the same time the defense budget was being doubled, all paid for with borrowed money, more than tripling the long-term budget deficit picture. The Obey-Udall-Reuss alternative budget was a progressive alternative to the budgets of both parties, which spent less, borrowed less, and produced smaller deficits than either the Democratic or Republican base bills, and won the support of a majority of Democrats. At the time our actions were hugely unpopular. About 70% of the voters in my district supported Reagan’s budget, but time has proven us right.

Today, I am similarly proud that I was the principle author of the much maligned but absolutely essential Economic Recovery Act of 2009, which in the midst of the deepest and most dangerous economic catastrophe in 70 years, has pumped desperately needed purchasing power into the economy to cushion the fall and reduced the number of families whose breadwinners were thrown out of work. When it was passed last year, the American economy was losing 750,000 jobs per month. Last month, by contrast, the economy added 162,000 jobs, the largest increase in three years. That corner could not have been turned without the Recovery Act. My only apology is that it should have been larger, but it was the most that the system would bear at the time.

I am especially pleased to have had the privilege of presiding over the House when it passed the historic health insurance reform legislation three weeks ago. I have been waiting for that moment for 41 years and its arrival – finally – made all the frustrations of public life worth it.

During my Congressional service, I have also tried to do what I could to keep us out of misguided wars and I have fought to reform the political institutions – especially, the Congress – to improve the quality of their work and to strengthen public confidence in them. And despite the misguided and disastrously destructive decisions of the U.S. Supreme Court that have put the system of American elections on the auction block, I have worked to limit the influence of private money in elections that by definition should be public events.

I think that along the way I have made a difference for the district and state that I represent and for the country.

But there is a time to stay and a time to go. And this is my time to go. I hate to do it. There is so much that needs to be done. But, frankly, I am bone tired. When I first put my name on the ballot for the State Assembly in 1962, I was 23 years old. Now, 48 years later, I will soon be 72. When I went to Congress in 1969, I was the youngest member of the House of Representatives. I’m not anymore. Since that first day in 1962, I have gone through 25 elections and engaged in countless battles.

I’m ready to turn the page, and I think, frankly, that my district is ready for someone new to make a fresh start. Not someone who poses as a fresh face, but would in reality take us back to the “good old days” of Bush tax cuts for the rich and a misguided Iraq war. Not someone whose idea of a fresh idea is to say: “Let the market do it,” which translated means: “Let the corporate elites, big banks, and Wall Street big shots and insurance company CEO’s do anything they want with no regulation to protect investors and consumers.” There is nothing fresh about that. No, what the 7th district deserves and what the country deserves is for someone to step up who can be counted on to put working people first, someone who will bring fresh eyes and fresh energy to the battle, someone who won’t use slick words and an actor’s ability to hide the fact that he is willing to gut and privatize Social Security and Medicare and abandon working people to the arbitrary power of America’s corporate and economic elite.

When I first ran for Congress I wanted to do three things:

1) The first was to help make our economic system more fair for the poor and for middle class working families. Unfortunately, powerful economic and political forces have largely frustrated that effort. Over the last 30 years we have seen the largest transfer of income up the income scale in history. In fact, for six straight years under George W. Bush, over 90% of all the income growth in the country went into the pockets of the wealthiest 10%. The other 90% of the population – the regular people of the country – got table scraps. I regret not being able to do more to turn that around. That, and the inability of the political system to achieve the public financing of political campaigns, represent the biggest disappointments of my public life.

2) My second goal was to expand federal support for education in order to expand opportunity for every American. That has been a hard slog, but, especially in the last three years, we have been able to move a large amount of federal resources to do just that. Just this last year, we were able to greatly enhance federal support for student aid. It is not enough, but it makes a difference.

3) My third goal was to help move this country into the ranks of civilized nations by making it possible for almost every American to receive quality health care without begging. For years I despaired of ever getting that done. But last month, I had the great privilege of presiding over the House of Representatives as it finally completed action on historic health insurance reform legislation.

Over the past few years, whenever a member of the press asked if I was contemplating retirement, I would respond by saying that I did not want to leave Congress until we had passed health care reform. Well, now it has. And I can leave with the knowledge that thanks to Speaker Pelosi and President Obama and so many others, we got the job done. I haven’t done all the big things that I wanted to do when I started out, but I’ve done all the big things I’m likely to do.

Frankly, I had considered retiring after the 2000 election, but I became so angered by the policies of the Bush administration that I decided to stick around as long as he was here. In 2002, after a year-long reapportionment struggle, which devoured my time and the time of my colleague Jim Sensenbrenner, I publicly stated I would not be around for another one. That is exactly what I would face if I returned to Congress next year. I simply don’t want to do it.

Many years ago, in an interview with Richard Cohen, I told him that the way I looked at public service, I believe the job of a good politician was to be used up fighting on behalf of causes you believed in, and when you are used up, to step aside and let someone else carry on the battle. Well, today I feel used up.

In the last months, two colleagues, Charlie Wilson and Jack Murtha, have died. Both were 76. For me, that is only four years away. At the end of this term I will have served in the House longer than all but 18 of the 10,637 men and women who have ever served there. The wear and tear is beginning to take its toll. Given that fact, I have to ask myself how I want to spend the time I have left. Frankly, I do not know what I will do next. All I do know is that there has to be more to life than explaining the ridiculous, accountability destroying rules of the Senate to confused, angry, and frustrated constituents.

I absolutely believe that, after the economy returns to a decent level of growth, we must attack our long-term budget deficit. But, perhaps I expect too much because, in addition to an attack on the federal budget deficit, I also want to see an equal determination to attack the family security deficit, the family income deficit, and the opportunity deficit which also plague the American people.

I am, frankly, weary of having to beg on a daily basis that both parties recognize that we do no favor for the country if we neglect to make the long-term investments in education, science, health, and energy that are necessary to modernize our economy and decline to raise the revenue needed to pay for those crucial investments. I do not want to be in a position as Chairman of the Appropriations Committee of producing and defending lowest common denominator legislation that is inadequate to that task and, given the mood of the country, that is what I would have to do if I stayed.

I am also increasingly weary of having to deal with a press which has become increasingly focused on trivia, driven at least in part by the financial collapse of the news industry and the need, with the 24-hour news cycle, to fill the air waves with hot air. I say that regretfully because I regard what is happening to the news profession as nothing short of a national catastrophe which I know pains many quality journalists as much as it pains me. Both our professions have been coarsened in recent years and the nation is the loser for it.

Let me close by thanking some people.

First, let me thank my wife, Joan, who has put up with so much and endured so much so that I might follow my dream of public service. When she agreed to marry me, she thought she was getting a college teacher. Instead, she got stuck with the “charms” of political life. Whatever good I’ve done, I could not have done without her.

Let me also thank my two sons, Craig and Douglas, who have also shared in the burden of public service. Craig has spent his adult life trying to bring health care to people who needed it, trying to protect workers in the work place, and trying to protect our precious public lands from abuse by special interests and their mouthpieces in government. Doug has spent his life as a working journalist, first covering Capitol Hill, and then informing his readers about the realities of the politics of environmental protection and the interaction between science and politics on the profoundly important issue of global climate change.

Let me thank all those who have worked with me as staff through the years – those who have worked in my district offices in Wisconsin, in my personal office in Washington, my Joint Economic Committee staff, and my Appropriations Committee staff. Your ability, your decency, and your fierce loyalty to me are gratefully appreciated. You have been not just my counselors, but my protectors, and my understanding friends.

Let me thank those special friends who have helped me get through 25 elections and everything that has happened in between. You know who you are. By giving me your political and emotional support, you have sustained me through the pressures and the ups and downs of political and public life. I will not forget. I hope you feel that your support helped to make possible whatever good I have done through the years.

Let me thank Bob Huber, Frank Nikolay, Dick Bolling, and Gaylord Nelson for teaching me how to be a legislator – in Madison and in Wisconsin. And let me express a special thanks to Speaker Nancy Pelosi whose heart, guts, and soul have provided the steel necessary to accomplish some extraordinary things.

Let me also thank so many of my Congressional colleagues, past and present, who have worked shoulder to shoulder with me in pursuit of so many causes – some won, some lost, and who have on occasion forgiven me for my excessive passion. It has been said that in life our strength can also be our weakness as I have demonstrated on more than one occasion.

And let me profoundly thank everyone who has ever cast a vote for me for the privilege of representing you in Madison and Washington all these years.

I hope that in whatever years I may have remaining, I will still find occasion to help move the needle forward. But for now, after 48 years, it is time to pass the torch.

Dave Obey Will Retire

The powerful, and senior, head of the House Appropriations Committee has announced that he will not stand for reelection.

Wisconsin’s 7th district has a D +3 PVI, so I think that its likely that the seat will remain in Democratic hands, but given the late date of this decision, it’s likely that the party leaders in Madison, and the DCCC, and , of course, Rahm, will do their best to ensure that a squish will run.

It appears that the deaths of Charlie Wilson and John Murtha led him to make this decision.

So Predictable

Because Larry Summers is too arrogant to realize that he will never be Chairman of the Federal Reserve, and because Larry Summers has Barack Obama’s ear,* the White House has all but threatened a veto if the finance reform bill passes with an amendment to audit the Federal Reserve:

Right now Sen. Bernie Sanders (I-VT) is trying to round up 60 or more votes to overcome a likely filibuster and include an “audit the Fed” provision in the Senate’s bill. There are just a few small obstacles: the White House, major financial institutions, and the Fed itself. Their resistance is fierce–but the measure is so popular that killing it will be difficult for them and that, in their eyes, threatens to put a grenade at the center of efforts to to tighten the rules on Wall Street.

The pushback is reminiscent, in a way, of the executive branch’s institutional opposition to oversight of the nation’s intelligence agencies and operations. The Fed has always been shrouded in secrecy, and its leaders (in both the private and public sector) continue to insist on keeping their activities opaque, in order, they say, to protect complicated monetary policy from the political process.

……

It’s likely, in fact, that the Obama administration will be under intense pressure to veto the entire financial reform bill if “audit the fed” survives.

This is nuts. I know that Ben Bernanke will be upset, but to the degree that any voter cares about this, they support this idea, and the audit specifically exempts the inflation fighting functions of the Fed, where independence really matters.

It’s pretty clear that the Fed bent (and likely broke) its own rules, and possibly the law, and we need to know how they handled this, and how they screwed this up in the first place, before we make any decisions on what authority they might hold.

*And Timothy “Eddie Haskell” Geithner’s testicles.

Sestak-Specter Primary Battle Closes

Date 5/2 5/3 5/4
Arlen Specter 48% 49% 46%
Joe Sestak 40% 40% 42%
Undecided 12% 11% 12%

The latest tracking polls have the Arlen Specter Joe Sestak primary race too close to call.

If you use the rule of thumb that undecideds break against the incumbent by 2:1, Specter still appears to have the advantage, but it is a lot closer than it was a last, when Specter had a 20+% lead, 53%-32%.

I would be surprised if Specter wins by more than 3% when the primary is held in 2 weeks.

Note that the polls here describe Specter’s popularity among Democrats, and he is severely damaged goods, so the general, against the antediluvian Pat Toomey, he will have a very tough road to hoe.

Basically, he switched parties because he wants to stay a senator, and everyone knows it, and it’s unseemly, and no one trusts him, though the Senate Incumbent Protection Program Democratic Senate Campaign Committee (DSCC) is spending heavily on advertisements in his behalf.

This is yet another reason why I implore my readers not to give to the DSCC the DCCC, or the DNC (Post Dean): they are first and foremost an incumbent protection program.

Well, Here is a Blast from My Web Past

Around 1995 0r so, I really do not recall when exactly, I decided that the web was just too useful for me to compete on utility, so I would compete on uselessness.

So I created, hand coded, because that was the way then, a web page dedicated to bad hair days.

Originally, it was just me, you’ve seen the picture, it’s in the right column, and Al (Einstein, that is, the patron saint of bad hair).

Well, I realized that not only did the Internet completely out-class me in useful things, but it completely outclassed me in useless things, so it never went that far.

That being said, I did add one other public figure, just 12 days before September 11, 2001, James Traficant, who had arguably the worst hair in the 200+ year history of Congress.

Mr. Traficant was subsequently tried and convicted for matters unrelated to his hair, corruption, and expelled from Congress.

Well, He’s back!!!!!!

After serving 7 years for bribery, he is running for his old seat as an independent in his old district in Youngstown, OH.

Same as it ever was……

Charlie Crist Announces Independent Run for Senate

He’s left the Republican Party to run for the Senate as an independent.

The reason that he gives is that the, “political system [is] broken.”

I think that he would have gotten a few more votes out of telling the truth, which is that, “The nutjobs in the Florida Republican party are running the asylum now.”

In related news, John Cornyn, head of the RSCC, wants his money back.

If Crist has any brains, he will tell him, and anyone else, to go pound sand, that they contributed to a conservative candidate for Senate, and he is still that.

He could play it as Reagan did with his, “I am paying for this microphone, Mr. Breen.,” moment.

The Republicans Cave on Finance

The Senate has agreed to start a debate on the financial reform package.

What the Republicans were angling for was a pre-approved package, with back room Ben Nelson(DINO-NE)-type deals cut in secret, so that they would get what they wanted without their finger prints on the deals.


Please sir, can I have some more?

Well, now it looks as if the bill will be in flux on the floor, which means that the sellouts will have to be public, as will voting in opposition to some of the amendments to strengthen the bill.

Harry Reid has hung tough, and the Democrats have been effective in painting Republican obstructionism for what it is.

This needs to be the rule, not the exception.

Good Politics, Good Policy

Click for full size



Even the right-wing Belo Corporation journalism cancer known as the Dallas Morning News


And the Mooney Times

Media Matters has a large selection of newspaper front pages, and it looks like Mitch McConnell’s ploy to kill financial reform is not playing in Peoria.

The lede is all about the filibuster, and how the ‘Phants are doing their best to kill and slow-walk the process, even in reliably right wing newspapers.

Here’s hoping that the Dems notice, and double down on making the Republicans do this again, and again, and again, and again.

Keep up the good work.

Do not compromise on financial reform, you already have, make them crawl to you, and scatter some broken glass in their path.

A Neat Piece of History

An article from Time magazine from June 5, 1933 about the creation of deposit insurance:

Through the great banking houses of Manhattan last week ran wild-eyed alarm. Big bankers stared at one another in anger and astonishment. A bill just passed by both houses of Congress would rivet upon their institutions what they considered a monstrous system of guaranteeing bank deposits. Such a system, they felt, would not only rob them of their pride of profession but would reduce all U. S. banking to its lowest level. They saw their deposits which they had spent a lifetime to build up and protect with their good names confiscated by the Government to pay for the mistakes and dishonesty of every smalltown bankster.

Don’t think that our masters of the universe believe anything different than that these masters of the universe believed.

They always believe that they are good, and noble, and brilliant, and that it’s always someone else’s fault.

Failing by Design

So, after releasing an ambitious plan to reign in the exotic insurance-like financial instruments known as swaps, Blanche Lincoln is saying that she thinks that the proposal will not survive the Senate:

Senator Blanche Lincoln said she isn’t sure her plan to make banks wall off their swaps-trading desks has enough support to become part of financial-regulatory overhaul, while calling the provision effective change.

……

“I don’t know if I have the votes” for the provision, Lincoln said today. When the measure comes to the floor for debate, senators could vote to remove her plan, Lincoln said.

Let’s be clear, Senators don’t say things like this about proposals of theirs that they want to pass, they say it about proposals of theirs that they want someone else to kill.

Lincoln is trying to present herself as the liberals’ great white hope in the primary, but it’s just a pose, which is why the US Chamber of Commerce is doing a TV ad blitz for her.

Do not be deceived: She is owned by Walmart, the big banks, the health insurers, and the rest of those pig felching rat bastards.

Stephen Colbert Answers the Question


The W0rd is: Straight to Video

You see, the teabaggers are accusing of Lindsey Graham of making nice with the Democrats because he is being blackmailed because he’s gay.

Colbert’s solution, Lindsey Graham needs to release a heterosexual sex tape.

It’s a reasonable suggestion, but I’m not sure that making such a tape is even remotely possible.