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Political “Idjits”: Is the GOP Bound for A ‘Political Jonestown’?

Once upon a time the Republican Party included a few widely-respected leaders who valued reason and flexibility — names like Eisenhower, Javitz, Weicker and a few others come to mind. Hell, Nixon was a paragon of sanity compared to some of the loons running the GOP asylum now. if this sounds overstated, read Richard Cohen’s Sunday WaPo column “A Grand Old Cult,” in which he explains:

To become a Republican, one has to take a pledge. It is not enough to support the party or mouth banalities about Ronald Reagan; one has to promise not to give the government another nickel. This is called the “Taxpayer Protection Pledge,” issued by Americans for Tax Reform, an organization headed by the chirpy Grover Norquist. He once labeled the argument that an estate tax would affect only the very rich “the morality of the Holocaust.” Anyone can see how singling out the filthy rich and the immensely powerful and asking them to ante up is pretty much the same as Auschwitz and that sort of thing….Almost all the GOP’s presidential candidates have taken this oath, swearing before God and Grover Norquist to cease thinking on their own, never to exercise independent judgment and, if necessary, to destroy the credit of the United States, raise the cost of borrowing and put the government deeper into the hole.

Cohen notes the role of revisionist history and denial in the Republicans’ increasingly unhinged worldview:

…The hallmark of a cult is to replace reason with feverish belief. This the GOP has done when it comes to the government’s ability to stimulate the economy. History proves this works — it’s how the Great Depression ended — but Republicans will not acknowledge it.The Depression in fact deepened in 1937 when Franklin D. Roosevelt tried to balance the budget and was ended entirely by World War II, which, besides being a noble cause, was also a huge stimulus program. Here, though, is Sen. Richard Shelby mouthing GOP dogma: Stimulus programs “did not bring us out of the Depression,” he recently told ABC’s Christiane Amanpour, but “the war did.” In other words, a really huge stimulus program hugely worked. Might not a more modest one succeed modestly? Shelby ought to follow his own logic.

‘Logic’ may not be the best word to describe GOP thinking in the second decade of the 21st century. Cohen notes a similar pattern of denial with respect to Republican policies on abortion and global warning, and adds,

…Independent thinkers, stop right here! If you believe in global warming, revenue enhancement, stimulus programs, the occasional need for abortion or even the fabulist theories of the late Charles Darwin, then either stay home — or lie.This intellectual rigidity has produced a GOP presidential field that’s a virtual political Jonestown. The Grand Old Party, so named when it really did evoke America, has so narrowed its base that it has become a political cult. It is a redoubt of certainty over reason and in itself significantly responsible for the government deficit that matters most: leadership. That we can’t borrow from China.

The problem for Democrats is that, when Republicans become irrational proponents of discredited ideas and failed polices, there is not much incentive for Dems to up their game. Dems are not being challenged to respond to good arguments so much as tantrums by intellectually-constipated ideologues. The public gets cheated out of an enlightening debate and everybody loses.

What puzzles is why all of the Republicans have guzzled the Koolaid. Why hasn’t it dawned on the party’s brighter bulbs, perhaps Senator Lugar or, maybe Scott Brown or Huntsman that “Hmm, I could really separate myself from the pack of idjits by taking things to a more rational level”? All indications are that the public would like to see a little more flexibility from Republicans.

There may well come a point when the Republicans’ impressive party discipline starts to look like pointless obstructionism to swing voters. The public can see that, so far only one party is compromising. If sanity prevails, the Republicans’ unspoken meme that “we’re 100 percent right, and they’re 100 percent wrong, so we won’t give an inch” can’t play much longer without diminishing returns.

 

By: J. P. Green, The Democratic Strategist, July 5, 2011

July 8, 2011 Posted by | Abortion, Class Warfare, Climate Change, Congress, Conservatives, Debt Ceiling, Deficits, Democracy, Democrats, Economic Recovery, Economy, Elections, Global Warming, GOP, Government, Government Shut Down, Ideologues, Ideology, Lawmakers, Middle Class, Politics, Public, Public Opinion, Republicans, Right Wing, Swing Voters, Tax Loopholes, Taxes, Voters, Wealthy | , , , , , , , , , , | Leave a comment

Another Inside Job: The Continuation Of Banker Bad Behavior

Count me among those who were glad to see the documentary “Inside Job” win an Oscar. The film reminded us that the financial crisis of 2008, whose aftereffects are still blighting the lives of millions of Americans, didn’t just happen — it was made possible by bad behavior on the part of bankers, regulators and, yes, economists.

What the film didn’t point out, however, is that the crisis has spawned a whole new set of abuses, many of them illegal as well as immoral. And leading political figures are, at long last, showing some outrage. Unfortunately, this outrage is directed, not at banking abuses, but at those trying to hold banks accountable for these abuses.

The immediate flashpoint is a proposed settlement between state attorneys general and the mortgage servicing industry. That settlement is a “shakedown,” says Senator Richard Shelby of Alabama. The money banks would be required to allot to mortgage modification would be “extorted,” declares The Wall Street Journal. And the bankers themselves warn that any action against them would place economic recovery at risk.

All of which goes to confirm that the rich are different from you and me: when they break the law, it’s the prosecutors who find themselves on trial.

To get an idea of what we’re talking about here, look at the complaint filed by Nevada’s attorney general against Bank of America. The complaint charges the bank with luring families into its loan-modification program — supposedly to help them keep their homes — under false pretenses; with giving false information about the program’s requirements (for example, telling them that they had to default on their mortgages before receiving a modification); with stringing families along with promises of action, then “sending foreclosure notices, scheduling auction dates, and even selling consumers’ homes while they waited for decisions”; and, in general, with exploiting the program to enrich itself at those families’ expense.

The end result, the complaint charges, was that “many Nevada consumers continued to make mortgage payments they could not afford, running through their savings, their retirement funds, or their children’s education funds. Additionally, due to Bank of America’s misleading assurances, consumers deferred short-sales and passed on other attempts to mitigate their losses. And they waited anxiously, month after month, calling Bank of America and submitting their paperwork again and again, not knowing whether or when they would lose their homes.”

Still, things like this only happen to losers who can’t keep up their mortgage payments, right? Wrong. Recently Dana Milbank, the Washington Post columnist, wrote about his own experience: a routine mortgage refinance with Citibank somehow turned into a nightmare of misquoted rates, improper interest charges, and frozen bank accounts. And all the evidence suggests that Mr. Milbank’s experience wasn’t unusual.

Notice, by the way, that we’re not talking about the business practices of fly-by-night operators; we’re talking about two of our three largest financial companies, with roughly $2 trillion each in assets. Yet politicians would have you believe that any attempt to get these abusive banking giants to make modest restitution is a “shakedown.” The only real question is whether the proposed settlement lets them off far too lightly.

What about the argument that placing any demand on the banks would endanger the recovery? There’s a lot to be said about that argument, none of it good. But let me emphasize two points.

First, the proposed settlement only calls for loan modifications that would produce a greater “net present value” than foreclosure — that is, for offering deals that are in the interest of both homeowners and investors. The outrageous truth is that in many cases banks are blocking such mutually beneficial deals, so that they can continue to extract fees. How could ending this highway robbery be bad for the economy?

Second, the biggest obstacle to recovery isn’t the financial condition of major banks, which were bailed out once and are now profiting from the widespread perception that they’ll be bailed out again if anything goes wrong. It is, instead, the overhang of household debt combined with paralysis in the housing market. Getting banks to clear up mortgage debts — instead of stringing families along to extract a few more dollars — would help, not hurt, the economy.

In the days and weeks ahead, we’ll see pro-banker politicians denounce the proposed settlement, asserting that it’s all about defending the rule of law. But what they’re actually defending is the exact opposite — a system in which only the little people have to obey the law, while the rich, and bankers especially, can cheat and defraud without consequences.

By: Paul Krugman, Op-Ed Columnist, The New York Times, March 13, 2011

March 15, 2011 Posted by | Bank Of America, Banks, Citibank, Foreclosures, Mortgages, Regulations | , , , , , , , , , | Leave a comment

   

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