Are There No Standards For Punditry?
Last Sunday, ABC’S “This Week” turned to none other than Donald Rumsfeld, the former Bush administration defense secretary, to get his informed judgment of the mission in Libya. Last month, the journal International Finance featured former Federal Reserve chairman Alan Greenspan commenting on what is “hampering” the economic recovery.
Next we’ll see a cable talk show inviting the former head of BP to tell us what it takes to do offshore drilling safely.
Are there no standards whatsoever for punditry? Do high government or corporate officials suffer no consequence for leading us into calamity? Public officials who have failed spectacularly in office should have the common decency to retire in disgrace. But even if modern-day officials know no shame, why in the world would opinion pages, network talk shows and reputable journals give them a forum to offer their opinions, when they have shown that their advice isn’t worth the air it disturbs?
On ABC, Rumsfeld criticized Obama for “confusion” in the Libyan mission, noting that the coalition “is the smallest in modern history.”
As Bush’s defense secretary, Rumsfeld played a lead role in perhaps the worst foreign policy calamity since the British burned down the White House in the War of 1812. He helped cook the books that justified the war of choice in Iraq, costing thousands of Americans their lives and limbs and the government a projected $3 trillion. His war squandered the global goodwill in the wake of Sept. 11, 2001, left millions of Iraqis dead or displaced, and strengthened our adversaries in Iraq and the terrorists of al-Qaeda.
Rumsfeld personally approved the torture techniques that despoiled the nation’s reputation when they were revealed at Abu Ghraib prison. He is now hawking his unrepentant and disingenuous memoir, which concludes that the Bush administration “got it right” on the big things in Iraq and elsewhere. Why would any rational news show invite his opinion on anything except maybe how to live with yourself after screwing up big-time?
Greenspan, the ex-Maestro Chairman of the Federal Reserve, argues that “the current government activism is hampering what should be a broad-based, robust economic recovery, driven in significant part by the positive wealth effect of a buoyant U.S. and global stock market.”
But Greenspan hasn’t got a clue. His ruinous policies at the Federal Reserve helped drive the economy into the worst downturn since the Great Depression. He cheered on the housing bubble while denying its existence; touted the benefits of subprime mortgages; turned a blind eye to reports of pervasive fraud and abuse in mortgage markets; and opposed the regulation of derivatives that, he claimed, were making the system more stable.
Greenspan admitted he was “shocked” that his worldview had a “flaw.” An apology, penance, self-reflection and even a memoir describing what he did wrong are in order. Surely we can be spared Mr Greenspan’s opinion of what impedes recovery from the Great Recession that his own blind market fundamentalism did so much to produce.
And do we really need Oliver North’s views on the Constitution and the law? “[I]t’s unparalleled in my entire experience in the military going all the way back to the 1960s,” North said. “Every president has gone to the Congress to get a resolution to support whatever it is he wanted to do.”
This from the White House operative who ran a secret war not only without congressional authorization, but also despite a congressional prohibition — a folly that ended in his indictment and nearly in the impeachment of his president.
There is a striking double standard operating in America. We hear much about enforcing “accountability” from the powers that be. Teachers, students and schools are judged in high-stakes tests. Minority students particularly are subjected to “no excuses” school punishments. Punitive “three strikes and you’re out” prison sentencing disproportionately snares those caught for drug possession or other nonviolent offenses.
At the top of society, bankers, CEOs and hedge funders enjoy increased license, prestige and lavish rewards. Yet when their excesses, lawlessness, ideological blindness or simple incompetence result in calamity, there seems to be no consequence. When Charles Ferguson received an Oscar for his riveting documentary “Inside Job,” he reminded the audience that “not a single financial executive has gone to jail, and that’s wrong.” Wall Street bankers haven’t been prosecuted.
Rumsfeld and the neo-cons still enjoy plush chairs in think tanks as well as high visibility and high speaking fees. Greenspan is allowed to pose as the Maestro, even after his reputation has been completely shredded.
In Japan, high officials who failed so spectacularly would be contemplating seppuku. In Britain, they’d resign, repair to drink and end up in the House of Lords. In America, they become pundits and are offered a stage to argue the same ideas that earlier brought the nation to near-ruin, rewriting history to fit their theory.
As Talleyrand said of the restored French monarchy under Louis XVIII, they have “learned nothing and forgotten nothing.” It is a pity that these discredited pundits are offered a stage to project their inanity on the rest of us.
By: Katrina vanden Heuvel, Opinion Writer, The Washington Post, March 29, 2011
The US Chamber of Commerce: Reliably, Irredeemably Wrong
What if I told you I’d found a political group that for a hundred years had managed to be absolutely right on every crucial political issue? A political lodestone, reliably pointing toward true policy north at every moment.
Sorry. But I have something almost as good: a group that manages to always get it wrong. The ultimate pie-in-the-face brigade, the gang that couldn’t lobby straight.
From the outside, you’d think the US Chamber of Commerce must know what it’s doing. It’s got a huge building right next to the White House. It spends more money on political campaigning than the Republican and Democratic National Committees combined. It spends more money on lobbying that the next five biggest lobbyists combined. And yet it has an unbroken record of error stretching back almost to its founding.
Take the New Deal, which historians have long since credited as saving capitalism in the U.S. FDR was dealing with a nation ruined by Wall Street excess—a quarter of the country unemployed, Americans starving and hopeless. He gave his first fireside chat of 1935 on April 28, and outlined a legislative program that included Social Security. The next morning , a prominent official of the Chamber of Commerce accused Roosevelt of attempting to ‘Sovietize’ America; the chamber adopted a resolution “opposing the president’s entire legislative package.”
Fast forward to the next great challenge for America. FDR, having brought America through the Depression, was trying to deal with Hitler’s rise. In the winter of 1941, with the British hard-pressed to hold off the Germans, FDR proposed what came to be called the Lend-Lease program, a way of supplying the allies with materiel they desperately needed.
Only 22% of Americans opposed the Lend Lease program—they could see who Hitler was—but that sorry number included the Chamber of Commerce. The lead story in the New York Times for February 6, 1941 began with the ringing statement from the Chamber’s president James S . Kemper that “American business men oppose American involvement in any foreign war.”
It’s not just that this was unpatriotic; it was also plain stupid, since our eventual involvement in that “foreign war” triggered the greatest boom in America’s economic history. But it’s precisely the kind of blinkered short-sightedness that has led the US Chamber of Commerce astray over and over and over again. They spent the 1950s helping Joe McCarthy root out communists in the trade unions; in the 1960s they urged the Senate to “reject as unnecessary” the idea of Medicare; in the 1980s they campaigned against a “terrible 20” burdensome rules on business, including new licensing requirements for nuclear plants and “various mine safety rules.”
As Brad Johnson, at the Center for American Progress, has detailed recently, the US Chamber has opposed virtually every attempt to rein in pollution, from stronger smog standards to a ban on the dumping of hazardous waste. (They’re hard at work as well trying to relax restrictions on US corporations bribing foreign governments, not to mention opposing the Lily Leadbetter Fair Pay Act). If there’s a modern equivalent of World War II, of course, it’s the fight against global warming. Again a majority of Americans want firm action, because they understand the planet has never faced a bigger challenge—but that action’s been completely blocked in Washington, and the US Chamber is a major reason why. They’ve lobbied against every effort to cut carbon, going so far as to insist that the EPA should stay out of the fight because, if the planet warmed, “populations can acclimatize via a range of range of behavioral, physiological, and technological adaptations.” That is to say, don’t ask a handful of coal companies to adapt their business plans, ask all species everywhere to adapt their physiologies. Grow gills, I guess.
There’s a reason the US Chamber always gets it wrong: they stand with whoever gives them the most cash (in 2009, 16 companies provided 55% of their budget). That means that they’re always on the side of short-term interest; they’re clinically, and irremediably, short-sighted. They recently published a list of the states they thought were “best for business,” and the results were almost comical—all their top prospects (Mississippi!) ranked at the very bottom of everything fromn education to life expectancy.
But that doesn’t mean that business is a force for evil. Though the US Chamber claims to represent all of American business, their constituency is really that handful of huge dinosaur companies that would rather lobby than adapt. Around America, the local chambers of commerce are filled with millions of small businesses that in fact do what capitalists are supposed to do: adapt to new conditions, thrive on change, show the nimbleness and dexterity that distinguish them from lumbering monopolies. As Chris Mead, in an excellent history of the local chambers, makes clear, there are a thousand instances where clear-sighted businesspeople understood the future. Who lured the first movie producers to southern California? The LA Chamber, which sent out a promotional brochure in 1907. Why was the Lindbergh’s plane called “The Spirit of St. Louis”? Because the St. Louis Chamber of Commerce raised the money—that was a pretty good call.
That’s why thousands and thousands of American businesses concerned about our energy future have already joined a new campaign, declaring that “The US Chamber Doesn’t Speak for Me.” They want to draw a line between themselves and the hard-right ideological ineptitude that is the US Chamber. Some of those businesses are tiny—insurance brokers in southern California, coffee roasters in Georgia, veterinarians in Oklahoma—and some are enormous. Apple Computer, for instance, which has…a pretty good record of seeing into the future.
There’s only one reason anyone pays attention to the US Chamber, and that’s their gusher of cash. But the Chamber turns 100 next year, and it’s just possible that a century of dumb decisions will outweigh even that pile of money. If you’re trying to figure out the future, study the US Chamber—and go as fast as you can in the opposite direction.
By: Bill McKibben, Commondreams.org, March 22, 2011
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
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Fox News trumped even that, trotting out retired Marine Col. Oliver North, the former Reagan security staffer who orchestrated the secret war in Nicaragua, to indict President Obama for — you can’t make this stuff up — failing to get a congressional resolution in support of the mission in Libya.