Month: July 2008

Categories
Domestic issues Politics The Opinionsphere

Fannie Mae, Freddie Mac, and Socialism for the Rich

Paul Krugman takes a break from Obama-bashing – including not a single reference to the candidate in an entire column – in order to try to take a sensible position on the current near-collapse of Fannie Mae and Freddie Mac – and with them, potentially, the entire worldwide financial system.  While Krugman comes out in favor of a government bailout, he points out that these two companies are problematic institutions:

The most important of these privileges is implicit: it’s the belief of investors that if Fannie and Freddie are threatened with failure, the federal government will come to their rescue.

This implicit guarantee means that profits are privatized but losses are socialized. If Fannie and Freddie do well, their stockholders reap the benefits, but if things go badly, Washington picks up the tab. Heads they win, tails we lose.

Such one-way bets can encourage the taking of bad risks, because the downside is someone else’s problem.

The Financial Times’s Willem Butier takes a similar position, but with more verve:

There are many forms of socialism. The version practiced in the US is the most deceitful one I know. An honest, courageous socialist government would say: this is a worthwhile social purpose (financing home ownership, helping my friends on Wall Street); therefore I am going to subsidize it; and here are the additional taxes (or cuts in other public spending) to finance it.

Instead the dishonest, spineless socialist policy makers in successive Democratic and Republican administrations have systematically tried to hide both the subsidies and size and distribution of the incremental fiscal burden associated with the provision of these subsidies, behind an endless array of opaque arrangements and institutions…

So let’s call a spade a bloody shovel: nationalise Freddie Mac and Fannie Mae. They should never have been privatised in the first place. Cost the exercise. Increase taxes or cut other public spending to finance the exercise. But stop pretending. Stop lying about the financial viability of institutions designed to hand out subsidies to favoured constituencies. These GSEs were designed to make losses. They are expected to make losses. If they don’t make losses they are not serving their political purpose.

So I call on Secretary Paulson, Chairman Bernanke and Director Lockhart to drop the market-friendly fig-leaf. Be a socialist and proud of it. Come out of the red closet. The Soviet Union may have collapsed, but the cause of socialism is alive and well in the USA.

Many reporters have been using the phrase “too big to fail” to refer to the crisis surrounding Freddie Mac and Fannie Mae – Butier acknowledges this for what it is – a socialism for the rich, in which concentrations of power are protected, profits are privatized, and losses are spread across the social spectrum.

Categories
Humor Obama

My Obama-themed Wallpaper

Okay – we’re getting ahead of ourselves.  But it looks good.

Categories
Great Britain Iraq

Why Bush’s Blunders are Derailing Plans for Thatcher’s Funeral

[digg-reddit-me]Britain’s Daily Mail reports that plans are already under way for Margaret Thatcher’s funeral – although she is in good health and not expected to kick off any time soon.  The article explains that long-term planning is necessary for any potential event that involves the Queen. This is the big news of the piece – that Lady Thatcher will be given the first State funeral for a non-royal since Winston Churchill, and only the sixth State funeral for a non-royal since 1800.

There is one snag in the current plans as traditionally soldiers line the route along which the coffin will travel, but:

there are insufficient troops available to line the route because the Armed Forces are so overstretched in Afghanistan and Iraq.

Categories
Life New York City

Manhattanhenge

Today was Manhattanhenge, one of the semi-annual days in which the setting sun lines up with Manhattan’s main street grid.

Manhattanhenge
[Image by sahadeva.]

Manhattanhenge
[Image by the idealist.]

Categories
Election 2008 Giuliani McCain Obama Politics

Giuliani Doesn’t Get It

Rudy Giuliani proves he doesn’t get it in this clip.

Barack Obama is popular because he’s tapping into anti-Americanism?  Or is it because – as most foreign observers have said – because Obama gives people whose hopes for America have been dashed under this president another chance to hope?

Is this the anti-Americanism that Giuliani was talking about:

Patrick Devedjian, the head of President Sarkozy’s center-right political party, called Mr. Obama’s candidacy ‘’a very beautiful image of America, the image of a candidate who transcends race and got to where he is because of merit alone.” And Bertrand Delanoë, the mayor of Paris, declared: “His candidacy carries an enormous hope for his country and for peace in the world…”

That sense of optimism trickled through to Hong Kong’s financial district. “I feel his image is younger, fresher and more energetic, with no baggage and a shorter history,” said Richard Law, 50, a lawyer…

The enthusiasm was also clear among conservative politicians, such as Karl-Theodor zu Guttenberg, the foreign policy spokesman for the Christian Social Union, the sister party of Chancellor Angela Merkel’s conservative Christian Democrats.

If Mr. Obama becomes president, “we will reach a new peak of trans-Atlantic romanticism,” he said…

Here’s the clip of Giuliani:

(h/t The Hill.)

Categories
Election 2008 National Security Obama Politics

Why Obama’s FISA Vote Shouldn’t Disillusion You

[digg-reddit-me]I agree with those such as Glenn Greenwald who are criticizing Obama over this issue. But my argument against those who have been disillusioned by this is several-fold:

  1. If you thought Obama was not a pragmatist who “attempts to find a rational common ground on controversial issues”, then you weren’t paying attention. Obama is not and has never been an ideologue – he is a mainstream politician.
  2. Obama promised to filibuster one provision which he still opposes, and voted against. He only changed the extent to which he would support opposition against it.
  3. The rhetoric about the “shredding of the Constitution” is over-the-top. The FISA bill – which Obama saw as flawed but better than the status quo, and which he never said he would oppose – strikes a balance between liberty and security. You can disagree with the balance – but to paint the issue as black-and-white is to misunderstand the issues in a basic sense. There are quite a number of issues which many of these same Obama supporters agree with that also would seem to violate core freedoms and the Constitution. For example, Obama supports gun control despite the right to bear arms; Obama supports campaign finance legislation despite it’s burdens on free speech; Obama supports a national education policy despite the tenth amendment. All of these require a balance between liberty and the Constitution on one hand and progressive goals on the other. In a similar way, the FISA debate is the balance between the fourth amendment on one hand and national security on the other. We can disagree where that line should be drawn – but the rhetoric of both the right and left ignores the FACT that neither side is taking a pure stand. Both are arguing for a particular balance.
  4. Much of the disillusionment stems from a hope that many people had that Obama would somehow make things right and undo the Bush years. But Obama is not some messiah – he is a politician, a cautious and pragmatic one. The hope that I have is not that Obama will fix things himself – but that he will take steps to allow those concerned to engage with power. Obama will not himself be able to accomplish what a strong movement will – but he will be able to magnify the power of the movement as he takes steps to ensure government accountability. We are the change we are waiting for.
  5. Obama is just another politician. But he is an uncommonly good one, an uncommonly thoughtful one, and an unusually astute one. He is a candidate worth supporting – and one who can achieve some real change with our support.
Categories
Election 2008 National Security Obama Politics The Opinionsphere

Barack Obama, FISA, and Telecom Immunity

As I posted previously – there has been a lot of anger by a significant subset of Obama supporters at his reversal on how he would oppose the telecom immunity provision in the FISA bill.

As part of the group that is the center of much of this protest – “Senator Obama – Please Vote NO on Telecom Immunity – Get FISA Right“ – I have had a front-row seat to observe the raw feelings of the most disappointed supporters.  I argued in my previous post that many of these supporters had lost perspective – as they abandoned Obama over a position that was a rather minor element in his campaign.

But one thing my response missed – and most of the angry Obama supporters missed – is precisely what Obama changed his mind about.

Obama – through a spokesperson – had promised to support a filibuster of any law that would give the telecommunications companies immunity from civil liability for their actions relating to the warrantless wiretapping program:

To be clear: Barack will support a filibuster of any bill that includes retroactive immunity for telecommunications companies

Throughout his campaign, this promise was reiterated.

In February, Obama voted to strip away the provision that gave the telecoms immunity from the FISA bill – but the amendment failed to garner sufficient votes to override a presidential veto.

As the FISA bill came up for a vote this July, Obama announced that he had changed his mind about the degree to which he would oppose telecom immunity.  Yesterday, he voted for an amendment that would strip the immunity provisions from the FISA bill, but voted to pass the bill even though the amendment failed to get the required support.

In other words, while he still agrees with the position that the telecom companies should not get immunity, he has made a tactical decision that the costs of opposing the full measure were not worth the benefits.

Many who have expressed disagreement with Obama have talked about how he has changed his mind about defending the Constitution, how he is now agreeing to eviserate the Fourth Amendment, etcetera and so on.  They argue against the full FISA law itself – as well as the telecom immunity provision.  But although Obama has said that he sees the law as flawed, he did not commit himself to opposing it.

Most of those who are disillusioned by Obama’s vote don’t seem be interested in the subtlties.  They speak in terms of betrayal, in terms of being with-us-or-against-us, and they judge Obama harshly by an ideological purity scale.  But if any of these people had evaluated Obama seriously before – they would have seen that he was not the ideological purist they claim he was.

As Gail Collins put it in an insightful column today (an unusual event for her):

But if you look at the political fights he’s picked throughout his political career, the main theme is not any ideology. It’s that he hates stupidity. “I don’t oppose all wars. What I am opposed to is a dumb war,” he said in 2002 in his big speech against the invasion of Iraq. He did not, you will notice, say he was against unilateral military action or pre-emptive attacks or nation-building. He was antidumb.

Most of the things Obama’s taken heat for saying this summer fall into these two familiar patterns — attempts to find a rational common ground on controversial issues and dumb-avoidance.

On the common-ground front, he’s called for giving more federal money to religious groups that run social programs, but only if the services they offer are secular. People can have guns for hunting and protection, but we should crack down on unscrupulous gun sellers. Putting some restrictions on the government’s ability to wiretap is better than nothing, even though he would rather have gone further.

Dumb-avoidance would include his opposing the gas-tax holiday, backtracking on the anti-Nafta pandering he did during the primary and acknowledging that if one is planning to go all the way to Iraq to talk to the generals, one should actually pay attention to what the generals say.

Touching both bases are Obama’s positions that 1) if people are going to ask him every day why he’s not wearing a flag pin, it’s easier to just wear the pin, for heaven’s sake, and 2) there’s nothing to be gained by getting into a fight over whether the death penalty can be imposed on child rapists.

I’ll take this opportunity to point out that Collins is misleading about how she uses the death penalty example as Obama indicated he was in favor of the death penalty for child rapists before the recent Supreme Court decision in The Audacity of Hope.

But her basic point is right.

Categories
Election 2008 McCain National Security Obama Politics

The Military Chooses Obama

Daniel Miessler asks:

If McCain is the military guy – why are members of the military giving far more than to Obama than McCain?

Categories
Election 2008 Foreign Policy McCain Obama Politics

Berlin Loves Obama


[Picture by Wolfgang Staudt.]
Der Spiegel broke the story last week that Obama might be making a major speech in Berlin, perhaps before the famous Brandenburg Gate where President Ronald Reagan called on the Soviet Union to tear down the Berlin Wall.

Just yesterday, Der Spiegel reported that in an effort to avoid taking sides in the American election Angela Merkel, the German chancellor, had decided that:

an invitation would also be extended to John McCain.

I get a lot of pleasure out of that idea – based on the reports of Obamania in Germany.  I’m sure McCain would not be foolish enough to put himself in this position – but if he did – and he attempted to give a speech in Berlin the contrast would likely be enormous.

A German friend of mine tells me that in Berlin, you can often spot people wearing pins or shirts or scarves with Obama’s name, face, or logo them.  Tens of thousands of excited and enthusiastic Germans crowding to see Obama give an historic speech, seeing in him a new hope for America, versus a drab few hundred who might go to see McCain.

Categories
Domestic issues Election 2008 McCain National Security Obama Politics Reflections The War on Terrorism

Why I Am Still Supporting Barack Obama After His Vote For Telecom Immunity

[digg-reddit-me]Feelings are running high among us Obama supporters who also are strongly opposed to telecom immunity and the current FISA bill.

As the New York Times noted this weekend, the largest and most quickly growing group in Barack Obama’s social network was “Senator Obama – Please Vote NO on Telecom Immunity – Get FISA Right“.  I had joined the group a few days before the article had come out because I, like many others, felt strongly about this issue.  I still do.  And I believe Barack Obama took the wrong position.

But what has astounded me in the past few days has been the overwrought emotionalism that – from my perspective – has caused many of Obama’s supporters to lose perspective on this issue.  Here’s a sample of some of the sentiments that have been sent out to all of the members of the “Get FISA Right” group in the past few hours, since Obama voted in support of the bill:

“A dream died today!”

“Obama just lost my vote!!!”

“As we are about to throw out the 4th amendment shall we redefine the Bill of Rights as the first 9 amendments, or should we just leave a blank between 3 and 5 as the 13th floor is left out in high rise buildings.”

“I think we finally got to see the side of Obama we all deep down, thought was there. Another money grubbing lawyer going along with the pack; saying one thing doing another.”

“Please stop giving your hard earned money to this fraud!”

“Today, the Constitution will be shredded at the hands of Democrats and Barack Obama. I no longer believe that voting makes a difference. I am completely dispirited. Obama’s talk of change is a sham.”

“I find myself today looking for Ralph Nader’s campaign website.”

Perhaps more honest than these sentiments, one writer started with this caveat:

“At this very moment, this is how I FEEL. It does not mean it is how I will follow through, merely how I feel…”

He then unleashed a tirade.  But at least he could see that he had lost some sense of perspective.

Glenn Greenwald, probably the foremost expert on this topic, one of the most influential opponents of this bill, who has been tirelessly pushing this issue through his blog and through guest appearances on radio shows was able to keep perspective when Obama first announced his turn-around on this issue:

There is no question, at least to me, that having Obama beat McCain is vitally important. But so, too, is the way that victory is achieved and what Obama advocates and espouses along the way.

The overheated rhetoric by these passionate supporters lends credence to the scoffing of the right-wingers who have insisted that Barack Obama’s support is weak because the young are naive and credulous and easily marginalized.

Truly – how many people supported Barack Obama over Hillary Clinton, Chris Dodd, Joe Biden, Bill Richardson, John Edwards, Dennis Kucinich, and Mike Gravel because of his position on telecom immunity?  Far fewer than are now peevishly demanding refunds for their donations.  This is an important issue – but it is far from the only issue.

Those of us who have been involved with politics before know that no matter how great the individual, you should never place your faith in a politician.  A knowledge of history teaches us that every great person is still limited by their times.  Abraham Lincoln – perhaps our greatest president – was vilified by the abolitionists of his day for being too pragmatic, for compromising too easily, for not sticking to his principles.  In the end, Lincoln’s greatness came not from the fact that he stood on principle and defeated his adversaries – but that he skillfully managed our nation through a great crisis and took every opportunity he thought prudent to achieve the ends he sought. But it was the people and the battles that created the opportunities.  Lincoln was only a great leader because during that long, hard war, we became a great people, willing to die for the fragile idea of freedom.

Barack Obama is not Abraham Lincoln, and we are not in a civil war.  But we do face a very real crisis of identity and very real threats from at home and abroad.  What we need to remember – as citizens – is that Obama is not and cannot be our savior.  What Obama’s campaign has always been about is us.  Unlike Hillary Clinton or John McCain or any other candidate, Obama’s campaign was about the movement that was supporting him.  Which is why both Clinton’s and McCain’s campaigns have focused their attacks on Obama’s supporters as well as the candidate himself.  For the past few weeks, McCain has been trying to put a wedge between Obama and his supporters – based on the theory that if he can paint Obama as “just another politician,” the youth vote that has been expected to throw the last few elections to the Democrats will forget to show up, again.

Obama is another politician.  An uncommonly good one.  An uncommonly thoughtful one.  An unusually astute one.  But like very person, and like every politician, he has made a mistake and voted for an awful bill.

I still support Obama.  And so should you. Winning this election is not about Obama – but about the movement.  If we do not become a great people, then neither Obama nor any other politician can become a great president.

Obama has spoken positively about how this movement should put pressure on him and every other politician to do the right thing – and with his campaign he has created and with his presidency he has promised to create more of the tools to do just that.  No one will get every issue right – but the core reason to support Obama, as Lawrence Lessig has argued, is because he supports reforming the process to allow citizens to truly engage with power – by making the government more transparent and more accountable.  He also happens to be on the right side of most of these issues – supporting increased transparency in Washington, restoring habeas corpus, ending our neo-empire in the Middle East, opposing wars of choice, net neutrality, and many other issues.

For those who have declared that the “dream” died today – stop dreaming about Barack Obama and start working to get our nation back on the right track.  Electing Barack Obama is only the first step, as today’s events have proven.

I am disappointed in him.  And I think criticism is warranted.  But temper tantrums rarely do anyone any good.

This disappointment will not diminish one iota my determination to have Barack Obama elected the next President of the United States of America. This is our moment.  Let’s not let momentary disappointment lead to a disengagement with politics.