What rock did Herb just crawl out from?

The Wall Street Journal addresses Herb’s ridiculous comment in writing, Treasury Official: ‘No Too Big to Fail Guarantee’ for Big Financial Firms:

There is no U.S. government guarantee to protect the largest financial firms, a Treasury Department official said Thursday, as a congressional watchdog criticized the $45 billion in government aid provided to Citigroup Inc.

Herbert Allison, who oversees the Treasury’s $700 billion financial rescue plan, disagreed with members of a congressional oversight panel that some financial firms benefit from the assumption that the government would step in to prevent their failure.

“There is no too big to fail guarantee on the part of the U.S. government,” Mr. Allison said.

How often did we hear similar drivel about Freddie Mac and Fannie Mae?

What happens to people when they get inside the Beltway? Do they instinctively become serial panderers, if not outright liars?

Elizabeth Warren, who chairs the five-member Congressional Oversight Panel, said it was clear that financial markets do assume the guarantee exists, pointing to a recent ratings agency report that specifically noted the government’s role in backing Citigroup.

“The market clearly perceives that there is a too big to fail guarantee,” Ms. Warren said. “That gives Citi an advantage in raising capital. … That is very valuable to Citi.”

Panel members locked horns with Mr. Allison over his reluctance to answer some questions, primarily regarding the health of Citigroup when the government injected capital into the bank in late 2008. Panel member Damon Silvers, pressing Mr. Allison on whether the bank was at risk of failure at the height of the financial crisis, said it was “extraordinary that it is not possible to have a straightforward conversation.”

The fact that America can not get straightforward and honest answers from our government officials plays right into my commentary the other day, Harry Markopolos: “Don’t Trust Your Government”.

Bend over, Herb.

LD

“This isn’t how responsible families do their budgets. When times are tough, you tighten your belts,” Obama said, according to a White House transcript of his appearance Tuesday at a high school in North Nashua, N.H.

“You don’t go buying a boat when you can barely pay your mortgage,” Obama said. “You don’t blow a bunch of cash on Vegas when you’re trying to save for college. You prioritize. You make tough choices.”

The comments quickly sparked a flurry of reaction from federal, state and local lawmakers in the Silver State, which had an unemployment rate of 13 percent in December.

Tough choices? Like sticking a bunch of pork in the stimulus bill? Like bailing out Wall Street and saying the heck with Main Street. Like holding back stimulus dollars till an election year so he can boost the Democrats’ prospects in the midterms while people have been losing homes and jobs, suffering horribly all through 2009? Those tough choices?

His preaching on the subject comes as a shock indeed considering this President in his first year has spent more than all other Presidents combined. He hosts half million dollars pizza parties, averaging a party every three days. He had the most expensive inauguration ever, clocking in at about $170 million, spent $6 million on a faux Grecian temple at the Convention and spent three quarters of a billion dollars to get the Presidency in this “no lose year” for Democrats. Do as I say, not as I do.

Anyone will tell you, modeling good behavior works a lot better than preaching. Something Mr. Obama might want to make note of, considering he has a bad habit of living beyond his means. It takes nerve to ask others to sacrifice when he and the First Lady spare no expense for themselves on the taxpayers’ dime. Why should we be surprised at his spending the taxpayers’ money so recklessly when his own past indicates the same pattern.

He bought a house he couldn’t afford with the help of Tony Rezko, then under indictment. Obama later said, “it was boneheaded” yet he feels quite comfortable telling other Americans the proper way to “tighten their belts.” When credit card companies wanted to charge usury rates, Obama did nothing to oppose them.

The President and First Lady had an opportunity to lead by example in the sacrifice department. Unfortunately, they have repeatedly demonstrated they are far more concerned with enjoying the perks and toys of office than tightening their own belts as a way to both inspire the American people and to show that they “feel our pain.”

“I’ll do everything I can to give him the boot,” Las Vegas Mayor Oscar Goodman said … adding that he was incensed when he heard about the comments and said he would no longer welcome the president here if he visits.

“This president is a real slow learner,” said Goodman, who is not affiliated with a political party.

Nevada’s economy has been hit hard with foreclosures, unemployment and bankruptcies during the past two years as consumers everywhere tighten leisure spending and companies spend less on meetings and conventions.

And when your own Senator Majority Leader, the much maligned Harry Reid – most likely the man who lit a fire under Obama to run in the first place – condemns your remarks, you know you’ve stuck your foot in it: Reid issued a statement:

“Reid to Obama: ‘Lay off Las Vegas’.

“The President needs to lay off Las Vegas and stop making it the poster child for where people shouldn’t be spending their money,” Reid said. “I would much rather tourists and business travelers spend their money in Las Vegas than spend it overseas.”

Obama’s reply was insipid at best:

“I was making the simple point that families use vacation dollars, not college tuition money, to have fun,” Obama said, according to the letter. “There is no place better to have fun than Vegas, one of our country’s great destinations.”

Sen. John Ensign, a Republican, complained that Obama “failed to grasp the weight that his words carry.”

Well, Ensign hits the nail on the head. How can this man be the POTUS and not understand that his every remark is tracked to within an inch of its life. If the President voices disapproval about a city – it’s revenues falter. How could he not know that?

Las Vegas’ Mayor Goodman concluded with this telling remark:

“Sometimes when he’s not using his monitors and reading what he says, he doesn’t think…”

The President doesn’t think? Is that the reason why Axelrod and Co. never want the president to go off script? Is Goodman implying that without his trusty TelePrompTer, POTUS’ handlers never know what is going to happen? Like Obama’s careless remark that “the Cambridge police acted stupidly” before he knew the facts of the case. That little nugget arguably went a long way toward costing the Democratic Party the MA Senate seat.

Goodman also said Obama has a “psychological hang-up” about Las Vegas. So I offer one of two theories about his remarks:

1. Perhaps his sensitive nature is still holding a grudge against Las Vegas because Hillary won the Nevada primary – forcing Obama to have to fight on for the nomination.

2. The “my uncle liberated Auschwitz” syndrome – he is just looking for the nearest convenient sound bite, accurate or not.

He figures no one is going to challenge him on the accuracy of his remarks or take him to task for them. Why wouldn’t he believe this? The media hasn’t bothered to do their jobs so far. It never occurs to him that his careless words – pulling the nearest example out of his, er, hat that he can find, can have serious repercussions to others – being that he is the President of the United States.

As Hillary Clinton once said, “you don’t need a President who looks down at you.”

Millions of Americans are hurting. They watched a man win a historic election, promising change only to see politics as usual and worse, a White House that is deaf, dumb and blind to their concerns. A spendthrift who tells everyone else how to sacrifice is as elitist as he is out of touch.

Someone needs to remind the President that when he mouths off, he is not an adjunct lecturer getting cute at a cocktail party, spouting some witty bon mot for the entertainment of his hangers on.

Words are not just words anymore. The President is being held accountable for them — if not by the media, then by the voters. It would be helpful if he held himself accountable as well.

Let’s not forget who was in charge of Fannie Mae and Freddie Mac, shall we?? Barney? Chris? Ahem. Funny how that often goes unmentioned, isn’t it?

You wanna know what else is funny about this whole negative attitude toward lobbyists? Especially after Obama ripped on them again? That he INVITED THEM TO THE WHITE HOUSE FOR A PRIVATE BRIEFING THE DAY AFTER THE STATE OF THE UNION. I am not kidding, people – how many different ways can I say, “What a freakin’ hypocrite?????” Or, “How do people buy the crap that comes out of his mouth???” Holy smokes!!! Those of us who are sentient beings knew this was happening, that he was saying one thing, while doing another. But, c’mon, how blatant can he be that he thinks we are the biggest bunch of morons on the face of the planet??? And how can so many Americans BE such morons to buy this crap from him? Good grief, people, THINK!!!

So, here it is, in black and white:

[Snip] The Treasury Department on Thursday morning invited selected individuals to “a series of conference calls with senior Obama administration officials to discuss key aspects of the State of the Union address.”

The invitation, which went to a variety of stakeholders, was sent by Fred Baldassaro, a senior adviser at the Treasury Department’s Office of Business Affairs and Public Liaison.

The invitation stated, “The White House is encouraging you to participate in these calls and will have a question and answer session at the end of each call. As a reminder, these calls are not intended for press purposes.” (Emphasis mine.)

Yeah, I’ll just bet they aren’t:

The calls are scheduled to begin at 11:30 a.m. on Thursday, with the first topic being job creation and economic growth.

Another call, at 1 p.m., is on government reform and transparency. Republicans have criticized the Obama White House for not being more transparent in its discussions with Congress on healthcare reform. Obama recently acknowledged that the legislative process has not been as open as he promised on the campaign trail.

Other issues that will be addressed on Thursday include education, climate change and healthcare reform.

Oh, yay!! Doesn’t that make you feel better? Of course, they have been there all along, steering this Healthcare bill, from Obama’s original meeting with Big Pharma to the insurance industry lobbyists. Gee, can’ imagine why so many of us oppose this current bill: because we know what actually wrote it.

But Obama better be careful before he hurts their feelings:

A handful of lobbyists told The Hill on Thursday morning that they received the invitations and were planning to call in.

Some lobbyists say they are extremely frustrated with the White House for criticizing them and then seeking their feedback. Others note that Democrats on Capitol Hill constantly urge them to make political donations.

One lobbyist said, “Bash lobbyists, then reach out to us. Bash lobbyists [while] I have received four Democratic invitations for fundraisers.”

In his State of the Union on Wednesday, Obama once again targeted K Street: “We face a deficit of trust — deep and corrosive doubts about how Washington works that have been growing for years. To close that credibility gap, we have to take action on both ends of Pennsylvania Avenue — to end the outsized influence of lobbyists; to do our work openly; to give our people the government they deserve.”

So, um, this is how Obama expects to fix it? Invite the lobbyists to participate in these major issues facing the country? Well, sure, that makes sense. In the Upside-Down World of Washington, DC, that is.

And all in the light of day, right? Oh, sure, PollyAnna:

The Treasury Department referred The Hill’s request for comment to the White House, which at press time had not responded to questions on this issue.

On Thursday afternoon, White House spokesman Josh Earnest stated in an e-mail, “As part of our effort to reach out and engage with the public and policymakers, it is standard for our outreach team to organize a conference call, so that we can include people who are not in Washington, after a major speech or announcement through the president’s priorities. These calls are targeted at a diverse group of community and government leaders including mayors, governors, faith groups, women’s organizations, representatives from the African American and Latino communities to share as much information about the administration’s agenda as possible. The calls, which include question-and-answer sessions, typically include hundreds of people from across the country…”

Lobbyists say the Obama White House has held many off-the-record teleconferences over the past year.

For example, lobbyists and others were invited to a teleconference with “senior Obama administration officials” on Monday to discuss the administration’s plan to improve the lives of middle-class families.

The invitation, which is addressed to “Friends,” emphasizes in bold and italics that “this call is for background information only and not intended for press purposes.” It advises callers to tell the operator “you’re joining the ‘White House Briefing Call.’ ”

Another lobbyist said these types of teleconferences occur “all the time.” (Emphasis mine)

And that is why many on K Street are exasperated with Obama’s use of lobbyists as a punching bag. Some have said they understood why he used strong rhetoric on the campaign trail but are irritated the White House solicits their opinions while Obama’s friends in Congress badger them for political donations.

Don’t you feel sorry for those poor lobbyists who are shaping our policies?

Or do you feel anger that we have a government that is so duplicitous, so underhanded, so hypocritical, and so conniving?? Obama gets up there spewing this bullshit at the SOTU, and the VERY NEXT DAY, meets with K Street Lobbyists. And he does so with no shame, not even a hint that the impropriety gets through to him.

Wow. Show of hands – WHO bought this crap from him and the Democrats?? Anyone? Bueller?? And we wonder why this country is in such a mess…

That would be Mort Zuckerman. If you are not familiar with the name, you surely are with the U.S. News and World Report, of which he is Editor-in-Chief, or the New York Daily News, which he owns (along with other properties). He is a gazillionaire (okay, just a billionaire), and he supported Obama in the 2008 Election. Now, he is just a tad put out as his Op-Ed, “He’s Done Everything Wrong,” indicates (h/t to Andy):

Obama punted on the economy and reversed the fortunes of the Democrats in 365 days.

He’s misjudged the character of the country in his whole approach. There’s the saying, “It’s the economy, stupid.” He didn’t get it. He was determined somehow or other to adopt a whole new agenda. He didn’t address the main issue.

This health-care plan is going to be a fiscal disaster for the country. Most of the country wanted to deal with costs, not expansion of coverage. This is going to raise costs dramatically.

In the campaign, he said he would change politics as usual. He did change them. It’s now worse than it was. I’ve now seen the kind of buying off of politicians that I’ve never seen before. It’s politically corrupt and it’s starting at the top. It’s revolting.

Holy moley! Bear in mind, this man, Mr. Zuckerman, was a SUPPORTER. I sure can’t disagree with his assessment, though. He continues:

Five states got deals on health care—one of them was Harry Reid’s. It is disgusting, just disgusting. I’ve never seen anything like it. The unions just got them to drop the tax on Cadillac plans in the health-care bill. It was pure union politics. They just went along with it. It’s a bizarre form of political corruption. It’s bribery. I suppose they could say, that’s the system. He was supposed to change it or try to change it.

Even that is not the worst part. He could have said, “I know. I promised these things, but let me try to do them one at a time.” You want to deal with health care? Fine. Issue No. 1 with health care was the cost. You know I think it was 37 percent or 33 who were worried about coverage. Fine, I wrote an editorial to this effect. Focus on cost-containment first. But he’s trying to boil the ocean, trying to do too much. This is not leadership.

Obama’s ability to connect with voters is what launched him. But what has surprised me is how he has failed to connect with the voters since he’s been in office. He’s had so much overexposure. You have to be selective. He was doing five Sunday shows. How many press conferences? And now people stop listening to him. The fact is he had 49.5 million listeners to first speech on the economy. On Medicare, he had 24 million. He’s lost his audience. He has not rallied public opinion. He has plunged in the polls more than any other political figure since we’ve been using polls. He’s done everything wrong. Well, not everything, but the major things.

I don’t consider it a triumph. I consider it a disaster.

You and me both, Mr. Zuckerman. But if I may be so bold, perhaps lofty words are not a prerequisite for the highest office in the land. Just saying. Perhaps you should have looked a little deeper into how much Obama enjoyed the adoring masses, buying the PR spin that he was The One. The problem is, he started to believe it. He believed/believes it really is all about him. But, as a truly great president said, “I feel your pain.”

And speaking of Clinton:

One business leader said to me, “In the Clinton administration, the policy people were at the center, and the political people were on the sideline. In the Obama administration, the political people are at the center, and the policy people are on the sidelines.”

Again, YES. I hate to keep harping on this, but why were you not capable of seeing this BEFORE?? When Obama regurgitated Deval Patrick’s speeches, that should have been a clue that it was absolutely NOT about policy, but all about politics. When he continually took Hillary Clinton’s policy positions for his own, instead of crafting them himself, that should have been a bit of a clue. But no. Zuckerman, and to many like him, failed to see what was right before their eyes. They believed the hype, too:

I’m very disappointed. We endorsed him. I voted for him. I supported him publicly and privately.

I hope there are changes. I think he’s already laid in huge problems for the country. The fiscal program was a disaster. You have to get the money as quickly as possible into the economy. They didn’t do that. By end of the first year, only one-third of the money was spent. Why is that?

He should have jammed a stimulus plan into Congress and said, “This is it. No changes. Don’t give me that bullshit. We have a national emergency.” Instead they turned it over to Harry Reid and Nancy Pelosi who can run circles around him.

It’s very sad. It’s really sad.

He’s improved America’s image in the world. He absolutely did. But you have to translate that into something. Let me tell you what a major leader said to me recently. “We are convinced,” he said, “that he is not strong enough to confront his enemy. We are concerned,” he said “that he is not strong to support his friends.”

The political leadership of the world is very, very dismayed. He better turn it around. The Democrats are going to get killed in this election. Jesus, looks what’s happening in Massachusetts.

Well, for a moment, perhaps, but even in other countries, people are waking up (check out The Telegraph, or Der Spiegel sometime). But here’s the thing: by caring more about appearances than policy, being liked more than fixing problems, Obama, and all who voted for him, have done this country a tremendous disservice. We told you it wasn’t American Idol for which he was running, but the presidency.

There is still some delusion, though:

It’s really interesting because he had brilliant, brilliant political instincts during the campaign. I don’t know what has happened to them. His appointments present somebody who has a lot to learn about how government works. He better get some very talented businesspeople who know how to implement things. It’s unbelievable. Everybody says so. You can’t believe how dismayed people are. That’s why he’s plunging in the polls.

I can’t predict things two years from now, but if he continues on the downward spiral he is on, he won’t be reelected. In the meantime, the Democrats have recreated the Republican Party. And when I say Democrats, I mean the Obama administration. In the generic vote, the Democrats were ahead something like 52 to 30. They are now behind the Republicans 48 to 44 in the last poll. Nobody has ever seen anything that dramatic.

Did you mention by how much Obama has run up the National Debt? You know, the one he has increased by $1.7 TRILLION since he took office? And he’s looking to increase it by even more. Oh, yippee.

If I may return to another part of Mr. Zuckerman’s editorial, no offense, sir, but OBAMA didn’t have “brilliant, brilliant political instincts during the campaign,” his HANDLERS, Axelrod and Plouffe. did. Had you taken just a few minutes and used the considerable resources at your disposal, you could have looked into his REAL record in IL. You would have seen the shenanigans he employed to even get elected. Now, maybe YOU think that is “brilliant,” but I see it as being an indicator of the man’s moral fiber, and his “win at all costs,” mentality, no matter who he steps on, or what kind of damage he does. Perhaps what Zuckerman is seeing now, is the failure of Axelrod and Plouffe to pull the man off the Campaign Trail and him getting to work. Obama still hasn’t stopped, as he heads off to Ohio on Friday.

Still, at least he is finally getting is. In this interview with Neil Cavuto (h/t to Logistics Monster), he can barely contain himself:

Mr. Zuckerman made some mighty interesting assertions in there, didn’t he, especially in terms of housing? Welcome to the reality based community, sir.

Indeed, slowly but surely, the Kool Aide is wearing off, but not until Obama has done untold damage to out country – IN ONE YEAR. Will he be able to turn it around? I don’t know, but that would presuppose he was capable of introspection, and a willingness to actually listen to the people, as opposed to talk, talk, talking to us (though apparently, he hasn’t talked at us enough – we just don’t get it, you know – because apparently, we are all a bunch of mo-rons not to buy his healthcare bill). Just a thought.

In the meantime, maybe we have all learned a lesson after this presidential election, and after the Massachusetts election. People can be hoodwinked, but not forever. When they wake up, they are none too happy at the lies they were told. That’s why we have elections, and this year is shaping up to be mighty interesting indeed…

Fast forward to the end of year one of President Obama’s rule. He outsourced control to the likes of Pelosi, Reid, Dodd, Franks, et al – the worst of what the current Democratic Party has to offer. Just like the Bush Administration before them, they co-opted the “never let a crisis go to waste” mantra, using the fears of the American people to ram through an unsuccessful pork-laden stimulus package and an incomprehensible health care giveaway to insurance and big phrma. But no jobs. Where are the jobs? Tone deaf. Arrogant. 2008 all over again. We are still being told we don’t matter. But this time, it is not just Hillary supporters – it is all of the American people. I live in a liberal area and I am seeing the anger growing even here.

Citizens at both ends of the spectrum are steaming and do not appreciate having their good will and trust abused. This was made clear in the past two Governor’s races. The special MA Senate race, where it looks as though Scott Brown may actually pull out a win in true blue Massachusetts, is sending shock waves in political circles throughout the country. As it should. That is the price you pay for treating the American people like we are a bunch of idiots. Congress, living in its rarified air, has the audacity to think they know what is best for us when they do not share our struggles.

But how can we blame Obama and Congress for thinking the American people can be led around like sheep when that is exactly what happened last year. The majority of voters bought into a commercial brand, without any evidence that the product could deliver as advertised.

How many of us have been calling our representatives complaining of reckless spending? My Congressman’s assistant had the facts wrong on the health care bill even as she bragged to me about its merits. My Senators’ staffers are arrogant and impatient when I call. And they are elitist as well. I have done my homework. I am their constituent and voicing my righteous concerns. And I am still being told to sit down and shut up.

The Democrats are as drunk with power as the Republicans were when they had a huge majority in 2002. The neo-cons predicted a supermajority for 20 years. They got their comeuppance. The same is coming for Democrats. I am heartbroken after biting my lip for eight years with the rule of the neo-cons that this is the “change” we are stuck with. Bailing out Wall Street and not Main street, back door deals and no transparency. Continuation of the policies of the previous administration.

I, too, was for Martha Coakley and wrote on her behalf when she was contesting the primary. I still believe she was the best of the Dem. primary contestants (particularly since she was running against a Pelosi pick) but I am disturbed by what I have learned and seen unfold this last week. Considering Coakley fought back the Stupak amendment, supports Gay rights and supported Hillary to the end, I am miserable to see her stand in lock step now with Obamacare and some of her other statements and actions this week have knocked me for a loop.

For her to fall into Party groupthink behavior is not what we need in the Senate. We have far too much of that already. Coakley having a fundraiser thrown by Big Insurance/Big Phrma was not the message the Coakley campaign wanted to send. Part of the reason I liked Coakley was that she did not stand with Obamacare. She has folded. In so doing, she has likewise turned a deaf ear to the mood of the country and to her own principles. That action has also tied her to Obama, scapegoating her for the actions of this reckless Administration.

The herd mentality is common to both parties and is killing us all. We need independent thinkers regardless of party. In our current system where there is no limit on campaign spending or fundraising, how is it possible for our public servants not to be slaves of the almighty dollar. When they are threatened with primary challenges if they do not kiss the feet of their respective party’s establishment and follow their orders, how can they vote their consciences? Clearly, public service of this kind is not meant to be a lifetime career. A little less focus on self-aggrandizement or re-election and more focus on doing the people’s business is in order.

Scott Brown may have skeletons in the closet of his record as well. Coakley might be the sacrificial lamb here since the Pelosi wing clearly has no use for her. But the fact is, what we have of late discovered about some of Coakley’s record does not look good. As much as I would like to trumpet a qualified woman for this office, I have seen that my wish to break the boys club and reward someone with the guts to stick with Hillary to the end allowed me to trust what I saw on the surface without digging in deeply for myself. Yet I am not assuming that Scott Brown by himself will be able to stop Obamacare as it currently stands. Like the Bush Administration before them, this bunch will push through whatever they see fit.

Such arrogance brings into sharp focus another mistake of the Coakley campaign post-primary. She, like many of us, assumed that in blue Massachusetts, winning the primary was as good as winning the general — what Republican would gain a foothold here? What Republican indeed. Nothing can or should be be taken for granted. Media boobs like MSNBC’s David Shuster wondering whether the people of Massachusetts “have lost their minds” and the likes of Shuster, Anderson Cooper and even Senator Schumer referring to the opposition as “teabaggers” does nothing to help Coakley’s cause.

Scott Brown is offering a populist message and in his Sunday campaign rally skillfully used Obama’s 2008 rhetoric against him. Truly I have no idea what he’s going to do if he gets into office. He could likewise be capitalizing on the mood of the country and trumpeting a populist message he has no intention of enforcing. I have seen far too much kabuki theatre from both sides to be trusting again. I can only hope that he is sincere. Nonetheless, the bigger picture has become breaking the supermajority. And sending a message to the arrogant few who are telling the many that we don’t matter.

“In the oval office, you can’t just vote present.”
— Hillary Rodham Clinton

“If you want to know what someone is going to do, take a look at what they’ve done.”
— General Wesley Clark

Huffington Post of all places offered a brilliant article by Drew Westen, Ph.D*.,entitled Leadership, Obama Style, and the Looming Losses in 2010: Pretty Speeches, Compromised Values, and the Quest for the Lowest Common Denominator. Westen’s skillful deconstruction of President Obama laments that Obama doesn’t believe in anything enough to fight for it. He points to the real reason Obama’s polls are tumbling –- the American people are waking up to his continuously voting “present” on issues that matters to them.

I am humbled by Westen’s comprehensive article. I may not agree with everything he says, but this is a true believer with a rational argument. I will not quote the bulk of it, though I’d like to. While principle stops me from including a link to H/P, I do suggest you read it in its entirety. So many of us who were ostracized and insulted last year more than suspected this would be Obama’s style of “governing.” Prof. Westen states it very well:

What’s costing the president are three things: a laissez faire style of leadership that appears weak and removed to everyday Americans, a failure to articulate and defend any coherent ideological position on virtually anything, and a widespread perception that he cares more about special interests like bank, credit card, oil and coal, and health and pharmaceutical companies than he does about the people they are shafting.

Bingo. By the way, if this piece appears on HuffPo with many echoing agreement in the comments, hell has indeed frozen over:

Somehow the president has managed to turn a base of new and progressive voters he himself energized like no one else could in 2008 into the likely stay-at-home voters of 2010, souring an entire generation of young people to the political process. It isn’t hard for them to see that the winners seem to be the same no matter who the voters select (Wall Street, big oil, big Pharma, the insurance industry). In fact, the president’s leadership style, combined with the Democratic Congress’s penchant for making its sausage in public and producing new and usually more tasteless recipes every day, has had a very high toll far from the left: smack in the center of the political spectrum.

What’s costing the president and courting danger for Democrats in 2010 isn’t a question of left or right, because the president has accomplished the remarkable feat of both demoralizing the base and completely turning off voters in the center. If this were an ideological issue, that would not be the case. He would be holding either the middle or the left, not losing both.

Consider the president’s leadership style, which has now become clear: deliver a moving speech, move on, and when push comes to shove, leave it to others to decide what to do if there’s a conflict, because if there’s a conflict, he doesn’t want to be anywhere near it.

…We have seen the same pattern of pretty speeches followed by empty exhortations on issue after issue.

But the true fighter who would have been able to act as Westen wishes is Hillary. She would lead, unafraid to deal with a tough issue or go to the mat and fight for it. Her frank demeanor, history of reaching across the aisle, indefatigable nature and willingnesss to take on President Bush (as she did with RU486, benefits of Guardsman and first responders) demonstrates her credentials in that regard. Her tireless work now as SoS only enhances that reputation. Westen continues:

The president has, on more than one occasion, gone to Wall Street or called in its titans (who have often just ignored him and failed to show up) to exhort them to be nice to the people they’re foreclosing at record rates, yet he has done virtually nothing for those people. His key program for preventing foreclosures is helping 4 percent of those “lucky” enough to get into it, not the 75 percent he promised, and many of the others are having their homes auctioned out from right under them because of some provisions in the fine print. One in four homeowners is under water and one in six is in danger of foreclosure. Why we’re giving money to banks instead of two-year loans — using the model of student loans — to homeowners to pay their mortgages (on which they don’t have to pay interest or principal for two years, while requiring their banks to renegotiate their interest rates in return for saving the banks from “toxic assets”) is something the average person doesn’t understand. And frankly, I don’t understand it, either. I thought I voted Democratic in the last election.

Same with the credit card companies. Great speech about the fine print. Then the rates tripled. …

The president has exhorted the banks, who are getting zero-interest money, to give more of it to small businesses. But they have no incentives to do that. …

The time for exhortation is over. FDR didn’t exhort robber barons to stem the redistribution of wealth from working Americans to the upper 1 percent, and neither did his fifth cousin Teddy. Both men told the most powerful men in the United States that they weren’t going to rip off the American people any more, and they backed up their words with actions. Teddy Roosevelt was clear that capital gains taxes should be high relative to income taxes because we should reward work, not “gambling in stocks.” This President just doesn’t have the stomach to make anyone do anything they don’t want to do (except women to have unwanted babies because they can’t afford an abortion or live in a red state and don’t have an employer who offers insurance), and his advisors are enabling his most troubling character flaw, his conflict-avoidance.

Westen’s next comment is as surprising as it is damning.

Like most Americans I talk to, when I see the president on television, I now change the channel the same way I did with Bush. With Bush, I couldn’t stand his speeches because I knew he meant what he said. I knew he was going to follow through with one ignorant, dangerous, or misguided policy after another. With Obama, I can’t stand them because I realize he doesn’t mean what he says — or if he does, he just doesn’t have the fire in his belly to follow through. He can’t seem to muster the passion to fight for any of what he believes in, whatever that is. He’d make a great queen — his ceremonial addresses are magnificent — but he prefers to fly Air Force One at 60,000 feet and “stay above the fray.”

As a lot of bloggers on this and other sites have noted, who would have thought the façade would peel away so quickly?

It’s the job of the president to be in the fray. It’s his job to lead us out of it, not to run from it. It’s his job to make the tough decisions and draw lines in the sand. But Obama really doesn’t seem to want to get involved in the contentious decisions. They’re so, you know, contentious. …

Do you think Americans ought to have one choice of health insurance plans the insurance companies don’t control, or don’t you? I don’t want to hear that it would sort of, kind of, maybe be your preference, all other things being equal. Do you think we ought to use health care as a Trojan Horse for right-wing abortion policies? Say something, for God’s sake.

He doesn’t need a chief of staff. He needs someone to shake him until he feels something strongly enough not just to talk about it but to act.

Odd that Westen describes Obama, a man elected because of his “vision” as clearly lacking a coherent vision or message, likewise condemning his willingness to throw women and gay voters under the bus to the bargain…

He doesn’t want to talk about social issues, even though they predictably have gotten in the way of health care reform and will do the same on one issue after another. Abortion? You don’t advance a progressive position by giving a center-right speech at Notre Dame that emphasizes cutting back on the number of abortions without mentioning that sex education and birth control might be useful means to that end, mumbling something about a conscience clause that suggests that pharmacists don’t have to fill birth control prescriptions if it offends their sensibilities, and allowing states to use health care reform to set back the rights of women and couples to decide when to start their families based on somebody else’s faith. If you believe that freedom includes the freedom to decide when you will or won’t have a child, say it, say it with moral conviction, and follow it up with action. Perhaps something as simple as this: “I won’t sign a health bill into law that forces women and couples to have a child they did not intend and are not ready to parent because of the dictates of someone else’s faith or conscience.” You know what? A message of that sort wins by 25 points nationally, and you can speak it in Southern and win with evangelical Christians in the deep south if you speak to them honestly in the language of faith. That shouldn’t be hard for a president who is a religious Christian.

Gays? Virtually all Americans are for repealing don’t ask/don’t tell (except for conservatives who haven’t yet come to terms with their own homosexuality — but don’t tell them that, or at least don’t ask). This one’s a no-brainer. Tell Congress you want a bill on your desk by January 1, and announce that you have serious questions about the constitutionality of the current policy and won’t enforce it until your Justice Department has had time to study it. Don’t keep firing gay Arabic interpreters. But that would require not just giving the pretty speech on how we’re all equal in the eyes of God and we should all be equal in the eyes of the law (a phrase he might want to try sometime). It would require actually doing something that might anger a small percentage of the population on the right, and that’s just too hard for this president to do. It’s one thing to acknowledge and respect the positions of people who hold different points of view. It’s another to capitulate to them.

Make your case to the American people, make it evocatively, and draw the line in the sand. That’s how you earn people’s respect. That’s the only thing that will bring Independents back.

This White House has no coherent message on anything. The message on health care reform changed even more frequently than the interest rates on credit cards last Spring, and turned a 70-30 winning issue into its current 30-50 status with the public. Last week on the Sunday news shows, I remember watching in disbelief as Larry Summers smugly told the 15 million Americans out of work that the recession was definitively over and that all economists agree. Then Christina Romer, another of the President’s chief economic advisors, announced on the next show that the recession is definitely not over.

That’s simply inexcusable. [snip]

To be honest, I don’t know what the president believes on anything, and I’m not alone among American voters.

[snip]

Abortion? Who knows. Gays? I suspect intellectually he believes in equal rights but deep down he thinks they’re icky. Something is sure holding him back from doing the obvious. Immigrants? He probably has an opinion, but he’s not going to waste political capital on them; he sold them out in 15 seconds on health care. Foreclosures? Nice speeches, and I’m sure it really concerns him when he hears the stories of families firsthand. But not enough to divert the cash from the lenders to the borrowers. And the problem is, the average American knows it. Job creation? Would be nice, and I presume he believes that people who want to work ought to be able to work. But when 700,000 people were losing their jobs a month in his first few months of office and over millions have lost their jobs on his watch… three letters should have come to mind: W – P – A. President Roosevelt had no legs to stand on, but he sure had spine.

Westen concludes by discussed the concept of “Obampromise” – no policy or principle is enough to fight for if it means pissing off the moneyed interests he relies on.

And here are a few more choice quotes. Frankly, I couldn’t agree more:

…[The] international community is just starting to learn that his eloquence doesn’t always have much behind it.

…[I]t would be hard to name a single thing President Obama has done domestically that any other Democrat wouldn’t have done if he or she were president following George W. Bush.

What’s they’re seeing is weakness, waffling, and wandering through the wilderness without an ideological compass. That’s a recipe for going nowhere fast — but getting there by November.

If one’s entire being has always been about pleasing people, ‘being a blank slate onto whom people can project their dreams,’ how should such a person suddenly grow a spine of steel when the number one quality they possess is the ability to craft a façade and protect it at all costs.

Secretary Clinton warned everyone about voting for a man who voted “present” 130 times in the State Senate, and who waffled on his positions constantly on the campaign trail. His stalling for months on the Afghanistan decision, then pretty much doing what we figured he was going to do anyway, is just one case in point. President Obama had never before evidenced the ability to lead or make tough decisions. In 2008, we were told that didn’t matter. The very qualities he lacks are precisely the ones he is lost without. Only no one is willing to give him memo. Certainly not his staff.

Years from now, books will be written on the mass delusion that captured the nation to put such an inexperienced and insincere man in office.

*Westen is a Professor of Psychology and Psychiatry at Emory University, founder of Westen Strategies, and author of The Political Brain: The Role of Emotion in Deciding the Fate of the Nation.

During the presidential campaign, Peggy Noonan rhapsodized about an Obama presidency, trashing Hillary Clinton to the bargain. Recent months have seen Ms. Noonan pen several articles deconstructing her prior romantic notions, reaching the same conclusions as the very people she derided for not jumping on Obama’s bandwagon. In her WSJ piece, He Can’t Take Another Bow, Noonan complains that the Obama White House is “coming to seem amateurish”:

This week, two points in an emerging pointillist picture of a White House leaking support—not the support of voters, though polls there show steady decline, but in two core constituencies, Washington’s Democratic-journalistic establishment, and what might still be called the foreign-policy establishment.

From journalist Elizabeth Drew, a veteran and often sympathetic chronicler of Democratic figures, a fiery denunciation of—and warning for—the White House. In a piece in Politico on the firing of White House counsel Greg Craig, Ms. Drew reports that while the president was in Asia last week, “a critical mass of influential people who once held big hopes for his presidency began to wonder whether they had misjudged the man.” They once held “an unromantically high opinion of Obama,” and were key to his rise, but now they are concluding that the president isn’t “the person of integrity and even classiness they had thought.”

Misjudged? What other politician have you ever heard of who got a lot of important people to stake their reputations on his “integrity” without having offered any more than “words, just words” attesting to the same?

Noonan and Drew should not be surprised that another big Obama supporter now sits under his bus. Greg Craig was a highly respected operative and his early endorsement of Obama and simultaneous belittling of Hillary’s foreign policy street cred carried a lot of weight with beltway insiders. What a difference a year makes…

[Ms. Drew] scored “the Chicago crowd,” which she characterized as “a distressingly insular and small-minded West Wing team.” The White House, Ms. Drew says, needs adult supervision—”an older, wiser head, someone with a bit more detachment.”

And speaking of an older and wiser choice, this is the most telling part of Ms. Noonan’s article:

As I read Ms. Drew’s piece, I was reminded of something I began noticing a few months ago in bipartisan crowds. I would ask Democrats how they thought the president was doing. In the past they would extol, with varying degrees of enthusiasm, his virtues. Increasingly, they would preface their answer with, “Well, I was for Hillary.”

Thanks, Peggy, so was I. Noonan then worries that “No one loves Barack Obama; they’re not dazzled and head over heels. That’s gone away.” Is she kidding? The sycophantic press and his virulent supporters have not shown enough love? If she is wondering why the love has gone, I would like to point out one can only be dazzled by a movie trailer once. Having then paid for your ticket and bought your popcorn, you expect the film itself will deliver the goods. If the two minute trailer is as good as it gets, patrons will turn off very quickly.

“He himself seems a fairly chilly customer; perhaps in turn he inspires chilly support.”

Now Noonan’s figuring out he’s a chilly customer? There’s no there there. There never was. Please tell me which constituency or issue he has ever gone to the mat for? Noonan continues…

…In the Daily Beast. Mr. Gelb, president emeritus of the Council on Foreign Relations and fully plugged into the Democratic foreign-policy establishment, wrote this week that the president’s Asia trip suggested “a disturbing amateurishness in managing America’s power.” The president’s Afghanistan review has been “inexcusably clumsy.”

He added that rather than bowing to emperors—Mr. Obama “seems to do this stuff spontaneously and inexplicably”—he should begin to bow to “the voices of experience” in Washington.

When longtime political observers start calling for wise men, a president is in trouble.

It appears Obama’s cheerleaders, The New York Times and Newsweek, concur with this thinking. During the primary, wine rack liberals I knew who supported Obama said “Congress does everything anyway. He’ll surround himself with really great people.” I wonder what they’re saying now about the “good judgment” they touted. One could say he exercised good judgment in appointing Hillary as SoS, yet he has been accused of hamstringing her at every turn. Many suspect the appointment was to ensure she was no longer a threat to him politically.

Aside from Noonan’s condemnation of the current health care bill “as a poor piece of legislation that Obama ought to scrap so that he may live to fight another day,” most shocking is her acknowledgment of what Democratic holdouts feared from the beginning:

There is the growing perception of incompetence, of the inability to run the machine of government. This, with Americans, is worse than Obama’s rebranding as a leader who governs from the left. Americans demands baseline competence. If he comes to be seen as Jimmy Carter was, that the job was bigger than the man, that will be the end.

She then brings us back to the issue of Obama once again bowing to a foreign head of state.

In a presidency, a picture or photograph becomes iconic only when it seems to express something people already think. When Gerald Ford was spoofed for being physically clumsy, it took off. The picture of Ford losing his footing and tumbling as he came down the steps of Air Force One became a symbol. There was a reason, and it wasn’t that he was physically clumsy. He was not only coordinated but graceful. He’d been a football star at the University of Michigan and was offered contracts by the Detroit Lions and Green Bay Packers.

But the picture took off because it expressed the growing public view that Ford’s policies were bumbling and stumbling. The picture was iconic of a growing political perception.

Noonan is right about perception. Last week, I spoke with a young urban professional male, who I would have thought was Obama’s demographic. There were some things he did not know about Obama’s policies but he did know about the “bows” and he didn’t like them. Ms. Noonan concludes:

It is true that Mr. Obama often seems not to have a firm grasp of—or respect for—protocol, of what has been done before and why, and of what divergence from the traditional might imply. And it is true that his political timing was unfortunate. When a great nation is feeling confident and strong, a surprising presidential bow might seem gracious. When it is feeling anxious, a bow will seem obsequious.

The Obama bowing pictures…express a growing political perception … that there is something amateurish about this presidency, something too ad hoc and highly personalized about it, something . . . incompetent, at least in its first year.

You can get tagged, typed and pegged your first year.

Punditry is allergic to a long view and demands to stay vital by offering grand pronouncements daily so Noonan passing judgment on a snapshot in time is hardly evidence of anything. Yet we have seen one after another of these types of indicators, well stated in Steven Stark’s brutal RCP article last week, Has Obama Peaked? Yes, He Has. Stark states that the high point for Obama was the night of his election, but:

“[Y]ou can only be elected the first African-American once.”

Now that we, as a nation, have awakened from our post-election, post-racial dream state, we’ve begun to notice that our president may not be much interested in being a chief “executive,” given that he’s never run anything before or expressed the slightest inclination to do so. He has big ideas, to be sure, but that’s only a small part of the job. The hard, nitty-gritty labor of figuring out how government can actually work better – the operative word is “governing” – seems to hold no appeal for him.

Put another way, where are our flu shots? It’s worth recalling that, in what seems a lifetime ago, it was Clinton – not Obama – who promised to be ready on Day One.

More in the pundit class are wistfully mentioning Hillary, the work horse, not the show horse. It’s a shame they spent so much time kicking her around instead of lauding her when it would have mattered. I wonder if the glowing write up of “her brilliant career” in December’s Vogue Magazine sent the WH frat boys Gibbs-y and Favreau spinning? I’m sure they are looking for new ways to trash her and her ever increasing popularity.

Mr. Stark seems to think Obama needs to “come down from the mountaintop” and stop talking at us, i.e., campaigning, and start listening to the American people, yet he wonders if the President is capable of such a transformation. He rightly points out we are waiting for Obama “to lead us in real time.” When Governor Rendell of PA endorsed Hillary, he stated that the real work of governing is much more suited to Hillary’s knowledge, work ethic and indefatigable nature. Obama’s endless need for campaigning and photo-ops are not what is required now. Understanding proper protocol wouldn’t hurt either.

Stark points out that President Obama’s outsourcing of important legislation to Congress without offering adequate leadership, putting the foxes in charge of the henhouse by appointing Tim Geithner Treasury Secretary, and basically continuing the policies of President Bush, along with his many other rookie mistakes are making many raise the “c” word in Washington.

Competence. What a concept.

Ironic that yesterday, NY Times columnist Charles Blow, certainly an Obama cheerleader from way back, penned a column entitled Obama’s to Fix, in which he cautions the President to stop blaming George Bush for the “mess” he inherited. Clearly, our President, far from undoing such a mess, is daily making a bigger one of his own. Mr. Blow begins with this ominous phrase:

What a difference a year makes.

In October 2008, the candidate Barack Obama delivered a major economic speech in Toledo, Ohio. In it he said: “Right now, we face an immediate economic emergency, and that requires urgent action. We can’t wait to help workers and families and communities who are struggling right now — who don’t know if their job or their retirement will be there tomorrow; who don’t know if next week’s paycheck will cover this month’s bills. … We need to pass an economic rescue plan for the middle-class, and we need to do it not five years from now, not next year, we need to do it right now.

“So today I’m proposing a number of steps that we should take immediately to stabilize our financial system, provide relief to families and communities and help struggling homeowners. It’s a plan that begins with one word that’s on everybody’s mind, and it’s easy to spell: J-O-B-S.”

“Right now,” “immediate economic emergency,” “requires urgent action,” “can’t wait.” Wow! He gave the impression that job creation would be his top priority, that action would be swift and effective, that his solutions would not only stanch the hemorrhaging, but reverse the trend.

He has not made jobs his top priority. This health care debacle, bailing out Wall Street, getting into the car business and generally putting money into the pockets of everyone except those who need it have all taken priority over putting Americans back to work. And, no, putting an extra $13 a week into people’s paychecks is not going to do the trick when as Mr. Blow points out the new official labor statistics have us at 10.2 unemployment, which is an increase of “more than 50 percent from the time Obama gave that speech.”

“(By the way, the underemployment rate, which includes part-time workers who want to work full time and those who’ve given up searching, is a staggering 17.5 percent.)”

I am still at a loss to understand why there was such a great urgency to pass health care legislation that is not supposed to go into effect for more than three years. Someone on another blog made the observation that Obama and Pelosi et al are using the economic crisis and joblessness as a weapon to pass their agenda. As people are panicked at losing their jobs and their healthcare, they are more likely to look to government to bail them out – and more amenable. As Rahm Emanuel said, “never waste a good crisis.” What better time to ram this through. Mr. Blow continues:

Job creation has dropped from top priority to one of many, and President Obama has been remanded to pandering for patience and offering excuses. On the one hand, he argues the tortured rationale that there is good news in the awful numbers: Things are still getting worse but at a slower pace. On the other, he incessantly reminds us that he inherited the crisis. The implication: Don’t blame me, blame Bush.

But this president can’t keep deflecting to the last one. Pain is presently felt. The crisis that took form on Bush’s watch is being experienced on Obama’s. Fair or not, finger-pointing is not effective policy.

This is now Obama’s crisis, and it carries political consequences. During Tuesday’s gubernatorial races in New Jersey and Virginia, nearly 9 in 10 voters said that they were worried about the direction of the nation’s economy in the next year. And the majority of those who held that view voted for the Republican candidates. This could portend a flashback to 1994.

It isn’t President Obama’s fault that he inherited this mess, but it is his to fix, and he must make haste. To paraphrase his Toledo prelection: you need to do it not five years from now, not next year, you need to do it right now. J-O-B-S.

There were many options to put people back to work this year if that was really the priority. Clearly it was not. This President spent almost a billion dollars to get his job. I don’t want to hear complaints now. Obviously, he inherited a mess, which he has made worse with reckless spending. No one expects him to fix everything in the space of a year, but I thought his “good judgment” meant he knew how to prioritize. We need leadership and part of that involves sacrificing one’s ego to help those who need it most. That is far more important than pushing legislation just for the purpose of putting a check mark next to one’s name. You don’t not spend billions, even trillions, you don’t have at a time like this. Since this bunch so miscalculated on their $787 billion stimulus package, I am not inclined to trust them now by handing over 1/6 of the economy to their stewardship.

It is interesting that Mr. Blow, who played the race card on Mr. Obama’s behalf last year, is now joining the ever increasing number of his pundit supporters who are having problems with his endless campaigning, blaming and wrongheaded focus.

As to the health care debate, I called my Congressman’s office Friday morning to complain about the bill and his assistant debated the merits with me. At least she took the time to do so. It was a shame she was wrong on the facts. I told her to go back and read the thing. Now we have a 2,000 page beast that the Senate must contend with and we are told it will never pass in its current form. So why the rush? Why wouldn’t this Administration be in the same kind of rush to help get people back to work?

There are 237 millionaires in Congress. Perhaps that explains why they have difficulty relating to the urgent need to put millions of Americans back of work, instead manufacturing an urgent need to pass labrynthian legislation for the mere purpose of saying “Mission Accomplished.”

Hmm. Where have we heard that phrase before?

Nope, I am not talking about Anita Dunn this time. Ron Bloom is the latest Obama Czar (Manufacturing) to quote Mao as an authority. And just wait to see which quote he uses from Mao. Oh, and he disses that whole free market thing, too. See for yourself:

You may recall that Ron Bloom was a negotiator with the United Steel Workers, and apparently known for being a bit of a potty mouth while he was at it. Oh, and naturally, like so many of the people with whom Obama surrounds himself, has ties to the SEIU, which was co-created by Wade Rathke of ACORN fame. Yep, he surely does.

Remarkable, isn’t it? When Obama keeps trying to claim he doesn’t know all that much about ACORN and their doings? Yeah, right. But I digress.

You know, it makes sense, though, really. As Obama takes over private enterprise as well as banks with our dollars (more on this below), and attempts to destroy any media that isn’t favorable to it, I think we are well on our way to an, um, less than Democratic union. And we have Czars like Anita Dunn and Ron Bloom to lead the way, not to mention Obama himself, a card-carrying member of the Socialist New Party (and don’t forget Van Jones, who had to resign). Ain’t that something?

Remember when our friends and families scoffed at us and ridiculed us for making these claims about Obama and his associates? Uh huh. Dontcha just HATE it when you know you’re right and people treat you like your nuts? I wonder how they feel now? Oh, right – they’re probably all singing their “Mmmm mmmm mmm” song while our once democratic nation goes by the boards…

By the way, the Bailout Watchdog had this to say about the TARP program – OUR taxpaying dollars at work:

But even as the administration aimed to refocus the massive Troubled Asset Relief Program on small businesses and homeowners, Barofsky said in his report that the effort to save the nation’s financial sector came at great cost to taxpayers, to the integrity of the financial system and to the public’s perception of the federal government.

“Despite the aspects of TARP that could reasonably be viewed as a substantial success,” he wrote, “Treasury’s actions in this regard have contributed to damage the credibility of the program and of the government itself, and the anger, cynicism and distrust created must be chalked up as one of the substantial, albeit unnecessary, costs of TARP.”

Barofsky said public suspicion was fed by Treasury’s decision not to require banks to report how they used their rescue money and its “less-than-accurate” statements describing the financial condition of nine large banks that benefited from large infusions of aid. The TARP program began under the administration of President George W. Bush and has expanded under Obama.

And now the Obama Administration has taken on the U.S. Chamber of Commerce. I’m not kidding. The All Stars had an excellent discussion on this last night, and included the overarching issues of both the Chamber of Commerce AND the attacks by Anita Dunn on Fox News. It provides a good overview of the direction the Obama Administration is heading:

You know, if things continue down this path with the people Obama has surrounded himself, I think we can expect to have this painting in the White House:

Replaced with this one:

Hey, it could happen! And the chances of that seem to be increasing with every day…

Many Americans were duped by financial practices and products emanating from Wall Street. Where was Washington? I would assess Washington’s involvement and responses in the following fashion:

1. At worst, Washington was complicit given a wide array of failed public policy programs, especially in housing. These public policies were largely ‘greased’ by lobbying dollars and campaign contributions.

2. To a large extent, Washington was negligent in terms of oversight, especially on the financial regulatory front.

3. At best, Washington was naive given a general lack of understanding of markets and finance.

The American public is now responding in appropriate fashion. How so? In increasing numbers, they are choosing not to play the Wall Street game. What game is that? Active trading and investing. While the numbers of pure day traders may have increased, the American population at large is focused elsewhere. Where is that focus? On the economy at large and on their individual pocket books.

Washington’s focus on Wall Street and its selling of the market rebound as reflective of a return towards prosperity is a product that will not fly . . . try as they might. Why?

It’s the economy, stupid! Reports this morning indicate that wages will likely show the greatest decline since 1991. Even in the face of declining wages, consumers’ purchasing power is being further eroded by the continuing decline in the value of the dollar. That decline is inflationary which hurts consumers but it continues to present a very cheap funding vehicle for those who want to use the greenback to employ leverage in the markets. Who has the advantage in that process? The large banks. Do they spread that wealth in terms of increased credit and higher savings rates? Now why would they do that?

The American saver and consumer shouldered the cost of the bank bailouts in 2008. They are now shouldering the cost of the wealth transfer to the banks in 2009. While Washington would like to sell this dynamic differently, the American public gets it.

Washington will continue to sell this dynamic at its peril.

LD

The American Idol president is running his own reality show and we are picking up the tab. Mr. Obama seems to think that he and his wife are the most fascinating part of the American narrative. Last Friday, the IOC clarified the butter for the Obamas. In the past months, we have published many articles reporting on Kool Aid drinkers who have lifted their heads from the pink trough, dazed and confused, wondering where the “Change” is. The list is long: Peggy Noonan, Frank Rich, Susan Estrich, Andrew Sullivan, Camille Paglia, Robert Reich. Feel free to add your own. Today I add three more to that growing list.

First WaPo’s Richard Cohen complains Obama Doesn’t Seem Ready to Lead:

Barack Obama’s trip to Copenhagen to pitch Chicago for the Olympics would have been a dumb move whatever the outcome. But as it turned out (an airy dismissal would not be an unfair description), it poses some questions about his presidency that are way more important than the proper venue for synchronized swimming. The first, and to my mind most important, is whether Obama knows who he is.

This business of self-knowledge is no minor issue. It bears greatly on the single most crucial issue facing this young and untested president: Afghanistan. Already, we have his choice for Afghanistan commander, Gen. Stanley A. McChrystal, taking the measure of his commander in chief and publicly telling him what to do. This MacArthuresque star turn called for a Trumanesque response, but Obama offered nothing of the kind. Instead, he used McChrystal as a prop, adding a bit of four-star gravitas to that silly trip to Copenhagen by having the general meet with him there.

Mr. Cohen is blaming Gen. McChrystal for someone else leaking his report to the President. The more important point is, as Gen. Wes Clark or anyone else who’s actually been in this position will tell you (and as he did say in an interview this weekend), you’d better listen to your commanders on the ground. Cohen is right that the 25 minute meeting with McChrystal on Friday was merely a photo op. He’s still deliberating. How many more months of ‘deliberating” are required while our soldiers are dying in Afghanistan?

This is the president we now have: He inspires lots of affection but not a lot of awe. It is the latter, though, that matters most in international affairs, where the greatest and most gut-wrenching tests await Obama. If he remains consistent to his own rhetoric of just last August, he will send more troops to Afghanistan and more of them will die. “This is not a war of choice,” he said. “This is a war of necessity. Those who attacked America on 9/11 are plotting to do so again. If left unchecked, the Taliban insurgency will mean an even larger safe haven from which al-Qaeda would plot to kill more Americans.”

President Obama has the disastrous example of Iraq where Bush’s Generals told him from the outset that an overwhelming force was needed. They did not get it. You saw the result. Obama himself admitted that the belated 2007 surge was wildly successful. How much more evidence does he need? Define the mission, and either send the forces in to get the job done or pull all our men and women out of there. Choose. Lead. That’s the job description. Date night I don’t care about. Dog walking I don’t care about.

Cohen concludes:

But the ultimate in realism is for the president to gauge himself and who he is: Does he have the stomach and commitment for what is likely to be an unpopular war? Will he send additional troops, but hedge by not sending enough — so that the dying will be in vain? What does he believe, and will he ask Americans to die for it? Only he knows the answers to these questions. But based on his zigzagging so far and the suggestion from the Copenhagen trip that the somber seriousness of the presidency has yet to sink in, we have reason to wonder.

Has the seriousness of the presidency sunk in? Now there’s a question.

You may be surprised to note that NY Times columnist Bob Herbert is wondering the same thing. A huge cheerleader for Obama, Herbert cried racism and even saw phallic symbols in the leaning tower of Pisa in a misguided attempt to defend his chosen hero last year. Now he wonders Does Obama Get It? Well, Mr. Herbert, don’t feel bad. This question has been keeping me up nights, too. He states:

The big question on the domestic front right now is whether President Obama understands the gravity of the employment crisis facing the country. Does he get it? The signals coming out of the White House have not been encouraging.

Clearly Mr. Herbert, if you have to ask, then Obama does not understand the gravity of the situation. Where is his good judgment? How can one not understand 9.8 unemployment – in reality it is a much higher number when one includes Americans out of work for so long they have fallen off the rolls.

The Beltway crowd and the Einsteins of high finance who never saw this economic collapse coming are now telling us with their usual breezy arrogance that the Great Recession is probably over. Their focus, of course, is on data, abstractions like the gross domestic product, not the continued suffering of living, breathing human beings struggling with the nightmare of joblessness.

Even Mr. Obama, in an interview with The Times, gave short shrift to the idea of an additional economic stimulus package, telling John Harwood a few weeks ago that the economy had likely turned a corner. “As you know,” the president said, “jobs tend to be a lagging indicator; they come last.”

The view of most American families is somewhat less blasé. …

Nearly one in four American families has suffered a job loss over the past year, according to a survey released by the Economic Policy Institute. Nearly 1 in 10 Americans is officially unemployed, and the real-world jobless rate is worse.

It is a nightmare. No one is blasé when they are worried how they are going to feed their families. What about the porkulus package? Is this administration waiting to release most of the funds in 2010 to help them at the polls? If that is the case, shame on them.

Why should Obama understand when he isn’t spending his own money? Half million dollar pizza parties, an obscene amount spent on the inauguration and several million on this reckless Copenhagen junket show a frightening disconnect between Obama’s priorities and his fiduciary responsibility to the American people. Herbert continues:

The Obama administration seems hamstrung by the unemployment crisis. No big ideas have emerged. No dramatically creative initiatives. While devoting enormous amounts of energy to health care, and trying now to decide what to do about Afghanistan, the president has not even conveyed the sense of urgency that the crisis in employment warrants.

If that does not change, these staggering levels of joblessness have the potential to cripple not just the well-being of millions of American families, but any real prospects for sustained economic recovery and the political prospects of the president as well. An unemployed electorate is an unhappy electorate.

Mr. Herbert, they are already crippled, but instead of addressing the urgency of the economy and Afghanistan head on, we get what George Will calls The Obamas’ Narcissism on Display. Speaking of Mr. and Mrs. Obama’s speeches before the IOC last week,

…Their separate speeches to the International Olympic Committee were so dreadful, and in such a characteristic way, that they might be symptomatic of something that has serious implications for American governance.

Both Obamas gave heartfelt speeches about … themselves. Although the working of the committee’s mind is murky, it could reasonably have rejected Chicago’s bid for the 2016 games on aesthetic grounds — unless narcissism has suddenly become an Olympic sport.

George Will suggested that since the Obamas used so many “I” and “me” references in their speeches, Obama’s genius speechwriters (Favreau et al) should have substituted the words I and me with “sauerkraut” to underscore the ‘antic nature of their excessive appearances.’ Someone needs to tell the Obamas that what is compelling about America is all Americans – all colors of the rainbow, all states, all social strata – together. All of us. Not just the two of them. And all of us are hurting out here. Our soldiers are hurting, too.

Will also points to Obama’s excessive use of cliché:

“At this defining moment,” a moment “when the fate of each nation is inextricably linked to the fate of all nations” in “this ever-shrinking world,” he aspires to “forge new partnerships with the nations and the peoples of the world.”
…
Does our Cicero even glance at his speeches before reading them in public?

All this is indicative of a man not connected to his words or not caring enough about either his audience or the subject at hand to come up with anything better than patented brand phrases that some focus group told him “resonate” with the public.

Our soldiers and our economy need a coherent plan. Now. He has had ample time to figure this out, as has Congress. Too much energy is focused on infighting for a health care plan that is such an incoherent monstrosity that they should trash it and start over. This is not even supposed to take effect until 2013, after the next election. Hmmm I wonder why. All things considered, that leaves health care the least urgent issue of the three.

On Afghanistan and the economy, pressing matters where lives, jobs and homes are on the line – where is the president? Will concludes:

Unhappy will be a president whose defining adjective is “vain.”

In keeping with the vanity of this man’s administration, we also see that nothing President Obama does is his own fault. This is the job he wanted. And a majority of the electorate voted him in to do it. What is he waiting for? There is no one else to blame if he hems and haws so long that Afghanistan is lost. There is no one else to blame if he insists on focusing on parts of an agenda that are not helping put the American people back to work. This is his presidency now. So I’ll ask again.

Mr. President, why did you want this job?

Since Neil Barofsky, Special Inspector General for the (TARP) Troubled Asset Relief Program and Elizabeth Warren, Chair of the Congressional Oversight Panel of the (TARP) Troubled Asset Relief Program were guest witnesses, it seemed a good time to get some answers to the $700 billion dollar questions of how well is TARP working and how stable has our economy become.

And, well, you might want to hold off on the champagne.

From SIG Neil Barofsky:

“I think we may be in a far more dangerous place today than we were a year ago,” he said.

As Ms. Warren points out in her testimony:

EESA [Emergency Economic Stabilization Act] listed five specific objectives for TARP: to restore financial stability, protect home values and family savings, promote jobs and economic growth, maximize returns to taxpayers, and provide public accountability.

——

Since EESA was enacted one year ago, the apprehension that pervaded this country has turned into something else: frustration and anger. Taxpayers have committed over $531 billion through TARP, and although there is no doubt that the financial system has begun to stabilize, families are still feeling the pain of rising unemployment, rampant foreclosures, higher bank fees, and limited access to credit.

Today’s fragile stability has come at an enormous cost to the American people. Taxpayers have a right to expect full clarity, full transparency, and full accountability in Treasury’s use of their money. They also have a right to know what has fundamentally changed to prevent this crisis from ever happening again….

From Mr. Barofsky testimony:
On Maximizing Returns to Taxpayers

The progress on meeting the goal of “maximiz[ing] overall returns to the taxpayer” is unclear. While several TARP recipients have repaid funds for what has widely been reported as a 17% profit, it is extremely unlikely that the taxpayer will see a full return on its TARP investment. For example, certain TARP programs, such as the mortgage modification program which is scheduled to use $50 billion of TARP funds, will yield no direct return, and for others, including the extraordinary assistance programs to AIG and the auto companies, full recovery is far from certain.

Similarly, Treasury’s original stated goal of increasing lending has not yet occurred, although, as SIGTARP’s recently issued audit on TARP recipients’ use of funds indicates, it is likely that lending from TARP recipients would have decreased far more in the absence of TARP funding.

On Protecting Home Values and Family Savings;
On Promoting Jobs and Economic Growth

…the goals of “preserving homeownership,” “promot[ing] jobs and economic growth” have not yet been met, and the ultimate success of meeting these policy goals will depend on programs that are just now reaching the implementation stage, such as the TARP’s mortgage modification program and the public-private investment funds. In the meantime, the risk of foreclosure continues to affect too many Americans; unemployment continues its rise to levels that Treasury has characterized as “unacceptable”; the so-called “toxic” assets that helped cause this crisis for the most part remain right where they were last fall – on the banks’ balance sheets; and it is becoming more and more clear that the commercial real estate market might be the next proverbial shoe to drop, threatening to increase the pressure on banks and small business alike yet again.

On Providing Public Accountability

“Treasury’s default position should always be to require more disclosure rather than less and to provide the investors in TARP — the American taxpayers — as much information about what is being done with their money as possible. …TARP largely remains a program in which taxpayers are not being told what most of the TARP recipients are doing with their money and will not be told the full details of how their money is being invested.”

More from Ms. Warren:
On Restoring Financial Stability

“The toxic assets remain on the books of the banks. The commercial real estate mortgages are a coming crisis. Small banks are continuing to fail. We were talking a year ago about too big to fail. We are now facing an industry that’s more concentrated than it was a year ago and too big to fail is up on us now in a much larger sense.”

“Until we get down to dirt, to something that’s solid, that we can put our feet on, our financial institutions are standing in a secure place, we can’t rebuild and know that we are safely past this crisis”

“The question about how we’re going to get these toxic assets out of here at a time when the real estate mortgage market is still in trouble and the commercial real estate mortgage market may be getting into more and more trouble – I’m not hearing the plan.”

Then again, the way our government has been working of late, maybe it is a good thing if they don’t have a plan for this.

And I have another number for you: 400. Yes, Saturday marks an inauspicious milestone. 400 is the number of Service Members who have been discharged under DADT during Obama’s Administration. 400 men and women whose lives were changed simply because of whom they love. 400 men and women who were willing to serve their country, to put themselves in harm’s way for us, for the U.S.A, and they have now been fired.

And here’s another number for you: $56,400. That is the average, approximate cost to train a service member for their first duty station by one estimate. $56,400 each for enlisted personnel, not officers, including when they first visit a Recruiter (these are 2006 figures, so it might be more now).

The average cost to train an officer? That number is: 120,772. If that officer happens to be a fighter pilot, you can go ahead and round that number up to: $1,450,000. Remember, these are just averages. The cost to train Lt. Col. Victor Fehrenbach was $25,000,000. Fehrenbach, a decorated war hero, was fired from the Air Force under DADT.

And one last number for you: 9/11. Many people in this country were moved to do some kind of service to and for their country as a result of the attacks on 9/11, GLBT people included. Obama has been pushing this huge call to Service, including on 9/11/09. Secretary Clinton gave a speech on the Commemoration of the First Annual National Day of Service And Remembrance on 9/11. Presumably, the ability to serve one’s country should be open to ALL of its citizens.

Yet today, that ability is not. As of today, 400 Americans have been told their willingness to serve their country, to put themselves in harm’s way on her behalf, is neither desired nor accepted. 400 Americans have been told that the National Day of Service does not apply to them. 400.

How about those numbers?

What a difference a month makes! When my last controversial column posted on Salon in the second week of August, most Democrats seemed frozen in suspended animation, not daring to criticize the Obama administration’s bungling of healthcare reform lest it give aid and comfort to the GOP. Well, that ice dam sure broke with a roar. Dissident Democrats found their voices, and by late August even the liberal lemmings of the mainstream media, from CBS to CNN, had drastically altered their tone of reportage, from priggish disdain of the town hall insurgency to frank admission of serious problems in the healthcare bills as well as of Obama’s declining national support.

…As an Obama supporter and contributor, I am outraged at the slowness with which the standing army of Democratic consultants and commentators publicly expressed discontent with the administration’s strategic missteps this year. … from week one after the inauguration, when Obama went flat as a rug in letting Congress pass that obscenely bloated stimulus package. Had more Democrats protested, the administration would have felt less arrogantly emboldened to jam through a cap-and-trade bill whose costs have made it virtually impossible for an alarmed public to accept the gargantuan expenses of national healthcare reform. (Who is naive enough to believe that Obama’s plan would be deficit-neutral? Or that major cuts could be achieved without drastic rationing?)

Due respect to Ms. Paglia, she might ask herself why she bought into any of this before the election. We did not. Their disastrous spending plans: using the cover of the economic crisis to push through pet projects under the phony label of stimulus, offering bailouts of Wall St., not Main Street. People are without jobs, losing their homes and they are playing games with our money? Most readers at NQ sensed where Obama’s allegiance would be 18 months ago. I find precious little satisfaction in yet another prominent Obama supporter expressing disgust. The stakes are too high and we are now stuck.

I am grateful, however, that a respected voice is calling the arrogant Dem leadership out on its despicable characterizations of American citizens, who are rightfully outraged at this mess:

By foolishly trying to reduce all objections to healthcare reform to the malevolence of obstructionist Republicans, Democrats have managed to destroy the national coalition that elected Obama and that is unlikely to be repaired. If Obama fails to win reelection, let the blame be first laid at the door of Speaker of the House Nancy Pelosi, who at a pivotal point threw gasoline on the flames by comparing angry American citizens to Nazis.

Pelosi needs to lose her seat for that one. Disgraceful.

Paglia seems to think Obama might turn it around with a great speech, but wonders if too much damage has already been done. She has written the Dems off is 2012, unless Republicans nominate someone dead from the neck up – entirely possible. Paglia says she “has been calling for heads to roll at the White House from the get-go”:

…Thankfully, they do seem to be falling faster — as witness the middle-of-the-night bum’s rush given to “green jobs” czar Van Jones last week — but there’s a long way to go. An example of the provincial amateurism of current White House operations was the way the president’s innocuous back-to-school pep talk got sandbagged by imbecilic support materials soliciting students to write fantasy letters to “help” the president (a coercive directive quickly withdrawn under pressure). Even worse, the entire project was stupidly scheduled to conflict with the busy opening days of class this week, when harried teachers already have their hands full. Comically, some major school districts, including New York City, were not even open yet. And this is the gang who wants to revamp national healthcare?

Why did it take so long for Democrats to realize that this year’s tea party and town hall uprisings were a genuine barometer of widespread public discontent and not simply a staged scenario by kooks and conspirators?

Ms. Paglia still betrays a trusting naiveté here, thinking that Democrats were too insulated to know the protests were genuine. Not so. The Obama Administration simply continued the same techniques of the Obama campaign – demonize any opponents in order to silence them. She acknowledges that network and cable TV are not the central forums for debate any longer. They just play out more junk politics, backing their respective brands. Ms. Paglia notes…

…the truly transformative political energy is coming from talk radio and the Web — both of which Democrat-sponsored proposals have threatened to stifle, in defiance of freedom of speech guarantees in the Bill of Rights. …[O]n talk radio, which I have resumed monitoring around the clock because of the healthcare fiasco … I heard the passionate voices of callers coming directly from the town hall meetings. Hence I was alerted to the depth and intensity of national sentiment long before others who were simply watching staged, manipulated TV shows.

While she concludes her column giving the Republicans some well deserved slaps as well (and I encourage you to read the rest of her piece for yourself), most of it is devoted to pointing out Democratic Party arrogance. This is what the Clinton wing of the party, cruelly cast aside along with Hillary after the primaries, have noted as well. Ms. Paglia asks questions many here would find familiar:

Why has the Democratic Party become so arrogantly detached from ordinary Americans? Though they claim to speak for the poor and dispossessed, Democrats have increasingly become the party of an upper-middle-class professional elite, top-heavy with journalists, academics and lawyers (one reason for the hypocritical absence of tort reform in the healthcare bills). Weirdly, given their worship of highly individualistic, secularized self-actualization, such professionals are as a whole amazingly credulous these days about big-government solutions to every social problem. They see no danger in expanding government authority and intrusive, wasteful bureaucracy. This is, I submit, a stunning turn away from the anti-authority and anti-establishment principles of authentic 1960s leftism.

But affluent middle-class Democrats now seem to be complacently servile toward authority and automatically believe everything party leaders tell them. …Independent thought and logical analysis of argument are no longer taught. Elite education in the U.S. has become a frenetic assembly line of competitive college application to schools where ideological brainwashing is so pandemic that it’s invisible.

If any of Obama’s supporters had been capable of critical thought last year, they would have seen through his ridiculous promises and contradictory policy statements and had the sense to turn away. As this article is a prelude to President Obama’s big speech on healthcare this evening, Ms. Paglia’s next comments reveal the shortcomings of a compliant media and congress…

Throughout this fractious summer, I was dismayed not just at the self-defeating silence of Democrats at the gaping holes or evasions in the healthcare bills but also at the fogginess or insipidity of articles and Op-Eds about the controversy emanating from liberal mainstream media and Web sources. By a proportion of something like 10-to-1, negative articles by conservatives were vastly more detailed, specific and practical about the proposals than were supportive articles by Democrats, which often made gestures rather than arguments and brimmed with emotion and sneers. There was a glaring inability in most Democratic commentary to think ahead and forecast what would or could be the actual snarled consequences — in terms of delays, denial of services, errors, miscommunications and gross invasions of privacy — of a massive single-payer overhaul of the healthcare system in a nation as large and populous as ours. It was as if Democrats live in a utopian dream world, divorced from the daily demands and realities of organization and management.

Yes, the party in power does seem oddly divorced from reality as if wishing at the foot of President Obama’s HOPE poster would make their rosy predictions about the effects of their reckless leglislation come true. This past week, other columnists have pointed out that dissent and disagreement are a value to any President. Blank stares and idol worship will not make this Administration better. For the sake of our country, it would be refreshing change indeed if someone in the White House showed actual concern for the needs of Americans and went back to doing the people’s business. I think that may only happen if left, right and center keep speaking out and keep the pressure on. Only fear of the voters might have any effect whatsoever. And I’m not even sure of that.

Ms. Paglia, for one, worries it’s too late for Obama to turn it around…

As many recent townhall meetings have shown, the American people are dealing with a few issues of trust in regards to their government. So I thought it might be fun to take a look at two very different videos on Money and what it can do.

________

__________

In this video from a June forum on the banking industry, William Black discusses our current financial meltdown in which a single bank, IndyMac, lost more money than was lost during the entire Savings and Loan crisis. He examines the industry structures and political failures behind this economic disaster, including a pretty scathing analysis of the key players and current FOG’s, Friends of Goldman, in charge of our economic recovery. And he explains the massive fraud as well as the vast transfer of wealth from the poor and middle class that took place and continues as the federal government bails out the reckless, and quite possibly the criminal.

Warning, this video is 98 minutes long, but well worth the time.

William Black was litigation director of the Federal Home Loan Bank Board, deputy director of the FSLIC, SVP and General Counsel of the Federal Home Loan Bank of San Francisco, and Senior Deputy Chief Counsel, Office of Thrift Supervision. He was deputy director of the National Commission on Financial Institution Reform, Recovery and Enforcement.

He currently teaches White-Collar Crime, Public Finance, Antitrust, Law & Economics (all joint, multidisciplinary classes for economics and law students), and Latin American Development at University of Missouri-Kansas City School of Law.

In his book, The Best Way to Rob a Bank is to Own One (University of Texas Press 2005) Mr. Black presents a history of the savings-and-loan industry scandals of the early 1980s and lays out how dishonest CEOs, crony directors, and corrupt middlemen can systematically defeat market discipline and conceal deliberate fraud for a long time — enough to create massive damage.

Sound familiar?