Steve Kroft’s explosive 60 Minutes report on rampant ‘legal’ congressional insider trading last Sunday provoked fury and heartache at an elitist political class spiraling out of control. I cannot claim to have romantic notions about any politician, but this latest disclosure is the final nail in the coffin. For politicians to use access to insider information to line their own pockets while sitting on or even trashing legislation that might adversely affect their personal profits is despicable. All the while, Wall Street continues to function like a giant Ponzi scheme. Representatives who claim to have our backs instead put us on the hook for irresponsible business practices and then profit from the same mistakes that cost average Americans their pensions.

We know that the regular rules do not apply to the “1 percenters.” Make no mistake; the 1 percenters refer to politicians as much as any “evil” banker since Congress counts at least 267 millionaires in their ranks. The message to those of us out here on the ground is clear: Take what crumbs we give you. Your voices will not be heard.

CBS’ 60 Minutes reported insider trading activity by four Republicans, including House Speaker Boehner, and only one Democrat, namely former Speaker and current Minority Leader Nancy Pelosi. Yet Throw Them All Out, Peter Schweizer’s book on which Kroft’s report is based, implicates plenty of Democrats, including Senator John Kerry who made a killing on pharmaceutical stocks in 2003 while on a committee influencing the same. But given the current nature of the fourth estate, with many reporters trading objectivity for access and a seven figure book deal, I am shocked such a story saw the light of day, balanced or not.

In Ms. Pelosi’s case, while House Speaker, she and her husband were offered very favorable terms in a credit card IPO. She likewise made a killing while sitting on legislation for two years that would have reduced her profit margin. For shame. Schweizer was condemned by Ms. Pelosi’s team as a “conservative writer” with an “agenda” even though Kroft stated that Schweizer’s research had been independently confirmed. Republican Rep. Spencer Bachus of Georgia, chair of the House Committee on Financial Services, basically bet against his own county in the financial crisis of 2008 and likewise made a killing in the market. There are now calls for his resignation.

As a result of Schweizer’s book, legislation is being proposed to stop the outrageous practice of legal insider trading by Congress. Let’s see how far it gets. It has been tried before only to die a quick death.

While Tea Partyers and the Occupy Wall Street crowds have gained some traction calling attention to perils of government overspending and greedy bankers, respectively, it is the Tea Party that has a more accurate perspective. Only through an irresponsible legislative body on both sides does other crooked activity flourish. It all rolls downhill.

Unfortunately, the truth of that message is obscured. The bulk of mainstream media helps to muddy the waters with biased coverage.

Most media outlets downplay reports of rapes, assaults, health hazards and filthy conditions at some of the OWS encampments around the country in what I assume is an attempt to glorify the movement. That same media has made a herculean effort to paint the Tea Party as right wing “extremists and racists.” Given the media’s predisposition for running interference for this President, as it did for his predecessor, it is not hard to glean their reasons for unfavorable characterizations of a group that targets government misbehavior rather than just the crooks on Wall Street.

In 2010, the Washington Post featured a story by a young woman who spent a year attending every Tea Party rally imaginable. She found scant evidence of racism, despite what the mainstream media, self-serving political operatives and frankly, anyone with a platform seems to imply. Likewise, there are OWS protesters with honest concerns and good motives who are not violent and do not defecate on cars.

Any grassroots movement is only as good – or bad – as those co-opting it. And it will only be deemed as good or bad as those who purchase ink by the barrel decide it can be.

Sarah Palin offered an op-ed in the Wall St. Journal in which she pointed out the need for “sudden and relentless reform” and bipartisan grassroots efforts to get it:

This call for real reform must transcend political parties. The grass-roots movements of the right and the left should embrace this. The tea party’s mission has always been opposition to waste and crony capitalism, and the Occupy protesters must realize that Washington politicians have been “Occupying Wall Street” long before anyone pitched a tent in Zuccotti Park.

Her suggested solutions:

We need reform that provides real transparency. Congress should be subject to the Freedom of Information Act like everyone else. We need more detailed financial disclosure reports, and members should submit reports much more often than once a year. All stock transactions above $5,000 should be disclosed within five days.

We need equality under the law. From now on, laws that apply to the private sector must apply to Congress, including whistleblower, conflict-of-interest and insider-trading laws. Trading on nonpublic government information should be illegal both for those who pass on the information and those who trade on it. (This should close the loophole of the blind trusts that aren’t really blind because they’re managed by family members or friends.)

No more sweetheart land deals with campaign contributors. No gifts of IPO shares. No trading of stocks related to committee assignments. No earmarks where the congressman receives a direct benefit. No accepting campaign contributions while Congress is in session. No lobbyists as family members, and no transitioning into a lobbying career after leaving office. No more revolving door, ever.

Not bad ideas. Then it is possible that politics may revert to being a public service rather than a path to millionaires’ row. I won’t hold my breath.

Grassroots – and bipartisan – fury is the only thing that may have an effect on our damaged political system, yet we cannot even seem to accomplish that, as demagoguery works to keep left and right busy tearing each other down, rather than seeing the true culprits here.

Self-serving political operatives and their cronies gin up all sorts of distractions to keep us focused on making enemies of one another, which keeps the attention off the more insidious crimes taking place behind closed doors.

As the late George Carlin once said, “You think you have choice in this country? Here is your choice: Leaded or unleaded. Decaf or Regular. Window or Aisle.” We are not encouraged to think critically to affect change, but rather to engage in what writer Robert A. Johnson called shadow projections – ‘I don’t have something because you have it. My life stinks because of you.’ It is a malaise that keeps us looking for bad guys, and gals, in all the wrong places. This generally leads to boxing with shadows, nothing more.

The halls of power offer a seductive siren song promising personal enrichment and influence. The protected political class, along with the irresponsible blokes in our financial sector had best beware the day that both sides let the smoke clear to see past the bread and circus distractions offered by those in charge. If America’s left and right ever figure out who the real criminals are, 60% of Congress will be out of a job. And the cronies they have long protected will likewise get a pink slip.

The first is in the State Department. This wasn’t just a wasteful decision, but an unethical, immoral, and I have to hope, illegal one. Within the State Department was a woman named Kathleen McGrade. The Daily Caller did some good, old-fashioned investigative reporting on her, and guess what they discovered? Ms. McGrade had funneled $52 MILLION of yours and my taxpaying dollars to her daughter, and her secret husband. I am not making this up, and neither is the Daily Caller:

[snip] Kathleen McGrade helped their company, Sterling Royale Group, win 43 federally funded contracts over the last few years.

McGrade acted as the Contracting Officer (CO) for awards to Sterling Royale Group. McGrade’s husband, Brian Collinsworth, serves as the company’s Vice President. McGrade’s daughter, J.L. (Jennifer) Herring, is its president and CEO.

When TheDC first reached Collinsworth for comment, he denied being married to McGrade. “She is the CO on our contracts, but we are not married in any way, shape or form. That’s kind of funny, but, okay,” Collinsworth said, adding that he and McGrade have no relationship “other than a professional one of a CO to a company.”

Collinsworth also denied that Herring is McGrade’s daughter, and his stepdaughter.[snip] (Click here to read the rest.)

Surprise, surprise, Collinsworth is a big liar. They are indeed married.

Fortunately, the State Department quickly did the right thing – they fired Ms. McGrade:

[snip] “Upon learning of the allegations, the Department immediately relieved Ms. McGrade of her responsibilities,” Laine said in an email. “Subsequently, the Department instructed her company that her employment at the Department is terminated.”

McGrade worked as a federal government contractor, handling the disbursement of taxpayer money for the State Department to other contractors. She worked on-site at the State Department in the office of Overseas Building Operations.[snip] (Click here to read the rest.)

Well, that’s just terrific, but, what about our money? And why hasn’t she been brought up on charges? Forced to pay restitution? Something? The State Department is being mum on any further action, according to the article. Oh, well, okay then. That’s fine – not.

Second, we have the ten year lease signed by representatives of the SEC. Oh, this is a doozy. The Wall Street Journal has the story:

[snip] Chairman Mary L. Schapiro has been under fire for the SEC’s decision last year to sign a 10-year lease valued at more than $500 million for 900,000 square feet of space in a D.C. office building known as the Constitution Center. A recent report on the lease by the SEC’s Office of Inspector General found that the SEC unnecessarily limited the locations it could consider because it overestimated the amount of space it needed. The report cited one employee who described the process used to calculate the space needs as a “`WAG,’ (wild-ass guess) and a ‘back of the envelope calculation.’”

The SEC made its projections based in part on the increased responsibilities related to the Dodd-Frank financial-overhaul law but also on budget projections that had not yet been approved. After the anticipated budget increase didn’t materialize, the SEC determined it would not need the space in the building, which is owned by David Nassif Associates.[snip]

Oops. Yep, they signed the lease, but then didn’t need the space after all, so…Good grief. These are the people running our government???

Now you see why they were called on the carpet:

In a hearing Wednesday before the Subcommittee on Economic Development, Public Buildings and Emergency Management to discuss the lease, Ms. Schapiro acknowledged missteps and said she wanted to SEC to cede its authority to lease space to the General Services Administration. U.S. Rep. Jeff Denham (R., Calif.), chairman of the subcommittee, also questioned why there was an urgency to get the deal done in spite of the “collapse of the real estate industry.”

Ms. Schapiro said she had heard there were few options for space. “It was presented to me…that if we were going to have any growth at all, we had to take this space,” Ms. Schapiro said.[snip] (Click here to read the rest.)

You’ll be glad to know that, according to the article, the Office of the Comptroller has been able to rent some of the space, but they are still looking for tenants for the other third of the sf available. Any takers? Oh, and they are considering whether to investigate this or not.

I’m sorry, but what’s the question there, exactly?? Sheesh.

And finally, last but definitely not least, is the third example of wasteful government spending I have heard of in just two days. If the second one was a doozy, this one is a wallop. It seems that two, not one, but two, Navy tankers which have yet to be completed, are now heading to the scrap heap. They only cost $300 million, so not as bad as the 10 year lease, but still, a mighty hefty amount of taxpaying dollars:

[snip] The Isherwood, stretching more than 660 feet, began its final journey this week, unceremoniously towed Tuesday from its mooring spot in the James River Reserve Fleet, also known as the “ghost fleet,” near Fort Eustis in Newport News.

Its destination: International Shipbreaking Limited in Brownsville, Texas, just above the Mexico border. There, the vessel will be cut up, its innards removed and disposed of, and its steel and other metals sold as recycled products.

The Eckford, of equal size, is scheduled to follow next Tuesday, leaving behind fewer than 20 junk ships in the ghost fleet, the smallest number since its inception during World War I.

Once the two Navy oilers have departed, “it will close one of the saddest chapters in American shipbuilding and for that matter, federal fiduciary folly,” wrote Joseph Keefe, a global maritime commentator, this week on the website MaritimeProfessional.com. [snip] {Click here to read the rest.)

This just begs the question: why were these tankers ever even authorized?

Someone asked recently what we are sending to countries that do not think highly of us, according to a recent Pew poll. We are going to give Egypt $1.3 billion this year for military aid; thanks to the Kerry-Lugar-Berman bill, $1.5 billion a year to Pakistan; and the list goes on. Since the Congress has failed to provide or pass a budget for the past couple of years, this CRS report on aid to East and South Asia should provide fairly up-to-date information.

But we cannot leave out the billions of US dollars in aid to Afghanistan that has been stolen, or “lost,” there. Holy crap.

“Waste not, want not” should be our mantra. This is especially true as our Congress and president fight over how much more in debt this nation is willing to go. And at what cost to us, our reputation, and our economy, they are willing to accept on our behalf. They can begin by being a helluva lot more careful as to how they spend our tax dollars, whether for programs at home, lack of oversight of personnel who have no authority to be signing contracts, and to those who do have the authority to sign away millions and millions without doing their freakin’ homework first.

These are just three examples in the past two days that have come to my attention. I am sure you can come up with a few more. Our Congress needs to remember they work for US, and when they waste money on programs or goods they are not going to use, they must answer to US. This isn’t Monopoly money after all, it’s for real. It is well past time they started acting like it.

That hasn’t had an impact on the NLRB, though, which filed a suit against Boeing since it will not be using union labor here (SC is a “right to work” state). Bear in mind that NO union jobs were cut because of this move, Boeing still has plants in Washington State, and in fact, their union positions have increased.

This has been an on-going battle, with the tacit acceptance by the White House of the NLRB trying to dictate to what states companies can, and cannot, have their businesses.

So, it is in that framework that Thomas Geoghegan, an attorney in Chicago, wrote this WSJ editorial, “Boeing’s Threat to American Enterprise; When major firms move to the South, it’s usually a harbinger of quality decline. Why let that happen?”

I’m sorry, what? Is he really saying that companies that move their business South automatically suffer in quality? Why, yes he is:

[snip] We should be aghast that Boeing is sending a big fat market signal that it wants a less-skilled, lower-quality work force. This country is in a debt crisis because we buy abroad much more than we sell. Alas, because of this trade deficit, foreign creditors have the country in their clutches. That’s not because of our labor costs—in that respect, we can undersell most of our high-wage, unionized rivals like Germany. It’s because we have too many poorly educated and low-skilled workers that are simply unable to compete.

We depend on Boeing to out-compete Airbus, its European rival. But when major firms move South, it is usually a harbinger of quality decline. Over and over as a labor lawyer in the 1980s and ’90s, I saw companies move away from Chicago, where the pay was $28 an hour, to some place in South Carolina or Louisiana where the pay was about half that. While these moves aggrieved me as a union lawyer, it might have consoled me as an American if those companies went on to thrive globally.[snip] (Click here to read the rest of this drivel.)

See, because if you are having to pay twice as much to compensate the unions, you are better off. Uh huh.

It’s a miracle we Southerners can even get our dumb asses out of bed every day, ain’t it??

Now, I thought about going on my own little rant, and believe you me, I could – but there were a whole bunch of comments at the WSJ that really say it all:

Buck Hebner: After reading y’all’s comments, I realize what an astute move the WSJ made publishing this lawyer’s editorial. The WSJ staff must be howling with laughter. This one editorial accomplishes what a hundred conservative viewpoints fail to do, show readers the true stakes of this battle. In a few paragraphs, Mr. Geoghegan unmasks the true intentions of big Labor and progressive policy. They believe stirring up sectional hate and class-warfare will help them achieve their goals of unlimited Federal power and personal gain.

150 years after the Civil War was fought, the South is rising again. Not as an antagonist to the North, but as a economic engine that will help all of America become stronger through economic competition. The WSJ should be commended. Thank you.

Roger Simpson: First, Boeing did not “move” any work from Washington; as they have repeatedly stressed, the work to be done in South Carolina is new work, and there is nothing wrong economically with adding jobs to a state that could sure use them. Second, the notion that Washington citizens are somehow more “skilled” than South Carolinians is sheer arrogance, and has no basis in reality. Such babble was used when the auto manufacturers moved jobs there, and we have seen how ridiculous it was.

The real issue is that Big Labor cannot afford for people to find out that the work of $28/hour workers (who still are not satisfied with their lot) can be done just as well by $14/hour workers in another state, and without complaint. Especially a state which does not cater to the class of self-important, professional protesters, who take a cut from every worker’s check to line their own pockets, while presuming to negotiate en masse for an entire group of indivdual free citizens.

Wilson Jones II: I hope this cat remembers that Southerners probably made the steel that holds his building up (Nucor), made his blood pressure meds (Glaxco Smith Kline), assembled his BMW…. AND we were smart enough to put together a rocket that put man on the moon… Now give me some Kickapoo Joy Juice as i listen to the theme from Deliverence…

Millard Ramsey: I can’t stop laughing long enough to compose a response to this piece. I live in Chattanooga where VW has seen fit to invest $1 billion in a plant that will employ thousands of those “unskilled” Southern workers. Looks like VW has given up on quality too.

Alan Davis: Kia in Georgia, Hyundai in Alabama, BWM in South Carolina, and the list goes on and on. The rush to low quality must be the new business model.

I might add, Gulf Stream Jets are made in Savannah, GA, Toyotas are made in Kentucky, oh, and not only are Hyundais made in Alabama, but so are Mercedes Benz SUVs, and NASA is there, too, with Peterbilts being built in Denton, TX.

If you want some good laughs, though, go read the 40+ pages of comments about this incredibly offensive, arrogant, condescending, and flat out Southernist BS from this Chicago lawyer.

Boeing has every right to build its plants wherever the hell it sees fit. And our government should not be in the business of telling businesses where they can have those plants. Hell, even the Seattle Times is claiming that “Obama Administration Putting Politics Before The Economy” with this misguided assault against Boeing, and SC. No freakin’ kidding. This is all payback.

And speaking of payback – remember when Obama shoved the (also misguided) stimulus down our throats to bail out companies like GM? He claimed that the Administration would not be micromanaging GM? Well, hold on to your seats – he lied. Yes, Obama lied. In fact, the Treasury Department DID essentially run GM, and get this:

[snip] These messages reveal that Treasury officials were involved in decision-making that led to more than 20,000 non-union workers losing their pensions. [snip] (Click here to read the rest.)

Holy shit. Well, that just goes to show you this NLRB debacle is not an aberration, but business as usual. Cutting TWENTY THOUSAND non-union pensions – are you kidding me with this?

Oh, but then again, what the hell do I know? I’m just a Southerner, after all…

Former Sen. Russ Feingold and progressive group MoveOn today called on General Electric CEO Jeff Immelt to resign from the President’s Council on Jobs and Competitiveness in the wake of a report that despite $14.2 billion in worldwide profits – including more than $5 billion from U.S. operations – GE did not owe taxes in 2010.

They also expressed anger over the fact that the company has cut its U.S. workforce by roughly one fifth since 2002.

“How can someone like Immelt be given the responsibility of heading a jobs creation task force when his company has been creating more jobs overseas while reducing its American workforce?” Feingold asked in an email to supporters, as The Hill reports. “And under Immelt’s direction, GE spends hundreds of millions of dollars hiring lawyers and lobbyists to evade taxes.”

MoveOn asked its members to sign a petition calling on Immelt to leave the administration, and Executive Director Justin Ruben called G.E.’s tax status “outrageous.”

“At a time when many in Washington, including the President, are worried about our nation’s deficit we should be punishing–not rewarding–companies like GE who are robbing the US Government and taxpayers of billions of dollars,” he said in a statement. “This sort of bad corporate behavior should not be rewarded with a top White House appointment.”

Why did it take the honorable Mr. Feingold so long to notice? Please forgive my cynicism but it is quite apparent that most politicians no longer speak out to help the American people – they speak out to help themselves. If indeed he does have a mind to challenge Barack Obama for the nomination in 2012, this is awfully good timing to start noticing corruption that was all too apparent to the rest of us three years ago.

Ironically, CBS also reports that President Obama has lambasted the very tax loopholes that companies like GE take advantage of. So are you telling me he is not aware of this contradiction?

The only people not aware are the ones who don’t follow the news closely enough to know the President is railing against the very people he has been helping all along. There seems to be a current bent to punish small businesses who create the bulk of jobs in this country in favor of crony capitalism and powerful über companies who wield far too much political influence as it is.

By the way, during 2008, GE owned NBC/MSNBC and also owned Newsweek. These are three organizations that morning, noon and night posted grossly favorable press to Mr. Obama in 2008 while trashing his primary opponent Hillary Clinton with a zest not before seen. That’s quite the coincidence…

MoveOn was so busy denigrating Hillary and trumpeting Obama beyond all sense, I suppose they did not notice the coincidence either. Did they not think there would be some sort of quid pro quo?

And if President Obama finally notices the “coincidence,” you can be sure he will not throw Immelt under the bus unless and until it is politically advantageous to do so.

Here is Stuart Varney explaining it all:

Yes, you heard that right – $160 MILLION dollars we have shelled out for these folks thus far. It is in their contract. Nice.

Fannie and Freddie are STILL dragging us down, be it through paying for these executives, or continuing to lost money on mortgages. To recap, in 2008, Fannie Mae lost $58.7 BILLION dollars, and Freddie Mac lost $50.1 BILLION dollars. And we are already in the red to the tune of $145 Billion now since 2008. One can only hope that the bleeding of money from these two institutions will be stanched, and SOON. Until then, though, it is the mother of bailouts since we owe 80% of the two now. You don’t even want to know what the anticipated amount is to fix them. If you can stomach it, click here.

But I am not holding my breath that Fannie and Freddie will get their comeuppance, which is long overdue. Considering Obama is expected to assert he wants to keep his spending ways when he gives the SOTU Tuesday night, I sure don’t see him taking on these two F’s.

Speaking of Obama, why is everyone acting like his actually getting a 50% approval in a few polls is the greatest thing since sliced bread? Is this an indication of our poor performance in mathematics that we see that as a GOOD thing? Many polls still have him below 50%, which is not exactly a glowing recommendation in my book (unless someone is a meteorologist, and then being right half of the time isn’t so bad. Ahem.).

I don’t get it. But that is the meme going into the SOTU – how Obama is doing SO well. Being crappy half the time (or more) at your job is NOT a good report, people, no matter how the pundits might want to spin it. I believe that would qualify as an “F” by most (all?) academic standards. Or at least it was back when I went to school (we didn’t get the “well, even though you failed at your homework, and failed your test, we are still going to pass you because we don’t want to hamper your self-esteem” pedagogy. We had to earn our grades, had to pass our tests, had to do WAY better than 50%, if we wanted to move on. Just sayin’.)

So, we continue to be bilked by Fannie and Freddie. They will continue to get our hard earned tax paying dollars to continue to operate in the red. Obama will continue his spending, deficit increasing ways, and ALL of this is passed on to us.

Gee – and he’s getting close to 50% approval? I guess some people don’t mind throwing their money away, especially to bail out a bunch of guys who lied, lied, and lied some more. But I do. How about you?

These progressive champions don’t seem to realize they have delivered the President more grievous insults than the ones they have long sought to protect him from. By framing President Obama as lacking in leadership skills, or being held captive by the opposition party, or too beholden to the far left of his own party, these pundits are telegraphing their belief that he is too soft, not a capable executive, not responsible for his own actions and a victim.

Their reasons for depicting Obama this way are their own, but I suspect it is too horrible for them to contemplate that they were taken in by branding and attractive rhetoric. Mr. Obama is doing precisely what he has done since well before his election – capitulate in the face of challenge. Were the “principles” pundits expected the President to uphold really his or theirs? A candidate must draw a line in the sand via his or her own record, demonstrating a willingness to go down fighting for a cause over the course of years before it can be proven that such principles are any more than projections by optimists wanting to be swept up by “history” and romance.

His State Senate record in Illinois recalled a man who voted “present” 130 times, along with 6 “wrong” or “oops, I hit the wrong button” votes. As a freshman US Senator he missed over 40% of his votes, particularly risky ones. In 2008, he reneged on FISA, was guilty of double dealing on NAFTA, reneged on his written promise to take public financing in his presidential campaign, and surrounded himself with corporatist advisors like Austan Goolsbee who have long favored privatizing Social Security. Contrary to his upstart, new kind of politics image, he receiving more money from Wall Street than any other candidate and was backed by the old guard of the Democratic Party. He praised President Reagan while belittling President Clinton and campaigned down south with Donnie McCurkin, ex-gay man “reformed through prayer. That the Obamas had long lived beyond their own means, receiving help with their house purchase from now convicted felon Tony Rezko and his wife should have given pundits pause.

This list went largely unchecked.

Most important, though the left favored Obama because of his purported anti-war stance, his little known 2002 anti-war speech regarding Iraq involved no vote or political risk yet when in the Senate three years later, he voted twice to continue funding a war he disagreed with.

Reviewing the above facts along with contradictory campaign promises Mr. Obama made in 2008, one has to wonder who these pundits thought they were urging the rest of us to vote for. And why do they complain that he is behaving in an unthinkable or incomprehensible way now? If one logically considers his record and his actions, not just his words, his current behavior was at least somewhat predictable via his past deeds.

President Obama showed himself to be a political opportunist wont to help those who helped him the most. Ergo, special considerations to unions and corporate bailouts by the truckload. This is not to fault Mr. Obama by the way. He presented his best self to the American people. If there were those who chose not to question his contradictions, who would not take advantage of such great good fortune?

The fault and responsibility must be placed squarely on the shoulders of the mainstream media and pundit class who abjectly refused to do their jobs in vetting Mr. Obama as a candidate. Those of us on the ground who saw inconsistencies and voiced our concerns were roundly and viciously insulted.

Further, the current furious flailing and complaints of liberal pundits are as empty and false as their previous accusations of “racism” were toward President Obama’s critics. Come 2012, they will all fall in line behind his candidacy, believing Republicans to be six kinds of evil. This is precisely why our President feels comfortable capitulating on tax rates, or pushing healthcare (without a public option) that is years away from being fully enacted rather than concentrating on putting Americans back to work. As far as President Obama is concerned, the left “has nowhere else to go,” despite Politico posting an article yesterday stating that President Obama was continuing and even growing a number of President Bush’s past policies.

While editorials on Huffington Post, diaries on DailyKos along with other print media are rumbling about a primary challenge to President Obama in 2012, the likelihood of its success is slim. And whether one feels the left’s wish list is right or wrong headed, or “sanctimonious” – as President Obama just called it – is hardly the point. Unless those who are furious now are willing to lose to win, offering more than idle threats, we will have more of the same rhetoric that we have been getting from both parties for years – lip service paid to a cause without effective solutions or legislation to back it up.

Solutions, anyone?

Oh, yeah – Freddie Mac is asking for TEN Billion Dollars. I reckon they just want to add it to their tab:

ABC News’ Matthew Jaffe reports:

Government-backed mortgage giant Freddie Mac today asked for $10.6 billion in additional federal aid after reporting a loss of $8 billion in the first three months of this year.

To date Freddie Mac has been provided with around $51 billion in government funds. The new aid would bring the total assistance to the lender to over $61 billion.

Late last year the Treasury Department essentially agreed to provide a blank check to Freddie Mac and fellow government-backed lender Fannie Mae when the agency controversially removed the cap on federal support for the lenders.

A “blank check”? That is what Geithner wants to give Freddie and Fannie? I reckon that’s what happens when you have someone in charge who can’t even fill out his own tax forms properly (or, as I like to say, a Tax cheat). Some folks aren’t happy about it, though:

Republicans have blasted the administration for that move, as well as for not putting forth a plan to overhaul the government-sponsored enterprises. Thus far the administration’s only action has been the April 14 release of a series of questions for public comment on what to do with the mortgage giants.

In addition, Treasury Secretary Tim Geithner has acknowledged that the government expects to suffer “very substantial losses” on its investments in the lenders, with recent estimates ranging around a minimum of $85 billion.

Well, that’s just jake – “a minimum of $85 billion.” That’s our money, folks.

And let’s not leave Fannie Mae out of this mix. Oh, no – now Fannie is asking for some more cash, too, a cool for $8.4 Billion more?:

Fannie Mae requested another $8.4 billion from the federal government on Monday, saying that it expects its deficits to continue due to trends in the housing and financial markets.

The government-controlled mortgage giant said it lost $13.1 billion applicable to common shareholders in the first quarter of 2010. In the year-earlier quarter, Fannie suffered a $23.2 billion loss, but an accounting change makes comparing the year-over-year losses difficult.

Fannie’s request for more federal funds comes just four days after Fannie’s twin Freddie Mac also asked for a handout – to the tune of $10.6 billion – after posting an $8 billion quarterly loss.

In using Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) to prop up the mortgage market, the government in December lifted a $200 billion limit on their bailouts, essentially giving the twin housing lenders a blank check. Fannie Mae has already received $76.2 billion from the federal government and Freddie has gotten $50.7 billion.

“In the first quarter, we continued to serve as a leading source of liquidity to the mortgage market, and we made solid progress in our ongoing efforts to keep people in their homes,” Fannie Mae President and CEO Mike Williams, said in a press release.

Just to recap, Fannie Mae and Freddie Mac were largely responsible for bringing down the housing market (click HERE to read the rest of the article).

Yes, indeedy, so no doubt the new Finance Reform Bill begins with Fannie and Freddie, right? Oh, so wrong. Chris Dodd, who benefited mightily from Fannie Mae and Countrywide says, “Nooooooooo.” Dodd thinks it should wait:

Sen. Chris Dodd (D-Conn.) said Friday that legislation to address troubled mortgage lenders Fannie Mae and Freddie Mac will have to come after the current financial-reform effort.

Fannie and Freddie, which are known as “government-sponsored enterprises” (GSEs), have been a lightning rod for criticism of Democrats during the financial reform debate.

Dodd, who is chairman of the Banking Committee and has led the effort to craft a financial regulatory reform bill, said that there was not enough room in the legislation for rules covering Fannie and Freddie.

“Fannie and Freddie and the whole GSE system and it’s a great question and a legitimate one in desperate need of reform,” he said on CNBC. “But candidly there’s only so much I could only take on with this bill, and so that comes up. But not in this round. It’s in the next wave here we have to deal with GSEs.”

Well, sure, that makes sense, right? If you live in Upside-Down World, anyway (click HERE to read the rest). What a glaring, blatant, prop-up for those two entities that have done SO much to destroy the housing market. Unbelievable.

Frankly, I think this is a dereliction of duty on behalf of our Congress people. They refuse to hold accountable the very companies who wreaked havoc with our economy. They are in collusion with them. Even worse, they continue to throw money down the money hole.

I have used this video before, but it seems mighty timely given the requests of Fannie and Freddie (Onion video alert):

In The Know: Should The Government Stop Dumping Money Into A Giant Hole?

If only this were a joke…

… I have a family member who is as conservative as it gets. We disagree a lot on how much the federal govt should do. But we wholeheartedly agree on this. He said to me last week,

“Until we can get the govt and the corporations out of bed with each other, we can’t even have a national conversation on how much or how little we want the govt to do. Until we end this rigged cronyism, we are ALL f*cked, Left, Right, and Center.”

Crony capitalism was a problem before this administration took power and that problem seems only to be increasing. Special interests, backroom deals, big corporations getting special exemptions — BP comes to mind. The corporate-owned media running interference and soft pedaling or ignoring stories until well past the expiration date of their effectiveness is likewise devastating.

Even Dan Froomkin, nee of the Washington Post, who now writes for Huffington Post, penned an article complaining that President Obama’s new fiscal deficit commission will be holding its meeting out of the public eye — contrary to the “transparency” repeatedly promised by this administration:

Members of President Obama’s deficit commission huddled behind closed doors Wednesday despite pleas from the left and right that they hold all their meetings in public.

The move only heightens suspicion that rather than forging a national consensus on future spending priorities, the commission’s work will consist of backroom dealings in which members of the Washington aristocracy find high-minded excuses for cutting the social safety net.

Bruce Reed, the commission’s executive director, assured the Huffington Post there is nothing sinister about holding working group meetings like today’s in private. But he had no good reason why they shouldn’t be held in public, either.

Froomkin’s article is entitled “Obama’s Fiscal Commission — What’s Going On In There?” if you would like to google and read it in its entirety.

Clearly, both sides are unhappy with this corporate cronyism — and we have seen all too many examples of it over the last ten years.

What’s the solution?

This is an open thread.

Sigh.

Okay, here’s the thing. I love San Francisco. It is a beautiful city. But seriously, how can they keep electing this woman?? Read it and weep:

While pointing out that it is the responsibility of the federal government to secure the U.S.-Mexico border, House Speaker Nancy Pelosi (D.-Calif.) said Thursday it is cheaper to treat teens for drug use than it is to interdict drugs being smuggled across the border.

CNSNews.com pointed out to the speaker at her weekly press briefing that a recent Justice Department report indicated that one in five U.S. teenagers used drugs last year, and then asked: “Are you committed to sealing the border against the influx of illegal drugs from Mexico and, if so, do you have a target date in mind for getting that done?”

“Well if your question is about drugs, I’m for reducing demand in the United States,” said Pelosi. “That is what our responsibility is on this subject. The RAND Corporation a few years ago did a report that said it would be much less expensive for us to, through prevention first and foremost, but through treatment on demand to reduce demand in our country, is the cheapest way to solve this problem.

“Incarceration is the next cheapest,” Pelosi continued. “It costs seven times more to incarcerate than to have treatment on demand. It costs 15 times more to interdict at the border. And it costs 25 times more with eradication of the cocoa leaf. This is an issue that it is very important to our country because of what it’s doing to our teenagers. That is the problem, what it is doing to our people.”

Yes, treatment is important, but treatment should NOT be the first line of defense in the Drug War, or in sealing our borders. Oh, but wait – perhaps Pelosi is unclear on that concept:

Click HERE for the transcript of this video.

Yep, she is unclear on the concept, especially since she doesn’t know what “seal” means. Here, Nancy, I’ll help you out:

seal or seal up – to close a container or space by covering it with something so that air or other substances cannot get in or out

It’s the getting IN part that is of import here. Understand?

Good grief.

But wait, it gets better, or worse, depending on your perspective: [snip]

According to the Justice Department’s National Drug Threat Assessment for 2010, “Nineteen percent of youth aged 12 to 17 report past year illicit drug use.” The assessment said that Mexican drug trafficking organizations (DTOs) are now the predominant supplier of illegal drugs in the United States. “Law enforcement reporting and case initiation data show that Mexican DTOs control most of the wholesale cocaine, heroin and methamphetamine distribution in the United States, as well as much of the marijuana distribution,” said the assessment.

Pelosi did say it was the responsibility of the federal government to control the border, although she did not believe that would prevent illicit drug use by teens in the United States.

“Controlling our border is our responsibility,” she said. “So, whether you’re talking about stopping drugs from coming in or having a well-managed migration policy, we have a responsibility to secure our border. But I don’t know what you meant by ‘seal’ and I think sealing the border doesn’t do a whole lot to reduce demand in the United States. As I travel the country, I know that kids are on meth and they can make it in their bath tub.”

So, if Pelosi is acknowledging that it is the federal government’s JOB to secure the borders, why the hell aren’t they doing it? This is her “logic” why:

To solve the drug problem, she said, requires reducing demand. “Let’s secure our border for every reason that we have responsibility to do so,” she said, “but if it’s talk, if our purpose is to solve that problem, we must reduce demand and the best way to do that is through prevention and through treatment on demand.”

Last week, CNSNews.com similarly asked Rep. Raul Grijalva (D.-Ariz.), who represents a district that covers 300 miles of the U.S.-Mexico border, if he was committed to sealing the border against the inflow of illegal drugs. Rather than answer the question, Grijalva turned and walked away, eventually shouting back at the reporter that it was “punkish” to ask the question.

It is now considered “punkish” to ask a representative why he is not doing his job? Oh, right – in the Obama World it is. How DARE we expect them to actually do their damn jobs.

If Pelosi is so concerned about cost-saving measures in terms of our borders and drugs, why did she support bailing out the banks, and buying car manufacturers? Perhaps the money spent for those little (cough, cough) endeavors might have been better spent securing – that is SEALING – our borders, dontcha think, Nancy? Nah, I know she doesn’t think so – smoking all that Hopium seems to have addled her brain a bit.

Wow. Oh, yes, the Justice Department. The very one Obama claimed he was going to have look into Arizona’s attempt to secure the borders. That is, their attempt to do what he is not directing the government to do. Then there was his adding insult to injury by poking fun at the state at the Correspondents’ Dinner. Nice. So, Pelosi doesn’t know what “seal” means, and Obama threatens states that are trying to protect their borders. WTH is wrong with these people?

Well, Governor Brewer has a response for these braintrusts (H/T to Larry Johnson for sending me this video):

Any time now, Obama. Stop threatening Arizona, and stop making jokes at their expense. Start providing the security they need to have. That’s your JOB, and a Constitutional mandate to boot. Why Arizona is being treated like a pariah by so many, including the President of the United States, in its attempts to protect its border from invasion, a duty of the federal government, which it has failed MISERABLY to address, is beyond me.

So, Obama – stop demonizing Arizona and start doing your job. Pelosi, learn what the hell “seal the borders” means. I gave you the definition already. You’re welcome. And give these states the help for which they have been asking, Texas and California, too, for that matter. Do your damn job already.

We are at a remarkable moment. We have an open, 2,000-mile border to our south, and the entity with the power to enforce the law and impose safety and order will not do it. Wall Street collapsed, taking Main Street’s money with it, and the government can’t really figure out what to do about it because the government itself was deeply implicated in the crash, and both political parties are full of people whose political careers have been made possible by Wall Street contributions. Meanwhile we pass huge laws, bills so comprehensive, omnibus and transformative that no one knows what’s in them and no one—literally, no one—knows how exactly they will be executed or interpreted. Citizens search for new laws online, pore over them at night, and come away knowing no more than they did before they typed “dot-gov.”

It is not that no one’s in control. Washington is full of people who insist they’re in control and who go to great lengths to display their power. It’s that no one takes responsibility and authority. Washington daily delivers to the people two stark and utterly conflicting messages: “We control everything” and “You’re on your own.”

All this contributes to a deep and growing alienation between the people of America and the government of America in Washington.

None of this happened overnight. It is, most recently, the result of two wars that were supposed to be cakewalks, Katrina, the crash, and the phenomenon of a federal government that seemed less and less competent attempting to do more and more by passing bigger and bigger laws.

Add to this states on the verge of bankruptcy, the looming debt crisis of the federal government, and the likelihood of ever-rising taxes. Shake it all together, and you have the makings of the big alienation. Alienation is often followed by full-blown antagonism, and antagonism by breakage.

Ms. Noonan also states:

The right never trusted the government, but now the middle doesn’t.

If Jane Hamsher is to be believed, many on the left aren’t thrilled either.

Of course, the White House is going to go after Social Security again. It’s the pot of gold at the end of Wall Street’s rainbow, and they desperately want that injection of cash which could keep their giant ponzi scheme from exploding. . . for a little while.

Lucky for them, Obama has successfully dismantled the opposition that kept George Bush from privatizing Social Security at Wall Street’s behest only a few years ago. Did anybody fail to get that message when majority whip Dick Durbin yesterday told “bleeding heart liberals” that they need to be willing to accept cuts to Social Security and Medicare benefits for the economic well-being of the nation?

…Just as the choice groups sat on their hands for the Nelson amendment in the health care bill, just like the Sierra Club remains mute in the wake of an oil spill the size of Delaware, there will be nothing more than progressive window-dressing in opposition to cutting Social Security benefits this time around. Any of these groups utter so much as a whimper in response to Durbin’s very alarming statement yesterday? Nada. Zip. Zero.

The idea that the right is more “authoritarian” and top-down than the left is absurd.

Good point, Ms. Hamsher – I don’t much trust what’s coming out of either side.

Ms. Noonan then discusses the much criticized law that Arizona’s passed out of frustration to control its borders:

It is doing this because the federal government won’t, and because Arizonans have a crisis on their hands, areas on the border where criminal behavior flourishes, where there have been kidnappings, murders and gang violence. If the law is abusive, it will be determined quickly enough, in the courts…

But the larger point is that Arizona is moving forward because the government in Washington has completely abdicated its responsibility. For 10 years—at least—through two administrations, Washington deliberately did nothing to ease the crisis on the borders because politicians calculated that an air of mounting crisis would spur mounting support for what Washington thought was appropriate reform—i.e., reform that would help the Democratic and Republican parties.

[snip]

The American president has the power to control America’s borders if he wants to, but George W. Bush and Barack Obama did not and do not want to, and for the same reason, and we all know what it is. The fastest-growing demographic in America is the Hispanic vote, and if either party cracks down on illegal immigration, it risks losing that vote for generations.

But while the Democrats worry about the prospects of the Democrats and the Republicans about the well-being of the Republicans, who worries about America?

No one. Which the American people have noticed, and which adds to the dangerous alienation—actually it’s at the heart of the alienation—of the age.

Both Hamsher and Noonan make clear that we don’t have much by way of allies in the persons of our government officials. It is apparent to anyone half awake that Democrats and Republicans, for the most part, capture an issue in furtherance of their careers and little else. There is a line in the movie “Syriana” –

“We want to give the appearance of doing our due diligence. But we don’t want to do our due diligence.”

Noonan uses the issue of government’s failure to secure the border to the same effect in her piece as Hamsher uses “the giant flaming ball of oil being pushed straight for the coasts of Alabama and Mississippi” that “[m]ight be the worst environmental event in decades” in hers – as examples of government ineffectiveness due as the result of succumbing to interest groups rather than doing what is best for the American people.

For those of us at NoQuarter long shouting in frustration for better leadership than what was being foisted upon us all, it is ironic that Noonan may be the first major pundit to make the following observation:

I asked a campaigner for Hillary Clinton recently where her sturdy, pantsuited supporters had gone. They didn’t seem part of the Obama brigades. “Some of them are at the tea party,” she said.

Though I don’t care for her “sturdy, pantsuit” snark –she notes correctly that we feel we have no place in this new world order of the Democratic party. Perrylogan, one of the commenters to Hamsher’s piece, makes clear why:

The progressive movement died during the primaries, when Obama’s supporters started calling their fellow Democrats racists.

Amen.

In the universe of President Obama, the second “Great Uniter” in a row (George Bush II being the first), we are now more divided against ourselves than ever. It also looks as though many are feeling divided from the very people we have elected to protect our best interests.

Much of this is the result of the politics of demagoguery – served up to control the populace rather than to assist it, to divide us from each other, so we never take the time to notice we have far more in common than we realize.

All this jumble is to say that when two ladies from opposite sides of the aisle express this much anger and frustration, it is time for our politicians to wake up – lest we do figure out how to unite peacefully. Then those elitists Jane, Peggy and we all rage against might be ridden out of town on a rail.

“We’re going to have to make some tough choices” about the deficit and national debt, President Obama said to a crowded gymnasium full of supporters at Indian Hills Community College, after a lengthy riff on how the unsustainable debt would need to be tackled.

This, unlike most of what the president said during the town hall meeting, was met with silence.

“I noticed I didn’t get a lot of clapping about the whole ‘We’re gonna have the hard choices’ thing,” the president ribbed the crowd.

The President is ribbing the crowd? Now that’s what I call “The Audacity of Hope.” Half million dollar pizza parties. The most expensive inauguration in history. After this gentleman spent all of last year more than tripling spending (yes, I know, I know, it was all Bush’s fault) now he wants to tell the American people it is time to make some hard choices?

More frustrating than the endless campaigning and political posturing is the notion that the American people are so bloody stupid, they will not leap to the same conclusions I just did. Further, he tells us this stuff as if he just thought of it. Haven’t the tea partiers, for one, been screaming about these very problems for over a year?

Could it be President Obama is not aware why his audience sat on their hands for his remark about “hard choices?” I cannot prove that the people of Ottumwa, Iowa agree with my assessment but perhaps this might be a reason why he did not receive the adulation he is used to and so craves:

It is offensive to be lectured to about fiscal restraint by a man who has been spending taxpayer money like a drunken sailor for the better part of a year and a half, bailing out and covering for reckless companies with reckless management styles that continue to scam the American people, hiding the true cost of the legislation his Congress has been ramming down our throats and promising transparency while delivering the opposite.

The people of Iowa, and the rest of American for that matter, have been practicing plenty of fiscal retraint as they deal with high unemployment, watching their savings dwindle to dangerously low levels amidst an uncertain future with an administration that appears tone deaf as to their problems.

Any President that keeps trying to sell the bill of goods that cap and trade is going to help solve our economic problems instead of finally planting his feet behind the desk to figure out how to put more people back ot work in this country really needs to talk less to the American people – and listen more.

“This will bear on how we think about our federal budget in the future,” [Obama] said. “Everybody dislikes Washington right now, and everybody wants to lower their taxes. Everybody hates waste in government. But at the same time, you know, government does some important things like helping to make sure you’ve got clean drinking water and that your roads aren’t full of potholes.”

Please Mr. President, stop telling me what I hate. I don’t hate taxes. I am more than happy to pay my fair share and do so regularly. I hate when my taxpayerdollars go to bailout out the actions of corrupt actors who are not held to the same rules as I am. I do not hate government. I hate bloated government, local, state and federal, that enjoys no end of perks and bloated salaries and perks. I appreciate the good things that government does, which is why I pay taxes. What I don’t appreciate is the things my tax money is supposed to pay for – like education – gets “borrowed” away and never returned.

Clearly, the President has no idea what I hate which gives me a clear indication of why his policies have nothing to do with the urgent needs of the American people.
Close attention need by paid to the following:

…Earlier in the day, back in Washington, DC, he’d presided over the first meeting of his Debt Commission, which will issue recommendations after the November 2010 elections on ways to reduce the $12.8 trillion national debt.

“I’ve said that it’s important that we not restrict the review or the recommendations that this commission comes up with in any way,” the president said at the meeting. “Everything has to be on the table. …This means that all of you, our friends in the media, will ask me and others once a week or once a day about what we’re willing to rule out or rule in when it comes to the recommendations of the commission. That’s an old Washington game and it’s one that has made it all but impossible in the past for people to sit down and have an honest discussion about putting our country on a more secure fiscal footing. So I want to deliver this message today: We’re not playing that game. I’m not going to say what’s in. I’m not going to say what’s out. I want this commission to be free to do its work.”

Could it be he is not going to give you any details about what is “in it” until after the midterms because if he told you now, all his herd mentality Dems insistently following Pelosi and Reid off a cliff would be voted down this November? Is that why we are not getting a report from the Debt Commision until after that?

In Ottumwa, the president previewed for the crowd that whatever the commission comes up with, “we’re going to have a very tough debate about how to bring down our deficits.”

He continued, “as this debate unfolds, I just want everybody to pay attention to what folks are saying. A lot of times politicians will tell you, ‘I’m going to cut your taxes, I’m going to lower the deficit, I’m going to expand Medicare.’”

Don’t settle for that, the president told the crowd. “Ask every politician when they say they’re going to balance the budget and deal with the deficit: ‘What exactly are you going to cut? What spending are you willing to eliminate? Are you going to eliminate funding for sewers? Are you going to reduce the cost of Medicare? Because there’s no such thing as a free lunch.”

Who the hell out here has been getting a free lunch. The free lunch has gone to the folks at Goldman Sachs, Fannie and Freddie, and GM (who claim they paid back their bailouts — however they did it with other TARP money).

A free lunch? Why does President Obama insist upon being condescending? Beyond his pronouncements from on high about “bitter voters,” this reminds me of candidate Obama’s pronouncement about Democrats and abortion during the campaign. As reported by CBS News:

“The mistake pro-choice forces have sometimes made in the past, and this is a generalization . . . has been to not acknowledge the wrenching moral issues involved,” he said.

Really? Do we not? Telling us what we do and do not like or believe seems to be a pattern.

Reading the other fine print of his statement in Iowa, he wants us to ask other politicians what THEY are going to do – but we cannot ask the President what HE is going to do. “We’re not going to play that game?” All he is doing is playing games, while taxpayers can only look on in frustration and disbelief.

The president said “the way folks talk about it in Washington,” you might think the debt could be solved by reducing waste and abuse, eliminating foreign aid and earmarks. But those are relatively small parts of the budget, he said.

Which “folks” are these, exactly?

“We could eliminate all foreign aid and all earmarks and we’d still have a huge problem, because most of our budget goes to Social Security, Medicare, Medicaid and defense spending, about 70 percent of the budget. Everything else we do is only about 30 percent of the budget. So this is going to be a tough bunch of choices that we gotta make here.”

Okay – so here is the bitter pill to swallow – get ready folks. Here come the cuts! So that if you have been paying in to Medicare, as my mother has, for example, in her 50 years in the work force, you can expect less. Presidents like to point toward Social Security’s impending insolvency without mentioning part of the reason it is in trouble is because government keeps borrowing money from it that they do not put back.
Remember his economic advisor Austan Goosbee talked about privatizing Social Security? Do not be surprised if you hear rumbings next year, too – the same rumblings President Bush made several years ago. Now I ask you – would you want the private sector – otherwise known as Wall Street crooks – playing with your dough while you’re busy keeping the roof over your head and don’t have enough time to daily monitor their shenanigans?

“I just want everybody to be prepared” for this debate, which will take place over the next couple years. “Remember when I was running for office, I said I will not just tell you what you want to hear, I would tell you what you needed to hear. And you needed to hear that we’re going to have some hard choices about our deficit.”

Oh, that was my favorite comment of all. I have never heard a bigger pile of horse hooey! And that is saying something. He told everybody what they wanted to hear out on the campaign trail – unicorns and giant popsicles. But little else.

Is there anyone with the courage to stand up and insist that this President start telling the truth? The press has already proven themselves to be, almost uniformly, nothing more than notches on his bedpost, cowed from speaking up for fear of a lack of access, which would mean a loss of their $5 million dollar book deals.

Who is speaking for us?

Thank you. Rant over.

Read how Austan Goolsbee, one of Obama’s chief economic advisors, tiptoes, avoids and runs away from this idea!!

CORKER: There is no question, and I think that first of all, I plan to offer changes to this resolution authority that say that, if a large entity like this has to go through this resolution where in essence they’re liquidated in an orderly way, I think that everything that the executive team and the board members have earned through this company over the last five years needs to be clawed back. In other words, there needs to be some penalties assessed to the management that have caused the country to have to go through this orderly liquidation process. So absolutely, I will be offering an amendment that deals with that, so that we’re taking back, we’re clawing back all the earnings that management has made out of this firm, if it has to go through orderly liquidation. I think that’s very appropriate, and certainly I’m going to be doing that on the floor if it doesn’t make
it into the base bill.

TAPPER: Austan, can the White House get behind that clawback
provision? Are you being out-populisted by Republicans?

GOOLSBEE: Well, look, in the bill now — the president went to
Cooper Union this last week to revisit the spot where more than two
years ago, he went and said we need to have fundamental reform–

TAPPER: But there is no clawback in this bill?

GOOLSBEE: There is a requirement that they’re all fired. If you
get to that point, all the management is fired–

TAPPER: So they take their $500 million to their home in the Hamptons.

GOOLSBEE: — all the shareholders are wiped out. Well, look, as I say, on any details, we’re open to looking at negotiating the details of how we carry out the president’s principles. But if negotiation — and Senator Corker, to his credit, is not in this camp — but if the negotiators are going to come forward more as a delaying tactic and we’re just going to put in hundreds of amendments and try to keep this going so as to stall, delay and kill reform, that’s not going to happen. This is going to pass.

Um. No. It’s not a delaying tactic. But since we saw in the case of Goldman Sachs that they were betting on the market crashing and profiting by our losses, we need to find some way to put the fear of God into these jerks so that they do not try to profit by playing Ponzi schemes with our dough. Corker’s idea is just one way to make sure we have leglsiation with teeth.

Whether Senator Corker is just doing some populist-type posturing or not, the point is made — if we don’t have accountability in this reform bill and, as Dem. Senator Sherrod Brown discussed earlier, a way to overcome this “too big to fail” debacle, any reform falling short of tackling those two concerns effectively is meaningless.

What do you think would be fitting punishment for irresponsible and dishonest Wall Street sharks? I have a feeling I know the answer!

Usually the Obama administration downplays expectations for job growth, but apparently Vice President Joe Biden didn’t get the memo – or he did, but just blew it off.

Well, it wouldn’t be the first time our loquacious VP has done such a thing and come up with his own thoughts on a heated subject:

“Some time in the next couple of months we’re going to be creating between 250,000 jobs a month and 500,000 jobs a month,” Biden said at a fundraiser today in Pittsburgh.

Next month, Biden predicted, the nation’s employers will add between 100,000 to 200,000 jobs to their payrolls.

Um. Could you please tell me where he is getting these numbers? We know the Census created a bunch of temporary jobs but they will evaporate in a few months. On behalf of all my friends, neighbors and local business owners who are struggling or whose businesses have already shut down, I’d love to hear some good news here – but only if it backed up by fact…

The administration’s own forecast projects that the labor market will add about 100,000 jobs a month for the rest of the year, then around 200,000 jobs a month next year, and 250,000 jobs a month in 2012.

Biden noted today that in the past he “got in trouble” for making predictions about job creation, but clearly that did not stop him from delivering his bold new projections.

“We caught a lot of bad breaks on the way down,” Biden said. “We’re going to catch a few good breaks because of good planning on the way up.”

Another phrase I’m not quite sure what to do with… “good planning”? So it was good planning to enact a pork, er, Stimulus Bill when they first got into office and then withhold a large percentage of the money until just before the midterms so they can artificially pump up the economy to get votes? Is that the sort of good planning we are talking about? Strikes me not only as cynical but downright cruel to so many who have lost their jobs and homes.

Please – if you have any news to report — I mean, real news, backed up by real fact, not just spit-balling or spin, that indicates some honest to goodness substantial job hiring is going to happen in the next few months, please share it…

I’m sure Mr. Biden would be happy to know someone agrees with him.

“The vast majority of the money I got was from small donors all across the country.”

– Barack Obama on Wednesday, April 21st, 2010 interview with CNBC’s John Harwood

“Vast majority.” According to Politifact, the Truth-O-Meter Says: FALSE!!!!

Obama campaign financed by large donors, too.

More of CNBC’s John Harwood and his interview with the President:

“In the 2008 campaign, you got a lot of money, about $1 million from employees of Goldman Sachs,” Harwood said. “Your former White House counsel Greg Craig is apparently going to represent Goldman Sachs. In light of this case, do either of those things embarrass you?”

“No,” Obama said. “First of all, I got a lot of money from a lot of people. And the vast majority of the money I got was from small donors all across the country. And moreover, anybody who gave me money during the course of my campaign knew that I was on record again in 2007, and 2008, pushing very strongly that we needed to reform how Wall Street did business. And so, nobody should be surprised in the position that I’m taking now because it is one that I was very clear about in the course of the campaign.”

Clearly, nothing embarrasses President Obama because he sort of made it up as he went along on the campaign trail and nary a soul in the media called him out on it.

Politifact pointed out the evidence didn’t back up Mr. Obama’s statement. More important, he got more from Wall Street than any other candidate. The public records bears this out:

While Obama got more money from small donors than his opponents, they did not account for the majority of his funds.

[snip]

In the general election, Obama got about 34 percent of his individual donations from small donors, people who gave $200 or less, according to a report from the Campaign Finance Institute. Another 23 percent of donations came from people who gave between $201 and $999, and another 42 percent from people who gave $1,000 or more.

His numbers for the primary were similar….

These numbers were compiled by the nonpartisan Campaign Finance Institute, and included in a report Reform in an Age of Networked Campaigns, which was published jointly with the Brookings Institution and the American Enterprise Institute.

During the campaign, Obama ended up opting out of the public financing system for presidential candidates, because the system limits how much money candidates can raise, and Obama realized he could raise much more money outside of the system.

Well, he did more than “opt-out” – he backed out of a written promise he made to take public financing.

…John Harwood, was correct when he said Obama got about $1 million from employees of Goldman Sachs; the nonpartisan Center for Responsive Politics puts the number at $994,795.

A topic for newsroom and pundit chatter this week has been the peculiar timing of the investigation of Goldman Sachs given the administration’s push for Wall Street regulation.

Another article, Goldman’s White House Connection Raises Eyebrows, reported:

Several former Goldman executives hold senior positions in the Obama administration, including Gary Gensler, the chairman of the Commodity Futures Trading Commission; Mark Patterson, a former Goldman lobbyist who is chief of staff to Treasury Secretary Timothy Geithner; and Robert Hormats, the undersecretary of state for economic, energy and agricultural affairs.

Jacobs of the University of Minnesota said that the administration now risks “kind of a feeding frenzy.”

“The administration has to be very careful,” he said, “because . . . they’re seen as the ones who bailed out Wall Street. If there are indications that the administration was talking to regulators or to Justice Department people about when and how Goldman or other firms would be investigated, I think that’s going to create almost a mob scene.”

And now we also know the CEO of Goldman Sachs has visited the White House several times. President Obama seems to enjoy railing against the very groups he likes making deals with behind closed doors. It would be nice if he acknowledged he is a lot more banker-friendly than he lets on.

Testimony Could Undercut SEC Charge Against Goldman

The government has testimony from a Paulson & Co. official that could contradict its own claims against Goldman Sachs, CNBC has learned.

Paolo Pellegrini told the government that he informed ACA Management that Paulson intended to bet against, or short, a portfolio of mortgages ACA was assembling.

If true, the testimony would go directly against government claims that ACA did not know Paulson was hoping the collateralized debt obligations would fail, and subvert charges that Goldman breached its duty by not informing ACA of Paulson’s position.

CNBC has examined documents in which a government official asked Pellegrini whether he informed ACA CDO manager Laura Schwartz about Paulson’s position in the portfolio, named Abacus 2007-AC1.

“Did you tell her that you were interested in taking a short position in Abacus?” a government official asked Pellegrini, referring to the name of the CDO portfolio.

“Yes, that was the purpose of the meeting,” Pellegrini responded.

Oops. I am guessing that is not the answer they anticipated:

The exchange is key in that the Securities and Exchange Commission is charging that the failure to disclose Paulson’s position was a “material” factor that could have caused both ACA and German Bank IKB to back out of the CDO investment. When the CDO failed, Paulson reaped a gain of more than $900 million, the government has said.

The SEC does not mention the exchange in its complaint against Goldman.

“We look forward to presenting a complete and accurate evidentiary record in court,” SEC spokesman John Nester said in a statement to CNBC.

CNBC further learned that Pellegrini and Schwartz met at least three times to discuss the CDO and Paulson’s short position on Abacus.

Because of the deal’s structuring, Paulson stood to gain $900 million from the deal but lose only $20 million.

Here’s the thing. Couldn’t they have actually done a TAD more investigating before making these charges against Goldman Sachs? I mean, they make the charges just the other day, and voila, a few days later, this testimony comes out completely contradicting their charges. I’m just saying, maybe SOMEONE could have done a little more homework before leveling these charges, don’t you think?

And while I am at it, NQ reader Peggy Sue supplied this fascinating testimony from William Black on Lehman Brothers to the House Finance Committee. It is quite an indictment of a number of federal entities, especially the Fed, as well as the SEC:

Holy smokes. Mr. Black didn’t mince any words, did he? He is exactly the kind of straight talker we need to clear up this big, huge, mess. And he exposes the sheer incompetence of those who have been charged with oversight of financial institutions, especially continuing “business as usual” when that business was costing us millions and millions of dollars.

It sounds to me like there are a helluva lot of people running this show deserving of lawsuits, too – I’m not holding my breath that they will get their comeuppance, though. They’ll probably get promotions…