Showing posts with label Bailout Nation. Show all posts
Showing posts with label Bailout Nation. Show all posts

Monday, February 06, 2012

It's Halftime in Canada, Mexico and Italy

UPDATED: 07-Feb-12
image ripped from Jalopnik

Yesterday, like most Americans, I watched the game (and commercials) and enjoyed both. I thought the Clint Eastwood Chrysler ad at halftime was excellent. It never occurred to me that this was an overtly political ad, or endorsing Obama's re-election, or supportive of corporate bail-outs. Who knew? Apparently I am not sufficiently politicized to recognize the offensive polarizing nature of the ad.

I naively saw the ad as simply a straight-line continuation of the theme and style of Chrysler's excellent "Imported from Detroit" Eminem ad last year.

Here is the 2011 Eminem ad:

Tuesday, April 27, 2010

GM pays back $6.7B in government loans using $13.4B of government money parked in an escrow account in order to secure $10B in new government loans.

UPDATED: 01-May-10
All week I've watched GM CEO Ed Whitacre walking down a factory floor in a GM advertisement, crowing about repaying government loans while saying he could respect the opinion of those who did not want to give GM a "second chance". It is good to know that Ed can respect my opinion of the bailout. He might be interested to know that my current opinion is that his claim that GM repaid the loan from the US Government in full and ahead of schedule is complete horseshit. I hope Ed still respects me.

Shikha Dalmia at Forbes goes beyond opinion and actually does the homework:
GM CEO Ed Whitacre announced in a Wall Street Journal column Wednesday that his company has paid back its government bailout loan "in full, with interest, years ahead of schedule." He is even running TV ads on all major networks to that effect--a needless expense given that a credulous media is only too happy to parrot his claims for free. Detroit Free Press' Mike Thompson, for example, advises bailout proponents to start "warming up their vocal chords" to jeer their opponents with chants of "I told you so."
I wonder - Does Mike Thompson really believe that anyone beside himself would uncritically take the GM PR, advertising, and administration spin at face value and say "I told you so!" C'mon, Mike. Who would do that?

But I digress. Shika explains how the shell game worked:
"...the Obama administration handed GM only $6.7 billion as a pure loan... The vast bulk of the bailout money [$49.5B] was transferred to GM through the purchase of 60.8% equity stake in the company--arguably an even worse deal for taxpayers than the loan, given that the equity position requires them to bear the risk of the investment without any guaranteed return."

"...the Obama administration put $13.4 billion of the aid money as "working capital" in an escrow account when the company was in bankruptcy. The company is using this escrow money--government money--to pay back the government loan."

"...the company has applied to the Department of Energy for $10 billion in low (5%) interest loan to retool its plants to meet the government's tougher new CAFÉ (Corporate Average Fuel Economy) standards. However, giving GM more taxpayer money on top of the existing bailout would have been a political disaster for the Obama administration and a PR debacle for the company. Paying back the small bailout loan makes the new--and bigger--DOE loan much more feasible."
I said this was like a carny shell game, but that is not fair - to the shell game. In a shell game a bean is presumed to be placed under one of three cups, and the mark is fooled by quick manipulation of the cups into guessing and betting incorrectly where it might be found.

In GM's case, the administration just keeps stuffing more and more of our money into the company's pockets, the company moves some of the money from one pocket to another, gives a little back, and finally both the company and administration that gave them our money misrepresent what is taking place. When all is said and done, GM winds up owing us more money than before they "repaid" the loan.

But, no worries. We'll get the money all back. Someday. Over the rainbow. Just as soon as the 72.5% of GM company stock that US and Canadian taxpayers own is worth as much as they are owed and can be safely sold to repay it. The GAO suggests this may happen just as soon as....
" It concluded in a December report (which a more recent April report has said nothing to contradict, despite media spin to the contrary) that: "The Treasury is unlikely to recover the entirety of its investment in Chrysler or GM, given that the companies' values would have to grow substantially more than they have in the past."
... hell freezes over.

Hat tip to McQ at Questions and Observations who sums it up with this depressing observation:


"...it's actually worse than first imagined."

In the meantime, as taxpayers, we can take comfort in the knowledge that our money is being used to prop up a failed competitor and make life harder for the Ford Corporation. Ford is a well run American company that took the hard management decisions necessary to survive in a tough environment and made the right management decisions to earn the respect of all Americans. Ford continues to innovate and build new products out of their own capital and profits, not requiring or requesting any government handouts. And we are all paying to subsidize their competitors.

We can all sleep better knowing that our tax dollars are being used to undermine a great American company that did the right thing by reanimating their zombie competitors.

I guess I'll just have to be satisfied with the knowledge that since GM and Chrysler took my money against my will, they'll never get a dollar from me willingly to buy one of their cars. It's something.

UPDATE: 01-May-10
Nick Gillespie at Reason TV distills the scam into an easily digestible 90 second video:




H/T to Fausta, who also weighed in with a post explaining how "GM Paid Nothing". The real question, for me, is why does the media for the most part simply regurgitate such a transparent misrepresentation of the facts?

Divided and Balanced.™
Now that is fair.

Friday, July 31, 2009

Best Blog Post Title Of The Week

Maybe - best of the month.
Maybe - best of the year.
Maybe it is simply...

Best. Blog. Post. Title. Evah.

D.A. Ridgely at Positve Liberty:

Obama throwing money at the problem

"Free Money Program Proves Surprisingly Popular"

From the New York Times:
The House of Representatives voted to provide an emergency $2 billion for the “cash for clunkers” program on Friday, and the White House declared the program very much alive, even though car buyers appear to have already snapped up the $1 billion that Congress originally appropriated.
Refresh my memory. When exactly did Congress decide the word “emergency” means “popular with voters”?
My 1999 Jeep Grand Cherokee V8 is officially rated as 16 mpg in the city and 18 mpg on the highway. Average 16 mpg. The free money cutoff for SUV's is 15 mpg.

No soup for me.

NOTE: Lost track of where on the intertubes I found this animated graphic. Happy to credit the source here if anyhone knows who created it.

Divided and Balanced.™
Now that is fair.

Wednesday, July 29, 2009

Arlo Guthrie: "We need a loyal oppostion"

While I am trying to get my arms around the health care debate (screed under construction), how about a little musical interlude?

Arlo Guthrie in a New York Times Magazine interview last Sunday:
NYT: Where are you politically these days?
Arlo Guthrie: "I became a registered Republican about five or six years ago because to have a successful democracy you have to have at least two parties, and one of them was failing miserably. We had enough good Democrats. We needed a few more good Republicans. We needed a loyal opposition."
Couldn't have said it better myself.

Live at The Guthrie Center Church October 11, 2008...

...and at Woodstock in 1969:

Per my last post, we still need a few more good Republicans.

Divided and Balanced.™
Now that is fair.

Sunday, July 19, 2009

I can't add anything to this:
Guest WaPo OpEd on "Obama's predicament"

Every once in a while you run across something so well written, so precisely articulated, and so perfectly spot-on, all you can do is cut and paste. From Nick Gillespie and Matt Welch opining in the Washington Post:
"The key to understanding Obama's predicament is to realize that while he ran convincingly as a repudiation of Bush, he is in fact doubling down on his predecessor's big-government policies and perpetual crisis-mongering. From the indefinite detention of alleged terrorists to gays in the military to bailing out industries large and small, Obama has been little more than the keeper of the Bush flame. Indeed, it took the two of them to create the disaster that is the 2009 budget, racking up a deficit that has already crossed the historic $1 trillion mark with almost three months left in the fiscal year.
Beyond pushing the "emergency" $787 billion stimulus package (even while acknowledging that the vast majority of funds would be released in 2010 and beyond), Obama signed a $410 billion omnibus spending bill and a $106 billion supplemental spending bill to cover "emergency" expenses in Iraq and Afghanistan (and, improbably, a "cash for clunkers" program). Despite pledges to achieve a "net spending cut" by targeting earmarks and wasteful spending, Obama rubber-stamped more than 9,000 earmarks and asked government agencies to trim a paltry $100 million in spending this year, 0.003 percent of the federal budget.
Such is the extent of Obama's magical realism that he can promise to post all bills on the Internet five days before signing them, serially break that promise and then, when announcing that he wouldn't even try anymore, have a spokesman present the move as yet another example of "providing the American people more transparency in government."

What the new president has not quite grasped is that the American people understand both irony and cognitive dissonance... Don't pretend that a budget that doubles the national debt in five years and triples it in 10 is the work of politicians tackling "the difficult choices." Americans have a pretty good (if slow-to-activate) B.S. detector, and the more you mislead them now, the worse they'll punish you later."
The only thing I question is that last highlighted bit. For all the smarmy cynicism and sarcasm, the authors have a real optimism about the American electorate. I wish I could share their Pollyanna faith in my fellow citizens. The more I see, the more I fear that most Americans fall into the one condition not covered by the Abraham Lincoln homily. Obama/Axelrod are well on the way to proving that that you can indeed fool most of the people most of the time.

[NOTE: I did find something to add - a couple of self serving links to the embedded quote]

Divided and Balanced.™
Now that is fair.

Friday, May 15, 2009

Friday Flotsam - The "Please listen to what Obama says and pay no attention to what he does" edition.

Wherein we take a stroll down the metaphorical beach of the DWSUWF blog and note the detritus that has washed ashore and cluttered our little island of rationality in the great big blogospheric ocean. The beach is particularly messy now as we have neglected it for a few months. Your loyal blogger was distracted, spending time touring foreign lands and working on other projects.

While not a comprehensive cleanup, permit me to point out a few of the shiny items washed up on the beach.

ITEM - You should still buy a Ford
Last December, DWSUWF outlined why Ford was the only Detroit based automobile manufacturer that should be considered by Americans buying an American manufactured car. Since then, Ford has continued to reject government bailout money, managed to show some financial improvement, has rasied money from the private sector to improve their balance sheet, and their stock has more the tripled. This is a well managed American car company, surviving in tough times without government handouts. They deserve our support. Particularly since Ford will need to compete against the walking dead automotive monsters reanimated in the grotesque, experimental economic laboratory of Dr. Frankenobama.

Yes, back at the lab, GM and Chrysler continue to be fed intravenously at the Obama intensive care unit. They will continue to live for exactly as long as they stay on taxpayer life support and not one minute after (if?) the plug gets pulled. To the surprise of no one, it is now certain that the taxpayer "loans" to GM and Chrysler (as they were characterized by the President) will never be repaid.

The now familiar Obama administration communication philosophy of "Say anything they want to hear, but do whatever we want" is on full display. Obama actually said the government does not want to run the car companies, but the Obama administration and their proxy, the automotive task force, are hiring and firing CEO's, negotiating the bankruptcy terms with lenders, forcing mergers with a foreign buyer, deciding whether, when, and how to restructure GM and Chrysler, setting advertising policy, and deciding which dealers will remain open. Not surprisingly, Obama even wants to tell them what kind of cars to build, among other things.

But it is a relief to know that they don't want to run the car companies.

ITEM - Guantanamo in da moonlight.
I'll be heading to the Upper Peninsula of Michigan next week for an annual fishing holiday at our family camp. An ex-governor recently suggested that the U.P. would be a good home for any remaining detainees when Guantanamo is finally closed. Michigan headline writers are having a field day with this idea. [NOTE: It occurs to me that in order to appreciate this headline, one must be familiar with the straight-to-video, widely ignored Jeff Daniels cult comedy classic "Escanaba in da moonlight"]
Guantanamo in da moonlight?
Detroit Free Press
"How about Michigan, for a change, solving a problem for the U.S. government, instead of the other way around?That's one way to look at an idea floated recently by former Gov. John Engler to offer the Upper Peninsula, already home to a dozen state prisons, as a place to move the 200 or so enemy combatants and terror suspects now housed in a camp at Guantanamo Bay, Cuba. President Barack Obama intends to close Guantanamo, just as soon as the administration figures out what to do with the prisoners there, a knotty problem considering they may include some of the most dangerous people on the planet..."
Move Gitmo to da UP, eh
By Ed Brayton
"Former Michigan Gov. John Engler has an interesting idea to bring some revenue into Michigan: Turn the UP into Guantanamo Bay North... Not an idea that Michigan political leaders are likely to get behind."
Al Qaeda, eh?
"Former Michigan Governor John Engler suggested last week that the more than 200 prisoners currently housed at the soon-to-be-closed Guantánamo Bay, Cuba prison be relocated to to the Upper Peninsula. We certainly could use the money and people actually moving into Michigan to live would be big news.

Which would be fine until winter arrived, when a UP prison would run afoul of the Obama Administration's prohibition against torture"
Hey - If it moves some money and jobs to the UP... why not, eh?

ITEM - Obama is committed to fiscal restraint - BWAHAHAHA.
Honest to God - I mean how f***ing stupid does the administration think the American people are? Obama actually had the unmitigated gall to call a press conference and say this with a straight face:
"We can no longer afford to spend as if deficits do not matter and waste is not our problem," he said in his formal remarks. "We can no longer afford to leave the hard choices for the next budget, the next administration or the next generation."
WTF? This is the same guy that only weeks before proposed a $3.7 triillion dollar budget, quadrupling the deficit, and forced through a monstrous "emergency" trillion dollar "stimulus spending plan" that does not actually - you know - stimulate.

Even the liberal San Francisco Chronicle didn't buy it:
"To date, the president's rhetoric exceeds his results. He has long said he would require his team to scrub the budget "line by line" for savings. Thursday's release is the product of that review, though an administration official was careful to call it "only a step in the process" of dealing with the deficit problem.. In reality, in the short term, deficits do not matter much to the administration. His aides would say that's justifiable given the scale of the economic recession that greeted them in January. They have decided to spend freely to jump-start the economy and to reduce the resulting deficits later. An attack on government waste, as necessary as that may be, cannot solve the problems he is helping to create."
Did you get that? "The president's rhetoric exceeds his results." That's like reporting "The Titanic received a complete and thorough cleaning in the North Atlantic". I just don't know what to say.

Maybe you can fool most of the people all of the time.

This video from Stop Spending Our Future presents the reality of our current situation with a great deal more clarity than our president would like you to understand. Keep away from open windows and hide sharp objects before viewing:



We are doomed.

ITEM: Happy belated birthday to me!
While we were away, the third anniversary of the DWSUWF blog passed without fanfare. DWSUWF was born on April 23, 2006 in the service of promoting a voting heuristic of divided government in order to secure better governance and more fiscal responsibility out of our leaders in Washington.

Our first anniversary was noted here as we celebrated the reestablishment of divided government in 2007, which began paying dividends immediately. In our second anniversary [linked here] we were looking forward - hoping against hope that the benefits of divided government could be maintained across the November election. Alas, our third anniversary was ignored, as I was instead golfing in a faraway land, and enjoying exotic food and drink. While I played, our country continued its headlong plunge into mind-numbing, ruinous levels of debt that can never be serviced, never be repayed, and with terrifying consequences we have yet to experience. The deadly effects of single party rule has once again taken its toll.

We are not really getting older, we are just getting more cynical, more pessimistic and borderline catatonic in the face of this economic horror.

"Eat drink and be merry my friends, for tomorrow we die".

Divided and Balanced.™
Now that is fair.

Tuesday, March 17, 2009

Carnival of Divided Government - ûnus et trîcênsimus - Special St. Patrick's Day Edition

UPDATED: 03-21
Welcome to the 31st edition of the Carnival of Divided Government - The ûnus et trîcênsimus - Special St. Patrick's Day Edition. DWSUWF passionately supports all drinking holidays and in particular St. Patrick's Day. As motivation to get this Carnival completed ASAP, DWSUWF will forgo his first Guinness until such time that this Carnival is posted.

Alright. Lets crank this baby out. I'm thirsty.

Saint Patrick - The Patron Saint of Drunks.

I am not Catholic, or even Christian. I grew up in a mixed Jewish/Presbyterian household, ultimately identifying more strongly with the Jewish tradition. But I do like to drink and find myself drawn to this holiday. Perhaps it can be explained by the fact that there is Irish blood in my lineage. Growing up, my grandmother used to tell me we were Orangemen and insisted we wear orange not green on St. Patrick's day. Never really understood what she was talking about, but this 1880 New York Times article helped clear it up:

Those were the days when partisan polarization actually meant something. I don't know what my grandmother was thinking. I guess she expected me to take on the entire green-attired grade school and instigate a brawl on the playground during recess. Thanks Grandma.

But here at DWSUWF we are more concerned with the implications of Red vs. Blue government than Orange vs. Green religious squabbles. As explained in earlier editions, we have adopted Latin ordinal numeration to impart a patina of gravitas reflecting the historical importance of the series. In this the Carnival of Divided Government ûnus et trîcênsimus (XXXI), as in all of the CODGOV series, we select volunteers and draftees from the blogosphere and main stream media writing on the single topic of government divided between the Red and Blue parties (leaving it to the reader to sort out volunteers from draftees). Consistent with this topic, the primary criteria for acceptance in the carnival is to explicitly use the words and/or concept of "divided government" in submitted posts. A criteria that, to our endless befuddlement, is ignored by many of the bloggers submitting posts, which sadly results in DWSUWF reluctantly ignoring their fine submissions.

Today, two months into a great big blue legislative tsunami, we are beginning to see yet again the consequences of granting unfettered power to a single party. Awash in a sea of new spending programs, our children Grandchildren will soon be drowning in oceans of debt. DWSUWF can only offer a this selection of red, blue, and purple divided government posts as a life preserver to cling to during the spending flood. Just hold on and dream of that first Guinness of the night.

Carnival

In honor of the day, we will begin with a blog and a book from the Old Country. Last summer, Darnoc - a UF student left these shores for Dublin University, kicked off a blog entitled True Divided Government, wrote five posts, and has not been heard of in the blogosphere since. How often do you get the opportunity to read the contents of an entire blog in one sitting? I was intrigued by the title, found some nice pictures, but not much political content. As he is an Obama supporter, I can only assume that, like Obama and most Progressives, he defines bipartisanship as compromises between the left and the far left while disparaging the right and offering sonly eyewash and soothing words to the independent centrists. Presumably Darnoc is in Ireland to study under the tutelage of Robert Elgie, the Paddy Moriarty Professor of Government and International Studies at Dublin City University and Editor of Divided Government in Comparative Perspective:

"Divided government occurs when the executive fails to enjoy majority support in at least one working house of the legislature. To date, the study of divided government has focused almost exclusively on the United States. However, divided government occurs much more widely. It occurs in other presidential systems. Moreover, it is also the equivalent of minority government in parliamentary regimes and cohabitation in French-style semi-presidential systems. This book examines the frequency, causes and management of divided government in comparative context, identifying the similarities and differences between the various experiences of this increasingly frequent form of government. The countries studied include Denmark, Ecuador, Finland, France, Germany, Ireland, Italy, Mexico, Norway, Poland, and the US. "
Sound interesting. I'll read it as soon as the price drops by about 90% or so. $160 for a 256 page book? Really Robert? Really?

Lets bring this international Divided Government excursion back home by way of SJS and Team blogging at The Mighty Pen. This is an eclectic, oddly interesting anonymous political blog that claims to be a team of international writers, but is singularly focused on helping the rural poor of Malaysia. SJS had a very different take on Rush Limbaugh's recent infamous comments about supporting Presidents, divided government:
"The issue of separation of Powers does not seem to be confined to Perak these days. The following excerpt is from a transcript of a monologue from prominent American radio personality - Rush Limbaugh - who examines the concept of the Separation of Powers from a historical and current perspective for the United States (which could be also applicable for Malaysia..."
SJS reminds us, that unrestrained political power is a primary concern for most of world, and they do not think sacrificing checks, balances, and opposition to power on the alter of "getting things done" is a particularly good idea. The specific Rush Limbaugh quote that SJS references and finds relevant to Malaysia:
"The whole theory of the separation of powers, meaning legislative branch, judicial branch, executive branch, was ingeniously based on human nature. Our Founding Fathers had studied history, and they knew that absolute power corrupts absolutely. So we divide power. We divide power between the states and the federal government. We divide power within the federal government. And we further divide power among three separate branches of government. We give each branch a different set of powers and incentives to protect their own prerogatives so they can keep an eye on each other. These are called checks and balances. The underlying assumption of this whole system is that the country functions better if everyone is of a skeptical bent of mind. That’s what keeps the next guy honest. The whole reason that we have divided government instead of a king is that the issue is not about one government official succeeding. This country was not founded on the principle that the president is a king and above all the king must succeed. In fact, the system is designed to ensure that the president fails when he is wrong. That’s the whole purpose of checks and balances."
There are few things I find as distasteful as quoting or defending the statements of a hypocritical partisan windbag like Rush Limbaugh, except maybe quoting or defending the statement of his hypocritical partisan wind bag doppelganger on the left - Michael Moore. Impossible to say which would be more likely to drive me to rip out my eyes and ears and run screaming into the night. That said, Limbaugh's statement, divorced from the man who said it, stands on it's own and is perfectly correct and absolutely true. James Madison was a bit more eloquent making the exact same argument when he wrote this in the Federalist Paper #51:
"Ambition must be made to counteract ambition. The interest of the man must be connected with the constitutional rights of the place. It may be a reflection on human nature, that such devices should be necessary to control the abuses of government. But what is government itself, but the greatest of all reflections on human nature? If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary. In framing a government which is to be administered by men over men, the great difficulty lies in this: you must first enable the government to control the governed; and in the next place oblige it to control itself."
I can't let Rush off the hook though. Regarding that hypocrisy bit, I recall that Rush Limbaugh responded on his radio show to a caller asking about divided government on the eve of the 2006 mid-term Congressional elections thusly:
"The media has put that notion out there, and they've done it for a number years. They tried it in 2002 and 2004 in the sense it would be good. "We have one-party rule. Why, that leads to corruption and leads to people becoming out of touch in Washington." They love one-party rule when it's them. The only reason they're against one-party rule is because they're not the party, and so they're trying to say it leads to all kinds of bad things. But that means they don't trust the democratic process. The democratic process delivers what it delivers, and if it delivers a Republican dominated House and Senate and a Republican president, then that's representative democracy at work. That is what you get in a representative republic, and to sit there and complain about it is to complain about the system itself."
At the time I called this an example of the "intellectual bankruptcy of the right". Nothing has happened since to change my mind about that characterization. However, that does not obviate the fact that we may still need the "intellectually bankrupt right" if only to counteract the "intellectually banrkrupt left", who incidentally currently hold all the power. I call this phenomena the DWSUWF Corrolary to Madison's Maxim:
"Assholes must be made to counteract assholes."
Ron Chisud of Liberal Values also had some thoughts about Rush Limbaugh, and responds to a commenter responding to his thoughts by explaining "Why I Blog About the Direction Conservatives Are Going":
"I have written of the dangers of one party, regardless of which party, having total control, and expressed a preference that the Democrats remain shy of sixty Senate votes. Ideally I would prefer that we do not even have one party control both houses of Congress as well as the White House. There is a problem with a preference for divided government when one party has ceased to be able to respond meaningfully to current problems. There is a reason why independents have been moving towards the Democratic Party in recent years. Rush Limbaugh is a showman. He has no coherent political views beyond a set of simplistic talking points. People like Limbaugh, Coulter, and Hannity appeal to the worst parts of human nature and ignorance and do attract an audience. This does not mean that their views should become the guiding principles of a political party. Hoping to see the restoration of a viable two party system, I am interested when some conservatives support rejecting the anti-intellectual, authoritarian, no-nothing mindset which has taken control of the conservative movement."
I am in general agreement with Ron's post and thesis, but ... methinks he doth protest too much about the insufficiently intellectual nature of GOP opposition. In our system of government, it is important that a minority opposition party actually oppose the party in power. It is less important whether the opposition comes up to snuff on Ron's criteria of being a sufficiently intellectual opponent. If the Democrats had done their job as a minority opposition party in 2002, perhaps we would not be saddled with the crushing human and financial burden of the Iraq war. If the Republicans do their job as a minority opposition party in 2009, perhaps future generations will be able to avoid being saddled with the crushing debt and government entitlements being promoted and expanded by Obama and the Democrats.

If Ron Chisud can respond to commenters in a post, I guess I can too. Liz had some nice things to say about DWSUWF in comments to a recent post, but she took exception to our last:
"While I definitely agree that president Obama should not overstep his bounds as president, there is something to be said about a strongly democratic president and congress. Perhaps there will be less bickering, and more positive action (health care reform, ending of “torture”, etc…)! While no branch should be given the opportunity to rule completely without anyone to check them, the people did vote for a democratic congress majority and president. I don’t think it is fair to equate the idiocy of the bush administration to the progressive Obama administration. Let’s give the democrats a chance and perhaps we will have something to HOPE™ for!"
Here is the problem Liz - This is not about whether Obama takes advantage of and abuses the near monarchical powers claimed by the Bush/Cheney administration. He said during the campaign he would move to help restore the balance with Congress and the Judiciary. He isn't. He is doing the exact opposite by actively defending, continuing, and extending the power of the Bush/Cheney definition of the unitary executive. Even if you believe that Obama is a kind and good benevolent king, he won't be king forever. I hope you are as sanguine about the expanded power of the presidency when a Romney, or Palin, or - God forbid - if circumstances dictate that Biden has to take the reigns.

People were not voting for Single Party Progressive Democratic Ruleso much as they were voting against what Liz calls the "idiocy of the Bush administration".

Unfortunately, but predictably - Obama and Progressives now operate as if they have a mandate for radical progressive change, while the Independents and Centrists that voted for Obama are getting buyer's remorse. Too late. The left has the votes, the right is emasculated, and there is no telling how much damage will be done over the next four years to the budget, our economic liberties and our already broken economy. The least Obama could do is use his extraordinary executive power to restore the civil liberties lost under the Bush administration, but even that is not happening.

The way to achieve centrist government is not by electing politicians who will whisper sweet centrist nothings in your ear. The way to achieve centrist government is to never ever ever give either party all the power.

In a related post, Steven Germain asks a relevant question about how all this spending is going to be managed and postulates the probable answer in "There Is No Such Thing As Raw, Analloyed, Agendaless Kindness" - David Foster Wallace posted at Rough Fractals. Jim DeSantis has another answer in his post "You Are A Banker And A U.S. Automaker" posted at On Line Tribune | Front Page Blog, saying,
"What are we to do? We can do nothing except remember, at the next election, just who voted to put us and our heredity into hock and who voted against it. "
In other words, some of us will be voting for those who just said "No". Contrary to what President Obama asserted in his speech defending the budget today, "Just say no" is the exact right thing to say to this insane spending.

Break

I can't wait. I'm going out for that Guinness right now.

[TIME PASSES]

Carnival (continued)
Now I've done it. I am not sure that I will get this special St. Patrick's Day post actually posted on St. Patrick's Day. Let's just soldier on and see what happens.

Eric Michael Johnson takes issues with Yuval Levin's Newsweek article "Partisanship is Good" presents The Nature of Partisan Politics-Part I and The Nature of Partisan Politics-Part II posted at The Primate Diaries. His conclusion that Yuval is being hypocritical is not without merit:

"The day after the 2008 election, on November 5, when it was disclosed that Rahm Emmanuel would be the top pick for President Obama's Chief of Staff, Levin lambasted his choice as someone who was "a vicious graceless partisan: narrow, hectic, unremittingly aggressive, vulgar, and impatient." This, for Levin, was a bad sign and he criticized the new President because it "suggests both that he wants to be ruthless and partisan and that he does not have a clear sense of how the White House works." Perhaps his essay should have been titled "Partisanship is Good (But Only If My Side Wins)". With such a statement it would seem that Levin’s view of human nature has no concept of hypocrisy. Such outright duplicity not only illuminates his approach as an advocate of Ethics and Public Policy, it is the very nature of partisan politics that we should all seek to avoid."

I would encourage you to read both of Eric's posts in totality, but I would distill his argument to this - "Conservatives are bad and wrong. Liberals are good and right. Therefore Conservative partisan opposition to Liberal proposals are bad and wrong. QED. " Perhaps Eric Johnson's essay should have been titled "Partisanship is Bad (But Only If My Side Loses)." DWSUWF has opined before on this topic, most notably in this historical meditation and the post Polarized Partisan Politics Promotes Popular Participation.

Hendrik Hertzberg of the New Yorker takes a second look at the election returns in "Election Returns Redux" and concludes (among other things) that...
"Americans do not prefer divided government. They are not Broderists. Americans who are Democrats prefer Democratic rule; Americans who are Republicans prefer Republican rule."
Problem being, there is a glaring logical flaw in this statement. In order to conclude that Americans do not prefer divided government as Hendrik does here, one must conclude that all Americans are either partisan Democrats or partisan Republicans. Actual poll data does not support this premise. Depending on how you want to slice and dice the data, the general conclusion is that about 1/3 of the electorate identify Democrat, 1/3 identify Republican, and 1/3 identify as some version of Independent, Non-Affiliated, Libertarianish (Fiscal Conservative / Social Liberal), or Centrist. This center may register Democrat or Republican but will shift their vote from election to election, which means you cannot identify the electoral preference by looking at one election tally as Hendrik does here.

The simple fact is that voters who are philosophically aligned with fiscal conservatism, liberal social tolerance, live and let live diversity and limited government do not have much of a choice between big spending, big deficit, big government Republicans and bigger spending, bigger deficit, bigger government Democrats. They very well may decide that the real choice is between the unrestrained growth of government size and power under single party rule, or the relatively constrained growth that is only found under divided government.

I can't take this anymore. It is almost midnight. I am going to post this thing now, warts and all, just so I can say I got it posted on St. Patrick's Day, even if it is only St Patrick's Day somewhere the Hawaiian time zone.

I'll clean up the typos and graphics tomorrow, and there are a few more posts I'd like to add. Why don't we just call this the St. Patty's Season, and I'll just keep drinking Guinness and polishing this turd until I feel like moving on to another post.

Miscellany

Traditionally, we conclude this Carnival by including one "off-topic" submission, as a grudging acknowledgment and proxy for the many off-topic submissions received. Off-topic in this context meaning - no mentions of "divided government" or gridlock. For this issue we offer Angry Max presenting The Quests for Truth and Blood posted at Pterodactyl Puke, saying, "Concerning who, in both parties, is responsible for the economic meltdown, and what to do with them." The post could be considered thematically on topic, but that is not why I am including it. I am including it because it is funny, informative, deadly accurate, and borderline genius. Read it and enjoy it.

And on that happy note we conclude this edition. Thanks for stopping by, and thanks for all of the submissions (on-topic or not).

As previously announced - Since this carnival is focused on the topic of Divided Government, and seeing how voters spectacularly rejected the idea in the last election, and with no real prospect of restoring divided government before 2012, we have put this carnival on a reduced publication schedule over the next year. Instead of monthly, we'll go quarterly or - you know - whenever I feel like it.

Look for the next edition of The Carnival of Divided GovernmentXXXII - Special Memorial Day Edition sometime around - oh.. lets say May 25. Submit your blog article at carnival of divided government using our carnival submission form.


Carnivalingus

Some Carnivals and links of interest:
UPDATED: 03-21-09
Added unacceptably delayed and unfairly overlooked carnivals and links.
Fixed even more typos (Where do they come from??)

Divided and Balanced.™
Now that is fair.


Friday, February 13, 2009

Friday Flotsam - The Friday the 13th Frightening and Misleading Meme Edition

Wherein we take a stroll down the metaphorical beach of the DWSUWF blog and comment on the detritus that has washed ashore and cluttered this little island of rationality in the great big blogospheric ocean. Today, rummaging through our shiny new blogroll, we found...

Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus. Stimulus.

ITEM - Be Afraid. Be Very Afraid.
The economy is very bad. No doubt about it. But how does this recession compare to past recessions? Last week a graph was released by the office of Speaker of the House Nancy Pelsoi that was truly frightening:It was widely distributed across the blogosphere, particularly favored by left-of-center blogs. Frankly, you couldn’t design a graphic that would better serve to instill fear about the state of the economy. In fact, it was apparently designed to do just that, by truncating the left scale to emphasize the difference in the three compared recessions, using absolute unemployment numbers rather percentage of the workforce, and pretending that history began in 1990.

The following graph offers a somewhat broader perspective, comparing all recessions in the modern era (since 1946), expressed as an unemployment percentage.

Middle of the pack recession
H/T to Marginal Revolution for the graph.

The green bar is the current recession. No doubt, this is a bad one. About in the middle of pack as far as recessions go. The graphic points out an interesting aspect of recessions. They all end. And, surprisingly, they didn’t all need a trillion dollar stimulus bill from the Feds to end them. In fact, all of them combined up to now did not need a trillion dollar stimulus to end. McQ and QandO has a few more charts that show the same thing. A bad, but not wildly extraordinary recession. Worst than most, but not as bad as others we have weathered since WWII.

It is incumbent on our Federal government to help cushion the blow for those Americans devastated by this economic contraction. That includes unemployment extensions such as are in the stimulus bill. If there are infrastructure projects that we know we really need, like upgrading the electric transmission backbone, and repairing dangerous bridges, there is certainly a case to be made to do the projects now and cushion the recession impact. Fine. I’m on board. The operative word being “need”.

But to spend a trillion dollars, just for the sake of spending a trillion dollars, because some economists and politicians have an unproven dogmatic ideological belief in Keynesian theory, or - more likely - using unproven Keynesian theory as an excuse to load up a porker the likes of which we have never seen before - strikes me as batshit insane.

Nancy's graph served its purpose and helped the President sell us on the fear of a pending catastrophe so great we really need to be stampeded into the largest spending bill in the history of the United States. That the financial disaster is so great we really should not care that there is massive spending in this bill for projects that we do not need and will not actually stimulate the economy (translation of “the bill is not perfect“). That the impending crisis is so monstrous, that we cannot afford to take the time to make sure our money is not wasted, thereby guaranteeing, that we will waste more money with this bill than any other bill in history.

ITEM - Last fall's banking crisis was also so frightening that Congress did not have time to carefully consider the $700B TARP bill before throwing that money at Wall Street.

And here is one congressman explaining exactly why it was so frightening, in yet another meme that took the blogosphere by storm this week.

One problem with Congressman Kanjorski's entertaining story. It was not quite true. The part that grabbed everyone's attention, was Kanjorski claiming that there was a two hour $550 billion drawdown in money market funds last fall, essentially a "run on the bank" and that the global economic system was within 24 hours of complete collapse. This story has been used in blogs as justification for Congress abrogating their responsibility to carefully consider and debate how our money is raised, allocated and spent. Oh… and also for some gratuitous bashing of free markets. One example:

“For those of you who didn’t realize how dire the situation was (even though I implored you to take it seriously) I hope this video will make it crystal. If our banking system failed and it set off a chain reaction around the world, our credibility would have been TOAST… Letting the market work would have literally resulted in almost a complete unraveling of our way of life. Imagine if you had woken up the next day and discovered that your debit card, your credit cards… none of them worked. It would have been catastrophic.”

I thought the story was a bit fishy when I suddenly started seeing this clip all over. Why is it that the only source is one Congressman in an obscure CSPAN video clip? Where was the substantiation from… well… anyplace else? How is that anything so big and dire could take place last September, and nothing leak out about it until now? My suspicion was correct.

Kanjorski and the Money Market Funds: The Facts “With the Kanjorski Meme still spreading (see Ben Smith, Andrew Leonard, Moldbug, and more), I think I’m finally able to squash it with some hard figures: there never was a $500 billion outflow from any asset class in the space of a couple of hours or even weeks, and the Fed never shut down or froze any money-market accounts. This is not the first time that Kanjorski has made these allegations. But first, it’s worth going through the timeline…

on September 24, Kanjorski held a hearing on Capitol Hill with Treasury secretary Hank Paulson… Kanjorski is clearly fishing here: he’s talking about anonymous newspaper reports and vague “conversations” and anonymous Wall Street “friends”, and basically asking Paulson to confirm his suspicions. Which, naturally, Paulson doesn’t do, because the suspicions weren’t actually true. That said, however, Paulson’s being-polite-to-the-Congressman answer doesn’t explicitly say that Kanjorski’s numbers are false. After that, we didn’t here much more about this meme until Kanjorski resuscitated it on C-Span, this time citing the Federal Reserve as his data source, and beefing up the numbers for good measure…

…This is all, frankly, fiction, and it’s not clear where most of it came from, although maybe Kanjorski’s “friends” on Wall Street are the same people as Michael Gray’s sources at the New York Post. Thinking back to that crazy week it’s easy to get details wrong, especially when you’re speaking off the cuff on a call-in show. But let’s stop treating it as though there’s any substance to it. Please.”

So Kanjorski “misremembered” his sources as he told and retold the story over time, and as a consequence, bad reporting from the New York Post is given new life on the Intertubes.

That was indeed a very bad week for the financial sector. But there was no retail panic in money markets, no $550B drawdown in a couple of hours and the worldwide financial system was not 24 hours from collapse. Good story though. Kanjorksi enjoys telling it.

There are still questions and lessons to be learned. My question: To what extent did the Treasury Secretary and the executive branch permit misinformation and fear to be used to panic the Congress into abrogating their responsibilities to the American taxpayer and pass a very bad bill with very little consideration?

ITEM - The Stimulus Bill just passed the Senate. Beyond this, I cannot add much to my last post on this subject. I just think it is worth pointing out that none of our representatives in either the House or the Senate actually have any idea whatsoever about what is really in this bill. It is impossible for anyone to have read the final version that was voted on today. The final 1,000+ page bill was given to the legislators at 9:00 AM this morning, and passed tonight.
What a hairball. Your government in action. ITEM - Carnivalingus Some recent collections of high quality blogging punditry:
Divided and Balanced.™ Now that is fair.