I am now listening to a course on Nazism. The instructor is spending some time describing the political instability in Germany after WWI. Germany came apart at the seams, and was glad to welcome the Fuhrer who would same them from themselves.
In his introductory remarks, he said he had been teaching his course for 20 years, and it had not gotten any easier. I suspect that is because the situation in America is becoming uncomfortably familiar.
A friend of mine down here just got back from a trip to the States, and he said he was amazed by how fearful Americans had become. A neighbor of his bought three freezers and filled them with ammunition in Ziploc bags. They had plans to block invasion attempts of their area, even if they had to fight tanks.
This morning, I read this in the NY Times
Weekend Opinionator: Are Democrats, Too, Facing a Civil War?
Not only are Republicans fighting Democrats, they are fighting each other. On the Republican side:
– Charles Mahtesian and Alex Isenstadt at Politico: “In what could be a nightmare scenario for Republican Party officials, conservative activists are gearing up to challenge leading GOP candidates in more than a dozen key House and Senate races in 2010. Conservatives and tea party activists had already set their sights on some of the GOP’s top Senate recruits — a list that includes Gov. Charlie Crist in Florida, former Rep. Rob Simmons in Connecticut and Rep. Mark Kirk in Illinois, among others … Activists predict a wave that could roll from California to Kentucky to New Hampshire and that could leave even some GOP incumbents — Utah Sen. Bob Bennett is one — facing unexpectedly fierce challenges from their right flank.”
On the Democratic side:
“MoveOn.org is sending out emails today seeking more contributions for its campaign to defeat any Democratic senator who does not fully support Obamacare,” reported The Washington Examiner’s Byron York on Tuesday.
Later:MoveOn executive director Justin Ruben says the group has raised $3,578,117 for the project and is thinking of new ways to punish errant Democratic lawmakers.
“It’s a huge sum, and the clearest signal yet that any Democrat who helps Republicans filibuster health care reform will face an enormous backlash from the grassroots,” writes Ruben. And now, working in conjunction with Howard Dean’s old organization Democracy for America, MoveOn is starting a drive to take away the committee chairmanships of any Democrat who fails to live up to MoveOn’s progressive standards. “Many of these senators hold coveted committee chairmanships that give them significant power within the Senate,” Ruben writes. “Our friends at Democracy for America have launched an open letter urging Senate Democrats to strip committee chairmanships from any Democrat who filibusters health care.” Ruben says that more than 66,000 MoveOn and Democracy for America members have pledged to contribute.
Meanwhile, Obama, the great nobody, keeps himself in the background. He doesn't want to dirty his hands.
Obama is in Bed with the Bankers
From the New York Review: They Didn't Regulate Enough and Still Don't
Practically everyone now agrees that the steep recession of the last two years was caused, at least in part, by lack of government oversight of the financial industry. The half-dozen or so federal agencies that are responsible for regulating the financial community ignored the dangerously risky activities of bankers and traders; so did the Federal Reserve and the US Treasury.
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President Obama promised soon after taking office to reregulate the financial markets in a comprehensive regulatory bill. The administration released its proposals on June 14 in "Financial Regulatory Reform: A New Foundation," a lengthy white paper—not extensively covered by the press—that was overseen by Treasury Secretary Timothy Geithner and Lawrence Summers, the director of the National Economic Council, who served as Treasury secretary during the Clinton administration.[2] Rarely has an administration had a better opportunity to explore deeply how modern financial markets work and have evolved, and how readily they can be abused.
On balance, the white paper, though it contains several worthy ideas, was disappointing. Offering little more than a wide-ranging summary of existing regulatory proposals, it did not attempt to analyze why the crisis occurred or was so intense; nor did it identify in any detail the rules or regulations that were lacking that might have prevented the crisis. The President, in a mid-September speech on Wall Street, exhorted the financial community to support reform, but essentially reiterated last June's proposals.
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Banks and mortgage brokers that issued mortgages to home buyers were able to sell them immediately to investment banks and thus were less concerned about the creditworthiness of the borrowers than they traditionally had been. They profited from the mortgages regardless of whether they later went into default. This was possible because the investment banks then packaged these mortgages into complex securities with differing interest rates to make them highly attractive investments to a variety of pension funds, mutual funds, international investors, and even subsidiaries of their own banks. Money market funds, which promised almost riskless investments and catered especially to small investors, lent money to these investment banks and others at low rates, locking themselves into loans that were riskier than they realized. Low interest rates promulgated by the Federal Reserve in the early 2000s to stave off a recession also encouraged more lending.
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What is clear, however, is that the Obama administration has lost leadership of the issue of reforming Wall Street.
In fact, much of Wall Street has already returned to the aggressive practices that were widespread before the crisis, including high levels of compensation and the creation and trading of risky derivative contracts. And profits of financial firms, such as Goldman Sachs and JPMorgan Chase, often based on the same sorts of trading as in the past, are for the moment rebounding.
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This entire article is interesting reading, and educational too. We had hoped Obama would save America - the whole world hoped that - but this is not to be.
Posted at 07:05 AM in New York Review, Political comment | Permalink | Comments (0) | TrackBack (0)