Monday, January 31, 2011

BILL MAHER, "WHAT MAKES NFL FOOTBALL SO GREAT: SOCIALISM"


Bill Maher uses humor to point out what many don't like to see ...

New Rule: With the Super Bowl only a week away, Americans must realize what makes NFL football so great: socialism. That's right, for all the F-15 flyovers and flag waving, football is our most successful sport because the NFL takes money from the rich teams and gives it to the poor teams... just like President Obama wants to do with his secret army of ACORN volunteers.

Read the rest here.

- Mark

P.S. For an interesting primer on the players dispute with the NFL owners check out this piece.

THE GOP'S STRANGE POSITION(S) ON RAPE & SPOUSAL ABUSE

Remember when Republican Senators voted to allow the health care industry to deny women insurance coverage if they were ever a victim of domestic violence? The rationale - straight from the insurance lobby handbook - was that spousal abuse was considered a "pre-existing condition" because if you were beaten once you're more likely to be beaten again. So Republican Senators voted to allow spousal abuse to be classified as a pre-existing condition, which allowed the insurance industry to deny victims of domestic violence insurance coverage. Nice.

Well, hold on to your hats. The Republicans are at it again. Only this time it deals with rape. Check this out.
... the new Republican-controlled House is already obnoxiously redefining "rape" in pieces of legislation. Under their plan, only abortions from "forcible rape" would be eligible for government funding, instead of the much simpler "rape."
Put another way, if you want an abortion and don't have the money for one don't go looking for Medicare or Medicaid to cover rapes involving drugs or alcohol, rapes of women with limited mental capacities, incest over the age of 18, and date rapes (among others). Sanctity of life, you know.

What will they think of next  ...

- Mark

Here's the GOP Senators who earlier voted to allow insurance companies to deny coverage to domestic violence victims.

* Lamar Alexander (R-Tenn.)
* Richard Burr (R-N.C.)
* John Ensign (R-Nev.)
* Mike Enzi (R-Wy.)
* Bill Frist (R-Tenn.)
* Judd Gregg (R-N.H.)
* Orrin Hatch (R-Utah)
* Johnny Isakson (R-Ga.)
* Pat Roberts (R-Kan.)
* Jeff Sessions (R-Ala.)



Thursday, January 27, 2011

THIS IS YOUR MARKET ON CRACK ...

The good folks over at Zero Hedge have done us a favor and provided a list of 21 graphs and charts from the Financial Crisis Inquiry Commission's report on the 2007-2008 market collapse. Here it is. The graphs make it clear that we're still in a mess. Seriously.

Want to know how much Wall Street has been betting on the real goods and services produced in the market? Check out this chart ...


______________________________________________

Note: In market-speak, the bets made (both for and against) on financial instruments, which are listed under "Gross Market Value," is represented by the "notional amount" (of outstanding derivative positions) ... I know, I know. But that's how Wall Street speaks.   
______________________________________________

As you can see, the bets on financial instruments (and claims on money) almost hit $700 trillion by 2008. How much is that? Our entire economy is forecasted to produce only about $15 trillion worth of tangible goods and services this year!

One thing becomes clear. After 2004, if not sooner, private investors and the market players on Wall Street began smoking some kind of financial crack.



- Mark

IT'S HERE ... WHAT CAUSED THE MARKET CRASH

Here's the 2007-2008 market crash report from the Financial Crisis Inquiry Commission (FCIC) that we've been anticipating for some time now.

FCIC report

A preliminary staff report from the FCIC, that says pretty much the same thing as this 600+ page report (and says it in only 42 pages), can be found here.

Three points, for now, should stand out for the Fox News/Republican crowd:


1. Fannie Mae and Freddie Mac "followed rather than led Wall Street and other lenders in the rush for fool's gold" (p. 26)

2. Deliquency rates for Frannie Mae and Freddie Mac instruments were "substantially lower" than those purchased and securitized by other private financial firms (i.e. our "shadow banking" system).

3. By the end of 2008 the mortgages that were securitized by private and Wall Street led investors - again, our "shadow banking" system - were far more likely to be "seriously deliquent" than those from Fannie and Freddie (28.3% vs. 6.2%).

No wonder the Republican "Primer" issued in December ommitted the terms "Wall Street," "deregulation," and "shadow banking." Their political and financial overlords are worried that their greed and gambling would be exposed, and they needed some political cover.

If there's any coverage on this report watch for Fox News and Wall Street's apologists in Washington to point to "discord" and "disunity" on the commission, and then hold up the Republican "primer" as evidence of honest dissent.
- Mark

Wednesday, January 26, 2011

DOUBLING DOWN ON THE CRAZY

While Rep. Paul Ryan's response to President Obama's State of the Union address was notable for Ryan's fuzzy math, Rep. Michelle Bachmann's (R-MN) "fail to connect the dots" response to President Obama's speech was a classic [what do you know Fox News has scrubbed Bachmann's video; try this if the link below doesn't work] ...



A government that tells us which light bulbs to buy? 16,500 IRS/health care police? Oh, my ...

As I watched Bachmann speak I couldn't help but drift towards this Patsy Cline hit ...




- Mark

PAUL RYAN'S MAKE BELIEVE WORLD

Where's Joe "you lie" Wilson when you need him?


Congressman Paul Ryan (R-WI) - who has had trouble with numbers before - was selected by the Republicans to respond to President Obama's State of the Union speech. Political Correction has the goods on his make believe world views here, while the Huffington Post and Paul Krugman also have commentary.

Below are some of the Ryan "you lie" lowlights.

*************************

PAUL RYAN: The facts are clear: Since taking office, President Obama has signed into law spending increases of nearly 25% for domestic government agencies - an 84% increase when you include the failed stimulus. All of this new government spending was sold as 'investment.' Yet after two years, the unemployment rate remains above 9% and government has added over $3 trillion to our debt.

THE SPENDING FACTS:
Imagine that you worked really hard, and saw your pay go up from $43,000 in 2008 to $47,000 in 2009. You got an additional set of "one-time" commissions and bonuses that added up to $25,000 for your hard work (for a yearly total of $72,000 in 2009). Simple enough, right?

Your hard work continues through the next year and you get a raise. You now earn $53,000. But you get no bonuses or commissions like you did in 2009 because the bonuses were one-time. Did your wages and compensation in 2010 go up 84% from 2008 - as Paul Ryan might claim - or did your 2010 income actually rise just 24% from 2008?

Well, in Paul Ryan's world you saw a wage increase of 84% in 2010 because you got a bonus in 2009 (I know, I know ... it's his math, I'm just trying to explain it).

Try using Paul Ryan's math methods the next time you go into a bank for a loan. Apply your bonuses from the previous year(s) and see what they say, and what they do with your loan request.


********************

THE JOB FACTS:
To date, President Obama can be held accountable for the net loss of 41,000 jobs, while the Republicans should be held responsible for the net losses of 7,796,000 jobs.
Here are the numbers in graph form.




In fact, since the Recovery Act (or Stimulus Money) was put into place, the Private Sector Has Added Jobs Every Month Since December 2009!

MORE JOB FACTS:
According to Bureau of Labor Statistics data, the private sector shed 83,000 jobs in December 2009. Since then, the lowest monthly job gain was 16,000 in January 2010, and the highest was 241,000 in April 2010; private industries have added jobs for 12 straight months, the data show. Here's what the numbers look like in graph form.




But, wait. There's more ...

ECONOMY FACTS:
The non-partisan and highly respected Congressional Budget Office (CBO) estimates that the Stimulus Money (or the American Recovery and Reinvestment Act's policies) had the following effects in the third quarter of calendar year 2010. It ...

• Raised gross domestic product by between 1.4 percent and 4.1 percent,

• Lowered the unemployment rate by between 0.8 percentage points and 2.0 percentage points,

• Increased the number of people employed by between 1.4 million and 3.6 million, and

• Increased the number of full-time-equivalent (FTE) jobs by 2.0 million to 5.2 million compared with what would have occurred otherwise.
 
But, wait, there's even more that refutes Congressman Ryan's make believe, fact free, world. Princeton and Moody's Economists argue that the government's response to the market crisis was not only "Highly Effective" but that it has saved 8.5 million jobs.
 
There's more. Much more (which you can read here, here, and here), but Political Correction's stuff on the debt is especially good.
 
Suffice it to say that Congressman Paul Ryan's State of the Union response was disingenuous at best but can be explained by the fact that he's probably a lying sociopath.
 
And, keep in mind, Ryan is one of the GOP's pathetically named "Young Guns" who's supposed to lead them to the Promise Land. It gets worse. Ryan's also Chairman of the House Budget Committee.  
 
- Mark 

Monday, January 24, 2011

THE GOP'S 30 YEAR RACE TO THE BOTTOM


In an early James Bond classic the evil villain, Goldfinger, concocts an ingenious evil plan (aren't they all?). Goldfinger intends to irradiate the U.S. gold supply at Fort Knox with an atomic device. The goal is to render the U.S. gold supply useless for decades. This, in turn, will make the value of Goldfinger's own gold holdings surge.

Achievement through sabotage - as opposed to achievement through hard work - is Goldfinger's way of helping us understand the Republican's decades long race to the bottom.

For the better part of thirty years the Republican strategy for acquiring power has been to dismantle and discredit the state by depriving it of cash, while dumping the worst mistakes of the market on to its books. Tax cuts for the rich and bailout politics for their political supporters have become the GOP's "irradiate the state" tools of choice.



Contamination by deliberate sabotage - like Goldfinger's irradiation plan  - allows the Republican Party to criticize a bailout saddled federal government and cash-strapped states who are increasingly unable to make even the most basic repairs.

Market players, who are made fabulously wealthy through continuous bailouts, reckless deregulation, and favorable legislation, grin and then make outlandish claims about the superiority of the private sector. That America's super wealthy have gotten even richer after thirty years of favorable legislation and the GOP's tax-cut-jihad is simply icing on their "hate-the-state" palooza.

The rationale for the Republican's Goldfinger-like irradiation policy today is really quite simple.

Recognizing that the Great Depression revealed the weaknesses of an unfettered marketplace the Republicans second bite at the "magic of the market" apple under Ronald Reagan exploded in their face. Thirty years of deregulation and tax cuts for the rich have pushed America's national debt from about $950 billion in 1980 to $14 trillion today (almost $11 trillion when President Obama was inaugurated). It also contributed to biggest market collapse since the Great Depression in 2008.

But it has also paid political dividends.

Today, with cities and states cash starved, and America's richest class getting even richer, the Republicans continue to harangue a discredited and "broken" state for shortcomings that their policies have made worse. Like Goldfinger's gold stock, the GOP's political stock rises every time they get someone in America to believe the state is the enemy.


Collapsing infrastructures and failed government responses have become the poster children of debt-strapped states that are increasingly burdened with challenges they don't have the resources to deal with (unless, of course, Wall Street needs trillions of dollars for wrecking the economy).



By squeezing resources from the state - and transferring them to America's richest class - the Republicans are on the verge of breathing political life into Grover Norquist's infamous quote, "I don't want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub."

The fact that the state appears incapable of responding - or seems tone deaf - to natural disasters is beside the point. As long as the state gets blamed, the point is made. And like Nero fiddling while Rome burned, the Republicans party on through it all.


As Americans become increasingly frustrated with a toxic political environment, the state's problems are made worse by its seeming incompetence in the face of natural or market driven disasters.

Meanwhile, the ideas of the Republican Party, like Goldfinger's gold stash, have not been improved upon. In fact, they're not even trying. Think about it. The Republican Party voted to repeal President Obama's health care legislation last week - only to acknowledge that they had nothing to replace it ... The GOP complains about deficit spending, but continue to push for irresponsible tax cuts for the rich which make our deficits worse ... The current GOP leadership once proposed a budget with no numbers ... After railing against government spending for decades the new Speaker of the House, John Boehner, couldn't think of a single program he would cut from the budget during his first week as Speaker.

Under the GOP's race to the bottom approach our future - like America's Gold reserves in the Goldfinger movie - is in trouble. Only this time it is being hijacked by ideologues who have no other strategy but to deprive and discredit the state. This race to the bottom has been going on for the better part of thirty years and - with the 2012 presidential season around the corner - won't be getting any better.

It's really that simple.

- Mark

UPDATE: I adapted this post for publication in our local paper, the Bakersfield Californian, which you can find by clicking here.  As well, this bumper sticker seems to fit in with the piece ...



Saturday, January 22, 2011

COLLEGES NOT TRAINING STUDENTS TO THINK CRITICALLY?



As George W. Bush once asked, Is our children learning? Apparently not in some cases. This study was reported in McClatchy News services ...

NEW YORK — An unprecedented study that followed several thousand undergraduates through four years of college found that large numbers didn't learn the critical thinking, complex reasoning and written communication skills that are widely assumed to be at the core of a college education.
Many of the students graduated without knowing how to sift fact from opinion, make a clear written argument or objectively review conflicting reports of a situation or event, according to New York University sociologist Richard Arum, lead author of the study ...


But there is hope. The study also confirmed ...

... Greater gains in liberal arts subjects are at least partly the result of faculty requiring higher levels of reading and writing, as well as students spending more time studying, the study's authors found. Students who took courses heavy on both reading (more than 40 pages a week) and writing (more than 20 pages in a semester) showed higher rates of learning.

A few points here.

First, this makes me even happier to see student complaints about too much reading in my classes. I regularly require 2-4 books for a 10 week course (also, I have never given a multiple choice exam).

Second, I would like to see how the study controls for course loads, class size (which compel some professors to limit page requirements and to tone down written exams), and adjuncts (who are prone to giving mulitple guess exams; they're easier to grade). Budget cuts do matter here.

Finally, the study is especially pertinent because it helps explain the number of students - who eventually become adults - who think Glenn Beck and Fox News are legitimate sources of information.

And, no, that last comment isn't a cheap shot.

- Mark

Friday, January 21, 2011

A BORROWERS' BILL OF RIGHTS

Are you tired of living in a world where the intgrity of the market is compromised, and the banks operate like this ...


If so take a look at RJ Eskow's "borrowers' bill of rights" for the financial sector. While his focus is on fixing foreclosure fraud, his suggestions would go a long way in getting Wall Street and the banks working on the side of the American consumer (which, by the way, Adam Smith said is supposed to be the primary goal of the market).

Here's ten commons sense regulatory suggestions from Eskow's piece that I like ...


1. Honor Contract Provisions (e.g. no altering terms when contracts are sold off).

2. Honor State/Local Laws (rather than allowing "dummy" corporations to bypass regulations).

3. Don't Allow Homes to Become Digital Gambling Chips.

4. No More Retroactive Immunity.

5. Public Admission of Wrongdoing in Plea Deals (like this sleazy Alabama deal done through JP Morgan).

6. Make Auditors Legally Liable.

7. No Bonuses if you Get Rescued.

8. If You Borrow From the Federal Reserve at 0% You Must Lend.

9. Banks Shouldn't Own Fee/Servicing Companies

10. Rescued Institutions Must Renegotiate Underwater Homeowners.


Read his article for the details, and more. They would go a long way in bringing integrity back to the market.

- Mark

Thursday, January 20, 2011

Primero Hay Que Aprender Español. Ranhou Zai Xue Zhongwen.

I was glad to see this Niochals Kristof article in the NY Times. Here's the opening:

A quiz: If a person who speaks three languages is trilingual, and one who speaks four languages is quadrilingual, what is someone called who speaks no foreign languages at all?

Answer: an American.

The article was nice to see, especially after I heard Rush Limbaugh do this ...

- Mark