Month: June 2009

Leon Panetta Says that We Intend to Keep Torturing

So, Barack Obama and His Evil Minions, are still arguing in court that there is no crime by Bush Cheney that they will not cover up:

The forced disclosure of such material to the American Civil Liberties Union “could be expected to result in exceptionally grave damage to the national security by informing our enemies of what we knew about them, and when, and in some instances, how we obtained the intelligence we possessed,” Panetta argued.

….

The “disclosure of explicit details of specific interrogations” would provide al-Qaeda “with propaganda it could use to recruit and raise funds,” Panetta said, describing the information at issue as “ready-made ammunition.” He also submitted a classified statement to the court that he said explains why detainees could use the contents to evade questions in the future, even though Obama has promised that the United States will not use the harsh interrogation techniques again.

(emphasis mine)

If you aren’t torturing any more, the information is no longer sensitive.

I cannot see any reason to make this argument unless the Gulags are still in place, and they intend to keep using them, or are still using them.

Boston Globe Newspaper Guild Rejects Wage Cuts

So the New York Times Corporation is unilaterally implementing a 23% wage cut.

I think that the National Labor Relations board may have something to say about this.

Absent bankruptcy, a contract is a contract.

I think there have been a number of reasons that this was rejected.

First, the Times‘ financial problems, are not as a result of the declines in the newspaper industry, but because of the enormous amount of debt that they took on to build, and move into, a swanky new headquarters building in 2007, and to pay (borrowed) cash for it.

When they could not roll over the short term loan, because of the financial crisis, they had to take a loan from Carlos Slim at very high rates. (14% !)

It also did not help that management handled communications abysmally, refusing to talk to its employees about the offer, refusing to send New York execs to the newsroom, and getting the math wrong, and then refusing to adjust the deadline, and making the cuts for rank and file about 50% larger than those of management.

This wasn’t a communication of the needs of the corporation, it was a communication of contempt for Boston by the folks in New York.

It should also be noted that the fact that the Times was not looking at New York for any give backs, and in fact continues to spend profligately, and just 2 weeks ago, the gift that keeps on giving, Thomas Friedman, shot his mouth off about how he never had to talk to an editor about what he is doing or spending:

Thomas Friedman, the Times’ chief foreign affairs columnist, lauded the efforts that Arthur Sulzberger, Jr., has made to keep the newsroom intact, saying, “I just have a great deal of admiration for him.” He told me that since taking his current post, in 1995, he has never been asked by Sulzberger what he was planning to write, or how high his travel expenses would be. “To be able to say what I want to say and go where I want to go—other than a Sulzberger-owned newspaper, you tell me where that exists today.”

(emphasis mine)

So, once again, Thomas Friedman, the man who is always wrong, drops another steaming redolent load on people who are ordinary enough that they have to work for a living.

I don’t know why the pay his travel expenses, he can create fictitious taxicab drivers who say exactly what he wants them to say while sitting at his home.

Economics Update

Well, we have good news, that consumer confidence rose in June, to 50.8, which means that it crossed 50, the dividing line between optimism and pessimism.

We also have mixed news in that wholesale inventories fell for the 8th straight month, which can either mean that we are seeing continued weak demand, or that we are approaching the point where orders have to pick up, because they still need to ship to retailers.

For what it’s worth, and I’m not a big fan of the predictive powers of “the market”, but both oil rose on the expectation of increasing demand and the US dollar fell, on reduced demand for a safe haven.

Poster Child for Regulatory Capture

So, it seems that after much in the way of government bailout money, and the fact that much of their voting equity is now government owned, the FDIC is looking at ousting Citi CEO Vikram Pandit.

There is one problem though, evidence of excessive spending on his lavish offices, his pay, and his bonuses is not enough to convince Timothy “Eddie Haskell” Geithner that a management change is justified, so he’s digging his heels in to keep Pandit as running, and mismanaging, Citigroup.

The first reform we need is to make sure that senior political officials who make policy aren’t just the big bank’s towel boys, and this ain’t happening.

Auto Industry Update

GM has arranged a sale of Hummer to a Chinese firm, and sold the Saturn brand to the Penske auto dealer group.

This actually bodes well for Saturn, because former race car driver Roger Penske is a real car guy.

He doesn’t get the manufacturing facilities or design capabilities, though GM will keep 3 models rolling out for the next 2 years, so he will probably go with foreign manufacturers to supply the dealership network, most likely Renault.

If he brings in some of the high MPG diesels, he will have a real winner.

The problem with Saturn is that GM left the brand stagnant for nearly a decade.

In addition to dumping a number of brands, GM is shutting down medium duty truck production, so it’s completely getting out of the business of making commercial trucks that are the basis for things like dump trucks and cement mixers.

Finally, the Supreme Court placed a stay on Chrysler’s sale to Fiat, pending resolution of disputes with bond holder/vulture speculators.

Fiat has said that this won’t queer the deal…..Yet.

In Your Face, Barack Obama

It appears that the Graham Lieberman photo suppression amendment, , which would have suppressed all torture photos from the time of the Bush administration, and only from the time of the Bush administration, has been dropped from the Iraq/Afghanistan supplemental in conference committee.

The liberal members of Congress made it clear that they would not vote for any bill containing this provision, and the conference committee has dropped it.

Background here.

Those people who contacted their Congressmen, including me, are to be commended for killing this abomination.

Here’s a Surprise

And in my own backyard, no less.

We now have confirmation that a number of banks, most notably Wells Fargo, specifically and disproportionately targeted blacks for high interest subprime mortgages:

As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

These loans, Baltimore officials have claimed in a federal lawsuit against Wells Fargo, tipped hundreds of homeowners into foreclosure and cost the city tens of millions of dollars in taxes and city services.

Wells Fargo, Ms. Jacobson said in an interview, saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania. Loan officers, she said, pushed customers who could have qualified for prime loans into subprime mortgages. Another loan officer stated in an affidavit filed last week that employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

I don’t know what bothers me more, that this happened, or that I am so unsurprised that this happened.

And it ain’t just Wells.

Whiskey Tango Foxtrot!?!?!?!?

It appears that two “Democratic” State Senators in New York State just switched sides, and may have handed over controll of the State Senate to the ‘Phants.

There are elections in 2010, and it’s pretty clear that the Republican Gerrymandering of the State Senate had already run into its limits, but I gotta figure that the knives are really out for Governor David Paterson now, because he, and his staff, are supposed to be all over this sort of stuff.

FWIW, there are rumors that this is about anti-gay bigotry, and the fact that the Senate would pass a gay marriage bill, but this story seems to indicate that it’s just an old fashioned, and legal, political payoff, with positions promised in exchange for votes.

Attorney General Cuomo, you need to go from “no plans”, to, “Yes, I am running.”

As an aside, I think that having a federally court imposed redistricting in 2011 or so would be better than letting the Republicans Gerrymander again.

People Who Do Not Understand that They Are Really Stupid

Yeah, the New York Times is on a real roll.

In an article on plans going through congress about fixing the US healthcare system, reporter Kevin Sack delivers this bon mot:

But critics argue that with low administrative costs and no need to produce profits, a public plan will start with an unfair pricing advantage. They say that if a public plan is allowed to pay doctors and hospitals at levels comparable to Medicare’s, which are substantially below commercial insurance rates, it could set premiums so low it would quickly consume the market.

(emphasis mine)

Ummm….Let me get this straight, the knock on a public option is that it will be too efficient?

The costs will be too low!!!! And the service will be too good!!!!

Horrors.

Dude, that’s the point. Private insurance has utterly failed!!!! Unless you have them compete against something better, they will stay crappy.

I have an idea, how about we start requiring PCB’s in tap water, because it unfairly competes with bottled water.

The Conservative Wing of the Supreme Court Supports Bribery

In a 5-4 decision, with Justice Kennedy being the swing vote, the Supreme Court ruled that state and local judges receiving huge campaign donations from political interest groups must recuse themselves:

Judges must disqualify themselves in some cases involving their top campaign contributors, the U.S. Supreme Court said, ruling for the first time that judicial elections can create a risk of bias that violates the Constitution.

The case, Caperton v. Massey, involves a fraud case against Massey Energy, in which a jury awarded $50 million to the small coal companies that they drove out of business.

Massey’s CEO, Don L. Blankenship then spent $3 million to defeat a state supreme court justice, and replace him with a more pliable fellow, one Brent Benjamin, who then refused to recuse himself.

Of interest here is that Blankenship only donated $1000 to Benjamin’s campaign, the rest he independently spent on ads against the incumbent, Warren McGraw, so this does not just apply to campaign donations, but independent expenditures too, at least in a case where the donations are “extraordinary” and “extreme”.

In this case, the donations were so outrageous that John Grisham made a novel out of them.

Of course $3 million for a state supreme court justice in West Virginia fits that bill, it probably would in California too, but for a local Justice of the Peace position, that number would be much lower, probably sub 6 figures, and the courts now have to hash that out.

Of course the simple solution for any is recusal, which would be done when there is the mere appearance of impropriety.

Unsurprisingly, Roberts, Scalia, Alito, and Thomas came out in favor of corruption.