• Tips gratefully accepted here. Thanks!:

  • Recent Comments

    Beata's avatarBeata on 🎼Join Ice🎶
    riverdaughter's avatarriverdaughter on Swing and a Miss
    Seagrl's avatarSeagrl on Swing and a Miss
    Seagrl's avatarSeagrl on Swing and a Miss
    riverdaughter's avatarriverdaughter on Swing and a Miss
    riverdaughter's avatarriverdaughter on Swing and a Miss
    Seagrl's avatarSeagrl on Swing and a Miss
    riverdaughter's avatarriverdaughter on Swing and a Miss
    Seagrl's avatarSeagrl on Swing and a Miss
    jmac's avatarjmac on Arbygate
    riverdaughter's avatarriverdaughter on Arbygate
    Beata's avatarBeata on Arbygate
    riverdaughter's avatarriverdaughter on Two Kings have you kneel befor…
    riverdaughter's avatarriverdaughter on Arbygate
    Beata's avatarBeata on Arbygate
  • Categories


  • Tags

    abortion Add new tag Afghanistan Al Franken Anglachel Atrios bankers Barack Obama Bernie Sanders big pharma Bill Clinton cocktails Conflucians Say Dailykos Democratic Party Democrats Digby DNC Donald Trump Donna Brazile Economy Elizabeth Warren feminism Florida Fox News General Glenn Beck Glenn Greenwald Goldman Sachs health care Health Care Reform Hillary Clinton Howard Dean John Edwards John McCain Jon Corzine Karl Rove Matt Taibbi Media medicare Michelle Obama Michigan misogyny Mitt Romney Morning Edition Morning News Links Nancy Pelosi New Jersey news NO WE WON'T Obama Obamacare occupy wall street OccupyWallStreet Open thread Paul Krugman Politics Presidential Election 2008 PUMA racism Republicans research Sarah Palin sexism Single Payer snark Social Security Supreme Court Terry Gross Texas Tim Geithner unemployment Wall Street WikiLeaks women
  • Archives

  • History

  • RSS Paul Krugman: Conscience of a Liberal

    • An error has occurred; the feed is probably down. Try again later.
  • The Confluence

    The Confluence

  • RSS Suburban Guerrilla

  • RSS Ian Welsh

  • Top Posts

Getting back to those tea parties . . .

(I never heard of Cody Willard before but I had a haircut like that back in 1978)

There’s something wrong when we edit people’s words in a way that changes their meaning.  Distorting the views of our opponents for shitzengiggles doesn’t help fix anything.

Monday: Getting the goods on Harman

Remember when Pelosi took up the Speaker’s gavel and we all breathed a collective sigh of relief because finally *something* was going to get done in Congress to curb the Bushies worst instincts?  We waited and waited while congresscritter after congresscritter did absolutely nothing but cave to the Republicans demands for, well, just about everything.  And we all started scratching our heads and got all tin-foily thinking that Karl Rove must be surveilling our reps and senators and had evidence of dead girls and live boys?

hahahahah!  That would be CRAZY!  We were just letting our paranoia get the better of us.

Well, you’d better sit down for this one.  It turns out that the Bushies *were* doing high tech surveillance on Congress members and one who got caught was Jane Harman.  Here’s the basic story:  Jane wanted to lead the House Intelligence Committee.  She had the seniority.  But she needed support so she made a deal with AIPAC.  She would try to do something about charges of spying against Israeli agents if AIPAC would lobby Pelosi for the job of head of the committee.  As part of a “routine” wiretap investigation on the spying allegation, the Justice department had Jane’s phone conversations tapped (how conveeeeenient) and learned about the deal.  Now, apparently, this quid pro quo arrangement that Jane was trying to swing crossed the line legally (I’ll say) and she could have faced some serious charges of a “completed crime”, meaning she made the deal and there is evidence she tried to fulfill her part of it.    But the Bushies protected Harman because…

(wait for it)

… they needed her support for warantless wiretapping.

What’s that about karma?

Then-CIA Director Porter J. Goss reviewed the Harman transcript and signed off on the Justice Department’s FISA application. He also decided that, under a protocol involving the separation of powers, it was time to notify then-House Speaker J. Dennis Hastert, R-Ill., and Minority Leader Pelosi, of the FBI’s impending national security investigation of a member of Congress — to wit, Harman.

Goss, a former chairman of the House Intelligence Committee, deemed the matter particularly urgent because of Harman’s rank as the panel’s top Democrat.

But that’s when, according to knowledgeable officials, Attorney General Gonzales intervened.

According to two officials privy to the events, Gonzales said he “needed Jane” to help support the administration’s warrantless wiretapping program, which was about to be exposed by the New York Times.

Harman, he told Goss, had helped persuade the newspaper to hold the wiretap story before, on the eve of the 2004 elections. And although it was too late to stop the Times from publishing now, she could be counted on again to help defend the program

He was right.

On Dec. 21, 2005, in the midst of a firestorm of criticism about the wiretaps, Harman issued a statement defending the operation and slamming the Times, saying, “I believe it essential to U.S. national security, and that its disclosure has damaged critical intelligence capabilities.”

Folks, you can’t make this stuff up.  Amazing.  There have to be dozens of stories like this that explain weird voting records.  The Bushies were very, very busy.  Of course, Harman should have known her phone would be tapped so maybe she wasn’t cut out for a leadership appointment anyway.

(BTW, as I was searching for an image on wiretapping, I found this interesting post about Skype.  Apparently, it’s harder to crack the encryption on Skype.  Good to know.)

Meanwhile, back at the ranch, the Bushies were busily waterboarding.  They did it 266 times.  On 2 people.  Now, that’s dedication to the job.  You’d think after the first 3 dozen times of getting faulty information they might have moved on to something a little more effective.  You’d be wrong.  But Obama is willing to let this all be so much water under the bridge. It’s all in the past.  Let us not quibble over a little drowning.  It would require a fight and potential loss of political capital, which he will need when he goes to Capitol Hill to fight the members of his party who are in the majority for the things he wants.

Changeity! Change! Hope! Change!


Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to FurlAdd to Newsvine

Sunday Late Night: What’s Happening?

We’ve had a couple of really serious discussions today. How about looking at the lighter side of politics for a bit? If you’d like to imbibe some liquid or chemical refreshment, please feel free. I had to quit all that stuff more than a quarter of a century ago myself. Now I’m just high on life! Actually, I’m a complete political junkie and internet addict, in case you hadn’t noticed.

So anyway, our Dear Leader is on another one of his trips, this time to Latin America for the “Summit of the Americas.” The Castro brothers are warming up to Mr. Obama, and Hugo Chavez seems to like him a lot too. Chavez gave Obama a book called Open Veins of Latin America: Five Centuries of the Pillage of a Continent, by Eduardo Galliano. The book quickly rocketed to second place on Amazon’s bestseller list and is now sold out. According to the BBC:

President Obama looked surprised when Mr Chavez got up from his seat, handed him the book and then shook his hand.

It was a Spanish-language paperback copy inscribed with the message: “For Obama, with affection”.

A little later, Mr Obama had this reaction: “Well I think it was a nice gesture to give me a book. I’m a reader.”

Fox News, in their usual unbiased “we report, you decide” manner, offers an entertaining story from the summit with the headline “Obama Endures Ortega Diatribe.” (H/T, Jangles)

President Obama endured a 50-minute diatribe from socialist Nicaraguan President Daniel Ortega that lashed out at a century of what he called terroristic U.S. aggression in Central America and included a rambling denunciation of the U.S.-imposed isolation of Cuba’s Communist government.

Obama sat mostly unmoved during the speech but at times jotted notes. The speech was part of the opening ceremonies at the fifth Summit of the Americas here.

Actually, the U.S. has subjected Latin America to more than a century of nighmarish aggression, exploitation, and interference with sovereign governments, but I digress. Back to the Fox story:

Ortega denounced the U.S.-backed attempt to overthrow Fidel Castro’s new Communist government in Cuba in 1961, a history of US racism and what he called suffocating U.S. economic policies in the region.

In his 17-minute address to the summit, Obama departed from his prepared remarks to mildly rebuke Ortega.

“To move forward, we cannot let ourselves be prisoners of past disagreements. I’m grateful that President Ortega did not blame me for things that happened when I was three months old. Too often, an opportunity to build a fresh partnership of the Americas has been undermined by stale debates. We’ve all heard these arguments before.”

Actually, the president misspoke on the sequence of events in Cuba. The invasion of CIA-trained rebels at the Bay of Pigs in Cuba occurred in April 1961. Obama was born August 4, 1961.

As Jangles pointed out in a comment on the previous thread, once again Dear Leader is confused about the timing of public events in relation to his birth. Perhaps if he didn’t have to reflexively make everything about himself, he wouldn’t repeatedly make these kinds of mistakes.

While I was perusing the Fox News website, I came across this hilarious story about Vice President Joe Biden: “Rove Calls Biden ‘Liar’ After VP Boasts of Scolding Bush.” Apparently the gaffe-tastic Mr. Biden told this story on CNN recently.

“I remember President Bush saying to me one time in the Oval Office,” Biden began, “‘Well, Joe,’ he said, ‘I’m a leader.’ And I said: ‘Mr. President, turn and around look behind you. No one is following.'”

Karl Rove is having none of it.

The exchange is purely “fictional,” said Rove, who was Bush’s top political adviser in the White House.

“It didn’t happen,” Rove, a FOX News contributor and former Bush adviser, told Megyn Kelly in an interview taped for “On The Record.” “It’s his imagination; it’s a made-up, fictional world.

“He ought to get out of it and get back to reality,” Rove added. “He’s making this up out of whole cloth.”

Rove also said few presidents would spend a long time with anybody in the Oval Office, particularly “with all due respect, a blowhard like Joe Biden.”

OK, I can’t stand Karl Rove, but that’s funny. In 2004, Biden told a similar story on Bill Maher’s show.

“When I speak to the president – and I have had plenty of opportunity to be with the president, at least prior to the last election, a lot of hours alone with him. I mean, meaning me and his staff,” Biden said on HBO’s “Real Time with Bill Maher” in April 2006. “And the president will say things to me, and I’ll literally turn to the president, say: ‘Mr. President, how can you say that, knowing you don’t know the facts?’ And he’ll look at me and he’ll say – my word – he’ll look at me and he’ll say: ‘My instincts.’ He said: ‘I have good instincts.’ I said: ‘Mr. President, your instincts aren’t good enough.'”

Hmmm…I wonder if Biden would have the guts to talk to Dear Leader like that?

So what are you reading/watching/hearing tonight? If anyone is still around, that is.

I keep forgetting that only in Massachusetts is tomorrow a legal holiday. Patriot’s Day. It’s the anniversary of the Battles of Lexington and Concord–the beginning of the American Revolution. Nowadays we just have a marathon and an early baseball game.

Concord Minuteman Memorial

Concord Minuteman Memorial

Ralph Waldo Emerson:

By the rude bridge that arched the flood,
Their flag to April’s breeze unfurled,
Here once the embattled farmers stood,
And fired the shot heard round the world.

Tea Party Thoughts

I didn’t pay much attention to the buildup to the “Tea Parties” that were held on April 15, and I didn’t follow any of the coverage of these events after they happened. I had gotten the impression that the “tea parties were a right wing phenomenon focused on high taxes. Since I actually would like to see higher taxes for the super-rich and corporations, I didn’t think I would fit in. It turns out the “Tea Parties” were also about other issues, like protesting the bank bailouts that most Americans, including myself, didn’t want. Apparently, the “tea parties” were heavily promoted by Fox News Channel as well as former U.S. Representatives Newt Gingrich and Dick Army.

I also thought it was interesting that so-called “progressive” bloggers like Jane Hamsher and Mike Lux along with professional organizers Joe Trippi and Zephr Teachout organized a protest on April 11 called “A New Way Forward.” Please note that the rallies were heavily promoted by William Greider and The Nation magazine. Greider even appeared on The Bill Moyers show to promote the “movement.” Here is a report on the Washington DC “a new way forward” demonstration, attended by Jane Hamsher. The video has a Republican bias, so tune that out if it bothers you.

Our own Riverdaughter attended the “new way forward” rally in New York City, and reported that it was a little small and disappointing, although she did meet two very nice young people there named Zach and Alana.
Continue reading

Sunday: Israel/Palestine rears its ugly head again

Palestine UN Partition Plan- 1947  How far back will we go?

Palestine UN Partition Plan- 1947 This map?

The issue that caused the “Great Schism” on The Confluence (or the excuse anyway) is back in the news.  Rahm Emanuel has signaled to the Israelis that there will be conditions on our support.  From Mid-East Peace Pulse:

Rahm Emanuel told an (unnamed) Jewish leader; “In the next four years there is going to be a permanent status arrangement between Israel and the Palestinians on the basis of two states for two peoples, and it doesn’t matter to us at all who is prime minister.”

He also said that the United States will exert pressure to see that deal is put into place.”Any treatment of the Iranian nuclear problem will be contingent upon progress in the negotiations and an Israeli withdrawal from West Bank territory,” the paper reports Emanuel as saying.  In other words, US sympathy for Israel’s position vis a vis Iran depends on Israel’s willingness to live up to its commitment to get out of the West Bank and permit the establishment of a Palestinian state there, in Gaza, and East Jerusalem.

Obama is also not going to be taking last minute invitations to have a talk over drinks with the Israeli Prime Minister next time he’s in DC for an AIPAC conference.  Our protection of Israel from the Persian meanies in Iran seems to be contingent on Netanyahu bargaining in good faith. (H/T Corrente)  Plus, Obama is easing up on restrictions of financial aid to the Palestinian Authority.  I’m not sure how far the pendulum should swing in this regard.  After all, Hamas has links to terrorism and Israeli’s do have a legitimate concern for their safety.

Or this one?  Pick one quickly.  We havent got all day.

Or this post 1967 one? Pick quickly. We haven't got all day.

On the other hand, electing an right winger like Netanyahu sounds like an attempt by Israelis to move the Overton window as far hardline as possible in anticipation of a change in US policy.  Maybe they think they can reach some homeostasis by pushing ferociously back to where they started at the end of the Bushie administration.   But it looks like the US is saying the jig is up and we will be expecting compliance from Israel for a two state solution regardless of who is prime minister.  I have a feeling that recitations of past horrors inflicted on the Jewish people may be met with “Tell it to the chaplain”.  There may be an expiration date on emotionalism.  Israelis can still make legitimate claims about the threat of terrorism but inhumanity cuts both ways these days.

Sounds like Hillary and George Mitchell have their work cut out for them.

In other news:

From the files of No $%@! Sherlock, it has come to the attention of some Washingtonians on the Democratic side that Obama is not a fighter:

Mr. Obama has not conceded on any major priority. His advisers argue that the concessions to date — on budget items, for instance — are intended to help win the bigger policy fights ahead. But his early willingness to deal or fold has left commentators, and some loyal Democrats, wondering: where’s the fight?

“The thing we still don’t know about him is what he is willing to fight for,” said Leonard Burman, an economist at the Urban Institute and a Treasury Department official in the Clinton administration. “The thing I worry about is that he likes giving good speeches, he likes the adulation and he likes to make people happy.”

So far, he said, “It’s hard to think of a place where he’s taken a really hard position.”

In some of his earliest skirmishes, Mr. Obama eventually chose pragmatism over fisticuffs.

So funny that the left blogosphere worked so hard to push back the Republicans and elect Democrats who would finally act like Democrats and what did we end up with for a President?  A shmoozer who hijacked the Democratic party and has jettisoned all that Democratic stuff to ride out four years of the worst economic crisis we’ve seen since the Great Depression by catering to the Blue Dogs.  It sounds like some Democrats in the party who caved to the Obama faux juggernaut last year are starting to realize that he is going to seriously damage the party’s reputation.

Obama has taken a pragmatic approach because he doesn’t want to get into a partisan fight- with his own party.  This man has been given every opportunity to turn around the hardass, mean-spirited policies of the Bushies and he chooses to sit on his hands and deal pragmatically.  Where is the big Change™ agent?

Markos Moulitsas has a lot of explaining to do.

Bedtime Story

An Irish lullaby from Lisa Hannigan…

Ahhhh, and a little Basil-Hayden’s to hurry me off to Tir nan og, land of eternal youth…

This is an open thread.

Saturday: Forest and trees and The Marshall Plan

Yesterday, I was listening to Stuff You Missed in History Class and the topic du jour was The Marshall Plan.  As I might have mentioned before, my knowledge of history is non-linear as a consequence of having moved 14 times before I graduated high school.  So, I listen to podcasts like this to catch up on things that got lost in transit.  One of the things I learned yesterday about the Marshall Plan is that it wasn’t just a massive act of charity on the part of the US towards a wartorn Europe.  No, there was definitely an ulterior motive.

After WWII, Europe was so devastated economically, and then suffered a ruinous weather event in the winter of 1946 that killed the wheat crop, that the populations were suffering malnutrition and looking forward to debilitating poverty for decades to come.  George Marshall anticipated that the conditions were ripe for social uprising and a turn towards communism, what with Russia breathing down everyone’s neck in Eastern Europe.  In the wake of WWII, Greece was the first post war country to have to put down such an uprising but it wasn’t going to be the last.  So, Marshall devised his economic recovery plan to prevent the other countries in Europe from going commie.   There is plenty of historical precedent for the overthrow of governments when poverty rises and effects the majority and it doesn’t take much to set off an angry mob.  Marshall needed to nip that in the bud.

Where am I going with this?  Oh, yeah.  I was going to write today about the PUMA movement and principles.  I believe that a successful movement is based on principles.  I also believe that we are at a time in our nation’s history when the public is so fed up with the two party system that there is a window of opportunity to make a real change and the political principles of either party aren’t as relevent at the present time.  Our social safety net in this country is so fragile that it only takes a couple of missed paychecks or a catastrophic illness to put a family into insolvency.  The steady erosion of our quality of life has happened under the auspices of both parties through deregulation, regressive taxation, union busting and the outright fraud perpetrated by the financial industry and their cronies in the business management field.  Before the election last year, we knew that the Republican party was morally bankrupt but who would have suspected before November 2008 that Democrats would also seek the path of least resistance and sell us out?  Well, *us*.  We believed it because we watched it happening in real time with our eyes wide open and our minds unclouded by propaganda. But now, many more people know it too.

In order to make change happen we need to threaten the current power structure.  By threaten I don’t mean by the use of any form of sabotage or physical violence.  I mean we have to make sure that our elected officials know that we will toss them out and then we must do it.  The question is how do we do this?

The answer is in motivating voters to go to the polls to vote out people who do not put the general welfare first.  The public doesn’t like Republicans, even if the GOP has been more successful at channeling the rage into tea parties.  But the GOP is not in power right now and as long as Democrats feel they are safe, they are going to try to ride this recession out without biting the hands that feed them.  But once Democratic voters start to turn their attention towards their own party, then there will be hell to pay.  The question is, can we engage people outside the Democratic party to join us?  Yes, I think we can.

I think we have all had the experience of knowing people who say they do not vote for any party.  They vote for the individual.  And this may be true, although I think some of these people are influenced by the last voice they hear on the way into the voting booth.  But the truth is that there are very few Democrats running for office who haven’t sworn to uphold the party machine that gets them elected.  And once you buy into this machine, your chances of balking at the money that flows to you is very slim.  Without that money, you can’t run.  But is this true?

If it is true that people vote for the individual, what is it they really want?  I would say that most people want to be treated fairly.  They want to feel like they have as much right to representation as someone with wealth and connections.  The reason why people want fairness is because deep down inside, we Americans believe profoundly in promoting the General Welfare.  We believe that this country was founded because we wanted to be free from a power that did *not* see our General Welfare as important to its own survival.  Isn’t this the same situation we find ourselves in today?  The power is not a foreign one; it is homegrown.  But our welfare is completely incidental to its own.  We need to be rid of this power.

This is an idea that can potentially attract voters from many different political persuasions.  The recession is having a profound effect on Republicans no less than Democrats.  And when it comes right down to it, no one wants to see the end of Social Security.  Why?  Because it is an insurance policy against risk.  Now that Republican households are just as vulnerable as Democrats’, there are a lot more of us who want to keep it in a “lock box”.

We need to bring this home to Democrats in a very simple way, because, after all, THEY are the ones with the reins of power.  We need to primary as many of them as we can.  We need to register as Democrats again, find out what the local requirements are for Congress and Senate and just enter our names as an alternative to whoever is running as the blessed party candidate.  Getting our names on that primary ballot doesn’t take a party endorsement.  In fact, I wouldn’t expect one.  But in a primary, you don’t need to be known or popular or a politician to be an active citizen interested in public service.  Those of you who are unemployed can look forward to a nice salary and health benefits.  All you need to be is another name on that ballot under the Democratic party. Call yourself a PUMAcrat.  Throw some coffees and cocktail parties.  Then see what happens.

Now, there will probably be campaign ads against you saying you aren’t connected enough.  In this environment, that could be a plus.  There will be people digging up dirt about you and your family and your unpaid car registration.  Tell them those without sin can cast the first stone.  There will be people who will say you don’t know enough about the issues.  Um, if you are reading blogs instead of the mainstream media, you can run circles around anyone making that claim.

If we manage to upset some races around the country, it may put the fear of God into our party officials and the tide may turn in our favor.

If we don’t do it, we can look forward to social unrest.  It’s coming.  The financial aces who have been riding high on our 401K contributions are busily tunneling out our economy.  To them, it’s all global now.  What happens in the US is collateral damage as they race to the bottom chasing lower and lower labor costs.  It’s very short term thinking but they aren’t worried about it right now.  It is time to focus our elected officials’ attention.

It’s either reform now or socialism later.

Please Digg!! and Share!!

Add to FacebookAdd to DiggAdd to Del.icio.usAdd to StumbleuponAdd to RedditAdd to BlinklistAdd to TwitterAdd to TechnoratiAdd to FurlAdd to Newsvine

Belly Up to the Bar

battlestar-galactica-s04e19-someone-to-watch-over-me-3117-tigh-with-ellen-and-tory-in-joes-barThose of us who work for Big Satan, er, Pharma, are still waiting for the other shoe to drop.  And to make the anticipation of the pink slip even more dreadful than it already is, those of us over 45 will likely not find a job ever again.  It’s sort of like what happens as you get older and your pot resources dry up and blow away, except in this case, you *do* care whether you get up and go to work in the morning.

And while we’re all contemplating second careers being foist upon us, Obama has no doubt been hitting the private dinners and whispering sweet nothings about “entitlement reform” in the ears of the well connected.  When did all those years of socking away payroll taxes into social security become an “entitlement” anyway?  I mean, if I paid into it, aren’t I entitled to take it out when the time comes?  It sort of reminds me of the time my Dad complained that my Mom was taking up half the bed.  I mean, wasn’t she  entitled to half?

Well, no matter, spring is finally here in NJ.  It was bright and beautiful and it got up into the 70’s today after weeks of the dreariest, darkest, coldest spring weather ever.  I was feeling pretty good, what with all of the sunshine and the serotinin and endorphins from my afternoon workout.  Then I saw THIS.

I need a drink.

Have a seat at Joe’s bar.  Order a double and sit back and relax.

The Eagle flies on Friday. Saturday I go out to play, Sunday I go to church, that’s when I get down on my knees and I pray

I say, “Lord, have mercy.  Lord, Lord, Lord, have mercy on me.”

Set’em up, Joe.

Friday: Now, let me get this straight…

Outland by Berkeley Breathed

Outland by Berkeley Breathed

Goldman-Sachs (G-S) and AIG go to the government last fall for money.  Hank Paulsen, our former Treasury secretary is a former CEO of G-S.  AIG hires a new CEO because the old one was under fire.  The new one, Edward Liddy, takes up the thankless task for token compensation- and $3M dollars for sitting on the board of…

wait for it

…Goldman-Sachs.

Yes, this is the same G-S that produced the faniciful earnings statement that ingeniously did away with the month of December 2008.  Yep, didn’t exist.  You know that painfully awkward holiday dinner you spent with the fam?  Never happened.

This is the same G-S who miraculously “raised” $10B dollars so that it can now give back the TARP money that it got from the government.  And the reason they want to give it back is because they don’t want no stinkin’ government telling them how much money they can give their stellar executives in bonuses.  It’s not the American Way.  It’s unnatural.

But this very same G-S, whose bank board member, Edward Liddy now sits as head of AIG, was funneled mucho dinero from the last bailout from AIG to cover its losses while other investors were forced to take losses.  No conflict of interest there:

He has said that he considers his work at A.I.G. to be a public service, performed on behalf of the taxpayers, who ended up with nearly 80 percent of the insurance company. His goal is to dismantle the company and sell its operating units, using the proceeds to pay back the rescue loans. On Thursday, A.I.G. said it had sold its car insurance unit, 21st Century Insurance, to the Zurich Financial Services Group for $1.9 billion.

Along the way, Mr. Liddy has clearly disclosed that A.I.G. was serving as a conduit, with much of the rescue money passing through and ending up in the hands of A.I.G.’s trading partners.

Goldman has said in the past that it had collateral and hedges to reduce the risk of its exposure to A.I.G.

Still, his stake could represent a potential conflict and is likely to reignite questions about Goldman’s involvement in A.I.G., and about why taxpayer money was used to shield A.I.G.’s trading partners from losses, when asset values plunged everywhere and most investors suffered greatly.

Had A.I.G. simply declared bankruptcy, the financial institutions doing business with it would have ended up in court, as they did in the case of Lehman Brothers, fighting to get pennies on the dollar for their claims.

Instead, Goldman Sachs received $13 billion of the Federal Reserve’s rescue money to close out various contracts it had outstanding with A.I.G. It was one of the biggest beneficiaries of the government rescue.

Yes, Edward Liddy is performing a public service no less valuable than the social worker who handles hundreds of foster care cases or the firefighter or the friendly and helpful IRS phone support that helps you finish your tax return on time.  Surely, SURELY, Mr. Liddy deserves some respect for the sacrifices he is making on our behalf.

Simon Johnson is very concerned about the possible conflict of interest and the criminality of this setup.  He has some very Watergate-esque questions for these dedicated public servants:

According to the NYT report, Mr Liddy has an apparent conflict of interest.  Please answer these question as simply and directly as possible, because otherwise they will be repeated indefinitely.  When did Mr Liddy disclose this and to whom at the Federal Reserve Bank of New York (or to which other responsible government officials)?  What did Hank Paulson, then Secretary of the Treasury and former CEO of Goldman Sachs, know and when did he know it?

Tut=tut, Mr. Johnson.  You are behaving like these men are criminals.  Is that any way to speak to people who are doing us a favor in these troubled times?  Antitrust indeed!  These are our betters.  You’re British.  You understand noblesse oblige and upstairs/downstairs stuff better than we do.  Why can’t you just accept the natural order and show us Americans how it’s done?

Meanwhile, Paul Krugman is being a fricking crepe-hanger again and stamping all over everyone’s greenshoots.  It’s spring, Paul, fergawdssakes.  Go outside and smell the periwinkle.

Conflucians Say: The Good, the Bad and the Bankers

Which is which in the showdown scenario?:

Tune in tonight at 10PM EST for Conflucians Say where we’ll figure out whose gun is loaded and who digs.  That on PUMA United Radio (PURrrr)

Design a site like this with WordPress.com
Get started