There really are two Americas

While writing about the current economic melt down, I’ve mentioned that the douchebags on Wall Street that ran the economy into the ground operated under different rules than what we regular Americans do. The fact that the bankers want the taxpayer to pay for their toxic assets for a value more than the paper they are written on should be a clue. Columnist David Sirota points out even a more obvious example and one that seems to have removed the rose colored glasses from the masses, who have acted like they’ve never noticed this before. His column talks about the foundation of business – the contract.

Last month, the same government that says it “cannot just abrogate” executives’ bonus contracts used its leverage to cancel unions’ wage contracts. As The Wall Street Journal reported, federal loans to GM and Chrysler were made contingent on those manufacturers shredding their existing labor pacts and “extract(ing) financial concessions from workers.” In other words, our government asks us to believe that it possesses total authority to adjust contracts at car companies it lends to, and yet has zero power to modify contracts at financial firms it owns. This, even though the latter set of covenants might be easily abolished.

A government of men, not laws

That’s right. Contracts to pay bonuses to the douchebags who ran the economy into the ground were off limits while there is nothing wrong in throwing out labor contracts as a condition for automakers to get a loan.

Sirota also mentioned this double standard applied to mortgages:

Congressional Republicans have long supported the laws letting bankruptcy courts annul mortgage contracts for vacation homes. Those statutes help the shower-before-work clique at least retain their beachside villas, no matter how many of their speculative Ponzi schemes go bad. But for those who shower after work, it’s Adams-esque bromides against “absolving borrowers of their personal responsibility,” as the GOP announced it will oppose legislation permitting bankruptcy judges to revise mortgage contracts for primary residences.

It was equally unfunny when some talking head on CNBC recently noted that you couldn’t get anyone to run the financial industry for less than $250,000 a year. He forgot that the ones making that cash didn’t do a good job of it either. That’s why they are trying to snooker us into a bad deal on those toxic assets.

What happens when rich elitists get to decide on a budget for all Americans? We get the Senate version of the stimulus bill. *sigh*

Well, this week, the political elites who live in the Senate decided that we didn’t need to help the states,. our schools, or our health. The Senate version of the stimulus plan, the one needed to keep this country from driving over a cliff, removed $86 billion dollars of spending that would’ve had an immediate effect in the country – money to the states and education. Yes, the bubble returns to Washington. Douchebags!

Some of the listed cuts in the Senate version include:

$40 billion State Fiscal Stabilization
$16 billion School Construction
$7.5 billion of State Incentive Grants
$5.8 billion Health Prevention Activity
$1 billion Head Start/Early Start
$2.25 billion Neighborhood Stabilization

What the Senate’s cut: Funds for states and schools

Or as Senator Claire McCaskill (D-Missouri) said on her Twitter: Proud we cut over 100 billion out of recov bill.Many Ds don’t like it, but needed to be done.The silly stuff Rs keep talking about is OUT.

Yes, funding the states and education is silly stuff….. classy!

Paul Krugman (remember – the guy who is actually an economist and who won a Nobel Prize) said in his New York Times column:

Now the centrists have shaved off $86 billion in spending — much of it among the most effective and most needed parts of the plan. In particular, aid to state governments, which are in desperate straits, is both fast — because it prevents spending cuts rather than having to start up new projects — and effective, because it would in fact be spent; plus state and local governments are cutting back on essentials, so the social value of this spending would be high. But in the name of mighty centrism, $40 billion of that aid has been cut out.

What the centrists have wrought

And why did this happen? Krugman has an idea:

[C]entrism is a pose rather than a philosophy. And to support that pose, the centrists are demanding $100 billion in cuts in the economic stimulus plan — not because they have any coherent argument saying that the plan is $100 billion too big, not because they can identify $100 billion of stuff that should not be done, but in order to be able to say that they forced Obama to move to the center.

Appeasing the centrists

It is all about being bipartisan – you know where the minority party gets what it wants in full – even though they are in the minority. It’s the bizzaro Congress.

Meanwhile the Wall Street douchebags will be getting more money to spend on hookers and blow…. well does it really matter? They still don’t have any rules on the use of their bailout funds.

*sigh*

Why do Congressional Republicans hate America?

Well we know from their “leader” and gas bag Rush Limbaugh that he wants President Obama to fail. Now we find out that Congressional Republicans are being jackasses about the proposed stimulus bill. The question is why? It’s because the 2010 elections are coming up and Republicans think they can get elected again if the attempt to save America is defeated or damaged enough not to work. They want President Obama to fail too. I think it is nothing but petty bullshit from a party that has no idea how to help the struggling economy and were in fact responsible for screwing the hooch in the first place.

The Republican playbook is about standing in opposition, knowing full well that the Democratic Congress is going to pass a stimulus package. Their next step is to go home and sell to what’s left of their constituencies the notion that if we had listened to them, things would be far rosier. As a minority, a control group is unlikely to emerge that can disprove false numbers based on false rhetoric. They can go back and campaign in two years whether or not Obama’s plan creates anywhere close to the number he hopes and tell the world, and claim that their plan would have provided double the number.

The minority role in government should be about balancing the need of their constituencies with real ideas that create a stronger way of finding a solution. In the modern era of politics Rush Limbaugh style, it is all about spewing hate and misinformation in the guise of governing for the good of the people. The very people that the Obama plan will help most, are the very same people that are being preached to by the likes of Limbaugh and his puppets in Congress. 

Republicans Clearly Are Willing to Let This Country Collapse if They Think it Will Win Them Elections

And the media – also known as the Villagers – come along for the fire sale because…. well because they are so insulated in their little GOP controlled bubbles, they think spewing discredited GOP talking points is being objective.

The networks like to have the same tired debate format with the same hired analysts debating with “sound and fury” that usually “signifies nothing” to most of America. Last week the media chose to have Republicans like John Boehner, who helped create the situation we’re in, dominate the airwaves, which does nothing but muddy up the discussion on our rapidly failing economy. And which leads Villagers like Chuck Todd to proclaim that Republicans have won the spin wars. It’s a “spending bill” now.

Why is it called a “spending bill”? Because the Villagers have decided that the Republicans have won the PR war over the stimulus package. How does that tired argument help this country in a time of crisis? I know the spin wars play a role when messaging is concerned because Americans get a lot of their news through the TV and the elitists get aroused by all this nonsense, but it’s killing us. Please Stop It. C&L has often documented how the media tries to elect our politicians, (They chose Bush over Gore, How did that work out?) but now they are trying to decide how this very important stimulus package will be dealt with.

Please, where’s the meat? Stop playing games with our lives. Put people on who can explain it coherently. Economics is complicated. Sound bites aren’t enough. Obama was elected to bring change to the economy, not to debate the merits of tax cuts all over again. We had that discussion for 18 months and Obama won. Tax cuts lost. Why is the media ignoring that fact? John McCain ran on tax cuts to save us and he lost. Now he’s telling his supporters that he’s going to vote NO on the stimulus plan and wants them to sign a petition. You lost the election badly. Democrats have solid majorities everywhere you look, but not when it comes to the media that is supposed to inform us and not play “spin wars’ with the country. 

Why aren’t there hundreds of economists on my TV explaining the stimulus package?

So how does that go again – the media has a liberal bias???? Excuse me while I laugh.

The fact is 1 or 2% of the proposed plan might be considered “pork” – that is not directly related to stimulus spending – yet that tiny portion of an 800 billion plus bill is getting 90% of the focus along with more talk about a worse plan like more tax cuts.

At least there is one Democrat with a spine to tell the truth and get airtime at the same time:

In the past few days, I’ve heard criticisms that this [stimulus] plan is somehow wanting, and these criticisms echo the very same failed economic theories that led us into this crisis in the first place, the notion that tax cuts alone will solve all our problems, that we can ignore fundamental challenges like energy independence and the high cost of health care, that we can somehow deal with this in a piecemeal fashion and still expect our economy and our country to thrive.

I reject those theories. And so did the American people when they went to the polls in November and voted resoundingly for change.

President Obama

I know we will have a stimulus bill passed but I fear it might be watered down too much because the Dems missed the PR boat.

Shocker! US House Republicans vote against stimulus bill

Just like knowing an episode of the TV show Three’s Company would involve a misunderstanding of some kind, Republicans in the US House voted against the $825 billion stimulus bill put forward by President Obama and the Democrats. This was even after Obama wined and dined them to join the cool kids hoping to save America. Instead they crapped in the leftovers and kicked the dog. Yes, classy.

Of course those of us outside the beltway bubble saw it coming especially after seeing video of House Minority Leader John Boehner giving his views on the plan:

What? Couldn’t understand him? Does it really matter?

The Democrats have the majority and the White House and they tried to bring the GOP along for the ride. They even threw some bones to them but again they crapped in the leftovers and kicked the dog.

America’s newest douchebag: John Thain

Most Americans may not know who John Thain is but what he did to tax payers and the Bank of America should be criminal. He got the compensation committee of Merrill Lynch to pay out $3 to 4 billion in bonuses a month ahead of the scheduled time right before Bank Of America closed a deal to buy the company. Merrill Lynch was one of the financial companies that was close to failing before the bail out program was started in the fall.

The Financial Times reports today that in early December, Merrill, which months earlier had agreed to be bought — rescued, really — by Bank of America, decided to pay out $3-4 billions in bonuses.

The bonuses were handed out on an accelerated schedule — at least a month earlier than in previous years. And they ere agreed to just days before Bank of America, realizing how much in toxic assets Merrill had on its books, went to the federal government asking for more taxpayer money to help it digest Merrill — money that was eventually forthcoming.

One equity analyst told MarketWatch that the move, apparently initiated by then-Merrill CEO John Thain, was “simply outrageous and one of the more extreme examples of poor corporate governance we can think of.”

Merrill Paid Billions In Bonuses, As New Owner Sought More Bailout Dollars

Once again….. [*sigh*]