We tried courteous. We tried inviting. We tried group hug. What'd we get?

The same pit bull Republican extremism that got us into this mess. Okay. Plan B. Time to take the gloves off and take these petulant corpses to task.

"Corpses" because that's what they are. The walking dead. The Republican Party is utterly out of ideas, hope, vigor and the stamina needed to pull this country through her critically dangerous hour of economic peril. Their leaders are codgy, ghost white advertisements for funeral home makeup....Mitch McConnell? John McCain? John Boehner? Newt Gingrich? Tired relics of nearly two decades of failed financial Darwinism. Wallowing in the bitterness of defeat, this whole crew knows they likely won't live long enough to see their worldviews ever regain prominence. It's their leafless, cracking dried up tree, and they despise the fact that they're sitting in it. Their solutions are as dead as Milton Friedman, and so are they. It's just that no one bothered to tell the oxygen in their lungs.

Labels: bloggers, Randi Rhodes

Labels: Marc Maron, Sam Seder, weight

Labels: blogwhoring

"When a pitcher is having trouble getting players out, when a hitter is having trouble hitting, or when a player makes an error, I try to support them in whatever way I can. I don't run to the media to belittle them or to draw more attention to their difficult times. I can only hope that one day those teammates who have found it convenient to criticize me will realize that we are all in this together. If only we can concentrate more on the games than complaining and bickering and pointing fingers, we would all be better off."

Howard Dean is not going to be the next Secretary of Health and Human Services.

As best as I can tell, White House Chief of Staff Rahm Emanuel is not about to let Dean in the same zip code, let alone the same branch of government. That is the political reality.

Still, writers should do more than reflect the political reality. They should try to change it--or, at least, explain why it's flawed. With that in mind, here are two very key assets that Dean would bring to the job--the job, I know, he'll never have.

The first is management ability. Ever since Tom Daschle withdrew his name from consideration for HHS Secretary, most of the discussion hs focused on what it meant for the president's health reform agenda. Daschle was a gifted communicator and deft political operator. Everybody wants to find a replacement who has those skills. Dean doens't have them.

But it's not essential that the HHS secretary be one of the key players, privately or publicly, on health reform. Other advisers and officials can take up that role, as can the president himself.

On the other hand, it is essential that the HHS secretary take charge of an agency with wide-ranging responsibilities, a vast bureacracy, and a recent history of neglect. Head Start is part of HHS. So are the Centers for Disease Control along with the Food and Drug Administration, two agencies that represent our first line of defense against disease. For the last eight years, they've struggled under an administration that, at best, ignored them and, at worst, used them to advance a socially conservative agenda.

The next HHS Secretary must do better. And one way (albeit not the only way) to guarantee that is to find somebody with a proven track record of managing organizations that work on health care. As the five-term governor of Vermont, Dean did exactly that. And while Vermont is a tiny state, the record he complied there was exemplary, not just on health insurance but on the whole range of issues dealing with human welfare.

Don't forget, too, that Dean showed pretty good management skills--not to mention judgment--at the Democratic National Commitee. With virtually no support from the political establishment, which held him in nearly universal disdain, Dean was true to his vision and--because of that--helped build a grassroots network that's paying real political dividends today. (Anybody laughing about the 50-state strategy now?)

Labels: assholes, Rahm Emanuel, sleaze

Defense contractor KBR Inc. has been awarded a $35 million Pentagon contract involving major electrical work, even as it is under criminal investigation in the electrocution deaths of at least two U.S. soldiers in Iraq.

The announcement of the new KBR contract came just months after the Pentagon, in strongly worded correspondence obtained by The Associated Press, rejected the company's explanation of serious mistakes in Iraq and its proposed improvements. A senior Pentagon official, David J. Graff, cited the company's "continuing quality deficiencies" and said KBR executives were "not sufficiently in touch with the urgency or realities of what was actually occurring on the ground."

"Many within DOD (the Department of Defense) have lost or are losing all remaining confidence in KBR's ability to successfully and repeatedly perform the required electrical support services mission in Iraq," wrote Graff, commander of the Defense Contract Management Agency, in a Sept. 30 letter.

Graff rejected the company's claims that it wasn't required to follow U.S. electrical codes for its work on U.S. military facilities in Iraq. KBR has said it would cost an extra $560 million to refurbish buildings in Iraq used by the U.S. military, including Saddam Hussein's palaces, which among other problems are based on a 220-volt standard rather than the American 120-volt standard.

KBR announced last week it won a new $35.4 million contract from the Army Corps of Engineers to design and build a convoy support center at Camp Adder in southern Iraq. It will include a power plant, electrical distribution center, water purification and distribution systems, wastewater and information systems and road paving.

Sen. Byron Dorgan, D-N.D., said the new KBR contract was inappropriate. Sen. Bob Casey, D-Pa., said he has formally asked the Corps of Engineers whether it was confident KBR could accomplish it and whether the Corps had any alternatives.

"This is hardly the time to award KBR a new contract for work they've already failed to perform adequately, and which put U.S. soldiers at even greater risk," Dorgan said in a statement. "Ultimately, contractors must be held accountable, and so should those who continue to award these contracts."

Labels: assholes, corruption, economic death watch, Greedy Republican Bastards, idiocy, KBR

Labels: Howard Dean

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

Total Reductions: $80 billion

Eliminations:

Head Start, Education for the Disadvantaged, School improvement, Child Nutrition, Firefighters, Transportation Security Administration, Coast Guard, Prisons, COPS Hiring, Violence Against Women, NASA, NSF, Western Area Power Administration, CDC, Food Stamps

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

Reductions:

Public Transit $3.4 billion, School Construction $60 billion

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

Increases:

Defense operations and procurement, STAG Grants, Brownfields, Additional transportation funding

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

Labels: Democratic sellouts, economic death watch, Greedy Republican Bastards, just another outrage, spinelessness

NAPLES — It was a girl.

Doctors removed the dead fetus from Joan Laurel Small on Thursday, a day after her release from the Collier County jail.

The 22-year-old mother cradled baby “Elena Laurel.” Nurses cut a lock of the baby’s hair for a keepsake.

“They cleaned her up and allowed her to hold her,” said Small’s mother, Jennifer Graeber of New Jersey. “The hospital is making her a little remembrance book. They’re putting in a lock of the baby’s hair.”

Graeber said when her daughter arrived at The Birth Place at NCH North Naples Hospital, her blood-pressure had risen and she had a fever.

“That’s the beginning signs of septic shock,” Graeber said of leaving a dead fetus inside a mother.

Because the baby had been left in her womb more than a day, she said, Small could not deliver the baby, but had to undergo a C-section.

[snip]

She’d been held since Dec. 22 after she violated probation by returning home after her nightly 10 p.m. curfew. Small said she’d been attending a parenting class in Naples and couldn’t get a ride home; she has no car. Records show the probation violation involved a 2007 drug charge; an adjudication of guilt was withheld. It’s her only criminal conviction and records show it occurred when she was caught with drugs in the car of her former husband, Ken Enright Small, during a traffic stop; his record includes drug convictions.ock,” Graeber said of leaving a dead fetus inside a mother.

Labels: casualties of conservative "values", drug war, just another outrage, misogyny

President Barack Obama had to face tough questioning from the media this week over his process for choosing his top advisers after Tom Daschle and Nancy Killefer withdrew their nominations for failing to pay back taxes. But Americans' support for Obama is hardly shaken, with fewer than one in five saying they are less confident now in Obama's ethical standards and his ability to manage the government than they were before he took office. A majority say they are "more confident" in both regards.

[snip]

Most of those who say they now have less confidence in Obama are Republican identifiers. Thus, a great number of those who claim to be affected in a negative way probably did not have a great deal of confidence in Obama to begin with.

Additionally, the president's 65% job approval rating in Feb. 2-4 Gallup Poll Daily tracking is essentially the same as it has been throughout his brief time in office.

Labels: polls, President Barack Obama

In recent months, American Express has gone far beyond simply checking your credit score and making sure you pay on time. The company has been looking at home prices in your area, the type of mortgage lender you’re using and whether small-business card customers work in an industry under siege. It has also been looking at how you spend your money, searching for patterns or similarities to other customers who have trouble paying their bills.

In some instances, if it didn’t like what it was seeing, the company has cut customer credit lines. It laid out this logic in letters that infuriated many of the cardholders who received them. “Other customers who have used their card at establishments where you recently shopped,” one of those letters said, “have a poor repayment history with American Express.”

It sure sounded as if American Express had developed a blacklist of merchants patronized by troubled cardholders. But late this week, American Express told me that wasn’t the case. The company said it had also decided to stop using what it has called “spending patterns” as a criteria in its credit line reductions.

“The letters were wrong to imply we were looking at specific merchants,” said Susan Korchak, a company spokeswoman. The company uses hundreds of data points in making its decisions, she said, adding that the main factor in determining credit lines “has always been and still is the overall level of debt, relative to the card member’s financial resources.”

The company will still have plenty of other data to judge your creditworthiness, though. American Express executives have spoken candidly to investors and analysts about its deep dives into your data.

Labels: chutzpah, credit card industry, scumbaggery, sleaze

Collins Friday morning circulated a roster proposing $88 billion worth of net cuts from the measure. She proposed eliminating money in the bill for K-12 education while boosting funding for Pentagon operations, facilities and procurement by $13 billion.

Somehow, Washington has lost any sense of what’s at stake — of the reality that we may well be falling into an economic abyss, and that if we do, it will be very hard to get out again.

It’s hard to exaggerate how much economic trouble we’re in. The crisis began with housing, but the implosion of the Bush-era housing bubble has set economic dominoes falling not just in the United States, but around the world.

Would the Obama economic plan, if enacted, ensure that America won’t have its own lost decade? Not necessarily: a number of economists, myself included, think the plan falls short and should be substantially bigger. But the Obama plan would certainly improve our odds. And that’s why the efforts of Republicans to make the plan smaller and less effective — to turn it into little more than another round of Bush-style tax cuts — are so destructive.

So what should Mr. Obama do? Count me among those who think that the president made a big mistake in his initial approach, that his attempts to transcend partisanship ended up empowering politicians who take their marching orders from Rush Limbaugh. What matters now, however, is what he does next.

It’s time for Mr. Obama to go on the offensive. Above all, he must not shy away from pointing out that those who stand in the way of his plan, in the name of a discredited economic philosophy, are putting the nation’s future at risk. The American economy is on the edge of catastrophe, and much of the Republican Party is trying to push it over that edge.

Labels: Great Depression, Joe Scarborough, Paul Krugman, punditry, The Second Great Depression

Catastrophe, mind you. So much for the president who in his inaugural address two weeks earlier declared "we have chosen hope over fear." Until, that is, you need fear to pass a bill.

And so much for the promise to banish the money changers and influence peddlers from the temple. An ostentatious executive order banning lobbyists was immediately followed by the nomination of at least a dozen current or former lobbyists to high position. Followed by a Treasury secretary who allegedly couldn't understand the payroll tax provisions in his 1040. Followed by Tom Daschle, who had to fall on his sword according to the new Washington rule that no Cabinet can have more than one tax delinquent.

Labels: wingnuttia

News Corp., the global media giant controlled by Rupert Murdoch, said Thursday it lost $6.4 billion in its most recent quarter because of a massive write-down in the value of its assets.

The New York-based company, which owns The Wall Street Journal and the Fox broadcast network, also forecast a 30 percent drop in operating profits for the fiscal year to June from a year ago, when it earned $5.13 billion.

The forecast was a sharp downgrade from November when it expected "low to mid-teens" percentage drop for the year.

News Corp. shares shed 55 cents, or 7.4 percent, to $6.90 in after-hours trading.

Labels: economic death watch, Rupert Murdoch, wingnuttia

Somehow, Washington has lost any sense of what’s at stake — of the reality that we may well be falling into an economic abyss, and that if we do, it will be very hard to get out again.

It’s hard to exaggerate how much economic trouble we’re in. The crisis began with housing, but the implosion of the Bush-era housing bubble has set economic dominoes falling not just in the United States, but around the world.

Consumers, their wealth decimated and their optimism shattered by collapsing home prices and a sliding stock market, have cut back their spending and sharply increased their saving — a good thing in the long run, but a huge blow to the economy right now. Developers of commercial real estate, watching rents fall and financing costs soar, are slashing their investment plans. Businesses are canceling plans to expand capacity, since they aren’t selling enough to use the capacity they have. And exports, which were one of the U.S. economy’s few areas of strength over the past couple of years, are now plunging as the financial crisis hits our trading partners.

Meanwhile, our main line of defense against recessions — the Federal Reserve’s usual ability to support the economy by cutting interest rates — has already been overrun. The Fed has cut the rates it controls basically to zero, yet the economy is still in free fall.

It’s no wonder, then, that most economic forecasts warn that in the absence of government action we’re headed for a deep, prolonged slump. Some private analysts predict double-digit unemployment. The Congressional Budget Office is slightly more sanguine, but its director, nonetheless, recently warned that “absent a change in fiscal policy ... the shortfall in the nation’s output relative to potential levels will be the largest — in duration and depth — since the Depression of the 1930s.”

[snip]

Would the Obama economic plan, if enacted, ensure that America won’t have its own lost decade? Not necessarily: a number of economists, myself included, think the plan falls short and should be substantially bigger. But the Obama plan would certainly improve our odds. And that’s why the efforts of Republicans to make the plan smaller and less effective — to turn it into little more than another round of Bush-style tax cuts — are so destructive.

So what should Mr. Obama do? Count me among those who think that the president made a big mistake in his initial approach, that his attempts to transcend partisanship ended up empowering politicians who take their marching orders from Rush Limbaugh. What matters now, however, is what he does next.

It’s time for Mr. Obama to go on the offensive. Above all, he must not shy away from pointing out that those who stand in the way of his plan, in the name of a discredited economic philosophy, are putting the nation’s future at risk. The American economy is on the edge of catastrophe, and much of the Republican Party is trying to push it over that edge.

First, note that Japan made many policy mistakes that the US should and could avoid: it cut policy rates two years after the bust of its asset bubble while the US eased monetary policy aggressively after August 2007; it went into QE (quantitative easing) reversed ZIRP (zero interest rate policy) too slowly; it waited two years after the bursting of its bubbles to do a fiscal stimulus (and reversed it too early with a consumption tax) while the US did one – albeit a failed one – last year and is doing another large one now; it created a convoy system of zombie banks and corporate that were restructured too late while the US may become more aggressive in cleaning up the financial system; it had structural rigidities – like lifetime employment – that slowed down the adjustment while the US has flexible labor markets (with workers moving fast to new sectors/regions where there are jobs once they lose one).

But in many dimensions the U.S. started its financial and economic crisis in a much worse shape than Japan. Indeed, Japan was in much better macro and financial shape than the US before and during its stagnation: high household and national savings and low leverage of the household sector, large current account deficit, net foreign asset position that allowed it to finance its large fiscal deficit during the stagnation via domestic savings. The US instead has had near zero household savings and massive leverage for years, large current account deficits and is the largest net foreign debtor in the world, thus relying on the kindness of strangers or, better, on the kindness of its strategic rivals (China, Russia) or unstable petro-states to finance its twin fiscal and current account deficits.

And the US may make some of the same mistakes as Japan and suffer of similar macro policy constraints that may limit the ability to resolve the financial crisis in a more rapid manner. First, monetary policy – however aggressive – is like pushing on a string when you have a glut of capacity and credit/insolvency rather than just illiquidity problems. Second, fiscal policy has its limits in a worlds where you are already the biggest net debtor and net borrower in the world and where you need to borrow this year $2 trillion net ($2.5 trillion gross) to finance your fiscal deficit while every other country (including your traditional lenders/creditors) are now running large fiscal deficits with the risk of a sharp back-up in long-term interest rates once the tsunami of new US Treasuries hits the market (see the back-up in Treas yields in the last 10 days and the scary signal it sends about coming dislocations in the US Treasuries market). Third, the US is taking an approach to bank recap and clean-up that looks more like Japan (convoy system and delayed true clean-up as the necessary pain to shareholders and unsecured creditors of banks is avoided/delayed) than the successful Swedish outright takeover/nationalization process. Fourth, the market friendly approach case-by-case approach to the necessary debt reduction of insolvent private non-financial agents (corporate for Japan, households for the US) will be too slow as working out one household at the time the debt overhang of 15 million insolvent households will take years when a systemic debt overhang requires an across the board debt reduction (as in Mexico and Argentina) that is not politically feasible – so far – in the US.

Labels: economic death watch

Ginsburg, 75, has been a justice since 1993. She has been increasingly vocal in recent years about the court's more conservative stances, especially after the appointments made by President George W. Bush.

Pancreatic cancer is often deadly, although the court said doctors apparently found Ginsburg's growth at an early stage.

In 1999, she had colon cancer surgery, underwent radiation and chemotherapy, and never missed a day on the bench. Statistics suggest this could be a tougher fight.

Ginsburg underwent the surgery at the Memorial Sloan-Kettering Cancer Center in New York. She will remain in the hospital for seven to 10 days, said her surgeon, Dr. Murray Brennan, according to the court. The justices hold their next private conference on Feb. 20 and return to the bench from their winter break on Feb. 23.

President Barack Obama expressed hope for her speedy recovery, White House press secretary Robert Gibbs said Thursday, and offered his thoughts and prayers.

Labels: Supreme Court

But, aside from protecting Wall Street and Zionism, Emanuel has no real ideological objectives. He's a process guy, not a policy guy. People who do care about policy-- like health care, for example-- might be giving the president different advice than what's he's being offered by Emanuel. We're hearing every disastrous reform-killing name you can think of from the HMO Industry's Dollar Bill Frist and puffed-out elitist Newt Gingrich to Tennessee's reactionary quasi-Democratic Governor Phil Bredesen. And then there are the decent, if not stellar, candidates like Kansas Governor Katheen Sebelius and Oregon ex-Governor John Kitzhaber. And Howard Dean, the logical choice? What about him? Just Emanuel's scream in the night and threat to hold his breath 'til he turns blue (not a bad idea).

Labels: bloggers, Rahm Emanuel, scumbaggery

Labels: Dick Cheney

It seems safe to say that the 2010 census was not weighing on the president’s mind, though it should have been.

The Census Bureau is a major agency within the Commerce Department, and the decennial census — the next one is in 2010 — is a mammoth undertaking. After years of mismanagement and underfinancing by the Bush administration, the bureau is so ill prepared to conduct next year’s count that Congressional investigators have warned that it is at high risk of failure unless corrective action is taken immediately.

Mr. Gregg was never a friend of the census. As chairman of the Senate committee that oversees the Commerce Department’s budget, he frequently tried to cut the bureau’s financing. In 1999, he opposed emergency funds for the 2000 census requested by President Bill Clinton and the Republican-controlled House.

The census is used to allocate federal aid to states and draw electoral districts. Given all that, one would think that the White House would be paying more attention. It isn’t.

Labels: Democratic sellouts

Responding to an extraordinary burst of global outrage, especially in Pope Benedict XVI’s native Germany, the Vatican for the first time on Wednesday called on a recently rehabilitated bishop to take back his statements denying the Holocaust.

Late last month, the pope revoked the excommunications of four schismatic bishops from the ultraconservative Society of St. Pius X, including Bishop Richard Williamson, a Briton, who in an interview broadcast last month denied the existence of the Nazi gas chambers.

In a statement issued Wednesday, the Vatican Secretariat of State said that Bishop Williamson “must absolutely, unequivocally and publicly distance himself from his positions on the Shoah,” or Holocaust, or else he would not be allowed to serve as a bishop in the Roman Catholic Church.

Labels: Anti-Semitism, Pope Benedict

Labels: bloggers, Digby, President Barack Obama

Labels: economic death watch, FDA, food industry, tragedy, You can't make this shit up

Labels: Air America, Marc Maron, Sam Seder

Labels: assholes, hack journalism, idiocy, punditry

On 9/11, President Bush learned of disaster while reading “The Pet Goat” to grade-school kids. On Tuesday, President Obama escaped from disaster by reading “The Moon Over Star” to grade-school kids.

“We were just tired of being in the White House,” the two-week-old president, with Michelle at his side, explained to students at a public charter school near the White House.

Even as he told the children his favorite superheroes were Batman and Spider-Man, his own dream of being the superhero who swoops in to swiftly save America was going SPLAT!

It just ain’t that easy.

Unlike W. and Dick Cheney, who heroically resisted acknowledging their historically boneheaded mistakes, President Obama summoned a conga line of Anderson, Katie, Brian, Chris and Charlie to the Oval Office to do penance, over and over.

“I think I messed up. I screwed up,” he confessed to Couric.

He told the anchors that the man who helped make him president, Tom Daschle, had made “a serious mistake” by not paying taxes on a car and driver. (It should have been a harbinger of doom when Daschle began sporting those determined-to-be-hip round red glasses.)

Mr. Obama admitted that “ultimately it’s important for this administration to send a message that there aren’t two sets of rules. You know, one for prominent people and one for ordinary folks who have to pay their taxes.”

It took Daschle’s resignation to shake the president out of his arrogant attitude that his charmed circle doesn’t have to abide by the lofty standards he lectured the rest of us about for two years.

Labels: icepick meet forehead, idiocy, Maureen Dowd, Pardon Me While I Puke, punditry

Labels: bloggers, mainstream media

Labels: economic death watch, President Barack Obama, so-called free market

Coming off a shellacking at the polls in November, the plurality of GOP voters (43%) say their party has been too moderate over the past eight years, and 55% think it should become more like Alaska Governor Sarah Palin in the future, according to a new Rasmussen Reports national telephone survey. Just 24% think failed presidential candidate John McCain is the best future model for the party, and 10% are undecided.

Only 17% of Republican voters say their party has been too conservative, and 30% say its actions and positions have been about right, with nine percent (9%) not sure.

The only thing sadder than the GOP's leadership deficit is its ideas deficit, and the two afflictions are related. Imagine if, as RNC head, Steele got together with other party mavericks (if they exist) to draft a stimulus package he thought might actually reach African-American and working-class voters, one that didn't rely merely on the voodoo of tax cuts but also included stimulus spending that would put unemployed and underemployed workers in new jobs. I'm not saying it would work, but it would be interesting to hear a pragmatic GOP alternative. Instead Steele's just another Republican talking head mouthing "tax cuts, tax cuts" like a zombie, while the economy continues to shed jobs and the nation heads for harder times. Similarly over the weekend, GOP Sen. Jim DeMint was absolutely stomped on ABC's "This Week," with not only Barney Frank but also with corporate chieftains blasting his assertion that only tax cuts can create jobs.

"We have to decide if we want to be a free market economy and let the money stay there or be a government-directed economy, which is where we're headed with this plan," DeMint argued. FedEx CEO Fred Smith countered: "No question about it, the infrastructure of the country has been underfunded for a long time ... it certainly would be a wise thing to invest in all kinds of infrastructure," while Google CEO Eric Scmidt came back with: "I'm worried that tax cuts alone won't work because people are not paying any taxes because they're not making any money."

Still, the stimulus fight is tougher than it should be for Democrats. Clearly the best ally the Republicans have is the economic illiteracy of the pundit class in America. I'm watching NBC's Chuck Todd say the Democrats have lost the "message war" over the stimulus, because it's now just seen as a "spending bill." There's no way for a stimulus bill not to be a spending bill; the point is that the economy is such a wreck the government becomes the spender of last resort. This had merely been a stupid GOP talking point until 10 minutes ago; now it's becoming a stupid media talking point. Funny how that works.

Meanwhile, this morning MSNBC's Joe Scarborough began railing about how the plan's rebates to working people who don't earn enough to pay income taxes (though they do pay sales, payroll and property taxes) amount to "socialism." Let's get this straight: It's socialism when government gives money to workers whose jobs don't pay enough to keep them out of poverty, but it's not socialism when the government bails out greedy, failed banks? I guess not, especially if the bailout forces don't impose limits on executive compensation or play a role in managing the bailed-out enterprises. That's actually called lemon socialism, as Paul Krugman notes, in which "taxpayers bear the cost if things go wrong, but stockholders and executives get the benefits if things go right." Obama knows better than that.

Labels: greed, idiocy, Republicans, Rush Limbaugh, Sarah Palin, willful ignorance

Mr. Daschle’s tax shortfall is particularly troubling because it comes on the heels of another nominee’s failure to pay taxes due. We were not pleased when the president’s Treasury secretary, Timothy Geithner, admitted that he had failed to pay tens of thousands of dollars in federal self-employment taxes while working for the International Monetary Fund despite having signed paperwork acknowledging the obligation.

Now we are confronted with an even larger lapse by Mr. Daschle, who failed to pay $128,000 in taxes, primarily for personal use of a car and driver provided to him by a private equity firm for which he consulted. Although the firm — headed by a major Democratic donor — had not issued a form 1099 for the value of the car service, Mr. Daschle said he became concerned last June that he might owe taxes on it and instructed his accountant to investigate. Neither was concerned enough to actually pay the taxes.

Only after the Obama transition team flagged unrelated tax issues that would require filing amended returns did Mr. Daschle and his accountant address the need to report the personal use value of the car service — more than $255,000 over three years — as income. Only after he had been chosen to be the health secretary did Mr. Daschle tell the transition team about the unpaid taxes. He paid some $140,000 in back taxes and interest on Jan. 2 to settle several tax problems — and he acknowledges owing more.

In both the Geithner and Daschle cases, the failure to pay taxes is attributed to unintentional oversights. But Mr. Daschle is one oversight case too many. The American tax system depends heavily on voluntary compliance. It would send a terrible message to the public if we ignore the failure of yet another high-level nominee to comply with the tax laws.

Labels: idiocy, taxes, Tom Daschle

Even before the recession, owners of the smallest businesses had struggled to absorb the inexorable annual rise in health premiums. The share of firms with fewer than 10 workers that offer health benefits has declined by 16 percent since 2001, to 49 percent, according to an annual survey by the Kaiser Family Foundation and the Health Research and Educational Trust, while the rate in larger firms essentially stayed flat.

The economic downturn has only accelerated the pressure on small-business owners to pinch every penny, and many feel they have few options but to go after employee health coverage.

Surveys suggest that rising premiums have prompted more than half of small businesses to reduce benefits, raise deductibles or require workers to shoulder a larger share of an ever more expensive pie.

Workers in firms with fewer than 25 workers are now twice as likely to be uninsured as those in larger firms, according to the Employee Benefits Research Institute. For those small-business employees who do have insurance, the share with high deductibles has more than doubled in the last two years.

Yet for many small-business owners, it can be excruciating to reduce or eliminate benefits for employees who have long been treated as family and who continue to work at their sides, every day.

“When it’s a small business, it’s personal, and the impact is more emotional,” Ms. Allen said. “It’s not just about dollars and cents. These are actual people, and they’re very important to me. And I care about them.”

With the help of her insurance broker, Ms. Allen is exploring whether her employees could afford individual health policies if she provided them with stipends equal to about half of what she now pays for their health care. She is also researching whether it may make sense to shift her workers to a personnel leasing firm with more affordable group coverage, and then rent them back.

With her current insurance policy up for renewal on April 1, the clock is ticking.

“Either way, I’m going to make sure they have coverage,” said Ms. Allen, whose sales were stagnant in 2008 after two years of exponential growth. “That’s very important — to make sure they don’t feel I’m just cutting expenses and pulling the rug out from under them.

Labels: health care

The Coleman team appears to be laying out a continued strategy of casting doubt on the legitimacy of the Minnesota election result by pointing to a fundamental underlying idea of this dispute: The margin of error is simply too big in a race this close.

"Is there some point at which the margin of error is just too wide compared to the difference in votes to determine who truly won?" Coleman lawyer John Rock asked Ramsey County (St. Paul) elections director Joe Mansky. Mansky replied that there is absolutely such a point, with accuracy topping out at over 99.99%.

"All of which is pretty good," Mansky said. "But remember that one in every thousand is not an issue when somebody wins by 200,000 votes. When they win by 200 votes, the margin of error in our computation is likely large enough to have an impact on our result, and I think that's the situation that we find ourselves in here."

Of course, this opens up the question of how Coleman could justify any finding of a win for himself, since even a mathematically possible Coleman victory margin would be too narrow for these purposes. At this point we're looking at Nate Silver's hypothesis, that Coleman might be aiming for a do-over election as a possible outcome.

Labels: 2008 election, Norm Coleman, Republic Party

Labels: bloggers

Alaska budget reserve suffers billion-dollar loss

Because Department of Revenue officials plowed a big chunk of the Constitutional Budget Reserve into stocks shortly before the meltdown started, the state suffered the same kind of stinging losses many Americans have experienced in their personal retirement portfolios.

Revenue officials, as well as state legislators who encouraged the stock investments in hopes of generating bigger profits, acknowledge their timing was dreadful.

But they're hoping the market rebounds in coming years and the bet pays off over the long haul.

Others say they're concerned about further losses for the budget reserve, which legislators might have to tap as soon as this year to help balance the state budget.

"Are we still at risk for going down the tubes further?" asked Rep. Harry Crawford, an Anchorage Democrat and member of the House Finance Committee.

[snip]

During last year's legislative session, lawmakers had a huge stack of surplus dollars on hand because of a run of record-high oil prices, so they put more than $4 billion into the Constitutional Budget Reserve as savings.

Instead of parking the money in the reserve's conservative investment account, it was shifted to a subaccount that's invested more aggressively in stocks.

That subaccount had a market value of about $4.5 billion in the summer. But with the stock market crash, its value has plunged to $3.5 billion -- meaning a $1 billion loss, said Jerry Burnett, the state's deputy revenue commissioner.

Labels: economic death watch, incompetence, Sarah Palin

“We have a financial system that is run by private shareholders, managed by private institutions, and we’d like to do our best to preserve that system,” says Timothy Geithner, the Treasury secretary — as he prepares to put taxpayers on the hook for that system’s immense losses.

Meanwhile, a Washington Post report based on administration sources says that Mr. Geithner and Lawrence Summers, President Obama’s top economic adviser, “think governments make poor bank managers” — as opposed, presumably, to the private-sector geniuses who managed to lose more than a trillion dollars in the space of a few years.

And this prejudice in favor of private control, even when the government is putting up all the money, seems to be warping the administration’s response to the financial crisis.

Now, something must be done to shore up the financial system. The chaos after Lehman Brothers failed showed that letting major financial institutions collapse can be very bad for the economy’s health. And a number of major institutions are dangerously close to the edge.

So banks need more capital. In normal times, banks raise capital by selling stock to private investors, who receive a share in the bank’s ownership in return. You might think, then, that if banks currently can’t or won’t raise enough capital from private investors, the government should do what a private investor would: provide capital in return for partial ownership.

But bank stocks are worth so little these days — Citigroup and Bank of America have a combined market value of only $52 billion — that the ownership wouldn’t be partial: pumping in enough taxpayer money to make the banks sound would, in effect, turn them into publicly owned enterprises.

My response to this prospect is: so? If taxpayers are footing the bill for rescuing the banks, why shouldn’t they get ownership, at least until private buyers can be found? But the Obama administration appears to be tying itself in knots to avoid this outcome.

If news reports are right, the bank rescue plan will contain two main elements: government purchases of some troubled bank assets and guarantees against losses on other assets. The guarantees would represent a big gift to bank stockholders; the purchases might not, if the price was fair — but prices would, The Financial Times reports, probably be based on “valuation models” rather than market prices, suggesting that the government would be making a big gift here, too.

And in return for what is likely to be a huge subsidy to stockholders, taxpayers will get, well, nothing.

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