Why The President Is Probably Going To Lose

by lestro

Once again, President Obama is pulling a 180 on Candidate Obama’s promises. In this case, he promised that he would punish  those responsible for intentionally tanking the economy in 2008. Now, it seems, the president is doing everything he can to make sure everything works out in Wall Street’s favor while the good folks on Main Street who got totally and completely fucked will be left to pick up scraps and continue to slave away for our corporate overlords.

On the one side is Eric Schneiderman, the New York Attorney General, who is conducting his own investigation into the era of securitizations – the practice of chopping up assets like mortgages and converting them into saleable securities – that led up to the financial crisis of 2007-2008.

On the other side is the Obama administration, all the banks, and, now, apparently, all the other state attorneys general.  […]

This deal will also submarine efforts by both defrauded investors in MBS and unfairly foreclosed-upon homeowners and borrowers to obtain any kind of relief in the civil court system. The AGs initially talked about $20 billion as a settlement number, money that would “toward loan modifications and possibly counseling for homeowners,” as Gretchen Morgenson reported the other day.

The banks, however, apparently “balked” at paying that sum, and no doubt it will end up being a lesser amount when the deal is finally done.

To give you an indication of how absurdly small a number even $20 billion is relative to the sums of money the banks made unloading worthless crap subprime assets on foreigners, pension funds and other unsuspecting suckers around the world, consider this: in 2008 alone, the state pension fund of Florida, all by itself, lost more than three times that amount ($62 billion) thanks in significant part to investments in these deadly MBS.

So this deal being cooked up is the ultimate Papal indulgence. By the time that $20 billion (if it even ends up being that high) gets divvied up between all the major players, the broadest and most destructive fraud scheme in American history, one that makes the S&L crisis look like a cheap liquor store holdup , will be safely reduced to a single painful but eminently survivable one-time line item for all the major perpetrators.

I love the line “the ultimate papal indulgence.”  That’s genius.

This is the essential problem facing Obama next year: the failure to even TRY to deliver on the promises he made as a candidate.

I’ve been wracking my brain; what part of his platform has he succeeded in passing?

Healthcare? nope.  He buckled and we got Hillary’s plan instead of the public option we voted for.

Closing Gitmo? nope.

Out of Iraq? not quite.

Afghanistan? still there, though we did get Bin Laden and Obama should be commended for that.

Certainly we haven’t seen the ‘change’ we were promised and frankly, I am yet to see him even try.  I expect the youth vote to stay home, once again convinced that their vote don’t mean shit, and when you remove those votes, shift the independents around and factor in a fired-up right wing, you get a mix that spells doom for the president in a race where turnout is going to be the key component…

Mark my words, this is turning into the theme song of the 2012 election:

How to beat a recession

by lestro

As the rest of the country struggles with high unemployment and stagnant job creation, Texas has surged ahead.  Rick Perry has found a way to beat the system.  He has figured it out.  How’d he do it?

Simple: Rick Perry created more government jobs.

With a young and fast-growing population, a large and expanding military presence and an influx of federal stimulus money, the number of government jobs in Texas has grown at more than double the rate of private-sector employment during Perry’s tenure.

The disparity has grown sharper since the national recession hit. Between December 2007 and last June, private-sector employment in Texas declined by 0.6 percent while public-sector jobs increased by 6.4 percent, according to the federal Bureau of Labor Statistics. Overall, government employees account for about one-sixth of the workforce in Texas.

Which of course, stands in direct contrast to exactly what he says on the stump, in speeches that tout his ability to create jobs.

“The fact is, government doesn’t create jobs, otherwise the last 21 / years of stimulus would have worked,” Perry said this month in a speech to the National Conference of State Legislatures. “Government can only create the environment that allows the private sector to create jobs. The single most important contributor to our jobs-friendly climate here in Texas is our low tax burden, because we know dollars do far more to create jobs and prosperity in the people’s hands than they do in the government’s.”

Given that we know that the Republicans need to perpetuate a recession in order to have something to hang on Obama and have therefore been literally doing everything they can think of to keep us in this rut (including laying off large enough numbers of government workers to counteract any positive response the president’s attempts at stimulus might have made), this is something the right better hope the general electorate never, ever learns.

Thankfully, no one in the Obama administration will even attempt to point this out. Because they don’t want to be associated with government jobs either.

Go team.

Stay tuned…

by The Kiwi

Pardon our mess.

We at the Church of the Apocalyptic Kiwi have had what you might call a “Come to Kiwi moment.”

We have been away too long. Let’s just say we were delayed en route when a stingray in front of us killed a pedestrian.

That said, the Church of the Apocalyptic Kiwi is about to undergo some minor renovation in anticipation of our return to regular blogging.  Please stay tuned as we work on the redesign…

How to perpetuate a recession

by lestro

Let’s say you are a political party interested not in, you know, fixing the problems in the country, but instead states its goal as “the single most important thing we want to achieve is for President Obama to be a one-term president.”

Now, let’s say the recession in which you’ve mired the country might be starting to recede before the next election, so the main negative you were going to try and saddle the president with was diminishing, meaning you’d actually have to come up with an idea or two on which to run instead of the trotting out the same bankrupt ideology that got us into this mess.

Let’s say things are starting to turn around on the employment front and considering your campaign is going to be about how the president hasn’t yet fixed the economy you destroyed.

What do you do in order to make the president look ineffective?

Well, first, you do everything you can to block any and all economic recovery efforts that are not the same policies that killed it in the first place, demanding instead that in order to get out of this, we have to KEEP DIGGING.

Then, to ensure that the numbers stay bad, you purposefully and willfully lay off thousands and thousands of workers across the country by slashing government spending and forcing them to shed jobs, meaning all of those people who were productive contributors to the economy are now all on the public dole and therefore only making the deficits bigger by demanding the service you just cut.

Voila! instant continuing recession! even if private sector hiring is up 1.7 percent in the past year..

I have been thinking about this for a month or so now, but today, there were numbers that absolutely prove I was right.

Dig this graph:

That’s a tough hole to dig out of.

And if I were president, especially one running for re-election at a time when the top concern is jobs, I would be goddamn sure to point these things out.

Unless, of course, I didn’t want to win anyway.