Showing posts with label Bush Administration. Show all posts
Showing posts with label Bush Administration. Show all posts

Monday, February 9, 2009

State Secrets Litigation


Glenn Greenwald is up in arms about the Obama Administration's advancing the same, extreme interpretation of State Secrets Privilege as the Bush Administration:
It's really remarkable what happened. One of the judges on the three-judge panel explicitly asked the DOJ lawyer, Doug Letter, whether the change in administrations had any bearing on the Government's position in this case. Letter emphatically said it did not. Instead, he told the court, the new administration -- the new DOJ -- had actively reviewed this case and vetted the Bush positions and decisively opted to embrace the same positions.
It's a double-edged sword, though, isn't it? By pushing the Bush Administration's interpretation, the Obama Administration ensures that there will be an appellate court ruling on that interpretation, likely followed by a Supreme Court ruling on that interpretation. Either the courts will reject the Bush/Obama Administration arguments, or they will find them constitutional.

Perhaps that's the worst case scenario for opponents of State Secrets Privilege - that the Supreme Court will give the Bush Administration's extreme views its seal of approval. But if the issue isn't litigated, the issue remains open. Even if Obama backs down, a future administration will reassert the extreme interpretation presently before the courts. Is it truly better "not to know"?

Thursday, January 29, 2009

A Lunatic Investigation....


Hey, I have an idea. You know how people always complain about "letting the lunatics run the asylum"? Well, what proof do you have that it would actually be all that bad? We're making rash assumptions based upon logic, common sense, law... but is that fair to lunatics? So here's what we do:

We create a commission, but we don't let psychiatrists, legal experts, or sane people lead the commission. If we did that, the lunatics might denounce it as a witch hunt. Instead we find and appoint prominent lunatics to head the commission. We can appoint some of the sane people and experts also, but as window dressing. We wouldn't want to demonstrate bias by letting them run the show or influence the panel's findings.

Sure, some sane people will complain about the heavy presence of lunatics on such a panel. But the alternative is no panel at all. Why? Because I said so. I mean, in fact, sane people, legislators, psychiatric experts could hold such a panel any time they wanted to, but shut up - I'm pontificating here. So when I say "surely any panel is better than where we’re headed: which is no investigation at all", don't question me.

And I'm confident that when the panel concludes its investigation it will issue a stinging repudiation of letting inmates run asylums that no one could lightly dismiss. And we can use that consensus in the future - because laws, the constitution, sound public policy... if the lunatics take over, they could all go out the window. If we form a consensus on these issues, and by that I mean letting the lunatics decide what we should do, we'll be better off when the lunatics once again rule! And the rest of the world will once again respect us!

Tuesday, January 27, 2009

Torture and Morality


Typical of his way of thinking, which is to say... poorly, Richard Cohen today argues that we can't prosecute Bush Administration officials for torture because we're all guilty.
"The past is a foreign country; they do things differently there." So goes an aphorism that needs to be applied to the current debate over whether those who authorized and used torture should be prosecuted. In the very different country called Sept. 11, 2001, the answer would be a resounding no.

Back then, a Post poll gave George W. Bush an approval rating of 92 percent, which meant that almost no one thought he was on the wrong course.
This shouldn't have to be explained, but then... it's Richard. No, the high approval rating for a President immediately after a moment of national crisis does not translate into equivalent approval for his policies, let alone each and every one of his policies. Nor could it. How smart do you have to be to recognize that Bush hadn't even stated his policies on torture on 9/11. He hadn't declared an intention to invade Iraq. It was Bush's bad policy choices (and their consequences) that caused his popularity to plummet.

What Cohen really means here is that after 9/11 he got climbed onto a "Bush can do no wrong to avenge this" bandwagon, and he saw nothing wrong with the use of torture to achieve Bush's objectives, stated and unstated. That's fine - he can put himself on the dock next to G.W. for his stupid, credulous, thoughtless acceptance of everything Bush did as being right. But please - leave the rest of us out of it.
At the same time, questions about the viability of torture were very much in the air. Alan Dershowitz was suggesting the creation of torture warrants -- permission from a court to, in effect, break some bones.

Dershowitz, mind you, was not in favor of torture but argued that if torture was going to be done, it was best that it be done legally.
Actually, I think the better argument is that Dershowitz is very much in favor of torture, but chooses to dance around the subject rather than approaching it honestly.
In a similar vein, the thoughtful Newsweek columnist Jonathan Alter mulled the legality, the morality and the efficacy of torture. In the end, Alter ruled it out -- although not sodium pentothal (truth serum) or offshoring terrorism suspects "to our less squeamish allies." In fact, the government was already sending suspects abroad to be interrogated.
So... an intellectually dishonest law school professor favored torture and a Newsweek columnist ended up endorsing extraordinary rendition... and this proves what, exactly? That when confronted with extraordinary circumstances, people like Dershowitz increase the volume of their calls for us to abandon our values, and people like Alter wonder if they're right? (While sheep like Cohen go, "Baaaaaah"?)
Around the same time, historian Jay Winik wrote about the usefulness of torture, how Philippine agents in 1995 got a certain Abdul Hakim Murad to reveal a plot to blow up 11 American airliners over the Pacific and send yet another plane, this one loaded with nerve gas, into CIA headquarters in Langley. After being beaten nearly to death, Murad was finally broken by the hollow threat to turn him over to Israel's Mossad.
The moral of this story being what? That the Mossad would have finished beating Murad to death, as opposed to beating him almost to death, and that fear caused him to reveal additional information? That the Bush Administration was correct to insist that nobody could possibly have conceived of a plan to crash airplanes into buildings? That if you torture somebody until they reveal a horrible terrorist plot, no matter how ludicrous, you will eventually get them to "confess" such a plot? Really... other than as an idea in Murad's mind, this notion of crashing a plane loaded with nerve gas into the CIA headquarters is supported by... what? There was a ton of documentary and physical evidence that Murad was planning to hijack and blow up airlines. Was there any to support this special new plot, or that any other person even knew of this supposed plot, learned of through the tactics Cohen approves?
According to journalists Marites Vitug and Glenda Gloria, authors of the book Under the Crescent Moon, agents hit him with a chair and long piece of wood when Murad did not talk. They forced water into his mouth, and crushed out lit cigarettes on his genitals. Murad's ribs were completely cracked. Agents were surprised that he survived.
To be clear, is Cohen in the Dershowitz, "Get a warrant before putting out your cigarettes on a prisoner's genitals" camp, or is he in the Alter "Send the prisoner to a foreign nation where somebody else's steel toed boots can get dirty while kicking in his rib cage" camp? If we're going to pretend Murad was a "ticking time bomb", what actionable evidence was obtained through his torture that prevented the fanciful "CIA nerve gas attack" from being carried out? And if we're not pretending that he was a "ticking time bomb", such that his torture did not provide us any information or evidence useful in preventing a future attack, let alone an imminent attack on Langley, what's Cohen's point?

Cohen continues with his insipid analysis:
The Philippine example was widely mentioned at the time, even by those who opposed the use of torture. The conventional wisdom that torture never works - so counterintuitive as to be an absurdity - was not yet doctrine.
No, Richard. The argument isn't that "torture never works". The argument is that evidence obtained through torture is not reliable. For example, I take Cohen prisoner, and he denies his association with al-Qaeda. After a few rounds of torture, he finally admits his affiliation. So now I ask him to identify his contacts. He denies having any contacts, or claims not to know their names. A few rounds of torture later, I have names. But none of that information is reliable.

Frankly, as a torturer, I probably don't care. If I let Richard Cohen live, return him to the streets hobbled, covered with cigarette burns, he serves first as a message of my ruthlessness - this is what I do do people who challenge state power. If Cohen's lucky it ends there. If not, he's treated as an informant - he wouldn't have been released, after all, had he not talked. Maybe I even put out the word that he talked, and my agents watch to see who takes revenge - that's actionable intelligence. Or I can whisper to the next person I pick up, "If you give me the information I want, right now, I can let you go and nobody will ever have to know you were in custody. (Or you can end up like Cohen.)" That could be true. It's more likely a lie, but it may scare some information out of the guy before the torture sessions begin.

Whatever information I get, I can act on it. I can pick up the friends Cohen named and start round two with them. Their confessions, with or without torture, will either confirm or refute Cohen's. It doesn't matter. Then round three, round four.... After I torture enough people, I'll have enough confirming information to have a pretty good idea of whether Cohen gave me real names. If he didn't and he's still alive, whether he's in custody or has to be picked up yet again, I can torture Cohen to find out why he lied. By that time I may think that Cohen was wrongly accused in the first place but, no matter. He lied during an official investigation, and that's a crime in and of itself. Besides, we're back to sending a message - and what message would an apology send?

Torture is very intimidating to dissidents - perhaps Cohen is too obtuse to have noticed that particular use of torture by oppressive regimes, but I'm sure they'll confirm that it "works". Also, if you're intent on getting information at any cost and are willing to act on the information you obtain no matter how dubious it may be, torture gets you lots of information you can act upon, usually faster and in much greater volume than would interrogation. Who's arguing that would be ineffective? The debate is over the measure you use for "effectiveness", and... silly things like American values and morality.
At the same time, we have to be respectful of those who were in that Sept. 11 frame of mind, who thought they were saving lives - and maybe were - and who, in any case, were doing what the nation and its leaders wanted. It is imperative that our intelligence agents not have to fear that a sincere effort will result in their being hauled before some congressional committee or a grand jury. We want the finest people in these jobs - not time-stampers who take no chances.
When we had the finest people in those jobs, we didn't need or use torture. When we had immoral, stupid, sociopathic people in those jobs, we got Abu Ghraib. There's a term that I've heard used for people who claim, "I was only following orders," when their on-the-job atrocities are challenged. Do you know that term, Richard?
The best suggestion for how to proceed comes from David Cole of Georgetown Law School. Writing in the Jan. 15 New York Review of Books, he proposed that either the president or Congress appoint a blue-ribbon commission, arm it with subpoena power, and turn it loose to find out what went wrong, what (if anything) went right and to report not only to Congress but to us.
"If anything"? Richard doesn't see any tension between his implication that nothing went right under Bush, and his blind endorsement of everything Bush did post-9/11?
We were the ones, remember, who just wanted to be kept safe.
It's quite reasonable for the citizens of a nation to ask that their government protect them from foreign enemies. That's part of the government's job. It's quite another for the government, or hacks like Richard Cohen, to read into that, "At all costs." Unlike Cohen, some of us were never ready to surrender our core values. But then, perhaps Cohen never had any.

Thursday, January 22, 2009

Save Us From the Speechwriters


First it was David Frum, not a stupid man but one predisposed to fatuous assertions; next Michael Gerson, the nation's dumbest syndicated columnist. Now erupting, from deep within the bowels of the White House... Marc A. Thiessen.
When President Bush left office on Tuesday, America marked 2,688 days without a terrorist attack on its soil.
Except for anthrax. And the Beltway sniper (close enough to terrorism to test "homeland security", even if without a political objective). And, although certainly not a terrorist attack, the colossal screw-up after Katrina that let the nation know that, for years after 9/11, Bush and his administration were completely incompetent to handle any large-scale disaster on U.S. soil. And if we're counting days, the amount of time between the first attack on the World Trade Center and the end of Clinton's term was even greater, with no subsequent anthrax attacks to conveniently overlook.

Thiessen's goal here seems to be to defend Bush's record of torture, disregard of the Constitution, and indefinite confinement of suspects without charges or recourse to the courts. It's one of those arguments where Bush's adherents wish to be taken on faith. Khalid Sheik Mohammed refused to talk until he was tortured, and the information gathered was so valuable that only Bush and those with top security clearances, like... his speechwriters have been trusted with the intimate details. But it allowed the government to claim to have prevented terrorist attacks that may have been planned for U.S. soil, and a few of those directed at overseas targets, so, you know, shred the Constitution and all hail Bush. And shame on Obama for describing torture for what it is.

It's astonishing that Bush's defenders are so quick to defend the use of torture, but so scared of the word itself. Have they no courage in their convictions? No, that qualification isn't needed. Have they no courage?
President Obama has inherited a set of tools that successfully protected the country for 2,688 days - and he cannot dismantle those tools without risking catastrophic consequences.
You know, it's like potato chips. You hold a guy without charges or access to the courts, torture him, make sensational claims about what you supposedly learned through torture (but refuse to substantiate them)... and how can you possibly stop at just one? C'mon Obama - taste the forbidden fruit. You'll like it....
On Tuesday, George W. Bush told a cheering crowd in Midland, Tex., that his administration had left office without another terrorist attack. When Barack Obama returns to Chicago at the end of his time in office, will he be able to say the same?
Again, that's a claim Clinton could have made - more honestly. But that's not the point, is it. Thiessen wants to set a stage where any further attack on the U.S. vindicates Bush and redeems his miserable record. From his tone, it almost sounds like Thiessen is hoping for an attack, just so he can snivel, "I told you so." Even though it would vindicate nothing in his argument and, quite possibly, reflect and result from the failure of the Bush Administration's policies.
In 2007, President Bush revealed intelligence that Osama bin Laden had told al-Qaeda leaders in Iraq to form a cell to conduct attacks inside the United States - then the surge drove them from their havens and set back those plans.
In 2004, President Bush (via Condoleezza Rice) revealed that in 2001 they sat on intelligence that Osama bin Laden was determined to attack targets within the United States. I wish he'd taken that, you know, 1% as seriously as the notion that a planned terrorist cell ostensibly to be based in U.S. occupied Iraq had similar intentions.

Monday, January 19, 2009

Prepare to be Chastened


You remember Bruce Anderson from his ethnically sensitive column on Hurricane Katrina (Don't blame Bush - Blame black people!), or perhaps from his "carbon emissions, schmarbon emissions" column about global warming (Yes, The real leader on climate change is Mr Bush ). Watch out, Bush critics - he's coming for you.
It is not difficult to make the case against George Bush.
Ouch.
There have been mistakes.
Mistakes, plural? My how the world has changed following Bush's final press conference... Bush sort of admits to three mistakes,
Clearly putting a "Mission Accomplished" on a aircraft carrier was a mistake. It sent the wrong message. We were trying to say something differently, but nevertheless, it conveyed a different message. Obviously, some of my rhetoric has been a mistake.

* * *

I believe that running the Social Security idea right after the '04 elections was a mistake. I should have argued for immigration reform.
Back to Anderson:
But in their abuse of him, many of his liberal critics demonstrate their own weak hold on reality.
You mean, like crazily being concerned about carbon emissions, or not blaming the Katrina disaster on African Americans? Or what? (Sorry, Bruce - I'm not even sure G.W. is on your side on those points.)
In trying to belittle him, they merely reveal their own littleness.
Yes, yes. Tiny little liberals. We get it.
George Bush is a much more considerable figure than the caricature version.
Er, Bruce, that's not a defense... you're damning him with faint praise.
As he has set great events in motion, it will be impossible to judge his Presidency for many years.
Another presentation of the "You can't judge Bush by his decisions, but must wait a few decades or generations to see what comes next. If you parked a feces flinging monkey in front of a fan, Anderson would likely assure us that "You have to wait to see if a verdant tomorrow grows out of the monkey's newly fertilized surroundings." Had Bush initiated a nuclear war, Anderson would probably be telling us that we have to wait and see if the benefits of reduced world population and possible beneficial mutations of the human genome lead future generations to regard him as a great man. Or, as Anderson so aptly puts it,
It is not impossible that history will offer a partial vindication.
Partial vindication is not impossible? Does praise get any fainter than that?

Okay, that was Anderson's first paragraph and there's a lot more... of similar quality. Read it and weep, you tiny little liberals. Anderson continues to make sweeping, unsubstantiated statements (e.g., "Although some of George Bush junior's speeches will rank high in the annals of political oratory, once he was without a text, he often went adrift." - er, which speeches?), and presents a second-hand depiction of Bush's astonishing leadership behind closed doors that's worthy of a SNL skit. For eight years we've been told that Bush is brilliant, witty, smart and commanding, until a camera lens hits him at which time his brain seems to turn to mush. Maybe there's some hidden camera footage? An audio recording? Because as much as I want to give Bush the benefit of the doubt, you would think by now we wouldn't have to take people like Anderson's apocryphal friend at their (purported) word.

Typical of Bush's defenders, Anderson wants to reinvent the Iraq war.
After 11 September, the US Administration asked itself one repeated and agonised question. Why do these people hate us? The Bush team came up with their answer: because they live in failed states, which offer their young no hope in this world and thus leave them open to the temptations of fanaticism and a better deal in another world.
Well, not quite. What Bush actually said was,
They hate what we see right here in this chamber - a democratically elected government. Their leaders are self-appointed. They hate our freedoms - our freedom of religion, our freedom of speech, our freedom to vote and assemble and disagree with each other.
That's not quite the same thing, is it.... Anderson apparently didn't convince even himself, as he carries on about Hussein's desire for WMD's and suggests that choosing not to invade Iraq and topple Hussein would have been tantamount to waiting "until the certainty of a mushroom cloud".
It seemed that all the routes to progress in the Middle East and safety in the West led to Iraq.
Talk about your hyperbole.... But "seemed"? His defense of the entire Iraq debacle is "Appearances were deceiving"?

But in moving forward with the war, "There was one problem." Just one, mind you. Wanna guess? I'll give you three tries.
Largely because of the malign influence of that fraud and tautology, international law, we have grown squeamish about regime change.
I bet that was at the top of your list. I mean, think of all the leaders who weren't toppled due to American squeamishness about regime change and fear of international law. Manuel Noriega, Bernard Coard, Slobodan Milosevic, Lt. Gen. Raoul Cedras... all happily ruling their countries. Squeamishness like that almost assuredly was why the U.S. would never have backed a coup attempt in Venezuela before not invading Iraq.
As a result, the overwhelming desirability of regime change in Iraq had to be downplayed, and there was a further difficulty: the most unfortunate un-meeting of minds in recent public policy. After 2001, in both Washington and London, there was a split between those who knew Iraq, who were generally hostile to the War, and those who wanted war but usually knew nothing about Iraq.
Oh, this is too good. Here's Bush, downplaying regime change in a joint press conference with Blair, April 6, 2002:
THE PRESIDENT: Maybe I should be a little less direct and be a little more nuanced, and say we support regime change.

Q That's a change though, isn't it, a change in policy?

THE PRESIDENT: No, it's really not. Regime change was the policy of my predecessor, as well.

Q And your father?

THE PRESIDENT: You know, I can't remember that far back. (Laughter.) It's certainly the policy of my administration. I think regime change sounds a lot more civil, doesn't it? The world would be better off without him. Let me put it that way, though. And so will the future.
Talk about nuance. But what about Anderson's concern about the split of opinion on the Iraq invasion between, shall we say, those who knew what they were talking about and those who didn't?
George Bush had little confidence in his Secretary of State, Colin Powell. Unable to sack Mr Powell, he made up for it by not listening to the State Department. Tony Blair never took much notice of his foreign secretaries.

As a result, the Arabists' expertise was disregarded and ... the direction of events was left to the neo-conservatives, most of whom were dangerous idealists who believed that democracy was an infallible political antibiotic.
But enough about Fred Hiatt. No, in fairness to Hiatt, he at least recognized Bush's "commitment" to democratization for what it was. If the people Bush in fact allowed to lead him around by their nose were even half as informed as Hiatt, Anderson's account would fall apart. What's amazing to me is that Anderson's trying to defend Bush by arguing that Bush had a choice between going with knowledgeable experts and Colin Powell, and people who knew absolutely nothing about anything - and that Bush made the wrong choice. Anderson elaborates that, if Iraq hadn't been such an unmitigated disaster in the hands of the incompetents picked by Bush, "George Bush's ratings would be much higher". Well, yeah, but in that universe we might be talking about how Bush's record of good decision-making justifies calling him a good President, rather than how once the dust settles and future Presidents and people put Humpty Dumpty back together, it's "not impossible that history will offer a partial vindication".

The funny thing is, having just said that, Anderson tells us:
There was one unfortunate side effect of the war on terror: Guantanamo.
I guess Anderson sees the rest of the side-effects, including two years of chaos and lost opportunity in Iraq, the idiotic disbanding of the Iraqi military, loss of world respect, loss of respect as the world's preeminent military power, as fortunate side effects?
At the time, it seemed a good idea: a cunning means of preventing American lawyers from undermining America's security. But the US prides itself on being a nation founded upon laws. It follows that a legal vacuum is only tolerable for a brief period.
So it seemed like a good idea to ignore U.S. law and values, create a legal black hole where you could drop prisoners, many of whom were picked up by mistake, deny them due process, charges, access to lawyers, trial, smear anybody who tried to assert that we would be better off respecting our historic values and providing an example for the world of fairness and justice (the type of American values somebody like Anderson sees as "undermining America's security"), and engaging in treatment of some prisoners so atrocious that, despite their crimes, we may have virtually no evidence that we can use against them in court in anything resembling a fair trial. By now even Anderson's ready to bring the Guantanamo prisoners back into the light, but he adds,
That said, anyone who denies that there are some exceedingly dangerous men in Guantanamo should be forced to live among them.
No, in fact, it's the people who flouted American law, and people like Anderson who cheered them on, who should be forced to live among those we are unable to convict due to the Bush Administration's use of torture and contempt for the law.

Funny how only a couple of years ago Anderson saw Bush's Katrina failure as relevant to his legacy, but now... nary a mention. But there's a consistency with his prior piece - then, as now, every failure that occurs on Bush's watch is the fault of something that came before his Presidency:
The decisions which doomed New Orleans were taken years before he became President, including the one to build the city in the first place.
Yes, I'm sure that there were many times in the wee hours of the morning when Bush woke up screaming, "Darn you, French Mississippi Company! Darn you, Jean-Baptiste Le Moyne de Bienville! How could you do this to Brownie and me!" How could Bush possibly have foreseen a disaster that was a mere 287 years in the making. In fact, it's unfair to expect that Bush would have foreseen any disaster. Really:
On the economy, and like Gordon Brown, George Bush could be accused of failing to fix the roof while the sun was shining. But two years' ago, it all seemed to be working. ... George Bush did not foresee the crisis. Who did?
A lot of people saw disaster coming, actually. Sure, they were largely marginalized by the media, save most notably for Paul Krugman who hollered loud, clear warnings from the editorial page of the New York Times. If all of that flew below Bush's radar, it can fairly be said that as with Iraq, a large part of the fault lies with his natural tendency to surround himself with incompetents who tell him what he wants to hear, while marginalizing and ignoring anybody who knows anything about anything.

So there you go, Bush critics. Don't you feel small?

Thursday, January 15, 2009

What Truly Amazing Timing


Good news - after years of diligent searching, literally days before he ducks out the door, G.W. finally found his missing emails!
A Justice Department lawyer told a federal judge yesterday that the Bush administration will meet its legal requirement to transfer e-mails to the National Archives after spending more than $10 million to locate 14 million e-mails reported missing four years ago from White House computer files.
This is interesting....
Once the e-mails are transferred to the National Archives, federal law allows them to be requested under the Freedom of Information Act after a five-year interval.
Without digging deeper, I'm not sure: Does this mean Bush has put off disclosure of these potentially embarrassing emails until 2014, where they would otherwise have been open to FOIA requests next year?

Monday, January 12, 2009

On Looking Forward


Dahlia Lithwick doesn't seem to have much patience for the argument that we should look forward as the Bush Administration is replaced by Obama's:
Those who say that there should be no investigation or prosecution of senior officials who authorized torture and warrant-less surveillance rarely even bother offering legal justifications. They argue that the Obama administration has more urgent problems to contend with. They insist that any such process would devolve into partisan backbiting from which this country could never recover. And they insist, as did Attorney General Michael Mukasey in early December, that there is no basis on which to prosecute the architects of torture and wiretapping policies because each was acting to “protect the security in the country and in the belief that he or she was doing something lawful.”
I personally wouldn't say "there should be no investigation or prosecution of senior officials who authorized torture and warrant-less surveillance"; I would say "If Justice Department officials are aware of crimes, they can consider whether or not to prosecute them". (And here I mean "consider" in the sense that any prosecutor evaluates a case, and choose to prosecute some while passing over others.) I take issue with bringing out the muckrakes and trying to dredge new indictable offenses out of the Bush Administration's... I suppose there's no real need to continue that metaphor; you get the point. There's lots of muck to rake, but there's a real cost and risk in choosing that path.

Of all of the reasons not to prosecute that Lithwick attributes to opponents of (large-scale investigation and) prosecution, the only one I agree with is this: "the Obama administration has more urgent problems to contend with". Sure, the cost of any distraction that resulted from a full-scale investigation of "the crimes of the Bush Administration" would have to be weighed against the benefits of finding and prosecuting crime. Would the benefits, either in the long- or short-term, outweigh the costs? Lithwick apparently believes they will; I suspect otherwise. Lithwick implies that the decision should be made on legal grounds, not practical or political grounds, but even if that's technically possible the nation will nonetheless interpret the choice to prosecute through a political filter.
Others — including unnamed officials on the Obama transition team — have already claimed that there is simply no political will for criminal prosecutions, or even a truth commission.
Is that untrue? I personally haven't sensed a strong public sentiment toward either an independent counsel or a truth commission. If Lithwick is seeing a strong grassroots movement, or is aware of opinion polling suggesting otherwise, I would welcome more information.
We are telling ourselves that bad people did bad things under bad circumstances, but that it’s better to forgive and forget, that we are really truly sorry and it won’t happen again. We sound like a nation of drunks after a bender. We are full of good intentions, but unwilling to hold ourselves to account.
Actually, I have very little sense that a large number of people on either side hold that mindset. I sense that there are people, including myself, who are very worried that the Bush Administration's bad policies will happen again, and that some will be carried forward into the Obama Administration. I've even heard some Bush critics cynically suggest that Obama doesn't want to take action because he doesn't want to tie his own hands. On the other side, there are partisans who would not admit (and perhaps can't contemplate) that any act contemplated by the Bush Administration was wrong, or that any action nominally taken "in the interest of national security" should ever be second-guessed. The number who argue, "We meant well but we were wrong, so let's let bygones be bygones?" They're probably out there, somewhere; I'm just not running across them.

Lithwick argues,
Nobody is looking for a series of public floggings. The blueprints for government accountability look nothing like witch hunts. They look like legal processes that have served us for centuries.
and
Some commentators have suggested that any such truth commission should promise immunity or a pardon in exchange for truthful testimony, but I believe that if it becomes clear that laws were broken, or that war crimes were committed, a special prosecutor should be appointed to investigate further.
Although Lithwick correctly states, "It’s not a witch hunt simply because political actors are under investigation", I disagree with her suggestion that nobody wants the witch hunt / public flogging of former members of the Bush Administration. I believe that some people very much want that, and that they will overshadow the motives of those who want an investigation focused upon determining facts and preventing the recurrence of bad acts. Frankly, as long as you leave the threat of special prosecutors and indictment hanging over the witnesses, all you're going to get at your hearings is a long succession of people who either refuse to testify or, after being subpoenaed, recite, "On advice of counsel, I hereby respectfully exercise my Fifth Amendment privilege against self-incrimination...."

If our world were more ideal, Lithwick's view would prevail - and an efficient, entirely non-political investigation would quickly reveal important truths, help ensure that crimes were punished, help prevent similar crimes in the future, etc. Nobody would have to worry that the prosecution would be perceived as politically motivated, because that would be unthinkable. (But in a world that ideal, we wouldn't be in this position in the first place, would we?) I hate to drag practical concerns and politics into this, but in our often dystopian world and under our imperfect political system that's an unfortunate necessity.

Didn't Ken Starr initially have a very high approval rating, and broad popular support for his Whitewater investigation, before it went metastatic in its "leave no stone unturned" quest to get Clinton? "Oh no", his defenders protest, "he only investigated possible criminal acts he found during his other investigations". "Even if Starr ran amok, this time will be different", proponents of a sweeping investigation of the Bush Administration contend. Yeah, right.

Sunday, January 11, 2009

Obama's Correct To Look Forward


Without wishing to minimize the bad acts committed by members of the Bush Administration, the need to prevent recurrence, or even the instinct to seek a bit of revenge for the Clinton impeachment, I just can't get on board with this mindset:
Worst of all, Obama (in response to Stephanopoulos' asking him about the number one highest-voted question on Change.gov, first submitted by Bob Fertik) all but said that he does not want to pursue prosecutions for high-level lawbreakers in the Bush administration, twice repeating the standard Beltway mantra that "we need to look forward as opposed to looking backwards" and "my instinct is for us to focus on how do we make sure that moving forward we are doing the right thing." Obama didn't categorically rule out prosecutions -- he paid passing lip service to the pretty idea that "nobody is above the law," implied Eric Holder would have some role in making these decisions, and said "we're going to be looking at past practices" -- but he clearly intended to convey his emphatic view that he opposes "past-looking" investigations. In the U.S., high political officials aren't investigated, let alone held accountable, for lawbreaking, and that is rather clearly something Obama has no intention of changing
Now I'll grant that there are circumstances when we should look backwards and criminally prosecute bad actors from an outgoing administration, and I'll concede that it's difficult to articulate the circumstances under which that is or is not appropriate, but here's one small measure: If the sins aren't sufficient to trigger impeachment by a Congress controlled by the opposition party, that alone raises a serious question not only about whether they are so serious as to trigger criminal investigation and prosecution, but also whether the opposition party shares culpability for having failed to act sooner.

An after-the-fact appointment of a special counsel, whose job is essentially to dig for criminal acts and prosecute those who committed crimes, not only can be easily spun as "revenge for the Clinton impeachment", but sets a precedent that could haunt any outgoing administration, no matter how squeaky clean. Didn't Ken Starr teach us, no matter where you start out, if you keep expanding the scope of your investigation you will eventually find some opportunity to accuse somebody (rightly or wrongly) of crimes, coerce witnesses, set perjury traps... create a great deal of pain and disruption for the nation and its governance and, at the end of the day, quite possibly accomplish nothing meaningful?

Another problem is that when you create a sideshow of the type proposed, it can take everybody's energy and attention away from the very real issues we must address, while looking forward. Thanks in no small part to Bush, this nation has a lot of very serious problems that need to be quickly addressed. The investigation and prosecution of a host of officials of the outgoing administration has the potential not only to interfere with the new administration's focus, it could polarize the nation, and make the Dems seem as small, petty, obsessed, biased and vindictive as Ken Starr looked to them when he finally released his report.

If Justice Department officials are aware of crimes, they can consider whether or not to prosecute them. There are issues that the new Congress should investigate, and it's possible that crimes will be uncovered there as well. We don't need to look away from the past. But despite the temptation and opportunity, and a mile of muck to dig through, I don't think it's necessary or wise to start appointing special prosecutors to ferret out people and acts to prosecute. Even if it doesn't end up looking as counter-productive as Ken Starr's investigation run amok.

Wednesday, December 31, 2008

Paul Krugman's Word Search


Paul Krugman is looking for a word:
There has to be some word for the kind of person who considers his mild discomfort the equivalent of torture, crippling injury, or death for other people. But I can’t think of it.
Although it's not quite the word he's looking for, the phenomenon he's describing is narcissism. It's not that their pain is so much greater than everybody else's - it's that only their own pain has significance. You're seeing a combination of narcissistic character traits - a lack of empathy crossed with grandiosity, self-importance, and envy of others who are getting the sympathy and attention they deserve.

Tuesday, December 23, 2008

Strings, Strings and More Strings


As far as I'm concerned, if a bank wants another handout, it's time to tie it up in strings. My suggestions:

    Accountability for Any Prior Handounts - If the bank has received a prior infusion of bailout funds, it must provide a full accounting of the use of the funds;

    Henry Paulson Bailing Out Banks

    An Honest Balance Sheet - Any banks who want handouts must present an honest assessment of any troubled / toxic holdings they possess, with bailout money being directed based on need. If a bank wants to pretend that its toxic holdings are worth 80 - 90 cents on the dollar (or more), we are equally entitled to pretend that they're telling the truth and that the don't need our money;

    A Business Plan - Require a clear statement from the bank of how it got into this mess, and precisely how the cash it requested will help it get out.

    An Insolvency Plan - In case it gets the funds and still can't get its act together, a plan for how it will enter Chapter 11 proceedings, or how it will otherwise facilitate the FDIC in arranging its takeover by another bank.

Henry Paulson doesn't appear to have the cajones to stand up to even a tiny bank, and seems happy to have bailout money wasted on huge salaries and bonuses, corporate jets, shareholder dividends, or whatever secret uses a bank may find for our money, so this will have to come from Congress.

Or, perhaps better, Congress can hang on to the remaining bailout funds for a month, until Pauson is just another historic participant in the Bush Administration's sordid legacy of failure.

Friday, December 12, 2008

What A Pathetic Display


The Washington Post, observing that the only proposal to save the auto industry is failing in the Senate - due to, of all things, a Republican demand for what amount to wage caps on auto workers - "What's Plan B?" It astonishes me that a Republican President can't convince enough of his own party's senators of the urgency of action, that they drop their filibuster threat. In what seems like "business as usual", a scheduled vacation appears more important to the Democrats than actually forcing the Republicans to break out their encyclopedias and, if they truly wish to block the bill, actually filibuster.

The short answer to the question, "What's Plan B", appears to be to use TARP money for the bail-out, which could mean that none of the restrictions, compromises, or demands placed upon the Big Three by the bailout bill will be implemented. The Republican Party may be giddy with the idea of harming or breaking the UAW and benefitting the foreign auto manufacturers who are located in "red states", but G.W. is worried about the tattered remnants of his legacy.
"Because Congress failed to act, we will stand ready to prevent an imminent failure until Congress reconvenes and acts to address the long-term viability of the industry," Treasury spokeswoman Brookly McLaughlin said.

And, White House spokeswoman Dana Perino said it is considering using the Wall Street rescue fund to prevent the USA's strapped carmakers from failing.
I like that - it's "because Congress failed to act", rather than, "Because the President couldn't convince his own party to back a bill he supports." Perino elaborated that "it would be 'irresponsible' to further erode the economy by allowing failure in Detroit", but how about some honesty here about just who it is that the President is describing as irresponsible.

The Washington Post repeats some common, yet silly, complaints about the auto industry,
Furthermore, if the Detroit carmakers are going to survive, they will have to completely overhaul the way they do business - and start building cars that people will buy.
Lets look back a whole year:
General Motors announced today that it sold 9,369,524 vehicles worldwide in 2007, which puts it in a dead heat with Toyota for the title of world's best-selling automaker.
Now the Big Three deserve criticism for disregarding the end of cheap oil, but really... but for the spike in gas prices this summer and the current financial crises, at current gas prices those highly profitable gas guzzling vehicles "that no one wants" would be flying off of car lots across the nation. (If auto makers booked their profits when those vehicles sold, as opposed to when they were shipped to dealerships, they would be looking a lot healthier right now - because sales appear to be picking up.)
For that, they are going to need new leadership, a rational assessment of their long record of failure and, yes, a much larger infusion of government cash.
We're back to that "new leadership" thing.... Something the Post isn't demanding of the finance industry, despite a perhaps unparalleled record of failure and incompetence by its leaders. Heck, the Post doesn't even appear upset by the astronomical wages, bonuses, and even stock dividends that bailed-out financial companies are paying with taxpayer money.

Perhaps we need a financial industry czar - somebody who saw that derivatives were, let's say, a "time bomb" or as "financial weapons of mass destruction"... Oh, but let's be realistic. Nobody could have seen the financial industry's problems coming. We need to find a Warren Buffett for the intelligence community, and apparently we need a Warren Buffett for the auto industry. It's truly a shame we can't find a Warren Buffett for the financial industry.

I've already commented, but it bears repeating - where exactly does the Post imagine that the Big Three will find "magic men" to lead them in a new direction? Ford got its CEO from Boeing; Chrysler's CEO used to head, of all things, Home Depot. How far outside the industry is far enough to satisfy this ridiculous demand - and what's wrong with looking for people within the industry who actually know about cars and may even have a track record of developing vehicles that are suited to the future?
Nobody - including the carmakers - fully understands the depth of Detroit’s problems or how much money it will take to dig them out. Mark Zandi, chief economist at Moody’s Economy.com, told Congress last week that rescuing the companies would cost taxpayers $75 billion to $125 billion over the next two years. And that’s probably optimistic.
Now that's a fair criticism. Chrysler, for example, is pretending that the bailout will result in a quick return to profitability. Does it believe that, or is it spinning a fairy tale? If the former, there's good cause to question the competence of its leadership. If the latter, it appears to be part of a mendacious plan by Cerberus Capital Management to get a taxpayer subsidy that allows it to avoid taking a loss on a bad investment. As you already know, I think it's the latter.

If the Big Three are glossing over a future that, realistically, will require a taxpayer bailout exceeding $100 billion, we should be sending them back to revise their plans to reflect that reality - and to demonstrate how they could recover with a smaller infusion of taxpayer money.

Beyond the Post's dream that the Big Three will find "magic men" to take over for their present leadership, it whines,
And the bill doesn’t set any conditions to ensure automakers invest in fuel-efficient vehicles. Any long-term plan must make sure the automakers don’t simply keep making gas-guzzling trucks and sport-utility vehicles, whose popularity - unfortunately - has recovered as gas prices have declined.
There's not even a slight effort to achieve internal consistency. If the idea is to force auto manufacturers to build cars that consumers want, it appears that they are doing so - as long as gas prices are low. If the idea is to force them to give up their gas guzzlers in favor of fuel-sipping vehicles, that's something quite apart from getting them to build the vehicles people want to buy. Let's be blunt - if you could build a car the size of a small house, have it get 25 MPG, do 0-60 in less than ten seconds, and sell it in various forms for $20-$30K, it would be the most popular car in America. (The auto manufacturers are about as likely to be able to create such a car as they are to find the Post's "magic man" leaders, so don't accuse me of being unrealistic.)

It should go without saying, but it doesn't - so here we go again. If the goal is to create a competitive domestic auto industry, you can't do that by hamstringing auto makers and forcing them to build under fuel efficiency standards that don't apply to their competitors. If you want more fuel efficient cars on the road, build an even playing field by instituting new, meaningful CAFE standards that apply to everyone.

If the Post is correct, that it's going to take $75 - $125 billion to turn around the domestic auto industry, then perhaps its time to think about something far different from a bailout that tries to keep the three auto makers in business. There are a number of options, short of and including bankruptcy, that should be considered in the new year. Assuming GM and Chrysler aren't already in bankruptcy by then.

But how about at least passing a contingency plan - an authorization of aid to parts suppliers to keep them out of bankruptcy in the event that Chrysler and/or GM file Chapter 11. If we're going to risk that they fail, let's at least try to keep them from dragging Ford down with them.

Vanity Fair on Henry Paulson


This seems like a pretty accurate capsule summary:
The original proposal by Treasury Secretary Henry Paulson, a three-page document that would have provided $700 billion for the secretary to spend at his sole discretion, without oversight or judicial review, was an act of extraordinary arrogance. He sold the program as necessary to restore confidence. But it didn’t address the underlying reasons for the loss of confidence. The banks had made too many bad loans. There were big holes in their balance sheets. No one knew what was truth and what was fiction. The bailout package was like a massive transfusion to a patient suffering from internal bleeding—and nothing was being done about the source of the problem, namely all those foreclosures. Valuable time was wasted as Paulson pushed his own plan, “cash for trash,” buying up the bad assets and putting the risk onto American taxpayers. When he finally abandoned it, providing banks with money they needed, he did it in a way that not only cheated America’s taxpayers but failed to ensure that the banks would use the money to re-start lending. He even allowed the banks to pour out money to their shareholders as taxpayers were pouring money into the banks.
I would add, Paulson's refusal to hold a steady course, and his willingness to throw "no strings attached" billions at banks based upon criteria only he appears to know (assuming he actually has criteria) could not possibly have created confidence in the banking system, as it's been entirely unpredictable.

Sunday, December 7, 2008

That "Why The Party Failed" Thing


In taking on Ross Douthat's tendentious piece on abortion, I didn't address his headline, ostensibly the thesis of his piece, that "Abortion Politics Didn’t Doom the G.O.P." Of course not. If the GOP's approach to abortion politics were to doom it, it would not be by driving away people like Kathleen Parker and Max Boot. It will be when the religious right gets tired of promises, promises, promises and no delivery, and the single issue anti-abortion voters either vote for a third party candidate or stay home. What doomed the Republican Party in the 2008 election was the Bush Administration's top-to-bottom, back-to-front incompetence, coupled with a dozen or so too many corruption scandals.

Which isn't to say that, within the foreseeable future, I won't be writing pretty much the same thing about a future Democratic administration....

Friday, December 5, 2008

Bush Didn't Make Any Mistakes, But Obama Should Learn From Them


As part of his continuing series of columns in which he demonstrates his eagerness to be invited to Bush's new Dallas home for supper, Michael Gerson shares more thoughts on the incoming Obama Administration.
Part of the appearance of security is rooted in seven years without additional terrorist attacks in America - itself a triumph against violence. It is difficult for a leader to take credit for a negative achievement - for the absence of failure. But here credit is due.
Apparently we're talking about international terrorism, in which case the seven years Gerson sees as warranting credit to Bush represent almost as much time as the eight year period between the first and second attacks on the World Trade Center. Gerson's correct that the passage of seven years doesn't justify complacency, but so far Bush's track record isn't better than Clinton's. If a terrorist attack were to occur in 2009, is Gerson more likely to pen a column describing the failure of Bush's policies, or to accuse Obama of taking his eye off the ball? As if Obama had warnings from the outgoing administration about the threat of al-Qaeda, and a memo on his desk declaring that they intended to attack within the United States, but focused on other priorities?

But there's another way to look at this: After supposedly ramping up to deal with large-scale terrorist attacks, the consequence of which could mirror the effects of a natural disaster, how did the Bush Administration perform? If anything should move us away from complacency, it's that track record.

Gerson sees the Congressionally approved tools used to combat terrorism as non-controversial, but finds room to learn from Bush's excesses:
Yet some methods designed for exceptional cases, such as waterboarding, were ethically disturbing and eventually counterproductive - causing self-inflicted ideological wounds in a largely ideological struggle.
I had almost forgotten that torturing people is "ethically disturbing". It's good to have a "compassionate Christian" around to remind us of that.
And there is little doubt that some administration claims of executive power invited a judicial backlash and undermined the power of future presidents.
Others might argue that the level of judicial deference to Bush is more problematic than the few cases that went against him. Gerson's right that future Presidents will have to remember that their office has limits, and those limits will at times be enforced by the courts. But he's confused about the source of those limits, as they in fact arise from a document the President is sworn to uphold, the Constitution. Gerson continues to explain the consequence of Bush's extra-constitutional actions:
If the administration had sought congressional backing for military commissions in 2001, and later for rules to hold combatants, the resulting legal framework would probably have been upheld by the courts - and would probably have been closer to administration goals than the eventual result.
So had Bush respected the Constitution and separation of powers, and acted accordingly, there would have been less litigation and the outcome would have been closer to what he wanted? That's the consequence Gerson sees from a "judicial backlash [that] undermined the power of future presidents"? The horror!

Gerson is apparently concerned that "enhanced" forms of interrogation won't be available to the CIA:
Or should the CIA be allowed to employ still-classified "enhanced" techniques short of torture? During his campaign, Obama promised the universal application of the Defense Department approach - but that is easier for a candidate than a president to pledge.
Sure, and Obama will have access to classified information that will help him make that assessment. But if we look at the interrogation techniques that worked in finding and killing Abu Musab al-Zarqawi, not only was torture unnecessary, by all appearances it would have been counter-productive. If one is needed, the fact that the result of the investigation was a bombing run intended to kill al-Zarqawi is a reminder that warfare carries a very different set of ethical balances than peace. But it's one thing when you are forced to make tough decisions that challenge your values due to the realities of war, and quite another to repeatedly make ethical concessions out of loyalty to a particular politician or administration without examining the reasoning behind those policies or considering their efficacy.
The hardest issues concern detained terrorists. Guantanamo will and should be closed as a public diplomacy nightmare. Perhaps half of the detainees will be sent home, leaving about 100 exceptionally dangerous men.
Well, so far that doesn't sound very hard. Why, though, do we still have 250 detainees at Guantanamo if it's so easy to sort out the "really bad ones" from the rest, and to send the others home?
The Obama administration will need to decide on a format for trials - much improved but politically discredited military commissions, ordinary civilian courts or some kind of national security courts created by Congress and supervised by the federal judiciary.

But the administration will not be able to try everyone. Some detainees will be too dangerous to release but too difficult to convict in a normal court setting using unclassified evidence. And any president will need the ability to hold and question newly captured terrorists outside the procedures designed for American criminals.
The reality is that you're unlikely to find any of that 100 who cannot be convicted and sentenced to life in prison based upon less sensational charges that don't require public disclosure of classified evidence or investigative technique. Remember John Walker Lindh, who if convicted at trial could have received up to three life sentences plus an additional 90 years in prison? There are many charges that can be brought against those defendants that will prevent them from ever again stepping outside the walls of a federal prison.

But let's assume for a moment that there are a few whose trials would somehow require public disclosure of material that would undermine our continuing efforts to fight wars and combat terrorism. That no number of court orders or protective measures could allow a fair trial without disclosure of that information. What would Gerson suggest then?
Unless Obama returns to a simple exertion of executive authority, he will require congressional authorization to detain people.
So Gerson is suggesting that Obama can spare himself a lot of headaches and better protect the nation by eschewing Bush's unilateralism in favor of constitutional process?
And this will expose a major tension between the new president's military responsibilities and the views of supporters who believe that detainees should be held only in preparation for trial.
Assuming, in fact, it's necessary for Obama to request extraordinary power in relation to some of the detainees. But you know what? There aren't many Obama supporters who actually fit the description Gerson provides - there may not even be any. The vast majority of Obama's supporters have always acknowledged the reality of the situation. Extending habeas corpus rights to detainees held in U.S. prisons is not the same thing as saying "detainees should be held only in preparation for trial" - it relates to whether or not detention is justified. It's a check on abuses and the potential for abuses. You shouldn't have to be much of a student of history to understand why the Founding Fathers were sufficiently concerned about that potential that they inserted habeas corpus rights into the body of the Constitution.

Wednesday, December 3, 2008

Governing Like Bush?


Michael Gerson's the latest to pen an "OMG! He's Just Like Bush!" column about Barack Obama - the type of column that suggests that his only sources of information about Obama are party memos and McCain's campaign ads.
Conservatives have generally feared that Obama is a closet radical. He has uniformly voted with liberal interests and done nothing to justify a reputation for centrism.

Until now.
Because there is no evidence that Obama is a cautious politician with a history of working from consensus and not making waves. Oh, wait. I guess there is plenty of evidence if you base your analysis of Obama's record on, you know, his record. I believe Larison overstates his case in respect to the implications of this:
Most people in the broad “middle” seem to be relieved by Obama’s moves in the last few weeks, so I have to conclude that they don’t have much of a problem with conventional Washington thinking, either. The majority is not just getting the government they deserve, but apparently it is also the government they want. When it fails them, as it is going to do, I don’t want to hear them complaining about the problems of the status quo.
Our system is constructed to impede radical change. If you want disappointment, elect your ideological hero in the form of a Dennis Kucinich or a Ron Paul, and see how his agenda for reform never even gets out of the starting blocks. But that aside, it's always been readily apparent that Obama's far from being the socialist revolutionary the McCain campaign, and portions of the right-wing punditocracy, attempted to argue. But back to Gerson:
Obama's appointments reveal not just moderation but maturity - magnanimity to past opponents, a concern for continuity in a time of war and economic crisis, a self-confidence that allows him to fill gaps in his own experience with outsize personalities, and a serious commitment to incarnate his rhetoric of unity.
Again, which part of this wasn't apparent from Obama's record?
Obama is benefiting from being the only player on the stage - all his pretensions of moderation could be quickly undermined by a liberal Congress, unhinged by its expanded majority. And Obama's social liberalism could still turn Washington into a culture-war battlefield.
I suspect that Gerson means this as a caution, or as a distinction from G.W. - But if you look at the history of G.W.'s administration, perhaps instead he's warning us that Obama's first term could look like G.W.'s administration, during his first eight months and starting again with his reelection, where his popularity plummeted and he ran both his administration and (with their active complicity) his party into the ground.
Though Obama's campaign savaged the administration as incompetent and radical, Obama's personnel decisions have effectively ratified Bush's defense and economic approaches during the past few years. At the Pentagon, Obama rehired the architects of President Bush's current military strategy - Gates, Gen. David Petraeus and Gen. Raymond Odierno. At the Treasury Department, Obama has hired one of the main architects of Bush's current economic approach.

This continuity does not make Obama an ideological traitor. It indicates that Bush has been pursuing centrist, bipartisan policies - without getting much bipartisan support.
Good grief, does Gerson pay attention to anything? When Obama launched his campaign, we were told of the superiority of Bush's war policy, and that Obama's call for ending the war and fixing a date for withdrawal of the troops was defeatism that would reward terrorists. Around that same time, Bush brought in Gates to replace the disastrous leadership of Donald Rumsfeld and within months "every single one of the top commanders running the war ha[d] been replaced." Bush has since negotiated a timetable for the withdrawal of U.S. forces from Iraq. That is, in the face of significant public opposition to his war and his policies, Bush shifted his position from his prior (failed) partisan policies to something to what he would formerly have described as letting the terrorists win.

Gates was appointed by the Senate in a 95-2 vote. When Bush started moving from partisanship toward the positions shared by the majority of Congress and the majority of the American people, he got plenty of support. It isn't Obama who has shifted on these issues - it's Bush.

In terms of treasury, Gerson is apparently talking about Timothy Geithner. There's good reason to believe that Geithner has worked with Henry Paulson to fashion the response to the present crisis in the financial industry, but... you know, funny thing, you would expect the president and CEO of the Federal Reserve Bank of New York to be involved in this sort of crisis. Although I am not at all impressed with Paulson's inconsistent approach to this crisis, or his tendency to indiscriminately and unconditionally throw money at banks while refusing to hold bank executives responsible for their incompetence, he's clearly been given a lot of discretion to respond to this crisis. To some degree you have to credit Bush with giving him that discretion, but Bush's desperation is hardly reflective of centrist policy. In normal times, the political center would be horrified by what Paulson has been doing - actually, it's hard to imagine any segment of the political spectrum that wouldn't be horrified. So again, this is a horrible example of Bush's supposed centrism.
Particularly on the economy, Bush has never been a libertarian; he has always matched a commitment to free markets with a willingness to intervene when markets stumble.
I'm not sure what Bush has been "on the economy", other than a failure by the measure of the political left, political right, job market, stock market, housing market.... But I'll grant, he's no libertarian.
Third, Obama is finding the limits of leading a "movement" that never had much ideological content.
This notion of a "movement" seems to emerge from two separate phenomena - the fact that some individuals and loose-knit groups projected their own political goals onto Obama (as, frankly, happens with pretty much any new, charismatic political leader who builds a coalition sufficient to win a national election), and the caricature advanced by people like Gerson. But you know, there's one person whom I've not once heard speak of Obama as a leader of a cohesive "movement" - Barack Obama. And there's a guy who has been willing to disappoint large groups of his supporters on issues such as Iraq policy and FISA, even before he was elected. (Can Gerson guess his name?) But then, Gerson was apparently taken surprise that Obama reappointed Gates, despite, you know, Obama promising to reach across the aisle when composing his cabinet.

Reappointing Gates is also politically savvy, as it makes it harder for Republicans to blame Obama if the Iraq phase-down goes poorly. But whatever Obama's motivations, take a step back and think about what it means for Gates to be accepting this reappointment. He had the alternative of cashing in, big time with a book deal, private sector jobs... think Cheney at Halliburton. It's a testament to his character that he's continuing in the job, and a testament to Obama that he's again willing to disappoint supporters who wanted a clean break from past war policy in order to retain somebody who may in fact be the best available choice for the job. So with regard to Gates, although my reasoning is different, I'll accede to Gerson's conclusion - That's centrism we can believe in.

As for Gerson's having his hopes raised by Obama's "disappointing the ideologues", he may be onto something. After all, had Bush been more willing to stand up to factions exemplified by PNAC, the Club for Growth, the domestic energy industry, etc., his administration might not have been such a miserable failure.

Monday, December 1, 2008

More On The Financial Mess


The AP covers how, in 2005, the Bush Administration's contemptuousness of regulation and deference to lobbyists led to its rejecting regulations that could have helped diminish the bad lending practices that contributed to the housing bubble.
The Bush administration backed off proposed crackdowns on no-money-down, interest-only mortgages years before the economy collapsed, buckling to pressure from some of the same banks that have now failed. It ignored remarkably prescient warnings that foretold the financial meltdown, according to an Associated Press review of regulatory documents.

"Expect fallout, expect foreclosures, expect horror stories," California mortgage lender Paris Welch wrote to U.S. regulators in January 2006, about one year before the housing implosion cost her a job.

Bowing to aggressive lobbying — along with assurances from banks that the troubled mortgages were OK — regulators delayed action for nearly one year. By the time new rules were released late in 2006, the toughest of the proposed provisions were gone and the meltdown was under way.
Also, CJR covers a Wall Street Journal article observing that, while the financial industry is presently being given a free pass for the incompetence of its management, it has a lot more in common with the auto industry than Congress has so far acknowledged:
For their part, banks have found lots of causes for their predicament aside from their own failings. The crisis, they have argued, is down to an impossible-to-predict perfect storm, predatory hedge funds, panicked investors, unrealistic accounting rules and economic changes that emerged so quickly there was no way to be prepared for them.

If only. The reality is the crisis is due to bad lending and investment decisions. And those, after all, form the core of the banking business. In auto terms, it’s as if banks designed cars that suffer from catastrophic mechanical failures, or can’t be driven during snow storms.
CJR concludes that the author is "right to point out there’s more urgency with fixing the banking system, and right to point out that doesn’t mean they should come out looking the same."Bush

Tuesday, November 4, 2008

Paulson's Got Some Explaining To Do....


CJR looks behind the claims that Goldman Sachs didn't benefit from the AIG bailout, and finds that's not actually the truth. And it gets worse:
The AIG bailout, it is now apparent, is basically a pass-through from taxpayers to the counterparties. It is clear the tax money is barely stopping at AIG for a cup of coffee.

Even AIG’s former chief Hank Greenberg, not exactly Ralph Nader, says the bailout is going straight to Wall Street banks on the worst terms.

* * *

Can the U.S. get a better deal? I have no idea.

But what strikes me as utterly unacceptable—a true scandal—is that the recipients of U.S. taxpayer funds in the AIG bailout are not even disclosed. We pay them, and we don’t even get to know who they are? Has this ever happened before?
This is disgraceful, and something Congress should remedy.

Sunday, November 2, 2008

The Worst Government Money Can Buy....


Whatever the outcome on Tuesday, let's hope it's at least marginally better than what we're continuing to suffer under Bush. We've seen the harm caused by Bush's many incompetent appointees, and now we're being, in essence, robbed by one of his few competent appointees.
The swindle of American taxpayers is proceeding more or less in broad daylight, as the unwitting voters are preoccupied with the national election. Treasury Secretary Hank Paulson agreed to invest $125 billion in the nine largest banks, including $10 billion for Goldman Sachs, his old firm. But, if you look more closely at Paulson's transaction, the taxpayers were taken for a ride--a very expensive ride. They paid $125 billion for bank stock that a private investor could purchase for $62.5 billion. That means half of the public's money was a straight-out gift to Wall Street, for which taxpayers got nothing in return.

These are dynamite facts that demand immediate action to halt the bailout deal and correct its giveaway terms. Stop payment on the Treasury checks before the bankers can cash them. Open an immediate Congressional investigation into how Paulson and his staff determined such a sweetheart deal for leading players in the financial sector and for their own former employer. Paulson's bailout staff is heavily populated with Goldman Sachs veterans and individuals from other Wall Street firms. Yet we do not know whether these financiers have fully divested their own Wall Street holdings. Were they perhaps enriching themselves as they engineered this generous distribution of public wealth to embattled private banks and their shareholders?
Meanwhile, bailout money is being used to fund astronomical "bonuses" for the employees who ran their companies into the ground. In the U.K. they saw that possibility coming, and thus forbade it as part of their bailout package. Here Paulson saw it coming as well, and made sure that the recipients of taxpayer $billions had a green light to shovel taxpayer money into their pockets.

I can only hope the next President tells companies like Goldman Sachs, "We appreciate that you needed to fritter away the bailout money we gave you in order to pay bonuses to the people who bankrupted you. And don't worry - we're still here for you. Yes, if you need an additional penny of taxpayer money to stay afloat, we'll help you be taken over by a competent institution in the manner of Merrill Lynch, or help you enter the bankruptcy process in the manner of Lehman Brothers. Feel free to ask, any time."

Saturday, September 20, 2008

The Bailout


Paul Krugman shares some skepticism about the financial system bailout:
I hate to say this, but looking at the plan as leaked, I have to say no deal. Not unless Treasury explains, very clearly, why this is supposed to work, other than through having taxpayers pay premium prices for lousy assets.
He contrasts the present bailout with the S&L bailout, noting that there is "nothing that gives taxpayers a stake in the upside, nothing that ensures that the money is used to stabilize the system rather than reward the undeserving."

But I suspect that's the point of the plan.

Thursday, August 14, 2008

Protecting Democracy


The Washington Post offers a curious, unsigned editorial that is in my estimation unduly credulous of Mikheil Saakashvili. Although not entirely endorsing his claims, the Post conveniently drops from mention the dubious claim that Russia tried to bomb a BP pipeline. They don't share his discredited claim that the U.S. military was going to take control of Georgia's ports and airports - the type of overstatement that casts a shadow across anything he says and perhaps illuminates the type of self-delusion that could have caused him to believe that the U.S. military would back his venture even if everybody told him otherwise.
Part of the blame-the-victim argument is tactical - the notion that the elected president of Georgia, Mikheil Saakashvili, foolishly allowed the Russians to goad him into a military operation to recover a small separatist region of Georgia. Mr. Saakashvili says, in an article we publish on the opposite page today, that the facts are otherwise, that he ordered his troops into action only after a Russian armored column was on the move. If that's not true - if he moved first - he was indeed foolish, and if Georgian shelling targeted civilians, it should be condemned.
Now, normally I would be fully prepared to accept that Russia "moved first" or did something exceptionally provocative. And it's clear that Russia was prepared for Georgia's military action. But I am to believe that all of this occurred beneath the notice of the U.S. intelligence community and the U.S. military (including advisors posted in Georgia), and Saakashvili didn't feel obligated to inform them of his detection of Russian troop movements or even of his own intentions before initiating his military action. The Post is correct that the alternate version of events - the one consistent with the story given by the U.S. government, U.S. military, and U.S. intelligence - would make Saakashvili look foolish. And if Saakashvili's story is true, it makes the U.S. government, U.S. military, and U.S. intelligence look foolish.

So why not take a step back and give us an analysis of which side - which of the two allies - is most likely lying? And provocations or not, can we truly believe that either the U.S. or Georgia (so capable of detecting Russian troop movements) overlooked Russia's build-up? It seems far more likely that Saakashvili believed G.W.'s hype - and that either Russia would be cowed by the idea that the U.S. military would rush to Georgia's aid in the event that his incursion was repelled, or that the U.S. military would quickly force a Russian retreat. Which brings us to the rest of the editorial:
But if the charge is that the Bush administration encouraged Georgia's yearnings for true independence, the verdict surely is "guilty" - just as when the Clinton administration encouraged Georgia under Eduard Shevardnadze and as the first President Bush welcomed the freedom of Warsaw Pact nations when the Berlin Wall fell in 1989. Now we are told that Russia's invasion last weekend proves the improvidence of this policy: The United States should have helped Georgia to understand that it lies in Russia's "sphere of influence," beyond the reach of American help.
No. What it shows is that the United States should not be suggesting to small, weak countries that it will help them militarily when it does not intend to do so. It also shows that you can meet every standard the U.S. wants - build up a military you can't afford, send a huge percentage of your armed forces to support a U.S military action, create a "flat tax" structure consistent with various U.S. right-wing ideologies, etc. - and still not be important enough to merit military intervention. (And democracy's all about voting and economics, right? So we should overlook little transgressions that don't appear to much matter to the Bush Administration.)

But today, Fred Hiatt and friends don't like realpolitik:
At first blush, that may sound like common sense. What is Georgia to us, after all, far away and without natural resources? And yet, where would the logic carry us? Poland, too, used to be in Moscow's "sphere" -- and Hungary, Estonia, Lithuania, and on and on. Should they, too, bow to Vladimir Putin? Why not Finland, while we're at it? You can quickly begin to see the reemergence of a world that would be neither in America's interest nor much to Americans' liking.
With all due respect to the "slippery slope", failing to draw a line in the sand on the northern border of Georgia doesn't mean we won't draw a line in the sand somewhere - just not there. More to the point, where's the cry for democracy and freedom in Taiwan, where the U.S. constantly tiptoes around China's sensitivities? What about non-democracies gripped by humanitarian disaster - the Darfur region, for example. Now, I think it's obvious that Russia wanted this demonstration of force to serve as a warning to other nations on its border, but it's simply not the case that the United States can or should intervene militarily whenever a democracy is engaged in a political battle with... whatever classification we are giving to Russia's government this week. (If Venezuela's democracy is threatened, will the Bush Administration intervene to support it? Or celebrate.)
If a democratically elected Ukraine chooses not to join NATO -- and Ukrainians are divided on the question - NATO will not force itself on Ukraine. But if Ukrainians -- or Georgians, Armenians or anyone else - recoil at Russia's authoritarian model and choose to associate with the West, should the United States refrain from "egging them on"?
No, by all means, invite them to join the West, associate with the West, emulate the West.... Just don't suggest to them that their admiration for and emulation of the West is going to result in their falling under Western military protection in the event of an armed conflict with a neighbor - even one that doesn't have a large military force and nuclear weapons.
How, and how effectively, the United States can support those aspirations inevitably will vary from case to case and from time to time, and supporting those aspirations certainly won't always involve military force. But for the United States to counsel a "realistic" acceptance of vassal status to any nation would mark a radical departure from past principles and practices.
Except for Taiwan? No, really, we can support the aspirations of small democracies while making it clear to them that they can neither excessively provoke military powers on their borders, nor (as appears to be more apt here) see a large, juicy worm dangled by a military power, just across the border of a contested region, and expect us to get them off the hook if they have the poor sense to take the bait. The Post reports that the U.S. government instructed Saakashvilii to demonstrate restraint, and seems to accept that had Saakashvili listened this wouldn't have happened.

What the West should do is keep its promises to the young, weak democracies it wishes to foster. If the Post believes the Bush Administration misled Saakashvili into believing that the U.S. Armed Forces would rescue him in this sort of confrontation, that's where they should direct their scorn.
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