7/13/11 - Child Porn at Justice - The Neverending Double Standard
We've known for years that when it comes to the U.S. Justice Department there has been, regardless of the party in power, two sets of rules for handling criminal behavior: one set of rules has US Attorneys going after any and every American for any infraction, however slight - never giving ground, always asking for the max, using any trick, breaking every rule and threatening families mafia style; the other rule applies to anyone employed by Justice, regardless of the law broken and however egregious the harm on their targets.
We hear these examples almost weekly. U.S. Attorneys withholding evidence, having witnesses lie, lying to federal judges - there is no means that can't be employed to achieve the end. Look no further than the Roger Clemens case where prosecutors blatantly violated a judge's order and offered evidence to the jury he ordered them not to present. This was the second time they had had done that in as many days. It simply doesn't get more blatant, arrogant and egregious than that. U.S. Attorneys are drunk with power and totally out of control
Lately Justice is engaged in a Nixonian cover-up involving the ATF ordering their staff - and average citizens - to violate a host of federal laws resulting in scores of deaths including a federal agent. The Attorney General, setting the tone for his staff, actually perjured himself to a House committee. And from his cool demeanor, his mendacity is not recently acquired. Holder's Acting ATF Director operated a program where dozens of people died and the man is not fired. How could he be when he's one of the few people who could actually prove his boss - for the moment anyway - perjured himself. In fact, no lawbreaker at Justice is ever fired. They're reassigned, or after a period of time, allowed to resign. In general, acts that average Americans are prosecuted for routinely go unpunished if committed by a Justice staffer.
But never did we think that US Attorneys possessing child pornography, an issue that Justice claims is of paramount federal importance, would not only go unpunished, but actually unreported. It's simply covered up. The Assistant US Attorney in question admitted that he "spent a significant amount of time each day watching pornography." And when they checked, lo and behold, child porn. He was quietly allowed to resign. No indictment, no perp walk, no press release, no sex offender registry. Just a quiet cover-up. Most shockingly, Justice refuses to release the Asst US Attorney's name. How do we know this? Because Sen. Grassley asked Justice for internal investigations that they closed and had not reported publicly. In that haul was this child porn case.
Grassely is now asking Eric Holder why this man wasn't prosecuted. Thus far, Holder has refused to answer. There's not two sets of books at Justice? One for them and one for us? When will Congress realize what every major police department in this country knows: you cannot let the police police themselves. Ask Rep. Issa or Sen. Grassley if they believe Justice's ability to monitor its own criminality is sufficient. Justice has proved time and again they will not go after their own. Congress needs to create an outside independent mechanism to do just that. There is no Justice unless there is justice for all.
Thanks to Rudy Veritas reader Peter F. for bringing this to our attention.
These are the links and Sen. Grassley's letter:
CHILD PORN at DOJ ABC NEWS - DOJ CHILD PORN
7/5/11 A Sick, Sick Nation
If there is any greatness left in this country it is to be found this week in the convergence of a lower-middle class mother from Florida and the once future President of France.
What could these two people, who couldn't come from more different worlds, have in common? They, each in their own case, helped expose the darkest side of our society, while giving a glimmer of hope to what was once a great system of justice.
I almost posted on here a few weeks ago this question, "What is the national obsession with this dead baby case in Florida?" I still have no answer to that question but no case since the O.J. trial has galvanized cable news the way this one has. Why a local murder case in Florida would be of interest to someone in California or Maine is simply beyond me. But it's a mute question at this point. A question without a reasonable answer.
It goes without saying that this violent death of the little girl is incredibly tragic. We throw that word around a lot these days: Anthony Weiner is tragic, Arnold & Maria are tragic, Terry and Jenny Sanford are tragic. Those aren't tragedies. A vicious killing of a little girl is surely tragic. But the national biblical-like condemnation of this woman, Casey Anthony, is beyond any comprehension. The white trash spectators who spend their days waiting in line to witness a case they have no connection to and involves no national import is sickening. In their polyester shorts and wife beaters screaming, "Justice for Caylee," these people make us all ashamed to be Americans.
No one has a genuine right to comment on the wisdom of the verdict other than the jury. They sat through weeks of testimony and more importantly, were shielded from arguments, testimony and newspaper stories of which we all became aware. You can't unknow that which you know. Their environment is pure for the purposes of this case, ours is not. In the meantime this woman - inarguably a lousy person - underwent the most relentless abuse we can dish out in the 21st century.
On TV this evening Nancy Grace came very, very close to condoning vigilante justice against Casey Anthony once she's released. It was a very scary thing to watch. Time Warner, certainly making major bucks from her program during this trial, has to be careful with what's going out over their network. Her program makes a mockery of anyone's criticism of Fox News which had Sean Hannity defending the verdict and Bill O'Reilly presenting something close to a balanced analysis. The acronym HLN stands for Headline News. The key word being news. What goes out at 8 PM each night on HLN is something out of Network, for those of you old enough to remember that film. Paddy Cheyefsky could not have created a more loathsome, frightening example of ratings at all costs journalism. Not content to rail against the verdict, she proceeded to outline each of the jurors personal shortcomings, as though that is somehow relevant. This all from a woman whose victim bonafides, which seem to grant her this license to condemn everyone, has as many holes as the alleged rape victim's.
The not guilty verdicts in Casey Anthony's trial demonstrates two things: 1) Cameras in the courtroom are antithetical to our system of justice. The U.S. Supreme Court knows this and that's why they refuse to allow them in their court; and 2) Cable news is making it increasingly difficult to receive a fair trial. You think the over-the-top behavior by the prosecutors in her case was not influenced by the cameras? It's insane to suggest otherwise. It was surreal to watch cable news condemn itself for its coverage beginning five minutes after the verdict was announced. As though they didn't know this yesterday but somehow had a universal epiphany only once the jury spoke.
The verdict in this case notwithstanding, Casey Anthony was blessed and lucky to have a jury this thoughtful and that's why she was acquitted. That happens rarely anywhere and never in death penalty Florida. Cameras and cable news will soon bury any presumption of innocence in this country. Which brings me to the other case.
Dominique Strauss-Kahn was tarred, feathered and as good as sentenced within days of the incident at the Sofitel Hotel.
Take him off the plane, sure. Bring him in for questioning, you bet - it's a serious allegation. But then, the proper thing would have been to take his passport and have his attorney guarantee he will stay in the U.S. while the police and D.A. continue to investigate.
District Attorneys need to use good judgment and not be swayed by lynch mob theatrics or newspaper hysterics. Cy Vance didn't do that. He arrested the man, perp walked him, threw him in Rikers, had his ADAs make outrageous and inflammatory statements in court and then asked for outlandish bail requirements. The judges were no better for buying into all of this. His accuser now turns out to be the worst sort of person for any number of reasons: chronic and habitual liar, money launderer, opportunist, extortionist - perhaps not a prostitute, as if that improves her character dramatically.
We've heard over and over again, justice for the rape victim and justice for Caylee Anthony. This is a fundamental misunderstanding of what our justice system is all about and what the objective is in that courtroom. Yes, it's vitally important to bring the guilty party to account. But our entire system of justice is predicated on protecting the defendant, not the victim - or at least it used to be. The power that the state has in a courtroom is so vast and overwhelming (especially the federal government) that the most stringent protections need to be maintained to insure that the accused receives something resembling a fair trial.
Our system raises the bar so that the prosecution has to meet the highest of ethical standards and conduct while prosecuting a defendant. That may come as a shock to some of you who have been seduced by the Nancy Grace view of justice, but it's not and has never been the one we operate under. All those amendments to the Constitution never mention victims, they do repeatedly reference the accused. That's who the Framers designed these protections for. What was true in the eighteenth century is just as true today.
Our spineless Mayor, here in New York, said today that perp walks are wrong. This, after he said not four weeks ago that they were perfectly justified. Not a surprising turnround from a man who has no moral center or philosophical core. He's a Democrat, then a Republican and then an Independent - all within a decade. It's not shocking then that witnessing a seemingly guilty man perp walked is not repugnant to him. But when a not guilty man is similarly perp walked then it's unseemly. It either strikes your inner core as wrong or it doesn't. Having none, he's free to sway from side to side.
He went on to say that although he now opposes it, there's nothing he can do. Really? Perp walks are arranged encounters. The press is informed when and where and the perp is often slow walked to enable the cameras to get repeat shots. The Mayor can't order his police commissioner to stop doing this? Really? Bloomberg is such an on-going disgrace. He's the weakest man I have ever seen in a major political office.
My greatest fear is that the wrong lessons will be learned from these two outcomes. The lesson here is not that the system worked; DSK will have his charges dropped and Casey Anthony was properly found not guilty based on the evidence presented. The lesson here is that these outcomes are virtually unknown in our country. And especially in low profile cases where the defendant isn't white or wealthy. Hundreds of times each and every day defendants are convicted in bad circumstantial evidence cases or prosecutors conceal exculpatory evidence. That is the reality. Not that our system works, but how often it doesn't.
Sadly, nothing will change as a result of all of this. These two cases put a mirror up to who we are as a society, what our obsessions are and where we place our priorities. A small positive glimmer in the end, but generally further evidence of what a sick, sick nation we are.
7/1/11 DSK - An Anita Hill/Ray Donovan Moment
One has to be reminded at least a little today of Ray Donovan. While Dominique Strauss-Kahn has always been a womanizer, there has never been any credible accusation of force. So where DSK goes "to get his reputation back" is a pretty fair question.
Publicly withholding a rape accuser's identity - which started in the 1980's as an attempt to make the charge of rape easier to prosecute by allowing women to come forward more readily - has now been proven to be wholly outside the legitimate constitutional sphere of criminal justice.
I was opposed to this practice from the beginning. It has been said that rape is not a crime of sex, but rather one of violence. Fair enough. So why are the rules different than for any other violent crime? Is it humiliating to admit to having been raped? Sure. But nearly any victim of a violent crime finds the admission humiliating. Look at the lawyer in all the local NY newspapers who was a hostage in a liquor store robbery. This man escaped from his captors and then, in the words of the NY Daily News, "sobbed hysterically" - with a picture of him doing it. Now that's pretty humiliating. But no one would suggest for a second that this man's name be withheld. Or a grown man pistol whipped by some 16 year old punk. A very humiliating thing to admit. It must be awful to be the victim of rape. But it's a crime and if one wishes to make an accusation - in an open free society - you have to come forward publicly to do so.
Let's say it was not the district attorney's office who discovered that this woman was a money launderer, drug seller and extortionist. Her name being withheld pretty much prevented the news media, or a random citizen who might know her, from discovering or revealing her past and present behavior. Moreover, it is beyond rare to have a prosecutor blow up his own case . In almost every instance, the prosecutor would have withheld this info and let the case proceed (does the name Mike Nifong ring a bell). Only years later might DSK, having discovered this evidence, attempt to overturn a guilty verdict. The Supreme Court has, however, made that nearly impossible.
Who benefits from the identity of an accuser being shielded, beyond the accuser? Monkeying with the judicial process in the hopes of bringing about some societal good - more rape victims coming forward - is a perniciously bad precedent. Women's rights advocates argue that this would inhibit rape victims from coming forward. No, it would inhibit gold digging perjurers from coming forth. And that is only a positive thing.
We all remember the name Reade Seligmann of Duke rape case fame. But does anyone remember or even know the name of the lying woman who accused those boys? Nope. Or the Rutgers case. Or for decades the Central Park jogger who misidentified those boys and sent them to prison for years. This should be totally unacceptable. Can anyone argue seriously that this extra-constitutional protection afforded alleged rape victims encourages these episodes?
And what hath Cyrus Vance wrought? Yes, certainly justice for all. But look at the extraordinary damage Vance has caused by treating DSK like any other perp. The world financial system is perilously close to a domino like calamity. DSK was uniquely placed and qualified to handle, and hopefully solve, the Greek problem. This man was, in all likelihood, going to be the next President of France. Now the voters will probably be denied his tenure or at least the choice of electing him. And what of DSK personally?
Although not the major consideration, once you add-up all the legal fees, housing costs and sundries, this episode will cost the Strauss-Kahn family millions and millions of dollars. Is Vance going to reimburse? Of course not. And what of handcuffs, perp walks, Rikers, insane bail conditions and the utter humiliation that accompanies any criminal charge in our current system? Well, apparently he's just got to suck it up. Somebody somewhere is saying, "Serves him right for ________." What? Visiting the United States? Trusting African immigrant women? Generally being a non-criminal letch? Or just being a Frenchman?
The French were horrified by how we treat criminal suspects. I don't blame them. No one in this country is presumed innocent any longer. Ironically, we have traded places with the French. Their system used to be Napoleonic - guilty until proven innocent. Ours was the one where the defendant had rights and a presumption of innocence. An ignorantly complacent electorate coupled with a hostile Supreme Court has turned that all on its head.
There's no question this is a huge black eye for the new prosecutor. But in light of all this and the discovery of the HBO documentary footage in another failed prosecution, he took pretty decisive action: he fired the head of the Sex Crimes Unit, he immediately told the defense that this woman had lied and that they no longer considered her a credible witness and quite possibly, his office will agree today to much reduced bail conditions until they figure out where they go next in this case.
None of this excuses bad investigatory work and an outrageous rush to judgment. This is, whether we know it or want to admit it, an Anita Hill moment. Men have just as many rights as women constitutionally. There is also no monopoly of perjury to just one of the sexes. Women lie as witnesses and complainants just as much as men. This extra special protection accorded to alleged rape victims must come to a stop. This would at least be a first step towards restoring some balance.
6/28/11 - Never Too Much of a Good Thing
I thought that opponents of campaign finance laws, such as myself, would find interesting the hysterical editorial in today's New York Times. Their basic position is this: the way to combat too much money in elections is to infuse even more money, but at taxpayer's expense. I think it's the NYT that's upside down.
NYT: 1st Amendment, Upside Down
6/28/11 - Little White Cartons
There is a piece in today's New York Times describing the process by which Federal District Court Judge Denny Chin came to hand down a sentence of 150 years to Bernard Madoff. If you want to read an indictment of our criminal justice system, this isn't a bad place to start.
Let me just say as someone who was sentenced in federal court, that there is much wrong with the process. But chief among those faults is the notion shared by so many judges of punishment based on collective guilt. If you commit a crime you should be punished based on the severity and individual facts of your particular case. No one has a problem with that. I certainly don't. What I do have a problem with is this prevalent practice by judges to "send messages." It is despicable to screw around with people's lives by sentencing them in order to send some societal message.
In the Madoff case Judge Chin says,“A defendant should get his just deserts.” True. But he shouldn't get anyone else's either.
The story goes on, "The judge, explaining why he had rejected the defense’s request for a substantially shorter sentence, provided two reasons why the symbolism of a much longer term was important: to send the “strongest possible message” of deterrence, and to help Mr. Madoff’s victims heal."
Symbolism, retribution, healing and deterrence. What does any of this have to do with punishing a crime? Healing??? Really? That's how sentences in federal court are handed down, based on the soothing effect they might have? Why not make Dr. Phil an honorary federal judge and allow him to sentence people. He will do it much more convincingly then Denny Chin.
The Times piece goes on, "As Judge Chin listened from the bench, nine of Mr. Madoff’s victims described the devastation he had caused in their lives. Mr. Madoff rose and offered a lengthy apology, saying that he felt “horrible guilt.” He turned to face the victims, and apologized again. To Judge Chin, Mr. Madoff seemed sad, almost as if he were grieving. “But I did not believe he was genuinely remorseful,” the judge recalled."
The man turned himself in before anyone knew of his crime. He never objected for a second to a guilty plea and never tried to cut a plea deal. He told the authorities everything he knew and made no effort to hide the bulk of his assets. He detailed his acts and apologized to the victims. And Denny Chin says he wasn't "genuinely" remorseful. That is the canard every federal judge hangs their hat on. It's the lazy judge's approach to sentencing - "the defandant isn't remorseful enough."
"Moreover, any sentence of less than 150 years could be seen as showing him mercy. “Frankly, that was not the message I wanted to be sent,” he said. Judge Chin noted in the interviews that 20 or 25 years would have effectively been a life sentence for Mr. Madoff, and any additional years would have been purely symbolic. Yet symbolism was important."
Because why? Bernie Madoff, like some Christ figure, needs to die to suffer for the sins of all white collar criminals everywhere?
The worst part of the story was the absolutely idiotic statement made by Denny Chin regarding victims and friends. He says he received 450 e-mails from Madoff victims. "He also wrote that he had received no letters on Mr. Madoff’s behalf: “The absence of such support is telling.”
Yea, it's very telling that no one was willing to publicly proclaim their fondness for a man everyone - including the judge - was saying was the embodiment of evil on earth. Yea, sure, people want to line-up to receive death threats and worse for writing a letter to the court relating Madoff good deeds. Yes, it's incredibly telling no one wanted to risk death and harm to their family to write Judge Chin a public letter. How moronic!
The reporter, Benjamin Weiser, frames this story as one man's struggle to divine justice. What a load of crap. What this NYT piece is at the end of the day is another example of a judge giving federal prosecutors whatever they want. U.S. Probation advised the judge to give a 50 year sentence. The number 150 only existed as a crazy, outlandish request by Madoff's prosecutors. In the end, Denny Chin did what federal judges do 98% of the time: he gave federal prosecutors anything they asked for. How is that an agonizing profile in courage?
6/27/11 - Whither the CFB?
This is honestly not a rhetorical question, I just don't understand. As a non-attorney, I am curious how NYC's Campaign Finance Law is not in violation after the Supreme Court's terrific decision today in Arizona Free Enterprise Club? Here is a quote lifted from the Campaign Finance Board's website:
"When running against a high-spending non-participant, a participant can qualify to receive public funds at an accelerated rate, up to two-thirds the amount of the spending limit."
This is not a grant but an increase in the matching funds - exactly what the Supreme Court struck down today. The Arizona decision specifically struck down any provision that sought to "level the playing field" with extra matching funds. And yet I've seen no reference as to how this would affect NYC's program. Just asking.
UPDATE: Thanks to reader Danny B. for sending this WSJ article that addresses the vulnerability of NYC's Campaign Finance Law in the wake of the AZ decision:
NYC's Campaign Finance Law at Risk
ALSO ONE FROM the NYT:
NYT: Where to Now on Public Financing
6/24/11 - Thank You Gov. Cuomo
Just as history does not regard those Senators - primarily Democrats - who voted to reject the Voting Rights Act of 1964 as men of conscience, future generations of New Yorkers will not think well of the NY Senate Republicans who could only spare four GOP members to provide the majority for passage of New York's gay marriage bill.
But six men are deserving of great praise tonight. First, the four Republican senators who voted for the bill. This was not an easy vote and may in fact cost some of them their seats. It took tremendous guts. They are Stephen Saland, Mark Grisanti, Jim Alesi and Roy McDonald.
Next, bill advocates owe a particular debt to the eminent fairness of Majority Leader Dean Skelos. Sen. Skelos was no supporter of this legislation. But in the end, as he himself said, "The days of just bottling up things, and using these as excuses not to have votes — as far as I’m concerned as leader, its over with." He's right in what he says, but he could have very easily chosen to not bring the bill to the floor and there it would have died. This would have been in keeping with Senate practice on bills the majority does not favor. Sen. Skelos is clearly entitled to his vote, whatever it may be. As a leader he has a responsibility to allow others to cast theirs. He behaved in the best traditions of legislative leaders and went a long way to restoring the reputation of the New York legislature.
Lastly, and most importantly, none of this would have happened without Gov. Cuomo. I have said some very negative things in the past about Andrew Cuomo. To paraphrase Winston Churchill on the evening of the Nazi invasion of Russia, "No one has been a more consistent opponent of the Cuomos than I have for the last 25 years. I will unsay no word I have spoken about them. But all this fades away in the face of the spectacle now unfolding." Gov. Cuomo said he would do this and did. He had been previously opposed but realized he was on the wrong side of history and bravely changed his view. Contrast that with Barack Obama who was for gay marriage ten years ago (most people have forgotten that). Then he wasn't. And now who the hell knows. And for that matter, who cares.
I spent most of my life, as a gay man, being opposed to gay marriage. I felt I had sound and defensible reasons. I believed that as a minority in this country - maybe 7% of the population - that it was incumbent upon me and all gay men and women not to overly antagonize the remaining 93%; especially when the behavior we practice is so extraordinarily offensive to so many and repulsed based on religious grounds. But no group of people can live like that forever in a free country.
I came to realize a few years ago that my views on gay marriage were neither sound nor defensible. And therefore I did what I always try to do and be consistent in my thinking when it "evolves." If you can no longer defend your position, then the honorable man must acknowledge that and reverse course.
There are so few reasons these days to be a proud American or a New Yorker. But I am immensely proud of my state tonight and its leaders. There can be no question that on this issue nationally, tonight is a game changer. Thank you Gov. Cuomo and Sen. Skelos.
6/20/11 - Perverted Justice
I will never be able to write a more solid, thorough, cogent or unbiased explanation of how the sex offender industry in this country has run completely amok than that which appears in this month's Reason.com magazine. Perverted Justice
I implore you, even if the topic doesn't hold much interest, to read it. If you have any concerns about where this country's legal and criminal justice systems are headed, take a few minutes and read this piece. Just because the government is only violating someone else's rights today, doesn't mean they won't be yours tomorrow. Your comments - agree or disagree - are always welcome.
6/22/11 Line of the Day
The line of the day goes to Joe Scarborough of Morning Joe. In responding to John McCain's ever increasing hysterics on troop withdrawls in Afghanistan, Scarborough remarked, "There are more aides on Sen. McCain's staff then there are Al Qaeda in Afghanistan." Based on Leon Panetta's estimate that statement is not only not hyperbole, it's actually spot on. Really makes you think what 100,000 or 90,000 troops are doing there fighting fifty guys. You can't orate that kind of stark logic away.
6/22/11 The Fast & The Dubious - Your Lying Gangster Gov't at Work
How credible is Eric Holder's assertion that neither he nor any senior Justice Department official knew of the existence of ATF's Operation Fast & Furious? The answer is not very. He told Rep. Issa's committee in May that he had only learned of it a few weeks prior. That would mean that when a Border Patrol agent was killed with a weapon from the Fast & Furious program in December, no one briefed the Attorney General as to the precise nature and background of this man's death. Again, is that believable? It's actually inconceivable. Were it true, Eric Holder would make Alberto Gonzales look like Griffin Bell or Elliot Richardson.
But here's the reason you know he's lying and Issa and Sen. Hatch need to pursue this vigorously: he's not in the least upset that an agency head within his department had gone rogue. An operation of this nature, filled with political landmines and no one told anyone in the AG's Office? A program that went so awry that a U.S. government employee is dead and the AG isn't fit to be tied about it? It just does not pass any sort of smell test.
Watch Holder's reactions at the May hearing and judge for yourself whether he's telling the truth to a congressional committee. It was reported last night that the ATF Inspector General's report will take more than five months. It was also reported that the Attorney General's Office is hoping this matter will die quickly. See any connection?
Here's the ever growing problem within federal law enforcement. It is totally unaccountable to anyone. So let's say this Fast & Furious business is indeed scandalous. Who would investigate it? The Justice Department naturally. Who's ATF's parent agency, their boss? The Justice Department.
I have written here many times that the reason you never, ever hear anything about the Bureau of Prisons and the horrible physical conditions, atrocious medical care and brutal treatment of inmates, is due to the fact that from whom would you hear it? Naturally, the Justice Department - BOP's parent agency. You think they have an inherent conflict of interest in telling you that one of their component parts is terribly managed? No, of course not.
If you're skeptical that Holder is lying, why in the world would he be letting Acting ATF Director Kenneth Melson resign quietly this week (as quietly as this scandal will allow) if, as Holder implies, this man was running some rogue operation at ATF? Rep. Issa needs to slap this guy with a subpoena the minute his resignation becomes effective and haul his ass up before the committee.
But let's say Melson testifies and perjures himself regarding who above him knew about this. To whom would Issa send a perjury referral? You guessed it, the Justice Department. Who polices the police? In this case, all federal law enforcement would be scrutinized by Justice. We learned a long time ago here in NYC that letting the police police themselves always ends badly. Something needs to be done regarding this incestuous federal oversight.
More than ever, Congress needs to become aggressive - Gingrich era aggressive - in their investigations, subpoenas and refusal to fund certain agencies until their witness and subpoena demands are met. Defund the NLRB (I know, a whole seperate issue). Defund ATF until all this is fully explained to their total satisfaction. What harm could be caused by defunding ATF for awhile? Their mission has now morphed into letting illegal weapons be sold and transported, instead of preventing it. What harm could anyone claim would be caused under these new circumstances.
Imagine U.S. Customs coming up with the genius idea of letting terrorists smuggle in suitcase nukes and then not even bothering to track them. All in the hope that after they explode we can figure out their network by backtracking the debris. That, to a slightly exaggerated degree, was the knuckle-headed idea behind Operation Fast & Furious. But instead of nukes, ATF allowed known criminals to purchase vast amounts of guns and smuggle them into Mexico to be used by criminal gangs involved in the drug trade. Moreover, they never informed the Mexican authorities they were doing this. It's more than likely that many Mexican government officials were slain with guns from this program.
Eric Holder lied to congress and in all likelihood is engaged in some soft or hard cover-up. This needs to be investigated to the bitter end. I have so little faith in the tenaciousness of members of congress these days. But let's hope for once the election season, usually a drag on any action, brings some needed partisan impetus to this cause.
And by the by, what is it with the need to give these overgrown teenagers who populate the ranks of federal law enforcement these 'cool' names? Fast & Furious, I.C.E., etc. It's not enough these jack booted thugs are given outrageous salaries, benefits and weaponry that an invading army would envy? No, their fratboy egos require additional massage by these gangsta rap type labels. It's too sickening.
6/21/11 Mostly Correct Yesterday at the Supreme Court
I don't agree with much that emanates from the bench at the U.S. Supreme Court these days. June used to be a hopeful time for constitutional scholars and court watchers. These last few Alito years have been pretty dismal. But yesterday the court got two cases right, likely for the wrong reasons. They also got one very wrong.
In the biggest case of the day, the court said that no, you can't just make a vague, general claim as to who constitutes a class in a sex-discrimination class action lawsuit. Merely being a female employee at Walmart is not enough to entitle you to compensation or relief. There simply has to be more specificity to the action and its provable harm to the plaintiffs. That didn't exist in this case and the justices were correct in overturning the lower court. My guess is that most of the five in the majority just sided with Walmart out of a pro business propensity, not because of the lack of real harm to these women. But they were correct nonetheless.
The other decision worthy of cheering was the unanimous decision to toss the claim by a number of state's attorneys general that power plants were an annoyance and therefore the state could set its own environmental standards governing them - even if the plant was in another state. I absolutely oppose the regulatory action that the EPA is attempting to promulgate in this area but if there were to be an action it would be coming from the federal government, not the states. Again, I think most of the judges decided this based on their belief - which I share - that global warning is a hoax. Not out of any committment to federalism.
Of course it can never be a totally good day at the Supreme Court and there was a very troubling decision relating to civil contempt proceedings in child support cases. While Justice Thomas was intellectually correct that the state has no constitutional obligation to provide counsel in civil cases, the explosion nationally in judges jailing errant fathers for non-payment has taken this out of the ordinary civil matter. Jail is now a routine punishment for child support arrears. Disproportionately those men being jailed are poor and minority. Although this is not a race issue.
When a previously rarely used option - jail - is now becoming the routine, then this is no longer a purely civil matter. These are also not speeding tickets. These cases can be very involved and complex. No reasonable person would go into court on a child support matter that involves potential jail time without an attorney. That is, of course, unless you're poor. And then it's just judicial suicide.
The answer here is not, as Justice Breyer's attempts, to insure that states grant "substantial procedural safeguards." Rather, it's to work to prevent states from jailing these men in a purely civil matter. Yes, it's horrible that someone fathers a child and walks away from that responsibility. No question he should pay what he owes if he legitimately can. But there are stories all over the nation of squads of sheriffs and local law enforcement treating these men like Al Qaeda when they storm their homes to arrest them. You want to deny someone a drivers license who hasn't made a good faith effort to pay? Maybe I'd support that.
Everything lately in this country is lazy and half-assed. If you want to bring the harshest possible punishment - a loss of liberty - then be prepared for the responsibility of insuring that the proceedings are fair. Don't take the easy action - jail - and them claim this isn't criminal in order to get out of spending money on court-appointed counsel.
Jail in routine civil contempt matters used to be a rare consequence. And in that instance Justice Thomas has a point. But if it is to be used as the norm rather than the rare exception then you have to pony up the resources. Moreover, you have to guarantee that the proceedings are fair. Only appointing counsel in such matters can resolve that uncertainty.
6/21/11 - It's CityTime!
So all the newspapers in NYC today are reporting on the U.S. Attorney's announcement that most, not just some, of the $700 million spent by the City on it's unified payroll system, CityTime, was the product of fraud. This makes the black eye to the Bloomberg Administration that much purpler. When asked about this, the Mayor's spokesman said, " “Our Department of Investigation uncovered this fraud, bringing it to federal prosecutors, and we will be using all available avenues to recover any funding owed to the city. S.A.I.C. has been removed from the project, and substantial reforms have been made to the way large city contracts are managed.” This continued charade in pretending that the Department of Investigation had anything positive to do with this is akin to claiming credit for having discovered the barn door open two weeks after the horse ran away. While you may have been first, the usefulness and credit worthiness of that claim is zero.
Rather than doing their job in investigating this massive fraud while it was happening - in its genesis - they came to it after it was over and $700 million was wasted on fraud, and sought to claim credit. Why didn't they discover this years sooner? Two reasons: 1. Everyone knows DOI is totally incompetent, they uncover no scandal until long after it's over, their job is contemporaneous, not post facto; that's the job of a DA, not an internal criminal auditor; and 2. The chief backer and protector of these crooks is the current OMB Director, the Mayor's 'adopted son,' Mark Page. No DOI Commissioner was going to buck the Mayor's favorite staffer. So they never looked or questioned the billings. This, even after the NYC Comptroller and the Daily News pointed out glaringly that this thing was totally corrupt. Nope, DOI turned a blind eye for years. And for this they want plaudits.
The absoltuely galling aspect of this debacle is that the Mayor actually crowed last month that CityTime was operational. His point being, yea it was a massive rip off but it finally works. Only this man could have such a totally tin political ear to say something that stupid.
At his press conference, U. S. Attorney Preet Bharara mentioned half a dozen times that he wouldn't rest until the City got its money back. Not once did he or Commissioner Hearn explain why this was a federal matter. He never mentioned U.S. taxpayers or the interests of the federal government. And NY reporters being their usual selves, have never asked this question of any of his local non-federal related investigations. It seems to be that the justification always lies with the convictions. A conviction isn't proof of relevance or jurisdiction. As the Mayor's spokesman said, the first thing they did was turn it over to the U.S. Attorney. True, but why? The Manhattan District Attorney has ample jurisdiction. The NYS Attorney General probably has plenty. New York City is not some backward southern town where all law enforcement is too corrupt to be trusted. Why the U.S. Attorney? Why always the U.S. Attorney?
This dates back to a deal reached in 2002 between DOI and the U.S. Attorney's Office. In exchange for becoming essentially a subsidiary of their office, the U.S. Attorney's Office would look the other way anytime any Mayoral official became involved in one of their investigations. That is the reason why Preet Bharara has never gone anywhere near Mark Page. He was/is the godfather calling all the shots in CityTime and no one has touched him.
This is no proud day for DOI, Rose Hearn and Mike Bloomberg; press conferences to the contrary notwithstanding. What started as a meritorious $35 million plan by Mayor Giuliani to consolidate the City's vast, unwieldy payroll systems into something manageable turned into a gargantuan taxpayer ripoff with City officials either complicit or too lazy to see the signs. How bad was DOI's investigatory prowess? They so bungled this that two of the main players were able to throw them off long enough to flee the country.
I can say with 100% certainty this sort of thing would never have been possible during the Giuliani Administration. If for no other reason than Mayor Giuliani, while liking his budget directors very much, was never a captive to any of them. Mike Bloomberg has a Dwight Eisenhower attitude towards Mark Page, he can't do without him. This serves no one, least of all the taxpayers, well. How many more examples do we need before the consensus forms that this guy is a lousy mayor? I don't just mean the poll numbers; the citizenry has already tired of him in a big way. I mean the informed cognoscenti, they still think he's swell. It's always amusing to me to watch Bloomberg's arrogance trip him up. Did he really think the laws of physics were changeable? Did he honestly believe that his third term would end any less disastrously then every other mayor's? Sadly, he did. And now he's paying the price. Strike that, we're all paying the price. Today alone that cost is $700 million.
6/20/11 - I'm Just Saying
This past week two national studies were released that deserve comment. In the first, New York State is ranked as the "least free state" among all the states in the union. This study looked at personal freedoms, state laws and civil liberties violations. In the second, New York State is ranked last in terms of business competitiveness. Is it even remotely possible that these two things have some correlation at all? I'm just saying.
I discovered this weekend - while listening to the always informative Larry Kudlow - that White House Chief of Staff Bill Daley is not only a former Boeing board member but actually voted in favor of Boeing's South Carolina plant. This being the same plant that the National Labor Relations Board has targeted for eventual closure pending a kangaroo court hearing process. Can you even imagine what a halfway competent Republican nominee can do with that in a presidential debate? I'm just saying.
This weekend the NY Post published two charts showing the expenditures of the NYC Board of Education during most of the Bloomberg term. The budget has gone up by almost 50% during his tenure to nearly $18 billion annually. During that time the percentage of the budget per student for teacher salaries went up by almost 25% while the number of teachers actually declined. Moreover, the number of students also declined by 8%. So where did all that money go given a 50% increase in the overall budget? The chart shows that teacher fringe and retiree benefits more than doubled from 13.6% to 30% of the budget. Why? You can thank Mayor-for-Life Mike's ridiculous teacher contracts for that. Now, only after driving up the school budget by 50%, he discovers some fiscal religion and seeks to negotiate a tough contract and reform teacher prerogatives. Meanwhile, city taxpayers will be on the financial hook for these lavish giveaways for decades to come. He's the great manager, right? I'm just saying.
Also in the NY Post this weekend, Kyle Smith does a wonderful job of skewering the president and his latest non-violent explanation for the economic morass we find ourselves in. He blames ATMs and airport self check-in kiosks for displacing workers. Yup, the 30yo ATM is somehow causing this current unemployment rate and sluggish economy. Smith rightly points out that the president's logic would make the automatic dishwasher (mexican laborers) and the washing machine (chinese immigrants) equal culprits in explaining our current economic state. Have they run out of car metaphors in the White House? Boy, this is getting bad. I'm just saying.
I watched Los Angeles Mayor Antonio Villaraigosa make the rounds of east coast TV these last few days. First on Meet the Press and then today on Morning Joe. Wow this guy is unimpressive. I had no idea he was so bland and uninspiring as a speaker or national figure. All problems, according to him and his friends at the U.S. Conference of Mayors, can be solved by Washington pulling out of current military operations in Iraq, Libya and Afghanistan and sending that money to the states and cities for "education and infrastructure." When asked by NYT reporter Andrew Ross Sorkin where precisely this new money would be spent by the cities, he could only repeat like a mantra "education and infrastructure." It was like a zombie movie. But instead of the refrain "brains" you heard, "education and infrastructure." Watching his performance I could only think that he makes Richard Riordan look like JFK by comparison. I'm just saying.
One week. That's how long it took for Chuck Schumer to get back to Sunday press releases as usual. I mentioned previously how refreshing it was to have a Sunday evening and Monday morning devoid of press coverage from some made-up local issue that Schumer was exploiting on a slow news day. We can thank Anthony Weiner, Schumer's protege, for keeping the Senator under wraps. But there he was this week - letter grades for buses. Yup, not much else going on in D.C.: three wars; debt limit default; disastrous economy; 9.1% unemployment; two trillion dollar deficits and Greek contagion. It's a good thing all of that is under control so that our federal officials can focus on the other important matters like bus grades. Is anyone out there who has previously worked for Schumer willing to fall on his sword and create a media firestorm so we can get another delightful pause to his Sunday sideshow? I'm just asking.
6/15/11 - Dining with Rudy
I would have very much liked to have been a fly on the wall yesterday during the meals Rudy had with Govs. Perry & Christie. Rudy's law firm is based down in Texas so clearly Rick Perry keeps tabs on the Mayor. It's also a real player in Texas legal and political circles (the current AG is an alum). But what does cowboy, secessionist Rick Perry make of drag wearing, pro choice, pro gay rights Rudy Giuliani? Not much would be my guess. I think we've all seen this movie before. Gov. Perry sees Rudy very much as yesterday's news notwithstanding the poll numbers. Moreover, he believes Rudy is out of touch and off message with the voters generally and Republican primary voters specifically. Gov. Perry believes this is his time. Rudy had a great shot in '08' - blew it - and now it's time to move on to a fresh face, the thinking goes. Fresh being a relative term since Perry has been governor for ten years.
Rudy these days gets paid the same deference as aging cardinals and mafia dons. In fact, he's become his matinee idol - Vito Corleone - except not how he envisioned. Not in his prime feared and respected, but rather towards the end of the movie repeating the same warnings over and over again. The real juice and star power has moved slightly west of NYC.
With Gov. Christie it's so interesting for me to watch. This is 1994-1995 all over again with the roles reversed. Back then Rudy was the superstar newcomer and everyone came to City Hall to pay respects. Now the shining light of the Republican Party is west, not east of the Hudson.
One pundit yesterday said that Rudy's people are putting out the word that he is near to announcing his candidacy not because of any fire in the belly - trust me, there is none - but rather because he doesn't see anyone able to challenge Romney and he - Rudy - feels the nomination should not go uncontested. My goodness, how incredibly selfless and noble. All that time, money and effort - sloshing through the New England snows - in order to keep democracy alive in the Republican Party. I never knew Rudy cared this much about the average Republican primary voter.
Mayor Giuliani says he will announce something in August. By then we will know if Romney has this locked, if Huntsman caught fire and if Pawlenty flamed out. Further, we will know what Sarah Palin's plans are. The wild card here that Rudydom hadn't calculated on is Michele Bachman (and to some bizarre lesser extent, Herman Cain). She makes a mess of Iowa for everyone and it's unknown right now how well she will play in New Hampshire. She'll certainly play pretty well with an Iowa win - or strong number two - under her belt, however.
Somebody was asking me the other day what Rudy is up to. I said I didn't believe any of this was serious. But then he went to NH on the day of Romney's announcement and blasted him. Now that in and of itself didn't lead me to change my view. What gave me pause about that was I know that Rudy isn't running and he will do nothing to piss off the nominee of the party. Why? Two reasons: 1. He desperately wants a prime speaking spot at the convention; and 2. his business is partly predicated on the appearance of influence within the Republican power structure.
Giuliani Partners would fare considerably less well with a Republican president who had been left hooked by Rudy. So the fact that he's pissing on Mitt Romney may mean something is going on. But had I any money, I would be placing my chips in the no-go circle. He ain't running. He's just trying to find relevance in an electorate that will still kiss his ring out of deference and thanks but wants to move on to new leadership for 2012.
6/14/11 - Pawlenty Flinches
In prison - and much of urban America - when a tough guy wants to assess a new guy, he will fake a punch or head butt to the newbie. If the new guy blinks or flinches, you know he's no threat. Last night Gov. Pawlenty flinched, blinked and bent over and grabbed his ankles. If he ever left the straight and narrow path, he would be someone's bitch in prison in five minutes.
Here are last night's winners and losers:
Winner - Romney: No one even tried to lay a glove on him. His cool, calm demeanor coupled with his Romneycare/Obamacare answer served him well as front runner.
Winner - Huntsman: I thought it was a mistake for him not to show but I was wrong. The stage last night did not light anyones's fire. If Huntsman turns out to be a star in a debate he will shine compared to the other seven. Last night left much to be desired in terms of new ideas and presentation. Huntsman could conceivably zoom in the polls with a stellar performance at the next debate in August. Or he could flame out quickly ala Fred Thompson. The expectations for him will be very high.
Winner - Bachman: I told you 10 days ago she would be a great debater and not to be underestimated. She did not disappoint. For those, like me, who say that as long as Tina Fey draws breath Sarah Palin will never be president, Michele Bachman showed how you get SNL off your back - give a thoughtful, mature performance and soon they'll have nothing to lampoon you with. Sarah Palin, on the other hand, is the gift that keeps on giving for comics.
Winner - Perry: He's feeling pretty good today after watching last night's debate.
Loser - Pawlenty: Bland, cowardly and uninspiring. Except for John King's in-his-face moment, the perpetual smirk stayed afixed. Like I said, this will soon creep people out.
Big Loser - Sarah Palin: Maybe not next week or even next month, but soon the Tea Party will gravitate towards their natural leader Bachman and abandon the empty buffonery of Palin.
Losers - Gingrich, Cain and Paul: Gingrich and Cain are overt xenophobes and that won't play in 2012. Ron Paul didn't play his natural libertarian lines well. His message is much better than he presented it last night. However, his constituency is slavishly devoted and it probably won't matter. But he's not leaving the second or third tier anytime soon.
The non-Republican winner last night by a small margin was President Obama. Yes, Gov. Romney looked good, but Obama has become a good debater from his many Hillary losses. Nothing last night led me to see anyone besting him - even with the miserable record - in a one on one debate.
One personal pet peeve. When will these Republicans stop aping George Bush with these wimpish foreign policy answers about "deferring to the commanders." These Republicans are always bowing at the feet of Reagan. Well, I can tell you that not once in eight years did Ronald Reagan answer a foreign policy question by deferring to his generals. It's weak and indecisive. They should stop this Bush phony deference/punting but quick.
6/12/11 - The Debt We Owe Anthony Weiner
I did not think there was anything on earth that could prevent a Sunday Chuck Schumer press conference, short of him being in a coma. And in that event, I am sure, his office has prearranged contingency plans. But I was wrong.
It now seems that a major national scandal that - in its genesis - is of Sen. Schumer's making will keep him from the weekend microphone. As you may or may not know, Anthony Weiner is a creation of Chuck Schumer. He worked in his office, was picked by the Senator for the Council seat he won and was his choice to succeed him in the House when he won his Senate race against Al D'Amato.
There exists no ray of daylight on any policy issue between the two. Rep. Weiner has never bucked New York's senior senator on any matter at all. So when the man Chuck Schumer chose to fill his seat finds himself embroiled in the greatest scandal thus far of this young century, he not only demurs in a substantive response, he comes late to today's parade so as not to meet the press. Chuck Schumer shying away from a camera on a weekend? The NY cognoscenti would have said prior to today that was unthinkable.
The reason I dislike Schumer so much is the phoniness of his popularity. No citizen of our state can name a single piece of legislation attached to Sen. Schumer's name since he has been in the Senate. Not a one. His popularity in the polls is mainly due to his phenomenal PR machine. I used to work in PR so I respect the craft and those who are apt practitioners of it. But at its root, good PR has to be backed by some substance eventually. A good PR man can make you believe Goldman Sachs isn't evil for a little while. But because of its true nature, at some point no PR can make you like Goldman. Unless of course you're a Satanist.
There is no substance to the Schumer record. As Senator, just as when he was a congressman, he appears every Sunday (always a slow news day) and feeds the beast. He picks some seemingly pro-consumer, banal issue to rail against. Often the issue isn't even a federal matter within his legislative purview. The fascinating thing - which no newspaper has noticed - is that no legislation has been enacted as a result of these press conferences. He has had them every Sunday for the last 15 years. What is the net effect of all that ranting? Nothing. Occasionally he will introduce some bill a few weeks later. But they all die. Why? Because they were never intended to be enacted. They were designed for one thing, to get ink in Monday's paper. From that vantage point his success rate is near 100%. And the voters read their Monday papers or watch their Sunday 11PM news and think their senator is doing something. The fact is he does nothing. Shockingly, Kirsten Gilibrand is a more productive legislator than her mentor.
I said in the last election and will for all future ones, that the belief by the state Republican party that Schumer is untouchable is nonsense. They look at a 65% approval rating and wilt. A decent candidate (David Malpass) with some money could defeat Schumer once his record is revealed.
As for me, not having to see Sen. Schumer on the local news tonight or in tomorrow's paper ranting about some semi-contrived issue makes the whole Weiner mess redeeming.
6/12/11 - NYT to Pawlenty: You're Living in Dreamland
Why the panic and vitriol in the New York Times' editorial on Tim Pawlenty's tax plan? NYT: Tax Fantasia The editorial juxtaposed two interesting notions that politically stand zero chance of going anywhere: 1. The rich are not taxed nearly enough; and 2. we need a giant new stimulus plan.
The Times mocks Gov. Pawlenty's proposal to eliminate taxes on dividends and capital gains. The editorial's authors are deeply disappointed because Gov. Pawlenty's sound ideas no longer make him "reasonable" in their estimation. Only candidates committed to the status quo and this $4 trillion monstrosity known as the Federal Government can hope to see themselves portrayed as anything but wild-eyed fanatics in future NYT coverage.
It's funny how pundits and the eastern chattering class are always condemning candidates for not proposing new ideas and yet when they do, the roof caves in. What these types of attacks reveal to me is that even if Pawlenty's tax plan was shown to be revenue neutral, the NYT would still oppose it because the "rich" are simply not being soaked sufficiently. If somehow magically the federal government could be funded at current levels with the poor and middle classes paying no income tax and the "rich" paying 6%, they would still be aghast. You would see a NYT editorial calling for the government to increase its budget to $7 trillion and impose a 50% tax on upper income earners.
Enough is never enough. There's always more to be done. Always more areas of our lives in which the federal government can become involved. More wars to finance, more redundant social programs to fund (37 child nutrition programs), more state and local responsibilities to be subsumed or duplicated. More, more, more. They just hate the idea of people with wealth retaining the product of their labor. It's not that Pawlenty's proposal isn't "reasonable." His crime is in being bold and endangering the status quo.
6/11/11 - Shargel Complaint - Update
Just a brief update on my complaint to the Disciplinary Committee of the Second Department, Supreme Court - Appellate Division. They have informed me that they have received my complaint and will next be seeking a response from Jerry Shargel. Further, they tell me that I will receive a copy of his response and have an opportunity to respond. As soon as I receive his letter to the Committee, I will post it here.
6/10/11 - Paying To be Imprisoned - Part II
Here is the New York Times' follow-up to their story I posted here earlier (scroll down). I think people's reactions to the idea of saddling ex-cons with a large debt and refusing to release them from probation until it is payed, has caused many to wonder why this is really being done. Out of Prison, Into A Vicious Cycle of Debt
6/10/11 - Why Obama is Out of Economic Fixes
Try imagining it's 1978 and Leonid Brezhnev is sitting atop the most powerful military on earth. Let's suppose the General Secretary surveyed the non-military part of his empire and didn't like what he saw. A country that could not produce a working pencil, toaster or automobile. A country that was steadily incapable of feeding itself. And let's say Brezhnev knew what Ronald Reagan knew, which was that this situation could not go on much longer. So Brezhnev would turn to his trusted advisors for advice as to how to fix this economic system. Guess what would happen? He would receive a steady flow of 5-year plans for greater collectivization of the nation's pencil factories and more, not less, state intervention in the economy. He would get this advice because that's the only advice they were capable of giving. Brezhnev would have nowhere to turn within his system to get the advice he needed to fix the problem (of course communism was at its core unfixable).
Even Mikhail Gorbachev could not do what he actually professed he wanted to do; modernize and open up the system. He was surrounded by old school Stalinists. It took Boris Yeltsin's willingness to essentially blow the whole thing up to finally begin achieving some result.
Barack Obama finds himself in the same state as our fictional Brezhnev. Obama surrounds himself with true believers - government good, free market bad. It is to these men and women he now turns to try and understand why their statist policies have failed so abysmally. First, they don't know; everything they learned at Harvard told them this should be working. Second, they want dearly to recommend keep doing more of the same - more regulations, more government control of the economy, and finally another one or two trillion dollars in stimulus. They are desperate to heed Paul Krugman's advice. But the political realities of the situation tells them that's impossible. So they got nothing else to offer.
Barack Obama may have many positive character traits. His worst however is his stubbornness. Rather than admit this experiment failed, his reelection slogan appears to be, Just You Wait. He is convinced that his doubling the national debt, tripling the annual deficit, increasing government employees, nearly crippling new energy exploration and issuing a mountain of new federal regulations will pay off in the long run. There is no one who can convince him otherwise. Mainly because, like Brezhnev, he only hears day-in and day-out from like-minded individuals. The White House is out of tricks and seemingly paralyzed in the face of the daily awful economic news. And the president is at a loss to issue any coherent reassurance.
One day we're a car in a ditch. Next we're a patient undergoing surgery. Then we're adrift at sea and facing Perfect Storm like headwinds. Lastly and most gruesomely, the economy is the victim of a vicious auto accident involving a large truck slamming into it and mangling its legs. YEESH! Who makes up these metaphors in the White House?
These attempts at anthropomorphizing the economy are what is now substituting for policy in this administration. It's not that their policies haven't worked, they believe. It's that they haven't found the right automotive metaphor to properly explain why they haven't worked yet. In Obama's view it's not they who are wrong, but us for not understanding the nuance of of how trillions of dollars of debt and spending can produce no jobs and 1.8% growth. Apparently this is sophisticated economics and we're just too stupid to understand its subtleties.
You don't have to be Milton Friedman or Paul Samuelson to get that 7 trillion dollars of debt has done nothing constructive for the country. I don't need a Nobel Prize to figure that out. But apparently our Nobel Laureate president sees things differently. It will be interesting to watch how, without altering course, he tries to continue to explain this positively through 2012.
6/9/11 - Pawlenty's Tax Plan: Halfway There
Like Paul Ryan's Medicare offering, Tim Pawlenty deserves serious praise for laying out a detailed policy proposal on a very crucial subject. Also, as with Ryan, I take some issue with a major underlying premise in the package.
First, here is what he got right:
- a flat corporate tax rate of 15% with no deductions; and
- eliminating the dividend tax, the estate tax and taxes on capital gains.
I have been in favor of a flat personal income tax for over 25 years. My preferred proposal would eliminate all deductions, except possibly a deduction to purchase health care, if that is away around Obamacare. In my plan there would be a graduated flat tax that would enable every citizen to complete their tax return in under 10 minutes. I would propose three rates: 5% for those earning less than $50,000; 10% for those earning less than $150,000; and 18% for those making more than $150,000. You earned $250,000 last year? Multiply 250K times 18% and deduct from that figure whatever you paid through your payroll tax during the year. The result is your tax liability or refund.
Pawlenty's proposal is slightly different in terms of rates and deductions. But here's the big philosophical divide between me and Gov. Pawlenty - as well as most in my party: I believe everyone should pay some tax. Under Gov. Pawlenty's proposal, the 45% of current taxpayers who pay no income tax whatsoever, would continue to pay zero taxes - he actually hopes to increase that number. President Obama routinely talks about how many more people under his administration pay no income tax. That is clearly a goal of his and most elected officials. But why?
If I were a state legislator and was asked to vote on a Constitutional amendment to repeal the 16th Amendment I would cast my Aye vote with pride. The federal government has no constitutional authority to tax our labor; hence the need for an amendment. But that is an issue for another day, not what's on the table this decade.
This idea that it is somehow just and moral to have people labor 1/3-1/2 of the year in order to pay Washington, is to my way of thinking simply obscene. Your chief burden in terms of funding government should be to your state and locality. Lastly and leastly it should be to Washington. Washington is deserving of a tithing, a token, a small tribute; not half your life's earnings.
If we are indeed going to pay individual income taxes as the chief method of funding our government, then why shouldn't we all pay something? Democrats clearly believe in the income tax and its application to things far and wide. But at the same time they want as few Americans as possible to pay it. If it is every citizen's duty to help pay for the Common Defense and General Welfare, then we should all contribute, even just five percent. The only individuals who should be exempt would be the unemployed (who ironically enough are currently taxed on their unemployment benefits) and maybe some portion of the elderly. Everyone else in society should pay to the general fund to finance the government. I don't like the income tax as that method, but if it's what we have then why should only half of all taxpayers contribute?
And what is meant precisely by the Democrats constant refrain that the rich should, "pay their fair share?" Fair share of what and as determined by whom? When half the country does not contribute anything towards the funding of our government then anything "the rich" are paying is beyond their "fair share."
Those who argue that the 45% who currently sponge off of the other 55% do pay something through Social Security, I say that's nonsense. That is supposed to be a dedicated fund to pay for a specific program to which we all contribute. That has no place in a discussion of the funding of our government in general. Moreover, if the federal government hadn't stolen trillions of dollars from that fund and replaced them with worthless IOUs we would have a solvent Social Security system for as far as the eye could see.
The great difficulty for lawmakers is to get a serious discussion going involving the necessary budget pain we need with a population that feels entitled to their mountain of benefits to which they've contributed nothing. Of course most Americans don't want this or that program cut, it's all been free money to them. The Democratic Party - along with a goodly portion of Republicans - have created this permanent class of freeloaders who are nonetheless invited to the debate. You can't join a poker game unless you ante up first. You can't rail at Steve Balmer at a shareholder's meeting unless you've purchased a share of Microsoft. You shouldn't be a citizen in this country with all the attendant rights and privileges, without contributing toward its financing.
The Obama and Pawlenty goal that we should encourage the notion of a permanent freeloading class of citizens is wrong. A flat tax? Awesome, I'm all for it. But don't just flatten the rates. Flatten out the disproportionate burden borne currently by only 55% of Americans. And give the 45% left out of the funding a rightful voice and stake in their government to which they will contribute. Those two combined are a goal worthy of a serious, non-pandering presidential candidate.
6/8/11 - The Congressional Charlie Sheen
Well first, all us Jewish men owe a debt to Anthony Weiner. We are mythed to be less gifted than the average man. So we can all hold our heads a little higher now thanks to the Congressman.
Seriously, however, he is of course toast. It's now hours or days until he resigns. Chuck Schumer will be given the task of delivering that message by party leaders. Kind of like the internet age version of Goldwater and Hugh Scott trudging up the White House driveway in 1974.
You will find no other blogger or columnist who understands what motivated Anthony Weiner to behave in this way better than I. The big difference is that I never sent my real picture to people I chatted with - X or G rated. I was just too paranoid that someone, somehow would recognize me; and I was not a media obsessed member of congress. So his behavior is beyond reckless and based on my experience, was a call for something: help, sympathy, pity, attention. What, I couldn't guess.
But here's what's pissing me off about this. What Weiner did was immature and not in keeping with the behavior we would like to expect from a member of congress. But that is in my view none of our business. I could care less that he tweets porn stars and is seemingly desperate to ape Charlie Sheen. I do care that he inserts himself into all our lives by prolonging this story by lying so baldly. But still this doesn't rise to the level of inquiry or resignation. You haven't heard me say he should resign, only that it's now inevitable.
But what I find outrageous is that Charlie Rangel's crimes were so much more severe and yet his colleagues had his back from minute one. More than his House colleagues, the White House made sure the matter never got too serious. The U.S. Attorney here in NY indicted a local Councilmember for among other things, overbilling the City for the cost of a bagel and shmear. In other words, nonsense. But Congressman Rangel's myriad of ethical and criminal behavior was not even investigated by the Feds - and he's a federal official. As for lying, every word spoken and offered in writing by Rangel was a lie. For much more serious matters than sexting.
Why the double standard? Two reasons. First, the obvious one, he's black and Chairman of the Ways and Means Committe (at the time this started). But that's not the main reason. The main reason is that he's a go along/get along Democrat of long-standing and a favorite of House Democratic leaders. Short of murder, they were always going to do whatever was required to insure his survival. And they succeeded. Anthony Weiner on the other hand bucked his party elders and was generally disliked for his media showboating. But what should that have to do with the seriousness of his charges or his ethical behavior. Barney Frank had his home used as a brothel. Not worse? Why in the world should Charlie Rangel have been permitted to hang-on long enough to let his constituents weigh-in on his future and Rep. Weiner will be denied that opportunity? Yes, he has now officially become a creepy guy and an admitted liar. But he wasn't systematically ripping off taxpayers or using his office and federal dollars to erect monuments to himself and then lying about it. That strikes me as far worse.
But nobody ever ever said life - or politics in particular - was fair. I probably agree with Weiner on not a single public policy issue. But one thing my trevails have taught me is to point out hypocrisy where I find it. I'm not a constituent of either Rangel or Weiner but I'd rather have a Congressman who was consistent in his policy views and fought for his constituents however smug, than an unctuous, hypocrtical, tax cheat who feels entitled to behave criminally and uses his military service sixty years ago as some sort of excuse. But hey, I'm not a House Democratic leader. So what do I know.
6/7/11 - Paying To Be Imprisoned
I'm always going to bring you interesting stories I come across relating to the deplorable state and federal justice system we have in this country. The latest comes the the New York Times and deals with the crushing debt inmates are handed by the states when they leave prison. After Prison, a Bill to Be Paid
6/7/11 - Rudy's Flat Week
Not a good week for Rudy. First, he travels to New Hampshire to test the waters and attempt to make amends with the voters there for having high hatted them in 2008. Thanks to Sarah Palin and Mitt Romeny, he was overshadowed in his efforts and thus far it appears to have been a dud effort. But Rudy's harsh attacks on Mitt Romney, if he keeps them up, will surely endanger any hopes of a prime speaking spot at the Tampa convention next summer. And after all, that and drumming up business for Giuliani Partners is what this is all about.
Next, Keiko Fujimori, daughter of imprisoned former Peruvian strongman Alberto Fujimori, hired Rudy's firm to advise her on "citizen security" matters. Mayor Giuliani even spent a few days down there campaigning with Ms. Fujimori. Since money has never been an issue for the Fujimori regime, I'm sure Giuliani Partners collected a tidy sum. Alas, the former Mayor's efforts came a cropper as Ms. Fujimori narrowly lost her bid. Pundits have said the voters where not comfortable with all her advisors being former members of her father's inner circle. Maybe that was something that consultant Giuliani could have advised her on. Personally I think her father's habit of torturing his opponents would have made her candidacy less than desirable. But torture has never been a deal breaker for Rudy.
6/6/11 - Tough Times For Anthony Weiner
You'd have to be a Fox News host to have watched Rep. Weiner's press conference and not felt some real sympathy for this guy. That was a hard thing to watch. Interestingly, it was the Democratic talking heads who were merciless in their condemnation. Clinton loyalists Carville and Begala were especially harsh. But it looks like this is a scandal from which there is seemingly no return. I knew him slightly when he was a freshman NYC Councilmember and I was head of intergovernmental affairs for the Mayor's Office. All those brash traits that made him stand out also explain why in his hour of need he has so few defenders.
I'm sure everyone today is quoting the Watergate truism that It's Not the Crime But the Cover-up that will do you in. Never more so then in Anthony Weiner's case. It wasn't that he texted or Facebooked with young women not his wife. It wasn't even that he lied about it. It was how actively he lied and how hard he tried to deflect and dissemble. For an elected official to go to these elaborate lengths of deception as his first instinct - even in an admittedly private matter - goes to the very heart of trust and leadership. I've said for years now that one aspect of Mike Bloomberg's character that is so odious is his propensity to lie as his first reaction. It speaks to his very nature as a man and leader. But even Mayor-for-Life Mike wouldn't erect walls of deception like this.
I completely sympathize with Weiner's desire and belief that prevaricating a little in the first instance would make this go away. I even understand the anger he showed to the news media based on his belief that this was a minor matter and a private one to boot. But his next reaction was the one that's the killer. He invited news outlet after news outlet into his congressional office and lied his head off over and over again. That you cannot do and hope to survive. Every single news network has their own distinct footage of him lying with apparent ease. It's now a very painful thing to watch knowing the truth.
He has also put his House colleagues in a very rough spot. Speaker Boehner has set the bar extremely high with his lightening fast dispatch of Chris Lee. Boehner said they would be different this time and he was true to his word. Nancy Peolosi on the other hand has behaved as one would expect. Like in the Rangel matter, she hopes this will go to the Ethics Committee to die. All the while claiming the Democratic leadership took action. Moreover, they will claim it cannot be commented upon because, "it's under investigation by the Ethics Committee." That's the real reason she sent it there; she wants to resume talking about Medicare as quickly as possible. And she took the easiest possible path towards doing that.
Nothing new about these House Democrats. How refreshing it would have been had she immediately called for him to step down after his press conference. I am assuming she asked him to privately when they spoke before it began and he refused. That would have set a new tone and tried in some small measure to reestablish their ethical credibility. It would have also shown Boehner that he's not the only one who can act like a leader. But she didn't. And in the process did herself, her party, her colleagues and Weiner himself no favors.
Just like the mere fact that Tiny Fey continues to breath dooms any hope that Sarah Palin has of being president, those dozens of interviews on digital disc have now finished any hope of the mayoralty for Weiner. He can win another term from the 9th, that's doable. But it will take years to wash away those interviews and his contrived indignation.
I hate when reporters and commentators feel the need at moments like this to label the matter 'a tragedy.' A promising career cut short, what potential. I don't think he thinks of himself or his life as tragic. I think he's a cocky, arrogant and talented guy who had too much success too early. This is evidence of a lack of maturity - his behavior that got us here as well as his reaction. Moments like this are profoundly sobbering. He doesn't know this yet but this whole thing will make him a better man, husband and maybe someday a better political figure.
6/4/11 REALLY?!?, Gov. Barbour, REALLY?!?
You know that SNL/Weekend Update segment called, REALLY?!? At the Faith & Freedom Coalition today Haley Barbour made a Mitch Danielsesque proposition to the faithful that they forgo criticising the nominee if he takes a social position they can't embrace. That's sensible enough. Then, in response to reporter's question if there were any one position a nominee could take that he could absolutely not embrace, including tax increases, he said nothing was off the table if you got enough in return for it. REALLY? Gov. Barbour, REALLY?!? After that he told the reporter her question was "Stupid."
Stupid? It may have been the best question leading to the most revealing answer of that silly gathering. While I generally applaud Gov. Daniels' call to put aside social issues and focus on economics, there have to be some principles that are just that, principles. Would the Democrats support legislation criminalizing all abortions after 20 weeks? Of course not, they are a pro-choice party. Nothing gained in return would make that acceptable.
What lobbyist Haley Barbour revealed today is what many Americans fear is true of all their elected officials: that they have no core ideals and everything is always on the table. There's a big difference between trading away fundamental beliefs and willing to forgo taking up all the oxygen in a presidential campaign on a very long term policy goal - banning abortions. The TV punditry thinks Barbour's position is that of a realist and they appalud him. The American people, however, do not.
Haley Barbour tells us tax increases are possible. What else is possible from Republican leaders? Another stimulus package? More bailouts? Permitting an Iranian nuclear capacity? Is there anything worth manning the barricades for? I think the nominee hopefuls had better denounce Gov. Barbour's 'Washington as usual' philosophy but quick. Remember, they were supposed to be different this time around.
6/3/11 - Birthers, Truthers & Gen. Hayden
In yesterday's Wall Street Journal former CIA Director Gen. Michael Hayden pleads a case that in addition to Birthers and Truthers (9/11 conspiracy theorists) we should add 'Interrogation Deniers' to the list of things we all should all roundly reject in our civic discourse. What he means precisely is that love "Enhanced Interrogation Techniques" or loathe them, honest intellectual debate should acknowledge once and for all that they produced results and probably none more so then in the lead-up to the Bin Laden compound raid.
He's very passionate about this in his op-ed. Interestingly - and in my view tellingly - all the while he is pushing his chair as fast and far away from the table as possible in reminding us that he never personally ordered any of these measures to be performed himself.
He ends the piece with a challenge. To all those interrogation deniers who deplore the use of these methods, why not just call for the destruction of the fruits of those interrogations; namely, shred all intelligence gathered from those sessions and prohibit their use in all future data analysis. Gen. Hayden I accept your challenge.
You may recall about 15 years ago there was a brief but intense controversy within the medical community surrounding the work product from Dr. Mengele's experiments in Aushwitz. It turned out amidst the horror he may have produced some useful medical findings. Well guess what? The outrage surrounding the proposed use of that research was so great and universal that the idea was squashed within days. The notion was so offensive to the average conscience that even the potential for some good was outweighed by revulsion to this application of the scientific method. "Shouldn't some good come out of all of that suffering," was the medical community's question. The resounding answer was, "We'd rather find it another way, even if it takes a few more years of new medical trials." That's my answer to Gen Hayden.
There's a reason we used to shy away from installing military officers in civilian defense and intelligence posts. The requisite mindset of a warrior is not the same for the civilian leader. To argue they are interchangeable is absurd. It may make perfect sense if you've been inculcated in a world where it's logical to do whatever is necessary to get an enemy on the battlefield to divulge the location of the enemy's guns in order to prevent your troops from being shortly ambushed to argue for the need for torture; however wrong that position may be intellectually. But you can't take that battlefield commander and make him the civilian head of DoD or the CIA. We never used to do that. We were very clear on not doing that. The one exception was always the NSA, which until recently had a narrow focus and no major policy input - you directed the NSA, you weren't directed by them.
These torture advocates like to pretend that since 9/11 we have faced dozens, maybe hundreds of Jack Bauer moments. There's a nuclear bomb going to go off somewhere in the city in one hour and the guy sitting in front of you knows where it is and how to disarm it. What do you do? Yea, given a Jack Bauer moment I sure do get the moral dilemma. But I am here to tell you that not one Jack Bauer moment has occured since 9/11. In the same way that the Congress and the courts are continually justifying and excusing lazy police work by allowing shody searches, these torture advocates try and excuse their cause by saying it speeds up intelligence gathering. First, there is no evidence that's true. Second, sure everything in life is speedier if you let the government run amok. Even I'll concede that. The question becomes, if you want to endorse those practices then you're going to end up living in East Germany and not the United States. It's intellectually dishonest to argue you can do both simultaneously. Freedom and the U.S. or police state and East Germany. There is no happy middle as they would argue.
This Frank Luntzian world where torture becomes 'Enhanced Interrogation Techniques' only weakens our moral character. I would have way more respect for these proponents of torture if they would call it that and not try and be cute with this focus group tested phraseology. You want to torture people? Then man-up by openly advocating it and call it by its name. I realize, although we refuse to acknowledge it, that America's sense of right and wrong has changed dramatically over the last decade. This phony and unwinable War on Terror leads us to do and condone some awful things that are/were anathema to the American sensibility. I see almost no hope for change when both political parties agree no change is needed. Two weeks ago the Supreme Court essentially revoked the Fourth Amendment and Pres. Obama now supports nearly every extra-Constitutional measure of the Bush Presidency. Where's the hope? I see none.
The blame, in my view, for this continuing debate about torture rests squarely with Pres. Obama. "Huh," you say. Obama? But he banned it. Not good enough. I have said since he took office that if he did not make a full-throated effort to investigate and fully expose the Constitutional excesses and abuses of the Bush years then those defenders of torture, rendition, secret prisons, wireless wiretaps, etc., would continue to defend them as a rational policy choice instead of what they are, criminal acts.
That John Yoo regularly appears on the Op-Ed page of a national newspaper espousing his views without ever having been federally investigated (and I don't mean that joke, whitewash Holder investigation) is to my way of thinking criminal. The net result is that this man teaches law in a prestigious law school. He's a law professor!!! I simply can't get my head around that. Imagine Eichmann having not been executed but sent to prison and upon release taking up a post teaching Constitutional Law at Heidelberg. Would that be acceptable in civil society? No, it would not. Every time John Yoo appears in the WSJ or on Fox News he, and you, can thank Barack Obama.
Gen. Hayden, Rick Santorum, Fox News, Giuliani, Cheney they are all wrong and always will be on the subject of torturing people. No amount of useful information - and there is still no evidence that any was produced, notwithstanding Gen. Hayden's vehement protests - can justify losing our national soul. It's wrong to torture people. It was wrong on Sept. 10 and it's wrong today. It's wrong to do it on U.S. soil, it's wrong to do it at Gitmo and it's wrong, as well as cowardly, to send victims overseas to have it done instead. It should not be acceptable in the United States of America to say otherwise and not be universally denounced. But thanks to President Obama, you can not only say it, you're paid to champion it at UC Berkeley.
6/2/11 - I Too Was Hacked
What would the Chinese want with me? In precisely the manner described in today's papers, my Gmail account was hacked 10 days ago. I can say this with absolute 'certitude.' A forwarding address was added to my settings and all my incoming mail was forwarded to someone with a Yahoo account that had a .UK extension. Because Google absolutely, positively offers no customer support features, I had to post a request for help on one of their forums to figure out why this was happening. Sure enough, in the Gmail settings a forwarding address had been inserted. I deleted it and the next day it was back again. Only then did I belatedly realize I had better change my password. Stupid me. Since then, nothing.
Why am I telling you this? Two reasons: 1) I thought it was kind of interesting; and 2) Clearly Google and the Federal Government are lying when they say that this attack was aimed solely at "senior government officials." I am surely not that. If this happened to little ole me, be assured it's happened to thousands more Gmail customers. Google claims they sent letters to all those hacked. I received no such communication from them. I assume with good reason. Naturally Google has a clear corporate interest in not telling us that many, many more of its user's accounts were hacked than it's letting on.
With Google's security this bad and its total lack of any customer support, how could anyone think of adopting the Google model of Cloud computing? Do away with all software on your PC and rely solely on Google's servers for your applications and document storage? A business model that weak and full of holes could only come from say, a Brooklyn Congressman.
6/2/11 The ABCs Of Gerald Laughner's Incompetence
Last week I was reading on Yahoo News about the court's designation of Gerald Laughner as incompetent to stand trial. I then read some of the most vicious and hate-filled posts in response to that story. People were saying the most vile things. These people have absolutely no connection to this case or the victims and yet they wanted, in one man's words, to see him, "sliced open from the balls to the neck like a pig." I worry for the future of this country. Not because of the Laughners - there aren't very many of them - but because of the millions who have this irrational need and taste for blood and revenge outside any logical emotional reaction.
Yea, Laughner killed your daughter, I can understand. Laughner killed your best friend, totally get that. But this all stood in marked contrast to one of the actual victims who said that he was fine how things were proceeding and had no problem with the interim finding of incompetence. And this guy was shot twice by Laughner!!
You may or may not know this but I too was found incompetent to stand trial in the exact same manner as Laughner (both federal cases). With that in mind, I thought maybe I could offer-up some insight and clarity as to this process since most people don't understand it and confuse it with a defense claim of insanity.
First, there are basically two grounds for a psychiatric determination of incompetence in the federal system: 1) You cannot understand the proceedings. Maybe like Laughner you're too whacked out (that's not a psychiatric term) or maybe you have an IQ of 12. In either case, you cannot try someone for a crime who has no concept of what's happening to them at trial; and 2) You cannot aid in your own defense. Meaning, for whatever reason, you are too out of it to help and consult with your attorney on matters relating to your case.
I fell into the second category. The Bureau of Prisons (BOP) psychologist found that my depression was so severe that I was unable to aid in my own defense.
Initially the court orders you sent for a mental evaluation. The BOP has 45 days to perform the evaluation. The doctor assigned to your case can ask for a proforma 45-day extension that is almost always granted since the back log is huge and they almost never get them done in the first 45 days. The BOP doctor then makes a recommendation and forwards that to the court.
The BOP made a finding and a recommendation to the court that Laughner was incompetent. The judge can reject the recommendation and proceed but that never happens because it would be overturned on appeal and the whole trial would have been for naught. So the judge accepts the recommendation and then by statute the defendant is sent to a Federal Medical Center (FMC) for "Restoration of Competency." FMCs are BOP prisons that also have a major medical component to them. There aren't very many of them in the country and in a high profile case only three would be considered: FMC Butner, FMC Rochester or FMC Springfield. Laughner was sent to FMC Springfield.
The strange part, as someone who was so designated, is that technically you are being sent to this FMC by order of the U.S. Attorney General for Restoration of Competency. The law requires the AG to make that designation, so all the court papers say that. I kept thinking to myself, "Does John Ashcroft really know he's sending me here?" Of course he didn't, but you can't help thinking that when you see it in writing 20 times.
After that, the BOP has six months to restore you to competency and report back to the court (I heard a news analyst say it was four months, but I think they misspoke unless the law has been changed). You cannot be forced to take drugs, only undergo testing and possibly therapy. The doctors can ask the court to order the forced use of drugs if the defendant refuses. But that happens rarely during that first six month period. It's mostly testing and patient history. Unless you're a very, very high profile case like Laugner's, a defendant would only see his doctor a few times face-to-face in those 45 or 90 days.
If, after that first six months, the BOP doctors report to the court that you have been restored to competency the defense can contest that finding and have a court hearing using their own doctors as witnesses and cross examine the Government's. In the vast majority of cases that is the determination to the court by the BOP's doctors after that first six month period. My guess would be over 90% of the time. At that point the case goes to trial.
If, however, the doctors say they have not restored your competency they get another six months. You know how some people believe that if you get five or more cards in Blackjack you automatically win the hand? That's not true of course and there is a similar myth associated with the restoration of competency. Many defendants so designated believe that after four findings (six months x four) you are automatically deemed officially incompetent to stand trial. That's a prison myth but many believe it and quote it as fact nonetheless.
In reality this process - usually in very high profile cases - can go on forever. In a run of the mill case - at some point - a court will find the defendant incompetent to stand trial and he will be committed; usually to a psych ward in an FMC. If at some point - either in the near term or many years down the line - the BOP doctors determine he has been restored to competency, they are required to release him and the commitment is lifted. Furthermore, you will never have a criminal record - you weren't convicted of anything.
One such case where this is in fact going on forever, involves a defendant I served time with. His name is Russell Weston and you may remember him as the person who shot up the U.S. Capitol and killed two Capitol Hill Police Officers. We were in the same unit when I was at FMC Butner being restored to competency. He's still there. Every six months or so his doctors go to court and claim that he's still incompetent. The BOP shrinks say he's a paranoid schizophrenic. This has been happening with him since 1998. The prosecutors in his case have been desperate for years to put him to death.
Trust me, I am no doctor, but he's faking. I knew the guy and can tell you from firsthand knowledge that this is all an act. He has a very comfy set-up there (relatively speaking since the alternative is The Needle in Terre Haute). He was an obese man with porcine features and giant swollen legs due to inactivity who confined himself to a wheelchair. I must admit, I did not like that guy.
My closest friend at Butner - armed bank robbery - also had been committed after having been found incompetent to stand trial. He was eventually restored to competence and released. He too had gamed the system. He had issues to be sure, but not enough to have earned the commitment. He and his girlfriend had laid clues after his arrest to help in the finding. Our doctor always referred to him as a "charming sociopath" and warned me not to become friends with him. Who listens to doctors?
I've given you two examples of men who have gamed the system. The reality in the BOP however is that there are so, so many inmates with severe mental problems who should never have been found to be competent to stand trial. Instead they were deemed competent and received in many instances long sentences. It is heartbreaking to see these men who clearly had no knowing concept of their crimes but due to awful public defenders and an out of control justice system bent on incarceration they were sent away for decades. Yea, there a few Russell Westons who sneak by who shouldn't but mostly BOP doctors issue findings of competence to defendants who aren't close to being mentally culpable. The BOP is guilty of so many awful things, but that may be its greatest sin.
What's Rudy Up To??
With six months to go before the first caucus, it's still not clear who is and who isn't running for the GOP nomination for president. This week's news will only help to make that picture even more opaque.
Rudy Giuliani is topping a new CNN Poll with 16%. Further, he is headed to New Hampshire to speak at a series of GOP fundraisers on the very day Mitt Romney is finally announcing his candidacy. Rep. Peter King tell us that he's as good as running (Program Note: For this election season the role of Guy Molinari will be played by Peter King). The news of this has caused the punditry to become all atwitter - literally and figuratively.
But what does it mean? What's Rudy up to? Maybe I can offer a little insight at this juncture. We will know more when we analyze the text and nuance of his remarks on Thursday. { For the record, I find far more intriguing the potential of a Pataki candidacy then a Giuliani run, but hey I chose the blog name and you leave with thems who brought you. }
First, do I believe that six months ago Rudy had the slightest inkling of running? No, I do not. It was not being seriously considered. But he thinks maybe something has changed. He and his advisors are looking at the current crop of candidates and concluding what we are all concluding; namely, that this is the weakest field in living memory. They then ask themselves three questions: 1. Is Obama beatable? They answer yes; 2. Can any of the current candidates defeat him? They answer no; and 3. They then ask the most important question - Can Rudy beat him? They're not sure, but they think possibly yes. Hence the last minute trip to NH to suss this out.
Let me digress for a second to give you my thoughts on where Barack Obama stands. If you look at an incumbent with his record, 2 1/2 years into his presidency, can he be beaten? On paper, Obama is eminently beatable. But that's not the issue. Campaigns aren't won on paper. They are fought on the ground, in the ether and in the zeitgeist. So is President Barack Obama beatable? Probably not. And certainly not by Romney, Pawlenty, Bachmann or Paul. Huntsman? No one can answer that question yet. But let me pause and say a word about Michele Bachmann. She is no dummy. I can't say why she makes these silly gaffes, but she is one articulate, on- message cookie. She has a viewpoint and she expresses it very well. Laugh now, but she would give Rudy a serious run in a debate.
George Will thinks the nominee will be Tim Pawlenty. But most are betting that Mitt Romney will be the nominee. Here's what every political analyst knows but is prevented from saying by our current political mores. Call it the Juan Williams exclusion. No Republican Mormon can be elected president. A Mormon Democrat? Possibly. Republican? Never. It's all about the numbers. What Karl Rove knew very well was that short a popular candidate or a winning record you had to increase the base in order to win. At a minimum, you have to start with the base. That base is comprised largely of Christian fundamentalists. I, a Jew, am closer to Christ in their estimation than Mormon Mitt Romney. This is not simply a case of JFK's Catholicism.
Protestants may not have liked his Catholic faith - many were openly hostile to it - but they did not view it as alien or otherworldly (Protestantism after all sprung from a rejection of the rigid orthodoxy of the Catholic Church). That is precisely how Christian fundamentalists view Mormons. He might as well proclaim himself a Wican for all the difference it's going to make to the Born Again base. The Bible Belt? Their Bible is not The Book of Mormon. Joseph Smith a prophet, gold plates and sacred undergarments are outright heretical to their beliefs. To these people you might as well put a sign on Romney's forehead that says, "Enemy of Christ." Could this be offset with independents and Democrats? Maybe, but not by pro-choice, pro-life, pro RomneyCare, anti-ObamaCare, flip-flopping Mitt Romney. So Romney has no chance. As for Tim Pawlenty, that smile perpetually plastered on his face will creep everyone out in short order. Trust me. So who's left?
The punditry on the right looks at 2010 and thinks it can be replicated in 2012. Love em or hate em but the Tea Party was a genuine phenomenon in 2010. The right candidate could harness that energy and passion in 2012. But that requires a dynamic leader. Dynamic in his persona, or lacking that, in his/her ideas. As Joe Klein said this weekend, in all his years covering Romney he has never seen the man move a crowd with his oratory up off their butts.
So here we are at the landscape that Rudy surveys. But that's only the start. Let's say he thinks he can do this. That leads to more questions in Giulianiland. Namely:
1. Something akin to the First Question on Passover. Why would this run be any different and produce a different result then the last one? These are not very introspective people over at Giuliani Partners. I don't suspect they will spend a whole lot of time finding fault within themselves for 2008. Their problem rests with the fact that Rudy permitted not an inch of daylight between himself and George W. Bush in 2008: tax cuts, unpaid Medicare Part D, Iraq, Afghanistan, deficits, Gitmo, No Child Left Behind, the Bailout and torture. No disagreement - zero. The Republican Party of 2012 doesn't agree with half those things. Certain wings of the party today agree with none of them. How far we've come when freshman Rep. Allen West (R-FL) couldn't disavow Bush enough on Fox News Sunday. Giuliani/Bush are not aligned with this fast changing Republican landscape.
2. Do we have a message for 2012? We didn't in 2008, so what's changed? The circumstances or our message? Rudy is most unfortunate to find himself in an election year that will favor technocrat wonks. While I always believe an inspiring message can overcome a candidate's deficiencies with the minutiae, this election is going to require a real command of the federal budget. More than that, milquetoast responses on very serious issues won't cut it. You'll recall that the Giuliani campaign was singular in its refusal to provide specific proposals on a whole range of issues in 2008. Won't work this time. Bold, not safe, is what's going to win this day.
3. Is the money still there? He raised and wasted millions on his last run with a top-heavy, expensive roster of Bush staffers that produced one (1) delegate and a third place showing in must-win Florida. I don't think the Giuliani money machine can crank out those donor checks like they used to. But we'll see.
4. Can he re-introduce himself? Is there an alternate Guiliani narrative that can attract the very large part of the electorate that simply now hates him. But more than that, those who see him as yesterday's news. Let's recall that there have been many Rudy Giulianis. There was Rudy the take-no-prisoners U.S. Attorney. Rudy the obstinate and failed Mayoral candidate in 1989. Rudy the coalition building, dynamic leader of 1993. Mayor Rudy of the his first term. Mayor Rudy of the second term. Rudy the comforter-in-chief and decisive, man of action after 9/11. Rudy the consultant without scruples. Rudy, the Dick Cheney lite of 2008 presidential politics. And finally, Rudy Giuliani proponent and advocate of torture.
Here's his problem on this front. Yes, there were many Nixons. But what Nixon knew was that the Nixon of 1960 not only could not win in '68,' but wasn't what America wanted. So he proclaimed a New Nixon. Rudy's problem is that he sees no need for a New Giuliani like he did in 1993. He needs a do-over and he's unwilling to provide himself with one.
Rudy knew that the 1989 Giuliani that existed in the public's mind was not going to win in 1993 so he reinvented himself, albeit in a very genuine and non-manufactured way. It was unique in that respect in American politics. But he claims to be fine with who he is now. That is, to many, a seemingly heartless millionaire who runs away from, rather than embrace, his positive record of service save for four months.
5. Lastly, the problem that has no easy answer. His clients and the media. You thought I was going to say his personal life, didn't you?
Rudy doesn't realize this, but he had the easiest ride of any major candidate from the media. 2012 will be like a bloody horror movie compared to what he went through in 2008. For starters, he can't refuse to release the client list of Giuliani Partners. The law firm, maybe. The rest, absolutely not. The media simply won't tolerate it this time. Moreover, they know he has represented some very unsavory people. Not a chance they are going to let him keep that list to himself this time. Next, many journalists are pissed at themselves and their profession for the fawning way they treated him last time.
Most journalists don't like Rudy and they really hated his campaign staff. They want payback for the way they mishandled him in 2008. That may not be fair, but it's a fact. I can't tell you how many reporters for major newspapers that I corresponded with after I launched this blog told me the exact same thing. They may not be printing everything I am writing on here in their papers now. But their editors told all of them, let him run for president again and we will go back over every post on Rudy Veritas. I am in no way overestimating my importance or that of this blog. But I tell you from direct conversations with reporters that these posts will be made into news stories should he run.
The largest issue for Giulianiland is what would a repeat of 2008 mean for their brand. 2008 redux would be disastrous, perhaps fatally, to the empire built around the post 9/11 mystique of Rudy Giuliani (Lest we forget, on 9/10/01 Rudy had an approval rating in the low forties in NYC). Is this a sure enough bet to gamble away everything? That's what this will come down to in the end.
I get tagged sometimes as a Rudy hater or Rudy critic. I am, to be sure, a critic. I only hate what he's become because the promise was so great. He was such a talented man with a really different vision. And now he's a shill for despotic sheikdoms and a regular on Fox News. I know there's a large segment of society and my party that considers that the very definition of success. Sadly, I do not.
Well stay tuned and let's see what Rudy says and how he says it on Thursday.
Reaction To Ray Harding's Sentencing
I noticed that on the day of and day after Ray Harding's sentencing there was a spike in views to this site. I am sure many of you might have wanted to know my reaction. Well my reaction took place away from the blogosphere on that day. My reaction took the form of a complaint against Gerald Shargel filed with the Disciplinary Committee of the NYS Bar Association. A copy of which is attached herein: RAH LETTER
Did it bother me that my father and his lawyer sought to scapegoat me as the cause of all his self-created troubles? Not really. Ray has become a complete coward, so I honestly expected no better. Mafia bosses don't treat their children this badly. Still, however, a shocking thing to read. Bernie Madoff agreed to all the prosecution asked including a 150 year prison sentence in order to protect his wife and sons. Ray Harding throws his son on the pyre at every conceivable opportunity. I just watch him in awe and wonder. What a despicable and decrepit shadow of himself he's become. Why have I not spoken to the man in eight years? The answer is on display every time he throws me under this bus of his own creation.
I say that because as you'll see in the letter to the NYSBA I have no idea what Ray is talking about when he's blaming me for his troubles. He claims to have conspired to defraud the pension fund of $800,000 out of some necessity to pay my legal bills. Total news to me when I first read it in April 2008 as part of Attorney General Cuomo's complaint. I never asked Ray for a dime since before I retained Shargel through to this moment and had no knowledge of any payment ever made from him to Shargel.
But as I say in the letter, every law enforcement and judicial player in this Ray Harding drama accepts his 'excuse'. If that's true, then Jerry Shargel is guilty of gross ethical misconduct at a minimum and perhaps some criminal activity. The time for casting about blame is over. The Bar Assoc. needs to find out the truth as accepted by two Attorneys General and act accordingly against Shargel and stop him from doing this to any future clients.
An Era of Sleaze Comes to an End
The end of an era has definitely arrived in the seedy underbelly of sleaze journalism in New York. For nearly forty years four journalists represented all that was wrong with journalism in New York City. They were holdovers from a liberal era long since repudiated by history and the electorate. An era they longed to revisit and could never recover from its end. They fashioned themselves muckrakers in the grandest and noblest tradition. But they were never heirs to Tarbell or Sinclair. Rather, they practiced the dark arts of journalism.
Jack Newfield, Joe Conason, Wayne Barrett and later Tom Robbins were all at various points in their careers investigative reporters for the Village Voice. Newfield had a varied career that balanced his years at the Voice. Conason sought to rehabilitate himself and put distance between the years slinging sleaze and now working at Salon. Only Barrett and Robbins clung to the hard, hard left views of their youth. Moreover, they attempted to eviscerate anyone on the left who veered from the Stalinist orthodoxy of 60's radicalism. They longed for a return of the Nixon presidency so they could march for his impeachment. They longed for the Vietnam War so they could march for its end. And they longed for Ronald Reagan so they could march against, well just about everything the man stood for. And they viscerally hate Barack Obama because in their view he has no appreciation of what his forbears struggled for in the 50's, 60's and 70's and therefore compromises on issues of conscience too readily. In essence, black man gone soft.
Yesterday Barrett, the Voice's six figured reporter, was finally shown the door. And we are lead to believe that Robbins resigned in sympathy (I'm assuming this was a save face agreement worked out by all parties). Barrett's farewell letter in the Voice demonstrates once again the preening narcassim of the hard left. New York will survive without Wayne Barrett. Reporting will continue. The sun will come up over City Hall and the NY Post and the NY Daily News will continue to run investigative pieces.
The difference is that when those stories will be written in the future they will lack the poison pen and venomous slant that always accompanied a Robbins or Barrett piece and was there trademark. Just as it was Newfield's and Conason's before them.
There's nothing wrong with investigative journalism. In fact, in NY it is not practiced enough. But there are lines, as with any profession, that you do not cross. You don't create news when there is nothing to report. And you certainly never fabricate news in order to get a headline. I watched all four of those men do just that, first to my father in the early 80's and then to me.
In my father's case it was created smoke about his law firm's lobbying on behalf of Westway (the never built underground highway on NYC's West Side). Week after week of front page stories in the Voice that amounted to nothing. In mine, well you know from reading this blog that Tom Robbins - stymied by an inability to "get the goods" on me - worked with a source to create a series of headline grabbing internet chats purportedly from me. He then fed the source info to help fabricate these chats and went so far as to instruct the source on which topics to manufacture so that the chats would coincide with that week's planned headline in the Voice. It may well be the most dastardly act by a reporter that has gone serially under reported.
No one will miss these men. Barrett says he's going to The Nation's think tank. An oxymoron if one ever existed. And Robbins? Who knows. He's spent most of his career getting bounced from the Voice to the NY Daily News and back again. So maybe Mort Zuckerman will take him back for stint number 3 or 4. All I can say is that unlike Newfield who had other achievements in his career to offset his Voice years, these men will be mourned by no one. When their time comes it will be in a small labor meeting hall somewhere with octogenarian hard leftists wearing little hammers and sickles standing over their coffins reminiscing about the good old days of Henry Wallace.
One chapter in a sorry legacy of sleaze journalism ended yesterday. But like cockroaches, these men always resurface. Here's hoping any prospective employer is as smart or smarter then Voice editor Tony Ortega and doesn't hire these sad, tired old men in the first place.
A Sad Potraititure
How bad is Rudy Giuliani's official portrait unveiled this week at City Hall? Astoundingly bad! When I first saw it I thought it was a younger Jack Welch, the former head of GE. But I thought no, it's someone else. Who is it? I racked my brain trying to think who it was this artist had painted instead of Rudy. And then like a flash it came to me. And once I figured it out I was at first bemused and then shocked to think that for all posterity this was who everyone would see in Rudolph Giuliani's portrait. I'll get to who it is residing in Rudy's frame in a moment.
Official portraits need to meet two tests: 1) does this represent the man as he is remembered (i.e. great general, captain of industry, sports legend, etc.); and 2) does it look like him. Unless the artist painting you is Picasso, the depiction should be a good one - it should at least be recognizable. In years gone by official portraits sought to depict the man as he was in his time, during his achievements. Lately - and probably because they are produced years after while the subject is still alive - the paintings show the man contemporaneously. And that's a shame. Would we rather see Ulysses Grant as he was in his later years wracked with throat cancer on the $50 bill? No. We want to see him at his military peak capturing Vicksburg.
I happened to be at the last mayor's portrait unveiling. It took place a year or two after David Dinkins had left office. We were in the Public Hearing Chamber at City Hall (since transformed into the idiotic bullpen). Dinkins' portrait was interesting because it showed him not as he sees himself - a strong, proud leader - but rather as an old man, seated and looking rather frail. Interesting choice by the artist, I thought. The one unmistakable fact was that the artist had talent. The facial likeness of David Dinkins was spot on. This was no one else's portrait.
Rudy's painting fails because he seeks so desperately to escape the man he was and whom we remember. Strikingly odd since that's how he makes his sustenance these days. He now wants us and all future generations to remember only what he's become.
Take the flag for instance. Once past the terrible depiction you soon notice the American flag pin on his lapel. I happen to know firsthand that old Rudy thought the wearing of these pins was reserved for right-wing politicians of low intellect seeking to impress simple-minded, flag waving, patriot yahoos. With the possible exception of his last eight weeks in office, Rudy Giuliani never wore a flag lapel pin. He wouldn't be caught dead in one. But there it is.
He is wearing a navy pinstripe suit that he also never would have worn as Mayor. And while never a natty dresser (he was a Men's Wearhouse shopper), he certainly wouldn't have been caught dead in so baggy and ill fitting a suit as he's portrayed in. Put all that Yankees nonsense aside. This is banker Rudy that we are meant to see; not poor, always broke, public servant Rudy. This is the Rudy of Judith, not Donna.
Now who is it clear as day depicted in that painting? It's Wayne Barrett! Wayne Barret is a "journalist" who writes for the Village Voice. Google him and find a 10 year old picture. You'll be amazed at the resemblance. Why is this shocking?
For those of you not from New York, try and imagine John D. Rockefeller, Sr. sitting for a portrait a century ago. Upon completion the artist's rendering is not that of John D, but rather Ida Tarbell. Or more recently, imagine the Bill Clinton portrait being unveiled and instead of Bill it's Ken Starr's likeness sitting in the frame. Wayne Barrett is Rudy hater in-chief and has been so for the better part of two decades. It is such an amazing likeness that I am hard pressed to believe this elderly painter didn't do it intentionally.
When I heard that his portrait was going to be unveiled I was eager to see it. I had hoped that a painting could remind me of the lost man even if he himself no longer could. But even in this I am disappointed. I hope his friends and hangers on in the years to come take a good photograph from his mayoral years to a quality artist and commission a proper painting. Rudy the man has morphed into something unrecognizable. His official portrait shouldn't follow him.
ENDORSEMENTS IN NYS
Governor: Carl Paldino - I know, I know, I know. Here's the thing: I have known Andrew Cuomo on and off since 1977. I could not in any good consceince vote for him or recommend to any else that they do the same. For those of you who remember, the tyranny of the 2nd Floor (Governor's Office) during the 80's was always referred to as 'The Cuomos.' As in, the Cuomos want this guy destroyed or the Cuomos are out to get so and so. The plural in that did not reference Matlida. It meant Andrew. As paranoid, petty and meanspirited as Mario Cuomo was, the son is that without his dad's smarts. That is a pretty toxic brew and not something I could endorse from first hand experience. The Cuomos are bad, bad people. It's highly unfortunate that he has been given a total free ride by Paladino on the issues in this campaign. His record at HUD alone would have him 20 points behind if he were running in any other state this year.
Moreover, the NY press has completely rolled over for him. The NY Daily News's coverage should be considered an in-kind contribution to the Cuomo campaign. All those years of late night drinking sessions with Daily News reporters and coulmnists at bars on Second Avenue are finally paying big dividends for Andrew.
The thing that really galled me was something I read in the WSJ a few weeks ago. Both Andrew and Mario were quoted as saying extremely complimentary things about former Gov. Hugh Carey. On its face that wouldn't be shocking since Hugh Leo Carey is arguably the greatest governor NYS had in the 20th century. But if you know the backstory it's shameful and shameless that those two would go on the record singing his praises.
Hugh Carey made Mario Cuomo. With no Carey there is no Cuomo, Mario or Andrew. First as his Secretary of State, then his choice for Mayor in 1977 and finally his Lt. Governor. And how was he repaid? As I said, shamefully. I was there in 1977 when Mario would call our house daily to bitch and moan about how Carey wasn't supporting him enough. And in 1978 when Carey's first Lt. Gov - Mary Anne Krupsak - primaried him and lost, Carey's choice for his next Lt. Governor was Mario. Mario called incessantly whining that Carey was taking too long in announcing his nomination. Ray had to constantly calm him down and assumed the role of intermediary between them. And once in office Mario never stopped complaining that he wasn't included in the Carey inner circle.
Now for those of us with memories, we recall that right after Mario was elected governor it was time to unveil the new convention center in NYC. Everyone know that it had to be named for Carey. He dreamed it up, created the state agency and saw it through. It was supposed to be a fitting tribute to him and his cement legacy. Everyone was in agreement and fully expected it to happen.
But Mario had the agency name it instead for a Republican Senator, Jacob Javits. Javits was a fine man and a great U.S. Senator. But the convention center was Hugh Carey's.
Every governor of NY for the last 50 years has had his official papers published after leaving office. After publishing just the first year of the Carey Administration, Mario had the funding cut for the other seven. It would take Republican Governor George Pataki to finally put back the money for completing the project 12 years later.
And what did Mario Cuomo learn from his Carey years? Never to give someone as ungrateful and treacherous as himself a leg up. He ignored his first Lt. Governor, former Yonkers Mayor Alfred DelBello, to such an extent that he resigned. So happy was Mario not to have a number two he didnt' bother to fill the post until his re-election necessitated it. His second was a bright guy, Stan Lundine, who became a joke for how totally out of the loop he was during the Cuomo years. And Mario's Secretary of State? He ignored her as well. Well that's not technically correct. According to every knowledgeable source he was cheating on Matilda for many years with his bow legged Secretary of State, Gail Shaffer. So I guess that's not totally slighting her. Just in her official capacity.
These slights, and the Carey badmouthing on the 2nd floor, went on for over a decade. It was done by 'The Cuomos' - Mario and Andrew. It's not surprising that Andrew would choose to model a successful governorship on Hugh Carey and not on his father's dismal one. That only fits with political smarts and the historical record. But those of us who remember are sickened to hear him now say these laudotory things without the accompanying apology and acknowledgement of the shabby treatment Hugh Carey received at their hands. As I said, these are bad, bad people.
Is Carl Paladino crazy? I don't know. But just think of this. I'm gay and 'll be voting for Carl Paladino. That alone should tell you just how bad I believe an Andrew Cuomo governorship will be.
Comptroller: Boy, am I impressed with this Harry Wilson. He is a true Arthur Levitt heir. I head him at length on Larry Kudlow's radio show last week. He's smart, honest, knowledgeable and articulate. He probably won't win and it will be us - NYS's taxpayers - who will be the losers, not Mr. Wilson.
Attorney General - Yes, I'd like to see a Louis Lefkowitz type AG who was from the other party to monitor Mr. Cuomo. But that is not what we have in Dan Donovan. From the Bloomberg backing to a single Wall Street firm bankrolling 25% of his campaign, he has shown himself to be for sale and singularly unimpressive. Eric Schniederman is too left for my taste, but I think he'll be an okay AG. And if we have someone who actually attempts to balance prosecutorial fervor with some defendant's rights, that would not be such a bad thing.
A FEW PREDICTIONS - Senate Winners:
Alaksa - Murkowski California - Boxer Colorado - Bennett Illinois - Kirk Kentucy - Paul Nevada - Angle Pennsylvania - Toomey Washington - Rossi West Virginia - Manchin Wisconsin - Feingold
Governor:
California - Brown Colorado - Tancredo Florida - Scott Mass. - Baker Ohio - Kasich Rhode Island - Chafee
Here's my wild-card outside prediction for next week's election (besides Tancredo & Feingold): Rick Perry loses, Bill White wins.
Restoring Some Sanity
A very big win for freedom loving Americans today. The Supreme Court, which is having a mixed year as far as I'm concerned, redeemed itself by intelligently narrowing the scope of the Federal honest services statute.
The statute was always meant to be applied to elected officials who took bribes or kickbacks. It was intended to convey a serious revulsion at officeholders who were selling out the people who elected them. It was never intended: (a) for private citizens; and (b) for officeholders who are just venal or "merely" corrupt; there are plenty of other laws to apply in those situations.
But as is the inherent danger with an unchecked out of control central government, the statute was misapplied by the U.S. Justice Department in more and more indictments. It became a catch-all charge like wire fraud. Anyone could basically be charged with not providing honest services. And as we have seen in both public corruption as well as non-public cases the Government went wild applying this statute to anyone and anything. Under the Government's interpretation of the statute, any CEO could be charged under it if he, say played golf during business hours. Thereby depriving his stockholders of his full honest services for which they pay him. Rudy Giuliani used to take off most Fridays in the last 3 years of his Mayoralty to play golf. Were the Feds inclined to get him, that could surely be one charge under the old use of honest services. Yup, it's that crazy and out of control.
Jeffrey Skilling of Enron fame bravely objected to both his trial and the underlying charge. As I have written before, Jeff Skilling's prosecution was a travesty. The real villain in the entire Enron matter was Andrew Fastow. He cut himself a sweet deal (including for his wife) in exchange for ratting on Skilling and Ken Lay. Were Skilling and Lay lousy managers? You bet! Did they take unnecessary risks? Absolutely. But their actions were far, far tamer and less criminally suspect than what we saw by the major banks and investment houses over the last decade re: the sub prime housing market.
I had hoped the Court would strike down the statute altogether. They chose instead to narrow it back to what it was supposed to be in the first place, namely a check against graft-taking elected officials (although the decision covers non-elected officials, there are so few incidence of corporate execs actually taking bribes, it's meaningless to view today's result as anything but a restoration to its corrupt pol roots). I think they probably got it right. I don't object to its use in those limited situations. Elected officials shouldn't take bribes or kickbacks and when they do it's perfectly appropriate to have a tailored law that addresses that. Maybe called the NJ Law, since seemingly so many pols there are on the take and are so easily lured into selling out their office.
What will become apparent now once the appeals and motions start coming from those convicted under honest services and those awaiting trial, is how widely and egregiously the Justice Department has been misapplying this statue.
It's always good when the Court slaps back the hand of the ever encroaching, liberty draining Justice Department, as they did today. Sadly, however, they do it too infrequently.
Chuck Schumer: The Spiro Agnew of 2010
I have a confession to make. I've begun rooting for Harry Reid to be re-elected in Nevada. Crazy, right? I'm no Harry Reid fan. I hate Obamacare. I like most of what Sharon Angle has been talking about: eliminate the Dept of Education, repeal the 16th Amendment and reshape Social Security. So why in the world would I be rooting for such a thing?
I have to take you back to the early 1970's for the best analogy. Back then the luckiest man on earth was Richard Nixon. Why? Because the only man the liberal Democrats - who overwhelmingly controlled Congress - hated more than him was his Vice President, Spiro Agnew. Richard Nixon could have gone to the Reflecting Pool and shot busloads of tourists and no one would have impeached him. No Democratic Congress was going to be responsible for President Agnew. But then the past caught up with Spiro Agnew. Some little business about roads and kickbacks while he was Governor of Maryland. And that's when Richard Nixon's luck ran out.
Gerald Ford was a 'Man of the House' and a perfectly palatable replacement to most Democrats, as both Vice President and President.
Why do I mention this? What could Watergate possibly have to do with this election? Well, maybe more than you think. I make two assumptions about this election. One, that the Democrats will retain the Senate - closely, but retain it nonetheless. Second, that these bizarre pieces I keep reading that Reid's successor will be Chuck Schumer are true. I can't imagine why for one second his Senate colleagues would want this self promoting news hound as their leader, but by all accounts he's a shoo-in should Reid lose. Now that would be very bad news.
If you think Harry Reid is pushing some left wing Obama agenda, just wait for Majority Leader Schumer. It's too sickening to imagine. Half of this country hates New York. The other half hates Jews. If you want a real kumbaya moment of the country coming together in Woody Allen's apocalyptic nightmare, Chuck Schumer's elevation to Majority Leader would be it. The whole middle of the country would be united in their New York hating anti-semitism after seeing Chuck Schumer hour after hour on every cable news and talk show. As a New York Jew, he is so distasteful that I might actually start being bigoted against myself. It's not just his politics that makes him so loathsome. It's that he's an unctuous opportunist.
I need no better example than one he provided 24 hours ago. Yes, we all know I write about so-called 'sex offender' issues and how rotten the system is. I'm sure you're tired of hearing from me on the topic. But yesterday Sen Schumer - the man who invented the Sunday press conference - held a press avail to announce his intent to amend the Adam Walsh Act to prohibit law abiding so called 'sex offenders' from opening a wide range of private businesses. Currently the Act prohibits their employment in a variety of professions receiving federal and state funds or licenses. But if someone wants to open a childrens barber shop, let's say, no law prohibits that. Well he wants to expand mightily the commerce these so-called sex offenders can't engage in. And when asked what if this wholesale increase in banned professions prevents them from finding work, like the Grinch with a wry smile and a twinkle in his eye, he responded, "well that's just too bad."
Now stay with me on this. I am not making the point that it is highly doubtful the Courts would uphold this. That to me seems obvious. When I called him an unctuous opportunist I chose my words carefully. Let's say you are one of the wacko majority who believes your child lives in mortal peril daily from millions of ravenous sex offenders. Then Sen. Schumer's proposal sounds awesome, right? Only one problem with his proposal that he failed to mention at his press conference. The Adam Walsh Act is Federal legislation that requires the states to create new rules and standards. It is not federal legislation as such. It is a giant unfunded extremely costly mandate on the states. Now you need to understand that this legislation only has meaning if the states enact its various provisions. Without the states' adherence, the Act is just air. So what's happened to the Act since its passage a few years back? Out of fifty states only one has adopted its provisions. And that state, Ohio, just basically flipped off the Feds via an Ohio Supreme Court decision that ruled Ohio's laws preeminent in these matters. It was a very important 10th Amendment decision, even if it was just Ohio and not the U.S. Supreme Court.
So what's the net effect of Schumer's proposal - assuming it even passes both houses and becomes law? Nothing. It would be a provision to a law that no state, save one, is even adopting. The Adam Walsh Act allowed states to seek two year waivers if they couldn't enact the new rules on time. All states sought waivers and now most states have either past their waiver deadlines or are soon approaching them. It's a horrible embarrassment to the Justice Department but they draw no attention to it for fear of looking feckless.
So Schumer got his press conference. Every newspaper and TV station ran with the story. It made big headlines. Not a single one mentioned the 10th Amendment issues surrounding his proposal or that its chances of happening are near zero. But another Sunday of TV and another Monday of headlines for Chuck Schumer.
It's less his anti sex offender zeal - remember he's the one who believes it's within the federal purview to mandate that private landlords of apt buildings don't hire sex offenders as superintendents - than his outright disdain for the 10th Amendment and the rights of states. There is no issue for his Sunday press avails where he pauses and says, "you know, that's not really a federal matter, maybe I shouldn't demagogue on that." That is what scares me so much about Majority Leader Schumer. His total lack of respect for the states and their preeminent place in the Republic and the subordinate role of the Federal Government in most issues.
I get the Tea Party and Fox News wants a win in Nevada. I get the echo of sending another Democratic Majority Leader packing. But is the nation going to be better off with a far left media whore like Chuck Schumer? Are we going to see less Obama extremism or far more? I think we know the answers to those questions.
If we were sure that the balance of the Senate hung by one seat, maybe I could get behind enthusiastically for Angle and ousting Harry Reid. Then we would only have to sufferance Minority Leader Schumer. But as I said, I believe the Democrats will hold on. Therefore, I am not willing to spend 2 or 4 or a dozen years with Majority Leader Schumer and his far, far left, pro Washington agenda.
It is interesting that the only time Schumer rediscovers the 10th Amendment and the fact that he's actually representing a state of people and not advancing the cause of Washington, D.C. and the Federal bureaucracy is when it comes to the Wall Street firms who bankroll his campaigns. Then Washington is being terribly unfair to the states and its policies harmful. Not when the little guy is effected but when the Wall Street titans are under attack, that's when Schumer rediscovers that there's actually a state attached to his formal title.
It is beyond sad that this man who is so eminently beatable has lucked out to be from the state with the worst, most dysfunctional Republican Party. In any other state, with his record, in this election year, he would be fighting for his life. In New York? He has an opponent that 99.9% of the New York electorate can't even name (it's Gary Berntsen, by the way).
I ask you America, to think long and hard before you inflict the nation with Minority Leader, or worse, Majority Leader Schumer. If I can find something to like about dull, long-winded Harry Reid, surely you can.
BP - A Rush to Judgment?
For years after he was defeated for re-election in the Democratic Primary, Ed Koch would routinely tell people - half jokingly, "You threw me out and now you must be punished." He was of course referring to the nightmare years of the Dinkins Administration.
We now apparently live in a parallel dimension where we are suffering for having re-elected our Mayor, not defeated him. Not content with hijacking the City Charter, purchasing his re-election, and buying a compliant City Council, Mayor-for-Life Mike now feels empowered to lecture the nation on the folly of blaming BP for the worst environmental disaster in U.S. history. According to the NY Post, he believes we are being unnecessarily hard on BP and cautions us to avoid a "rush to judgment" in assigning blame. In defending Tony Heyward, he said, "he (Heyward) didn't exactly go down there and blow up the well." Really?? Most observes agree that BP's gross safety violations and successful attempts to thwart safety protocols did precisely that.
This rush to judgment nonsense is a little like saying Morton-Thiokol was just a little overzealous in letting the Challenger go up against the advice of their whole team and every protocol. I think we now know what happens to O-Rings when they get too cold and no one stops the launch at 30º F. Well what happened in the Gulf is far worse.
I think it's pretty fair to say that his BP comments have given Howard Wolfson all the indication he needs that Mayor-for-Life Mike might toy with a run for higher office, but their ain't none forthcoming. Even with a billion dollars, no amount of money Bloomberg can spend for elective office anywhere in the U.S. will overcome a few radio, TV and print ads by an opponent recalling his defense of BP.
Imagine an Indian politician going on Delhi radio and defending Union Carbide circa 1984. That would be one career dead Indian politician. You think Rand Paul and Sharon Angle are outside of the political mainstream? Neither of them have been so arrogant, cavalier and heartless (remember, there are 11 dead) and politically brain dead as to say, "Let's all be nice to BP during the clean up." There's no issue of 'benefit of the doubt' as Mayor-for-Life Mike claims. The only issue outstanding is whether or not BP's negligence was criminal. Their lying, deception and reckless behavior is in dispute by no one. Except of course the Mayor of New York City.
First he came to the aid of Goldman Sachs and now BP. Destroying the US economy (not to mention Greece's) and despoiling our shorelines is not enough to earn the ire of Mike Bloomberg. Nope. You gotta do much worse than that.
Can you only imagine what his reaction would be if Lloyd Blankfein or Tony Heyward smoked? Then they'd be in real trouble!!
I'm Just Asking
Did you notice the Wall Street Journal's choice of Op-Ed columnists today? The WSJ must be holding Redemption Wednesdays this summer.
On one page is Steven Ratner, formerly a partner in Quadrangle Partners and President Obama's Car Czar. On the other is my old boss Charles Millard, he late of the Pension Benefit Guaranty Corporation (PBGC).
Just a few weeks ago Ratner's former firm - although not him personally - settled with the NYS Attorney General's Office for their involvement in the Hevesi/Morris pension fund scandal. My guess is that settlement, while not covering Ratner specifically, sufficed for him just the same. Just days ago, Millard was cleared of illegal procurement practices by the Inspector General at PBGC.
And now here they both are returning to the public eye courtesy of the WSJ. Can we expect Eric Massa, Charlie Rangel, and Mark Sanford to be appearing soon?
As Arizona Goes, So Goes NYC
I've scoured the web this morning trying to find an answer to this question: How is NYC's Campaign Finance Law not as unconstitutional as Arizona's? It's a little bit of a stretch to use the term 'unconstitutional' at this point, since the U.S. Supreme Court only stayed the state government from issuing anymore checks, but it will have the same effect for the moment.
Arizona compensates candidates who abide by its spending limits with public matching funds. They further enrich candidates in the program who face non-participating high-spending self funders with a bonus match. This is precisely NYC's program. I fully understand that what the Court did only applies right now to Arizona and no one else, but why hasn't Ron Lauder or someone else challenged the legality of NYC's law in the past? Maybe it's a needless gesture to discuss it since once the state appeals the ruling, the Court will accept briefs and possibly hear arguments in the Fall which will undoubtedly lead to the law being struck down with national repercussions. And good riddance to a program that wastes millions of dollars every election cycle on virtually unopposed candidates. As for leveling the field, better candidates with popular appeal will accomplish that. Look no further than Alvin Greene's victory yesterday in South Carolina or many of the Tea Party victories all over the country. More private or public monies didn't achieve those election victories. A popular appeal to voters - whether that's good long-term or not - is what won the day. State financed speech is a development to be feared, not welcomed.
Had California a campaign finance program like ours in place, that near bankrupt state would have handed over millions and millions of dollars to Meg Whitman's opponents and I guarantee you would not have changed yesterday's outcome.
Mayor-for-Life Mike Bloomberg never participated in NYC's Campaign Finance Law, obviously. But his spending triggered huge bonus payments to his opponents. I have never heard him forcefully advocate for its repeal. Instead, amidst what he pretends is a cataclysmic budget season, he cuts school lunches, fires teachers, closes firehouses and throws senior citizens out into the street. I don't fault him for his spending, obscene as it is. I fault him for not being honest and consistent and advocating for the law's repeal with the same force that he hijacked the last election through legislation.
Here's hoping that the Court definitively tosses Arizona's law and with it puts an end to the further waste of NYC tax dollars in shoring up a deeply rotten system.
The Cynical Device
The question of the moment for voters/citizens of NYC is, how dumb exactly does Mayor-for-Life Mike think you are? He has empaneled another Charter Revision Commission. In Bloombergland Charter Revision Commissions exist to settle scores and empower the man - Bloomberg - but not the office. This commission isn't about bettering the lives of NYers or streamlining government. We don't have Chris Christie at City Hall. Mayor-for-Life Mike wants a few things done before he leaves office. What they are precisely we don't know. But we can guess.
Bloomberg has a pattern of attacking things he doesn't like: guns, cigarettes, automobiles, the Public Advocate (whomever he/she may be), political parties, term limits, constitutional advocates and basically anyone who disagrees with him.
Here's the real danger in this particular Commission's work. I have no idea what they will recommend or what will be on the ballot. Presumably, he wants his legacy to be the doing away with of political parties in NYC. Ordinarily that would stand no chance of voter approval. But Bloomberg has found a 100% foolproof way to get whatever he wants approved this time by the voters.
NYC voters have twice gone to the polls and approved term limits. There was really no reason for them to have gone the second time. They amended the City Charter the first time to limit the terms of City officeholders. But entrenched pols wanted to keep their jobs and thought they'd have another try at convincing voters their continued service was in the public interest. They lost. But then Mayor-for-Life Mike and the NYC Council decided the voter's will was just a suggestion and not in fact an ironclad change of the Charter. So they passed term extensions legislatively which allowed Bloomberg, Speaker Quinn and the rest of the NYC Council to keep their jobs. Notwithstanding the complicity of the US Justice Department or court decisions, it was outrageous behavior on their parts and the Bloomberg cliffhanger on election night was the direct result.
All polls showed then - and show now - that voters have never changed their minds about term limits in NYC - they want them!! Moreover, term limits are the law of the land in NYC, the Charter was never amended, just hijacked. So there is no need to place the issue of term limits on the ballot for a third time; there has been no change of law or sentiment - quite the contrary.
But here's the pernicious part. At Bloomberg's direction, the Commission will place the issue of term limits on the ballot as a part of a whole package of "reforms." Many of which - particularly non-partisan elections - could never pass on their own. But voters will be convinced, falsely, that this term limits question is unsettled.
Rather than phrasing the issue as such,"should NYC repeal term limits," which would receive an overwhelmingly negative response and thereby doom the extraneous proposals attached to it, the issue will be phrased thus, "should the charter be amended to impose....." This affirmation of voter sentiment will require a 'Yes' vote and carry-in with it all the other "reforms." Perhaps, the term limit question will need to represent a slight change from current law in order to make it a legal ballot question, but it will be the Clydesdale that will pull along with it all the other things Mayor-for-Life Mike really cares about.
He can't smoke anymore so no one should be allowed to smoke. He hates guns, so no one should be allowed to own one. He hates cars, so the city needs to be turned into a giant pedestrian mall (ignoring the obvious point that with his homes around the world he must own literally dozens of personal automobiles). The Public Advocate and political parties oppose him, so they must be banished. These are pet peeves not policy.
There is no serious person in this city who believes the Mayor and the City Council had the authority to wipe-out term limits unilaterally. Placing the matter on the ballot settles neither political nor legal questions. The whole argument for this in the first place was that we couldn't live without him after the financial crisis. Could anyone make that claim now with a straight face?
So what will be the rationale? The fig leaf excuse to be given to explain its inclusion will be the "ambiguity" surrounding the legality of their action. They all know they had no Charter authority to do what they did, but now they're going to make the voters tell them explicitly to stop doing it. It's a lot like the serial killer who at the murder scene scrawls on the bathroom mirror, "Stop me before I kill again." This is what we've been reduced to in NY in place of political leadership. And why the contorted kabuki theatre to produce this result? The real purpose is to eliminate political parties from the ballot in municipal elections.
Our Mayor-for-Life loves non-partisan elections for two reasons. First, since he has no ideology or core political philosophy that guides or shapes his thinking, he loathes it in others. Secondly, he wants to maximize his billions once he's out of office. He wants to affect city life for decades to come (Lord knows he can't get elected again legitimately). The one thing that stands in his way from electing candidates who agree with him are political parties and their closed primaries. So, therefore, do away with party designated candidates. Instead of the D or R imprimatur attached to a candidate's name you will have B for Bloomberg. Whether through a PAC or foundation or his own personal checkbook, we will have a city of officeholders beholden not to the voters but to one man and his personal agenda. That is some pretty dangerous stuff. And that is the real work of this Charter Review Commission.
Earthquake for the GOP
Growing up in my family, election night - any election night - was a very big deal. Sort of like the Super Bowl, The Final Four and the finals of American Idol, Dancing With the Stars and Survivor rolled into one. My father often mocked me because I cared as much about elections and primaries in other states as I did about those in NY. I saw them as having meaning for national trends and voter sentiment as it related to important issues I cared about. He would often say about me that I, unlike himself, "actually cared about shit," meaning serious policy.
So last night I was pretty excited to sit in front of the TV and see what the nation was thinking. Yesterday's political results and news did not disappoint.
First, the news. There are few members of Congress more repellent than Mark Souder. I have no problem with his Christian conservatism. In fact, my family was deeply horrified that in my youth I would spend my Sunday mornings in front of the TV watching the Old Time Gospel Hour with Jerry Falwell. I have no problem that he cheats on his wife; that's his business.
I have a real problem that he has been the leader in linking young people's drug use with college aid. Thanks to him, any prior drug conviction, no matter how small, results in a preclusion from any Federal student grants or loans. The War on Drugs is wasteful and futile enough. But to deny someone a college education because of something George Bush, Bill Clinton and Barack Obama did - but were never caught at or convicted - is pretty outrageous. I'm not even gonna bring up the unbelievable hypocrisy of the whole abstinence crusade while at the same time he's diddling a staff member. I'll get to the cowardice of his remarks yesterday in a moment.
My other favorite piece of news yesterday involved the holier than thou Richard Blumenthal. Embellish about your job history, OK. Fudge your academic achievements, I can get that. Actually claim to have been "in the shit" in one of the worst military conflicts in U.S. history when you weren't? That's pretty unforgivable. Attorney General Blumenthal has been an unforgiving law and order prosecutor. No compassion or leniency towards non-violent defendants. I see no reason why anyone should grant him any now. Which bring me to the "apology."
What Blumenthal and Souder have in common is there sickening lack of personal integrity while copping to there misdeed. Souder said the responsibility was his alone, and then blamed the toxic culture in Washington for his having to resign. As though no honorable man would resign for being such a hypocritical scumbag outside the vacuum of Washington. Blumenthal in my mind did him one better. Reading from the modern day mea culpa script, he proudly announced that he took, "full responsibility" for his actions. Really? He wants some credit for saying that? As though without saying that he might be suggesting someone made him lie over and over and over again? Is he suggesting that his staff might have inserted those words into his speeches over and over again. Well of course he's fully responsible! He's the one who lied repeatedly and sought to mislead his audiences. It's not just his lying by commission, he lied scores of time by omission.
As The New York Times reported yesterday, he received numerous profiles from magazines and newspapers where his having 'served in Vietnam' was prominently mentioned. He never sought to issue a correction or asked the reporters to; even if the fault was the reporters for assuming it from his statements. Further, his defense that he lies only some of the time should really remove him from serious contention for the U.S. Senate. I fear, however, that he is still a sure bet to win the seat.
As for the results, more good news.
Arlen Spector should have left with thems who brought him. I think my party is totally out of whack, but I'm still in it. After thirty years in Congress you make the good fight and live or die by the results. Yes, Pat Toomey would have creamed him. But thems the brakes. At least his defeat would have been honorable. Instead of self-serving and desperate, which is what it was last night. In Arkansas we won't know for a few weeks what yesterday meant. A warning shot or a death knell for Blanche Lincoln? It's meaning, we'll have to see.
Of course the big news of the evening was to be found in The Bluegrass State. Rand Paul's victory is a seminal event. It's one thing for a small corner of Texas to elect a libertarian to Congress (his father, Ron Paul). It's quite another for a whole state to do that. That hasn't happened yet - and it's entirely possible that once people fully understand libertarianism, they might not embrace it - but in Kentucky it's pretty hard for a Republican to lose a Senate race these days. And he didn't just beat the establishment's candidate last night. He trounced him.
The biggest loser last night as a result of Paul's win was not Barack Obama or the Democratic Party. What all news analysts missed in his victory is how potentially cataclysmic this is for the Washington Republican establishment. For the GOP, last night might have been a bigger jolt than Iceland or Katrina.
John Boehner, Mitch McConnell, Sarah Palin, Dick Cheney, Rush Limbaugh, Rudy Giuliani hate everything Rand Paul stands for. The Republican Party gave us two wars, TARP, warrantless wiretaps, rendition, torture, massive budget deficits, out-of-control earmarks, a federal takeover of our local educational system (No Child Left Behind), the largest new federal entitlement program in decades (Medicare Part D), and the so-called Wars on Terror & Drugs. Rand Paul and libertarians like him (including me) oppose every single one of those things.
Where is there any evidence his core issues - which do not include lower taxes in the first instance, by the way - will ever be embraced by the Republican officeholders in D.C.? The answer is, there is none. They support every single thing he opposes. His election will also show Scott Brown to be no friend of the Tea Party movement, if that isn't already apparent. Whereas Rand Paul isn't going to Washington to make friends, Scott Brown wants to fit into the GOP D.C. club.
If Rand Paul were to succeed in his goals he would fundamentally reshape the Republican Party and what it has become since the 1970s. The neo-cons don't want that. The Club for Growth doesn't want that. The Wall Street Journal doesn't want that. Christian conservatives don't want that. Sarah Palin doesn't want that. Fox News sure as hell doesn't want that! But perhaps, just perhaps, most of the American people do want that.
And that scares the bejesus out of Republican Congressional leaders. We know the Democratic Party - empty and pandering - opposes everything Rand Paul supports. But what happens when Republican leaders have to start stating on the record their views on his issues? And worse, taking votes on Rand Paul sponsored legislation. That's when the real trouble starts. Republican members of Congress will have to openly declare war on the Tea Party movement's agenda by their no votes. Up till now they could blame someone else for why there would be no congressional action on their agenda. No more. And that is why his victory in November is very bad news for the status quo, big spending, talk a good game, party of 'No.'
No Way Out
None of you were alive when the Supreme Court handed down its decision in Plessy or Dred Scot. Only a few of you remember the day they handed down the decision in Korematsu. But all of you will remember the day they decided U.S. v. Comstock; which now joins those other cases as one of the most shameful Court sanctioned violations of fundamental Constitutional liberties in this country's history.
The U.S. Supreme Court has overturned a lower court's decision striking down parts of the Adam Walsh Act. The lower court found that the U.S. Government did not have the Constitutional authority to prolong a prisoner's sentence after it had been served. The suit was brought by a group of former inmates who were contesting their continued detention. The Adam Walsh Act empowers the Justice Department - upon recommendation from the Bureau of Prisons - to seek the indefinite incarceration (i.e. civil commitment) of prisoners whose sentence has been served but whom it deems to pose a "danger," should they be released. This case, and the Act, relates to so-called "sex offenders." But there is nothing in today's decision that would prevent the Federal Government from applying this same principle to any crime. Bear in mind that while the blogosphere is filled with posts applauding this decision and ranting about child molesters, three of the five defendants in this case were convicted of child porn possession; they never touched a child. Further, based on the program rules promulgated by the BOP, there is absolutely no written explanation as to how these interned ex-prisoners can obtain their freedom. For these men there is simply no way out. They will be incarcerated forever, since no one has explained to them how they can get out from under the subjective evaluation of their BOP accusers.
You may read much about this decision. But no where else will you read as authoritative an analysis as you will here. I was in the same prison and program as those plaintiffs. I dealt with the same doctors and BOP bureaucracy as they did. Knowing what I do makes this decision all the scarier. Because I know that those BOP staff and that bureaucracy are as corrupt as anything you will find in a bad southern jail.
A little background. When you are convicted of a Federal so-called sex offense, you are supposed to be sent to a prison that has one of two programs housed within it. One is a voluntary treatment program, that inmates request to join. It's called the Sex Offender Treatment Program (SOTP) and inmates live, are monitored and receive "treatment" in a closed housing environment. If you do not join, you are automatically sent to a prison with a Sex Offender Management Program (SOMP). This is an involuntary program that requires inmates adherence to certain program guidelines. But at the end of the day, you do not have to engage with SOMP staff for treatment should you refuse, as I did (not that they offered any to me). They will however blackmail you into taking assessment tests prior to your release. Since it's an involuntary program, you cannot be coerced into anything that would violate your 4th Amendment rights. But you are told you either take the tests or your half-way house time is withheld.
Numerous courts have told the BOP this is illegal, but the BOP claims it does not withhold time for refusing to take the tests. I can tell you that one is told flatly that no half-way house time will be given unless you take these 3 days worth of tests. The BOP engages in this behavior in direct contravention of various court orders. Moreover, prior to taking the tests you are required to sign an indemnification form. This form indemnifies the private for-profit company that administers the test and collects the data which it then resells. Failure to sign the indemnification prevents you from being tested and thereby denies you your half-way house eligibility. Further, at the request of my prosecutor, the SOMP staff rewrote their final assessment of me after I had left the prison to paint me in a more unfavorable light. But if you've served time in Federal prison, you know this sort of behavior is commonplace.
The astonishing thing to us in the SOMP program was why anyone would volunteer for the residential SOTP program. It was a well known fact that the SOTP staff, far from providing any treatment, had as its sole goal to find evidence to have inmates civilly committed. They weren't interested in helping you, since the BOP believes against all psychiatric evidence, that there is no treatment possible. Their goal day-in and day-out was, A. to trap you into saying something that could be twisted around on a commitment form; and B. making you feel as worthless as possible. The idea being that by depriving you of any sense of self worth you would be more docile.
All - and I mean ALL - psychiatric data suggests that conditioning someone to feel worthless will have the exact opposite effect in nearly every case. The BOP staff were in effect creating a self-fulfilling prophecy. They claim that so-called sex offenders (and they lump into that category the broadest possible variety of offenses) cannot be cured and therefore need to be monitored forever - inside prison or out. By designing a treatment program that denies them any self-worth they ensure that these men will re-offend, as would be true in any category of crime if this were the prescribed course of treatment. You can be 100% sure that if bank robbers were enrolled in programs - voluntarily or forcibly - that reinforced the notion in the harshest terms that they were worthless, I can guarantee you that upon release the recidivism rate for bank robbers would double or triple over what it is currently.
Towards the end of my stay at FMC Devens (for a long time the only SOMP program in the country) the BOP moved dozens of inmates from FCI Butner to Devens in order to start a SOTP program. I was able to observe them and had been friends with a number of them prior to their joining the program. The defendants in the Comstock case were mostly SOTP participants at FCI Butner in North Carolina (I was at the prison next door - FMC Butner - for 18 months). The main reason the BOP moved them from North Carolina to Massachusetts was they hoped that after the 4th Circuit in Richmond ruled in the inmates' favor, that by moving them to another jurisdiction, their appeal would be stymied since they no longer had standing in the 4th Circuit. The timing was very suspicious as they were moved mere weeks after the 4th Circuit handed down its ruling. Devens wasn't even prepared in any way to accept them and yet they came.
You should also understand that these SOMP and SOTP staff are not doctors, at least not medical doctors or psychiatrists. In my five years in prison I never met a single sex offender staff member who was a psychiatrist. They are either civilians with no credentials, Ph.D. candidates or holders of Ph.D.s from a variety of disciplines. The so-called science behind this sex offender treatment amounts to the same science practiced in Salem for witchcraft or used by the Nazis who labeled racial purity and there methods of detection as true science. In Nazi Germany whole institutes were established in the scientific belief that racial purity could be divined through things such as hair and eye color, as well as phrenology. In 1939 Germany this was a science just as certain as physics. Today that has been replaced by the science of Sex Offender Treatment and instead of calipers to measure the skull, they use plethysmographs to measure penis blood flow to determine your level of risk. Same false claims, same junk science, same eager perpetrators, different hysteria.
Here is the chilling rationale from today's decision, "The statute is a 'necessary and proper' means of exercising the federal authority that permits Congress to create federal criminal laws, to punish their violation, to imprison violators, to provide appropriately for those imprisoned and to maintain the security of those who are not imprisoned but who may be affected by the federal imprisonment of others," said Justice Stephen Breyer, writing for the majority . Can a reasonable person find any end to that logic that would prevent the Government from detaining anyone based on their theoretical potential to inflict harm?
The irony is that in another decision today the Court said you cannot sentence minors to life without parole in non-murder cases. Their rationale? They said that minors who commit horrible crimes should still receive some hope of parole or a future outside of prison. It's ironic because in Comstock the BOP provided the Court with no rules or road-map as to how these former inmates could ever achieve freedom after they have been civilly committed.
It is also important to know that this travesty was argued before the Court by Elena Kagan. Now that this is decided law, I wonder how many Democrats on the Senate Judiciary Committee will be brave enough to challenge her on Comstock and its dreadful implications.
In just the last month, we are openly discussing rewriting Miranda, revoking defendant's citizenship in terror cases, and now civilly committing inmates who have served their time as proscribed by judge and jury.
It is no surprise to me that the near unanimous majority decision was written by Clinton appointee Stephen Breyer, father of the Federal Mandatory Sentencing Guidelines. Liberals so often rail against Scalia and Thomas but if you are a true civil libertarian you know the Constitution has no greater friend than Antonin Scalia and often joining him, Clarence Thomas. Thomas was the lone dissenting vote today (joined partially by Scalia).
It took great guts to do that in a sex offender matter. But Thomas said straight out, he could find no authority in the Constitution for the Federal Government to do what it was proposing in Adam Walsh. That was brave. And every card carrying member of the ACLU or anyone who treasures true liberty should say a little thank you tonight to Clarence Thomas for being not only gutsy, but highly principled and consistent in his judicial thinking. The Court doesn't break down as neatly as far-left liberals and right-wing conservatives would have you believe.
I opposed Elena Kagan's nomination because far from being in the mold of Stevens or Souter, she will be a Breyer, and that, to any lover of the Constitution, is far worse than any Scalia or Thomas. Make no mistake she would have voted in the majority today in Comstock. There's been all this talk about her being a leader on the left or a consensus builder. She is neither. She is a moderate through and through. She will emerge as the bitter disappointment that Breyer already has to those of us who care about protecting instead of eroding defendant's rights.
Is This What They Mean By Liberty?
Congress once again is up to its old big government tricks. Tucked away in legislation making its way to final passage are two of the most egregious intrusions by the Federal Government into the private lives of American citizens.
In the banking bill is a provision that every single financial transaction must be reported to two newly created entities, the Office of Financial Research (OFR) and the Consumer Financial Protection Bureau. Orwellian, right? Sounds like they would be something positive or merely benign. All of this data mining and collection is being done, sponsors say, to determine the financial stability of institutions. Included, but not limited to, in their future requests would be: all banking transactions; all credit card transactions; and all market/trading transactions. The Director of the OFR would have unlimited subpoena power to compel any institution to produce anything he requested. No court, no judge to check this authority; just total, unbridled federal power. We provide suspected terrorists with more checks against abuse than is being proposed here for every American citizen.
It is simply amazing to me that with this Tea Party movement - supposedly making an impact and talking non-stop about 'liberty' - that something like this is going-on unnoticed.
The second major intrusion, also for seemingly innocuous purpose, is a proposed rule that all new cars have very sophisticated black boxes installed at the time of manufacture. The suggested rationale has to do with Toyota and all this unintended acceleration. It would make it easier to verify and document customer complaints and have more verifiable and accurate data to follow-up on those complaints. Again, that might sound rather harmless and useful, but here's the reality. Data collected from those black boxes would be used by NTSA perhaps a handful of times a year. The real use for that data is by insurance companies. Right now, whether you know it or not, your car already has a box black, if manufactured after a certain year. They collect some rudimentary data that is used regularly by insurance companies - even at your objection - in order to prove driver negligence in tort litigation.
The new boxes would collect loads more information on driving patterns and habits. Insurance companies will know everything about you. Nothing would stop them from asking to look at the box before providing you with a policy, for anything. Insurance for health, life, auto, homeowners, anything. Think of the conclusions one could draw based on your driving habits and patterns. And it would be illegal to disconnect this box. You bought the car, you think you own it, but no. Now the government has a little friend sitting next to you any time you get behind the wheel. And can you imagine the extent to which law enforcement will make use of this info? There will be cases in the courts for years over the objectionable use of this personal information.
Why am I a disillusioned Republican? Because legislation like this is precisely why the Republican Party exists. To oppose it! And yet, not a word. This is the kind of thing that filibusters are designed for. This is exactly why, supposedly, there is this fledgling Tea Party movement and this near unanimous distrust and distaste for the Federal Government. And yet, time and time again we see Congress put forth such anti-libertarian, fascistic proposals.
Think all this talk from the left and the right about watching out for your interests is real? Think Congress wants to get tough with big banks? All you have to do is look at yesterday's vote on capping the size of banks. 61-33 was the final vote to kill that essential reform; 27 Democrats voted against it. Without it, nothing else they do will matter in terms of financial reform. Democrats killed it. Republicans killed it. And to be sure, the Obama Administration killed it. As a columnist in The Wall Street Journal made clear this morning, all that Wall Street cash, coming into Democratic incumbents' coffers, insures that whatever bill is finally produced, Wall Street won't be displeased.
Ponder this statistic (from Barclays Capital): Currently, 12 banks control over 50% of the nation's deposits. In 2003, it took 25 banks and in 1998 it took 42 banks to achieve that stat. This consolidation of the nation's wealth into a few untrustworthy hands cannot be a good thing for our country, even if you are a free marketeer.
Federal power, perpetuating corporate greed, industrial welfare; these are the concerns of your national legislature. I don't really think voting out incumbents is the answer. Most of the challengers in this year's election in short time would cast these same votes or blind themselves to the impact their actions have on you, your family and your daily lives.
Who is Congress working for? It would seem the answer is itself, the giant financial institutions that nearly brought us to economic ruin, insurance companies and law enforcement. There is no evidence, whatever, that Congress is working on behalf of the vast, vast majority of us. The question is, will voting out all of them make a difference or is there another option? I don't know, but at this point I am discouraged and open to suggestions.
The Rise of the Machines
In one sense, yesterday's wild ride on Wall Street is easy enough to understand. The machines beat back the humans. You do not need to watch a Matrix, Transformers or Terminator franchise film to see machines defeat humanity. You only need to trade stocks. Apparently, the future is now.
For centuries, futurists and science fictions writers have imagined what life would be like in the age of the machines. Invariably they got the details wrong, but almost always the implications were spot on.
To understand what happened yesterday, the NYSE - and its computer driven trading models - has become like a giant poorly designed dam. In a properly designed dam, the water rushes in against the concrete barriers. The water is then diverted to tunnels which sends the water either forward to the concrete and penstocks for power generation or it is just released slowly, perhaps for irrigation. The point being, there is a plan for where it goes and what is done with it.
At the NYSE, trades come in at moments of calamity and - as we learned yesterday, no one has the faintest idea what happens to them. Put simply (and that's the only way I could understand it), for some reason (that has yet to be understood) Proctor & Gamble's stock began dropping precipitously for no valid reason. The NYSE stopped trading in that stock for 90 seconds in order to assess. And that's when the machines took over.
Unlike in the old days, when a stock was traded only on the exchange where it was listed, now a stock can be traded in dozens of places around the world. Closing the spigot at the NYSE did nothing in terms of stopping the fall in P&G. When that 90 second halt in trading occurred the computers did two things: 1) they started selling and as trades came in for P&G they rerouted them (like breaching the dam) to other exchanges to affect the trade. That caused the plunge in P&G to continue and increase. Whereupon, 2) the market as a whole - the computers - started selling wildly. The NYSE, unbelievably, hadn't realized that might be an inevitable consequence of such a halt in trading.
And now the NYSE says that for the 90 minute span that the market went crazy yesterday they are going to reverse many of the trades that fell within a certain percentage swing. How unfair is that? What if you meant to sell? What if you saw a particular stock going down and you wanted out? No go, apparently. Now you're stuck with a stock that is possibly 15-20% lower than what you thought you sold it at. That's the problem with all the machines running things. This is really about greed, once again, and nothing else.
In order to have daily trading volume in the billions instead of the millions you need computers, not traders and specialists on the floors. This allows the investment banks and brokerage companies to reach clients they never could before and at commissions that make it affordable to anyone. This generates zillions for them. Is that good? It's good for them, that's for sure. Having the whole country invested in the stock market like in the late 1920's may not be such a good idea for us or the economy as a whole. But those are questions for Stiglitz, Krugman, or Greenspan; it's a little over my head. What I do know is that the machines won yesterday and we should all be a little spooked about that going forward.
A Kind Word About David Paterson
As the great Kitty Kallen used to say, "Little things mean a lot." In this modern age we don't give much thought to the license plates we attach to our cars. When I was a boy it was still a big deal to see a plate from California or Nevada. Moreover, states left license plates unchanged for decades. A state's plate design could and would easily become iconic. Why do we all know New Hampshire's state motto, "Live Free or Die?" We know it from its license plate. These days you can choose from a variety of plates with various causes, designs and quotes. But back in the day we all had to have the same plate. Its design, not only representative of our state, was also to a large degree, representative of our culture. A license plate wasn't merely reflective in its appearance, it reflected how we as a state saw ourselves.
Well, a little more than 20 years ago, Mario Cuomo decided that our state's license plate - iconic and unchanged for decades - should be redesigned. New York had had forever the famous orange and blue license plate. Back then it just said 'New York,' no other words (Cuomo would add The Empire State). People around the world could pick out that design as New York's plate. It was strong, bold and simple - no fuss. Kinda how we in NYS see ourselves. It united upstate and downstate. Live in the city or the sticks, but you had that orange and blue plate in common.
What the Cuomo Administration produced in its place was God awful. During those Cuomo years it was truly embarrassing to have a car with a NYS license plate on it. It very quickly became the ugliest license plate in America. Ironic, since by the time of his final, failed re-election bid in 1994, the only positive thing Mario Cuomo himself could say about his record was that he had revamped the rest stops along the NYS Thruway.
When George Pataki took office in 1995, one of the first acts of his Administration was to get rid of that Cuomo license plate. We were all grateful. What he gave us instead was bland and lifeless. Inoffensive to be sure, but not representative of the great state. And so, with some minor tweaking, it has remained since then.
Now all of a sudden, without any warning, David Patterson has given us back our icon. His original plan was to raise hundreds of millions of dollars quickly by requiring all NYS car owners to turn in their existing license plates for the new ones and pay a $40 fee in the process. Twelve million cars and trucks multiplied by $40 and you can see that's a few shekels to close the budget gap. But that plan was withdrawn. Now all new plates issued will be the orange and blue. In a few years time, that's all you will see on the road.
So on behalf of all car owning New Yorkers, I want to thank David Paterson. He hasn't done much. He won't be remembered by generations. But he has given us back our plates and for that we'll remember him fondly.
Newsweek
Will I miss Newsweek, now that it being sold (or given away, more likely)? Not really. I'll miss George Will and David Ansen. But to me Newsweek stopped being relevant or interesting when it became the Fareed Zakaria newsletter. Whole issues seemingly were devoted to his thoughts on everything ranging from Iraq to Katrina. I never found him particularly interesting or insightful, so this reliance on his viewpoint was always lost on me. What market segment was he aimed at? Was The Post trying to capture the moderate Muslim segment of U.S. readers? I guess they succeeded.
Newsweek is an institution. So from that standpoint it will be missed. It was, in its time (no pun intended), a worthy competitor and sometimes leader in the weekly news magazine wars. But now that The Washington Post Company has basically stopped being about news gathering and more about Stanley Kaplan, the inevitable realization set-in that dumb high school kids will always be a better bet for profits than educated adults. I hope some deep-pocketed Murdoch or Zuckerman type - willing to sustain the losses - scoops it up and makes it a worthy read once more.
Right Man, Wrong Job
In the early weeks of the Giuliani Administration, Rudy commanded that all his commissioners and top staff attend a day-long session at Gracie Mansion. The idea was to hear speakers who would discuss innovations in government, new ideas and new ways to deliver services. It took place on a Saturday as not to interfere with weekday business.
One reason I was so excited about a Giuliani Mayoralty was Rudy's enthusiasm for new ideas. Republican ideas, Democratic ideas, it didn't matter. Where in the U.S. were the innovations coming from and who was in the vanguard of change? That's what he wanted to find out. No city of any size - and especially New York City - had embarked on such a wholesale blank slate in terms of how it looked at doing its job.
Back in 94 Ed Rendell, the Mayor of Philadelphia, was considered a change agent and had introduced new service delivery methods in his city. Randy Mastro was old friends with his Chief of Staff and asked me to arrange Rendell's schedule. I was really impressed that for a Mayor of a big city he traveled alone. He drove himself down from Philly to NYC. I arranged with the NYPD to have a police escort meet him at the NY-Penn border and escort him to Gracie for his talk. Also that day, I believe, James Wilson or George Kelling, appeared as the authors of the 'Broken Windows' theory; the guiding philosophy behind Rudy's policing strategy.
But the main inspiration for change on the municipal level - and someone the administration had been in touch with going back to the campaign - was the Mayor of Indianapolis, Steve Goldsmith. Goldsmith had become a true innovator in terms of forcing entrenched municipal unions to compete for existing city services with the private sector. The results in Indianapolis demonstrated that in those instances where the unions won the bid, they were able to lower costs and increase productivity. It was proof Rudy needed to try that experiment in union laden NYC.
Richard Schwartz, Senior Advisor to the Mayor, was the man at City Hall responsible for developing the policies, implementing them and riding herd on deeply recalcitrant commissioners and agencies. Schwartz was in regular touch with Mayor Goldsmith as the Indianapolis experiment proceeded. I met Steve Goldsmith a few times back then and found him to be bright, energetic and non-doctrinaire. What he was not, was fluent in managing agencies or a city the size of New York City. He was a fine, forward thinking Midwestern Mayor. But running New York City to a Midwestern Mayor would be like being made Mayor of Baghdad; simply beyond their ken or life experience.
So while I applaud Mayor-for-Life Bloomberg for bringing Steve Goldsmith to NYC, I cannot help but be disappointed once again in how the Mayor demonstrates daily how much he disdains actual reform. Notwithstanding the wholesale capitulation by the Bloomberg cheering NY press corps, and his relatively decent poll numbers, the Mayor has never been a change agent. Reform, real structural reform, scares the hell out of him. I don't know why but in his eight years in office he has made zero effort at reforming anything. His appointment of Steve Goldsmith as de facto First Deputy Mayor - charged with day-to-day running of the line agencies, is misguided and reflective of the fact that even when he has a good impulse it dies of loneliness. The job for Goldsmith was the old Schwartz job. Let the former Mayor have an office (not a desk in the idiotic bullpen) in City Hall where he can examine, ruminate and investigate City services and practices. Give him a free hand to go into every sector of City Government and find the waste, abuse and centuries old worst practices that I know exist. You cannot do that and run the City at the same time. Peter Powers couldn't do it as a lifelong New Yorker and surely Steve Goldsmith won't be able to as a recent emigre. With that job it's one or the other.
But Bloomberg specifically does not want him doing that. For eight long years Bloomberg has had a hands-off approach to his own agencies. He appoints the Commissioner and then leaves them alone. No edict for reform or overhaul has even been forthcoming. The best job on earth is that of a Bloomberg commissioner because no one will ask anything of you. If you're a top notch administrator - John Doherty (DOS), Emily Lloyd (DEP) - then it's a great opportunity and the city in turn is fortunate. If you're a dud (the list is too long) then we're all the worse off because unless your tenure is scandalous - Lancaster (DOB) or Scarpetta (FDNY) - no one will ever say a word regarding your tepid performance.
For eight years Bloomberg has given the City unions every possible concession they've requested. We will be in hock for many decades because of his repeated pension giveaways alone. So he's made it clear he wants no reform in how we do business, with two exceptions. He hates cars (although he owns a fleet), so he wants his DOT Commissioner to return NYC to the 18th Century. He hates smoking - because he can't partake anymore - and orders his DOH Commissioners to spend millions on anti-smoking campaigns that have created the largest black market for bootleg cigarettes in the United States, possibly the World. And, of course, the attendant crime increase that would naturally come from that policy. Further, he hates fat people (no svelte size 32 waist he, btw) and commands said DOH Comm. to uselessly ban cooking oils and sugary drinks that only 4 years ago he declared were going to save his budget and the schoolchildren of NYC (the drinks, not the oils). Now he wants to forcibly ban salt, although he disgustingly ladens it on pizza like its red pepper flakes. If you ask me, it's a lot like having Marie Antoinette as your Mayor.
I welcome Steve Goldsmith to the Big Apple. I am just saddened that he is in the wrong job. The job he's getting he is not equipped to handle and the job he should have been given, Bloomberg wants no part of. Assuming he's not lying yet again, this is going to be a long 3 1/2 years.
No More Sotomayors
As Barack Obama prepares to winnow down his list to a small handful, it's important to stop and realize just how crucial a Supreme Court appointment this will be. Each new opening is met by claims that "this is the most important one in a generation." But in the case of the Stevens seat, it's true.
My fear, as realized by the appointment of Sonia Sotomayor, is that rather than doing something inspired, something brave, Obama will play it safe. A safe appointment for the Department of Interior or Energy is not going to effect many peoples actual day-to-day lives. A moderate, uninspired choice to replace John Paul Stevens will effect nearly everyone in this country and beyond.
We have a 5-4 court that with the arrival of Alito - coupled with the departures of O'Connor and Souter - will have fewer and fewer 5-4 decisions where the liberals will be writing the majority opinion. Sotomayor was a fine Appeals Court judge. She is a lackluster and ideologically middle of the road candidate/Justice for the Supreme Court. When he nominated her he had a 60% approval rating. That political capital and good will (not to mention 60 Senate seats) would have allowed him to pick a legal thinker of extraordinary caliber. Instead, he fell into the same trap - needlessly, that time - which Bill Clinton did. To get their nominees confirmed, Democratic presidents find the most liberal nominee who Orrin Hatch can support or at least not vociferously oppose. But with the Souter seat, there was no filibuster possible. Obama still had his pre-healthcare numbers and sheen. His one moment to put a Douglas, Brennan or Brandies on the Court, and he let it pass.
This time, with his numbers sinking and the nation in a foul temper, he will respond with bland and safe. He should swing to the rafters and nominate someone truly great. Republicans nominate extremists like Alito. Samuel Alito is by no means mainstream; every Republicans favorite word during the confirmation process. He should nominate the left's equivalent of Samuel Alito. Republicans get to nominate so-called conservatives and Democrats are only allowed to nominate moderates. Stephen Breyer. The man behind mandatory prison sentencing guidelines and he's supposed to be the left's answer to Alito, Roberts or Thomas? How in the world did we come to that?
I am so sick and tired of these appellate court judges for the Supreme Court. Moreover, everyone chosen it seems has to have been a former prosecutor. And these names being floated! Elaine Kagan argues passionately on behalf of the most horrific Bush era/anti-civil liberties laws. It's sickening the things she has argued in defense of. How could anyone on the left support her nomination? Jennifer Granholm. Seriously? And Janet Napolitano? Secretary of the fascistic sounding Department of Homeland Security. Liberal foil for Scalia? It's a joke, right? Her record in this job makes Michael Brown look like Jack Welch incarnate (I know he's not dead). One of the latest names to emerge is Ann Claire Williams. Black, woman, former federal prosecutor and an appeals court judge, FROM CHICAGO! Has he touched every possible base on this one?
Let's get rid of the staus quo. Let's be bold, daring and appoint someone as inspiring as the ideal of the Supreme Court itself. I worked one block from the Court and went twice to hear arguments there (Senate staff got reserved seating back then). It gave me chills every time I passed that building or went inside. It truly is the great equalizer in this democracy.
My candidate for this seat is the same as it was for Souter's. He can knock one out of the park by nominating Kathleen Sullivan, former Dean of the Standford Law School. A more serious, nuanced, and thoughtful legal mind on the left cannot be found. She can go head to head with anyone on that Court from day one. And when I advocated her appointment last year I didn't even know then she was gay. I've only discovered that recently. It makes it a much more interesting choice and confirmation.
Here is my money-back guarantee. Fifty or one hundred years from now, no one is going to remember Sonia Sotomayor or the dullard he most likely picks to replace Stevens. Is that really the legacy he wants? Does Barack Obama really want a Stephen Breyer mediocre pick to be what he's remembered for judicially, when he has been given a second opportunity to opt for greatness? I think I know the answer, but we'll see.
Monetizing Nothing
The benefit of being 46 years old and having lived through the three worst stock market crashes since the Great Depression, is that (a) these panics no longer scare me when they occur; and (b) the current behavior by the Wall Street titans is interesting to analyze and compare with past reactions to extreme market volatility.
I mention this because Goldman's woes and the SEC case against them takes me back to the 80's and Drexel Lambert. When cover story after cover story began to lambaste the use of junk bonds - and Drexel's lead role in creating them - Drexel launched a series of TV and print ads aimed at refuting the argument that they - Drexel & junk - produced nothing. Nothing, that is, but profits for Drexel and vulture greenmailers, it was said. One ad in particular stuck with me. It was for Kindercare; then a national chain of day care centers, now 'learning centers.'
The ad - complete with teachers, sandboxes and classrooms - said very simply that without Drexel's high yield bonds (junk) they would not have been able to obtain the financing for their company, its expansion and all the good they were doing for kids. Notwithstanding Drexel's fate, from a marketing and PR perspective, I thought it was a very effective ad because it explained, at a base level, what purpose junk bonds served and what they could produce. Love them or hate them, but that junk could actually produce some real bricks and mortar not just profits from over-leveraged acquisitions. It put a face for the public to an otherwise esoteric financial instrument.
The problem for Goldman Sachs - and our financial system in general - is that there is absolutely no way of explaining to anyone the societal or economic benefit of these synthetic Collateral Debt Obligations (the Paulson trade). When asked yesterday by CNBC and CNN what purpose they served, Goldman CEO Blankfein could only say that they allowed interested parties to seek out appropriate vehicles for their level of risk, both long and short. In essence, these synthetic CDOs or derivatives of derivatives of derivatives, serve no purpose other than creating artificial bets against made-up risk.
That is Goldman's problem in all this. There is no Kindercare or any brick and mortar behind any of these synthetic CDOs. There is no face that a PR company can attach to these financial products. That is unheard of in the financial marketplace and that is why we stood on an economic precipice in 2008. Wall Street had become too good at monetizing nothing. And that monetization of nothing didn't benefit companies or even greedy greenmailing individuals, like in the 80's. No, they only benefited Citi, Bear, Lehman, Goldman, et al. That is until the housing bubble burst and the transparency of nothing became toxic.
What yesterday demonstrated vividly is that regulatory reform legislation is needed more than ever. Goldman Sachs said for all the world to hear that their clients interests are never paramount to their own. Those clients are largely not John and Jane Doe from Omaha but rather huge pension systems, corporations, trusts and banks. The venomous ink that oozes out from 85 Broad Street threatens to poison us all.
In the old days, investment banks held positions on both sides of a trade to guarantee neutrality. Today, Goldman aggressively sells you "shitty" assets while privately betting that they'll fail. The marketplace cannot function at this level of sophistication with players behaving in this manner. If we were in China, after their plundering work on Greek debt, Mexican & Argentinian debt and their windfall off of AIG's collapse, the senior execs at Goldman would be put up against a wall and shot. But this is America. Here we legislate reform and yesterday, for all the Sturm und Drang we witnessed, it became clearer than ever that something needs to be done to stop the Vampire Squid from killing us all.
Congressional Jousting with the Vampire Squid
Having worked in the U.S. Senate for over 2 years, I sat through more committee hearings than I care to count. You do learn a few things watching Senators question and grill witnesses over and over again. If you're a regular C-Span viewer you'd learn these same rules. The number one rule, above all others, is that no matter how stupid or ill informed the Senator is, you treat his/her question as though it's imbued with the wisdom of Solomon. How many times did I see 85 year old Strom Thurmond reading his staff-prepared questions only to be oblivious to the fact that his witness had gone astray and Thurmond's prepared follow-up had nothing whatever to do with the witness's actual response. It was to wince. But no one acknowledged it, no matter how bad it got.
I've seen difficult witnesses, combative witnesses, deceptive witnesses and really stupid ones as well. But never have I seen the slickness and arrogance that was on display in the Senate Hearing Room today. I swear to God, there must be something they serve in the executive dining room at Goldman Sachs that breeds this level of hubris, arrogance and contempt.
The Senators for their part didn't acquit themselves much better. Granted, Sen. McCaskill is unquestionably an idiot. Only in a Midwestern state like Missouri could she have become the State Auditor with financial skills as poorly honed as these. Where she tried to sound 'with-it' and 'in the know,' she came off as lame and out-of-touch. Where she tried to exert populist anger on behalf of her constituents, she came off looking like a rube. Also, we now have to ask after listening to her: does she have a gambling problem? But, nonetheless, the rules say you have to sit there and marvel at her command of financial minutiae. You have to take your beating.
Not the folks from Goldman Sachs, however. Never in all my years have I seen a witness as arrogant and contemptuous as Josh Birnbaum. Wow, what an asshole he is. But I'll give these guys credit. Their attorneys prepared them extremely well. As Sen. Collins noticed quickly, all the witnesses had been instructed to try to run out the clock in how they answered the questions. Their attorneys had instructed them well in witness behavior. Rule 1 - never, ever answer a question relating to a document without having said document placed in front of you and relevant section identified; accept no quote or referenced comment as fact; never give the questioner the benefit of the doubt (and in fact the Senators were terribly prepared by their staffs and constantly referred to the wrong documents). Rule 2 - act dumb. Have the question repeated back numerous times, feigning ignorance over the nuanced use of phrases or the definition of certain common words or routinely used industry terms. Their plan was to fake cluelessness and if that didn't work, be brusque.
Ironically, the witness most observers anticipated being arrogant, was actually the best witness on the panel. Fabrice Tourre (no accent on the E apparently), the "Fabulous Fab", was polite, respectful, humble, and relatively - at least for the Goldman crowd - responsive. The Wall Street Journal commended him today for his unintentional frankness as displayed by his private e-mails. He was absolutely sure that all these derivatives were a house of cards and was honest enough to admit it. He, more than anyone, did himself some good today.
I don't think Carl Levin acquitted himself very well. And I am not referring to the obscenities, something we never heard publicly when I worked there. For all his CPA-like knowledge of Goldman's books, his bullying didn't add to his case. I thought, as usual, that Tom Coburn was the fairest and most rational Senator up there. Goldman Sachs, through no benefit of their conduct today, probably came-out unscathed and ended the day in slightly better shape legally then when it started.
The issues are far too complex for the average person - or even most Senators - to understand, as they were laid out today. Sen. Levin tried to land some heavy blows but they fell flat because the substance was too esoteric for most to grasp. The charges contained in the SEC complaint are not difficult to understand and I believe will stand up in court. As usual, Senators, in an attempt to grandstand, took a relatively simple matter and muddled it up.
As for financial regulatory reform, that was helped a lot today. The tricks and tactics, not to mention Birnbaum's behavior, employed by Goldman Sachs only helps to reinforce the public's notion that Wall Street holds Main Street in utter contempt. Yes, at 85 Broad Street they are popping champagne and slapping backs this evening at how they 'stuck it' to the the Senate today. In typical Goldman fashion, however, a selfish short-term Goldman victory will prove to be a significant long-term Wall Street defeat.
SB 1077
What to make of Arizona's new illegal immigration measure? As you know I am a strict 10th Amendment advocate and believe that states have all powers not specifically enumerated in the Constitution to the Federal Government. I'll agree on it's face what's going on in Arizona might be a confusing matter. Is this a border issue? Federal. Or is this a crime issue? State. I have great sympathy for Arizona and the predicament their legislature, governor and citizens find themselves in. Because of the insane drug policies in this country parts of Texas and Arizona have become the Wild West. The Federal Government has ignored the border problem by investing, uselessly, in Buck Rogers virtual border control. In the process, wasting over a billion dollars, 10 years and achieving almost no positive result. For that amount of money a real fence could have been erected and the remainder spent on agents. But a fence - or some physical equivalent - makes liberals squeamish. It recalls East Germany, albeit their intent in the erection of their wall was for the exact opposite purpose.
Now with that said, I cannot support this law as enacted. I know almost nothing about Gov. Jan Brewer. I will tell you, however, that she gave one of the most intelligent, cogent and thoughtful bill signing speeches I have ever heard. She clearly has top notch speechwriters there in Phoenix. It was only when she took questions that she revealed why this law won't work. In fact it can't and still remain comply Constitutionally. Frustrated at the reporters asking how police would ID an illegal alien for questioning, she said, "We need to trust in law enforcement."
Up until 40 years ago, the one thing we assuredly did not do in this country was trust in law enforcement to protect our civil liberties. But starting with the '68' election and the law & order platform of Richard Nixon, a backlash occurred over excessive defendants rights and the need for 'balance.' Courts and Congress started to give the police more and more discretion and leeway in the exercise of their duties and citizens lost more and more essential liberties. Police corruption and brutality - always bad - only got worse. Except now we forgive them in the name of balance. Cops used to be civil servants who performed a tough job and commanded - or should have - respect. Now cops are held - and hold themselves - as some sort of virtual deities. Look a cop in the eye, look at him the wrong way, talk back, and you'll be arrested on a trumped up charge. Look at NYC and the trial of this cop who pushed a bicyclist. Had there not been a camera filming the whole thing his perjured account of the incident would have been the truth. He lied repeatedly as to the provocation and the result.
Worse yet, in the age of terror, all cops now believe themselves to be Jack Bauer. Whether NYC, LA or Des Moines, all cops now see themselves as the front line protection against terrorists. Listen to Fox News. All cops are heroes and all defendants scum who would challenge their authority. The balance we need in this country is restoring our natural and historic suspicion of authority, whether political or law enforcement.
The question in Arizona is what does a "reasonable suspicion to suspect that someone lacks identification," look like? I don't know. In fact, no one knows, that's why you have to trust law enforcement. Well I don't and neither should you.
The head scratcher for me as a New Yorker, is how is this Arizona law in any way different than the 'Stop & Frisk' policy of the New York City Police Department. Last year almost 600,000 mostly black and Latino New Yorkers were stopped and subjected to a search for no reason. Merely because they were black and Latino and living in a high crime neighborhood or worse walking in a white neighborhood.
Our Mayor for Life and his Police Commissioner claim some rationale for each and every stop, but it's ludicrous. Minority elected officials, civil rights groups and the usual black panderers like Sharption say nary a word about this. It is the most far reaching and egregious systemic civil rights abuse in the nation and no one says a word. Even the black opposing candidate in last year's mayoral election basically supported the policy. Imagine a young black man being told to get up against a wall for a frisk and exercising his constitutional right to tell the cop to "Fuck Off." He'd be arrested. And for what cause? None. Merely because he was young and black. How is that any better - if not horrifically worse - than what has been enacted in Arizona? I don't see it. Imagine if a year from this August (when SB 1070 takes effect) if stats reveal that cops questioned 600,000 Latinos using SB 1070 as the underlying basis. The country would go nuts. Where's all this national outrage about 'Stop & Frisk' that exists over SB 1070? I don't know.
It is clearly the Federal Government's responsibility to close and control the border between Arizona and Mexico. It refuses to do the job. And because of its drug policies, makes the problem worse each and every day. I sympathize sincerely with Gov. Brewer and the citizens of Arizona in their disgust of the Federal Government and its abrogation of its constitutional mandate. But unfortunately, this measure simply isn't the answer, won't stand up to challenge and sadly, it shouldn't.
Let 'Em Crash
During the time of the financial crisis in 2007 & 2008, I was repeatedly reminded of a line from one of my favorite movies, Airplane. If you'll recall, the plane is headed for disaster and the action switches to news accounts from around the world on the crisis. It culminates with a spoof of the 60 Minutes: Point/Counterpoint segment featuring James Kilpatrick and Shana Alexander. For those of you too young to remember the pre-Andy Rooney days, Kilpatrick was the conservative and Alexander the liberal. Further, James Kilpatrick was known for being disagreeable and curmudgeonly.
In the film, the Kilpatrick stand-in is presumably responding to Shana's argument for assistance or compassion for the doomed passengers. He says, however, "Shana, they bought their tickets. They knew what they were getting into. I say, let em crash."
To me that was always hysterically funny because on the one hand it's so outlandishly callous. But on the other, he's kinda right. Air travel is inherently dangerous. Why should this metal tube weighing thousands of tons stay airborne? It defies common sense even if it doesn't the laws of physics. It's an extremely laissez-faire view of travel.
When Paulson and Bernanke were scaring the bejesus out of everyone in 2007 with their predictions of imminent worldwide financial disaster, my attitude then was let em crash. It was not the role of government to save AIG, Bear Stearns, Merrill Lynch and especially Goldman Sachs regardless of the consequences. What is the free market if their is no cost for failure? Lehman went under and the sun still shone the next day. It would have had Bear, Morgan Stanley, AIG and Goldman folded as well. But no. The Friends of Goldman Sachs intervened to make sure the cost of failure was enrichment. The investment houses changed their status to bank holding companies and the billions flowed freely from the Fed's discount window. Not only was failure and gross incompetence not punished, it was rewarded lavishly. At every possible stage Congress, at it does so often these days, abrogated it's basic authorities to the Executive and asked no questions. Hank Paulson broke his word again and again as to how he would use TARP funds. And like the Iraqi War Resolution that Congress has never rescinded, the blank check Hank Paulson received and bequeathed to Tim Geithner has never been amended or canceled.
Which brings me to today and the legislation being pushed by President Obama and the Democrats to address systemic flaws in the financial markets. What's my take on this bill? It's garbage. It's worse than the status quo. Why? Because it gives false comfort to Americans who are furious at these bailouts and want absolute assurance that they will never happen again. Better to live with the possible threat of financial collapse and remain vigilant than to be lulled into this phony sense of security. This bill is like the homeowner who knowingly installs defective smoke detectors in his home. Eventually seeing them day in and day out will provide just enough comfort to provide a false sense of safety. Better to have none and be on the look out for grease fires.
I have been absolutely amazed after watching the news and Sunday talk shows for weeks that no journalist has asked the simplest and most fundamental question regarding this bill and the Republicans criticism of it. I've seen every player in this debate interviewed: Geithner, Bernanke, Emanuel, Dodd, Frank etc., and no one has asked them this; If today, or in the future, we were back in that House conference room and the Sec. of the Treasury and the Chairman of the Federal Reserve were guaranteeing you that if you did not hand them a blank check to seize companies and calm the markets, the financial system would collapse tomorrow, would this legislation do anything to prevent you from 'writing that check?' We all know the answer. The answer is NO. Nothing in this legislation would prevent another weekend bailout of Bear or AIG. And the American people know that and that is why they are furious. This is all bullshit window dressing with talk of more regulators and consumer watchdogs. Regulators are only as effective as the administration that's appointing them. If, instead of a tough Obama appointee, we elected another Bush/Cheney type ticket, what would stop them or their regulators from being extraordinarily lax and disinterested in enforcement. The answer? Nothing. The same SEC that ignored Madoff, Sanford, and on and on would do it again. The same Democrats (Summers, Rubin and Geithner) who bullied and threatened Brooksley Born to back down from promulgating derivatives rules could easily do it again. In fact, they're still running the show. We don't trust in men in this country, we trust in laws. Or at least we used to.
What the American people want to see is the Chinese wall of Glass-Stegall put back up. They want either legislation or a constitutional amendment to prevent any more bailouts. And they want caps on the size of these too big to fail institutions. Personally, I would outlaw any and all derivatives. They simply serve no useful, fundamental economic purpose. Other than perhaps for farmers or airlines hedging fuel prices.
Does this legislation do any of those things? Nope. If another Bush administration were to take office tomorrow, would anything in this legislation compel them to monitor Wall Street? Nope. It provides certain tools, but they're only as potent as the administration in power and who it chooses to appoint to those posts.
This is flawed legislation and Obama should not be supporting it. It reeks of Wall Street political contributions that have watered down its effects. Barack Obama, who was so deft at sensing and capturing the mood of the country in 08, simply doesn't get that this is not business as usual when it comes to market reform. People are very angry and simple tinkering - which is all this bill does - will not suffice in this climate. Mitch McConnell is right, albeit for the wrong reasons. He wants to curry favor with Wall Street money for the 2010 election. He think the bill is too tough, although he mouths the opposite. But I agree that this would be worse than nothing. Let us have a referendum in November on both parties as to their milquetoast treatment of these financial vultures. Because until we say - like the ersatz James Kilpatrick in the movie - Let Em Crash, companies like Goldman Sachs will keep sucking our blood and draining our economic marrow. Only a silver bullet or sharpened stake can slay Goldman Sachs. So far the Democrats have only produced spit balls. And trust me they are not cowering but rather laughing over at 85 Broad Street as the profits set records and the White House provides them with their lawyers.
To View Older Posts, Please See Old Musings IV
