Asleep at the Switch–With One Eye Open

Since I'm already antagonizing Toast today... Let me excerpt and link to an excellent column by Matt Taibbi that highlights the fundamental flaws in the financial system and its supposed overseers:

For what we’ve learned in the last few years as one scandal after another spilled onto the front pages is that the bubble economies of the last two decades were not merely monstrous Ponzi schemes that destroyed trillions in wealth while making a small handful of people rich. They were also a profound expression of the fundamentally criminal nature of our political system, in which state power/largess and the private pursuit of (mostly short-term) profit were brilliantly fused in a kind of ongoing theft scheme that sought to instant-cannibalize all the wealth America had stored up during its postwar glory, in the process keeping politicians in office and bankers in beach homes while continually moving the increasingly inevitable disaster to the future.

That's just about the most perfect capsulization of our recent history that I've seen anywhere. But he expands from there, getting into the failures of the regulatory agencies the media and both parties, and why we're really not in a position to make anything much better anytime soon.

Fannie, Freddie, and the New Red and Blue

Go read the whole thing.

Miscellany

I STILL WANT HIM ON MY TEAM
Half the lefty blogosphere, including our good friend, Toast, have their panties in a bunch over Matt Taibbi's latest Obama-beatdown in Rolling Stone. It's not Taibbi's best article—and I say that because I was unable to get through it—and he seems to have botched and/or stretched some things to make a point, but count me with John Cole and Kevin Drum, and then John Cole on Drum—Taibbi's larger point handily outweighs any flaws in the article, and focusing only on Taibbi's scatological writing style or the disputed "facts" is really missing the forest. As for Tim Fernholz's "takedown" of Taibbi, I'm not so impressed, and I counter with Felix Salmon, or Taibbi himself.

Let me repeat something I said at Toast's (again):

I have a high tolerance/threshold for Taibbi's style and his conclusions and implications—even if speculative and ultimately proven wrong.

Why?

Because he and NPR's This American Life seem to be the only two entities in the whole of the fucking media that care enough to look into this stuff at all.

And he is one of the very few columnists with a national outlet (RS) that is attacking the Administration from the left.

Does Taibbi drive too fast and have his eyes closed some of the time? Sure. But he's a useful balance to the rest of the fucking establishment media that won't even take the car out of the garage.

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POTY > POTUS
August J Pollak thinks TIME is going to name Sarah Palin its "Person of the Year." Much as that thought makes me want to retch, he makes a good case. Losing works out nicely for Palin, I suppose—fame, $$$ and attention without actually having to do anything or have responsibilities...

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WORTHLESS
The House passed a "sweeping financial regulation" the other day, though, several Democrats jumped ship to scrap a key component designed to help ordinary citizens—the "cram-down" provision:

Republicans were successful in killing an amendment sought by housing advocates that would have given bankruptcy judges the ability to rewrite terms of mortgages so borrowers could remain in their homes. Judges can do this for second or vacation homes, luxury yachts and other areas where consumer debt is involved, but current laws prohibit reworking the terms of first mortgages.

Numerous Democrats joined GOP lawmakers in defeating this amendment — sometimes referred to as a cram-down provision, since judges could impose terms on banks — on the grounds that it could weaken bank finances and represented too steep a change from current practice.

And they did it without a Lieberman of their own... Since banks getting slowly paid off on a mortgage at a lower rate is less short-term profitable than foreclosing on people now, it had to go.* Even though in the long run it would probably be better for everyone—banks included—and would actually, you know, allow people remain in their homes? Pathetic. Especially since this has already cleared the House before.

*What was Matt Taibbi thinking—there's no banking conspiracy...

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RICKEY LIVES
I was about to take the slackers at ATK to task for the paucity of posts over there—even with the big free agent signing of Mr. Henderson, when I decided to check Rickey's previously moribund site—lo and behold—Rickey's back from the grave and ready to party.

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UNGOVERNABLE
Matt Yglesias explains the current state of the union... Pretty tough to disagree.

What He Said...

I've had a best-case scenario collection of health care reform links waiting to morph into a post that tried to be optimistic, but at the end of the day, I pretty much agree with Matt Taibbi [emphasis mine]...

It’s the same with this health care bill. Who among us did not know this would happen? It’s been clear from the start that the Democrats would make a great show of doing something real, then they would fold prematurely, ram through some piece-of-shit bill with some incremental/worthless change in it, and then in the end blame everything on Max Baucus and Bill Nelson, saying, “By golly, we tried our best!”

Make no mistake, this has nothing to do with Max Baucus, Ben Nelson, or anyone else. If the Obama administration wanted to pass a real health care bill, they would do what George Bush and Tom DeLay did in the first six-odd years of this decade whenever they wanted to pass some nightmare piece of legislation (ie the Prescription Drug Bill or CAFTA): they would take the recalcitrant legislators blocking their path into a back room at the Capitol, and beat them with rubber hoses until they changed their minds.

The reason a real health-care bill is not going to get passed is simple: because nobody in Washington really wants it. There is insufficient political will to get it done. It doesn’t matter that it’s an urgent national calamity, that it is plainly obvious to anyone with an IQ over 8 that our system could not possibly be worse and needs to be fixed very soon, and that, moreover, the only people opposing a real reform bill are a pitifully small number of executives in the insurance industry who stand to lose the chance for a fifth summer house if this thing passes.

It won’t get done, because that’s not the way our government works. Our government doesn’t exist to protect voters from interests, it exists to protect interests from voters. The situation we have here is an angry and desperate population that at long last has voted in a majority that it believes should be able to pass a health care bill. It expects something to be done. The task of the lawmakers on the Hill, at least as they see things, is to create the appearance of having done something. [...] But these Democrats aren’t even pretending to give a shit, not really. I mean, they’re not even willing to give up their vacations

Yeah. Pretty much. These fuckers are worthless.

Link Dump

BETTER DEMOCRATS, PLEASE
Harry Reid is a worthless sack of shit. The latest proof.
[h/t Angelos]

BECK, MUTATIONS
Matt Taibbi on the transformation of Glenn Beck from lesser-known, crazy right-wing asshole to...a-list, certifiable, apeshit-crazy, paranoid, crybaby nutjob in a frying pan and on steroids..

TORTURED LOGIC
I find myself falling neatly between Andrew Sullivan and Glenn Greenwald on the release of the torture memos. Yes, you can, Mr. President.

STFU
Daniel Larison pours Krauthammer and others on the right, a big ol' cup.

"RICH KID BLUES"
von, the conservative over at Obsidian Wings, tries to counter Ezra Klein's point about the tax burden of the wealthiest Americans...and fails miserably. The comments are awesome.