Tag: TMC Politics

Cross posted from The Stars Hollow Gazette

“Irrational exuberance”, “unrealistic expectations” accurately describe some of the reports about the alleged rebound in the housing market, such as this report on the increase in housing prices:

Home prices rose in nearly all major U.S. cities in April from March, further evidence that the housing market is slowly improving even while the job market slumps.

The Standard & Poor’s/Case-Shiller home price index shows increases in 19 of the 20 cities tracked. That’s the second straight month that prices have risen in a majority of U.S. cities.

And a measure of national prices rose 1.3 per cent in April from March, the first increase in seven months.

San Francisco, Washington and Phoenix posted the biggest increases. Prices fell 3.6 per cent in Detroit, the only city to record a drop.

The month-to-month prices aren’t adjusted for seasonal factors. Still, prices in half of the cities are up over the past 12 months.

Then there was this news in Bloomberg about the increase in demand for new homes:

Demand for new U.S. homes rose more than forecast in May as mortgage rates dropped, bolstering the residential real-estate market while other parts of the world’s largest economy cool.

Purchases climbed to a 369,000 annual rate, the most since April 2010 and up 7.6 percent from the prior month, the Commerce Department reported today in Washington. The median estimate in a Bloomberg News survey of 67 economists was 347,000. The number of houses on the market held near a record low.

The problem with this rise in housing prices and an increase in new home sales is that its a poor indicator of the real “health” of the housing market. Even Yale Prof. Robert Shiller, co-creator of the quoted Case-Shiller house price index, takes a cautious view of these optimistic predictions of a housing recovery:

MUCH hope has been pinned on the recovery in home prices that began about a year ago. A long-lasting housing recovery might provide a balm to households, mortgage lenders and the entire United States economy. But will the recovery be sustained? [..]

The most obvious reason for hope is that, unlike stock prices, home prices tend to show a great deal of momentum. Correcting for seasonal effects, home prices as measured by the S.&P./Case-Shiller 10-City Home Price Index increased each month from June 1995 to April 2006, then decreased almost every month to May 2009. Since then, they have risen through January, the latest month for which data is available.

So, because home prices have been climbing of late, isn’t it plausible that they’ll keep doing so?

If only it were that simple.

Home price booms and busts do end, sometimes quite suddenly, as was the case for the boom of 1995 to 2006 and the bust of 2006 to 2009. Today, we need to worry about strong headwinds, as the government begins to withdraw its support of a still-troubled lending industry and as foreclosures are dumping millions of homes onto the market.

Michael Olenick explains at naked capitalism:

Yale Prof. Robert Shiller, co-creator of the well-known Case-Shiller house price index, takes a more sober approach. Shiller argues in the New York Times until meaningful principal reductions are put in place that house prices are hosed. Pricing may bump up on artificial scarcity caused by the relatively low number of foreclosures after the robo-signing scandal, but in the long run underwater borrowers are likely to drown. Further, because of sky-high loss severities in foreclosures – my own data shows it is not at all uncommon for investors to lose the entire face value of a mortgage in a foreclosure – principal reductions make good business sense.

Shiller embraces an idea being floated about lately; having municipalities use eminent domain to “take” mortgages at fair market value. Databases like the one I’ve been compiling clearly show the loss severity of similar mortgages in similar ZIP codes, allowing municipalities to ascertain fair market value of the mortgages, as opposed to the houses. In bubble-states, where negative equity issues are most pronounced, fair market value of most mortgage would be no more than 20-percent of the face value of the first mortgages – and oftentimes far less; no more than a few cents on the dollar – while second liens would be worthless.

Assuming this approach is only used with the consent of the homeowner, I’d suspect that one last call the servicer before implementation would magically result in an almost immediate modification: no lost paperwork, no transfers to the offshore call center, no capitalized interest.

That’s too rational for anyone to heed.

Cross posted from The Stars Hollow Gazette

In his dissenting opinion on the Arizona v. United States, Supreme Court Justice Antonin Scalia went on a politically motivated rant that was directed at President Obama’s directive that would allow 800,000 undocumented immigrants who are under 30 came here as children to legally remain in the US. Not only was Scalia’s partisan political rant an embarrassment for the Court, it was factually wrong and racist.

First the facts that Scalia misrepresented and skewed. The Justice made this statement (pdf):

After this case was argued and while it was under consideration, the Secretary of Homeland Security announced a program exempting from immigration enforcement some 1.4 million illegal immigrants under the age of 30. If an individual unlawfully present in the United States

   “• came to the United States under the age of sixteen;

   “• has continuously resided in the United States for at least five years . . . ,

   “• is currently in school, has graduated from high school, has obtained a general education develop­ment certificate, or is an honorably discharged veteran . . . ,

   “• has not been convicted of a [serious crime]; and

   “• is not above the age of thirty,” . . . .

   The husbanding of scarce enforcement resources can hardly be the justification for this, since the considerable administrative cost of conduct­ing as many as 1.4 million background checks, and ruling on the biennial requests for dispensation that the nonen­forcement program envisions, will necessarily be deducted from immigration enforcement.

Part of the President’s reasoning for this order is the fact that congress has failed to provide the the $285 billion cost of deporting every illegal immigrant currently in the US and decided to use the limited resources available by focusing on undocumented immigrants who commit serious offenses and shifting resources away from college students and veterans. Scalia’s math is a bit off by some 600,000 more immigrants than is estimated to be affected by the President’s new policy.

Now to the really egregious racist spew that relied on racist Post Civil War laws that prohibited freed slaves from moving into Southern States:

Notwithstanding “[t]he myth of an era of unrestricted immigration” in the first 100 years of the Republic, the States enacted numerous laws restricting the immigration of certain classes of aliens, including convicted crimi­nals, indigents, persons with contagious diseases, and (in Southern States) freed blacks. State laws not only provided for the removal of unwanted immigrants but also imposed penalties on unlawfully present aliens and those who aided their immigration

This is comes on the heels of Scalia’s defense of tortute, his dismissal of the execution of innocent people at the hands of the states and his homophobia and his inability to distinguish legal arguments from political talking points

Scalia doesn’t seem to care that in his dotage he is sounding increasingly unhinged and more and more like a right wing talk radio host. Even Chief Justice Roberts should be embarrassed by this racist bile. If Scalia can’t control himself, he should be removed from the Court, if he doesn’t have the good sense to remove himself into retirement.  

Cross posted from The Stars Hollow Gazette

The latest session of the US Supreme Court is coming to a close with several decisions handed down since last Thursday, that peaked today with several rulings handed down. The “grand finale” will be this Thursday when the court announces its decision on the constitutionality of the Affordable Care Act. The media has been focused mostly on today’s ruling that gutted three quarters of Arizona’s controversial immigration law, S.B. 1070. The overturn of a 100-year-old Montana state law that banned corporations in that state from spending any of their corporate cash to support or oppose a candidate or a political party and the ruling that struck out any requirement that life without parole be the mandatory penalty for murder by a minor got second and third billing.

What the media chose to ignore was last Thursday’s 5 -4 decision in Knox v. Service Employees International Union (SEIU) that dealt a blow against public sector labor unions and in favor of employees who are represented by a union but are not members:

The case has three holdings: (1) When a public-sector union imposes a special assessment or dues increase, the union must provide a fresh Hudson notice (the Court’s vote on this issue was seven to two); (2) the union cannot require nonmembers to pay the increased amount unless they opt in by affirmatively consenting (vote of five to four); and (3) the case was not rendered moot by the union’s post-certiorari offer of a full refund (unanimous).

So what you say? Why is this an important ruling? It’s important because it requires Unions to do something that corporations aren’t. It requires unions to get permission from their non-members, who pay fees so they are covered by SEIU-negotiated contracts, before that money can be used for political spending. Instead of the traditional “opt-out”, the now have to “opt-in.” Corporations are not required to get share holders permission to spend millions on a political campaign. This could significantly impact on labor’s ability to fight back against corporations in the political arena. It restricts the union’s First Amendment rights to spend unlimited amounts under the 2010 Citizens United ruling:

“The court’s opinion makes clear its displeasure with 60 years of precedent on the dues issue, which have placed the burden on employees who object (to political spending) to opt out,” said William Gould, who from 1994 to 1998 chaired the National Labor Relations Board, the federal agency that governs labor relations in the private sector. “This decision is an invitation to litigate this issue.”

Although the Knox case involved special assessments on non-union members, Gould said, the Supreme Court’s reasoning suggests that it could be applied to all union dues that fund political spending paid by non-members. The next time that a union goes through the standard process of notifying non-members they have the ability to opt out, the union may well be met with a legal challenge, warned Gould. “(This decision) indicates that if these five (justices) are there when these cases come back to the Court, that the Court will decide these cases adversely to unions,” he said.

That thought has the National Right to Work Legal Defense Foundation, which represented the plaintiffs in the case, and similar groups celebrating — and labor advocates fearing the worst.

Patrick Semmens, vice president of the foundation, said via email that while some justices have used similar language in the past, the Knox decision confirms that now a majority believe “compulsory unionism” is a violation of First Amendment rights.

SEIU Secretary-Treasurer Eliseo Medina pointed out that while this complicates matters for unions it is “doable”. But he also noted that this decision was one sided in that “There is nothing in this [Knox] decision that even speaks to the question of shareholders, or corporations having to tell shareholders about any of the contributions they make, [..] “The language, to me, signals what has been the rightward drift of the Supreme Court … Now they’ve come up with a decision to make it more difficult for workers to be able to effectively participate in the [political] process.”

MSNBC host Rachel Maddow and her guest, legal correspondent and senior editor for Slate Dahlia Litwick discussed all of these rulings with emphasis on the Knox ruling.

As was expressed in it opinion on June 23, the New York Times rightly noted:

The conservative majority strode into the center of the bitter debate about right-to-work laws preventing unions in 23 states from requiring nonmembers to pay any union expenses, including those supporting collective bargaining that benefits nonmembers. It used this narrow case to insert itself into that political controversy when there was no reason to do so.

Up host Chris Hayes shares what we now know that we didn’t last week, including news that Rhode Island’s governor signed the state’s first increase in the minimum wage since before the recession. Guests Joy Willaims, co-host of This Week in Blackness; Ross Douthat, columnist, The New York Times; Jose Antonio Vargas, journalist and author; and Michael Ian Black, comedian share what they have learned this week.

Cross posted from The Stars Hollow Gazette

You knitting folks will be interested in this. My daughter, who is an avid knitter and belongs to the group in question, brought it to my attention

Knitters Outraged After U.S. Olympic Committee Squashes Knitting Olympics-and Disses Knitters

Knitters Outraged After U.S. Olympic Committee Squashes Knitting Olympics-and Disses Knitters

by Adrian Chen    

If you mess with the Olympics trademark, a cloud of legal hurt will descend on you faster than Tyson Gay in the Men’s 100 meters. Case in point: The U.S. Olympic Committee has sent a cease and desist letter to a knitting-based social network for hosting a knitting “olympics.” Now, knitters are in revolt.

2012 was to be the third year that the knitting social network Ravelry-yes, this exists and is surprisingly popular-hosted a “Ravelympics,” a knitting competition for users that includes events like an “afghan marathon,” and “scarf hockey.” Knitters were supposed to compete in their events while watching the actual Games on TV.

But that was before the U.S. Olympics Committee got wind of it and sent Ravelry a cease & desist, for making a mockery of the Games with their needlework. Here’s a passage from the letter, sent by the USOC’s general counsel and posted by Ravelry founder Casey Forbes to his blog (Ravelry account required):

   The athletes of Team USA have usually spent the better part of their entire lives training for the opportunity to compete at the Olympic Games and represent their country in a sport that means everything to them.  For many, the Olympics represent the pinnacle of their sporting career.  Over more than a century, the Olympic Games have brought athletes around the world together to compete at the Olympic Games and represent their country in a sport that means everything to them.

   […]

  We believe using the name “Ravelympics” for a competition that involves an afghan marathon, scarf hockey and sweater triathlon, among others, tends to denigrate the true nature of the Olympic Games.  In a sense, it is disrespectful to our country’s finest athletes and fails to recognize or appreciate their hard work.

She also sent this snark tinged response from “jen” at Magpie Knitter

How many Olympic athletes have you insulted?

Today, I learned that I have insulted the entire US Olympic team. In fact, not only have I done this once, I have done it twice – first in 2008 and again in 2010. I feel it is only right that I publicly admit to my shameful actions and share them here with you. The pictures below are graphic and may be upsetting to some, so please only look if you have a strong stomach. May not be safe for work.

Let me steel myself first…ok. Here it is: the evidence of my shameful lack of respect for the Olympic games and athletes everywhere.

Ravelympics Wristers

[..]

So again – my deepest and most humble and sincere apology. It is terribly unfortunate, of course, that the US Olympic Committee has managed to suck away a lot of the anticipation I had for the 2012 Olympics, but I accept that the error was mine in the first place. Yes, the Ravelympics had me watching the Olympics for the first time since I was a young child, but two wrongs – knitting and the Ravelympics – don’t make a right. The poor US athletes could probably sense that I was knitting while I watched and cheered, and who knows how many medals that knowledge may have cost them? Or dollars, since any time I spent knitting was time I wasn’t spending with one of the many corporate sponsors (whom we all know should have priority)? Now that I have been set straight, I am relieved to see that as many references to knitting and other fiber crafts as possible are being squashed to protect the purity of the Games.

It’s a shame about that red, white and blue cabled sweater I planned to design and knit during the Ravelympics in honor of our athletes, but at least now I won’t be disrespecting anyone with it.

If you think that’s bad, try the Londinium 2012 ( I use that term because it’s not copyrighted, yet, and I wouldn’t want to get in trouble here)

2012 Olympics – be careful what you say

Under the London Olympic Games and Paralympic Games Act 2006 it will be virtually impossible to associate your firm or its activities with that of the Olympics unless you are one of the very few official partner/sponsors. Even mention of the word ‘Olympics’ could see practitioners in breach of the Act.

[..]

The use of specific ‘Listed Expressions’ which are quantified as follows: any two of the words in list A below; or, any word in list A with one or more words in list B:

List A

Games

Two Thousand and Twelve

2012

Twenty-Twelve

List B

London

Medals

Sponsors

Summer

Gold

Silver

Bronze

I think these Olympic Committees are getting carried away with this and alienating supporters.

Cross posted from The Stars Hollow Gazette

Why is the New York Times surprised? I’m not.

CAIRO – Egyptian election officials said Wednesday that they were postponing the announcement of a winner in last week’s presidential runoff, saying they needed more time to evaluate charges of electoral abuse that could affect who becomes the country’s next leader.

The commission had been expected to confirm a winner on Thursday and, based on a public vote count confirmed in official news media, to have named Mohamed Morsi, of the Muslim Brotherhood.

The surprise delay intensified a power struggle between the Muslim Brotherhood and Egypt’s military rulers. It came just days after the generals who took over upon the ouster of Hosni Mubarak reimposed martial law, shut down the Brotherhood-led Parliament, issued an interim charter slashing the new president’s power and took significant control over the writing of a new constitution.

Amid allegations of fraud from both sides, both candidates have declared themselves winners, although, the unofficial count show that Morsi is the clear victor by a million vote margin. The presidential commission, which has the final say, is investigating the allegations while rumors abound that they will invalidate enough of Morsi’s votes to make Safiq the winner. On of the allegations being investigated is that the Muslim Brotherhood gained access to a government printing office and pre-marked at least one million ballots for Morsi.

This is the view of the situation from the Muslim Brotherhood on the political and economic impacts for Egypt as reported by Evan Hill via Al Jazeera:

Jihad el-Haddad, an aide to Khairat el-Shater – the movement’s first choice for president and a man seen as its de facto leader – said the Brotherhood is “done negotiating”. [..]

The Brotherhood is now ready to push the military to the brink, he said.

Its leaders are well aware that the bungled transition has cost the country several billion dollars in lost investment and aid, much of it tied to having a democratically elected government, and even more in foreign reserves spent to keep the Egyptian pound afloat.

Further unrest would likely cause a currency devaluation, pushing up the prices of food and household goods and raising the spectre of a “hunger revolution,” Haddad said.

Meanwhile, alternative premises have been found where the parliament can meet on Tuesday for its regular session, he claimed, in defiance of the military council, which has ordered the armed guards surrounding the parliament building to deny entry to MPs. [..]

Both sides know the economic and human cost of a return to the mass protests and street clashes that have marked the past 16 months, and their ongoing negotiations indicate both are probably more malleable than they make themselves appear.

Washington has responded to this crisis with some concern:

Secretary of State Hillary Rodham Clinton said the US expects the military to “support the democratic transition, to recede by turning over authority”.

“The military has to assume an appropriate role, which is not to try to interfere with, dominate or subvert the constitutional authority,” she said.

Privately, US officials expressed concern that a Shafik victory could have dangerous fallout, with protests and ensuing instability that could lead the military to take even stronger measures.

The big problem is that the allies of the military, Mubarak-era officials and secular opponents of Islamists also hold sway in the judiciary, the prosecutor’s office and the election commission.

Even if the military turns over control to a civilian government by the end of June, it will still retain unprecedented powers and that is a huge problem.

Cross posted from The Stars Hollow Gazette

The Greeks choice of staying with the pain of austerity measures may have helped divert a crisis for the Euro Zone, but not for long. There is still Spain.

Spain bailout fears mount

Fears of a full-scale bailout for Spain have mounted as its borrowing costs spiked to danger levels on concern over the nation’s stricken banks and fast-rising debt. [..]

Tapping the markets for the first time since the Greek vote on Sunday, Spain raised 3.04 billion euros, beating its 2.0-3.0 billion euro target in an auction of 12- and 18-month notes.

But it had to pay exorbitant rates to lure investors – 5.074 per cent for 12-month debt and 5.107 per cent for 18-month debt.

The yield on Spanish benchmark 10-year government bonds shattered the 7.0 per cent barrier on Monday for the first time since the creation of the euro in 1999, pushing above 7.2 per cent.

On Tuesday, the yield on 10-year bonds was at 7.003 per cent. [..]

Spanish borrowing costs at ominous levels

Spain, on the edge of losing debt-market access, paid around 200 basis points more in interest rates Tuesday than a month ago to lure investors to its Treasury bill sale, an ominous sign ahead of a critical government bond auction Thursday.

The latest surge in the country’s borrowing costs comes a day after fresh central-bank data showed Spanish lenders were sitting on the highest level of bad loans in 18 years, raising fresh worries over the battered sector’s capital needs.

The Fat Lady isn’t singing yet.

Just an interesting aside about interest rates, David Dayen points out this exchange from today’s House hearings with none other than the Obama administration’s favorite banker, Jaime Dimon:

But the two stars of the show thus far were Democratic Reps. Gary Ackerman and Brad Sherman. Ackerman asked point-blank if there’s any difference between gambling and investing. Dimon replied that with gambling, the house usually won, to which Ackerman quipped “That has been my experience in investing.” But he got at the central point, that hedging, which entails making a bet that would counteract any other actions in the markets, really bears reveals no difference from gambling. He emphasized that “with hedging, if you’re right, only you win, and if you’re wrong, we all lose.” Precisely. There’s no productive business being done with hedging.

Dimon replied to this by saying that they do a lot of other productive business with the rest of their $2 trillion in assets, so the gentleman from New York should kindly shut his mouth (that’s a paraphrase). And Brad Sherman followed up on that very well. He first said that hundreds if not thousands of small businesses need loans, and instead of accommodating them, “you took $350 billion to London.” Sherman added that JPMorgan holds a $14 billion subsidy through their implicit Too Big to Fail guarantee. This elicited an amusing moment, as Dimon said “We borrow in the marketplace, with the smartest people in the world, with 200 basis points over Treasury.” Sherman replied that “after you lost so much money in London, I would be surprised if people lent you money for less than that.”

Well.

Cross posted from The Stars Hollow Gazette

Other than the names and faces of the actors, not much is different in either Greece or Egypt after much analyzed and anticipated elections this weekend. In Greece, the center right is still faced with the dilemma of forming and holding together a coalition government to deal with the economic crisis that threatens to take down the Eurozone. While is Egypt, despite the historic election of an Islamic president, the military still maintains a tight control and all the power.

Greek elections: Antonis Samaras faces tough task to forge unity

The fault lines are so deep that even if a government is formed, many believe it will be a miracle if it survives for long

[..]The ambitious politician faces the Herculean labour of forging a government of “national salvation” at a time of unprecedented crisis. Not since the collapse of military rule has the country come so close to resembling a failed state. Following almost three months of political paralysis – before and after an inconclusive poll in May – Greece’s public finances are in tatters, its public administration is in disarray and its austerity-weary people are beaten down. It is now for Samaras to pick up the pieces. [..]

Late on Monday Samaras announced he had agreed with the head of Pasok, Evangelos Venizelos, to build a coalition, with negotiations expected to be concluded by Tuesday. Once bitter political rivals, the socialists, who came in with 12.3% of the vote, say the creation of a government of “national co-responsibility” is vital if Greece is to be steered through the crisis.

Combined, the two parties would control a comfortable majority of 162 seats in the Greek parliament. [..]

But fault lines in Greek society are so deep that even if a government is formed many believe it will be a miracle if it survives for long. To secure further rescue loans Athens has agreed to pass an extra €12bn in budget cuts, measures seen as vital if its economy is to reclaim competitiveness. And on Monday creditors led by Germany appeared in little mood to relent.The fiscal adjustment programme might be relaxed but “only marginally,” several officials said. “Greek society simply cannot endure any more measures,” insisted (New Democracy MP Kyriakos) Mitsotakis. “It’s not a question of what party is in office, it is a fact.”

German Chancellor Andrea Merkel, emboldened by the Greek center right narrow victory, has continued her hard line stand on enforcing the Greek deal

“The Greek government will and must naturally follow through on the commitments that were made,” Ms. Merkel told reporters at the Group of 20 meeting in Los Cabos, Mexico, disappointing those in Athens who hoped for a signal of new flexibility toward Greece in the wake of the vote. “There can be no loosening of the reform steps.”

At least Greece has a Parliament. Egypt on the other hand is once again on the verge of revolution as the Muslim Brotherhood threatens to take to the streets once again in protest over the military usurpation of power:

The ruling generals sought for the first time to sell the public on the decision to dissolve the Brotherhood-led Parliament on the eve of the vote. In a nearly two-hour news conference that was edited before it was televised, two members of the military council insisted that they regretted dissolving Parliament, but that they had been forced by a court ruling from judges appointed by former President Hosni Mubarak.

And although they have now issued an interim Constitution keeping legislative and much of the executive power for themselves – and even said later Monday that they would appoint a general to run the new president’s staff – the generals promised to hold a “grand celebration” when they turned over power as promised at the end of the month. [..]

In their news conference, the generals acknowledged they would have a monopoly on all lawmaking powers as well as control of the national budget. But they said that the new president – they did not name Mr. Morsi – would retain a veto over any new laws and could name the prime minister as well as other cabinet officials.

The generals have not backed away from the initial charter that removed the military and the defense minister from presidential authority and oversight and defended the imposition of martial, arresting and detaining civilians for trials in military courts. They also took it upon themselves to appoint the new president’s chief of staff and revived a special national defense council packed with loyal military officers, charged with overseeing matters of national security. This is not going over very well with the Egyptian people.

The bright spot in all of these travails, the French who gave newly elected president François Hollande a majority in Parliament on Sunday, which is likely only to embolden his drive for more growth-oriented spending and a retreat from German-style austerity. But if everything you hear about Greece and Egypt sound familiar, it is.

Cross posted from The Stars Hollow Gazette

Here comes Simpson-Bowles to spare the bloated Pentagon budget and avoid letting the Bush/Obama Tax Cuts expire:

U.S. Treasury Secretary Timothy Geithner recently suggested the Simpson-Bowles deficit reduction framework is the way forward in terms of balancing the federal budget. [..]

“We need to take advantage of the incentive created by the sequester and these expiring tax cuts to force this town to confront and take on the things that divide us now in these long-term fiscal reforms so we can go ahead and govern,” he said. “This is a place where people spend a lot of time worrying whether Washington can work again and for Washington to say, ‘We’re going to defer,’ I don’t see how that would be helpful to confidence.” [..]

David Dayen at FDL News Desk adds his take on Geithner’s appearance before the Council on Foreign Relation:

The lame duck session has so many fiscal issues expiring at the same time that many view it as an opportunity to put together the long-sought “grand bargain” on deficit reduction. Erskine Bowles and Alan Simpson have recently come out of their shells and resumed a high-profile media tour in an effort to get their framework into the discussion for the lame duck session. The Bowles-Simpson plan does include tax increases of hundreds of billions above the Bush tax cut rates, albeit lower than what would occur if the Bush tax cuts were allowed to completely expire.

Because of this, Democrats like Nancy Pelosi have embraced Bowles-Simpson to tease Republicans for their opposition to higher tax rates. But that also puts Democrats on the hook for embracing cuts to the social safety net, including Medicare and Social Security. And on Wednesday, Geithner said that Bowles-Simpson is “the only path to resolution politically [and] growing essentially economically, and I think that’s where it’s going to end up.” He didn’t make the caveats on Social Security or other entitlements.

David also noted that Sen. Max Baucus (D-MT), chairperson of the tax writing Senate Finance Committee, would hold hearing in the next few weeks on Bowles-Simpson and Domenici-Rivlin, which combine revenue-raising tax reforms with restraint on entitlement spending. Baucus told The Hill:

“My view is everything’s on the table,” Baucus said. “That’s a psychology which I think is very important to keep people talking, keep people working.”

In his comprehensive article on Geithner’s alliance with JP Morgan CEO Jamie Dimon and Cat Food Commission co-chair former Sen. Alan Simpson (R-UT), Richard (RJ) Eskow had this to say about the coming of Simpson-Bowles:

Geithner said Simpson-Bowles was the perfect recipe: “tax reforms that raise a modest amount of revenue tied to spending savings across the government that’s still preserving some room to invest in things that matter to how we grow moving forward.” He added, “There’s no plausible way to get there economically or politically without that kind of balanced framework again that marries tax reform with broader spending reforms,”

Geithner is joining leading Democrats on the Hill like Sen. Max Baucus and Rep. Nancy Pelosi in backing the plan. And take careful note of the fact that they’re all using the phrase “tax reform” instead of “tax increases.” They don’t just plan to pay for the wealth and misdeeds of the Dimon crowd with your Social Security and Medicare benefits. They also plan to raise your taxes, not theirs. The Simpson Bowles plan would actually lower the top tax rate for people like Jamie Dimon, while “tax reform” would tax away tax deductions for the middle class’s health insurance, mortgages, and other expenses.

All our elected officials are completely out of touch with what Americans want and need. Yes, indeed, something wicked this way comes.

Adapted  from The Stars Hollow Gazette

Cross posted from The Stars Hollow Gazette

The Greeks have decided to stay the course with the center right and have given a victory to the New Democracy Party headed by Antonis Samaras:

New Democracy narrowly beat Syriza, an alliance of radical leftists, winning 29.53% of the vote against 27.12% for the coalition led by Alexis Tsipras. Samaras called the result a victory for Europe.

“The Greek people today voted for the European course of Greece and that we remain in the euro,” Samaras declared in a victory speech. “This is an important moment for Greece and the rest of Europe,” he insisted, saying that Athens would honour the commitments it made in exchange for rescue loans from the EU and IMF. [..]

Across Greece’s divisive political spectrum there was speculation that Samaras would be able to form a viable coalition with the socialist Pasok and the small Democratic left – parties that have also agreed to accept the onerous terms of bailout funds even if they, too, want to renegotiate the package. [..]

Pro-bailout parties now constitute 50% of the electorate. But with the other half also vehemently opposed to the austerity policies dictated by foreign lenders, Greece’s rollercoaster ride is unlikely to end soon. It is now well into its fifth year of recession, with unemployment at a record 22% and worsening levels of poverty leaving thousands of Greeks destitute and homeless. Resistance to further austerity measures is only going to grow.

In France, exit polls indicate that Socialist Party of François Hollande has won a solid majority in both houses of the Parliament, eliminating the lead for a coalition government. The conservative National Front has won four seats. The party leader, Marine Le Pen lost her bid for a seat but her 22 year old niece, Marion Marechal-Le Pen is believed to have been elected in the southern region of Carpentras. Former presidential candidate and M. Hollande’s ex-partner, Ségolène Royal has lost her bid for a seat in the National Assembly.

The Socialists and other left-wing parties came out on top in last Sunday’s first round of the vote, winning 46 per cent to 34 per cent for (former president Nicholas) Sarkozy’s UMP party and its allies. [..]

The polls showed France’s Socialists winning between 287 and 330 seats in Sunday’s runoff vote – almost certainly enough to secure a majority in the 577-seat Assembly. [..]

The Greens, who are close allies of the Socialists and already in government, were expected to win up to 20 seats.

The vote was also a key test for Marine Le Pen’s anti-immigrant and anti-EU National Front (FN), which took 13.6 per cent in the first round; far above the four per cent it won in the last parliamentary election in 2007.

There are no results yet for Egypt. But there is news and it is not good for the Egyptian people no matter who wins. This is the report by Leila Fadel and Ernesto Londoño in the Washington Post:

CAIRO – Shortly after polls in Egypt’s landmark presidential vote closed Sunday night, Egypt’s military leaders issued a constitutional decree that gave the armed forces vast powers and appeared to give the presidency a subservient role.

The declaration, published in the official state gazette, establishes that the president will have no control over the military’s budget or leadership and will not be authorized to declare war without the consent of the Supreme Council of the Armed Forces.

The document said the military would soon appoint a body to draft a new constitution, which would be put to a public referendum within three months. Once a new charter is in place, an election will be held to chose a parliament that will replace the Islamist-dominated one dissolved Thursday by the country’s top court.

Currently, exit polls show Muslim Brotherhood candidate Mohamed Morsi, ahead of former prime minister Ahmed Shafiq in the presidential runoff vote.