George Will on Sunday accused Barack Obama of being an expert at selling snake oil.
As the Roundtable segment of ABC's "This Week" began, host Jake Tapper asked Will if the President's claim Republicans "are peddling that same snake oil that they've been peddling now for years" will resonate with voters this November.
Will marvelously responded, "No, because he is an expert on snake oil."
"This is the man who said, if we pass the $767 billion stimulus bill, which it turns out costs $862 billion, a $95 million oops, we would have unemployment at 8 percent and no higher, and it went higher," continued Will.
"This is the man who last week was out saying, 'I'm going to give $2 billion, about $2 billion, to two companies to create about 1,600 jobs.' That's $1.5 million per job. That is snake oil" (video follows with partial transcript and commentary:
Apparently, Fannie and Freddie are the new Batman and Robin.
At least they seemed more like heroes than villains in a July 6 ABC News story about the troubled housing market. Reporter Rich Blake gave the government sponsored enterprises (GSEs) Fannie Mae and Freddie Mac credit for "propping up" the flailing housing sector:
"As perplexing and disturbing as this economic brainteaser may seem, the housing sector would be in even worse shape if not for those twin government sponsored enterprises, Fannie Mae and Freddie Mac, both in government conservatorship and bleeding assets," Blake wrote.
Real Clear Politics currently has a video highlighting statements by Democratic Congressman James Clyburn Jr. of South Carolina. It teases the video with a question asked by Candy Crowley of CNN.
Once one sees the entire sequence, it's clear that Clyburn really answered Crowley's question before she even asked it.
Here's the full transcript of the vid, which begins after Indiana Republican Congressman Mike Pence had apparently made some points about how steps taken by the Obama administration to revive the economy to the point where it generates meaningful job growth aren't working. Clyburn's answer to when his party will stop blaming Bush is in bold:
Clyburn: Uh, Congressman Spence, uh, Pence keeps talkin' about, uh, the fact that, uh, we are, uh, failing in our approach. We all know exactly what this president inherited, and we will stop talkin' about that inheritance, uh, when uh Congressman uh Pence and others stop talkin' about takin' us back uh to those failed policies.
The man who predicted the bursting of the housing bubble as well as 2008's economic collapse says that what happened in the markets around the world today is just the next stage in the financial crisis.
"The first stage was this massive re-leveraging of the private sector that led to the financial crisis and which has responded now with a massive re-leveraging of public sectors with budget deficits of the order of 10 percent," Nouriel Roubini aka Dr. Doom told CNBC's Maria Bartiromo.
"So I think that the markets are realizing that we have socialized a lot of the private losses with unsustainable fiscal deficits."
He believes the bond markets in parts of Europe seriously began realizing the depth of the problem today cautioning, "And soon enough they're going to wake up in the United States" (video follows with partial transcript and commentary):
As congressional Democrats press on with their attempts to get financial legislation reform passed, a key component has been lacking from the debate: how to handle the government-sponsored enterprises Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE).
Cramer told MSNBC's April 26 "Morning Joe" that Goldman really has no defense if, as the government alleges, Goldman misled investors when it established a mortgage-backed security in 2007 for a hedge fund client looking to bet against the housing market. And that's in addition to facing heat from shareholders for not revealing that it received a Wells Notice from the SEC.
The Pentagon rescinded the invitation of evangelist Franklin Graham to speak at its May 6 National Day of Prayer event because of complaints about his previous comments about Islam.
The Military Religious Freedom Foundation expressed its concern over Graham's involvement with the event in an April 19 letter sent to Secretary of Defense Robert Gates. MRFF's complaint about Graham, the son of Rev. Billy Graham, focused on remarks he made after 9/11 in which he called Islam "wicked" and "evil" and his lack of apology for those words.
Col. Tom Collins, an Army spokesman, told ABC News on April 22, "This Army honors all faiths and tries to inculcate our soldiers and work force with an appreciation of all faiths and his past comments just were not appropriate for this venue."
Everyone is still looking for a scapegoat for the financial crisis that precipitated the current economic malaise. And one of the popular targets has been former Federal Reserve Chairman Alan Greenspan.
Greenspan recently testified on Capitol Hill and was pressed about how he may have contributed to the financial crisis. According to Suze Orman, host of CNBC's "The Suze Orman Show," some of the blame should go to Greenspan for a 2004 speech he made to the Credit Union National Association.
Greenspan had said some might have "saved tens of thousands of dollars had they held adjustable-rate mortgages rather than fixed-rate mortgages during the past decade," but he did preface it by saying that wouldn't have been the case if rates adjusted upwards as they did. But Orman, appearing on MSNBC's April 8 "Morning Joe" contended he shouldn't have commented on those mortgages at all.
Back on Christmas Eve of 2009, Obama's Treasury Dept. said it would lift the limits on what the federal government could provide in "emergency aid" to Fannie Mae and Freddie Mac - without seeking Congressional permission.
Very few reporters noticed, except for The Washington Post's Zachary Goldfarb who reported the story on Christmas Day and CNBC CME Group reporter and tea party inspiration Rick Santelli, who later pleaded for the public to take notice. With that occurrence in mind, Santelli scoffed at Sen. Chris Dodd's, D-Conn., legislative proposal of financial system reform that did not include reforms on both Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE).
"You know, I can't believe, first of all - you said, may not be included. They are not going to be included," Santelli said on "Fast Money" March 12. "And I think to put a moniker of reform on something that doesn't include Freddie and Fannie is very disingenuous. And I think that to pass something - what I heard Mr. Dodd say, Sen. Dodd, was, you know, it's the 101st senator. In other words, you know, we'll pass anything we have to show that we're doing something, no matter if it's the right thing or not, you know, I'm not buying that again."
After the closing bell on Friday, just in time for everyone to stop paying close attention, mortgage behemoth and ward of the state Fannie Mae ("Fan") released its fourth-quarter and full-year financial results. Its press release (PDF) informs us that its $74.4 billion loss in 2009 (inclusive of dividends paid to the government) followed a $58.8 billion loss in 2008.
Oh, by the way, Fan also told us yesterday that it will need another $15.3 billion in cash by the end of March. That would bring the total of Uncle Sam's combined Fan-Fred cash infusions to $126 billion.
These outrageous results are made even more maddening by Zibel's kid-glove treatment of the problems at the two entities in paragraphs 8 through 10 of his report:
The adverb that begins with a "U" made yet another appearance yesterday in connection with an economic report. The related noun that begins with an "S" came along for the ride.
The news concerned sales of new homes. They fell "Unexpectedly" to their lowest level since 1963, when the U.S population was about 40% lower. The decline was a "Surprise" to economists, who had predicted an increase.
It continues to fascinate that the "Unexpected" news that came as a "Surprise" to economists during a large portion of the Bush 43 administration more often than not was to the upside, while the trail of "Unexpected Surprises" during the current administration is littered with downers.
Ahead of the news, the Associated Press appeared ready to play up what it thought would be good news, and then exiled its reports to remote corners when things didn't go as expected.
In a Thursday afternoon story on the small rise in the Case Schiller home price index, the AP's Adrian Sanz was talking of recovery, while inventing a new economic concept (bold is mine):
On Saturday, NB's Noel Sheppard reported on this statement made by Education Secretary Arne Duncan: "I think the best thing that happened to the education system in New Orleans was hurricane Katrina. That education system was a disaster. It took hurricane Katrina to wake up the community and say we have to do better."
CNN host T.J. Holmes read that quote aloud during a broadcast. "Of course I agree" with Duncan's statement, said one guest, CNN contributor Steve Perry. The host and correspondents went back and forth about how the hurricane may or may not have helped public schools, never once impugning Duncan's motives.
Contrast this media response with the response to former Republican Congressman from Louisiana Richard Baker's statement regarding Katrina: "We finally cleaned up public housing in New Orleans. We couldn't do it, but God did." It sparked outrage among the liberal media (h/t NRO's John Miller).
But according to "Fox News Sunday" host Chris Wallace, efforts to spin this in a positive way are futile. Wallace appeared on the Fox Business Network's Jan. 21 "Imus in the Morning" program to explain their efforts to alter the news coverage to a favorable tone in the wake of this news is not the proper course of action.
"I think it means a big deal and I have to laugh, you know, somebody was saying yesterday, there's some events that are just un-spinable," Wallace said. "They're just too big, too dramatic, too obvious - you can't spin them and yet the White House clearly is trying to spin this."
The Obama administration's Home Affordable Modification Program (known as "HAMP" to lenders and services, and MHA, or "Making Home Affordable" to the general public) is "failing."
I only learned this because I looked at the Associated Press's feeds on Christmas evening and saw this headline -- "No consequences for lying borrowers."
In an item time-stamped December 25, AP national business columnist Rachel Beck (note: not a reporter) used language that would ordinarily cause many in the press to characterize such a person as a hard-hearted meanie to describe the results of this core Obama initiative this far:
No consequences for lying borrowers
The government shouldn't reward liars. But that's the effect of changes to the Obama administration's failing program to help homeowners modify their mortgages.
On Thursday, the Treasury Department issued a press release, called "Update on Status of Support for Housing Programs." Its fourth paragraph reads as follows:
At the time the Federal Housing Finance Agency (FHFA) placed Fannie Mae and Freddie Mac into conservatorship in September 2008, Treasury established Preferred Stock Purchase Agreements (PSPAs) to ensure that each firm maintained a positive net worth. Treasury is now amending the PSPAs to allow the cap on Treasury's funding commitment under these agreements to increase as necessary to accommodate any cumulative reduction in net worth over the next three years. At the conclusion of the three year period, the remaining commitment will then be fully available to be drawn per the terms of the agreements.
Translation: No matter how badly things further deteriorate at these former government sponsored enterprises, both of which since last year in essence have become government-controlled enterprises, Uncle Sam (i.e., current and future generations of taxpayers) will cover their losses.
Here is how three different news outlets headlined this Treasury/Obama administration move:
If there's a Ground Zero for America's foreclosure mess outside of much of California and metro Las Vegas, it's probably Cleveland, the Northeast Ohio city known in most of the rest of the state as the Mistake on the Lake.
The Cleveland Plain Dealer's Mark Gillespie got out from behind his desk, committed some good old-fashioned journalism, and went looking for the mistakes that exacerbated the town's breathtaking home foreclosure rate. Lo and behold, he found that city government itself contributed mightily and extraordinarily negligently to the debacle. Go far enough into Gillespie's report, and you will also find an implicit admission that the Community Reinvestment Act (CRA) also played a pivotal role (bold is mine):
How Cleveland aggravated its foreclosure crisis
The city of Cleveland has aggravated its vexing foreclosure problems and has lost millions in tax dollars by helping people buy homes they could not afford, a Plain Dealer investigation has found.
In a Washington Post opinion piece published on December 6, longtime expansionary entitlement program apologists Peter Edelman and Barbara Ehrenreich ripped into the 1996 welfare reform law and its alleged effect on the poor during the struggling economy of the past two years.
In the course of their rant, Edelman and Ehrenreich told readers something that the rest of the press has largely ignored since Barack Obama took office in January: Homelessness is up, as in way, way up:
According to the National Law Center on Homelessness & Poverty (NLCHP), the number of homeless Americans is up by 61 percent since the recession began in December 2007.
In fact, a new report from a source normally favored by the press tells us that new "tent cities" have sprung up, and that others in existence a year ago have grown. Does anyone think these facts would remain so well-hidden if Bush 43 were still in office?
Interestingly, it seems that Edeleman and Ehrenreich appear to have serendipitously misinterpreted their information source.
The seemingly creepy fixation some MSNBC on-air personalities have with Minnesota Republican Rep. Michele Bachmann just continues to persist on the cable network.
The latest installment involves MSNBC's "Ed Show" host Ed Schultz relying on a left-wing publication, The Minnesota Independent, which found a high rate of foreclosures relative in Bachmann's district relative to the rest of the state of Minnesota. Schultz, on his Dec. 2 program, contended Bachmann was spending too much time as a conservative activist and not enough time focusing on the problems of her district. But it turns out the data might not be at all accurate.
"One last page in my playbook tonight," Schultz said. "It looks like Minnesota congresswoman and ‘Psycho Talk' regular Michele Bachmann needs to spend a little bit more time riling up the right-wing nut job partiers out there and focus on her own back yard."
It's a development that I wouldn't wish on anybody, but one that the City of New London, Connecticut largely brought upon itself by pursuing and winning the Kelo v. New London case at the Supreme Court in June 2005.
Some "win." In what Ed Morrissey at Hot Air calls "a fitting coda to a chapter of governmental abuse," pharmaceutical manufacturer Pfizer is leaving the global research and development headquarters it built in New London just eight years ago.
The significance of the move should resonate nationally, because, as the Washington Examiner explains, Pfizer's original decision to locate in New London was driven by the City's promises to eliminate a nearby neighborhood -- promises which led to the Kelo litigation once residents, including Susette Kelo (pictured above), pushed back:
To lure those jobs to New London a decade ago, the local government promised to demolish the older residential neighborhood adjacent to the land Pfizer was buying for next-to-nothing. Suzette Kelo fought the taking to the Supreme Court, and lost. Five justices found this redevelopment met the constitutional hurdle of "public use."
The New London Day elaborates, while petulantly managing to avoid any mention of what has clearly become the local four-letter word -- "Kelo" (bold is mine):
It isn't often that one can see two decades of history re-written in under ten minutes. But such was the occasion on this morning's episode of Morning Joe. Max Blumenthal, author of "Republican Gomorrah: Inside the Movement that Shattered the Party," spent his time on the show demonstrating the combined power of cognitive dissonance, wanton ignorance, and a willingness to re-write historical fact.
Let's take it in chronological order, shall we?
First, Blumenthal is asked to present the major thesis of his book:
No, that's not a made-up headline. The foreclosed and/or evicted homeowners that have played such a role in the current economic meltdown - are they irresponsible borrowers that lived beyond their means or are victims that got swindled? Michael Moore is clear on where he thinks they fall.
Moore matched up with Fox News and conservative talk radio host Sean Hannity on Hannity's Oct. 6 program and Hannity attempted to have Moore explain why he didn't think there was a personal responsibility angle to the home foreclosure crisis.
Here's how it unfolded (emphasis added):
HANNITY: If you put your name on the dotted line in a legal document, don't you bear responsibility? MOORE: These people have been deceived and they've been exploited. You know, this is like - this is like ... HANNITY: No responsibility at all for them? MOORE: No, this is like asking a woman how short was your skirt after she's been raped.
Has it really come to this? Is MSNBC so in the tank for the Democratic Party that it takes far-left documentary filmmaker Michael Moore to bring up malfeasance by a leading Democrat?
Moore appeared on MSNBC's Sept. 29 "Hardball" to promote his new film "Capitalism: A Love Story." With exception of "The Ed Show" fill-in host Lawrence O'Donnell noting the Senate Ethics Committee had cleared Sen. Chris Dodd, D-Conn., of wrongdoing and only reprimanded him verbally, over the last couple of months, MSNBC's prime time shows have ignored a deal Dodd got on a mortgage with Countrywide. That is, until Moore brought it up.
"Chris Dodd may have a problem after being in this movie, I think," Matthews said.
In a great NewsBusters post early this morning, Rusty Weiss wondered how much local media coverage there has been of ACORN's suspension of services, and focused on potential vote fraud in Albany and Troy, New York.
Here's a question local reporters looking for an angle should be asking, even in the somewhat unlikely event they can't find anything corrupt or criminal at the ACORN office in their town: How effective is the organization's outreach?
Based on what little I've learned, a more legitimate question might be, "Is ACORN's so-called outreach really just a facade to conceal other not well-known activities it really considers more important"?
The issue first occurred to me when I read a September 18 report by WCPO in Cincinnati (WCPO apparently stands for "We Constantly Promote Obama") about the office's decision to suspend services (bolds are mine):
If you haven't been under a rock the last few weeks, or relying on the mainstream media as your sole source of news, you are likely aware of some of the questionable circumstances surrounding the organization Association of Community Organizations for Reform Now (ACORN).
A pair of intrepid investigative reporters, James O'Keefe and Hannah Giles, with the help of Andrew Breitbart, made it possible for the public to be aware of these practices by ACORN. However, the embattled organization, in a retaliatory maneuver, has filed a suit against O'Keefe, Giles and Breitbart. Breitbart appeared on Fox News Channel's Sept. 24 "The O'Reilly Factor" and responded to the suit.
"So, all I can see is that this lawsuit is an attempt to stifle free speech and the First Amendment and an attempt to make sure that the American people don't see the rest of the tapes and there are more tapes," Breitbart said.
Last Wednesday, ACORN CEO Bertha Lewis promised that her organization would conduct a "total audit," and would name an independent auditor by Friday ("within 48 hours"). Later, it said it would do so yesterday.
The group finally acted today, in totally underwhelming fashion. We're not going to get a "total audit" after all. Instead, there's going to be an "internal investigation," and it will be conducted by former Massachusetts Attorney General Scott Harshbarger.
If this were a Republican group, or if the press were doing its job, this change in mission would be correctly labeled a watered-down cop-out. Instead, the Associated Press's Sharon Theimer played along with it and made no reference to ACORN's high-minded promises last week.
Early this morning (at NewsBusters; at BizzyBlog), I posted on the Associated Press's treatment of the firing of two employees at ACORN's Baltimore office. These employees were successfully stung by undercover filmmaker James O'Keefe, who posed as a pimp (one who said he has plans to use the money from his "enterprise" to run for Congress), and Hannah Giles, who posed as a prostitute.
In a pair of videos (full script here) released on Thursday, viewers saw the two helpful ACORN Baltimore employees tell O'Keefe and Giles, among many jaw-dropping things, that:
Giles should call herself a “freelance performing artist” for tax purposes.
That they should claim three of 13 underage girls the pair planned to bring in from El Salvador to work as prostitutes as dependents.
That the prostitute should also claim child tax credits for those declared as "dependents."
O'Keefe and Giles piled on Friday morning by releasing a second pair of videos showing that they had pulled off a similar sting at ACORN's DC office.
But if we're to believe the Associated Press's Hope Yen, Friday's out of the blue decision by the Census Bureau to sever its ties with ACORN in connection with the 2010 census had nothing or at most very little to do with what O'Keefe and Giles pulled off. Instead, Yen portrayed the decision as a cave-in to the minority party in Washington known as Republicans. Uh-huh.
Thursday night, the Associated Press reported on the Baltimore ACORN sting carried out by James O'Keefe of Andrew Breitbart's new BigGovernment.com web site. A paragraph near the end of the report is virtually a de facto commercial for the controversial group.
As to the sting itself, in case you missed it -- in two devastating videos originally posted here that you must see, O'Keefe and Hannah Giles posed as a pimp and prostitute who, as summarized in original Fox News coverage, told officials at ACORN's Baltimore office that they "wanted to secure housing where the woman could continue to maintain a prostitution business."
ACORN said Thursday that it has fired the two employees who are seen on tape telling O'Keefe and Giles the following, among a host of sickening howlers:
Nightline correspondent Vicki Mabrey profiled self-described "financial terrorist" Bruce Marks on Friday, painting his actions in a religious light as a "revival of spirits" and "hopes." Co-host Cynthia McFadden began the show by rhapsodizing, "The financial terrorist. He’s on the front lines of the foreclosure front using guerrilla tactics on a crusade to restore the American dream."
She continued, "And he's taking dead aim at the big banks. Is there anything he could do for you?" Mabrey did offer Neighborhood Assistance Corporation of America (NACA) CEO Marks a few tough questions, noting that his organization, which tries to help homeowners restructure their loans, also uses extreme tactics, such as protesting outside the homes and schools of the children of financial executives.
It's been nearly seven months since CNBC reporter Rick Santelli took a stand against the Obama administration, which inspired the tea party movement - and the White House hasn't forgotten.
White House Press Secretary Robert Gibbs was asked by CNBC Washington correspondent John Harwood why the administration decided to go after Santelli after his Feb. 19 call for a metaphorical revolt over President Barack Obama's economic policies.
"Truthfully, one primary reason," Gibbs said in comments aired on CNBC's Sept. 4 "Squawk on the Street." "And that was - I thought the argument that he was making was both disingenuous and not based on the facts. It was clear that Rick was very passionate about the issue. And look, we have differing opinions from both sides of the political aisle. It was clear to me that the argument that he was making wasn't based on him having actually read our plan."