Episode 28 – Stem Cell Politics

Glenn and Jeff dive right into the political minefield in Episode 28, revealing what’s really going on with the reversal of the Bush Stem Cell research ban, and the Congressional appropriations package. Jeff offers support for the budget bill, and they both call for more transparency in the process. Glenn offers a simple plan to get that transparency (maybe they’ll hire him to do it). They also discuss the role of journalism and podcasts, and why The Daily Show’s Jon Stewart might just be the best journalist in the business. In a bombshell, Jeff reveals which Senate Democrat is most vulnerable in 2010, how to beat that person, and that that person needs to do to win. PoliTalk: entertaining, informative and refreshingly honest.

Listen to the current installment of PoliTalk and get yourself informed, inspired, entertained and ready for the day… spread the word… tell two friends, and so on and so on…

You can get the PoliTalk Podcast from Podcast.com and iTunes.

Lie Detector To Be Used in Political Debate

Well, things are a changing! The Associated Press reported that two challengers for an Indiana congressional seat have agreed to strap on a lie detector and have at it during a debate. The article quotes Alan Johnson, dean of Vincennes University’s Jasper Campus as saying:

Our planning committee worked up the format and rules, and we are not inviting negotiations from the candidates.

Could you imagine this becoming standard operating procedure at a debate? This is very exciting. Imagine the size of the audience if we added a small electric shock every time the candidate lies. The advertising revenue for this kind of a televised debate could take a big chunk out of the national debt.

AIG Responds to PoliTalk on Executive Retreat Controversy

Today, AIG responded to us on the coverage of the recent expenditure of $440,000 on an executive retreat that we posted to the PoliTalk blog.

AIG states:

Earlier today, AIG announced an important policy change – one that we wanted to be sure you knew about.

A short time ago, our Chairman and CEO Ed Liddy said that he has ordered the immediate cancellation of all outside meetings, conferences, and recognition events across AIG, except those that are required by law or that are deemed absolutely critical to sustain our ongoing business needs.

Given AIG’s commitment to our customers, business partners, regulators, and American taxpayers, coupled with the new and very different challenges our company now faces, we take these responsibilities extremely seriously. Their trust is critical to our success. We recognize the need to be sensitive about all company expenditures.

As we move forward, we will continue to focus our efforts to pay back the $85 billion loan from the Federal Reserve Bank of New York as quickly as possible.

I applaud their acknowledgment of the need for serious policy changes in terms of how they are doing business. I can only wonder if these changes would have come about without the spotlight of public scrutiny.

Special Episode of PoliTalk – The Bailout Bill Insurance Program

“The financial rescue package contains a provision that permits troubled financial institutions to apply for insurance (federal guarantees) and could prevent an outlay of $700,000,000,000. Furthermore, it can cut interest rates substantially, keep troubled homeowners in their homes, and certainly end the credit crunch,” says Michael S. Zarin, President, Wellfleet Investments LLC.

In this special episode of PoliTalk, Glenn interviews Michael to better understand his perspective. Michael first came to us via one of our blog postings that he commented on.

If you listen to only one program about the financial crisis that the US and the World faces, listen to this!

Michael lays out the case for a provision in the new Bailout Law that will allow the US Government to get us out of the credit crisis without spending the $700 billion.

Listen to this podcast and spread the word… More people need to know about this!

You can get the PoliTalk Podcast from Podcast.com and iTunes.

Bailout Bill Signed Into Law

President Bush today signed the largest financial bailout bill in the history of the world. The financial bailout bill represents over $700 billion dollars that the US Treasury will have at its desposal to purchase bad debt from financial institutions with the goal of easing the ever tightening credit crunch that is currently spreading throught the world.

Time to Channel Lincoln: There Really is a Crisis

$1.2 trillion was taken out of people’s pocket’s yesterday — not Wall Street Titans, but nurses, union laborers, teachers, carpenters — anyone who has a retirement account or an IRA. You lost money. You got screwed by Congress’ sheepish inability to see past the next election. To make matters worse, read the following story about how rates are soaring and banks aren’t lending money. In addition, the financial cancer is spreading globally and banks are now starting to fail in Europe. Meanwhile, in order to stay afloat and protect their own balance sheets, banks are calling loans. Not just mortgage loans, but business loans. I know. I’m seeing it happen in my own family. In order to meet those loans, businesses are starting to lay off people. Again, not just Wall Street Titans, but regular folks like you and me.

Congress had the opportunity to do something that was necessary but unpopular. Real leadership involves leading people — explaining to us what we need to hear, not just what we want to hear. This is unpopular because we have a Congress that talks of bipartisanship but doesn’t practice it, and we have Congressmen who are more willing to save their own backside than take a risk and really explain this. In addition, we have a President who is so unpopular and whose policies led us into this mess in the first place (Nancy Pelosi was right, just not right to say what she did when she did) that he can’t even convince his own party to do the right thing.

This reminds me of another moment in time: the abolition of slavery. What if Lincoln thought it was just too hard, too politically risky to confront a crisis facing our nation? Where is the political will? Where is the outrage? Where are those who will stand up and lead us?  Where is the President? What if Lincoln gave a couple speeches in the rose garden and just kind of mailed the rest in? Why isn’t the President out there fighting for this — visiting the districts of the two thirds of Republicans who voted against him complaining of this. This is his legacy. The Dow is now lower than it was when he took office. This is primarily a failure of Republican philosophy and Republican deregulatory infatuation. So now that we’re in this mess, they have a responsibility to help get us out of it. They, and everyone else who holds a vote in Congress. — Jeff

Washington Mutual Gets Bought… The World Still Turns

Source: ABC News Photo

Yesterday, without much fanfare, the largest bank failure took place in the history of the world. Washington Mutual failed yesterday and was taken over by Federal regulators. Within the same day, the Federal regulators sold the assets to JP Morgan for $1.9 billion. The Mercury News reports:

The Federal Deposit Insurance Company (FDIC), insures Americans’ bank deposits of up to $100,000. But it says because of the deal it will not have to use its assets to cover Washington Mutual’s deposits.

So here is my question to Congress and the President – If we are on impending gloom and doom and will experience massive bank failures, how come the Washington Mutual failue was resolved with the kind of outcome that is Main Street friendly without spending $1 of taxpayer money?

In one day, the existing Federal authorities and the market resolved the largest S&L collapse with a result that seems to be exactly what is good for all of us taxpayers. That said, there were winners and loosers:

Winners:

• The depositors. Their money is safe and covered by JP Morgan.
• The FDIC. No funds will be needed to cover deposits.
• The taxpayer. No taxpayer will have to assume the losses of this failure.

Losers:

• The Washington Mutual Executives. Presumably, JP Morgan will no longer need their services.
• The Washington Mutual Shareholders. Shareholder took a risk in this company and lost.

Isn’t this the kind of result that Congress and the Administration is trying to get to? So help me understand this — why do we need to spend $700 billion to fix this problem? – Glenn

Agreement Reached… Heaven Help Us All

Lawmakers make announcement. Source: Reuters.com

Lawmakers in conjunction with the Administration announced agreement on the basic principles of a $700 Billion bailout package to buy up the bad debt in the financial system.

While an a agreement was reached, few details were provided. Reuters.com reported:

Lawmakers declined to provide details of the plan, but it is expected to include limits on executive pay and strong oversight provisions.

Whether it is the right solution or not, experts will say that this problem is the result of factors that span over 20 years. Apparently, Congress and the Administration have figured out the fix in about a week and a half.

Get ready for a wild ride… things are about to change. – Glenn

Change We Can Expect… Not Much

Picture Source: Harvard University web site

The Associated Press released a poll this morning which indicates that 18% of voters are “persuadable”. While one can argue over the the validity of an Internet poll, the article raises an interesting point:

Persuadable voters give McCain and Obama even marks on the economy, as well as other financial issues, including Social Security, gas prices, the budget deficit and housing prices. That underscores the opportunity each has to try to maneuver for an edge on the economy as a whole.

It is an amazing prospect that with the current mood for change, there is such a slim margin between the two presidential candidates. I read this as a message to the candidates. We “persuadable” voters are still not convinced that either of the candidates represent the real change that this country needs. With a trillion dollar banking bailout looming, how can either candidate which represent their parties claim that they will change the system. Neither one of them have a real track record of change. Claiming that one opposed the war or one supported the surge is really irrelevant.

A trillion dollar “get out of financial ruin” plan far outways any debate that the campaigns have brought fourth. Tell me this Senators McCain and Obama (if you both represent change) why neither of you raised the “we need to change our financial systems immediately” debate before it was too late. I suspect that the reason neither of you saw this coming was because the change that we really need is a fundamental shakeup of all of Washington. It will take the President and every Member of Congress to actually work together for the good of the nation… not themselves. This will only happen when we (the voters) start voting in new people if they don’t contribute to change in their first term. We need to hold every politician accountable, not just the President but also in the Senate and House. The message to them will be “change or get out!” – Glenn

Lessons for Congress from George Bailey

James Stewart in Frank Capra's It's a Wonderful Life

Growing up, part of the annual holiday tradition was watching the classic Frank Capra film, It’s a Wonderful Life. I can’t help but pause for a moment now to wonder how George Bailey would counsel us in how to get out of this financial conundrum we find ourselves in. Allow me to speculate on what good ol’ George might say to Congress if asked:

1. Do the right thing for the people, after all it is their money that you are dealing with.
2. Know the people who you are giving a mortgages to. At the Bailey Building & Loan, we know everyone we make a loan to. That is how we can minimize risk. I look across the table and ask them how they plan to pay the loan back.
3. Don’t give in to the Mr. Potters of the world. They are out there and they will do whatever and say whatever to take advantage of someone when they are down. They are roaming the halls here in Congress like flies on sh&t. Shoo them away or swat ‘em.
4. The bank examiner is one of the good people. He is my way of checking to see that my business is healthy and I have enough assets to cover my liabilities. We all make mistakes, like the time my Uncle Billy lost $8,000 dollars, but knowing that the bank examiner was coming kept me focused on doing the right thing for my business.
5. Bankers have a sacred trust with the community. They enable the local economy to thrive and grow. It seems that they forgot that the only way they can make money and sustain it, is by helping the community grow and sustain. Selling mortgages to people that can not pay it off in the long run doesn’t help either party.
6. Keep it local and simple. I make loans to people I know. They pay me back. What has happened here is that the owner of the loan is now so disconnected from the borrower that neither could ever know if the other was in trouble until it is too late. In my business, if someone doesn’t make their payment, I go to their house and talk about it over coffee.

Congress should keep these words of wisdom from George Bailey in mind as they start to dole out $1 trillion of taxpayer money that we don’t have. Maybe, and just maybe, if they do, we may all find a way to have our own wonderful lives again. – Glenn