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Cross posted at our new beta site Voices on the Square.
That’s right, and it was clear to everyone who opposed the pick of Tim Geithner from the start.  In his testimony yesterday on the NY Fed’s knowledge of the LIBOR scandal, Tim Geithner once again stated the falsity that the NY Fed was not a regulator (like he has before showing he's either a liar or completely incompetent), when in fact he was one of the most important regulators, unknown to him, supposedly.

This was during the proceedings looking into the 100 cents on the dollar backdoor bailout of Goldman Sachs through AIG facilitated while he was President of the NY Fed.

COUNT 2: He wasn't even a regulator! In Geithner's own words during confirmation hearings in March: "First of all, I've never been a regulator...I'm not a regulator." According to the New York fed bank's Web site, that was your job!!

Quoting from the Fed's website: "As part of our core mission, we supervise and regulate financial institutions in the Second District." That district of course is the epicenter for bailed out banks and billion dollar bonuses.

It is not just the responsibility of Fed Board governors like Tim Geithner said in his testimony yesterday while trying to inflate the case for his so called “intervention” that wasn’t on LIBOR. This lack of knowledge and corruption bothers me and it also bothers me that so many don't care, because there is an election. I feel like we are all being lulled to sleep every night by MSNBC and the partisan cable news 2012 election war syndrome.

Shortly after the President was elected, there were many naive Democrats who claimed Giethner was “a brilliant pick” merely because the President picked him which is always the criterion, sadly. I saw it as the beginning of the end of any chance of a functioning financial system that we were promised during the 2008 election by this President.  That's why I got involved in 2008, and that’s why a lot of us are unmotivated to say the least.

You see, to be making excuses for Tim Geithner even now while not even understanding the responsibilities of the NY Fed is outright embarrassing and immoral for all the damage it causes.

It causes a real human toll for our President to pick someone as unqualified and corrupt as Tim Geithner to be one of the most important regulators in our entire financial system. Pseudo “experts” on the so called merits of fraudulent finance for fixed markets should probably study this. You know who you are.

The NY Fed failed to take any significant action under Tim Geithner’s leadership once they all found out about Barclays, Citigroup, JP Morgan Chase, Bank of America and multiple other banks’ LIBOR manipulation of the benchmark interest rate on 800 trillion of all loans including mortgages, corporate bonds, municipal bonds, and derivative contracts way back in 2008 to now. It's clear that the suggestions in that email Geithner sent to British regulators at the Bank of England do not cut it or amount to any real action.

Tim Geithner's Libor Recommendations Came Straight From Banks, Documents Show

But the Fed, along with its statement, also released the staff work that led to the recommendations. Those documents reveal that the recommendations Geithner sent to London did not come from staff, but rather were proposed by major banks and more or less forwarded on verbatim.

The policy recommendations Geithner forwarded in an attachment on June 1 first appear in a staff memo dated May 20 that reads: "A variety of changes aimed at enhancing LIBOR's credibility has been proposed by market participants, and seem to be under consideration by the BBA. These proposed changes include, but are not limited to..."

A comparison between Geithner's recommendations and those put forward by "market participants" -- shorthand for banks -- makes it clear that Fed staff asked banks how to fix the problem, then presented those answers as their own. (Most of the banks consulted were likely U.S.-based institutions, as several of the recommendations are aimed at giving more power, not surprisingly, to U.S. banks.)

It’s also stupid to think you can get rid of an incentive during the bust of a massive housing bubble for bankers to cover their ass (why LIBOR was manipulated a lot of the time) by suggestions about better private market “incentives” instead of real regulation of these vampire squid financial blood suckers. It's even dumber to suggest that certain banks not identify themselves if they set lower rates to somehow curb these twisted incentives, because we all know it's about suggesting the right private incentives without regulatory oversight. Yeah, in La La Land!

Luckily we have a knowledgeable regulator like Sheila Bair who actually knows she is a regulator at the FDIC, to set him straight.

Sheila Bair On New York Fed's Role In Libor Scandal: 'I Don't Understand Why They Didn't Investigate'

"Looking at those e-mails, it looks like they had pretty explicit notification of some very bad behavior, and I don't understand why they didn't investigate," Bair, former chair of the Federal Deposit Insurance Corporation, said of Geithner's New York Fed on CNBC Friday. "They did have authority to do that."

Bair added that Geithner and the New York Fed "deserve credit for trying to suggest some reforms, but again, even then those reforms did not tackle the core problem, which was that it wasn't a transaction-based survey; it was a judgment survey."

LIBOR is based on transactions, not any judgement about what it takes to tweak magical market incentives in the private sector. Sheila Bair is right once again. This is the biggest in a long string of failures from our corrupt Wall St Treasury Secretary.

We know now particularly just how corrupt he is in comparison to people who actually care about the victims of this economic and financial crisis. One of those people is TARP Inspector General Neil Barofsky. His new book explains Timmy's disdain for working people and how they came to blows.

Bailout: An Inside Account of How Washington Abandoned Main Street While Rescuing Wall Street

It's shocking to see how a handful of powerful banks really do control our economy. So, Tim Geithner and the other officials I was dealing with down there, they would view these incidents through Wall Street colored glasses... If you find out something in April of 2008 and more than four years later nothing has happened about it -- I mean, that tells you everything you need to know about what's wrong with Washington.

"Over 10000 criminal referrals and over 1000 felony convictions of financial Oligarchs during the S&L crisis" former regulator Bill Black dives deep into this whole dynamic.

Reinventing Crony Capitalism: the Context of Geithner’s Obscene Rant against Barofsky

My column, however, expands on the article’s last paragraph:
“[T]he more-damning allegations of the book [are] that Geithner’s Treasury Department repeatedly tried to undermine Barofsky’s authority, ignoring his warnings about the risk of fraud in TARP programs and generally carrying water for the banking industry.”
[.........]

I do not detail Geithner’s actions against Barofsky in this article. I write to situate Geithner’s rage against Barofsky in the broader context of how the “reinventing government” movement helped destroy effective financial regulation and was particularly blind to the essential role that regulators must play to restrain the epidemics of fraud that drive our recurrent, intensifying financial crises.  The reinventing government movement’s embrace of the three “de’s” – deregulation, desupervision, and de facto decriminalization, its embrace of modern compensation, and its trivialization of the risks of control fraud contributed greatly to the maximization of the perverse incentives that produce epidemics of accounting control fraud. The reinventing government’s ideological embrace of neoliberal dogma created an intensely criminogenic environment.   The irony is that it became dominant at the federal level in the same year that its dogmas were confirmed to be false and criminogenic in the savings and loan context.  Indeed, reinventing government did not simply become dominant – in 1983 it became the exclusive acceptable (anti) regulatory philosophy of the Clinton administration.

[........]

Ideologically, the reinvention dogma was an application of the “Washington Consensus.”  The Washington Consensus embraced an anti-regulatory, anti-governmental dogma that promised to transform Latin America – the primary test bed for the consensus.  If readers have ever wondered why so many Latin American leaders have been elected on platforms that call for a major governmental role in the economy the shortest answer is that the Consensus failed to deliver on its promise of rapid growth and many aspects of the Consensus enraged a majority of the electorates.

President Clinton and Al Gore were Southern politicians who rose to power as “New Democrats.”  The New Democrats created the Democratic Leadership Council (DLC) to move the Democratic Party to the right.  The DLC was explicitly pro-business and allied with many of the largest corporations.  The DLC was anti-regulatory and shared the neo-liberal dogma that government was frequently a bloated failure while the private sector was a raving success.  

[.........]

This article focuses on one aspect of the reinventing movement’s dogma – the hostility to taking the vigorous regulatory, supervisory and enforcement actions that were essential to prevent control fraud and the destruction of the regulatory support essential to prosecute elite corporate criminals.  The reinvention dogma held that the federal officials who most obviously fought to prevent and punish fraud were the central problem.  The greatest villains were the inspector generals.  Geithner’s visceral attacks on Barofsky did not arise randomly – they exemplify the core dogma of the reinvention movement.

“Federal managers complain bitterly about the inspectors general, for example. Part of the auditing system, each IG’s office has hundreds of auditors and inspectors—many of them former law enforcement people—who comb through the organization looking for wrongdoing. Created by Congress in the late 1970s, they are a legacy of the Watergate era. Unfortunately, they operate as an enormous barrier to innovation, because when reinventors try new things they often have to bend a few rules. The IGs typically slap their wrists, regardless of how petty the infraction or how silly the rule.

This was a long piece, but it's well worth the read. It's illuminating because I always wondered how even the regulation agencies we still have(that have always worked particularly well) suddenly seems useless. Well the Inspector Generals in charge of making sure they operate correctly were cajoled by the Washington Consensus and former President Clinton and Vice president Al Gore's reinvention of the regulatory apparatus.  Since the Watergate era they have always maintained their independence and were not captured themselves but not anymore.

As seen in the well documented piece, IGs were the number one complaint by business friendly agencies and lobbyists for deregulation because they didn't have to be business friendly. An apparatus that puts regulators at the behest of capture by the business they are supposed to be regulating through a false sense of getting rid of red tape and making things more efficient by cutting down agencies's staff was the norm after the former VP's plan.  William K. Black worked for the Federal Home Loan Bank Board  from 1984 to 1986, deputy director of the Federal Savings and Loan Insurance Corporation in 1987, and Senior VP and the General Counsel of the Federal Home Loan Bank of San Francisco from 1987 to 1989, which regulated some of the largest thrift banks in the U.S.

These agencies functioned in a way where Black could root out the control fraud that pervades all of our banking institutions of this day. No reinvention was necessary except to rid regulators of the tools they need to do their jobs well for the people and not business interests according to third way corporatist-a-crats. It's why the UMKC is adopting his and George Akerlof's and Paul Romer's papers on accounting control fraud into Modern Monetary Theory. This is the right diagnosis of our corrupt financial system, and those making excuses for it have nowhere to stand when they deny the history of the S&L crisis and Black's successes.

SIGTARP Neil Barofsky is one of the few besides Black that still represents this era and the Washington Neoliberal consensus that exists within this President's treasury hates him for it. They don't like to be called out for their poorly designed HAMP programs that rip working people off through a bait-and-switch process for the benefit of the banks while they lose their homes.

As you might know, I've met Neil Barofksy and saw him at NN12 during David Dayen's foreclosure fraud panel. Marcy Wheeler has an excellent live blog of that panel.

It was one of the few panels not filmed perhaps because it's the most dangerous panel in the world for the Washington consensus. Maybe because it was too real in an election year, but it doesn't help victims of the foreclosure crisis from this economic and ponzi financial crisis to ignore them. You're really not laying groundwork for the future of the Democratic Party by falling completely in line during an election year and letting this kind of behavior go by the wayside.

It makes it look like Democrats don't stand for anything and validates criticism from people who claim that voters in both parties are so politically polarized that they are incapable of nuance or critical thinking and just represent their chosen party most of the time for better or worse like a marriage. When we represent our party and defend everyone in the party for better or worse, we are not forming a sacred union, we are upholding a sacrilege in a government wholly owned by the banking elites and the .01%

No we should be allowed to say Tim Geithner is a failure, a shill for the banks, and that he should be fired. We should be allowed to say that Eric Holder's DOJ is a failure going by the numbers of convictions and even referrals of financial crime and he should be fired. I hate to break it to you, but if some out there claiming to be in the progressive blog-o-sphere think insulting me and others who are informed on these issues(and worked to elect the President and Democrats in Congress in 2008) will somehow energize the base, they are sadly mistaken.

"At least we're better than the Republicans" didn't work in 2010 either. We are the base whether you like it or not; the purist, pony loving, reality acknowledging, antiwar, pro union, issue voting, personality politics avoiding, New Deal defending, Social Security preserving base some of you know and love and love to hate.

Maybe firing some of the wholly banker owned officials in each department of the executive branch would help motivate the more populist factions that agree with us on these issues? Then we could stop wondering where the Democratic Party we read about in our history books went.

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Comment Preferences

  •  The statute of limitations has nearly expired. (16+ / 0-)

    DOJ let the Banksters get off scott free yet few of us are saying or doing anything to change it.

    Education is a progressive discovery of our own ignorance.

    by Horace Boothroyd III on Thu Jul 26, 2012 at 07:59:20 AM PDT

  •  Thanks for this piece! (13+ / 0-)

    As for Reinventing Government, the idea was usually described as about making government work better; but what they really meant was more efficient and cheaper to run - a business model.

    So, the first move was:

    The Vice President presented the report to President Clinton on September 7, 1993. The President and Vice President made a tour of the country to promote the report. The President issued directives to implement a number of the recommendations, including cutting the work force by 252,000 positions, cutting internal regulations in half, and requiring agencies to set customer service standards. In addition, the Congress adopted a law developed during the study phase of our task force – the Government Performance and Results Act -- that required agencies to develop strategic and performance plans, along with measures of performance, and publicly report progress annually.
    •  Thanks, SpecialKinFlag (2+ / 0-)
      Recommended by:
      SpecialKinFlag, shaharazade

      I know how it was described. An SEC that works for Wall St is the result per the Bill Black analysis.

      But a government run like a business? Romney would love that. Third ways to hell are paved with so called good intentions.

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 08:33:00 AM PDT

      [ Parent ]

      •  Yep, but it was an ineteresting (4+ / 0-)
        Recommended by:
        PhilJD, priceman, Cassiodorus, shaharazade

        phenomena. The originators had their own perspectives and goals.

        "Reinventing Government" is not just a cutsie name dreamed up by Al Gore to describe what he did to the federal government. It is a disciplined process, lifted from industry, to create "fundamental change, rapid progress toward radical goals" employing the use of "selective" information.

        The process utilizes "slow targets," the deliberate, rather silent, development of goals and strategies, and "fast bullets," rapid implementation of activities to achieve the goals. http://www.sovereignty.net/...

        What is the origin of the term "Reinventiong Government?
        It is a Forbes magazine article that provides the most valuable insight into its origins. In it Mary Parker Follett, an early 20th century educator and business management consultant from Boston, is identified as being the "mother" of reinventing government theory. The author further cites management theorist, Peter Drucker, and London School of Economics chairman, Sir Peter Parker, as being in agreement with her on this point. Among Folletts friends and supporters were some of the wealthiest and influential people in Boston including the Cabot and Shaw families, businessman Henry Dennison and the wife of Supreme Court Justice, Louis Brandeis. In addition to the very wealthy, she also numbered among her acquaintances the academic elite of Boston. Albert Bushnell Hart, professor of history at Harvard University and president of both the American Historical Association and the American Political Science Association was among this group.

        As World War I was coming to a close, communists and radicals of every stripe were laying the groundwork for a socialist world government that they hoped would emerge from the ruins of the old world order. As it turns out, large banking interests and others of great wealth, in Britain and the United States, were thinking along similar lines—of course their brand of socialism would have two classes not one. In 1918, with the help of Albert Bushnell Hart, Follett wrote a book called The New State: Group Organization the Solution of Popular Government. In which she outlined the social, political and educational requirements necessary to build a world government and it was the banking interests to which it was addressed.  http://www.sovereignty.net/...

        This second article is an especially interesting read because Follett is considered to be the "mother" of this theory and she is not an advocate for the "commoner."
  •  gawd Timmy's an ass... (10+ / 0-)

    the fact that that kind of arrogant, didn't do anything wrong smugness has come from both Republican and now Democratic admins is pretty much proof that the parties - both of them, are here to serve a master, but it ain't we the people...

    well done priceman!  :D

    A) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12 B) "Stoking the base’s enthusiasm is part of a campaign’s job, whether or not it thinks it should have to do it." ~Michelle Goldberg

    by poligirl on Thu Jul 26, 2012 at 08:28:48 AM PDT

    •  Indeed. I have had enough. (3+ / 0-)
      Recommended by:
      JVolvo, poligirl, shaharazade

      Thanks poligirl. I have had enough as well, even during an election year! ;)

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 08:34:14 AM PDT

      [ Parent ]

  •  We just get to pay his salary. n/t (3+ / 0-)
    Recommended by:
    SpecialKinFlag, priceman, shaharazade
  •  It is based on judgment, not transactions (1+ / 0-)
    Recommended by:
    Don midwest
    LIBOR is based on transactions, not any judgement about what it takes to tweak magical market incentives in the private sector
    LIBOR is based on a subjunctive: what could you borrow money at?

    Here's the query:

    At what rate could you borrow funds, were you to do so by asking for and then accepting inter-bank offers in a reasonable market size just prior to 11 am?
    (via Demos)
    •  You read my comment wrong (4+ / 0-)
      Eliminate incentive to misreport if the combination of best practices and audit recommendations in (1) above seems unlikely to be sufficiently effective in ensuring accurate reporting, a complimentary approach might be to adopt the following process for collecting, calculating, and publishing LIBOR rates. The BBA could collect quotes from all members of the expanded panel, and then randomly select a subset of 16 banks from which the trimmed mean would be calculated. The tames and quotes for the 8 banks whose rates are averaged to calculate the LIBOR fixing would be published. The banks' whose reports fall above or below the midrange would not be publicly identified, nor would the level of their outlying rates. This random sampling from an expanded panel would lessen the likelihood that the market would draw a negative inference regarding a particular bank's continued absence from the list of published quotes»
      But it is a judgement depending on when transactions occur or contracts are reset and at what rate.
      There is a separate set of interest rates for each major currency. LIBOR rates, representing the cost of acquiring funds for a time period, are unique for each currency because relative currency values differ over time. For example, the value in euros of one US dollar changes continuously. The difference in euro LIBOR rates and US dollar rates brings borrowings in the two currencies into equilibrium.

      Within each set of LIBOR rates for a given currency, there are different rates for different durations (the term of a fixed period of interest rate). For instance, one day LIBOR represents a loan with an interest rate which is reset (or is repaid) every day. Three-month LIBOR represents a loan with an interest rate that is reset (or is repaid) every three months, and so on.

      trans·ac·tion   [tran-sak-shuhn, -zak-]  Show IPA
      noun
      1.
      the act of transacting  or the fact of being transacted.
      2.
      an instance or process of transacting  something.
      3.
      something that is transacted,  especially a business agreement.
      4.
      Psychology . an interaction of an individual with one or more other persons, especially as influenced by their assumed relational roles of parent, child, or adult.
      5.
      transactions, the published records of the proceedings, as papers read, addresses delivered, or discussions, at the meetings of a learned society or the like.
      Derivatives are contracts like all credit affected by LIBOR. It's kind of bizarre to claim otherwise, though we are talking past each other.

      So Sheila Bair is right. It's not base on a judgement on incentives which is the context I was referring to, but either way it's based on a transaction first an foremost on different benchmarks whether currency swaps or not. It's really not a judgement on whether if some parties are revealed there will be a desired result, it's about the integrity of the rate at which time.

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 09:14:38 AM PDT

      [ Parent ]

      •  The first blockquote is from Geithner's email (1+ / 0-)
        Recommended by:
        BruceMcF

        a truly horrible judgement based solution not based on any transactions which are the matter that matters.

        ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

        by priceman on Thu Jul 26, 2012 at 09:24:26 AM PDT

        [ Parent ]

  •  Obama was fully transparent when he hired (12+ / 0-)

    Geithner.  He made his game plan clear at that time, not that there weren't many other indications.  
    I don't know, all I see are patterns.  Predictable patterns that are carrying on from one admin to the next and melding closer together each time. The oligarchy has control of both parties and all this election is doing is putting off the inevitibles.

    "The Global War on Terror is a justification for U.S. Imperialism. It must be stopped."

    by BigAlinWashSt on Thu Jul 26, 2012 at 08:34:48 AM PDT

    •  Little changes in too many ways from one admin (6+ / 0-)

      to next.

      You expect so much change when the administration changes and you hope, you wait for change, and you find that you are waiting and waiting and hoping and hoping......

      Predictable patterns that are carrying on from one admin to the next and melding closer together each time. The oligarchy has control of both parties

      "Who are these men who really run this land? And why do they run it with such a thoughtless hand? David Crosby.

      by allenjo on Thu Jul 26, 2012 at 08:55:35 AM PDT

      [ Parent ]

    •  Sad but true, Al. (10+ / 0-)

      Not that the two parties are exactly the same. They maintain enough differences to give the illusion of choice at the voting booth and because it is more effective. Having two parties  - both beholden to you - do a tag team dance gets the ones at the tops their wins. And they are always winning, with the rest of us always losing.

      When we have a choice between an actual Wall Street 1% asshole and guy who has served and protected the 1% assholes to the best of his considerable abilities, we have no choice at all. Very sad.

      •  Social Issues are the main area of disagreement. (7+ / 0-)

        And all that is actually allowed into the public sphere for examination and debate.

        Economics, War War War: the political class differs here only on whether the bankers should be saved first, or if only the bankers should be saved; whether we should be more aggressive in our global hegemony, or much more aggressive. But Rule by the RIch and Permanent War, we're getting that shoved down our throats democracy or no democracy.

        We're allowed social issues to discuss because that effectively divides the voters. If everyone was agreed that bigotry in any form is wrong, we wouldn't be allowed that either. We'd only be talking about personalities and gaffes.


        The Internet is just the tail of the Corporate Media dog.

        by Jim P on Thu Jul 26, 2012 at 09:34:33 AM PDT

        [ Parent ]

    •  Very true, BigAlinWashSt (5+ / 0-)

      That Rubinite selection signaled the end. He tricked a lot of us by having Robert Reich and others's names floated but we now know the score.

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 09:31:32 AM PDT

      [ Parent ]

    •  Different factions among the oligarch, though. (2+ / 0-)
      Recommended by:
      aliasalias, priceman

      I'd rather have the Whig wing of the Corporate party in the White House than the Tory wing, but having an alternative to the Corporate Party would be much better.

      Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

      by BruceMcF on Thu Jul 26, 2012 at 12:43:35 PM PDT

      [ Parent ]

    •  Geithner, Rahm Emmanuel, Summers, Bernanke etc. (6+ / 0-)

      and when those names surfaced as Obama's choices many people rallied behind it saying (in effect) 'they know where the bodies are buried! they know how the system works (don't they ever) so they can be effective (they've proved it) and... not to worry they now have a different kind of Boss giving them directions.
      Sure, all the leopards were gonna change spots, exposing all the  (crimes) bodies they helped bury ,and with marching orders to help the american public.
      Then when Obama goes from one corporate exec after another for White House Staff not a peep is heard from the collective Party and that includes having a GE Exec as his jobs czar, someone who exported over 300,000 jobs. What a job he's done.

      If anyone has any doubts about which side this administration is on it is willful ignorance, or they are in agreement and that is on full display here on DK 'whispering at the gates' with articles about Romney outsourcing jobs while Obama' is engineering the Pacific Trade deal which is the NAFTA of all NAFTA...on steroids.

      I know it doesn't matter but I don't spend much time here anymore and Priceman you are one of the reasons I still show up, along with Jesselyn Radack and a few others, but other than it has become The Daily Mitt Report.

      without the ants the rainforest dies

      by aliasalias on Thu Jul 26, 2012 at 12:53:21 PM PDT

      [ Parent ]

      •  Welcome to the Daily Romney (6+ / 0-)

        The FP has been horrible for quite a while, and now the wreck list seems to be going down in flames as well, only with a few worthy diaries every once in a while. Sigh...

        “In the beginning there was nothing, which exploded.” Terry Pratchett

        by 420 forever on Thu Jul 26, 2012 at 01:28:05 PM PDT

        [ Parent ]

      •  Thank you, aliasalias (3+ / 0-)

        I can barely get up the motivation to post one ignored diary a week here during election season, but I do just because it's an writing exercise that's important.

        I'm glad there are people like you that notice in the midst of Romney this and Romney that. You're right.

        ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

        by priceman on Thu Jul 26, 2012 at 06:05:48 PM PDT

        [ Parent ]

        •  from that link (2+ / 0-)
          Recommended by:
          priceman, 420 forever
          As one of the bankers told Ron Suskind in The Confidence Men: "The sense of everyone after the meeting was relief. The president had us at a moment of real vulnerability. At that point, he could have ordered us to do just about anything and we would have rolled over. But he didn't – he mostly wanted to help us out, to quell the mob. And the guy we figured we had to thank for that was [Treasury secretary] Tim [Geithner]. He was our man in Washington." This is what makes Democratic attacks on the business record of Republican presumptive nominee Mitt Romney so difficult to swallow. While their substance is sound and their target deserving, the source makes them hypocritical and opportunistic. The poor do not have "a man in Washington". Romney deserves to be taken to task. However, it's not a task the Democrats can credibly undertake since they have been complicit in the very practices for which they criticise him.
          (emphasis mine)

          without the ants the rainforest dies

          by aliasalias on Fri Jul 27, 2012 at 11:21:10 AM PDT

          [ Parent ]

      •  You may find (2+ / 0-)
        Recommended by:
        priceman, aliasalias

        This thread illuminating.  

        http://www.dailykos.com/...

        Why, I feel so free to comment now, I'm not chilled at all!  So I say Happy Birthday, Mr President!

        ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

        by Nada Lemming on Thu Jul 26, 2012 at 06:08:40 PM PDT

        [ Parent ]

  •  A post that speaks to the conscience of DKos... (12+ / 0-)

    ...and the Democratic Party, as a hole whole.

    Price, many thanks for this!

    "I always thought if you worked hard enough and tried hard enough, things would work out. I was wrong." --Katharine Graham

    by bobswern on Thu Jul 26, 2012 at 08:49:23 AM PDT

  •  "Democracy Inc.: Managed Democracy (6+ / 0-)

    and the Specter of Inverted Totalitarianism" is the title of the book by the 90 year old dean of American Political Philosophers (not political scientists.)

    This is a deep book. Very insightful about what has happened to the country and what is right around the corner.

    Read Glenn Greenwald and Chris Hedges for a start at understanding what is going on. Read Matt Tiabbi and Naked Capitalism about our criminal financial system.

    Glenn had a recent column about Dianne Fienstein's role in the security state to crack down on leeks when she is one of the biggest sources of leeks in congress. Her husband makes money from the defense industry.

    She is a democrat. Both parties for the most part support the 1%.

    This is a comment from Greenwals's post on Fienstein. It is mostly Wolin quotations with some words from someone with the screen name of ChicagoDaveM. There are outstanding comments on Greenwald's posts.

    Sheldon Wolin:

    The genius of our inverted totalitarian system "lies in wielding total power without appearing to, without establishing concentration camps, or enforcing ideological uniformity, or forcibly suppressing dissident elements so long as they remain ineffectual. A demotion in the status and stature of the 'sovereign people' to patient subjects is symptomatic of systemic change, from democracy as a method of 'popularizing' power to democracy as a brand name for a product marketable at home and marketable abroad. The new system, inverted totalitarianism, is one that professes the opposite of what, in fact, it is. The United States has become the showcase of how democracy can be managed without appearing to be suppressed."

    ChicagoDave M continues

    On inverted totalitarianism's "self-pacifying" university campuses compared with the usual intellectual turmoil surrounding independent centers of learning, Wolin writes, "Through a combination of governmental contracts, corporate and foundation funds, joint projects involving university and corporate researchers, and wealthy individual donors, universities (especially so-called research universities), intellectuals, scholars, and researchers have been seamlessly integrated into the system. No books burned, no refugee Einsteins. For the first time in the history of American higher education top professors are made wealthy by the system, commanding salaries and perks that a budding CEO might envy."
    Wolin argues, "The privatization of public services and functions manifests the steady evolution of corporate power into a political form, into an integral, even dominant partner with the state. It marks the transformation of American politics and its political culture from a system in which democratic practices and values were, if not defining, at least major contributing elements, to one where the remaining democratic elements of the state and its populist programs are being systematically dismantled." This campaign has largely succeeded. "Democracy represented a challenge to the status quo, today it has become adjusted to the status quo."
    One other subordinate task of managed democracy is to keep the citizenry preoccupied with peripheral and/or private conditions of human life so that they fail to focus on the widespread corruption and betrayal of the public trust. In Wolin's words, "The point about disputes on such topics as the value of sexual abstinence, the role of religious charities in state-funded activities, the question of gay marriage, and the like, is that they are not framed to be resolved. Their political function is to divide the citizenry while obscuring class differences and diverting the voters' attention from the social and economic concerns of the general populace." Prominent examples of the elite use of such incidents to divide and inflame the public are the Terri Schiavo case of 2005, in which a brain-dead woman was kept artificially alive, and the 2008 case of women and children living in a polygamous commune in Texas who were allegedly sexually mistreated.
    Another elite tactic of managed democracy is to bore the electorate to such an extent that it gradually fails to pay any attention to politics. Wolin perceives, "One method of assuring control is to make electioneering continuous, year-round, saturated with party propaganda, punctuated with the wisdom of kept pundits, bringing a result boring rather than energizing, the kind of civic lassitude on which managed democracy thrives." The classic example is certainly the nominating contests of the two main American political parties during 2007 and 2008, but the dynastic "competition" between the Bush and Clinton families from 1988 to 2008 is equally relevant. It should be noted that between a half and two-thirds of qualified voters have recently failed to vote, thus making the management of the active electorate far easier. Wolin comments, "Every apathetic citizen is a silent enlistee in the cause of inverted totalitarianism." It remains to be seen whether an Obama candidacy can reawaken these apathetic voters, but I suspect that Wolin would predict a barrage of corporate media character assassination that would end this possibility.
    •  Interesting stuff. (2+ / 0-)
      Recommended by:
      Don midwest, priceman

      You might be interested in the second link in my comment above. That piece also considers how education could have a role in this direction.

      •  Have to run now (4+ / 0-)

        Looked at your link.

        It would take some time.

        It could be that your are going to the international bankers and their control of stuff.

        I go for a big picture in another direction. The take over of social scientists by statistics and other mechanized views of the world.

        Almost all of our institutions are corrupt these days.  This includes the colleges.

        I am not thinking straight and really late for a meeting, but will just say a little more.

        I spent a couple of decades around the quality field. It is another one of those mathematical overlays that can be used to justify anything.

        The banksters are using advanced science, then supported by governments, to turn everything into gambling.

        All the while the environment is going down the drain which will show up all the lies for decades by the energy extraction industries and the special interests like the banksters.

        •  I understand what you're saying. (3+ / 0-)
          Recommended by:
          priceman, PhilJD, David Futurama

          I worked for Head Start for years and helped create a test for Preschoolers to measure whether we were educating them or  not. Testing preschoolers? Not the best idea but mandated by the Feds. The one saving grace was that the tests were to be created at the local level. We were able to create a system that actually helped our teachers and staff to create a better program. But we didn't actually test the preschoolers. We tracked their meeting of  milestones on a daily basis and reported them at 3 points in the year. We tried some of the ideas that the Feds came up with. They would have been a disaster.

  •  lets see if this makes it to the Rec list (9+ / 0-)

    i just did a rough count and there are about 10 diaries on Romney (that includes both of them like the debates)

    the back and forth of politics is a side show, a diversion from important issues like this diary

    it is easy to post a diary on the latest white girl missing, which is what passes for news, mistake, i meant to say the latest up and down of the campaign, rather than a really important issue

    we are in a depression

    the politicians are fiddling around

    the people are filled with propaganda

  •  Your mission should you choose to accept it (4+ / 0-)
    Recommended by:
    PhilJD, Don midwest, aliasalias, priceman

    I guess he got a new job description.

    I'm not a regulator." According to the New York fed bank's Web site, that was your job!!

    "Who are these men who really run this land? And why do they run it with such a thoughtless hand? David Crosby.

    by allenjo on Thu Jul 26, 2012 at 09:34:27 AM PDT

  •  "and they frankly own the place" (4+ / 0-)

    - Dick Durbin referring to the banks power and control over congress

    Why think that a first-term White House would be any different?

    I want a living planet, not just a living room.

    by Anthony Page aka SecondComing on Thu Jul 26, 2012 at 09:40:26 AM PDT

  •  I am shocked, SHOCKED, I tell you! (2+ / 0-)
    Recommended by:
    SpecialKinFlag, priceman

    GOBSMACKED.
    OUTRAGED.

    Nobody could have predicted this!

  •  T & R'd, thanks priceman (3+ / 0-)
    Recommended by:
    SpecialKinFlag, priceman, aliasalias

    fyi -, Dem Leadership (Pelosi & Hoyer) (unsuccessfully) whipped against auditing the Fed yesterday.

    •  Thank you, huttotex (0+ / 0-)

      typical. :D

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 10:08:50 AM PDT

      [ Parent ]

  •  Correction: Geithner was chosen (0+ / 0-)

    to be approved by the Senate, much more than 40 of whom represent bankers.  The continued, deliberate failure to place presidential appointments in the context of our three-branch system of government limit how effective we are in influencing them.

    "I'm going to rub your faces in things you try to avoid." - Muad'Dib

    by Troubadour on Thu Jul 26, 2012 at 10:02:07 AM PDT

    •  He was nominated by the senate? (3+ / 0-)
      Recommended by:
      priceman, SpecialKinFlag, 420 forever

      I guess your version of the roles of the three branches differ from mine.  Unless you are suggesting, like I might, that the senate should have rejected these posers.  Then I'd agree.  Of course, the dems would have had some explaining to do wrt their masters.  

      ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

      by Nada Lemming on Thu Jul 26, 2012 at 11:36:10 PM PDT

      [ Parent ]

      •  The 57 Democrats made him choose a Rubinite... (2+ / 0-)
        Recommended by:
        Nada Lemming, 420 forever
        and controwwed evewything the President did! It's twue!
        It's a laughable argument, but it's par for the course for him so I'm not responding to him. It's obvious his history is screwed as well as his pseudo knowledge of civics given the massive outrage over TARP at that time by the public giving massive leverage for a better pick. It was a crisis that went wasted, but you can't explain something to someone when their fake knowledge of civics and other delusional beliefs depend on him not understanding it.

        ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

        by priceman on Thu Jul 26, 2012 at 11:58:28 PM PDT

        [ Parent ]

      •  No, genius. He was nominated (0+ / 0-)

        to pass the Senate.  

        "I'm going to rub your faces in things you try to avoid." - Muad'Dib

        by Troubadour on Fri Jul 27, 2012 at 10:37:22 AM PDT

        [ Parent ]

        •  Say the words please (2+ / 0-)
          Recommended by:
          priceman, 420 forever

          "Nominated by the president."

          ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

          by Nada Lemming on Fri Jul 27, 2012 at 04:31:00 PM PDT

          [ Parent ]

          •  Say these words please: (0+ / 0-)

            "Nominating Paul Krugman would have made me feel better, but that doesn't mean anything to anyone because he wouldn't have been approved."

            "I'm going to rub your faces in things you try to avoid." - Muad'Dib

            by Troubadour on Fri Jul 27, 2012 at 04:51:28 PM PDT

            [ Parent ]

            •  so only corrupt neoliberals need apply (2+ / 0-)
              Recommended by:
              priceman, 420 forever

              Because the senate or something.  Thanks for the civics lesson.  And you're on the rec list all the time.  

              ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

              by Nada Lemming on Fri Jul 27, 2012 at 07:06:41 PM PDT

              [ Parent ]

              •  Not "or something." (0+ / 0-)

                Because the Senate, period.  The Senate that gets elected by the people of each state.  I know it's not entirely democratic, given the disproportionate power of small states, but thems the breaks under our Constitution.  You gonna do something about it or are you gonna whine forever and blame Barack Obama because he's not your Fidel Castro wet dream?

                "I'm going to rub your faces in things you try to avoid." - Muad'Dib

                by Troubadour on Fri Jul 27, 2012 at 07:43:58 PM PDT

                [ Parent ]

                •  Ok (1+ / 0-)
                  Recommended by:
                  priceman

                  Until you take a civics course, please don't lecture anyone about civics.  You have demonstrated complete ignorance or willful blindness about how government actually works.  

                  the rotating villain scam was busted years ago.  

                   

                  ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

                  by Nada Lemming on Sat Jul 28, 2012 at 07:56:46 AM PDT

                  [ Parent ]

          •  Hilda Solis ruins his child-like fantasy (2+ / 0-)
            Recommended by:
            Nada Lemming, 420 forever

            That the Democratic Senate wouldn't nominate anyone not responsible for the crash and the millions of jobless he doesn't care about because he's busy admiring his hero. The President was forced to do it because no one but an acolyte of Alan Greenspan could be nominated for the President's cabinet in fantasy psuedo knowledge of civics dreamworld.

            After all we know Wall St loves unions, right? Nope, and she had strong ties to labor and was nominated. Anyone could have been nominated, but Obama chose Geithner to be nominated and he could have chose anyone going by real facts instead of sycophantic ones.

            ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

            by priceman on Fri Jul 27, 2012 at 06:49:04 PM PDT

            [ Parent ]

  •  If your version of the base (0+ / 0-)

    (and really, they aren't anywhere close to the base, but that's another arugment altogether) thinks that not re-electing Obama and the Democrats is going to make things better instead of worse with repsect to the financial scandal, I suggest they think again.

    If you think telling me you need to be coddled and hand held on your issue before you'll get energized to do what's right for the country will get me on your side,  I suggest YOU think again.

    I have no patience or understanding for those who do not find the difference between Romney and Obama energizing enough to work their asses off to re-elect the President and give him a Democratic majority.

    They are making the very problems they claim to care about worse instead of better.

    "The future of man is not one billion of us fighting over limited resources on a soon-to-be dead planet. . .I won't go back into the cave for anyone."

    by Whimsical on Thu Jul 26, 2012 at 11:05:26 AM PDT

    •  And re-electing Obama and doing ... (5+ / 0-)

      ... nothing else will also not make things substantially better. The different between driving the economy into the ditch and driving the economy over a cliff is real, but neither alternative is the policy that we ought to be pursuing, and shutting up about the Obama administration driving the economy into a ditch "just during election season" has one major flaw:

      • Its Always Election Season In America.

      Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

      by BruceMcF on Thu Jul 26, 2012 at 12:49:31 PM PDT

      [ Parent ]

      •  I wasn't aware (3+ / 0-)
        Recommended by:
        priceman, SpecialKinFlag, 420 forever

        Priceman was trying to get conservatives on his side.  Didn't seem to be the diary's point.  

        ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

        by Nada Lemming on Thu Jul 26, 2012 at 11:38:01 PM PDT

        [ Parent ]

        •  Like the sig by the way. New? nt (1+ / 0-)
          Recommended by:
          priceman
        •  What conservatives are you referring to? (3+ / 0-)
          Recommended by:
          Don midwest, priceman, 420 forever

          The contrast between the Obama administration and the Republican alternative only makes the Obama administration relatively economically progressive, not economically progressive in an absolute sense. Geithner would have no place in an actually progressive economic policy team.

          Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

          by BruceMcF on Fri Jul 27, 2012 at 10:59:10 AM PDT

          [ Parent ]

          •  And its going to take a few election cycles (0+ / 0-)

            of supporting relatively progressive Democrats before you'll be able to get a Democrat that will appoint an actually progressive economic policy team.

            Or you can not support relatively progressive Democrats, and then Republicans will get ion, and it will be generations before you can get back to relatively progressive, and hopefully not make the same mistake the second time around.

            "The future of man is not one billion of us fighting over limited resources on a soon-to-be dead planet. . .I won't go back into the cave for anyone."

            by Whimsical on Fri Jul 27, 2012 at 12:43:34 PM PDT

            [ Parent ]

            •  What do you mean by support? (2+ / 0-)
              Recommended by:
              priceman, 420 forever

              Is it poll "support"? Voting for? Or doorknocking for, phonebanking for, etc?

              There is no amount of support for Hedge Fund Democrats that will move things toward "getting" to support actual progressives. The path to getting to support actual progressives is to fight for actual progressives at the primary level and then support those who get through to the general election.

              If I have a certain amount of actual grass roots support that I can provide, it doesn't make much sense to use any of it in support of Democrats from the Hedge Fund wing if there are any progressive or populist candidates available to support.

              Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

              by BruceMcF on Fri Jul 27, 2012 at 02:28:08 PM PDT

              [ Parent ]

              •  I agree with fighting for actual progressives (0+ / 0-)

                in the primary; I've said that for years.

                That said, not supporting- and by supporting, I mean doing EVERYTHING possible to get the Democrat -even if it's not the progressive- elected in the general is national suicide.

                "The future of man is not one billion of us fighting over limited resources on a soon-to-be dead planet. . .I won't go back into the cave for anyone."

                by Whimsical on Fri Jul 27, 2012 at 05:35:09 PM PDT

                [ Parent ]

      •  Nice Straw Man (0+ / 0-)

        Where did I say "elect Obama and do nothing else".  I honestly would've left the diary without comment, cept for the diarist's dickish assumption that me telling him that he needs to re-elect Obama because it's whats good for the country (in comparison to Romney) was some sort of insult.

        As for the economy, substiantally better isn't on the menu, because that's not how the system WORKS.  Your choices are someone who will improve things a little (and after him, someone who will improve things a little more- whatever happened to patience being a virtue) or someone who will make things much, much worse.  And doing anything other than busting your ass to get the fellow who will make things a little better elected just makes it easier for the person that will make things much much worse to win.

        "The future of man is not one billion of us fighting over limited resources on a soon-to-be dead planet. . .I won't go back into the cave for anyone."

        by Whimsical on Fri Jul 27, 2012 at 12:40:46 PM PDT

        [ Parent ]

        •  This was the straw man I was responding to: (2+ / 0-)
          Recommended by:
          priceman, 420 forever
          thinks that not re-electing Obama and the Democrats is going to make things better instead of worse with repsect to the financial scandal, I suggest they think again.
          That the flaws of the current administration cannot be discussed because "the Republicans are worse".

          We need to discuss more than who is the greater of two evils and who is the lesser of two evils ... we also need to discuss what genuinely good policy would be.

          Support Lesbian Creative Works with Yuri anime and manga from ALC Publishing

          by BruceMcF on Fri Jul 27, 2012 at 02:32:13 PM PDT

          [ Parent ]

          •  I didn't say that the flaws of the current (0+ / 0-)

            administration could not be discussed.  

            Yes, I have severe issues with the TONE and PHRASING used in the discussion- I believe there is a way to discuss these things that does not empower the Republicans- and most of the left isn't using it; but once again- the idea that I, or frankly anybody, ever claimed that the flaws of the current administration could not be discussed is a massive straw man.

            For example, by all means less discuss what good policy would be- and who is taking baby steps down the path towards it, and who is running away from it at top speed.

            "The future of man is not one billion of us fighting over limited resources on a soon-to-be dead planet. . .I won't go back into the cave for anyone."

            by Whimsical on Fri Jul 27, 2012 at 05:39:36 PM PDT

            [ Parent ]

  •  Hey priceman (2+ / 0-)
    Recommended by:
    priceman, SpecialKinFlag

    OT, but what format are you using in your illustrations?  My Mac and iPad not only can't view them, they elongate them for page after page of black streaky stripes of nothingness.  Assuming you weren't trying to do that, what would cause it?  

    ‎"Find out just what any people will quietly submit to and you have the exact measure of the injustice and wrong which will be imposed on them." --Frederick Douglass

    by Nada Lemming on Thu Jul 26, 2012 at 06:03:01 PM PDT

    •  I don't know. Photobucket may be messing up on U (1+ / 0-)
      Recommended by:
      Nada Lemming

      They're optimized jpegs. Sorry that is happening. I don't know why. It's not that way to me.

      ‎A) "Bipartisan usually means that a larger-than-usual deception is being carried out." - George Carlin B) "The administration should be worried about the level of despair here." ~Markos Moulitsas at NN12

      by priceman on Thu Jul 26, 2012 at 06:56:14 PM PDT

      [ Parent ]

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