Sunday, February 08, 2009

A NY Fishwrap Trifecta Redux: Slumdogs, Bank Shots, & Snark Attacks!

Frank (The Butcher On Broadway) Rich gained his nickname by savaging Broadway shows as the NY Fishwrap's drama critic. Today, The Butcher mauls The Hopester's maiden voyage as POTUS. Ouch.

Thomas (The Flatster) Friedman wrote The Earth Is Flat in '05 and his analysis of the global economy revealed a new (and level) playing field that included China and India as major economic powers. Today, The Flatster is hyping Lt. General Keith Dayton and his mission to the West Bank.

Maureen (The Cobra) Dowd is an equal-opportunity slasher. The Clintonistas didn't like her, but it was the Fratboy-in-chief who bestowed a nickname on Dowd for her Op-Ed columns that ripped The Bushies. Thanks to The Dubster, The Cobra was born. Today, The Cobra hisses at (and bites) The Hopester and his Gang That Couldn't Appoint Straight.

If this is a (fair & balanced) Murderers' Row, so be it.

[Vannevar Bush Hyperlink — Bracketed Numbers — Directory]
[1] The Butcher: Ah, Those Pesky Slumdogs!
[2] The Flatster: The Ultimate Bank Shot?
[3] The Cobra: Snark Attack!

[x NY Fishwrap]
[1]Back To Directory
Slumdogs Unite!
By Frank Rich

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Someday historians may look back at Tom Daschle’s flameout as a minor one-car (and chauffeur) accident. But that will depend on whether or not it’s followed by a multi-vehicle pileup that still could come. Even as President Obama refreshingly took responsibility for having “screwed up,” it’s not clear that he fully understands the huge forces that hit his young administration last week.

The tsunami of populist rage coursing through America is bigger than Daschle’s overdue tax bill, bigger than John Thain’s trash can, bigger than any bailed-out C.E.O.’s bonus. It’s even bigger than the Obama phenomenon itself. It could maim the president’s best-laid plans and what remains of our economy if he doesn’t get in front of the mounting public anger.

Like nearly everyone else in Washington, Obama was blindsided by the savagery and speed of Daschle’s demise. Conventional wisdom had him surviving the storm. Such is the city’s culture that not a single Republican or Democratic senator called for his withdrawal until the morning of his exit. Membership in the exclusive Senate club, after all, has its privileges. Among Daschle’s more vocal defenders was Bob Dole, who had recruited him to Alston & Bird, the law and lobbying firm where Dole has served as “special counsel” when not otherwise cashing in on his own Senate years by serving as a pitchman for Pepsi and Viagra.

In New York, editorial pages on both ends of the political spectrum, The Wall Street Journal and The Times, called for Daschle to step down. But not The Washington Post. In a frank expression of the capital’s isolation from the country, it thought Daschle could still soldier on even though “ordinary Americans who pay their taxes may well wonder why Mr. Obama can’t find cabinet secretaries who do the same.”

As Jon Stewart might say, oh those pesky ordinary Americans!

In reality, Daschle’s tax shortfall, an apparently honest mistake, was only a red flag for the larger syndrome that much of Washington still doesn’t get. It was the source, not the amount, of his unreported income that did him in. The car and driver advertised his post-Senate immersion in the greedy bipartisan culture of entitlement and crony capitalism that both helped create our economic meltdown (on Wall Street) and failed to police it (in Washington). Daschle might well have been the best choice to lead health-care reform. But his honorable public record was instantly vaporized by tales of his cozy, lucrative relationships with the very companies he’d have to adjudicate as health czar.

Few articulate this ethical morass better than Obama, who has repeatedly vowed to “close the revolving door” between business and government and end our “two sets of standards, one for powerful people and one for ordinary folks.” But his tough new restrictions on lobbyists (already compromised by inexplicable exceptions) and porous plan for salary caps on bailed-out bankers are only a down payment on this promise, even if they are strictly enforced.

The new president who vowed to change Washington’s culture will have to fight much harder to keep from being co-opted by it instead. There are simply too many major players in the Obama team who are either alumni of the financial bubble’s insiders’ club or of the somnambulant governmental establishment that presided over the catastrophe.

This includes Timothy Geithner, the Treasury secretary. Washington hands repeatedly observe how “lucky” Geithner was to be the first cabinet nominee with an I.R.S. problem, not the second, and therefore get confirmed by Congress while the getting was good. Whether or not this is “lucky” for him, it is hardly lucky for Obama. Geithner should have left ahead of Daschle.

Now more than ever, the president must inspire confidence and stave off panic. As Friday’s new unemployment figures showed, the economy kept plummeting while Congress postured. Though Obama is a genius at building public support, he is not Jesus and he can’t do it all alone. On Monday, it’s Geithner who will unveil the thorniest piece of the economic recovery plan to date — phase two of a bank rescue. The public face of this inevitably controversial package is now best known as the guy who escaped the tax reckoning that brought Daschle down.

Even before the revelation of his tax delinquency, the new Treasury secretary was a dubious choice to make this pitch. Geithner was present at the creation of the first, ineffectual and opaque bank bailout — TARP, today the most radioactive acronym in American politics. Now the double standard that allowed him to wriggle out of his tax mess is a metaphor for the double standard of the policy he must sell: Most “ordinary Americans” still don’t understand why banks got billions while nothing was done (and still isn’t being done) to bail out those who lost their homes, jobs and retirement savings.

As with Daschle, the political problems caused by Geithner’s tax infraction are secondary to the larger questions raised by his past interaction with the corporations now under his purview. To his credit, Geithner, like Obama, has devoted his career to public service, not buckraking. But he still has not satisfactorily explained why, as president of the New York Fed, he failed in his oversight of the teetering Wall Street institutions. Nor has he told us why, in his first major move in his new job, he secured a waiver from Obama to hire a Goldman Sachs lobbyist as his chief of staff. Nor, in his confirmation hearings, did he prove any more credible than the Bush Treasury secretary, the Goldman Sachs alumnus Hank Paulson, in explaining why Lehman Brothers was allowed to fail while A.I.G. and Citigroup were spared.

Citigroup had one highly visible asset that Lehman did not: Robert Rubin, the former Clinton Treasury secretary who sat passively (though lucratively) in its executive suite as Citi gorged on reckless risk. Geithner, as a Rubin protégé from the Clinton years, might have recused himself from rescuing Citi, which so far has devoured $45 billion in bailout money.

Key players in the Obama economic team beyond Geithner are also tied to Rubin or Citigroup or both, from Larry Summers, the administration’s top economic adviser, to Gary Gensler, the newly named nominee to run the Commodity Futures Trading Commission and a Treasury undersecretary in the Clinton administration. Back then, Summers and Gensler joined hands with Phil Gramm to ward off regulation of the derivative markets that have since brought the banking system to ruin. We must take it on faith that they have subsequently had judgment transplants.

Obama’s brilliant appointees, we keep being told, are irreplaceable. But as de Gaulle said, “The cemeteries of the world are full of indispensable men.” You have to wonder if this team is really a meritocracy or merely a stacked deck. Not only did Rubin himself serve on the Obama economic transition team, but two of the transition’s headhunters were Michael Froman, Rubin’s chief of staff at Treasury and later a Citigroup executive, and James S. Rubin, an investor who is Robert Rubin’s son.

A welcome outlier to this club is Paul Volcker, the former Federal Reserve chairman chosen to direct Obama’s Economic Recovery Advisory Board. But Bloomberg reported last week that Summers is already freezing Volcker out of many of his deliberations on economic policy. This sounds like the arrogant Summers who was fired as president of Harvard, not the chastened new Summers advertised at the time of his appointment. A team of rivals is not his thing.

Americans have had enough of such arrogance, whether in the public or private sectors, whether Democrat or Republican. Voters turned on Sarah Palin not just because of her manifest unfitness for office but because her claims of being a regular hockey mom were contradicted by her Evita shopping sprees. John McCain’s sanctification of Joe the Plumber (himself a tax delinquent) never could be squared with his inability to remember how many houses he owned. A graphic act of entitlement also stripped naked that faux populist John Edwards.

The public’s revulsion isn’t mindless class hatred. As Obama said on Wednesday of his fellow citizens: “We don’t disparage wealth. We don’t begrudge anybody for achieving success.” But we do know that the system has been fixed for too long. The gaping income inequality of the past decade — the top 1 percent of America’s earners received more than 20 percent of the total national income — has not been seen since the run-up to the Great Depression.

This is why “Slumdog Millionaire,” which pits a hard-working young man in Mumbai against a corrupt nexus of money and privilege, has become America’s movie of the year. As Robert Reich, the former Clinton labor secretary, wrote after Daschle’s fall, Americans “resent people who appear to be living high off a system dominated by insiders with the right connections.”

The neo-Hoover Republicans in Congress, who think government can put Americans back to work with corporate tax cuts but without any “spending,” are tone deaf to this rage. Obama is not. It’s a good thing he’s getting out of Washington this week to barnstorm the country about the crisis at hand. Once back home, he’s got to make certain that the insiders in his own White House know who’s the boss.

[Frank Rich is an op-ed columnist for The New York Times who writes a weekly 1500-word essay on the intersection of culture and news. Rich has been at the paper since 1980. His columns and articles for the Week in Review, the Arts & Leisure section and the Magazine draw from his background as a theater critic (known as "The Butcher On Broadway") and observer of art, entertainment and politics. Before joining The Times, Rich was a film critic at Time magazine, the New York Post, and New Times magazine. He was a founding editor of the Richmond (Va.) Mercury, a weekly newspaper, in the early 1970s. Rich is the author of a childhood memoir, Ghost Light (2000), a collection of drama reviews, Hot Seat: Theater Criticism for The New York Times, 1980-1993 (1998), and The Theatre Art of Boris Aronson (with Lisa Aronson, 1987). Rich is a graduate of the Washington, DC public schools. He earned a BA degree in American History and Literature from Harvard College in 1971.]
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Beyond The Banks
By Thomas L. Friedman

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Visiting Israel, I’ve been peppered with questions from Israelis and Palestinians about where their peace process will fit in among President Obama’s priorities. My guess, I’ve answered, is that President Obama has three immediate priorities: banks, banks and banks — and none of them are the West Bank.

That said, once Obama is able to think afresh about the Middle East, he will find that the Bush team has left an interesting legacy here: 140,000 U.S. soldiers doing nation-building in Iraq and one U.S. soldier — actually a three-star U.S. Army general — doing nation-building in the West Bank. We need a better balance.

Those U.S. soldiers in Iraq can take pride in the recent Iraqi elections, which have strengthened the more secular and centrist parties. But we have to wait and see if the losers in this election take their defeat peacefully and whether the winners can actually produce better governance. The Iraqi elections, though, are a rare example of Arabs getting a chance to build their own future from the bottom up, and I continue to root for them.

Palestinians need the same chance. You can’t have a two-state solution without two states, and today the Palestinian Authority in the West Bank, which still supports a two-state deal, doesn’t have the institutions of a state, particularly an effective police force. Therefore, my hope is that Obama will focus not only on peace plans from the top down, but also on institution-building from the bottom up. The best way to isolate Hamas in Gaza is to build the Palestinian Authority in the West Bank into a decent government with steadily expanding control over its territory.

That’s exactly what the one U.S. Army officer in the West Bank, Lt. Gen. Keith Dayton, is up to. I accompanied him and his little team to Jenin — once the most violent city in the West Bank — to see their work. It was quite a scene: I watched a company of newly trained, proud and professional-looking Palestinian Authority troops, standing at attention, AK-47 assault rifles at their side, listening with obvious respect to the American general telling them: “What you’ve done has done more to advance the Palestinian national project than anything else ... You took care of your people at a difficult time. That is how the security forces of a country behave.”

No, you don’t see that every day.

General Dayton was addressing the Second Special Battalion of the Palestinian National Security Force, or N.S.F. It was trained by the Jordanian police in a program overseen by the U.S. Security Coordinator — a k a Dayton. He was originally assigned to help reform Palestinian security by the Bush team in 2005, but only got the funds to do so after Hamas took over Gaza in 2007. Some 1,600 Palestinian N.S.F. troops have since graduated, and 500 are now in training. Schooled in everything from riot control to human rights, the N.S.F. is the only truly professional force controlled by the Palestinian president, Mahmoud Abbas.

The Israeli Army, originally dubious about the Dayton mission, has come to respect it and is now allowing it to expand to Hebron. What really got Israel’s attention was that during the three-week Israel-Hamas war in Gaza, the West Bank never blew up, largely because N.S.F. troops allowed widespread protests but kept Palestinian demonstrators from clashing with Israeli soldiers.

“General Dayton is our friend,” said Col. Radi Abu Asida of the N.S.F. “Now we have excellent training. Now we have professionalism in our security work. We told the people during the Gaza demonstrations, ‘You can protest, but you must do it in a modern way.’ ”

Unfortunately, funding for Dayton’s work — secured by two farsighted U.S. House members, Nita Lowey and Gary Ackerman — runs out soon. That would be a tragedy. Before the N.S.F. was deployed “there was chaos here,” said Mohammed Abu Bakr, a Jenin wedding shop owner, referring to the security vacuum after the collapse of the Arafat regime. “Everyone wanted to fight with everyone else. Now everything is organized.”

The Dayton mission — a rare bright spot in a broken landscape — is the ground floor we need to build upon. “The issue is not just territory, but how we fill that territory,” said Gidi Grinstein, the president of the Israeli think tank, the Reut Institute. “Jenin is important. This is the beginning of capacity-building, which leads to institution-building, which leads to state-building, which leads to independence.” But the legitimacy of the Palestinian police depends on the peace process moving forward and Palestinians being ceded control, by Israel, over more territory as they prove themselves, he added. “Otherwise, they are seen as a tool to promote the occupation and will be delegitimized and attacked.”

So it is important to have George Mitchell, the U.S. special envoy to the Middle East, steadily pushing the diplomacy from above, but nothing will happen without vastly increasing U.S. efforts from below to help West Bankers build a credible governing capacity. Do that, and everything is possible. Don’t do it, and nothing is possible.

[Thomas L. Friedman became The New York Times' foreign-affairs columnist in 1995. He won the 2002 Pulitzer Prize for commentary, his third (The earlier Prizes were awarded in 1983 and 1988.) Pulitzer for this paper. Friedman's latest book, The World is Flat: A Brief History of the 21st Century, (2005) won the inaugural Goldman Sachs/Financial Times Business Book of the Year award. Friedman received a B.A. degree in Mediterranean studies from Brandeis University in 1975. In 1978 he received a Master of Philosophy degree in Modern Middle East studies from Oxford.]
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Potomac’s Postpartisan Depression
By Maureen Dowd

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Once upon a time, America thought Prince Charming would glide in and kiss her, reviving her from a coma induced by a poison apple of greed, deceit, carelessness, recklessness and overreaching.

But then the prince got distracted, seeing Lincoln in the mirror, and instead gave the kiss of life to a bunch of flat-lining Republican tax-cut fetishists.

Somehow the most well-known person on the planet lost control of the economic message to someone named Eric Cantor.

(And Larry Summers ended up making Henry Paulson seem riveting.)

In his first weeks padding around a White House that still has nails on the walls waiting for new pictures, and phone and e-mail kinks, Barack Obama could not locate the bully pulpit and ended up being bullied.

Republicans, pulled out of their existential lethargy and re-energized by the president’s charm offensive, immediately mounted an offensive against him. Just as Michael Bloomberg learned the perils of cuddling a groundhog when it bit him, Mr. Obama learned the perils of coddling conservatives.

Pete Sessions, a conservative from Waco, Tex., and the chairman of the National Republican Congressional Committee, warned that they could become an insurgency, having learned more about insurgencies “because of the Taliban.” (Yes, that’s the same Taliban that was allowed to regenerate by bumbling Republican leaders.)

Obama advisers are right to crow that the president’s civility to Republicans will be popular with the public. But the carrot-stick ratio was way out of whack. Mr. Obama should have written up a kosher (as in pork-free) bill that Americans could trust — and Republicans couldn’t as easily mock — and jammed it through.

It’s a huge, scary moment, with trillions of dollars and millions of jobs flying out the window. Vice President Joseph Biden, in another Cassandra moment, told House Democrats that even if the White House does everything right, “there’s still a 30 percent chance we’ll get it wrong.”

The president and his aides seemed a bit snow-blinded by the White House, overwhelmed and slow to understand that they were losing the high ground and the whip hand. They couldn’t even get their pick for commerce secretary, the Republican Senator Judd Gregg, to vote for their stimulus bill; he said he would abstain.

Those in the president’s circle were too caught up in more narrow concerns, like how their relationships with the president and the capital were shaking out; whether they could breathe on this new planet with the rarefied air of cool planes and helicopters; and whether W.’s mind-boggling mountain of garbage would trash Democratic candidates in 2010 and doom Mr. Obama to one term.

“I would rather do the right thing and have one term than be mediocre and have two,” Mr. Obama told House Democrats at their Williamsburg retreat Thursday night. The lawmakers had been feeling disillusioned that they were carrying Mr. Obama’s water on the bill, while Obama aides triangulated and promised that the bill would “improve” in the Senate.

Nancy Pelosi told her leadership team that she had told the president, “I don’t mind you driving the bus over me, but I don’t appreciate your backing it up and running over me again and again.”

The Obama wizards’ tactical skills seemed to desert them. The White House often ends up making its inhabitants tone-deaf (or even nuts), but this was an unusually quick trip into the cognitive third dimension.

Asked what he had learned from the Daschle fiasco, one Obama official replied, “Not to rationalize.”

They knew that the choice of Tom Daschle conflicted with the Obama change message, but they preferred to focus on how much the president owed his friend and how good they thought he would be in the job.

They wanted him because he was the ultimate insider and they lost him because he was the ultimate insider. Now Daschle’s punishment for getting too rich with special interests will be to get richer with special interests.

Obama aides call the morass a good wake-up call, and the president seems more aware of how the White House weather can cloud your thinking. Maybe that’s why he keeps trying to pop out to get a breath of fresh air — at an elementary school, at the Kennedy Center, at Camp David.

On Friday, a reporter asked Robert Gibbs if the president was already feeling cooped up.

“He’s a bit of a restless soul,” Gibbs said, laughing. “His idea of a crazy day is to take a long walk.”

A long walk where? somebody asked.

“In solitude and isolation,” Gibbs replied.

President Obama doesn’t need to leave his new home to be isolated. That’s the specialty of the White House. ♥

[Maureen Dowd received the Pulitzer Prize for commentary in 1999, with the Pulitzer committee particularly citing her columns on the impeachment of Bill Clinton after his affair with Monica Lewinsky. Dowd joined The New York Times as a reporter in 1983, after writing for Time magazine and the now-defunct Washington Star. At The Times, Dowd was nominated for a 1992 Pulitzer Prize for national reporting, then became a columnist for the paper's editorial page in 1995. Dowd's first book was a collection of columns entitled Bushworld: Enter at Your Own Risk (2004). Her second book followed in 2005: Are Men Necessary?: When Sexes Collide. Dowd earned a bachelor's degree from DC's Catholic University in 1973.]

Copyright © 2009 The New York Times Company

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Copyright © 2009 Sapper's (Fair & Balanced) Rants & Raves

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