Eco Piggy Lamp from Ariel Rojo Design Studio In America, Joe Barton introduced BULB, the Better Use of Light Bulbs Act, to repeal legislation that set minimum efficiency standards and would phase out incandescent bulbs. He’s quoted in the New York Times: The unanticipated consequence of the ’07 act – Washington-mandated layoffs in the middle of a desperate recession – is one of many examples of what happens when politicians and activists think they know better than consumers … Read the full story on TreeHugger
Continue reading …A young female biochemist has caused a ruckus in the scientific community with her claim that one of the basic elements in the formula that has long been considered to define the building blocks of life may be swapped out—and for arsenic, no less. Felisa Wolfe-Simon made the game-changing discovery in the form of a special kind of bacterium that could put her colleagues on the hunt for different kinds of life forms on Earth and, potentially, elsewhere in the universe.
Continue reading …The House is currently debating a bill extending tax cuts for the middle class only. I am at last seeing some real fight in the Democrats. Rep. Levin is doing a great job correcting every Republican that steps up and claims it’s a tax increase, and one of the more classic moments came when New York Rep. Crowley pulled up a life-size picture of Leona Helmsley and her dog and pointed out that the dog (named Trouble) would receive a tax cut under Republican proposals. You can watch live at CSPAN . I’ll try and post the clip of Rep. Crowley when it’s available.
Continue reading …Julian Assange is a wanted man. Sweden’s Supreme Court is the latest on the list of concerned parties around the globe to go after the WikiLeaks founder, giving an extant arrest warrant a boost on Thursday for rape charges stemming from last summer. The timing, of course, is conspicuous here.
Continue reading …I remember when this story first came out, and it really looked as though Spain would carry through on a war crimes prosecution of Bush and his administration officials who authorized torture. So now we know what really happened, thanks to Wikileaks: The Obama adminstration applied pressure to shut it down. I suppose it’s premature to speculate as to motives, but the continuing reports of torture at Bagram and the Obama administration’s seeming indifference probably had at least a little to do with it. They wouldn’t want to set a precedent that might be used against them: In its first months in office, the Obama administration sought to protect Bush administration officials facing criminal investigation overseas for their involvement in establishing policies the that governed interrogations of detained terrorist suspects. An April 17, 2009, cable sent from the US embassy in Madrid to the State Department—one of the 251,287 cables obtained by WikiLeaks—details how the Obama administration, working with Republicans, leaned on Spain to derail this potential prosecution. The previous month, a Spanish human rights group called the Association for the Dignity of Spanish Prisoners had requested that Spain’s National Court indict six former Bush officials for, as the cable describes it, “creating a legal framework that allegedly permitted torture.” The six were former Attorney General Alberto Gonzales; David Addington, former chief of staff and legal adviser to Vice President Dick Cheney; William Haynes, the Pentagon’s former general counsel; Douglas Feith, former undersecretary of defense for policy; Jay Bybee, former head of the Justice Department’s Office of Legal Counsel; and John Yoo, a former official in the Office of Legal Counsel . The human rights group contended that Spain had a duty to open an investigation under the nation’s “universal jurisdiction” law, which permits its legal system to prosecute overseas human rights crimes involving Spanish citizens and residents. Five Guantanamo detainees, the group maintained, fit that criteria. Soon after the request was made, the US embassy in Madrid began tracking the matter. On April 1, embassy officials spoke with chief prosecutor Javier Zaragoza, who indicated that he was not pleased to have been handed this case, but he believed that the complaint appeared to be well-documented and he’d have to pursue it. Around that time, the acting deputy chief of the US embassy talked to the chief of staff for Spain’s foreign minister and a senior official in the Spanish Ministry of Justice to convey, as the cable says, “that this was a very serious matter for the USG.” The two Spaniards “expressed their concern at the case but stressed the independence of the Spanish judiciary.” Two weeks later, Sen. Judd Gregg (R-N.H.) and the embassy’s charge d’affaires “raised the issue” with another official at the Ministry of Foreign Affairs. The next day, Zaragoza informed the US embassy that the complaint might not be legally sound. He noted he would ask Cándido Conde-Pumpido, Spain’s attorney general, to review whether Spain had jurisdiction. On April 15, Sen. Mel Martinez (R-Fla.), who’d recently been chairman of the Republican Party, and the US embassy’s charge d’affaires met with the acting Spanish foreign minister, Angel Lossada. The Americans, according to this cable, “underscored that the prosecutions would not be understood or accepted in the US and would have an enormous impact on the bilateral relationship” between Spain and the United States. Here was a former head of the GOP and a representative of a new Democratic administration (headed by a president who had decried the Bush-Cheney administration’s use of torture) jointly applying pressure on Spain to kill the investigation of the former Bush officials. Lossada replied that the independence of the Spanish judiciary had to be respected, but he added that the government would send a message to the attorney general that it did not favor prosecuting this case. The next day, April 16, 2009, Attorney General Conde-Pumpido publicly declared that he would not support the criminal complaint, calling it “fraudulent” and political. If the Bush officials had acted criminally, he said, then a case should be filed in the United States . On April 17, the prosecutors of the National Court filed a report asking that complaint be discontinued. In the April 17 cable, the American embassy in Madrid claimed some credit for Conde-Pumpido’s opposition, noting that “Conde-Pumpido’s public announcement follows outreach to [Government of Spain] officials to raise USG deep concerns on the implications of this case.” Still, this did not end the matter. It would still be up to investigating Judge Baltasar Garzón—a world-renowned jurist who had initiated previous prosecutions of war crimes and had publicly said that former President George W. Bush ought to be tried for war crimes—to decide whether to pursue the case against the six former Bush officials. That June—coincidentally or not—the Spanish Parliament passed legislation narrowing the use of “universal jurisdiction.” Still, in September 2009, Judge Garzón pushed ahead with the case. The case eventually came to be overseen by another judge who last spring asked the parties behind the complaint to explain why the investigation should continue. Several human rights groups filed a brief urging this judge to keep the case alive, citing the Obama administration’s failure to prosecute the Bush officials. Since then, there’s been no action. The Obama administration essentially got what it wanted. The case of the Bush Six went away.
Continue reading …Click here to view this media It looks like Digby is as tired of Mr. Wingnuts John Avlon’s hackery on CNN as I am. As she noted Avlon and the other Villagers on the panel of John King’s show are just desperate for our political class to just get along, or in other words for the Democrats to capitulate to the demands of Republicans. BTW, the “centrist” ex-Giuliani speechwriter John Avlon was on CNN just now, wringing his hands and arguing ad nauseam that all the American people want is for everyone to just stop the fighting. John King was very sympathetic and agreed. Is that what all those Republicans who voted for far right Tea Party candidates want? What I heard was that want their politicians to fight as hard as possible for their agenda. Liberals want the same thing. The only constituency that seems to be upset by the fighting is the Village constituency which is obviously quite agitated to be wasting time dealing wit such silliness as unemployment insurance and social security cuts and tax breaks for millionaires. Who cares about that trivia? There are issues worth getting passionate about, like the horror of unauthorized presidential fellatio or the horror of unauthorized leaking of documents to the press, but arguing over things that affect Real Americans is the last thing Real Americans want. Just ask the Villagers, our self-designated celebrity millionaire stand-ins. They know us better than we know ourselves. I’m also as sick as she is about seeing unemployment extensions for the most vulnerable among us being held hostage by the Republicans in exchange for tax cuts for the rich. They’ve already let them expire. I would guess nothing less than an extension of the Bush tax cuts for two years just in time to muck up the 2012 elections will be demanded to extend those unemployment benefits. Sadly there are probably enough rotten Blue Dogs that will vote with Republicans to make sure the rich still gets theirs and that the ransom being demanded from the working class and the poor is paid. And then we get to look forward to having this fight again just in time for the presidential elections if they give them a two year extension as a “compromise”. Good job Democrats! I’m wondering where I can get a job to give you such politically savvy advice and if it includes a pension? Full transcript below the fold. KING: Yes, it really happened, really happened right here in Washington, D.C. of all places, a grown-up conversation in which Democrats and Republicans acknowledged real and important philosophical differences but agreed to try — to try to find common ground. Well, now comes the hard part. Putting today’s tone to the test on some big issues from tax cuts and spending and deficits to a nuclear arms treaty and the question of whether gay Americans should be allowed to serve openly in the military. And, of course, by sundown there were cracks in the kumbaya spirit. So count me as skeptical, but let’s test this talk of a new beginning issue by issue and here to help CNN contributors Erick Erickson and John Avlon and here with me in Washington Democratic strategist Cornell Belcher, senior political analyst Gloria Borger and senior congressional correspondent Dana Bash. Dana Bash to you first and of course not all spouses have differences, I just want to make that clear. But what’s the first test out of the box? Is it tax cuts? DANA BASH, CNN SENIOR CONGRESSIONAL CORRESPONDENT: Absolutely, it is tax cuts. What they did today is they agreed to at least put together a small group of lawmakers and members of the administration to have negotiations on tax cuts. And I was just told that the first meeting is actually going to be 10:00 a.m. tomorrow morning, so they’re going to start out of the box. And you know at first I thought, well, maybe a Republican’s being put on the spot here or is this kind of kicking the can down the road and not having the president himself and the leaders make the tough decisions. And I talked to many Democrat and Republican sources who say you know what, this is kind of the way it’s supposed to work. It’s OK. You get people in a room who are in power to make decisions and you do it. It is not going to be easy. Whether or not they can do it is still a big question mark because the difference is as you heard from both of them today philosophically especially on tax cuts are huge, but this is the first test. KING: So let’s listen. Here’s the president after the meeting. He says it was great to talk. It was great to start to build the relationship. But yes, on tax cuts, we have a disagreement. (BEGIN VIDEO CLIP) OBAMA: Here we disagree. I believe and the other Democrats who are in the room believe that this would add an additional $700 billion to our debt in the next 10 years. And I continue to believe that it would be unwise and unfair particularly at a time when we’re contemplating deep budget cuts that require broad sacrifice. (END VIDEO CLIP) KING: On the floor of the United States Senate, though, one of the men in the meeting, the Republican Leader Mitch McConnell thinks differently. (BEGIN VIDEO CLIP) SEN. MITCH MCCONNELL (R-KY), SENATE MINORITY LEADER: It should be what’s good for the economy and for the American people. And if we leave the politics aside, if we look at the facts, the answer here is simple. No tax hikes on anybody, no tax hikes on anybody period. (END VIDEO CLIP) KING: So if yes, they’re going to build this new relationship of trust. Yes, they’re going to meet more often, but — GLORIA BORGER, CNN SENIOR POLITICAL ANALYST: Well, look, I think what this is probably leading to — and Dana knows much more about this than I do — is some kind of a temporary extension of tax cuts, which is perhaps what some Democrats could — could sign on to. They don’t want the tax cuts on the wealthy to be permanent, but they might be able to in this lame-duck session at least agree to that. And the Republicans I spoke to today said that they think that they may actually get to that point in the lame duck. KING: So a temporary deal punted to the next presidential election? Is that leadership? CORNELL BELCHER, DEMOCRATIC POLLSTER: Well no, but it is about sort of politics does come into play. And it was interesting that even in the Kumbaya sort of moment that the speaker (INAUDIBLE) speaker (INAUDIBLE) said that we have different views on government, which by the way is a political dig. UNIDENTIFIED FEMALE: You think. BELCHER: — because he’s basically saying we’re for small government and they’re for big government in his all sort of political way, but look — KING: But he said it politely. BELCHER: He did say — he did say it politely. But look — I mean look there is going to probably be some compromise on this. However, it’s very interesting what the current speaker said about this. And she said I’m willing to be the lone voice on this, sort of fighting for tax — for the middle class tax cuts because guess what? This is going to be a political issue now because — we’re going to — on our side we’re going to say you know what? We’re fighting for political — for tax cuts for working people, they’re fighting for tax cuts on the rich. So the politics doesn’t really stop. KING: Let me show you more the map before we bring Erick and John in for more of the politics. I just want to show a little bit of the math here when it comes to tax cuts — if we can get my friend here to cooperate. Well my — there we go. Tax cuts come up, here’s what the president wants. Renew the tax cuts — these are the Bush tax cuts passed in 2001. The president wants to renew them for individuals making $200,000 a year or less or couples making $250,000 or less. Even the president’s plan would add $3 trillion to the deficit over the next 10 years. Here’s what the Republicans want, just extend all the tax cuts permanently. That would add $4 trillion to the deficit over the next 10 years, so we’re not talking chump change here. This is $1 trillion; even the president’s plan is $3 trillion. Erick Erickson, these negotiations will begin, as Dana notes, the first meeting is tomorrow. The Senate will be represented by John Kyl, the number two Republican in the Senate a conservative from Arizona. And yet you tweeted this today. Get ready to get screwed on taxes. Senate GOP chooses Senator Kyl to handle negotiations. He’s horrible on strategic thinking. ERICK ERICKSON, CNN CONTRIBUTOR: Senator Kyl posits (ph) himself as a good strategic thinker, but I’ve never known him to be a good strategic thinker and that’s a problem. The Senate GOP typically gets confused on tactics and strategy and sometimes outthinks themselves. They like the Democratic politicians in Washington have two favorite games, spin the bottle with K Street and kick the can with other politicians. They’re going to kick the can with this policy. UNIDENTIFIED FEMALE: So you think temporary is kicking the can? ERICKSON: I absolutely think they’re going to do something temporary. We’ll have this fight again in two years. KING: John Avlon, as someone who tries to study the middle of American politics, both sides today clearly thought it was important for a tone — for tone to come out and say, hey, we’re going to try to get to know each other; hey we’re going to get together more often. We’re going to try to build the relationship of some level of trust. The substance is hard, but is that in and of itself an important step? JOHN AVLON, CNN CONTRIBUTOR: It is an important step and it’s a recognition of what the American people overwhelmingly want. There’s a beltway cynicism about bipartisanship. Remember Dick Armey’s famous line a decade ago where he said bipartisanship is another name for date rape. There’s a fundamental distrust that is so cynical to the ears of the vast majority of the American people who expect us to elect people and then find a way to work together. Find a way to define that common ground. And on taxes it’s possible as well whether it’s a temporary extension or a proposal being floated by Senator Schumer and McCaskill to raise that top rate to a million, which I think would actually achieve a genuine substantive compromise and make it much more difficult for Republicans to argue that those folks who make over $1 million a year shouldn’t have slight tax increase in order to help delay some of the deficit costs. These are all negotiations, but it’s exactly the right tone; it’s what the American people want. And I really applaud them for both sounding like — (CROSSTALK) ERICKSON: You know John I would think it’s just the opposite though. I think most Americans understand that when they hear bipartisanship they’ve got to bend over and get ready. AVLON: No, Erick, what are you talking about, man? ERICKSON: Well every time Republicans and Democrats compromise on something, they compromise in favor of bigger government. They rarely ever compromise in favor of getting rid of government. That’s the problem we’re going to have with this Deficit Commission report coming out, as well. (CROSSTALK) BELCHER: But really quickly, John, as the guy who actually earns a living from politics doing consulting, let me take up for politics for a second because this is actually really important stuff. There is a worthwhile fight to have, to sort of — for Democrats to say, you know what? Too much has been going to the rich; I want to fight for the middle class. And on the same side of the Republicans, you know there’s a fight worth having, not partisans — (CROSSTALK) BELCHER: — but that’s a fight — that’s a fight worth having on those issues, so politics isn’t all bad. There is some — KING: No politics is good. Politics is good. I’m a big fan of politics. I make my living off politics too on a different side than you do. I think it’s great. I do think it would be nice if they would trust each other to have some relationship — disagreeably, I guess. (CROSSTALK) KING: Maybe that’s too much to ask — (CROSSTALK) BASH: They are going to have more meetings and they are (INAUDIBLE) potentially go to Camp David. KING: Camp David, yee-haw — BASH: No, I know exactly. It sounds like — it sounds like (INAUDIBLE) big deal, but the fact of the matter is it is a big deal for these people who do not, as you said very aptly have any relationship. KING: And so here’s the question, if the leaders agree to at least have a more polite and civil relationship, which I think all Americans could be in favor of. We’ll see what the substance is if people can disagree about that. But maybe they can do it agreeably, that would be one thing. How far down does the responsibility for bipartisanship go and I ask in the context of this. Joe Barton, many of you remember here at home. He is the ranking Republican of the House Energy Committee. I’m getting the name of the committee wrong. He’s the one who said that — essentially apologized to BP for what was happening during the oil spill. He is campaigning to be chairman of that committee. He faces some opposition. I want to show you the last slide from a slide show he sent around to his colleagues where he said Speaker Boehner is our Dwight Eisenhower in the battle against the Obama administration. Majority Leader Cantor is our Omar Bradley. I want to be George Patton. Put anything in my scope and I will shoot it. Using militaristic terms, it’s an interesting campaign argument, but if we’re going to have this new let’s try to get along and disagree agreeably, that’s not that — (CROSSTALK) UNIDENTIFIED FEMALE: That’s the problem. UNIDENTIFIED MALE: There’s no desperation. (CROSSTALK) ERICKSON: You know Joe Barton is not going to become chairman of the House, Energy, and Commerce Committee. They’re not going to give him that waiver particularly after making such a big stink over him not being the chairman when they got back because of the BP comment. It’s going to be Fred Upton or someone else, probably not even Upton. UNIDENTIFIED FEMALE: Right. (CROSSTALK) ERICKSON: It’s not going to be Barton. AVLON: Because it would be a dumb decision on the BP side alone. But the point is, is that we’ve actually become desensitized. This language about the war against the Obama administration and in this case, you know obviously, it’s a little unhelpful that Barton by identifying Republican leaders as U.S. Army generals de facto makes the Democrats Nazi Germany. But look that is a part of the tone of the problem (INAUDIBLE) stop bipartisanship, a deep cynicism, a hostility and anger, an identity, a tendency to demonize people that disagree with us and that’s what we need to overcome. BORGER: But he’s appealing to people in his own party, you know. UNIDENTIFIED MALE: Yes. BORGER: There are 34 new House Republicans who have never held elective office before. And they got elected by hating Democrats, hating deficits, hating Obama, a lot of them. UNIDENTIFIED MALE: How about — how about opposing — (CROSSTALK) BORGER: I think that he was trying to appeal to those people in the Republican caucus. (CROSSTALK) BELCHER: Real quickly, but the incoming speaker — (CROSSTALK) BELCHER: But the incoming speaker has got the tiger by the tail here on this because at one time, unlike Mitch McConnell in the Senate who by the way doesn’t actually have to pass anything, he can continue to play politics, the Republicans are now in charge of the House, they actually have to pass something. They actually do have to reach across and compromise.
Continue reading …Eric Cantor is such a patriot. He’s so patriotic he’s a sking us all just to listen — only LISTEN — to how conservatives want to “give power back to the states” via a federal ” repeal amendment “, recently introduced in the Virginia assembly. The [sponsors] say the plan is a response to the federal overreach created by “two ‘progressive’ constitutional amendments adopted in 1913″ — the 16th Amendment creating a federal income tax and the 17th Amendment allowing for the direct election of U.S. Senators, which were previously appointed by state legislatures. Here’s how their plan works: We elect a President and a Congress. Then we let them write their bills, debate their bills, pass their bills. After the President signs it into law, states can repeal it if 2/3rds of them agree. The states can blow it up and nullify it, subject to an override of 2/3rds of Congress. Round and round and round she goes…just one big endless nonstop loop. It’s a conservative wet dream, because nothing could ever get done. No business of government could ever be transacted as a nation, which means even less standing in the global arena and more grandstanding at home. Load a few more tea partiers into state and national governments and we can look forward to gridlock after gridlock after gridlock. Which is, of course, a home run for conservatives.
Continue reading …That didn’t take long. The New York Times is already forwarding left-wing and Muslim arguments alleging “entrapment” in the terror-plot case in Portland against Mohamed Osman Mohamud, caught in a sting operation planning to kill people at a Christmas tree-lighting ceremony. On Tuesday, Eric Schmitt and Charlie Savage reported “ In U.S. Sting Operation, Questions of Entrapment .” The arrest on Friday of a Somali-born teenager who is accused of trying to detonate a car bomb at a crowded Christmas tree-lighting ceremony in Portland, Ore., has again thrown a spotlight on the government’s use of sting operations to capture terrorism suspects. Some defense lawyers and civil rights advocates said the government’s tactics, particularly since the Sept. 11 attacks, have raised questions about the possible entrapment of people who pose no real danger but are enticed into pretend plots at the government’s urging. read more
Continue reading …enlarge I was talking to a friend today who’s moving with his wife and kid to his father-in-law’s house — which is already in foreclosure. “What if the sheriff comes and changes the locks while you’re gone?” I said. “Then I guess we have to move,” he said. “At least we can save a couple of months’ rent, if we’re lucky.” He lost his job a couple of months after I lost mine, and his unemployment ran out, too. Unlike me, he has a masters degree, and school loans. Fortunately for them, his wife’s still employed. One of her relatives just offered them a car, but they don’t have the $75 to change the title. And the thing is, they’re not at all unusual. So why are the Republican Lords and Ladies of the Senate so blithely ignoring the plight of the unemployed? How can they be so indifferent, or so uninformed? Not only are they refusing to help them by extending unemployment benefits, holding them hostage to get yet another massive tax break for the rich, they also insult them by accusing them of being too lazy to work. Shame on them! Oh, I forgot — they have no shame. If the Democrats had any spine at all, they’d let the tax cuts expire and let the Republicans deal with the fallout: Marie Roth said she fell behind on house payments when Congress spent nearly two months dithering over a reauthorization of extended unemployment benefits last summer. Now that lawmakers are dithering again, she’s worried she’ll lose the house. “I’m trying not to freak out. Just kinda praying and hoping for the best,” Roth, 40, told HuffPost. “I keep looking for work and it’s just not happening. There’s nothing there.” Roth said she’d worked all her life when she lost her job as a property manager in June 2009, two months after the birth of her daughter, Alannah, and three months after she bought a home in Hemet, Calif. She said she’s currently receiving unemployment benefits under the fourth “tier” of the Emergency Unemployment Compensation program created by Congress in 2009 to fight the worst recession since the Great Depression. She said her tier ends right before Christmas, and if Congress doesn’t act, she’ll be ineligible for the 20 weeks of benefits available in California under the federally-funded Extended Benefits program, which picks up where EUC leaves off. Together the programs provide up to 73 weeks of benefits on top of 26 weeks of state benefits. Both programs lapsed on Wednesday because Congress has not reauthorized them. The Labor Department estimates that 800,000 people will be dropped from EB within a week, and another 1.2 million will be dropped from EUC by the end of the month (though people on EUC, like Roth, will get to finish benefits in their current tier). Over the summer, Roth was one of 2.5 million people who had their benefits interrupted while the Senate wrangled over the reauthorization. One Democratic senator told HuffPost Tuesday that another lengthy lapse is entirely possible. “We’re used to having a series of votes on this before we get it done,” Sen. Robert Casey (D-Pa.) said. Roth is used to it, too. She thinks Congress is oblivious to the havoc it creates for people laid off through no fault of her own such as herself. “I think they understand but they just don’t care,” she said. “They care more about the issues that affect them, like the Bush tax cuts.”
Continue reading …enlarge Christmas has come early this year as the Fed opened its books to show us just how many different companies it bailed out during the great crash of 2008. If you’re looking for evidence that America’s “free market” system is nothing but a pathetic joke, you won’t get any better than this. Let’s git ‘er started! Actually, before we get to the Fed, we should really examine this amazing quote from Jamie Dimon, CEO of JP Morgan and all-around dirtbag: The day before, “60 Minutes” broadcast an interview with Obama in which he referred derisively to “fat cat” bankers. To Dimon, who earned $16 million for 2009 — all but $1 million of it in long-term stock incentives — the slap was the sort of broad-brush slur he was hearing too much of on all sides. He reminded the president: “President Lincoln could have denigrated all Southerners. He didn’t.” No, he didn’t denigrate Southerners; he just sent a bunch of troops down there to bayonet them and burn their cities. And to me, that seems a lot worse than being called a nasty name. But that’s the thing about narcissists — they’re stunningly insecure people who get comically angry and upset whenever anyone dares to challenge their sense of self-worth and accomplishment. Dimon, like the rest of his dirtbag compatriots, seem completely oblivious to the horror and ruin they have caused for millions of people around the world. If he’s so upset at being called evil all the time, maybe he should work in a less evil profession. Now onto the Fed’s dirty deeds! This headline pretty much says it all : Fed made $9 trillion in emergency overnight loans Yeah, yeah, a lot of the same loans were counted multiple times as separate loans because the banks were rolling them over . But even so. I mean, day-yum. Next:If you thought the Fed was only providing an emergency lending window to “too-big-to-fail” financial institutions, well, you got a big surprise coming : The Federal Reserve released documents Wednesday showing that its efforts to help stabilize the markets at the height of the financial crisis reached far beyond Wall Street and deep into the economy. The disclosures reveal the extent that corporations relied on the Fed for the money to pay supplies and make weekly payroll. The crisis in the commercial paper market, the documents show, was more extensive and lasted longer than was previously known. Even bedrock corporations like Caterpillar, General Electric, Harley Davidson, McDonald’s, Verizon and Toyota depended on a program that supported the market for commercial paper — the short-term i.o.u.’s that corporations use. During the worst moments of the crisis, in the fall of 2008, even creditworthy corporate borrowers found this source of financing had dried up, and had to turn to the Fed. While most of the Fed’s commercial paper purchase were made in the first few weeks after the program opened on Oct. 27, 2008, the central bank had to buy nearly as much in January 2009 and only slightly less in March 2009. Indeed, the Fed was still supporting the market for commercial paper well into the summer of 2009 — even as the recession officially came to an end. Gee and all this time I thought American corporations were the absolute bestest in the entire world because they were run by rugged individualists who deign to use their Galtian superpowers to provide the rest of us poor fleshbags with jobs. Why, if Ayn Rand were still alive (and thank God she’s not, she was a horrible human being), she’d condemn the whole lot of them as LOOTERS . Wall Street, of course, were the biggest looters on the block , as they always are: Wall Street was a heavy user of the Federal Reserve’s extraordinary credit facilities during the financial crisis, Fed data released Wednesday showed. Goldman Sachs Group Inc., for instance, tapped the Fed’s Primary Dealer Credit Facility 84 times. Morgan Stanley borrowed from the Fed’s Primary Dealer Credit Facility 212 times between March 2008 and March 2009, an indication of just how close Wall Street’s second-largest investment bank came to the brink of collapse during the financial crisis. The Fed created the Primary Dealer Credit Facility, or PDCF, to provide discount window loans to investment banks, a privilege previously reserved for more tightly regulated commercial banks. Eventually both Goldman Sachs and Morgan Stanley were granted bank-holding-company status. Commercial banks also were big users of the facilities, often through their investment-banking arms. Citigroup Inc. used the Primary Dealer Credit Facility almost daily through its investment-banking unit, borrowing as much as $17.9 billion in late November 2008, around the time the government stepped in to prevent Citi’s cardiac arrest. The use tapered off in April 2009. Bank of America Corp. used the PDCF nearly every trading day from Sept. 18, 2008, to May 12, 2009, more than 1,000 times in total. The bank’s single biggest use of the facility was for $11 billion in October 2008, and seven times it took more than $10 billion at a time. Bank of America had to run to the Fed trough nearly every day for more than half a year ??? The term “Zombie Bank” doesn’t even begin to describe BofA. For you Buffy fans out there, I think the only true way to describe BofA is a super-powerful ” Turok-Han Bank.” Goldman, of course, is the First Evil . Here’s another good detail from Zach Carter : enlarge The Fed accepted a total of $1.31 trillion in junk-rated collateral between Sept. 15, 2008 and May 12, 2009 through the Primary Dealer Credit Facility. TARP was nothing compared to this. Anyone suggesting that the Fed’s “emergency lending” facilities are just part of macro or monetary policy is kidding themselves. The Fed refused to accept junk-rated collateral until Sept. 15, 2008. When it became clear that Lehman was going off the rails, they started accepting junk-rated collateral– even from Lehman Brothers itself! That makes it very clear that the Fed was bailing out these firms in the midst of a crisis. They made a conscious decision to lower their lending standards in order to save big Wall Street firms with no strings attached. You know your sketchy neighbor Jimmy who’s always begging you to borrow $.75 for a bus fare and who then offers you a plastic bag full of his anal hair as collateral when you turn him down? Remember how you always wondered, “Who would be insane enough to take Jimmy up on that deal?” Well, now we know who: the Federal Reserve. On teh Twitter, Matt Stoller asks the most obvious question: What happened to all the anal hair bags junk securities that the Fed accepted as collateral? Atrios sums up perfectly why the Fed’s actions made no sense policy-wise. Basically, the “banking” system in this country no longer exists as an industry designed to move capital from savers to borrowers. Instead, it’s just a damn gambling casino. But our elected public officials seem to think that these guys are Indispensable Men despite the fact that they, uh, destroyed the entire world. This is all particularly galling (Galting?) when you remember stuff like this is going on: Unemployed workers whose federal jobless benefits began lapsing Wednesday will probably have to wait until mid-December for them to restart while congressional lawmakers iron out a deal. With House and Senate leaders aiming for a Dec. 17 adjournment, the most likely scenario during the lame-duck session is for lawmakers to complete the extension of unemployment benefits as part of a larger legislative package, such as a measure dealing with the expiration of the Bush-era tax cuts, shortly before the 111th Congress leaves town for the last time, sources tell The Hill. Corporate America gets an endless bailout. Workers get bent. We have a remarkably evil political class in this country in case you haven’t noticed. But hey, at least Paris Hilton will get to keep her precious, precious tax cut!
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