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Doug Smith has a good piece over at Naked Capitalism about the $88 million budget cut for HUD housing counselors, calling it “a stiletto in the back of sane housing markets”: Do the math. The market has too much supply and too little demand. The trends point to even worse un-affordability down the road – meaning more supply and less demand. So, as said, even the empirically wrong-headed extend and pretend strategy requires efforts aimed at reversing instead of exacerbating this picture. Among other things, reduced housing supply means, as Yves has repeatedly pointed out, doing principal modifications that are actually affordable – which, in turn, requires a new, separate underwriting effort. And, the same applies on the demand side: only careful underwriting leads to affordable, sustainable purchases – and the asset values that go with that. The banks do not know how to do this work. Nor, as long as they seek usurious rents, will they ever learn. But non-profit affordable housing groups do know how to do this work . They  know how to prepare people to buy homes that will remain affordable. They know how to help people find affordable solutions to avoiding foreclosure and staying in homes. And, finally, the dedicated, professional foreclosure counselors know how to help people who cannot afford to stay accept that reality and find the most humane route out of their homes. Efficiency, as we’ve come to learn, is not part of the efficient market hypothesis. Unsustainable and predatory returns grounded in ignoring the balance sheet not to mention tail and even non-tail risks – yes, those are part of the efficient market hypothesis. But efficiency itself? Not so much. But the self-serving proponents of this false theory remain in control. So, instead of rational, efficient capital finding its way to high performing organizations who know how to prepare and underwrite home ownership that avoids a plague of delinquency and foreclosure, our purveyors of capital prefer the casino, come what may. As a result, high performing groups like the excellent non-profit housing counselors –groups with strong track records of low delinquency and foreclosure — depend on government funding and private charity. Yet, the grown ups in government now stupidly endanger many of these groups instead of providing even more support for their economy-saving efforts. It is an upside down world. Apologists for Obama and the Congress often speak soberly about taking scalpels to budgets as part of shared sacrifice and tough decisions. In this as so many other cases, that is arrogant and ignorant nonsense. These decisions affecting less than one one-thousandth of one percent of the federal budget are not ‘tough’ – at least on those who make them. Which means there’s nothing shared by the decision makers in the sacrifices that will now get worse. Finally, these are most certainly not scalpels. They are stilettos in the backs of everyday Americans and the people of good performing organizations who serve them — who see and treat them as customers instead of income-and-asset targets to be strip-mined. But, then, the ill-got profits from strip mining are more likely than the meager, shrinking resources of everyday consumers to find their way into the political war chests of a post-Citizens United oligarchy.

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Bozell Column: David Brooks, You’re Fired

Conservatives who really wanted to see at least a spending “haircut” for NPR or public broadcasting in the underwhelming budget deal for 2011 might have suggested at least some symbolic victory for conservatives. Here it is: Fire David Brooks as the alleged conservative or Republican “counterpoint” on PBS and NPR on Friday nights. We could hire Donald Trump to announce it from the boardroom. Or keep him, but banish forever, for once and for all, the notion that he is a man of the Right. After President Obama’s budget speech at George Washington University, Brooks wrote a column for The New York Times declaring: “It doesn't take a genius to see that Obama is very likely to be re-elected.” Republicans may try to reform entitlements, but “voters, even Republican voters, reject this.” Obama “hit the political sweet spot with his speech this week. He made a sincere call to reduce debt, which will please independents, but he did not specify any tough choices.” Forget for a minute how cynical that sounds: the “genius” makes vague promises of spending reductions while in reality he delivers the greatest deficits in history – by far. Forget about the how the speech has actually played in America: his Gallup approval rating dropped to 41 percent, with a 35 percent approval from independents. The new ABC/Washington Post poll finds 55 percent disapproval of Obama from independents. Let’s just focus on how Brooks aims to please his bosses at the New York Times – and let’s not forget his check-signers at NPR and PBS. What results is the usual rigged liberal point-and-point, instead of a point-counterpoint. On Friday’s “All Things Considered,” NPR anchor Robert Siegel began, “David Brooks, it is still a long way until November 6th, 2012, but you effectively called the election for Barack Obama.” Brooks joked: “I'm going to sleep. It's all over.” Siegel and E.J. Dionne, the liberal half of NPR’s Friday pundit duo, laughed. How very….grand…it all is. There was no criticism for Obama on this panel, just talk of his mastery. Brooks also said Obama accomplished “I don't know what the trifecta plus one is — a quad-fecta.” The NPR anchor insisted, “Oh yeah. It was a tetra-fecta.” Brooks added, “It was sort of a master stroke.” The only sour note Brooks could sound was that Obama sounded partisan. When Dionne insisted Obama whacked Republicans without sounding angry, Brooks demurred: “He did call his opponents un-American. I mean, he did sound like Michele Bachmann at times.” That’s a liberal put-down for you: He sounds like Michele Bachmann. Then came his weekly chat spot on the “PBS NewsHour,” where once again, Brooks bravely told the PBS executives what they wanted to hear, rehashing his column about how the Republicans are right about the sustainability of entitlements, but Obama was “absolutely right to jump all over the Republicans” and offer a “plan” full of air. Obama was masterful: “I thought, politically, he did a very effective job of demonizing the Republicans, raising the parts of their program that are very unpopular, and then appearing responsible, and maybe putting us on a path to some sort of fiscal responsibility, but not really specifying how.” This allowed another moment of blissful journalistic levitation for the liberals. Jim Lehrer asked liberal Mark Shields: “Do you agree the president did an effective job?” Shields replied: “I think the president did a remarkable job.” Brooks insisted, as usual, that there will be need to be shared sacrifice, from the middle class and from senior citizens, to which Lehrer replied: “But the president and Secretary Geithner on this program that same night said, look, if there is going to be deficit reduction, you’re not going to do it without raising taxes.” Brooks agreed that was “absolutely right.” Republicans were wrong. Lehrer said the Republicans said Obama’s speech was “class warfare, that’s unfair.” Brooks replied: “Yes. And, here, I think they’re wrong. I do think we have to raise taxes on the top 1 percent. I think we have to have a big tax reform that raises revenue…. But you have got to raise revenue across more than just the rich.” The Lehrer interview wrapped up with Brooks and Shields running down the Republican field for being an incredibly weak field of challengers to President Masterstroke. Anyone who wonders why conservatives and Republicans are so disgusted with the tilt of public broadcasting (and its sedate, self-satisfied civility) should begin with the notion that David Brooks is “balance.” If liberals weren’t cowards who feared losing TV debates, they’d hire a real conservative to engage in some serious Friday night discussions on PBS and NPR.

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First Lady’s Plane Came Too Close to Cargo Jet

Federal aviation officials say a plane carrying first lady Michelle Obama aborted a landing Monday after coming too close to a military cargo jet. The FAA is investigating the incident as a possible error by controllers. (April 19)

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Darren Criss Humbled by ‘Glee’ Success

Darren Criss has become the breakout star of ‘Glee’ season 2. The actor talks about his role as Blaine Anderson on the hit show. (April 19)

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Da-da-da-da-da-DA… Charge! Every time you hear that anthem, Bobby Kent thinks he should get paid. The 62-year-old composer says he invented and copyrighted the familiar refrain under the name Stadium Doodads while he was music director for the San Diego Chargers back in 1978. Now, he’s suing every single pro…

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Narconon Drug Prevention Specialists Say 420 Events Pose New Problems

LOS ANGELES, Calif. (SEND2PRESS NEWSWIRE) — April 20th signals 420 events all over the world. Perhaps not as well known as other observances, the 20th day of April at 4:20 in the afternoon is the signal for cannabis users to gather in parks, on campuses and other locations to smoke pot publicly and otherwise flaunt laws against the drug, says Narconon. Broadcasting platform : YouTube Source : Send2Press Newswire Discovery Date : 20/04/2011 01:09 Number of articles : 5

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Narconon Drug Prevention Specialists Say 420 Events Pose New Problems

LOS ANGELES, Calif. (SEND2PRESS NEWSWIRE) — April 20th signals 420 events all over the world. Perhaps not as well known as other observances, the 20th day of April at 4:20 in the afternoon is the signal for cannabis users to gather in parks, on campuses and other locations to smoke pot publicly and otherwise flaunt laws against the drug, says Narconon. Broadcasting platform : YouTube Source : Send2Press Newswire Discovery Date : 20/04/2011 01:09 Number of articles : 5

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US Aims at Deadliest Drug Problem: Painkillers

The White House is stepping up efforts to stop America’s deadliest drug-abuse problem: highly addictive prescription drugs. They are killing more people than heroin and cocaine combined as they foster a slew of illegal pill mill clinics. (April 19)

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US Aims at Deadliest Drug Problem: Painkillers

The White House is stepping up efforts to stop America’s deadliest drug-abuse problem: highly addictive prescription drugs. They are killing more people than heroin and cocaine combined as they foster a slew of illegal pill mill clinics. (April 19)

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McDonald’s Hiring Day Draws Crowds, High Hopes

McDonald’s Corp. went on the offense Tuesday against critics who complain that it’s a lousy place to work. The world’s largest hamburger chain held its first National Hiring Day and was awarded with a strong response from job seekers.

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