OBAMA - Day One- Sorta

To quiet the paranoid and insane the president retook the oath office office. Perhaps Chief Justice Roberts used a script this time. He screwed up last time. And it is only 35 words. Mark it down to the Chief's hubris.

Fist day in office: no torture, transparency in government. George Mitchell as Mid-East envoy. FOIA executive order. closing CIA secret prisons. freezing senior staff salaries. Rules against conflicts of interest and revolving door service between government and lobbying.

Not bad for "day one."

Change you can believe in. I'm impressed. My hope for a better country increases.

Did you see Moammar Kadaffy's op-ed piece in the New York Times today where he calls for a one state solution in Israel-Palestine, an Israstine? I was struck by his almost reasonable tone, his sense of place for Jews , as well as his great degree of naivete. But still, it was a worthy effort from someone who once inhabited Bush's "Axis of Evil". I would love to talk to him about his change of direction from terrorist supporter to a visionary of peace. Remember, this is a guy Reagan tried to kill.

There is always hope. And where hope exists the possibilities are endless.

Have faith. Work hard.

Inauguration Thoughts

I still believe Obama's speech was lackluster but when you consider how momentous this day was, could any speech live up to the occasion?

Obama's speech was of a perfect length. Americans are in no mood for a reprise of William Henry Harrison's oratory.

What the hell was that "poem"? I know what she was trying to do, but she did not carry it off with skill or any degree of emotion. Grade of "F", Teach!

I enjoyed Yo Yo Ma and Itzack Perlman's performance. I was wondering how these musicians were able to finger their instruments in the cold.

Barack Obama can not change the world overnight.Heck, the only thing he can change overnight is his underwear. But I feel confident that we have a president who has a great degree of political acumen, a matching amount of political capital to spend, is capable of analyzing the condition of this country, and that he can put forth a full effort to solve these problems. We are all in a better place tonight.

The stock market dropped more than 300 points today. Every passing day proves the market movers and shakers are less intelligent than the dirty water hot dog vendors on the sidewalk outside the NYSE.

I hope Obama's first executive order bans those endless telephone voice mail systems with the endless loops designed to prevent you from talking to a real, live person.

Obama's election proves that the United States is not a racist country, but do not doubt that there still are plenty of racists out there.

I hope Obama's election lifts the vision of countless black children who mistaken thought that education and proper speech was too white and not "keepin' it real". I hope the kids pull up their pants, turn off the hip hop and open a book. I hope some of them think that they can be like Barack Obama if they follow that path. I hope the black male prison population drops precipitously.

Hope will not change the world. But you can't change the world without it.Tonight, so many of us have it.

Alex Disagrees

Alex writes:

D+? I Disagree. I thought it was a good speech that set the tone for what will be required in the future. While certainly not as good as his acceptance of the nomination in Denver, it was both sobering and inspiring without being cliched. B.

Anyways, maybe you'll get your memorable lines at the State of the Union...

I thought it was primarily a political stump speech that started to roll at the 3/4 mark. I did like his message about putting away childish things and changing the political climate in Washington. But you must remember that political disagreements have often gotten out of hand. In the 1800s one member fired a gun at another on the floor of the Congress. So what we have witnessed during the past sixteen years has been well within the pattern of business as usual, disgusting as always, in D.C.-TRM

Cafe Paris Says...

Anonymous café paris said...

Big day for america, I hope Obama will change the world !

January 20, 2009 1:43 PM


Well, it is a pleasure to have a president who knows how to use a subject and verb in a sentence. That's a great change! But I hope that President Obama will change the United States, and by doing that, perhaps he will have a positive influence on the world. We need peace. We need hope. Let us take our first steps towards those goals today. Thanks for your response! TRM

Obama Speech

President Obama's inauguration speech was less a call to action than a campaign speech. As such it was lacking and disappointing. I suppose the sobriquet "No Drama Obama" was well earned, however I found his speech on election eve to be more memorable but there were no memorable lines in this one.

On the whole, he earned a "D+".

Hail to the Chief!

Congratulations to President Barack Obama, 44th President of the United States of America.

Once again, not with gunfire but with cannon salutes, power changes hands in this experiment in democracy.

Hamas's Disproportionate Response in Gaza

I would love to hear and see some protests about the Hamas torture of Fatah-men in Gaza, including the blinding of alleged Fatah supporters, or as the reports iv'e seen state "putting their eyes out."

Look here and here.

And if you looked at the pictures in your newspaper you saw "brave Hamas fighters" standing on the corner, in uniform, now that Israel is gone. But when it came time to confront their sworn enemy, those uniforms disappeared under the rest of the dirty laundry, and if they did fight, they fought behind a shield of civilians.

The tragedy of civilian deaths must not be underestimated. However, Hamas must shoulder its war crimes responsibility responsibility for firing unguided rockets from civilian areas in Gaza into Israeli civilian areas. The terror that Hamas sowed was reaped tenfold. Unfortunately. Check out this BBCsite.

Another pictures that sticks in my mind deals was one where three or four dead babies were paraded through Gaza . The picture showed that those who carried the babies and those marching along were all young men in civialian garb. I have no doubt that most if not all of these men were Hamas. Hamas. Hiding behind dead babies.

Janury 19,2009-January 20,2009

The remarkable juxtaposition of the celebration of Martin Luther King's birthday with the inauguration of the nation's first black president is overwhelming.

Let's look forward to tomorrow, but let's also take a look back.And try to read this while you have Sam Cooke's "A Change is Gonna Come" playing in the background. And try to do both without crying.

Here is the text of Dr. King's speech of August 23, 1963, with a bit more than the famous "I have a dream" quotation:

It would be fatal for the nation to overlook the urgency of the moment. This sweltering summer of the Negro's legitimate discontent will not pass until there is an invigorating autumn of freedom and equality. Nineteen sixty-three is not an end, but a beginning. Those who hope that the Negro needed to blow off steam and will now be content will have a rude awakening if the nation returns to business as usual. There will be neither rest nor tranquility in America until the Negro is granted his citizenship rights. The whirlwinds of revolt will continue to shake the foundations of our nation until the bright day of justice emerges.

But there is something that I must say to my people who stand on the warm threshold which leads into the palace of justice. In the process of gaining our rightful place we must not be guilty of wrongful deeds. Let us not seek to satisfy our thirst for freedom by drinking from the cup of bitterness and hatred.

We must forever conduct our struggle on the high plane of dignity and discipline. We must not allow our creative protest to degenerate into physical violence. Again and again we must rise to the majestic heights of meeting physical force with soul force. The marvelous new militancy which has engulfed the Negro community must not lead us to a distrust of all white people, for many of our white brothers, as evidenced by their presence here today, have come to realize that their destiny is tied up with our destiny. They have come to realize that their freedom is inextricably bound to our freedom. We cannot walk alone.

As we walk, we must make the pledge that we shall always march ahead. We cannot turn back. There are those who are asking the devotees of civil rights, "When will you be satisfied?" We can never be satisfied as long as the Negro is the victim of the unspeakable horrors of police brutality. We can never be satisfied, as long as our bodies, heavy with the fatigue of travel, cannot gain lodging in the motels of the highways and the hotels of the cities. We cannot be satisfied as long as the Negro's basic mobility is from a smaller ghetto to a larger one. We can never be satisfied as long as our children are stripped of their selfhood and robbed of their dignity by signs stating "For Whites Only". We cannot be satisfied as long as a Negro in Mississippi cannot vote and a Negro in New York believes he has nothing for which to vote. No, no, we are not satisfied, and we will not be satisfied until justice rolls down like waters and righteousness like a mighty stream.

I am not unmindful that some of you have come here out of great trials and tribulations. Some of you have come fresh from narrow jail cells. Some of you have come from areas where your quest for freedom left you battered by the storms of persecution and staggered by the winds of police brutality. You have been the veterans of creative suffering. Continue to work with the faith that unearned suffering is redemptive.

Go back to Mississippi, go back to Alabama, go back to South Carolina, go back to Georgia, go back to Louisiana, go back to the slums and ghettos of our northern cities, knowing that somehow this situation can and will be changed. Let us not wallow in the valley of despair.

I say to you today, my friends, so even though we face the difficulties of today and tomorrow, I still have a dream. It is a dream deeply rooted in the American dream.

I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be self-evident: that all men are created equal."

I have a dream that one day on the red hills of Georgia the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood.

I have a dream that one day even the state of Mississippi, a state sweltering with the heat of injustice, sweltering with the heat of oppression, will be transformed into an oasis of freedom and justice.

I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character.

I have a dream today.

I have a dream that one day, down in Alabama, with its vicious racists, with its governor having his lips dripping with the words of interposition and nullification; one day right there in Alabama, little black boys and black girls will be able to join hands with little white boys and white girls as sisters and brothers.

I have a dream today.

I have a dream that one day every valley shall be exalted, every hill and mountain shall be made low, the rough places will be made plain, and the crooked places will be made straight, and the glory of the Lord shall be revealed, and all flesh shall see it together.

This is our hope. This is the faith that I go back to the South with. With this faith we will be able to hew out of the mountain of despair a stone of hope. With this faith we will be able to transform the jangling discords of our nation into a beautiful symphony of brotherhood. With this faith we will be able to work together, to pray together, to struggle together, to go to jail together, to stand up for freedom together, knowing that we will be free one day.

This will be the day when all of God's children will be able to sing with a new meaning, "My country, 'tis of thee, sweet land of liberty, of thee I sing. Land where my fathers died, land of the pilgrim's pride, from every mountainside, let freedom ring."

And if America is to be a great nation this must become true. So let freedom ring from the prodigious hilltops of New Hampshire. Let freedom ring from the mighty mountains of New York. Let freedom ring from the heightening Alleghenies of Pennsylvania!

Let freedom ring from the snowcapped Rockies of Colorado!

Let freedom ring from the curvaceous slopes of California!

But not only that; let freedom ring from Stone Mountain of Georgia!

Let freedom ring from Lookout Mountain of Tennessee!

Let freedom ring from every hill and molehill of Mississippi. From every mountainside, let freedom ring.

And when this happens, when we allow freedom to ring, when we let it ring from every village and every hamlet, from every state and every city, we will be able to speed up that day when all of God's children, black men and white men, Jews and Gentiles, Protestants and Catholics, will be able to join hands and sing in the words of the old Negro spiritual, "Free at last! free at last! thank God Almighty, we are free at last!"

From Martin Luther King to Barack Obama. Some say this is a span of 40 years. Some say it is almost 400 years. Some say the time span is irrelevant. Some say every second was counted with a drop of blood.

Here we stand as a nation, on a mountaintop. Few thought it would happen, many doubted it would happen, but at least one man dreamed it would happen.

Allow yourself to shed a tear.

John Boehner, How Can You Look at Yourself in the Mirror Each Morning

Congressman John Boehner (R-OH), the current minority leader, has probably reached personal; political depths that are beyond comprehension. Elected in 1990, Boehner started out as a true maverick, uncovering myriad little Congressional perks and schemes and demanding change in the manner of an old-time conservative. But since 2000 Boehner has been a staunch Bush ally, going along with the President's budget-busting "no tax and spend like a drunken sailor" policies that have left this country bankrupt, to all intents and purposes.

So now Boehner rediscovers his small "c" conservative background to lead the charge against Barack Obama's plans to get this economy rolling again with the lame charge that Obama wants big Liberal government. take a look at this:

(T)he president understands that we need to stimulate the economy, not stimulate our government. And, if you look at the over $500 billion worth of spending, a lot of it's going to fix up federal buildings, and -- and $6 billion to community action programs to do weatherization programs.

It's just more of the same kind of wasteful spending that we have seen in the past. I was really -- I was shocked.

MARGARET WARNER: But you have...

HOUSE MINORITY LEADER JOHN BOEHNER: And that's what why I said what I said.

MARGARET WARNER: You have picked out fairly small little pieces of this. What about the big, broad categories? I think there are $90 billion for infrastructure, roads and sewers and bridges.

HOUSE MINORITY LEADER JOHN BOEHNER: No, no, no, well, there's $30 billion for -- for roads.

John Boehner, how can you look at yourself in the mirror each morning and not let that razor blade slip just a little?

Like a Dose of Salts

I sort of long for the days of Lyndon Johnson and his fondness for "jawboning", a kind of Texas arm-twisting, with people to get them to do what he wanted. Ol' Lyndon would get someone in his office or on the phone and say something like, "Your president needs you to do this, son, your country needs you!". Pretty soon the object of Lyndon's attentions would find himself with his arm twisted up behind him, his shoulder almost out of its socket, yet thinking he was patting himself on the back for doing something good for the country.

Now comes news, here, from Obama Senior Advisor David Axelrod, that the President-Elect wants the banks to stop pocketing the money they are receiving from the government for bail-out purposes, and to start getting credit flowing again. Said Axelrod on ABC's "This Week" today:

"I think he is going to have a strong message for the bankers. We want to see credit flowing again. We don't want them to sit on any money that they get from taxpayers,"

As you know, the banks have been using the money to buy other banks, or to put the government dollars onto their books to make their P/L statements look rosier than they are. What they are not doing is getting the money onto the street and into the pockets of lenders to start the economy.

I close my eyes and I can see it clearly. LBJ calls a summit meeting with all the top bankers."Now boys", he says, "Your country is in a desperate time and you have the power to make things right. We gave you boys billions of dollars to put on the street and you boys are just sitting on it. Now the way to solve this problem is to start making those loans that industry and people need so much to get folks back to work and buying things and we need to do it now! Today!It's your patriotic duty! And I'm sure you boys don't want to have to use a lot of your office space for all of those federal auditors and FBI agents that I can have placed in your banks in 24 hours, now do you?"

Pretty soon those banker types would be saying, "well yeah , it's for the good of the country", and LBJ would start slapping some backs and then there would be a news conference in the Rose Garden with the President and the bankers announcing that, yep, there was a problem and they were there to solve it, with smiles and handshakes all around.

President Obama needs to get a little LBJ in him, have a confab with the bankers to apply a dose of salts in the way of government enforcement actions and get those dollars moving through the system.

Middle East Madness 4

Step right up and become a martyr. Don't worry about the innocent people who might be in your way. From the New York Times's reporter in Gaza, read this report

January 9, 2009
Fighter Sees His Paradise in Gaza’s Pain
By TAGHREED EL-KHODARY

GAZA CITY — The emergency room in Shifa Hospital is often a place of gore and despair. On Thursday, it was also a lesson in the way ordinary people are squeezed between suicidal fighters and a military behemoth.

Dr. Awni al-Jaru, 37, a surgeon at the hospital, rushed in from his home here, dressed in his scrubs. But he came not to work. His head was bleeding, and his daughter’s jaw was broken.

He said Hamas militants next to his apartment building had fired mortar and rocket rounds. Israel fired back with force, and his apartment was hit. His wife, Albina, originally from Ukraine, and his 1-year-old son were killed.

“My son has been turned into pieces,” he cried. “My wife was cut in half. I had to leave her body at home.” Because Albina was a foreigner, she could have left Gaza with her children. But, Dr. Jaru lamented, she would not leave him behind.

A car arrived with more patients. One was a 21-year-old man with shrapnel in his left leg who demanded quick treatment. He turned out to be a militant with Islamic Jihad. He was smiling a big smile.

“Hurry, I must get back so I can keep fighting,” he told the doctors.

He was told that there were more serious cases than his, that he needed to wait. But he insisted. “We are fighting the Israelis,” he said. “When we fire we run, but they hit back so fast. We run into the houses to get away.” He continued smiling.

“Why are you so happy?” this reporter asked. “Look around you.”

A girl who looked about 18 screamed as a surgeon removed shrapnel from her leg. An elderly man was soaked in blood. A baby a few weeks old and slightly wounded looked around helplessly. A man lay with parts of his brain coming out. His family wailed at his side.

“Don’t you see that these people are hurting?” the militant was asked.

“But I am from the people, too,” he said, his smile incandescent. “They lost their loved ones as martyrs. They should be happy. I want to be a martyr, too.”

Middle East Madness 3

A new Israeli weapon, meanwhile, is tailored to the Hamas tactic of asking civilians to stand on the roofs of buildings so Israeli pilots will not bomb. From the New York Times here.

Yep, that sure is a callous disregard for civilian life. Oh, and sending leaflets that they might be in danger. Yep. Yep. Callous disregard for civilians. Now tell me again about homicide bombers and rockets "aimed" at civilian areas, George.

Middle East Madness 2

Why is the world silent when Muslim crazies set off suicide(homicide)bombs that result in the murder of innocent civilians in A. Iraq B. Afghanistan C. Indonesia D. All of the above ? ANd why are simultaneous protests held in European capitals when Israel asserts its right to defend itself from rocket attacks?

Please read this story by Jeffrey Goldberg in The Atlantic here.

Okay, yesterday I was depressed. Today, I'm just pissed off. It's absolutely astonishing to me how interested the world is in Israel's failings. This is the source of a bitter but hilarious observation I once heard a Kurdish leader make: He was complaining to me that his people were cursed, and I asked him what he meant: Cursed by geography, cursed by their proximity to Kurd-hating Arabs, what? He said the Kurds were cursed because they didn't have Jewish enemies. Only with Jewish enemies would the world pay attention to their plight.

For the record: I defend Israel's right to defend itself, but I fear that Gaza will quickly become a quagmire. I fear for the lives of Israelis, obviously, but I also fear for the lives of Palestinian civilians -- I have friends there, in harm's way -- in part because the Israeli army (and I say this from personal experience) can be a big, rough bulldozer of an army, and in part (large part) because Hamas terrorists unblinkingly and ostentatiously use their own civilians as human shields. I've seen this up-close, and it's repulsive. One story the media isn't telling, because it's impossible to get this story in these circumstances (especially because Israel stupidly won't allow foreign reporters into Gaza) is how much resentment the Hamas policy of using Palestinians as human shields causes among Gaza civilians. Early reports indicate that Hamas mortar teams were firing from the UN School. This shouldn't surprise anyone.

One more thing, speaking of pornography -- we've all seen endless pictures of dead Palestinian children now. It's a terrible, ghastly, horrible thing, the deaths of children, and for the parents it doesn't matter if they were killed by accident or by mistake. But ask yourselves this: Why are these pictures so omnipresent? I'll tell you why, again from firsthand, and repeated, experience: Hamas (and the Aksa Brigades, and Islamic Jihad, the whole bunch) prevents the burial, or even preparation of the bodies for burial, until the bodies are used as props in the Palestinian Passion Play. Once, in Khan Younis, I actually saw gunmen unwrap a shrouded body, carry it a hundred yards and position it atop a pile of rubble -- and then wait a half-hour until photographers showed. It was one of the more horrible things I've seen in my life. And it's typical of Hamas. If reporters would probe deeper, they'd learn the awful truth of Hamas. But Palestinian moral failings are not of great interest to many people.

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Middle East Madness 1

From a friend:

No explanation needed ~

Future War, Cyber War

Once again another part of the middle east has armies marching. Once again innocent civilians suffer. At this time, I won't debate the merits of the Israeli action against Hamas in Gaza. What i find interesting is combat in another sphere- cyberspace.

I believe that I have reached the point of annoying some friends in the military by focusing to such a great degree on cyberspace.Unfortunately, it seems that most of the military is pre-occupied with fighting the last war, no matter how they determine what the last war might have been. For example, was the last war the surge in Iraq? The failures in Afghanistan? Arab-Israeli conflicts? Panama? Vietnam? For the professional military, the question is, "What was the last war and what are the lessons to be learned?" While this certainly is a valid exercise, the real question is, "What is the next war and what do we have to know in order to win it?"

In my estimation, the next war will occur in cyberspace, specifically the control of information via electronic means, especially the internet. By necessity, this is a broad definition of the battlefield but let me give some examples. Today, one of the web sites that I view regularly Debka.com, which specializes in Israeli affairs, reported that it was "off the air" yesterday because it was under cyber attack. In the past few months, I reported on suspected Chinese penetration of computers belonging to members of the United States Senate. Further Chinese penetration occurred to computers that were taken into that country during the Beijing Olympics. Unknown entities have penetrated systems used by the the Department of Defense, which relies heavily on cyberspace for everything from internet e-mails to combat operations and communications. NASA systems have been penetrated. Al Qeda and other terrorist organizations use the internet to disseminate information. It was reported that Russia penetrated and blocked Georgian cyber systems during their recent war.

Infantry, and assault weapons and field guns and fighter jets will always be needed, and I have no doubt about the value of "lessons learned" sessions. I just hope that some quality theoretical thinking is taking place and practical applications are being developed to ensure our superiority in the next battlefield-cyberspace.

The Fragility of Hope

I admit that the election cycle exhausted me and that I required a brief respite to recover some sense of reality, which presupposes that I ever had one.

The country feels as though we are all hanging around a hospital ICU, waiting for a sick old uncle to die so that we can all finally go out and have a drink. We really don't have the desire to be there but our presence is required, if only for appearances sake.

But what are we waiting for? What we are not waiting for is Barack Obama. what we are waiting for is the opportunity to change or national psychology from one of guilt, shame and remorse to one of hope. But hope is fragile. It tends to shatter when it is impacted by reality. This new hope needs to contend with the mideast,Israel, Palestine, Iran, Iraq, Afghanistan, Russia, China, Pakistan, Taliban, India, global warming, energy, education, nuclear proliferation, terrorism, liquidity traps, deflation, and inflation. Just for starters. And we are totally broke.

Will this newborn hope be vigorous and long lasting or will it be stillborn?

Hope.

Driven Crazy by Barney- Torture by Any Means

I love this story. Apparently, United States personnel have been using rock music to torture Guantanemo prisoners. The "I Love You" song from Barney is a notorious instrument of this torture, and prisoners often crack within 24 hours of being exposed to that one. Come to think of it, I would crack too, if I had to listen to that drivel. Otherwise, they say loud rock music can bring someone to their knees in short order.(I would disagree and use Woodstock as evidence.) I would have thought that rap music would have the same effect.

The issue of "torture" is interesting. Surely, we agree that jamming bamboo splints under someone's fingernails is torture. Likewise, attaching electrodes to someone's genitals, caning the bottoms of someone's feet, or using your favorite Black and Decker 3/8 inch drill to make holes in someone's anatomy, as Saddam Hussein was wont to do, all constitute torture. However, the reality is that we are engaged in a war of an entirely new type with people who are pledged to an ideology rather than a state, and, even if we invite them over for tea and biscuits, they are not inclined to tell us important information that will protect lives. The terrorists of Mumbai, London, Madrid, New York, and Washington, as well as their handlers and planners, are not inclined to take part in a pleasant sit-down and a discussion of the issues.

It has been reported that the prisoners of Guantanemo have been well fed, supplied with copies of the Koran, and otherwise been well-treated. Loud music, bright lights and sleep deprivation seem more than reasonable to get short term results. Long term intelligence from these people, on the other hand, may require a long term investment in time in order to gain their trust and cooperation.

What is most troubling is that it appears that we do not know who we are holding in Guantanemo. Are these hardened terrorists? Are these people who were in the wrong place at the wrong time? Are there combatants who are not ideologically committed, but who were picked up because they were engaged in an extension of tribal warfare in either Afghanistan and Iraq?

We have a duty and responsibility to hold people in accordance with our both laws and our international agreements, and not on the basis of executive fiat. The fact that we have been doing the latter taints any possible legitimate activity regarding the imprisonment and interrogation of those held in Guantanemo. I therefore predict that once he takes office, President Obama, a former professor of constitutional law, will demand a complete vetting of those held there, with many subsequently being released, and those who remain will either be charged with crimes related to terrorism or they will held under the provisions of the Geneva Convention as it pertains to combatants.

Torture is against the law. Is Barney?

You Missed it!

Well, it's time for year-enders, so lets start with this round-up.

Will China fall? Is Russia moving into Africa? Who is building India's anti-missile system? Are those much-hyped solar panels dangerous to the environment?

All these stories and more as Foreign Policy magazine lists the 10 most important stories you missed 2008.

Jews Tortured In Mumbai

I had read this news before, but since a friend just sent it to me I figured there was still a matter of general interest.

It appears that the terrorists in Mumbai were interested in more than just murdering Jews they found, but also in engaging in a bit of torture. I previous years, I had, on occasion, witnessed autopsies and spoken with pathologists about their work and I know that it takes a special type of horror for one of those professionals to hesitate in describing their findings.

Mumbai Massacre

It's is too early to know who really is behind the terrorist attack in Mumbai, but it does not appear to have the hallmarks of an Al-Queda operation, specifically large explosive devices, primarily car or truck bombs, in highly visible symbolic public edifices.

Until more information comes out, my deepest sympathy to the families of the dead, to the wounded, and prayers for those still held hostage.

My strongest support to the Indian government in battling the terrorists.

Grappling with Reality

One of President-elect Obama's characteristics that give me great comfort is that the is fully engaged with reality. No more of George Bush's religious fantasies. No more of Bush's wishful thinking. No more of his idiocy. Obama will make many mistakes, to be sure, but both his mistakes and his successes will result from an assessment of facts, or the facts as they are known.

All the Right Moves

Barack Obama has not committed a false step since becoming president-elect. The country is on the precipice of economic disaster. We are fighting two wars in woe-begotten lands. Yet Obama shows what he has shown all along: a cool rationality and appreciation of the complexities that await him when he finally shoulders the mantle of the presidency.

Politically, he reached out to John McCain to show one and all that the war has ended and that it truly is time to bind up the nation's political wounds. Any speculation that McCain would soon find a place in Obama's cabinet were just that, speculation, baseless and uninformed. But the image of the two former combatants sitting side by side and making uneasy conversation showed that the self-righteousness of the Bush administration was over. I suppose if Obama could talk to McCain so soon after the calumnies that the Republicans dumped on him, then the president-elect should have no problem talking with some of the nastier fellows on the world scene such as Putin and Ahmadinejad. Besides, he could always tell al-queda's Al-Zawahiri, "Your mother!"

On the economic front, Obama has taken several important actions to address the critical state of the nation's and world's economies. He has put in place what seems like a first rate and experienced team whose focus is on action rather than ideology. The president-elect is not promising the immediate alleviation of the economic woes that afflict us but he is promising immediate attention during the interregnum and, once he takes office, immediate action. It is far more important at this juncture that he addresses the psychology of the recession than the policy of recession. For the latter, the appropriate time is January 21, 2009. The markets have apparently given their imprimatur to both his appointments and his statements regarding where he intends to lead this nation, his ideas for job creation, infrastructure repair, and the survival of American industry.

Obama is setting the bar very low regarding the impact that he will make during the mythic first 100 days of his adminstration. He has stated that the economy will get worse before it gets better. This may well be true, but knowing that he is working on ideas, and that he will be prepared to implement polices in less than 60 days already begins to lift the gloom that was beginning to take on an unbearable and palpable physicality.

So the enormous impact of president-elect Obama can be stated simply: We have not yet turned a corner but we know things will get better.

Economic Self-Flagellation

Yes, the mortgage crisis revealed the house of cards that so many of the banks had constructed. Yes, the economic crisis revealed the lack of proper regulation and transparency that leads to confidence in the markets. Yes the stock market is down from its high from about a year ago (just when I made a major investment! Note to readers-when I buy, you should sell!). Yes, unemployment is rising.

But talk of a new "Great Depression" that is rampant in the media is just bizarre. First, consider that the government is taking some action to increase market liquidity and, without doubt, government actions to restore stability to the markets will be much more aggressive once the new Democratic administration and congress are both in place in January. On both legal and philosophical bases, the concept of government intervention in the marketplace is light years ahead of where it was in 1929.

People who have actually lived through the Great Depression must be both concerned and, at the same time, somewhat amused at the current panic, and panic, an irrational fear- is exactly what we are witnessing. During the Depression more than 20% of American were unemployed, while at present the rate is 6% and growing. During the Depression hundreds of banks failed, but according the the FDIC, here ONLY TEN BANKS HAVE FAILED SINCE SEPTEMBER 2008, many have been acquired by other banks. Further, during the Great Depression, the FDIC did not exist, and people actually lost their life's savings. Today, the FDIC insures deposits up to $250,000.

One must ask if the media are blowing this economic crisis out of proportion? Are we actually in a severe recession, brought on by unwise practices in the mortgage and investment sectors? And will aggressive action by the Obama administration mitigate the impacts of this recession?

Recessions, for whatever reason, are an inevitable part of the business cycle. As someone who has lived through previous recessions, it seems to me that that a recession is exactly what we are living in today. After previous recessions passed, many economists said that government interventions had no real effect on the outcome of the recession. What is important is the the positive psychological impact that occurs when it seems that the government cares about the people and is trying to do something to alleviate conditions. I believe that whatever Obama's policies might be, the psychological impact will exceed the political impact and that the recession will be over in two years. Any thoughts?

Narrow Minda, Broad Lawns

The writer H.L. Mencken called the broad expanse of America "the land of narrow minds and broad lawns".

I saw this on Eric Alterman's "Altercation" blog and couldn't resist sharing ti here. let me know if this makes you shudder, too.

Name: Andy

Hometown: Carrollton, GA

Eric,

A student in my freshman world geography course came by to visit me yesterday. Initially, she was concerned about whether she would be able to earn a B in the course and regain her scholarship. As we talked, she let slip her profound despair over the larger "stuff happening" in the economy, which was leading her to view choosing a major as a futile exercise. What's the point?

As she explained, "This is happening because we have turned away from Christ, and he's not to be caught off guard by that. And now, 'many people' believe that we have elected the anti-Christ as our leader." When I asked, she explained that Obama's "Muslim upbringing," charisma, and "promises to do big things" revealed his true identity. She appeared stunned to hear that Obama is and was raised a Christian. Nevertheless, she continued, the only way out of the world financial crisis is for Christians "to drop to their knees."

I asked her if she thought Christians could, in that way, improve the job market by the time she graduated in five years. "No," she said, "I shouldn't even be here by then. I'm a true-believer, and we're supposed to not be around when the Antichrist comes. He'll reveal himself."

Yikes, what a depressing meeting on my daughter's first birthday.

60s Redux?

I know a lot of people are saying Obama is the new John Kennedy, but this business of bringing back the 60s may be going a bit too far. In the past few days I've seen too many guys in their early 20s sporting brush cuts and wearing those silly almost brimless hats and skinny ties that we wore in those days. This is just bad fashion. Or anti-fashion.

Paul Krugman

Is it just me or have you noticed the absence of Paul Krugman from the Times lately? Did I miss some notice that he was taking a vacation? Or perhaps he is being vetted by the Obama people for a position in the administration. I can see him heading up the Council of Economic Advisers.

New Directions for Saudi Arabia?

Last week, Saudi Arabia's King Abdullah held an inter-religious conference in New York City. A participant in that conference said King Abdullah conveyed several important thoughts that would indicate a change in Saudi policy;

1. The King recognized that Saudi policy for the past century had been ineffective and had led to unnecessary conflicts.

2. The election of Barack Obama, an African-American, to the Presidency revealed the United States to be the democracy that we had always claimed to be.

3. The Kingdom was funding less extreme forms of Islam outside Saudi Arabia proper to tamp down the fires of radical jihadism.


The King's remarks seem to indicate a marked change in policy from that adhered to previously by rulers of Saudi Arabia. However, Abdullah is 84 years old, and it is not possible to surmise who long he might live and to what degree his course change can take hold before he dies. Undoubtedly, a new leader will arise from the House of Saud, and it is uncertain whether he will follow the course set by his predecessor. That being said, it is extremely interesting to hear a Saudi King remark about the negative impact of the extreme Wahhabi Islam that the Kingdom has bought off for the past century in order to maintain power there.

Finally , it is interesting to hear the King remark about the election of Barack Obama in the glowing terms he used. While some pundits are comparing Obama to Franklin Roosevelt based on the current economic crisis, Obama's influence can be far more wide ranging, so that he is really compared to John Kennedy insofar as the positive feelings that erupted worldwide after his election.

But positive feelings go only so far when one is confronting adversaries, and less then true friends may be more than willing to stand aside while the United States continues to bare the full weight of the battle against totalitarians, or as a friend of mine once put it, "I'll hold your coat, let's you and him fight."

Best Real News Headline Ever!

From the MSNBC.com website we have this gem.

Helicopters collect whale snot from blowholes

My previous favorite was the famous New York Post headline which described a decapitated body in ecdysiast's bar:

Headless Body in Topless Bar

The Pardoner-in-Chief

President-elect Obama is throwing his arm around Sen. Joe Lieberman to keep Senate Majority Leader Harry Reid from 86in the Connecticut senator from the Democratic Party.

As reported by MSNBC.COM,here, Obama is more interested in creating a sense of bi-partisanship than in engaging in intra-party squabbling. Although it is a noble gesture by Obama, his move puts Reid in an unenviable position for how is he to maintain party discipline when he can't boot a Democrat who spoke in favor of the Republican candidate at the Republican convention.

I admit that the concept of "party discipline" is alien to the Democrats, but if Reid can't toss Joe out of the party, he has to take the rogue Dem to the woodshed for a sound trashing. Admittedly, Joe votes almost a straight Democratic line on all the issues except the Iraq war, but he committed the unpardonable sin of speaking bad about another Democrat and in campaigning for the Republican. Of course, Joe will lose his committee chairmanships, and perhaps come January his office will be a former janitor's closet, but despite Reid's desires, Joe Lieberman will still sit with the Democrats.

It seems that Barack Obama has just issued his first pardon, and he hasn't yet taken the oath of office.

Veterans Day II

I attended the Veterans Day parade in New York City today. It was a beautiful, sunny, crisp day, perfect for a parade, and more perfect to honor the veterans. As usual, the parade was sparsely attended, nothing like the ethnic parades that jam the rich residential part of Fifth Avenue. The veterans parade is relegated to a lower part of Fifth, more gritty and commercial, and no crowds press against the barricades that line the street.

Of course they had fresh troops there looking great and marching to the music. But also there were a lot of real vets there, older, more stooped but trying to walk tall. A few of the vets rolled by in wheelchairs with less than half their bodies. Some were transported in buses.

There is a difference between seeing the young and healthy guys who are fresh from boot camp march up the avenue while the older guys who have suffered so much and can only roll. The dead feel no pain. Those so grievously wounded feel nothing but pain.

It was a good day for a parade.

Heard it Through the Grapevine

I love this interregnum between administrations. More rumors than you can imagine pop up as to who will to named to which cabinet post. The other day a friend called me and said, "Did you hear that XXX will be named to YYY position?" I told him to forget that he had ever heard that rumor and to take two aspirin and call me in January.

The rumors pop up for the usual reasons for these things. People are afraid of the unknown future and they want to exercise a degree of control over their lives. All of the names are, of course, nonsense, and they have as much of a chance of being correct in their assumptions as those unlimited number of monkeys pounding away at that unlimited number of typewriters who eventually write Shakespeare.

Names hit the rumor mill for a variety of reasons. Some are placed there by people who want to inject an idea for a possible position. Some are released by those famous "unnamed sources" to see how they would play in the media: would they be shot down like so many clay pigeons at a skeet range or would they fly like the real ones? Some rumors come from too-active minds who think they have all the answers.

One of the more interesting rumors about is that President-Elect Obama will ask Current Secretary of defense Gates to stay on for at least one year. One source of this particular rumor is the Republican inspired and oft-cited belief that Democrats just don't or can't "get" the army-navy-air force thing and that they would rather weave hemp quilts down by the riverside.

While Secretary Gates has proved to be far better in his job than his predecessor, Donald Rumsfeld, there is no reason to believe that a Democrat can't do the job. One Democrat fully capable of handling the position is former former Georgia Senator Sam Nunn, but Nunn is 70 and that could be a deciding factor for Obama.

I believe that Obama is the kind of person who will hold his cards close to the vest and that we will know who he has in mind when he makes an announcement. The one thing that concerns me is whether Obama will chose a cabinet based on race and gender so that it "reflects" America, as his confidant, Valerie Jarrett, said recently. In other words how far will he go in designing a cabinet for appearance over functionality?

Until you hear names coming directly from the president-elect's mouth, it is better to follow the advice in that old r&b song:

Believe half of what you see, and none of what you hear.

Supersize It!

From a friend:

Say what you will, but remember this.......Today, you could buy a share of GM and a share of Ford for less than the cost of a Big Mac meal.......

Ford $1.80
GM $2.92
_____
$4 .7 2

Veterans Day

We salute all those who fought for our freedoms. More important, we remember and honor those who died for our freedoms.

We hope that the day will soon come, when the longing expressed in the ancient words of the prophet Isaiah achieve fulfillment:

they shall beat their swords into plowshares, and their spears into pruninghooks: nation shall not lift up sword against nation, neither shall they learn war any more.

Election 2008- Winners and Losers

The rush of election night is over. It was a wonderful and cleansing experience, more from the sense that George W. Bush will be leaving the most powerful political office in the world and that he will not be replaced by a political clone, which is what the otherwise estimable John McCain morphed into with his desire to capture the Bush/Rove constituency.

The election of Barack Obama is not the dawning of the Age of Aquarius. Nor have we been blessed by the presence of the person Oprah Winfrey has declared to be "The One."

Obama will face hard choices from the moment the parades end on January 20th. He will have to lead this nation and the world from the brink of an economic abyss not seen since the Great Depression. He will have to set a course between Scylla and Charybdis as he finds a way to deal with global warming at a time when American industry is failing. He will have to balance the reality of a government dead broke from the insane economic policies of his predecessor while he tries to implement a full panoply of social welfare programs. As VP-Elect Joe Biden quiet accurately stated, this president will be tested and tried by our many enemies shortly after he takes office. Obama is often compared to President John Kennedy. The question that must be asked is whether Obama will prove to be the Kennedy who allowed himself to be mugged by Nikita Khrushchev in Vienna, or will Obama prove to be more like the Kennedy who coolly dealt with the Cuban Missile Crisis and averted nuclear war?

So despite the post-election giddiness that currently prevails at home and abroad, perilous times are upon us. But perilous times are always upon us: war, depression, war, the threat of nuclear annihilation, war, racism, economic failures. It never ends, nor will it ever end.

But there are some clear winners and losers that will emerge from this election, and I believe the winners are worthy of celebration. Let's take a look:

WINNERS:
The Constitution of the United States
The Rule of Law
Science
Reason
Education
The Middle Class
Rush Limbaugh and right-wing talk radio. They will have plenty to talk about for the next four years.
Rational market regulation

LOSERS:
The evil myths of the Nixon / Atwater / Rove / Schmidt Republican political machine
Creationism
Right Wing Evangelicals
Laissez-faire investment markets


We could have done a lot worse.

The Army of Dawn III

The mission is over. The battle is decided. Victory is sweet.

Hail to the Chief

Barack Obama, your life is no longer yours.

You are now enveloped in the formidable security bubble that the Secret Service controls, a bubble designed to protect you. Yet, the same bubble will isolate you from the very sources of your strength.

Barack Obama, you now carry on your shoulders the hopes and burdens of the people of this nation. You will age beyond your years. Barack Obama, you now carry on your shoulders the weight of the hopes of so many people of the world. The burden will be unbearable at times.

Barack Obama, sleep well tonight. It might be the last time you sleep well for many years.

John McCain, American

In a concession speech of incredible grace, John McCain finally reveled the man who could have been the President-Elect this evening. McCain reached out to Barack Obama, a man who was his opponent, not his enemy, and he tried to teach his followers, finally, that a difference in politics is not dishonorable or traitorous.

Well done, John McCain. If you had made some different decisions, and had some better luck, you would have made the last speech tonight.

9:25 PM EST November 4,2008

MSNBC has just projected that OHIO and its 20 Electoral VOtes will fall to Barack Obama. If true, Barack Obama will be the next President of the United States of America. As President John Kennedy once said,"The torch has been passed to a new generation."

As a nation we can not ignore our history, but we are no longer constrained by it.

The Army at Dawn II

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK

The ancient Shoup voting machines that New York City uses record each voter's choices.

Into the booth walks a middle aged black man with his 10 year old son.
Ka-CHUNK-the big red handle is pulled to the right.
Snik-snik-snik-snik- as the small lever next to each candidate's name is pulled down.
Ka-CHUNK and the big red handle is pulled back to the left and the vote is recorded.
The man and his son walk out, smiles on their faces big enough to reflect history.

Into the booth walks a young black woman.
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
She backs out of the machine, looks a bit puzzled, turns around and smiles. It was her first vote.

Into the booth walks an elderly white woman.
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
Mere seconds pass and she exits. She has done this many times.

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK
Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK

The six voting machines for six election districts in this part of the Bronx, New York are singing.

At 8:00am, I stand on line in the basement of a large apartment building. I am voter number 115 and there is a long line behind me for my district. The poll workers says that the polls were open at 6:00am and the lines were more than 100 feet long.

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK

An elderly man shuffles out from behind the machine's curtains and I walk in. I have never missed voting in an election. I have been accused of being an idealist. I plead guilty.

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK.

I have made my choices. I know I am now a part of history. Yes, a minuscule part of history, but a part of it nonetheless.

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK

Sometimes democracy sounds funny.

Ka-CHUNK-snik-snik-snik-snik-Ka-CHUNK

I smile.

The Armies of the Dawn

Like armies throughout history, this one will begin to stir at first light. It will prepare itself for the day of battle and march forward with determination to do its duty.The issue will be decided by night.

OK. A bit of overwriting, but it contains more than an element of truth. After almost two years of intra and inter political party battling, after almost two years of seeing the worst and, rarely, the best of our politicians, tomorrow morning, what appears to be an almost unprecedented number of American voters will march to the polls and stand for hours to use the only weapon they possess, their vote, to change the government of this country. Not with bullets, and not with bombs, and not with murders and kidnappings, the government of what is still the most powerful nation on earth will peacefully transform itself yet again.

Faced with perhaps the clearest set of choices between two competing political philosophies, the American people will determine the course of this nation for the next four years. Already, this has been a campaign without precedent as one major political party has nominated a black man as a candidate while the other party has nominated a woman for vice president.

Tomorrow evening, millions of Americans will be glued to televisions as they watch the results roll in and as they root for their candidate to win. Victors will be crowned. Losers will concede. In both cases, some will perform in their rolls with grace, some less so. All will accept the decisions of the voters.

On January 20th, in Washington, D.C. oaths will be taken, cannons will fire and soldiers will march. But those cannons will be firing salutes, not shells. And those soldiers will be on parade, not on heir way to do battle.

Such is the transfer of power in this nation.

Swimming In Obama's Acetylcholine

Last night The Radical Moderate was granted unfettered access to a space between an axon and a dendrite in Barack Obama's mind. The following is an unedited recording of what we heard.

Damn, I am so tired , and so jazzed up that I can't stop. Who would have thought I would be in this position a year ago. Who could have thought it? Only with a handful of heavy duty drugs, man. Miss my mom . Wish she could have been here to see this. She would be laughing her ass off. Hope granny lives to see it. How cool. Hope she can come to Washington to see the inaugural. Too much to hope for but she can see it on TV.

Two days. I've got to keep his up for two more days. Then got to keep them from trying to steal it. I've got lawyers ready in Ohio and Florida if the Republicans try to pull the same shit they always do. Damn, folks are standing in line six hours to vote for me. Fuckin' incredible. I know I have this thing wrapped up if there are no surprises. Please, Please, Russia, don't get stupid and invade some place again. That'll just make folks afraid and vote for McCain. I've got this thing wrapped up. Dear God! I'm gonna be president of the UNITED FUCKING STATES OF AMERICA! I wonder what it will be like. That Secret Service bubble is gonna strangle me, but they sure as shit don't want to see some whacko off me like Kennedy. Those two nut-bars in Tennessee, man , I'm sure there are a lot of others like them who don't want to see a "nigger" president. I've seen some of those things going around the internet. Hell, if Colin Powell had the balls, he would have been the first black president, but his wife didn't want to go through all this shit. Michelle's been great about all this. So have the kids. I owe them a lot.

Let's see, Let's see, what do I have to do next? I'm blasting McCain all over the fuckin' map. Even have him trying to cover his ass in his own home state. My infomercial was a hit. Monster hit. Home Run with bases loaded.And that guy can't even read a teleprompter. Cleaned his clock in the debates, too!

let's see... I've got the northeast sewn up. I've got the West Coast. Looks like I'm dead certain in all the states Kerry carried in 04. I've got tons of money and I'm attacking John here it hurts most.. Arizona, Georgia, North Carolina, Virginia. Man, what a trip if I beat him in Arizona. I'm attacking in the South. Blacks are gonna turn out like never before for me. Florida. Don't know. The Jews still don't trust me, and I think the "youth vote" will never show up. Might lose Florida, but it will be close. Pennsylvania. I need Pennsylvania. If I get Penn a lot of others are going to fall into place.If I get Penn, I don't need Ohio. I'll send Joe Biden there. They love him there. He was born there. I'll send him to every frikin' diner and outhouse. I'll have him knock on every door he can find. Hillary. They love her there, too. I'll send her around. I'll hit Philly and Pittsburgh to get those big crowds pumped up and to get the media. Don't need Missouri, but it's too close to give it up. Colorado, New Mexico, Nevada. Gotta get there and hit them hard. I need Colorado and either New Mexico or Nevada and I win.

I'd love to get a landslide. Just blow the doors off the Republicans. Get a mandate and run with it. Shut up Rush and those assholes. Come to think of it, they would love to see me elected. It'll keep them in business for another eight years.

Economy sucks. We can get it together. I've got Volker, I've got Buffet, I've got Rubin. Heavy hitters! Like the '27 Yankees. I can be like Roosevelt and get us moving. Kids will read about me. Trippy!

Two days left. gotta keep running. Those radio guys say I'm measuring the drapes in the White House.. Damn I'd love to measure the bed there. Wonder what it would be like to nail Michelle in the Lincoln Bedroom. Trippy! Couple of blacks doin' the nasty in the Lincoln Bedroom. Bet old Abe would laugh his ass off.

Damn, I am so tired! Two days. Two Days!

The Sins of John McCain

The Radical Moderate was granted unique access to Sen. John McCain's synapses last night. The following is an unedited recording of the thoughts that passed along the neuron trail.

Ahhh, I need another bourbon. Been battling this thing for what, two years now, and what do I have to show for it? This pissant Obama, nothing more than a junior senator is kicking my ass all over the country. What the hell has Obama ever done in his whole life? Another frikin lawyer. A community organizer. what the hell is a "community organizer"? How many years was he a state senator in Illinois? seven, five? and the damned people make out like he is frikin' Abraham Lincoln. makes me sick. He hasn't done shit. I've been a Senator for twenty six years. Twenty six years! I worked with Teddy Kennedy on immigration reform. Got the Republicans pissed at that. I worked with that liberal Paul Feingold on campaign finance reform. they call it the McCain-Feingold Bill. Got everyone pissed at me for that. Told the Republicans that global warming was real. Got laughed at for that from the shit kickers. That's what being a maverick is all about. That's the real deal. And they all make it out like I'm just channeling some old TV show. Now this pissant comes out of the senate cloakroom like some frikin' saviour and everything that I've done gets trashed.

Steve Schmitt. I'll kick his ass good when this thing is over. I wanted Joe Lieberman as my VP but he said No, the base wouldn't allow it and we could pick up women who would have voted for Hillary. I should have told him to fuck the base cause Joe was a guy I trusted. And women who voted for Hillary weren't going to vote for me anyhow. I worked with Joe for years, traveled the world's danger spots with him. He always covered my six. If I had picked Joe they all would have seen I was serious about solving all of our problems. I would have been hero, reaching across party lines to make this country great again. But I listened to that asshole Schmitt, and I wound up with this babe moose hunter who talks in tongues and is half a step away from being indicted in Alaska for some shit she pulled there. She even scares the shit out of me. I should have listened to my heart and picked Joe. Damn, did I screw the pooch on that one.

I can't fuckin' believe this Obama guy. He hasn't done shit. I've given my life to this country. My father gave his life for this country. My grandfather dedicated his life for this country. And this guy comes out of nowhere and says "change" and the people have a frikin' orgasm.

Bush. George Fuckin' Bush. His ass gets kicked, too. Not only is he totally incapable of fighting a war, but he has that other asshole, Rumsfield, as his SecDef. One's a born idiot, the other just acts like one. Boy, did they make Iraq a total cluster fuck. When they finally put together the surge, the Arabs saw we were serious and started to come around. But that Rummy wanted to fight the war on the cheap and we almost got our heads handed to us. And Bush, that idiot, has that attention deficit disorder thing. He couldn't leave well enough alone and take care of Osama and the Taliban first before overextending us to Iraq. Warfighters! Shit! And that Bush is a lying son of a bitch too. Said I had an illegitimate black kid in 2000 in South Carolina and that cost me the primary there. He knew I adopted a kid from Mother Theresa's orphanage, but the gutless wonder lied about it. He says he was a fighter pilot. My ass! No fighter pilot would dream of giving up a chance to strap into a jet, but this guy skated his duty. And then he gets to be president, and he didn't even win the popular vote. Then I kiss his ass for eight years to get credibility with the party. But when I hugged that son of a bitch on stage... damn.. I kissed his ass for eight years. Voted for his stupid programs 90% of the time cause I still wanted to be president..and I can't even get him on stage with me because of the shit storm that he is leaving. What a laugh. And now that things started to look good in Iraq after the surge, cause I was right, it gets buried in the back pages while Bushie has to fuck up the economy and give the Dems the issues that they are strongest at. Damn, the Vietnamese tortured me, but Bush fucked me twice! And what's worse is, I let him. Man, I just bent over and asked for it. I really was a maverick in 2000 and loved my "Straight Talk Express". But I sold my soul for my chance in 2008. For what?

Pennsylvania! I gotta beat him in Pennsylvania! The polls close early enough there and if I can get Pennsylvania, it won't look like such a sure thing. I gotta stop the avalanche in Pennsylvania. I'll campaign like hell in the middle of that state. Even Carville says it's like Alabama and I sure ain't gonna lose Alabama! Then I'll take Florida and Ohio and Missouri. I'll go for Colorado. Shit, three days to go. This kid is killing me.

Ahhh, damn. I need another bourbon. Three days.

One, One and One, One and Two, One and Three....

I'm just contemplating some numbers, courtesy of the Vote-Masters web site(click on the yellow map to the right)and using his algorithm, which uses poll results for a one wee trailing period.

My assumptions: the margin of error for these polls is approximately 3%; to be truly outside the margin of error one must have a lead of twice the margin of error; the so-called Bradley Effect, which states that minority candidates receive higher poll numbers than actual votes, has not been proved.

Therefore, I believe Sen. Obama has a safe lead, defined as equal to or greater than 10% in the following states: WA, OR, CA, IA, WI, IL, MI, PA, NY, VT, NH, MA, RI, CT, NJ, DE ,MD, and Washington, D.C., for a total of 241 safe Electoral Votes.

Using a definition of a probable lead, that being greater than 6%, but less, than 10%, Sen. Obama has leads that fit that criterion in NM, MN, and WV. That gives hime and additional 22 Electoral Votes. I do not have full confidence in those WV polls due to the known difficulty of conducting polls in that state, so eliminating WV's 5 EV's, add another 17 to Obama's 241 and you have 258 EV's for him. He needs 12 more.

CO shows Obama with a steady lead over time and he currently leads by 6 percentage points there. If you are a betting person, put CO's 9 EV's in the Obama column. Likewise for MO, with 11 EV's which currently shows a 6 point Obama lead, but considering that state's voting history in presidential elections, I have little confidence in those numbers and neither should Obama. However, those states could put him over the top, but don't count on it.

I believe we will know the winner of the 2008 Presidential election when we get the results of the states east of the Mississippi.

If Obama now focuses his efforts on the traditional battle ground states of OH and FL, as well as VA, he might just make history of a most exquisite sort.

Ethnics Politics at its Worst!!!

Doin' the Pakistani Fatwa

The fine folks at Abu Muqawama share this little tidbit on the mix of religion and politics in Placid Pakistan:

In crazy Islamicist news, President Zardari has been the target of a fatwa issued by Maulana Abdul Ghafar of Islamabad's Lal Masjid. What was it that provoked Ghafar’s ire? Was it Zardari’s shady business practices, allegations of corruption or money laundering? No…it was Sarah Palin. Troy could not make this stuff up. Apparently Zardari's indecent gestures (shaking hands), filthy remarks (saying he’d like to hug her) and repeated praise of a non-Muslim lady wearing a short skirt is not only “un-Islamic but also unbecoming of a head of state of a Muslim country.” After getting that off his chest, Ghafar added a demand that the military operations in the tribal areas be ceased since they are “creating hatred amongst the general public against the Pakistan army.” Unsurprisingly, Ghafar is a close relative of the fanatic Red Mosque cleric Maujlana Abdul Rashid Ghazi, who was killed by security forces during Operation Silence in July 2007.

However, more to teh point is their assessment on changes in top level ISI personnel and what it might mean for the fight against the Taliban:

Pakistan Army chief, Gen. Kayani, has appointed Lt. Gen. Ahmed Shuja Pasha as director general of Pakistan’s Inter-Services Intelligence (ISI). Prior to his appointment, Pasha was Director-General of Military Operations, overseeing the Army’s operations in the NWFP and FATA. Pasha is succeeding Lt. Gen. Nadeem Taj, a relative of Musharraf’s, who was viewed by many to be a key figure in the “double game” Pakistan has been playing with the U.S. on the one hand and the militants in Tribal areas on the other. So, what does this change mean for the U.S. and operations in Afghanistan? Reports indicate that the U.S. has been pushing for Taj’s replacement—believing that intelligence shared with the ISI by Americans was passed to the Taliban. What will Pasha’s appointment mean for the Pakistan Army’s approach to militancy and terrorism? What will it mean for US-Pakistani relations? After a week-long hiatus, the U.S. attacked another target in Pakistan's tribal areas, while Pakistani security forces are still under orders to open fire if American forces attempt to cross the Pakistan/Afghan border. Finally, it is worth noting that in making this appointment, along with that of the new corps commanders in Rawalpindi, Bahawalpur and Karachi, General Kayani (who led the ISI from 2004-2007) now has a number of individuals in key offices who owe their position to him and not to Musharraf.

"Basics" My A**

The marketing gurus have got to be kidding to come up with this product. And they call it "Back to Basics"? How about a frying pan? Anyhow, I won't be buying it until it also takes care of my shower, shaves me and brushes my teeth.

I'm Perverse

I admit it. I almost, actually, really want Sarah Palin elected Vice President so that I can watch Tina Fey make fun of her for at least four years. OK. That might be asking the country to give up a bit too much in order to humor me.

In the alternative, here is a link to Daily Kos where you can watch Saturday Night Live's Tina Fey debate "Joe Biden". For safety's sake, please wear your seat belt s0 that you don't fall on the floor from laughing.

RAILROADED!

From the Daily Kos here.

Excellent!

Great work Aden Nak for this piece!

Trust me! Check out this site.

Palin-Biden 2

Alex writes:

Alex said...

"minor victory for palin"

-- Disagree. Without even analyzing what she said [including supporting giving the VP MORE power than under Cheney], she's going to come out of it still looking like an imbecile, albeit one that memorizes talking points incredibly well. This is important for the undecideds, who respond to warm fuzzies more than substance.

However, with all the manic down home-isms, the winking, and the mindless "maverick" claims she came off as more a caricature than a candidate taking the evening seriously.

Biden, on the other hand, performed fantastically given the unique nature of the opponent. He seemed authentic, respectful, and knew when to shut up (for the most part).

This Palin performance won't win over a significant amount of the undecideds that will win the election.
October 2, 2008 11:56 PM

Palin-Biden

A friend writes:

I found this on MSNBC's comment board.

Watched the "debate" with my husband who is a McCain supporter. We
agreed to offer no comments while it was on. After about 25 minutes, he
muttered, "I can't take it any more," and left. I stayed through it all
and all I could think of was, she really IS a post turtle. You drive
down a country road and see a turtle on a post; you know it didn't get
there by itself; it doesn't belong up there; it doesn't know what to do
now that it's there; and you wonder about the guy who put it there.

Best of the Worst- The 2008 Ig Noble Prizes!

They're here! The 2008 Ig Noble Prizes were handed out last night at Harvard. Diet Coke as a Spermicide? Strippers make more money when they are ovulating? All true, according to teh best of the wrost research.

Here are the winners:

The 2008 Ig Nobel Prize Winners



NUTRITION PRIZE. Massimiliano Zampini of the University of Trento, Italy and Charles Spence of Oxford University, UK, for electronically modifying the sound of a potato chip to make the person chewing the chip believe it to be crisper and fresher than it really is.
REFERENCE: "The Role of Auditory Cues in Modulating the Perceived Crispness and Staleness of Potato Chips," Massimiliano Zampini and Charles Spence, Journal of Sensory Studies, vol. 19, October 2004, pp. 347-63.

PEACE PRIZE. The Swiss Federal Ethics Committee on Non-Human Biotechnology (ECNH) and the citizens of Switzerland for adopting the legal principle that plants have dignity.
REFERENCE: "The Dignity of Living Beings With Regard to Plants. Moral Consideration of Plants for Their Own Sake"
WHO ATTENDED THE CEREMONY: Urs Thurnherr, member of the committee.

ARCHAEOLOGY PRIZE. Astolfo G. Mello Araujo and José Carlos Marcelino of Universidade de São Paulo, Brazil, for measuring how the course of history, or at least the contents of an archaeological dig site, can be scrambled by the actions of a live armadillo.
REFERENCE: "The Role of Armadillos in the Movement of Archaeological Materials: An Experimental Approach," Astolfo G. Mello Araujo and José Carlos Marcelino, Geoarchaeology, vol. 18, no. 4, April 2003, pp. 433-60.

BIOLOGY PRIZE. Marie-Christine Cadiergues, Christel Joubert,, and Michel Franc of Ecole Nationale Veterinaire de Toulouse, France for discovering that the fleas that live on a dog can jump higher than the fleas that live on a cat.
REFERENCE: "A Comparison of Jump Performances of the Dog Flea, Ctenocephalides canis (Curtis, 1826) and the Cat Flea, Ctenocephalides felis felis (Bouche, 1835)," M.C. Cadiergues, C. Joubert, and M. Franc, Veterinary Parasitology, vol. 92, no. 3, October 1, 2000, pp. 239-41.

MEDICINE PRIZE. Dan Ariely of Duke University, USA, for demonstrating that high-priced fake medicine is more effective than low-priced fake medicine.
REFERENCE: "Commercial Features of Placebo and Therapeutic Efficacy," Rebecca L. Waber; Baba Shiv; Ziv Carmon; Dan Ariely, Journal of the American Medical Association, March 5, 2008; 299: 1016-1017.
WHO ATTENDED THE CEREMONY: Dan Ariely

COGNITIVE SCIENCE PRIZE. Toshiyuki Nakagaki of Hokkaido University, Japan, Hiroyasu Yamada of Nagoya, Japan, Ryo Kobayashi of Hiroshima University, Atsushi Tero of Presto JST, Akio Ishiguro of Tohoku University, and Ágotá Tóth of the University of Szeged, Hungary, for discovering that slime molds can solve puzzles.
REFERENCE: "Intelligence: Maze-Solving by an Amoeboid Organism," Toshiyuki Nakagaki, Hiroyasu Yamada, and Ágota Tóth, Nature, vol. 407, September 2000, p. 470.
WHO ATTENDED THE CEREMONY: Toshiyuki Nakagaki, Ryo Kobayashi, Atsushi Tero

ECONOMICS PRIZE. Geoffrey Miller, Joshua Tybur and Brent Jordan of the University of New Mexico, USA, for discovering that a professional lap dancer's ovulatory cycle affects her tip earnings.
REFERENCE: "Ovulatory Cycle Effects on Tip Earnings by Lap Dancers: Economic Evidence for Human Estrus?" Geoffrey Miller, Joshua M. Tybur, Brent D. Jordan, Evolution and Human Behavior, vol. 28, 2007, pp. 375-81.
WHO ATTENDED THE CEREMONY: Geoffrey Miller and Brent Jordan

PHYSICS PRIZE. Dorian Raymer of the Ocean Observatories Initiative at Scripps Institution of Oceanography, USA, and Douglas Smith of the University of California, San Diego, USA, for proving mathematically that heaps of string or hair or almost anything else will inevitably tangle themselves up in knots.
REFERENCE: "Spontaneous Knotting of an Agitated String," Dorian M. Raymer and Douglas E. Smith, Proceedings of the National Academy of Sciences, vol. 104, no. 42, October 16, 2007, pp. 16432-7.
WHO ATTENDED THE CEREMONY: Dorian Raymer

CHEMISTRY PRIZE. Sharee A. Umpierre of the University of Puerto Rico, Joseph A. Hill of The Fertility Centers of New England (USA), Deborah J. Anderson of Boston University School of Medicine and Harvard Medical School (USA), for discovering that Coca-Cola is an effective spermicide, and to Chuang-Ye Hong of Taipei Medical University (Taiwan), C.C. Shieh, P. Wu, and B.N. Chiang (all of Taiwan) for discovering that it is not.
REFERENCE: "Effect of 'Coke' on Sperm Motility," Sharee A. Umpierre, Joseph A. Hill, and Deborah J. Anderson, New England Journal of Medicine, 1985, vol. 313, no. 21, p. 1351.
REFERENCE: "The Spermicidal Potency of Coca-Cola and Pepsi-Cola," C.Y. Hong, C.C. Shieh, P. Wu, and B.N. Chiang, Human Toxicology, vol. 6, no. 5, September 1987, pp. 395-6. [NOTE: THE JOURNAL LATER CHANGED ITS NAME. NOW CALLED "Human & experimental toxicology"]
WHO ATTENDED THE CEREMONY: Deborah Anderson, and C.Y. Hong's daughter Wan Hong

LITERATURE PRIZE. David Sims of Cass Business School. London, UK, for his lovingly written study "You Bastard: A Narrative Exploration of the Experience of Indignation within Organizations."
REFERENCE: "You Bastard: A Narrative Exploration of the Experience of Indignation within Organizations," David Sims, Organization Studies, vol. 26, no. 11, 2005, pp. 1625-40.
WHO ATTENDED THE CEREMONY: David Sims

Biden-Palin Debate

Sarah Palin was prepped within an inch of her life and it showed. While nothing can overcome the ignorance she exhibited in her carious television appearances during the past few weeks, she made no major mistakes. Since prior to the debate the bar for her performance was set so low she would have had to walk onstage backwards and naked to make what would have been considered a major error. The fact is Palin made no major error.

For his part, Biden was in a difficult position. He had to approach Palin carefully: attack but not be a brute, talk but not be a gas bag. He accomplished both of his objectives.

In ordinary circumstances this would have been a draw, but since Palin was expected to perform like a drooling idiot, and didn't, the final score was a minor victory for Palin.

More Fun in A Totalitarian State-Life in China

Like all totalitarian states, the Chinese government fears all information that it doesn't control. One of the greatest sources of information today is , of course the internet and the Chinese government does its best to monitor and control its citizens.

Here's a little item on China and fear.

If you're an authoritarian government that closely monitors your citizens' online communications, here's a tip from Ars Technica: tell your minions not to store the logs on publicly-accessible servers. This is exactly what China has done with information pulled from the TOM-Skype network, leading a handful of researchers to discover that China is logging text messages and analyze the country's behavior with regards to the online monitoring and censorship of citizens. In a joint report between ONI Asia and the Information Welfare Monitor, author Nart Villeneuve details evidence that China not only monitors and logs text chat, but also targets specific users for further monitoring.
Related Stories

The report published yesterday, titled "BREACHING TRUST: An analysis of surveillance and security practices on China's TOM-Skype platform" (PDF), explains that full chat text messages from TOM-Skype users were found on insecure, publicly-accessible web servers along with the encryption key required to decrypt the data (TOM Online is Skype's operating partner in China). This—along with "millions of records containing personal information" such as IP address, usernames, and landline phone numbers—were stored along with additional data detailing Skype users outside of China who have communicated with TOM-Skype users in China.

"The captured messages contain specific keywords relating to sensitive political topics such as Taiwan independence, the Falun Gong, and political opposition to the Communist Party of China," reads the report. Villeneuve explains that the surveillance doesn't stop there, either. According to the groups' analysis, many of the captured messages contain content that falls outside of typically-censored words or topics, "suggesting that there may be criteria, such as specific usernames, that determine whether messages are captured by the system." Translation: If you're the type who regularly talks about unapproved topics on Skype, you may be flagged for further monitoring of everything you say.

Sarah Loves the Supremes!(They had Big Hits in the 60s, Right?)

She Gets All The News She Needs From the Weather Report

Problems With George?

And according to this in The Hill some don't like the Soros Solution:

Robert Shapiro, chairman of Sonecon, an economic advisory firm, who served as Commerce Department undersecretary during the Clinton administration, raised questions about Soros’s proposal.

He said that if the government bought stock in troubled firms, a problem would arise regarding how Uncle Sam would be represented as a shareholder.

“How does the government vote the shares?” he asked. “It puts them in a potential conflict of interest. Regulatory interests may hurt the bottom line.”

Why Dems Balked

Democrat Congressman Brad Sherman of California had his reasons for voting "no" on teh bailout, and he circulated this influential memo to fellow Dems:

TAXPAYERS HIGHLY UNLIKELY TO RECOUP ANY OF THE COSTS -- Brad Sherman 9/29/08

We know that the Bailout Bill allows million-dollar-a-month salaries to executives of bailed-out firms, and it allows hundreds of billions to be used to buy toxic assets currently held by foreign investors. But we are told: "don't worry, this $700 billion bill won't cost us anything. We will get it all back next decade through a revenue bill."

I. Section 134 of the Bailout Bill merely says that the President must submit a revenue bill to Congress in 2013 that recoups from the financial industry the taxpayers' net losses.

a. If the President has any revenue ideas he actually likes, he would submit them to us anyway.
b. If the President submits revenue ideas only because he is forced to by Section 134, he will send it to us with a note saying that he believes they are bad for the country, and reserves the right to veto.
c. The Bailout Bill does not automatically enact any revenue increases, nor protect a revenue bill from filibuster or veto.

II. Congress is unlikely to pass a tax increase bill of hundreds of billions of dollars in 2013.

a. Tax increase bills are anathema to many.
b. 41 Senators can block the plan. We're giving Wall Street enough money to hire 4100 lobbyists.
c. In recent years, Wall Street has easily defeated every attempt to close every loophole that they exploit, no matter how pernicious-even the abusive use of Cayman Island tax havens by hedge fund managers, who thereby pay zero tax.

III. Any tax on the financial industry would make the good banks pay a huge tax so we can recoup what we gave to the bad banks.

a. Section 134 says the tax will be on "the financial industry." It does not provide for a tax on just those firms that received bailout payments.
b. A bank that doesn't get a bailout payment still pays the tax.
c. Community banks and perhaps credit unions will also be subject to the tax, so we can recoup what we gave to Wall Street.

IV. It is impossible to draft a tax that hits only those firms that received bailout payments, and even more impossible to draft one that taxes each bank in proportion to how much money we lost on its toxic assets.

a. There are no provisions to even keep track of losses on each asset purchased as it is managed over the years. Assets purchased from several
banks will be pooled, managed, and sold together, and we can never know how much we lost on assets purchased from any one bank.
b. If three banks in the year 2013 have the same income and size and operations, they will all pay the same tax-even if one got no bailout payments, a second got a million dollars, and a third got a billion dollars.
c. Many bailed-out firms won't exist in 2013.

1. Some will go under.
2. Some bailed-out firms are only shell companies. Example: Assume the Bank of Shanghai has $30 billion in toxic assets. It will sell these to the tiny subsidiary it has incorporated in California. The subsidiary will then sell these to the Treasury in 2009, and will be dissolved long before 2013.
3. Many bailed-out firms will still be unprofitable in 2013.
4. Some bailed-out firms will move offshore before 2013.

d. The whole purpose of the bill is to improve the balance sheets of the bailed-out firms. If particular bailed-out firms owe us the money they receive, they would have to list this as a liability, and the bill would fail to improve their balance sheets.

In 2013 we will not pass a tax bill that imposes hundreds of billions of dollars of taxes on the financial services industry, including those banks that got no bailouts, community banks, and credit unions. A tax bill imposed only on those entities that got bailout payments is impossible to draft, and contrary to the purposes of the Bill.

If it were easy to pass a bill to recoup hundreds of billions of dollars through taxes to be imposed in 2013 and thereafter, then provisions imposing such taxes would be in today's bill.

Wall Street gets their money now, and we get it back never.

When George Soros Talks-- Everybody-Especially Dems-Listen

George Soros is not a big fan of the Hank Paulson bailout plan, even as tweaked by both the Democrats and the Republicans.

Take a look st this Financial Times op-ed piece. (Register free of charge at the FT website)

Soros states:

Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of twelve - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.

This is how it would work. The Treasury secretary would rely on bank examiners rather than delegate implementation of Tarp to Wall Street firms. The bank examiners would establish how much additional equity capital each bank needs in order to be properly capitalised according to existing capital requirements. If managements could not raise equity from the private sector they could turn to Tarp.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Here is the entire article.


Recapitalise the banking system

By George Soros

Published: October 1 2008 02:05 | Last updated: October 1 2008 02:05

The emergency legislation currently before Congress was ill-conceived – or more accurately, not conceived at all. As Congress tried to improve what Treasury originally requested, an amalgam plan has emerged that consists of Treasury’s original Troubled Asset Relief Programme (Tarp) and a quite different capital infusion programme in which the government invests and stabilises weakened banks and profits from the economy’s eventual improvement. The capital infusion approach will cost tax payers less in future years, and may even make money for them.

Two weeks ago the Treasury did not have a plan ready – that is why it had to ask for total discretion in spending the money. But the general idea was to bring relief to the banking system by relieving banks of their toxic securities and parking them in a government-owned fund so that they would not be dumped on the market at distressed prices. With the value of their investments stabilised, banks would then be able to raise equity capital.

The idea was fraught with difficulties. The toxic securities in question are not homogenous and in any auction process the sellers are liable to dump the dregs on to the government fund. Moreover, the scheme addresses only one half of the underlying problem – the lack of credit availability. It does very little to enable house owners to meet their mortgage obligations and it does not address the foreclosure problem. With house prices not yet at the bottom, if the government bids up the price of mortgage backed securities, the taxpayers are liable to loose; but if the government does not pay up, the banking system does not experience much relief and cannot attract equity capital from the private sector.

A scheme so heavily favouring Wall Street over Main Street was politically unacceptable. It was tweaked by the Democrats, who hold the upper hand, so that it penalises the financial institutions that seek to take advantage of it. The Republicans did not want to be left behind and imposed a requirement that the tendered securities should be insured against loss at the expense of the tendering institution. The rescue package as it is now constituted is an amalgam of multiple approaches. There is now a real danger that the asset purchase programme will not be fully utilised because of the onerous conditions attached to it.

Different focus

‘Tarp’s adverse consequences could be mitigated by using taxpayers’ funds more effectively. If Tarp invested in preference shares with warrants attached, private investors, including me, would jump at the opportunity’

Nevertheless, a rescue package was desperately needed and, in spite of its shortcomings, it would change the course of events. As late as last Monday, September 22, Treasury secretary Hank Paulson hoped to avoid using taxpayers’ money; that is why he allowed Lehman Brothers to fail. Tarp establishes the principle that public funds are needed and if the present programme does not work, other programmes will be instituted. We will have crossed the Rubicon.

Since Tarp was ill-conceived, it is liable to arouse a negative response from America’s creditors. They would see it as an attempt to inflate away the debt. The dollar is liable to come under renewed pressure and the government will have to pay more for its debt, especially at the long end. These adverse consequences could be mitigated by using taxpayers’ funds more effectively.

Instead of just purchasing troubled assets the bulk of the funds ought to be used to recapitalise the banking system. Funds injected at the equity level are more high-powered than funds used at the balance sheet level by a minimal factor of twelve - effectively giving the government $8,400bn to re-ignite the flow of credit. In practice, the effect would be even greater because the injection of government funds would also attract private capital. The result would be more economic recovery and the chance for taxpayers to profit from the recovery.

This is how it would work. The Treasury secretary would rely on bank examiners rather than delegate implementation of Tarp to Wall Street firms. The bank examiners would establish how much additional equity capital each bank needs in order to be properly capitalised according to existing capital requirements. If managements could not raise equity from the private sector they could turn to Tarp.

Tarp would invest in preference shares with warrants attached. The preference shares would carry a low coupon (say 5 per cent) so that banks would find it profitable to continue lending, but shareholders would pay a heavy price because they would be diluted by the warrants; they would be given the right, however, to subscribe on Tarp’s terms. The rights would be tradeable and the secretary of the Treasury would be instructed to set the terms so that the rights would have a positive value.

Private investors, including me, are likely to jump at the opportunity. The recapitalised banks would be allowed to increase their leverage, so they would resume lending. Limits on bank leverage could be imposed later, after the economy has recovered. If the funds were used in this way, the recapitalisation of the banking system could be achieved with less than $500bn of public funds.

A revised emergency legislation could also provide more help to homeowners. It could require the Treasury to provide cheap financing for mortgage securities whose terms have been renegotiated, based on the Treasury’s cost of borrowing. Mortgage service companies could be prohibited from charging fees on foreclosures, but they could expect the owners of the securities to provide incentives for renegotiation as Fannie Mae and Freddie Mac are already doing.

Banks deemed to be insolvent would not be eligible for recapitalization by the capital infusion programme, but would be taken over by the Federal Deposit Insurance Corporation. The FDIC would be recapitalised by $200bn as a temporary measure. FDIC, in turn could remove the $100,000 limit on insured deposits. A revision of the emergency legislation along these lines would be more equitable, have a better chance of success, and cost taxpayers less in the long run.

The writer is chairman of Soros Fund Management

Copyright The Financial Times Limited 2008