Each morning, Bill Scher and Terrance Heath serve up what progressives need to affect change on the kitchen-table issues families face: jobs, health care, green energy, financial reform, affordable education and retirement security.
Fed Poised To Act
"Bernanke Signals Intent to Further Spur Economy" in Friday AM speech. NYT: "Mr. Bernanke noted that 'unconventional policies have costs and limitations that must be taken into account in judging whether and how aggressively they should be used.' But he suggested that the Fed was prepared to manage the risks associated with the most powerful tool remaining in the Fed’s arsenal of weapons to stimulate the economy: vast new purchases of government debt to lower long-term interest rates ... Mr. Bernanke addressed a criticism made about the potential for new asset purchases, that they would 'reduce public confidence in the Fed’s ability to execute a smooth exit from its accommodative policies at the appropriate time.' Such a reduction in confidence, “even if unjustified,” could lead to an undesirable increase in inflation expectations, he said. For now, inflation appears remote."
OurFuture.org's Dave Johnson reports from Michigan "Keep It Made In America" town hall: "[Michigan] Congressman Mark Schauer [said] 'Cash for Clunkers invested in auto industry, got our steel plant to reopen, 3 shifts of workers now here in Jackson. We need to do more of that, fight for jobs in Michigan..."
Rachel Maddow busts Chamber of Commerce for attacks ads blaming Dems for job losses, while actively promoting outsourcing.
What Debt Crisis? Debt Costs At Record Low
Wharton professor Richard Voith says "now is a good time for government to borrow and invest" in infrastructure, in W. Post oped: "Yes, the national debt as a percentage of GDP is historically high, but that may not be the most valid measure. The actual cost of servicing the national debt as a percentage of GDP is lower than it has been since 1980. That's because interest rates are at levels not seen since the mid-1950s ... A new high-speed rail system might be unattractive from a cost-benefit standpoint at 7 percent rates, but quite appealing at 3 percent."
Simon Johnson argues that no deficit reduction will happen without additional bank reform.: "...the simple fact of the matter is that our fiscal position has been ruined by the behavior of big banks — and these banks are now free to make the same or larger mistakes as we head into the next credit cycle."
In Sen. Jim DeMint's blockage of an earmark to deepen the Port of Charleston, Washington Monthly's Steve Benen finds the limits of Tea Party ideology: "...his conservative fans in South Carolina aren't at all pleased, since they're suffering the consequences of DeMint's ideology. Of course, they agree with that ideology when DeMint is blocking funding for other people. But with South Carolina poised to lose billions of dollars in commerce and thousands of jobs, even South Carolina Tea Partiers are discovering the limits of their worldview. ...What the right generally refuses to realize is that the same sentiment could be expressed for just about every spending project."
David Sirota explains "Why It's So Hard to Slash the Bloated Pentagon Budgets": "The latest talking point du jour has been around in one form or another for years. It asks us to forget that A) America spends more on defense than every other major nation combined and B) the Pentagon, whose annual budget is now approaching World War II levels in inflation-adjusted terms, has lost track of trillions of taxpayer dollars. In light of those troubling truths, we are nonetheless urged by Beltway Republicans to focus on the fact that defense spending is '4.9 percent of our gross domestic product, significantly below the average of 6.5 percent since World War II,' as a recent Wall Street Journal editorial proclaimed."
Push To Boost Social Security Checks
House will try to give seniors bonus checks to make up for lack of Social Security cost-of-living increase this year. AP: "... the House will vote in November — after congressional elections — to provide $250 payments to Social Security recipients, House Speaker Nancy Pelosi said. But even if Pelosi can get the House to pass the proposal, it faces opposition in the Senate."
Dean Baker rips NYT's Roger Cohen for praising French plans to raise retirement age: "The headline and discussion in the article focus on a raise in the retirement age from 60 to 62. Cohen argues that this is necessary because life expectancy has risen 15 years since 1950. Age 60 is not in fact the age for getting full retirement benefits in the French Social Security system. It is age 65. Age 60 is an early retirement age at which it is possible to retire with reduced benefits ... The 15 year increase in life expectancy is also deceptive. The implication is that the French expect to be retired on average for 15 years more than in 1950. Actually, much of the increase is due to reduced infant mortality rates."
Foreclose Fears Spread
Obama administration response to foreclosure fraud scandal is "agency-by-agency," not "big fix." Bloomberg: "Obama this week endorsed a coordinated investigation by attorneys general from all 50 states ... Mounting a response on the federal level is complicated by the fact that responsibility for overseeing housing finance and foreclosure law is fragmented among U.S., state and local agencies, with no single regulator shaping policy ... the Office of the Comptroller of the Currency ... has directed seven of the nation’s largest servicers to review their foreclosure processes ... The FDIC has started an independent review of banks with which it shares loan losses and won’t make payments if it finds foreclosures were conducted unlawfully ... The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, the largest sources of mortgage funding, has asked loan servicers to make sure they’re complying with the law..."
NYT's Paul Krugman calls for more aggressive federal action: " The excesses of the bubble years have created a legal morass, in which property rights are ill defined because nobody has proper documentation. And where no clear property rights exist, it’s the government’s job to create them. That won’t be easy, but there are good ideas out there. For example, the Center for American Progress has proposed giving mortgage counselors and other public entities the power to modify troubled loans directly..."
NYT edit board calls for empowering judges to help borrowers: "The big weaknesses in the administration’s main antiforeclosure policy is that participation by lenders is voluntary and homeowners have little leverage to get better terms — especially reductions in loan principal when the mortgage balance is greater than the value of the home. One way to change that would be for Congress to reform the bankruptcy law so troubled borrowers could turn to the courts for a loan modification if banks were uncooperative."
Markets shudder at depth of foreclosure fraud scandal: "...several traders said nerves were frazzled further by worries that banks could face much bigger mortgage related losses, not from foreclosures, but because of questions about how the money was lent in the first place. If it turns out that mortgages were bundled together and sold improperly, more holders could sue the banks and force them to buy back tens of billions in mortgage-backed securities."
NYT profiles the lawyer who first spotted the roots of the foreclosure fraud scandal: "Mr. Cox vowed to a colleague that he would expose GMAC’s process and its limited signing officer, Jeffrey Stephan ... A few weeks later, he spelled out in a court filing what he had learned from the robo-signer: 'When Stephan says in an affidavit that he has personal knowledge of the facts stated in his affidavits, he doesn’t. When he says that he has custody and control of the loan documents, he doesn’t. When he says that he is attaching "a true and accurate" copy of a note or a mortgage, he has no idea if that is so, because he does not look at the exhibits. When he makes any other statement of fact, he has no idea if it is true. When the notary says that Stephan appeared before him or her, he didn’t.'"
Massive electronic mortgage service company may be illegal. Self-evident: "Christopher Peterson is a law professor at the University of Utah. In a pair of papers, one published last summer and one not yet published, he makes a compelling case that the Mortgage Electronic Registration System (MERS) ought to be illegal — and arguably is already ... 60% of all mortgages in the U.S. today are legally 'owned' by MERS, a Delaware corporation with approximately zero employees. Now, in order for the owner of a mortgage to perform certain legal actions — like 'conveying an interest' in the land — some states require the signature of a 'Vice President'..."
The Nation's Alex Ulam criticizes Bank Of America-Countrywide settlement, warns state AGs not to repeat mistake in foreclosure fraud investigation: "The settlement's most fatal flaw may be its failure to cover second liens [which] would have improved the prospects for victims of Countrywide's predations. Federal officials and mortgage analysts have identified second liens as a major factor in at least half the mortgages in danger of default ... The attorneys general seem to have left this gaping loophole for pure expediency. 'We do allege misconduct related to the origination of second liens ... ,' says the California AG official. 'However, for purposes of settling the case, we wanted to craft a settlement that, while not perfect, would have the most effective chance of saving homeowners as quickly as possible.' ... Now state attorneys general might finally have an opportunity to help the thousands of defrauded Countrywide borrowers who have fallen through the cracks."
Settlement may be near between Countrywide and SEC. NYT: "The lawsuit was to go to trial on Tuesday in federal district court in Los Angeles. But late Thursday, the judge in the case scheduled a status conference for 11 a.m. Pacific time on Friday, an unusual development for a case that was about to begin jury selection in a few days."
Florida judges split on how to deal with foreclosure fraud. W. Post: "Judges in Florida are under pressure to clear their foreclosure dockets; the state's crippled real estate market and its lagging economy cannot recover until cases work their way through the courts ... [But] some are warning that churning through cases so quickly could mean overlooking fraudulent documents and prematurely seizing homes, perhaps depriving borrowers of due process."
Stimulus Saved Clean Energy Jobs
"Recovery Act Saved 40,000 American Wind Industry Jobs" notes American WInd Energy Alliance's Denise Bode, at Wonk Room: "...the Recovery Act’s 1603 tax credit has been one of the most effective public policies in existence for saving American jobs [and] led to a record-breaking year of 10,000 megawatts (MW) of new wind in 2009 ... Unfortunately, the program is set to expire at the end of 2010. Unlike oil, gas, coal, and nuclear industries who have permanent incentives, renewable energy industries will be stalled again unless Congress acts soon to extend the program into 2011 and 2012."
Top GOPers attack EPA over coming greenhouse gas rules. The Hill: "The top Republican on the House Energy and Commerce Committee is accusing the Environmental Protection Agency of rolling out air pollution rules that will cost various industries billions of dollars without fully weighing the economic effects ... EPA Administrator Lisa Jackson recently said opponents of Clean Air Act rules have long warned of 'doomsday' scenarios, when in fact the benefits of programs under the statute have far outweighed the costs."
Sen. Kent Conrad backs bipartisan renewable energy bill, reports The Hill: "The bill currently has 32 co-sponsors, including a few Republicans. But the outlook for any energy bill in the crowded post-election session is uncertain."
Coalition for Green Capital's Martha Duggan promotes "Green Bank": "...the time is now for the creation of a federal clean energy financing institution (a "Green Bank") which would lower the cost of clean energy. We do not need to take the unpopular route of making carbon-intensive energy more expensive. Instead we can make clean energy sources more affordable. The energy sector has huge potential for new investment and widespread expansion, and this potential can only be realized if this sector is provided with the proper incentives."
"Republican Global Warming Deniers Funded By Energy Industry" reports HuffPost's Lucia Graves: "...HuffPost found [Pennsylvania Senate canidiate Pat] Toomey's top contributors include oil and coal giants Koch Industries ($15,000) and Murray Energy ($16,655). Those are the top two contributors of climate change skeptic Sen. Jim Inhofe (R-Okla.) who received $45,500 and $30,600 from those companies respectively ... The only other Senate candidates whose top contributors include these two companies are global warming deniers David Vitter (R - La.), John Hoeven (R - N.D), and Jim DeMint (R-S.C.)."
Breakfast Sides
NYT analysis sees mixed results for Tea Party candidates: "...33 Tea Party-backed candidates are in tossup races or running in House districts that are solidly or leaning Republican, and 8 stand a good or better chance of winning Senate seats. While the numbers are relatively small, they could exert outsize influence, putting pressure on Republican leaders ... Tea Party nominees have performed better than expected in many cases ... But as establishment Republicans feared, the Tea Party has also handed opportunities to the Democrats by nominating candidates who have struggled ... There does not appear to be any case where a Tea Party candidate has helped make a Democratic-leaning [House] district more competitive for Republicans."
Conservative activist judge accepts conservative argument that health reform law in unconstitutional. NYT: "Judge Vinson, a senior judge who was nominated by President Ronald Reagan, indicated last month that he would let the case proceed. In Thursday’s opinion, he formally rejected the federal government’s motion to dismiss the suit. It now proceeds to a full hearing on the constitutional issues on Dec. 16 ... Last week, a federal judge in Michigan became the first to rule on the merits, deciding that the insurance requirement was constitutional ... it is entirely possible, and perhaps probable, that the appellate courts will wind up contemplating conflicting opinions from below."
