Geithner Defends His Tenure
Geithner defends bailouts in wide-ranging NYT interview: "Elizabeth Warren [wrote] that Geithner 'believed the government’s most important job was to provide a soft landing for the tender fannies of the banks.' ... As for the argument that he didn’t focus on the homeowners, Geithner said that’s a myth ... listing TARP housing programs, a lending program to state and local housing-finance authorities and the mortgage-modification-guarantee program ... if they had full control over the government-sponsored enterprises and the Federal Housing Administration, which insures many mortgages, 'absolutely, we could have done dramatically more ... But that’s not the real world. In the real world we had to act within the constraints we faced and the limits of the authority we had.'"
AP reviews early copy of Geithner's book "Stress Test": " He writes that it would have been impossible to fix the economy without first shoring up the banking system and restoring confidence. This, he writes, was the most urgent task. A banking panic would have defeated the administration's efforts to help the economy recover."
Krugman notes the aftermath of the crash has only enriched the top: "Conservatives want you to believe that the big rewards in modern America go to innovators and entrepreneurs, people who build businesses and push technology forward. But that’s not what those hedge fund managers do for a living; they’re in the business of financial speculation ... Total catastrophe was avoided by bailing out banks at taxpayer expense, but we’re still nowhere close to making up for job losses in the millions and economic losses in the trillions. Given that history, do you really want to claim that America’s top earners — who are mainly either financial managers or executives at big corporations — are economic heroes?"
There's still no housing recovery, argues Peter Dreier in NYT oped: "...9.8 million households still owe more on their mortgages than the market value of their homes. That’s one-fifth of all mortgaged homes. Without government intervention, many of them are at risk of joining the almost five million households that have already suffered through foreclosure since the housing bubble burst in 2007 ... The Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, has refused to allow these two mortgage giants to reduce the principal on underwater mortgages that they own or guarantee. All it would take is for President Obama’s new appointee as F.H.F.A. director, former Representative Melvin Watt, to change the policy..."
Warren explains why the market meltdown made her run for the Senate, in The Nation: "Big banks give their regulators certified financial statements every three months, year after year, showing that the bank is in good shape. Meanwhile, they sell billions of dollars’ worth of mortgages that stink to high heaven, dress those mortgages up in phony-baloney AAA-rated wrapping paper, and peddle them to retirement funds and local governments across the country. Then the banks suddenly need tens of billions of dollars in government money just to stay afloat. The government gives the banks that money, but never puts major resources and manpower into finding out whether the sudden, gaping holes in the banks’ balance sheets were caused—at least in part—by illegal activity."
Bernie '16?
The Nation hosts live-streamed "Project 45" conversation with Sen. Bernie Sanders in Northhampton, MA tonight: "'Somebody has got to represent the working-class and the middle-class of this country in standing up to the big-money interests who have so much power over the economic and political life of this country.' That’s from Bernie Sanders, the progressive firebrand and independent senator from Vermont who recently hinted at a possible 2016 presidential bid. Friday, from 7-10pm, tune in to hear Sanders in conversation with The Nation’s John Nichols in Northampton, Massachusetts." Click here to attend in person.
House Hypocrisy On Tax Breaks
WH promises veto of House tax break bill. National Journal: "Despite a White House veto threat, the GOP-led House plans to vote Friday on a bill making permanent a research-and-development tax credit for businesses—without offsetting the $156 billion cost over the next decade. The White House and some Democrats who oppose the measure as-is have acknowledged they support the aim, but they won't back the bill because they say it represents a case of political inconsistency—if not hypocrisy. They point out that Republicans continue to insist that an extension of long-term unemployment insurance be fully paid for."
Senate Finance Chair Ron Wyden moves on offshore tax shelters. The Hill: "Top congressional Democrats said Thursday that they wanted to move quickly to combat a practice that allows corporations to slash their taxes by shifting their legal address abroad. Finance Chairman Ron Wyden (D-Ore) said he wants to 'take some short-term steps' to battle the practice known as inversion, while also dealing with in the broader context of rewriting the tax code ... A Democratic aide said the plan would be modeled after a proposal in President Obama’s latest budget, which essentially seeks to stop bigger companies from taking over smaller foreign ones for tax purposes."
Obama Takes More Steps To Protect Climate
Obama to announce executive actions on climate. NYT: "On Friday, they will include new energy conservation standards for devices like conveyor belts and escalators and one for walk-in coolers and a program to replace outdoor public lighting with energy-efficient alternatives in five cities. He will also set a goal to save $2 billion in three years by increasing energy efficiency in federal buildings, and he will promote an Energy Department program to provide solar industry training at community colleges."
WH completes rooftop solar installation. W. Post: "The administration only provided a few details about the new project, saying every component was made in America and it would pay for itself in energy savings over the next eight years."
Still no deal to advance Senate energy-efficiency bill. The Hill: "Senate Majority Leader Harry Reid (D-Nev.) chided Republican leadership Thursday for refusing to agree to the stand-alone Keystone XL vote, and holding up the process, while Senate Minority Leader Mitch McConnell (R-Ky.) attacked Reid for not allowing Republicans to put forward a single energy amendment ... [But] Sen. Rob Portman (R-Ohio) said he is working with lawmakers on both sides of the aisle to come to an agreement on a few amendments ... The Senate is scheduled to vote to end debate on the measure Monday."
Natural gas exports are the main sticking point, says The Hill: "Republicans argue exporting U.S. natural gas will reduce Russian President Vladimir Putin’s leverage over Europe, and bolster Ukraine’s ability to stand up to his pressure. They also argue that it will be good for the U.S. economy. Democrats, however, argue allowing more exports could raise energy costs in the U.S. and hurt the economy and jobs ... members of both parties now say a prospective deal on moving the energy efficiency bill depends on solving the natural gas fight ..."
NC Senate Race Heats Up
Republican Senate nominee in NC opposed raising minimum wage in 2010. The Hill: "...responding to a North Carolina FreeEnterprise Foundation candidate questionnaire four years ago, [Thom Tillis] circled 'disagree' when asked on the survey if he thought North Carolina's General Assembly should raise the minimum wage ... That's a much less equivocal response than what the Senate nominee gave on Wednesday to MSNBC's Chuck Todd..."
Incumbent Dem Sen. Kay Hagan embraces Obamacare Medicaid expansion. HuffPost: "During a Senate confirmation hearing for Health and Human Services nominee Sylvia Burwell, Hagan lamented that leaders of her home state decided to opt out of Medicaid expansion under the Affordable Care Act ... Hagan also got Burwell to clearly state how much it would have cost North Carolina to cover newly eligible Medicaid recipients if the state had expanded its program under Obamacare: Nothing."
Breakfast Sides
Former Obama admin Medicare chief running for MA governor on single-payer platform. Vox: "Don Berwick's last job was running Obamacare's implementation at the Department of Health and Human Services, where Republicans berated the former doctor for supporting the British health service. His next goal: bringing single-payer health care to Massachusetts ... He says he settled on the idea when he was thinking through the different goals he wanted to achieve — slower health care cost growth, better quality care — all seemed most attainable when the government was the one paying everybody's health care costs."
"Obama flexing his executive muscle on immigration reform" reports The Hill: "The administration has moved via executive branch authority on numerous fronts in recent days to improve access to education for illegal immigrants and loosen visa restrictions for some foreign workers. Those steps come as Homeland Security Secretary Jeh Johnson conducts a separate review of immigration policy at the president's direction, and is reportedly weighing an administrative move to curtail deportations.
