Representatives of Governor Jindal admitted today that the Katrina rescue story that he told during his response to President Barack Obama’s Congressional address last Tuesday was false.  Apparently, Jindal overheard Sheriff Lee telling the story about trying to rescue victims of Katrina and being prevented by “some government bureaucrat” to a reporter and Jindal commandeered the story and inserted himself into the fact pattern even though he was over 75 miles away from the scene at the time the event occurred.  Another tidbit, turns out that the guy Jindal has chosen to be the hero of his shakespearean tale is not exactly made up of hero material.  Sheriff Harry Lee was accused of preventing black folks from crossing the bridge to safety based purely on the fact that they didn’t meet the demographic of  Jefferson parish which is a community not exactly known for its diversity.  See Sheriff Lee in all his glory below.

See Peter Orzag’s blueprint of the 2010 budget and outlines our way to fiscal reponsibility.

The Fiscal Year 2010 Budget

This Budget puts us back on a road toward economic and fiscal health by:

• Being honest. If this Budget used the gimmicks employed in recent budgets, it would show a bottom line that would appear about $2.7 trillion better over ten years. For example, these other budgets didn’t include the likely cost of natural disasters or the cost of permanently continuing the temporary patch that prevents millions of Americans from paying the Alternative Minimum Tax. Using gimmicks may make good politics temporarily, but it doesn’t help move the nation forward.
   
• Cutting the deficit in half by the end of the President’s first term.  We inherited a deficit of $1.3 trillion or 9% of GDP in fiscal 2009. Even though we increase the 2009 deficit to give the economy a desperately needed jolt, over subsequent years we reduce the deficit by more than half by 2013, the end of the president’s first term: to $533 billion or 3.0% of GDP. As I mentioned above, we inherited a path of projected deficits adding up to $9 trillion over the next ten years – and our policy proposals will reduce those projected deficits by more than $2 trillion.     
   
• Reforming health care. At the President’s direction, we have begun the process of doing a line-by-line review of the Budget.  One of the lines we’ve started with is among the most important to the budget and to many other aspects of our economy: health care.As I have long said, health care is the key to our nation’s fiscal future – and there are substantial efficiency improvements that are possible to deliver better results at lower costs in the health system. In the Recovery Act and in this Budget, we begin to make the investments necessary to bring about these efficiencies over the long-term—such electronic health records and comparative effectiveness research—and also identify more immediate saving measures to slow the growth of Medicare and Medicaid spending. These savings are devoted to a health reserve fund, which will be available as we work through the legislative process on health care reform this year. This proposal is a starting point, not an ending point, for health reform as additional resources will be needed to improve and expand health care for all Americans.
   

• Making key investments. The Budget also makes key investments in education, energy, and infrastructure. It invests in early childhood education;makes Pell Grants for college into a reliable source of support for students and indexes their value above the ordinary rate of inflation so as to better keep up with the rapidly rising cost of college tuition; and helps at-risk students complete college.  The Budget also lays down a comprehensive approach to transform our energy supply and slow global climate change. And it makes infrastructure investments that will provide our nation a foundation for long-term economic growth.

President Obama explained today how his administration will bring us out of this economic down turn and how he will pay for it through eliminating government waste and tax loopholes for the wealthy.  The President plans to reduce the deficit by fifty percent at the end of his first term.  See full comments below.

REMARKS BY THE PRESIDENT
ON THE FISCAL YEAR 2010 BUDGET
Dwight D. Eisenhower Executive Office Building, Room 350
February 26, 2009

9:55 A.M. EST

THE PRESIDENT:  Before I begin, I have some good news to report.  Starting today, the recently unemployed will benefit from a COBRA subsidy that will make health care affordable.  At a time when health care is too often too expensive for the unemployed, this critical step will help 7 million Americans who’ve lost their jobs keep their health care.  That’s 7 million Americans who will have one less thing to worry about when they go to sleep at night.  Equally important, it prevents a further downward spiral in our economy by ensuring that these families don’t fall further behind because of mounting health care bills.  And it is a direct result of the American Recovery and Reinvestment Act that I signed into law the other week — a recovery plan that has only just begun to yield benefits for the American people. 

But while we must add to our deficits in the short term to provide immediate relief to families and get our economy moving, it is only by restoring fiscal discipline over the long run that we can produce sustained growth and shared prosperity.  And that is precisely the purpose of the budget I’m submitting to Congress today.

In keeping with my commitment to make our government more open and transparent, this budget is an honest accounting of where we are and where we intend to go.  For too long, our budget has not told the whole truth about how precious tax dollars are spent.  Large sums have been left off the books, including the true cost of fighting in Iraq and Afghanistan.  And that kind of dishonest accounting is not how you run your family budgets at home; it’s not how your government should run its budgets, either.  We need to be honest with ourselves about what costs are being racked up — because that’s how we’ll come to grips with the hard choices that lie ahead.  And there are some hard choices that lie ahead.

Just as a family has to make hard choices about where to spend and where to save, so do we, as a government.  You know, there are times where you can afford to redecorate your house and there are times where you need to focus on rebuilding its foundation.  Today, we have to focus on foundations.  Having inherited a trillion-dollar deficit that will take a long time for us to close, we need to focus on what we need to move the economy forward, not on what’s nice to have.  That’s why, on Monday, I held a fiscal summit to come up with a plan to put us on a more sustainable path.  And that is why, as we develop a full budget that will come out this spring, we’re going to go through our books page by page, line by line, to eliminate waste and inefficiency.  This is a process that will take some time, but in the last 30 days alone, we have already identified $2 trillion in deficit reductions that will help us cut our deficit in half by the end of my first term.

For example, Agriculture Secretary Vilsack is saving nearly $20 million with reforms to modernize programs and streamline bureaucracy.  Interior Secretary Salazar will save nearly $200 million by stopping wasteful payments to clean up abandoned coal mines that just happen to have already been cleaned up.  Education Secretary Duncan is set to save tens of millions dollars more by cutting an ineffective mentoring program for students, a program whose mission is being carried out by 100 other programs in 13 other agencies. Read the rest of this entry »

Remarks of President Barack Obama – As Prepared for Delivery
Address to Joint Session of Congress
Tuesday, February 24th, 2009

Madame Speaker, Mr. Vice President, Members of Congress, and the First Lady of the United States:

I’ve come here tonight not only to address the distinguished men and women in this great chamber, but to speak frankly and directly to the men and women who sent us here. 

I know that for many Americans watching right now, the state of our economy is a concern that rises above all others.  And rightly so.  If you haven’t been personally affected by this recession, you probably know someone who has – a friend; a neighbor; a member of your family.  You don’t need to hear another list of statistics to know that our economy is in crisis, because you live it every day.  It’s the worry you wake up with and the source of sleepless nights.  It’s the job you thought you’d retire from but now have lost; the business you built your dreams upon that’s now hanging by a thread; the college acceptance letter your child had to put back in the envelope.  The impact of this recession is real, and it is everywhere.    

But while our economy may be weakened and our confidence shaken; though we are living through difficult and uncertain times, tonight I want every American to know this:

We will rebuild, we will recover, and the United States of America will emerge stronger than before.  Read the rest of this entry »

New York’s Senator Chuck Schumer has a message for GOP governors humming and hawing over whether that want to accept the funds from the Reinvestment and Recovery Act (stimulus).  Schumer, in a letter to Peter Orzag of the Office of Management and Budget, requests that that the governors of the states not be given the option to splice and dice the package because it would then diminish the stimulative effect of the package and its implementation.  Lousiana’s governor Jindal has indicated that he will accept some of the funds but will reject monies allocated for the unemployment trust fund (UTF).  Interesting position by Jindal considering that he accepted and advocated for the same federal funds allocated to the UTF for Katrina relief.  Not to mention that Lousiana has one of the highest rates of unemployment in the country.  See Schumer’s letter to the Office of Management and Budget below.

Dear Director Orszag:

In recent days, a small minority of governors, mostly Republicans, have publicly weighed the possibility of foregoing certain emergency provisions provided under the American Economic Recovery and Reinvestment Act signed last week by President Obama. I believe this prospect not only would undercut the stimulative effect of the recovery package, but also is inconsistent with a key provision included in the law passed by Congress. To protect the integrity of the recovery program, I urge the administration to issue implementation guidance clarifying that while any Governor may exercise his or her discretion to accept or reject the federal funds provided in the stimulus, no Governor should have the authority to arbitrarily adopt a select subset of the overall package.

As you know, Section 1607(a) of the economic recovery legislation provides that the Governor of each state must certify a request for stimulus funds before any money can flow. No language in this provision, however, permits the governor to selectively adopt some components of the bill while rejecting others. To allow such picking and choosing would, in effect, empower the governors with a line-item veto authority that President Obama himself did not possess at the time he signed the legislation. It would also undermine the overall success of the bill, as the components most singled out for criticism by these governors are among the most productive measures in terms of stimulating the economy.

For instance, at least two governors have proposed rejecting a program to expand unemployment insurance for laid-off workers. Economists consistently rank unemployment insurance among the most efficient and cost-effective fiscal stimulus measures; by one frequently cited estimate, it provides an economic return of as high as $1.73 for every dollar invested. Thus, by denying this provision for their residents, these governors are not just depriving some of the neediest Americans of relief in a dire economy; they are undermining the overall stimulative impact of the package.

No one would dispute that these governors should be given the choice as to whether to accept the funds or not. But it should not be multiple choice. The composition of the package was rightly dictated by economic considerations; we should not let the implementation of the package be dictated by political considerations.

Sincerely,

Charles E. Schumer

United States Senator

As mentioned in the article, the industry is hopeful that this deal will serve as a model to GM and Chrysler.  See story below 

The United Auto Workers and Ford have reached a new agreement on how to fund health benefits for retirees, possibly creating a model settlement for the other two major U.S. automakers as they battle to fend off bankruptcy.

The deal, announced yesterday, would allow Ford to pay as much as half of its $13.2 billion obligation to retirees with stock rather than cash, a bargain that essentially relieves the company of the cash requirement but makes health care a far riskier proposition for retirees. The agreement must still be ratified by union members and win court approval.

“The modifications will protect jobs for UAW members by ensuring the long-term viability of the company,” UAW President Ronald A. Gettelfinger said in a statement.

The agreement was reached as the Obama administration’s auto industry task force begins to grapple with the question of whether GM and Chrysler should be granted billions more in government loans. The group plans to meet with GM chief executive G. Richard Wagoner Jr. and Chief Operating Officer Frederick A. Henderson on Thursday. See remainder of story here

SATURDAY, February 21, 2009
WEEKLY ADDRESS BY THE PRESIDENT
TO THE NATION 

     THE PRESIDENT:  Earlier this week, I signed into law the American Recovery and Reinvestment Act — the most sweeping economic recovery plan in history.  Because of this plan, 3.5 million Americans will now go to work doing the work that America needs done.

     I’m grateful to Congress, governors and mayors across the country, and to all of you whose support made this critical step possible.

     Because of what we did together, there will now be shovels in the ground, cranes in the air, and workers rebuilding our crumbling roads and bridges, and repairing our faulty levees and dams.

     Because of what we did, companies — large and small — that produce renewable energy can now apply for loan guarantees and tax credits and find ways to grow, instead of laying people off; and families can lower their energy bills by weatherizing their homes.

     Because of what we did, our children can now graduate from 21st century schools and millions more can do what was unaffordable just last week — and get their college degree.

     Because of what we did, lives will be saved and health care costs will be cut with new computerized medical records. 

     Because of what we did, there will now be police on the beat, firefighters on the job, and teachers preparing lesson plans who thought they would not be able to continue pursuing their critical missions.  And ensure that all of this is done with an unprecedented level of transparency and accountability, I have assigned a team of managers to make sure that precious tax dollars are invested wisely and well.

     Because of what we did, 95 percent of all working families will get a tax cut — in keeping with a promise I made on the campaign.  And I’m pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks — meaning that by April 1st, a typical family will begin taking home at least $65 more every month.  Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans.

     But as important as it was that I was able to sign this plan into law, it is only a first step on the road to economic recovery.  And we can’t fail to complete the journey.  That will require stemming the spread of foreclosures and falling home values, and doing all we can to help responsible homeowners stay in their homes, which is exactly what the housing plan I announced last week will help us do.

     It will require stabilizing and repairing our banking system, and getting credit flowing again to families and businesses.  It will require reforming the broken regulatory system that made this crisis possible, and recognizing that it’s only by setting and enforcing 21st century rules of the road that we can build a thriving economy.

     And it will require doing all we can to get exploding deficits under control as our economy begins to recover.  That work begins on Monday, when I will convene a fiscal summit of independent experts and unions, advocacy groups and members of Congress, to discuss how we can cut the trillion-dollar deficit that we’ve inherited.  On Tuesday, I will speak to the nation about our urgent national priorities.  And on Thursday, I’ll release a budget that’s sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline.

     No single piece of this broad economic recovery can, by itself, meet the demands that have been placed on us.  We can’t help people find work or pay their bills unless we unlock credit for families and businesses.  We can’t solve our housing crisis unless we help people find work so that they can make payments on their homes.  We can’t produce shared prosperity without firm rules of the road, and we can’t generate sustained growth without getting our deficits under control.  In short, we cannot successfully address any of our problems without addressing them all.  And that is exactly what the strategy we are pursuing is designed to do.

     None of this will be easy.  The road ahead will be long and full of hazards.  But I am confident that we, as a people, have the strength and wisdom to carry out this strategy and overcome this crisis.  And if we do, our economy — and our country — will be better and stronger for it.

     Thank you. 

Canada welcomes President Bush….protesters provide for quite the chilly reception for the former President

Change we believe in.

There has been a bit of a stir in the main stream media about the comments by Attorney General Eric Holder commemorating Black History Month.  Many say that Holder’s comments should have been more upliftig in light of the fact that we just elected the first African-American President and now have the first African-American Attorney General.  To those folks I say….black history is just that, black history.  It encompasses a chronicle of all events and African-American experiences in our history not just the good.  Many of Mr. Holder’s comments were provocative but they were meant to be in order to initiate a dialogue about certain aspects of the American experience that still needs perfecting.  Read the Attorney General’s entire speech below and decide for yourself if it rings true for you.  If it does, make a conscious choice to either do or not do something about it instead of continuing the passive status quo existence that many of us live in our ability to go along to get along.

Remarks as Prepared for Delivery Attorney General Eric Holder at the Department of Justice African American History Program

Every year, in February, we attempt to recognize and to appreciate black history. It is a worthwhile endeavor for the contributions of African Americans to this great nation are numerous and significant. Even as we fight a war against terrorism, deal with the reality of electing an African American as our President for the first time and deal with the other significant issues of the day, the need to confront our racial past, and our racial present, and to understand the history of African people in this country, endures. One cannot truly understand America without understanding the historical experience of black people in this nation. Simply put, to get to the heart of this country one must examine its racial soul.

Though this nation has proudly thought of itself as an ethnic melting pot, in things racial we have always been and continue to be, in too many ways, essentially a nation of cowards. Though race related issues continue to occupy a significant portion of our political discussion, and though there remain many unresolved racial issues in this nation, we, average Americans, simply do not talk enough with each other about race. It is an issue we have never been at ease with and given our nation’s history this is in some ways understandable. And yet, if we are to make progress in this area we must feel comfortable enough with one another, and tolerant enough of each other, to have frank conversations about the racial matters that continue to divide us. But we must do more- and we in this room bear a special responsibility. Through its work and through its example this Department of Justice, as long as I am here, must – and will – lead the nation to the “new birth of freedom” so long ago promised by our greatest President. This is our duty and our solemn obligation. Read the rest of this entry »

The following message was posted by the White House yesterday just before President Obama told millions of homeowners how he plans to ease some of their pain resulting from the subprime melt down.  See full message below.

The White House, February 18, 2009 at 1:11pm

The housing plan President Obama unveiled today could directly help up to 9 million people — but indirectly, it will help all of us.

“In the end, all of us are paying a price for this home mortgage crisis. And all of us will pay an even steeper price if we allow this crisis to continue to deepen,” President Obama said today in Phoenix, AZ. “But if we act boldly and swiftly to arrest this downward spiral, every American will benefit.”

He laid out the four key elements of the Homeowner Affordability and Stability Plan:

1. refinancing help for four to five million homeowners who receive their mortgages through Fannie Mae or Freddie Mac
2. new incentives for lenders to modify the terms of sub-prime loans at risk of default and foreclosure
3. steps to keep mortgage rates low for millions of middle class families looking to secure new mortgages
4. additional reforms designed to help families stay in their homes

“The plan I’m announcing focuses on rescuing families who have played by the rules and acted responsibly,” the President said, “by refinancing loans for millions of families in traditional mortgages who are underwater or close to it; by modifying loans for families stuck in sub-prime mortgages they can’t afford as a result of skyrocketing interest rates or personal misfortune; and by taking broader steps to keep mortgage rates low so that families can secure loans with affordable monthly payments.”

We’ve put together a few documents that will help you understand the plan, how it will work, and how it will affect you:

Executive Summary
Fact Sheet
Housing Example Sheet
Q&A

The junior senator from Illinois again plead his case yesterday in front of an audience at the City Club in Illinois.  Sen. Roland Burris said yesterday that he will no longer answer any questions regarding pending the current investigation under way as to the circumstances surrounding him being appointed to President Obama’s former senate seat but not before he got his (4th) side of the story out…..again.    “You know me” was how Burris began his defense of the alleged “rush to judgement” he claims to be the victim of.  Burris went on to say that if he had done the things that he has been accused of he would be emBurrised(snark) to be standing in front of the group.  Though Burris claimed that the group was made up of his friends and supporters it did not stop one “friend” from asking if he (Burris) thought it was appropriate for him to agree to do fundraising for the Governor when he had publicly expressed  his interst in the senate seat.  Burris responded that he will not be answering those types of questions and ended the session.  Washington  Post, Chicago Tribune, Congressman Hare  are all calling for Senator Burris to resign.  The ongoing investigation as to whether Burris committed perjury a month ago while testifying in front of the Illinois impeachment panel has prompted his fellow Democrats, including Congressman Phil Hare, the Washington Post, and the Chicago Tribune to call for Burris’ resignation.  Burris says that he welcomes the investigation and that he will not resign.  The Senate Ethics Committee has opened an inquiry.

President Obama signed the stimulus bill yesterday as well as gave a breakdown of how the money will be spent. 

• $288 billion in tax relief
• $144 billion in state and local fiscal relief
• $111 billion in infrastructure and science
• $81 billion goe to protecting the vulnerable
• $59 billion healthcare
• $53 billion education and training
• $43 billion energy
• $8 billion listed as other

The President said that 3.5 million jobs will be created or saved by the package.  For more specific information about the bill and track how it is being spent go to www.recovery.gov

Today the President will unveil his plan to stabilize the housing market in Phoenix, Arizona, one of the hardest hit areas in the nation for foreclosures.

Sen. Roland Burris has come under fire in the last couple of days after a second affidavit that he filed was leaked to the Chicago Times. In the new affidavit Burris admits that he spoke with several of Governor Blagojevich’s associates including the former Govenor’s brother Robert Blagojevich regarding the senate seat even though he was not forthcoming with this information in his testimony before the Illinois impeachment panel.  Sen. Burris attempted to refute the allegations in what some would call a circus of a press conference this past Sunday.  Seriously, that press conference was reminiscent of two drunk uncles arguing over who was the greatest baseball player of all time after an overly indulgent Thanksgiving dinner.  Completely ridiculous but I digress.  The U.S. Code defines perjury as follows:

Whoever…

• … having taken an oath before a competent tribunal, officer, or person, in any case in which a law of the United States authorizes an oath to be administered, that he will testify, declare, depose, or certify truly, or that any written testimony, declaration, deposition, or certificate by him subscribed, is true, willfully and contrary to such oath states or subscribes any material matter which he does not believe to be true; or

• in any declaration, certificate, verification, or statement under penalty of perjury as permitted under section 1746 of title 28, United States Code, willfully subscribes as true any material matter which he does not believe to be true;

is guilty of perjury and shall, except as otherwise expressly provided by law, be fined under this title or imprisoned not more than five years, or both. This section is applicable whether the statement or subscription is made within or without the United States.” U.S. Code: Title 18, Part 1, Chapter 79 § 1621

This is what Sen. Burris said in his Jan 5th sworn affidavit.

I, ROLAND W. BURRIS, being first sworn on oath, depose and state that the following is true to the best of my knowledge and recollection:

……….

“Prior to the December 26, 2008 telephone call from Mr. Adams, Jr., there was not any contact between myself or any of my representatives with Governor Blagojevich or any of his representatives regarding my appointment to the United states Senate.”

On January 8th, Sen. Burris said the following under oath during the Illinois impeachment hearing of Governor Blagojevich.

Jim Durkin:  “Did you talk to any members of the Governor’s staff or anyone closely related to the Governor including family members or any lobbyists connected with him including…oh…..let me throw out some names…..John Harris, Rob Blagojevich, Doug Scofield, Bob Greenleaf, Lon Monk…John Wymna, did you talk to anybody who was associated with the Governor about your desire to seek the appointment prior to the Governor’s arrest?”

Roland Burris: “I talked to some friends about my desire to be appointed, yes.”

Durkin:  “Guess the point is I was trying to ask…did you speak to anybody who was on the Governor’s staff prior to the Governor’s arrest or any body…..any of those individuals….or anybody who…uh..was closely related to the Governor?

Burris:  “I recall having a meeting with Lon Monk about my partner and I trying to get…..uh….uh…continued business and I did bring it up…it must have been in September or Jul…maybe it was in July..of a….of a..08.  That….you know…..if you’re close to the governor…..you know….let him know that I’m certainly interested in the seat.”

Okay, so the Burris Jan. 5th sworn affidavit states that Burris nor any of his representatives had any contact with the Governor or any of the Governor’s representatives about the appointment to the United States Senate prior to the Governor’s arrest.  Yet he admits during the Illinois House impeachment hearing, as well as in his February 9th affidavit , that he talked to at least one (Lon Monk) of the six people named in the question posed by Durkin during such hearing.  Thus revealing inconsistencies between the first affidavit and the hearing as well as between the first and second affidavits.  By swearing in the first affidavit that there was no contact about the appointment and then, under oath, saying that there was contact about the appointment with Lon Monk raises questions about the veracity of the two statements.  Burris attempted to defend the apparent inconsistency in a recent press conference by proclaiming that there are no inconsistencies between the two statements. The junior senator claimed that in the January 5th affidavit he was referring to the “appointment” as opposed to the “Senate seat” and in his more recent February 9th affidavit he was referring to the “Senate seat” and not the “appointment.” I know.  Unfortunately for Burris, during the hearing Durkin specifically used the word “appointment” in his question and not “senate seat” as Burris used in his latest affidavit.  Usually in a perjury case, and why they are so difficult to prove, vagueness is your friend.  However, the fact that Burris was specifically asked about the “appointment” and he contradicted his sworn statement under oath could mean problems for the Illinois senator.  Of course the counter argument will be that the use of the word “my” before the word “appointment” in the Jan. 5th affidavit allows for some wiggle room.

What do you think?

For Immediate Release February 12, 2009
REMARKS BY THE PRESIDENT
AT A LINCOLN BICENTENNIAL CELEBRATION

THE PRESIDENT: Thank you. Thank you. Pease, be seated. Thank you very much. Madam Speaker, Leader Reid, members of Congress, dear friends, former colleagues, it is a great honor to be here — a place where Lincoln served, was inaugurated, and where the nation he saved bid him a last farewell. As we mark the bicentennial of our 16th President’s birth, I cannot claim to know as much about his life and works as many who are also speaking today, but I can say that I feel a special gratitude to this singular figure who in so many ways made my own story possible — and in so many ways made America’s story possible.

It is fitting that we are holding this celebration here at the Capitol, for the life of this building is bound ever so closely to the times of this immortal President. Built by artisans and craftsmen, but also immigrants and slaves — it was here, in the rotunda, that Union soldiers received help from a makeshift hospital; it was downstairs, in the basement, that they were baked bread to give them strength; and it was in the Senate and House chambers where they slept at night and spent some of their days.

What those soldiers saw when they looked on this building was a very different sight than the one we see today, for it remained unfinished until the end of the war. The laborers who built the dome came to work wondering each day whether that would be their last; whether the metal they were using for its frame would be requisitioned for the war and melted down into bullets. But each day went by without any orders to halt construction, and so they kept on working and kept on building.

When President Lincoln was finally told of all the metal being used here, his response was short and clear: That is as it should be. The American people needed to be reminded, he believed, that even in a time of war, the work would go on; the people’s business would continue; that even when the nation itself was in doubt, its future was being secured; and that on that distant day, when the guns fell silent, a national capitol would stand, with a statue of freedom at its peak, as a symbol of unity in a land still mending its divisions.

It is this sense of unity, this ability to plan for a shared future even at a moment where our nation was torn apart, that I reflect on today. And while there are any number of moments that reveal that particular side of this extraordinary man, Abraham Lincoln — that particular aspect of his leadership — there’s one that I’d like to share with you today.

In the war’s final weeks, aboard Grant’s flagship, The River Queen, President Lincoln was asked what was to be done with the rebel armies once General Lee surrendered. With victory at hand, Lincoln could have sought revenge. He could have forced the South to pay a steep price for their rebellion. But despite all the bloodshed and all the misery that each side had exacted upon the other, and despite his absolute certainty in the rightness of the cause of ending slavery, no Confederate soldier was to be punished, Lincoln ordered. They were to be treated, as he put it, “liberally all round.” What Lincoln wanted was for Confederate troops to go back home and return to work on their farms and in their shops. He was even willing, he said, to “let them have their horses to plow and ¼ their guns to shoot crows with.”

That was the only way, Lincoln knew, to repair the rifts that had torn this country apart. It was the only way to begin the healing that our nation so desperately needed. What Lincoln never forgot, not even in the midst of civil war, was that despite all that divides us — north and south, black and white — we were, at heart, one nation and one people, sharing a bond as Americans that could bend but would not break.

And so even as we meet here today, in a moment when we are far less divided than in Lincoln’s day, but when we are once again debating the critical issues of our time — and debating them sometimes fiercely — let us remember that we are doing so as servants of the same flag, as representatives of the same people, and as stakeholders in a common future. That is the most fitting tribute we can pay — the most lasting monument we can build — to that most remarkable of men, Abraham Lincoln. Thank you.

The second stimulus package has been approved by the House and the Senate and both bodies will be voting on it in the next few days hoping for the President to sign it by Monday.  The package consists of $507 billion in spending programs and $282 billion in tax relief and is designed to save or creat 3.5 million jobs.  Much of the education funding was put back into the package.  Stimulus checks to individuals were cut back from $500 per individual, $1000 per family to $400 per individual and $800 per family.  The package will also include a one time payment of $250 to social security and disability recipients.  The bill will extend unemployment benefits by 20 weeks and boost such benefits by $25. Further, the bill expands the subsidy that helps the unemployed continue to buy health insurance from their employer. A one time tax credit for  buyers purchasing a home in 2009 was included but was reduced to $8000 tax credit for first-time buyers only instead of the initial $15,000 for all home buyers.  In addition, tax breaks for new car buyers to write off interest for their loans. Not sure if that tax credit will be retroactive to include January and and the first part of February of 2009. There are significant amounts for infrastructure, healthcare, education, and energy. The total amount of the package is $789 billion.  Hopefully the full details of the new package will be released in the coming days.  Read the full text of the FINAL bill here .

Like in that Doobie Brothers song ‘Takin it to the Streets,’ the grassroots organization Neighborhood Assistance Corporation of America, an organization that assists homeowners in avoiding foreclosure, took their grievances directly to the source of their frustration….Wall Street executives.  Almost 400 members of the group of potential foreclosure victims protested outside the homes of several CEO’s of Wall Street firms who refuse to renegotiate loans on behalf of NACA homeowners.  One particular manager, William Frey of Greenwich Financial Services, was targeted because he is currently suing Bank of America on behalf of two of BofA’s primary investors because BofA moved to modify several hundred mortgages to make them more affordable the homeowners.  Monikered “the Predators tour,” the group has mounted an all out “accountability campaign” against the excesses of Wall Street executives and their obliviousness to the pain and distress of Main Street, i.e., their fellow man and woman.  NACA confronted the executives on their own turf  by showing up outside their homes and placing furniture on the lawns to demonstrate what it might feel like to be displaced.  The protesters also stood on the street in front of the executive’s homes holding signs reading “Stop the Loan Sharks.”  That’s another way of getting accountability.  See full story here.

Given the situation, this little melody is particularly pertinent. For those not familiar with the song it was recorded in the 70′s (video above) and in this case is a message to all those who, in the name of greed, were willing to exploit the desperation of the oppressed and disenfranchised simply trying to achieve the American dream.

Takin’ It To The Streets

You don’t know me but I’m your brother
I was raised here in this living hell
You don’t know my kind in your world
Fairly soon the time will tell
You, telling me the things you’re gonna do for me
I ain’t blind and I don’t like what I think I see

Takin’ it to the streets
Takin’ it to the streets
Takin’ it to the streets
Takin’ it to the streets

Take this message to my brother
You will find him everywhere
Wherever people live together
Tied in poverty’s despair
You, telling me the things you’re gonna do for me
I ain’t blind and I don’t like what I think I see

Takin’ it to the streets
Takin’ it to the streets
Takin’ it to the streets
Takin’ it to the streets

February 10, 2009   8pm EST

President Barack Obama 

Good evening. Before I take your questions tonight, I’d like to speak briefly about the state of our economy and why I believe we need to put this recovery plan in motion as soon as possible.

I took a trip to Elkhart, Indiana today. Elkhart is a place that has lost jobs faster than anywhere else in America. In one year, the unemployment rate went from 4.7% to 15.3%. Companies that have sustained this community for years are shedding jobs at an alarming speed, and the people who’ve lost them have no idea what to do or who to turn to. They can’t pay their bills and they’ve stopped spending money. And because they’ve stopped spending money, more businesses have been forced to lay off more workers. Local TV stations have started running public service announcements that tell people where to find food banks, even as the food banks don’t have enough to meet the demand.

As we speak, similar scenes are playing out in cities and towns across the country. Last Monday, more than 1,000 men and women stood in line for 35 firefighter jobs in Miami. Last month, our economy lost 598,000 jobs, which is nearly the equivalent of losing every single job in the state of Maine. And if there’s anyone out there who still doesn’t believe this constitutes a full-blown crisis, I suggest speaking to one of the millions of Americans whose lives have been turned upside down because they don’t know where their next paycheck is coming from.

That is why the single most important part of this Economic Recovery and Reinvestment Plan is the fact that it will save or create up to 4 million jobs. Because that is what America needs most right now.

It is absolutely true that we cannot depend on government alone to create jobs or economic growth. That is and must be the role of the private sector. But at this particular moment, with the private sector so weakened by this recession, the federal government is the only entity left with the resources to jolt our economy back to life. It is only government that can break the vicious cycle where lost jobs lead to people spending less money which leads to even more layoffs. And breaking that cycle is exactly what the plan that’s moving through Congress is designed to do.

When passed, this plan will ensure that Americans who have lost their jobs through no fault of their own can receive greater unemployment benefits and continue their health care coverage. We will also provide a $2,500 tax credit to folks who are struggling to pay the cost of their college tuition, and $1000 worth of badly-needed tax relief to working and middle-class families. These steps will put more money in the pockets of those Americans who are most likely to spend it, and that will help break the cycle and get our economy moving.

But as we learned very clearly and conclusively over the last eight years, tax cuts alone cannot solve all our economic problems – especially tax cuts that are targeted to the wealthiest few Americans. We have tried that strategy time and time again, and it has only helped lead us to the crisis we face right now.

That is why we have come together around a plan that combines hundreds of billions in tax cuts for the middle-class with direct investments in areas like health care, energy, education, and infrastructure – investments that will save jobs, create new jobs and new businesses, and help our economy grow again – now and in the future.

More than 90% of the jobs created by this plan will be in the private sector. These will not be make-work jobs, but jobs doing the work that America desperately needs done. Jobs rebuilding our crumbling roads and bridges, and repairing our dangerously deficient dams and levees so that we don’t face another Katrina. They will be jobs building the wind turbines and solar panels and fuel-efficient cars that will lower our dependence on foreign oil, and modernizing a costly health care system that will save us billions of dollars and countless lives. They’ll be jobs creating 21st century classrooms, libraries, and labs for millions of children across America. And they’ll be the jobs of firefighters, teachers, and police officers that would otherwise be eliminated if we do not provide states with some relief.

After many weeks of debate and discussion, the plan that ultimately emerges from Congress must be big enough and bold enough to meet the size of the economic challenge we face right now. It is a plan that is already supported by businesses representing almost every industry in America; by both the Chamber of Commerce and the AFL-CIO. It contains input, ideas, and compromises from both Democrats and Republicans. It also contains an unprecedented level of transparency and accountability, so that every American will be able to go online and see where and how we’re spending every dime. What it does not contain, however, is a single pet project, and it has been stripped of the projects members of both parties found most objectionable.

Despite all of this, the plan is not perfect. No plan is. I can’t tell you for sure that everything in this plan will work exactly as we hope, but I can tell you with complete confidence that a failure to act will only deepen this crisis as well as the pain felt by millions of Americans. My administration inherited a deficit of over $1 trillion, but because we also inherited the most profound economic emergency since the Great Depression, doing too little or nothing at all will result in an even greater deficit of jobs, incomes; and confidence. That is a deficit that could turn a crisis into a catastrophe. And I refuse to let that happen. As long as I hold this office, I will do whatever it takes to put this country back to work.

I want to thank the members of Congress who’ve worked so hard to move this plan forward, but I also want to urge all members of Congress to act without delay in the coming week to resolve their differences and pass this plan.

We find ourselves in a rare moment where the citizens of our country and all countries are watching and waiting for us to lead. It is a responsibility that this generation did not ask for, but one that we must accept for the sake of our future and our children’s. The strongest democracies flourish from frequent and lively debate, but they endure when people of every background and belief find a way to set aside smaller differences in service of a greater purpose. That is the test facing the United States of America in this winter of our hardship, and it is our duty as leaders and citizens to stay true to that purpose in the weeks and months ahead. After a day of speaking with and listening to the fundamentally decent men and women who call this nation home, I have full faith and confidence that we can. And with that, I’ll take your questions.

And let me go to Jennifer Loven at [The Associated Press]. There you go.

Question: Thank you, Mr. President. Earlier today in Indiana, you said something striking. You said that this nation could end up in a crisis without action that we would be unable to reverse.

Can you talk about what you know or what you’re hearing that would lead you to say that our recession might be permanent when others in our history have not? And do you think that you risk losing some credibility or even talking down the economy by using dire language like that?

Obama: No, no, no, no. I think that what I’ve said is what other economists have said across the political spectrum, which is that, if you delay acting on an economy of this severity, then you potentially create a negative spiral that becomes much more difficult for us to get out of.

We saw this happen in Japan in the 1990s, where they did not act boldly and swiftly enough and, as a consequence, they suffered what was called the lost decade, where essentially, for the entire ’90s, they did not see any significant economic growth.

So what I’m trying to underscore is what the people in Elkhart already understand, that this is not your ordinary, run-of-the-mill recession. We are going through the worst economic crisis since the Great Depression.

We’ve lost now 3.6 million jobs, but what’s perhaps even more disturbing is that almost half of that job loss has taken place over the last three months, which means that the problems are accelerating instead of getting better.

Now, what I said in Elkhart today is what I repeat this evening, which is, I’m absolutely confident that we can solve this problem, but it’s going to require us to take some significant, important steps.

Step number one: We have to pass an economic recovery and reinvestment plan. And we’ve made progress. There was a vote this evening that moved the process forward in the Senate. We already have a House bill that’s passed. I’m hoping, over the next several days, that the House and the Senate can reconcile their differences and get that bill on my desk.

There have been criticisms from a bunch of different directions about this bill, so let me just address a few of them.

Some of the criticisms really are with the basic idea that government should intervene at all in this moment of crisis. Now, you have some people, very sincere, who philosophically just think the government has no business interfering in the marketplace. And, in fact, there are several who’ve suggested that FDR was wrong to interfere back in the New Deal. They’re fighting battles that I thought were resolved a pretty long time ago.

Most economists almost unanimously recognize that, even if philosophically you’re — you’re wary of government intervening in the economy, when you have the kind of problem we have right now — what started on Wall Street, goes to Main Street, suddenly businesses can’t get credit, they start paring back their investment, they start laying off workers, workers start pulling back in terms of spending — that, when you have that situation, that government is an important element of introducing some additional demand into the economy.

We stand to lose about $1 trillion worth of demand this year and another trillion next year. And what that means is you’ve got this gaping hole in the economy.

That’s why the figure that we initially came up with of approximately $800 billion was put forward. That wasn’t just some random number that I plucked out of — out of a hat. That was Republican and Democratic, conservative and liberal economists that I spoke to who indicated that, given the magnitude of the crisis and the fact that it’s happening worldwide, it’s important for us to have a bill of sufficient size and scope that we can save or create 4 million jobs.

That still means that you’re going to have some net job loss, but at least we can start slowing the trend and moving it in the right direction.

Now, the recovery and reinvestment package is not the only thing we have to do. It’s one leg of the stool. We are still going to have to make sure that we are attracting private capital, get the credit markets flowing again, because that’s the lifeblood of the economy.

And so tomorrow my treasury secretary, Tim Geithner, will be announcing some very clear and specific plans for how we are going to start loosening up credit once again.

And that means having some transparency and oversight in the system. It means that we correct some of the mistakes with TARP that were made earlier, the lack of consistency, the lack of clarity, in terms of how the program was going to move forward.

It means that we condition taxpayer dollars that are being provided to banks on them showing some restraint when it comes to executive compensation, not using the money to charter corporate jets when they’re not necessary.

It means that we focus on housing and how are we going to help homeowners that are suffering foreclosure or homeowners who are still making their mortgage payments, but are seeing their property values decline.

So there are going to be a whole range of approaches that we have to take for dealing with the economy. My bottom line is to make sure that we are saving or creating 4 million jobs, we are making sure that the financial system is working again, that homeowners are getting some relief.

And I’m happy to get good ideas from across the political spectrum, from Democrats and Republicans. What I won’t do is return to the failed theories of the last eight years that got us into this fix in the first place, because those theories have been tested, and they have failed. And that’s what part of the election in November was all about.

OK. Karen Boeing (ph) of Reuters? Read the rest of this entry »

All the economist say that we need to do something and do something FAST lest our situation begin to spiral out of control.  Currently 11.6 million people are out of work.  A total of 11.6 million people are out of work service and manufacturing.  We understand that the GOP stands for low taxes for the rich and low spending but  in this situation that approach will not work.  The GOP knows that so now they say okay you can do spending but you must spend it the way we want you to spend it or we will not come along. Well that will not work for the democrats because they voted for change last November.  There are several GOP Senators and governors who said this weekend that they will not support the new bill….they have not seen the entire bill yet.  Governor Mark Sanford of South Carolina pretty much said to his constituents let them eat cake.  When told that if this stimulus package doesn’t happen companies in his states will go belly up which means thousands of more jobs lost in South Carolina.  Sanford responded, it’s a tough but neccessary lesson.  Easy for him to say, he has a government job.  The Republican party has been masterful in their ability to get people to vote against their own interest by focusing on minor fringe issues that don’t necessarily effect their life.  One wonders if in this more informed, more engaged electorate it will be as successful this time.  If you beleive in his judgment, call/write your Senator and tell him you support this stimulus package.  Contact info for all Senators here.

President Barack Obama has been in office for exactly two weeks and two days and as much as the Republican party would like to blame our current president for the economic situation, he did not create it.  He inherited it.  Proof of that fact was undeniably demonstrated on November 4, 2008.  At which time, the American people concluded that it was the GOP and its leader of the past eight years that created this mess and voted it and its ideologies out of office.  So why is the GOP pushing the same old policies that got them kicked out of the majority and the presidency?  Denial and no new or better ideas.  Sen. John McCain, in an impassioned speech on the Senate floor yesterday, introduced a GOP crafted alternative stimulus bill.  I could give you a full account of the bill but basically it was tax cuts, tax cuts, corporate tax cuts, no spending.  Guess what GOP, the whole point of the stimulus package is to for the government to spend to stimulate the economy or create demand because why…..the citizens are not spending.  It’s called Keynesian economics and if done right could pull us out of this economic downturn.  In addition, President Obama has a team of top notch economic advisors advising him on his economic policy and stimulus proposal…..who advised the GOP on theirs?   The Republican party hastily put together an alternative without bothering to do their homework.  And by doing their homework I mean reading the actual stimulus proposal that is currently being debated in the Senate.  How can you provide informed oppostion about improving the economy if you haven’t bothered to hire an economist?   Who exactly advised the GOP as to the next steps the nation should take?  My guess is that they are making it up as they go along.  This whole drama is playing politics pure and simple.  

The GOP cites as its main reasons for rejecting the bill is that some of the items in the bill have nothing to do with stimulus, too much spending and not enough tax cuts.  One item listed frequently by GOP pundits is a smoking cessation program.   Guess what…it’s gone, no longer in the bill.  Read the bill.  Also, Sen.  McCain erroneously claimed, when presenting his GOP alternative bill,  that there are no funds allocated to defense.  Guess what….4.5 billion is being allocated to defense, a half billion more than what was proposed in the McCain bill.  Further, the GOP opposes money allocated for “sprucing up government buildings.”  Well, “sprucing up government buildings” is actually insulating federal buildings to make them more energy efficient.  So according to the GOP when I put insulation in my house I’m “sprucing” it up?  Or, am I trying to insulate the heat so that my gas/electric bill will be lower? The Grand Old Party further complained about new state vehicles being a part of the stimulus.  Okay, can you say manufacturing, Detroit, auto bailout?  Guess what….such a line item would save and create auto manufacturing jobs.  Finally, the GOP wants tax cuts….36% of the stimulus package is tax cuts.  Such tax cuts are not for the wealthy or corporate america that the GOP is advocating.  Instead the tax cuts will go to the middle class and the working poor.  Again, Democrats are in the majority and they will be doing things differently than Republicans may prefer but that’s what happen when the winning party is different than the losing party.  Remember, the people voted for CHANGE last November 4th.

Further, Bush tried tax cuts as a stimulus last year, it didn’t work.  The former president spent $150 billion in tax cuts last year and received a mere 15% return.  That’s right, consumers ended up spending only 15% of that $150 billion.  In otherwards it didn’t work.  As for fiscal responsibility of the GOP, when Bush took office and the Republicans controlled Congress for six of the last eight years, the national debt doubled from $5 trillion to $10 trillion.  Guess how long it took us to accumulate the $5 trillion national debt that we owed prior to the Bush presidency?  A whopping 231 years! So Bush and the GOP managed to do in eight years what 42 prior presidents could not do in 231 years -as a group.  And yet the GOP is still singing the same old song.  With a record like that it takes real audacity to claim that you know best when it comes to fiscal responsibility.  The new majority party should be encouraged to do things differently because what the government has been doing under GOP leadership has not worked.  Given our nation’s current economic state now is not the time to attempt to sabotage the President in an effort to gain partisan advantage.  The stakes are too high.

One last thing, remember TARP?  Well the remnants of how badly the Bush administration’s Hank Paulson botched it are still lingering.  It turns out that Paulson paid the bargain price of $254 billion of TARP funds for assets worth a mere $176 billion.  Nice job Paulie.  The GOP continue to use the failures of THEIR party (failure to properly manage the TARP funds) as an excuse for not “rushing” through the stimulus package.  TARP was approved by the Senate within two weeks of being proposed.  The Senate has had double that time to debate the stimulus bill.  The stimulus bill in its current state has one hundred percent more oversight and accountability.  One other thing….we have a new Administration doing things.  Why the GOP thinks that because they rushed through the TARP bill and the Bush administration mishandled the funds that if they “rush” through the stimulus funds the Obama administration will do the same defies logic.  President Obama is not by any stretch of the imagination President Bush.  Didn’t the American voters decide that he has MUCH better judgment.  So to use such obstructionist tactics to try and make a comeback at a time when our country is in such great peril is a very risky and dangerous move.  Of course the opposing parties will disagree about some of the line items in the bill, they are the opposing parties.  But the American people overwhelmingly voted a DIFFERENT ideology into office and the Majority of the House and the Senate therefore that party or ideology makes the final decision. Now is the time to trust the President to do what we the people elected him to do.

Let your views be known by calling your Senator and letting him/her know that this is not a joke or abstract academic debating exercise we need action.  The GOP senators claim that they are hearing from constituents opposed to the stimulus, if you favor the stimulus you need to let your senator know.  If you voted for Obama for his JUDGMENT then allow him to use it by calling your Senator and letting him/her know that you support this bill.  The telephone and email addresses of all 100 senators.  Call or Email today because they may be voting as soon as today or tomorrow.

The Action Americans Need
By Barack Obama
Thursday, February 5, 2009; A17

By now, it’s clear to everyone that we have inherited an economic crisis as deep and dire as any since the days of the Great Depression. Millions of jobs that Americans relied on just a year ago are gone; millions more of the nest eggs families worked so hard to build have vanished. People everywhere are worried about what tomorrow will bring.

What Americans expect from Washington is action that matches the urgency they feel in their daily lives — action that’s swift, bold and wise enough for us to climb out of this crisis.

Because each day we wait to begin the work of turning our economy around, more people lose their jobs, their savings and their homes. And if nothing is done, this recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse.

That’s why I feel such a sense of urgency about the recovery plan before Congress. With it, we will create or save more than 3 million jobs over the next two years, provide immediate tax relief to 95 percent of American workers, ignite spending by businesses and consumers alike, and take steps to strengthen our country for years to come.

This plan is more than a prescription for short-term spending — it’s a strategy for America’s long-term growth and opportunity in areas such as renewable energy, health care and education. And it’s a strategy that will be implemented with unprecedented transparency and accountability, so Americans know where their tax dollars are going and how they are being spent.

In recent days, there have been misguided criticisms of this plan that echo the failed theories that helped lead us into this crisis — the notion that tax cuts alone will solve all our problems; that we can meet our enormous tests with half-steps and piecemeal measures; that we can ignore fundamental challenges such as energy independence and the high cost of health care and still expect our economy and our country to thrive.

I reject these theories, and so did the American people when they went to the polls in November and voted resoundingly for change. They know that we have tried it those ways for too long. And because we have, our health-care costs still rise faster than inflation. Our dependence on foreign oil still threatens our economy and our security. Our children still study in schools that put them at a disadvantage. We’ve seen the tragic consequences when our bridges crumble and our levees fail.

Every day, our economy gets sicker — and the time for a remedy that puts Americans back to work, jump-starts our economy and invests in lasting growth is now.

Now is the time to protect health insurance for the more than 8 million Americans at risk of losing their coverage and to computerize the health-care records of every American within five years, saving billions of dollars and countless lives in the process.

Now is the time to save billions by making 2 million homes and 75 percent of federal buildings more energy-efficient, and to double our capacity to generate alternative sources of energy within three years.

Now is the time to give our children every advantage they need to compete by upgrading 10,000 schools with state-of-the-art classrooms, libraries and labs; by training our teachers in math and science; and by bringing the dream of a college education within reach for millions of Americans.

And now is the time to create the jobs that remake America for the 21st century by rebuilding aging roads, bridges and levees; designing a smart electrical grid; and connecting every corner of the country to the information superhighway.

These are the actions Americans expect us to take without delay. They’re patient enough to know that our economic recovery will be measured in years, not months. But they have no patience for the same old partisan gridlock that stands in the way of action while our economy continues to slide.

So we have a choice to make. We can once again let Washington’s bad habits stand in the way of progress. Or we can pull together and say that in America, our destiny isn’t written for us but by us. We can place good ideas ahead of old ideological battles, and a sense of purpose above the same narrow partisanship. We can act boldly to turn crisis into opportunity and, together, write the next great chapter in our history and meet the test of our time.

The writer is president of the United States.

This writer is not one to sit through a six hour SEC hearing but the hearing involving Bernie Madoff whistleblower Harry Markopolos was riveting.  It had all the suspense of a whodunit novel with Mr. Markopolos playing the do-right agitator complete with all the necessary one liners to give this program a rating of must see TV.  One of Markopolos’ best one liners:  you could fly the entire 3000 person “SEC staff to Fenway Park, sit them inside the stadium and they would not be able to find first base.” Ouch.  Mr. Markopolos testified in front of Congress yesterday in an effort to explain to the body how he was able to detect and diagram the Madoff fraud in a matter of hours when Securities and Exchange Commision (SEC) investigators could not even though he handed it to them on a silver platter.  Mr. Markopolos said that he knew Madoff was a fraud within five minutes of looking at Madoff’s firm’s performance return line.  Apparently, the return line was at a perfect 45 degree angle of continuous growth with no down ticks or variations.  Markopolous testified that no such performance line for an investment firm has ever existed in history and is a virtual impossibility.  An investment company cannot have such sustained and continuous growth over an extended period of time without any down turns unless something is up.  Markopolos further testified that it took him an additional four hours to prove that his hypothesis of fraud was correct.   Mr. Markopolous testified that he tried to get the SEC to investigate Madoff for nine years by continually submitting evidence verifying his allegations.  Such submissions were made to the SEC in 2000 when Madoff had a portfolio of only $3-7 billion.  Additional submissions and evidence was given to the SEC again in 2001 when only a $12-20 billion dollar portfolio was at risk.  He submitted more evidence to the SEC in 2005 when $30 billion was at risk.  Such submissions were detailed and verified not to mention the fact that Markopolous was considered by the SEC to be a credible tipster.  After each submission, the SEC, according to one of its employees, “dropped the ball.”  Markopolos testified that he reported Madoff to a representative in the SEC Boston regional office, a representative who believed Markopolos allegations of fraud against Madoff (after doing the math), but for jurisdiction purposes, the Boston SEC rep was required to forward the information to the SEC New York regional office.  The New York office reviewed the case and decided not to move forward. Huh?  If the SEC had pursued Markopolos’ first tip investors would be $40 billion dollars richer today.  Some folks did listen to Markopolos.  Markopolis testified that he warned a few large investment banks and close friends who stayed away from Madoff at a time when pressure was high to invest with the former NASD chief. 

Markopolos further testified that the SEC was afraid of Madoff and big firms in general.  His exact quote was that “the SEC is a captive regulator” (captured by the industry) who viewed Madoff as a powerful and respected person on Wall Street with a large firm and therefore should not be investigated.   Instead of the SEC protecting investors from financial predators, Markopolos asserts that the SEC is protecting financial predators from investors.  Markopolos accused the SEC of being inadequately equipped with the industry expertise needed to detect the fraud of the 21st century.  Such fraud that many times can span several departments within one corporation.  Therefore, if different divisions of the SEC is responsible for different departments within a corporation and the people representing such divisions do not communicate or understand how fraud can be discovered only by assembling all the information or ”doing the math” and viewing it as a whole the agency will continue to miss key indicators of fraudulent activity.  Markolous said that the only reason Madoff was caught was because he confessed and could have easily gone to $100 billion undetected by the regulatory agency.   Markopolis further testified that the SEC is unwilling to investigate the big firms with big bank accounts and that there are no incentives for the SEC to find fraud.  As a matter of fact, he gave one example where senior SEC officials, speaking at an industry event who told the participants “if you think that you are being investigated too much call our hotline number.”  Apparently there is a hotline number to stop or slow down an investigation but not a whistleblower hotline number to initiate one.  Go figure.

Markopolos also gave suggestions on how the SEC can be improved.  He mentioned installing a whistleblower phone line with incentives to encourage industry participants to report bad behavior.  It’s very surprising that the SEC does not have such a hotline already set up.  Markopolous suggested that the SEC is overlawyered and should recruit more industry professionals who have had experience dealing with the complex instruments of the 21st century.  Many of the new hires to the SEC are just out of law school and use the regulatory agency as a stepping stone while always keeping a discerning eye on their life after the SEC.  Many are itching to go into the industry they are regulating.  Because many former SEC employees go to companies or industries regulated by the agency one might surmise that a potential conflict or disincentive toward prosecution/investigation might exist.  Thus the Markolous suggested that the SEC provide incentive compensation to bring the big cases.  Thus Markopolos suggests that the SEC should incentivise investigators and attorneys through compensation increases/bonuses for bring in the big cases.

One last excellent one liner: After swindling $50 billion from investors ”Madoff is currently under penthouse arrest.” Nice one.

Yesterday Tom Daschle withdrew his name from nomination to become President Obama’s next Secretary of Health and Human Services.  The former senate majority leader bowed out after it was reported that he failed to pay taxes on a car and driver gifted to him by a friend.  Daschle said in his withdrawal that he did not want to be a distraction to the President’s overall mission of accomplishing the Administration”s agenda.  So…..now we have an opening that appears to be a perfect fit for a certain physician, former governor of Vermont, and DNC chairman.  Dr. Howard Dean seems to be the next logical choice for the position.  So why is the administration hesitant about putting Dean’s name out there as a potential candidate?  Rumor has it that there is some bad blood/personality conflict between Rahm Emmanuel and Dean.  Not to mention the fact that Dean is not known for playing nice with senators, senators he will need to help pass a comprehensive health care reform bill.  During the campaign Dean may have stepped on a few senate toes, the owners of which may still hold grudges.  However, Dean can tout a few very significant accomplishments in the health care arena. He chaired the National Governor’s Association Health Care Task Force in the 90s. He was also the architect of the health care system in Vermont which has been hailed as the best top to bottom health care system of any of the fifty states (Vermont ranked 16th in overall health in 1990 and today is ranked 1st).  Heathcare was the primary focus of his 2004 presidential campaign.  If he can work on the alleged my-way-or-the-highway aspect of his personality he could probably do a good job.  Getting a comprehensive health care reform bill passed requires a certain amount of schmoozing and negotiating with special interest, corporate america, insurance companies, and the Senate (both sides of the isle).  Thus, a rigid partisan stance/approach steeped in an abyss of ideology makes for a counterproductive endeavor. 

The Senate confirmed Eric Holder yesterday in a vote of 75-21 as the first African-American to hold the nation’s top cop position.  Though not before a few of republican senators, Senator Tom Coburn of Oklahoma, Senator John Cornyn of Texas, and Senator Jim Banning of Kentucky voiced their opposition to the Holder confirmation. The reasons they opposed?  Well, the jist of their opposition was Holder’s alleged lack of independence and judgment stemming from a controversial pardon by former president Bill Clinton…..huh.  Yet all three of the same GOP Senators voted to confirm Alberto Gonzales who freely admitted that as Attorney General he wears two hats, one as President Bush’ s attorney and the other as the attorney for the people of the United States.  Uhhh…apparently he forgot about his obligation to the people.  As for President Bill Clinton’s pardon of Marc Rich  which seemed to be the GOP senators main objection to confirming Holder, where was the outrage when President Bush commutated the sentence of Scooter Libby?  The hypocrisy is overwhelming.  Second, Eric Holder did not pardon Marc Rich, President Clinton did.  As deputy Attorney General or Attorney General for that matter, Holder had no final decision making power with respect to any grant of clemency or pardons.   Further, disagreement over a couple of Holder’s decisions out of the hundreds made by him during his prior post at the Justice department is not a valid reason to vote against an otherwise uniquely and very qualified candidate.   All in all, Mr. Holder was confirmed and under his leadership credibility will be restored to the Justice department.  Mr. Holder’s oath will be administered by Vice President Joe Biden this morning at the Justice department.  Yes folks…..that is CHANGE I can definitely believe in.

In spite of President Obama’s very public overtures towards bipartisanship the GOP is still towing the party hard line.  Not one single Republican in the House voted for President Obama’s American Recovery and Reinvestment Act.  Below is a list of all the Republican House members and a few democrats who did not vote for the plan.  If you believe that your Congressman should vote for this Act call him up and make your wishes know.  The only way to change Washington and get rid of the party bickering is to call or write to the people in Congress and tell them what you want them to do.  We as the constituents have a lot of power lets use it.  Remember it is up to us to make the change by forcing our leaders to listen and represent our interest in Washington.  Call your Congress member.  The Republican member names are all italicized.  The area code for all the numbers is #202