Free Markets, Free People

Bruce McQuain

Good Thing That Doofus Bush Is Out Of Office (UPDATE)

Because Mr. Smooth is much less likely to commit the same sorts of gaffes he was:

Leno asked the president whether the White House bowling alley had been “burned and closed down” in light of Obama’s gutter ball embarrassment on the campaign trail last year.

Obama replied, “No, no. I have been practicing . . . I bowled a 129.”

The audience roared with laughter, and the late-night talk show host assured Obama “that’s very good, Mr. President.” To which Obama interjected, “It’s like — it was like Special Olympics, or something.”

The audience laughed. But the White House didn’t let the comment linger without clarification.

“The president made an offhand remark making fun of his own bowling that was in no way intended to disparage the Special Olympics,” White House spokesman Bill Burton told reporters flying aboard Air Force One after the taping of the show, according to a transcript released by the White House. “He thinks that the Special Olympics are a wonderful program that gives an opportunity to shine to people with disabilities from around the world.”

Ummm. Got it (and yes, I believe it – it was a poor attempt at humor by someone who still hasn’t figured out he needs to be very careful with his speech). That’s what you get when you let him go talk sans the teleprompter. And even with a teleprompter, he’s had some fun lately, hasn’t he?

Irish Prime Minister Brian Cowen was just a few paragraphs into an address at a St. Patrick’s Day celebration at the White House when he realized something sounded way too familiar. Turns out, he was repeating the speech President Barack Obama had just given.

Cowen was set to speak twice at the White House on Tuesday night because there were two different parties going on at the executive mansion. No matter — he would give the same speech to the two different audiences.

But Cowen was 20 seconds into his second address when it dawned on him that he was giving word for word the speech that Obama had just read from the same teleprompter.

Cowen stopped and looked back at the president to say, “That’s your speech.”

Obama laughed and returned to the podium to offer what might have been Cowen’s remarks. In doing so, President Obama thanked President Obama for inviting everyone over.

Of course no one expects these things to get the play they’d have gotten if the “Doofus-in-Chief” had still been in residence. You see, Mr. Obama is “brilliant” and consequently, these little gaffes are of no consequence or importance. On the other hand, Bush was a boob, and thus the same sorts of little gaffes pointed out how horribly the country had erred in picking him.

There. Glad we’ve settled that finally.

UPDATE: Apparently Obama was wrong about “Special Olympics” bowlers as well:

Kolan McConiughey, a Special Olympics competitor who has bowled three perfect 300 games, tells TMZ that the Prez has to score a lot higher than 129 to beat him. Kolan says he bowls an average of 266.

So with a 129, he might not even make the SO cut.

~McQ

Constitution? We Don’t Need No Stinkin’ Constitution!

As the Senate takes up its version of the violation of Article 1, Section 9 of the Constitution, also known as the bill to tax the hell out of the AIG bonuses, one note of sanity sounds through. Sen. John Kyl:

“I don’t believe that Congress should rush to pass yet another piece of hastily crafted legislation in this very toxic atmosphere, at least without understanding the facts and the potential unintended consequences,” he said.

“Frankly, I think that’s how we got into the current mess,” he added.

Heh … ya think?

Not that it matters – this will most likely pass the Senate as well and be signed into law by “Constitutional Law Professor” and President Barack Obama, but when it ends up in court and is declared unconstitutional, it shouldn’t come as a surprise. The Constitution always takes a back seat to populism and CYA.

~McQ

The Transcendant Brilliance of Timothy Geithner

So much for I only knew about this last Tuesday”.   And this was the guy Democrats said we had to have beceause his brilliance was such that we should over-look his tax problems?

Treasury Secretary Timothy Geithner told CNN Thursday his department asked Sen. Chris Dodd to include a loophole in the stimulus bill that allowed bailed-out insurance giant American International Group to keep its bonuses.

In an interview with CNN’s Ali Velshi, Geithner said the Treasury Department was particularly concerned the government would face lawsuits if bonus contracts were breached.

Freakin’ amazing.

Geithner told Velshi Thursday he takes full responsibility for the situation.

After spending most of a week denying he even knew about it prior to last week. I don’t think Geithner understands what taking “full responsiblity” really means (or should mean).  Oh, and see Goodwin’s quote below.

~McQ

Quote Of The Day

Disgust is a bi-partisan concept. Michael Goodwin again:

Ronald Reagan’s famous line that “government is the problem” kept going through my head as the AIG hearing demonstrated the dangers of Washington’s role in the economy. The very people, Republicans and Democrats alike, who can’t balance America’s budget now claim the expertise to run banks, insurance companies and automakers.

If we let them, we’re dumber than they are.

Amen.

~McQ

The New Gitmo Plan – Release Terrorists In US

Al Qaeda having difficulty establishing sleeper cells in the US? Not a problem – let the Attorney General help:

European justice ministers met with Mr. Holder earlier this week and pressed for details on how many Guantanamo prisoners the U.S. planned to release domestically, as part of any agreement for allies to accept detainees. Mr. Holder said U.S. officials would work to respond to the questions European officials have over U.S. Guantanamo plans.

For “people who can be released there are a variety of options that we have and among them is the possibility is that we would release them into this country,” Mr. Holder said. “That process is ongoing and we’ve not made any determinations or made any requests of anybody at this point.”

Seriously, anyone – sound like a better option than keeping Gitmo open and these prisoners there until and unless another country can be found to take them?

~McQ

Quote Of The Day

Even AP seems to be figuring it out. Here’s an analysis by AP’s David Espo discussing the AIG debacle:

Which goes to the crux of the Democrats’ current political problem.

Gone are the days when they could merely bludgeon the Bush administration and promise to seek bipartisan solutions to the nation’s economic problems.

Now, in control of the White House and Congress, they are struggling to come up with an explanation for what no one in either party seems moved to defend.

You can’t help but snicker a bit, can you?

~McQ

Rudderless and Sinking

Here’s about as succinct a summary of the Obama administration to date that I’ve seen:

President Obama still enjoys the popularity that comes with not being George Bush, especially in a city top-heavy with Democrats. But his initial response to the global calamity that he found on entering the Oval Office has not inspired popularity’s more sober elder brother, confidence. Large constituencies, notably business, are voicing their scepticism openly. The President’s much-vaunted $787 billion stimulus package is being widely interpreted, even by some of those (such as Warren Buffett, America’s second-richest man) who openly supported Mr Obama for the presidency, as a serious failure.

And I don’t foresee it getting much better. Of course the summary comes to us via the British press (Simon Heffer) who have the luxury of being once removed from the situation and therefore have the ability to be somewhat more objective than much of our own media.

For instance, the much more perceptive analysis of the AIG mess:

Conscious that he has made mistakes, and conscious especially of the increasing perception that he is simply throwing cash at unreformed institutions in the hope that something will happen, Mr Obama is trying to raise his game. He had a soft target two days ago, when he joined in America’s outrage at the paying of bonuses to executives of AIG, the sinking insurance giant now buoyed by public money. This provoked further attacks on him from the Right. Why was he using US taxpayers’ money to bail out a company whose main investors were French, German, Swiss and British banks? And wasn’t he merely jumping on the bandwagon of attacking the bonuses to distract attention from his own policy failings – creating a bogeyman in the same way that Gordon Brown and Harriet Harman did with Sir Fred Goodwin last month?

And of course, we’re witnessing how poorly that’s turning out (you know there’s a political problem when the CEO of AIG comes off as a more sympathetic figure than Barney Frank and Chris Dodd).

Heffer says that instead of concentrating on what ails us financially, Obama has another much broader agenda:

Instead he has been trying, on a broad front, to fulfil the reformist ideal that informed his election campaign. Rather like a would-be government in Britain that talked of “sharing the proceeds of growth”, the candidate who wanted to redistribute wealth now, as President, has no wealth to redistribute. A $3.6 trillion budget showed little sign of addressing the problem of stimulating demand. Both big corporations and small businesses feel overtaxed, their competitiveness hampered, and incapable of creating jobs at a time when they are desperately needed. Mr Obama’s green agenda, which was also a significant part of his election promises, entailed higher taxation that will retard the economy just when it needs to grow. His greatest ambition – of starting a national health service – seems impossible in the present climate. As he seeks to move forward on this broad front Warren Buffett himself has attacked him, saying that his first three priorities should all be the economy. Paralysed by inexperience and a Blairish desire to be liked, and hampered by inadequate senior staff, he is now finding that even some of his own party in Congress feel he has gone too far in the socialist experiment. Mrs Pelosi admitted at the weekend that a second stimulus package – which leftist Democrats are calling for, to the horror of much of the rest of America – was not yet on the cards.

Dead on right. The line “paralyzed by inexperience and a Blairish desire to be liked, and hampered by inadequate senior staff”, strikes home. It is a particularly lethal political combination which we’re seeing displayed in spades. It is no longer a comedy show, it has become a horror show. And with the move by the Fed to buy back long-term bonds, the horror is only deepening.

And we’re stuck looking to Timothy Geithner, Barack Obama and Chris Dodd for salvation? Lord help us all.

~McQ

[HT: Joel C.]

Obama, NAFTA, Mexico, China, Trade and Tariffs

Our congratulations go out to the Obama administration on their latest foreign policy and trade triumph. Last week, apparently without consultation, they did away with a NAFTA pilot program which allowed Mexican trucks to deliver goods to certain areas of the US. Mexico has responded:

Mexico has released the list of U.S. products that will see tariffs of 10 percent to 45 percent. The move is in retaliation for the U.S. scrapping a test program allowing Mexican trucks to deliver goods beyond a U.S. border zone.

Among affected goods are certain fruits and vegetables, wine, juices, sunglasses, toothpaste and coffee, according to a government statement. Most tariffs are 10 percent to 20 percent, with unspecified fresh products subject to a 45 percent charge. The tariffs will apply to $2.4 billion of goods and take effect today.

Just what you need in a down economy – punitive tariffs for political stupidity. And there won’t be a solution anytime soon:

Talks to diffuse the first [self-inflicted -ed.] trade dispute of President Barack Obama’s administration can’t begin until the U.S. has a Commerce Secretary, Economy Minister Gerardo Ruiz Mateos said.

So far I’m really not at all impressed with the status of the “better relations” throughout the world promised by the Obama administration.

Oh, and for an encore, how about this little goodie:

Energy Secretary Steven Chu on Tuesday advocated adjusting trade duties as a “weapon” to protect U.S. manufacturing, just a day after one of China’s top climate envoys warned of a trade war if developed countries impose tariffs on carbon-intensive imports.

Mr. Chu, speaking before a House science panel, said establishing a carbon tariff would help “level the playing field” if other countries haven’t imposed greenhouse-gas-reduction mandates similar to the one President Barack Obama plans to implement over the next couple of years. It is the first time the Obama administration has made public its view on the issue.

“If other countries don’t impose a cost on carbon, then we will be at a disadvantage…[and] we would look at considering perhaps duties that would offset that cost,” Mr. Chu said.

Brilliant.

~McQ

AIG: A Mess Of The Democrats Making

I know this will come as a complete surprise, but some Democrats have been lying to you. But before we get to that, let’s review.

AIG was deemed dangerously insolvent a few months ago, so insolvent that it required the government to step in and save it. It was one of the “too big to fail” companies. It got TARP funds. Then, as a part of the “stimulus” bill, signed into law under the Obama administration, an attempt was made to add a provision to strictly limit such payments as those now causing the faux outrage:

Around the same time, Congress and Obama’s team were passing up an opportunity to put in place strict laws to revoke bonuses from recipients of the $700 billion Wall Street bailout. In February, the Senate voted to add such a proposal to the economic recovery bill that cleared Congress, but in final closed-door talks on the measure, that provision was dropped in favor of limits that affect only future payments.

There was a lot of lobbying against it and it died,” said Sen. Ron Wyden, D-Ore., who proposed the measure with Republican Sen. Olympia J. Snowe of Maine. He said Obama’s team is sending mixed messages on what will and won’t be tolerated on bonuses, with the president coming out strongly against excessive Wall Street rewards but top officials not following through.

“The president goes out and says this is not acceptable, and then some backroom deal gets cut to let these things get paid out anyway,” Wyden said. “They need to put this to bed once and for all.”

They also need to “put to bed once and for all” this nonsense that they “didn’t know” until a couple of days ago. And, of course, had anyone actually read the bill that they claimed was too important to delay, they’d have actually caught this, one assumes. But it appears, at least initially, that reading legislation before it is signed is just not a priority for this administration or Congress.

And surprise, surprise, we’re finding what they did pass sucks.

While administration officials insisted Tuesday that neither Obama nor Geithner learned of the impending bonus payments until last week, the problem wasn’t new. AIG’s plans to pay hundreds of millions of dollars were publicized last fall, when Congress started asking questions about expensive junkets the company had sponsored.

A November SEC filing by the company details more than $469 million in “retention payments” to keep prized employees.

Back then, Rep. Elijah E. Cummings, D-Md., began pumping Liddy for information on the bonuses and pressing him to scale them back.

“There was outrage brewing already,” Cummings said. “I’m saying (to Liddy), ‘Be a good citizen. … Do something about this.’ ”

Around the same time, outside lawyers hired by the Federal Reserve started reviewing the bonuses as part of a broader look at retention and compensation plans, according to government officials who spoke on condition of anonymity. The outside attorneys examined the possibility of making changes to the company plans — scaling them back, delaying them or rescinding them. They ultimately concluded that even if AIG’s bonuses were withheld, the company would probably be sued successfully by its employees and be forced to pay them, the officials said.

In January, Reps. Joseph E. Crowley of New York and Paul E. Kanjorski of Pennsylvania wrote to the Federal Reserve and the Treasury Department pressing the administration to scrutinize AIG’s bonus plans and take steps against excessive payments.

“I at that point realized that we were going to have a backlash with regard to these bonuses,” Kanjorski said in an AP interview. In a meeting with Liddy later that month, he said he told the AIG chief that “all hell would break loose if we didn’t find a way to inform the public … and that we should take every step to put that information out there so we wouldn’t have the shock.”

And of course, Kanjorski is right. This is a “distraction”, as Rahm Emanuel is labeling it, that the administration could have avoided had the Treasury Secretary been on top of it and the President had exerted even a bit of leadership. Instead, both are in extreme cover-up mode. And as more and more info comes out, the time-line of events they issued has less and less credibility.

This wasn’t something that just emerged as a problem last Tuesday as Geithner is attempting to claim. This has been known and waved off for months. And that includes the provision that was going to be inserted in the “stimulus” package but died due to apparent Democratic lobbying.

~McQ

AIG: What Did They Know And When Did They Know It?

Edward Liddy, CEO of AIG, has a piece in the Washington Post today.  It is useful for a couple of reasons, one of which is to try to nail down the timeline in this dustup.

But first, this from another Washington Post article:

Senior White House officials said last night that President Obama did not learn that bonuses worth $165 million were to be paid to executives of American International Group until Thursday, one day before they were issued and two days after his Treasury secretary was informed that the payments were going forward.

A point or two to remember. One – $55 million had already been paid out under the very same plan in December of last year with little or no coverage. This wasn’t something new nor should it have been a surprise. This was a plan that was already in place and one has to assume, unless they weren’t doing their jobs, known to the appropriate people in the administration (not necessarily Obama, but at least Geithner).

That brings us back to the Liddy piece. Liddy joined AIG in September of 2008 to begin the difficult task of saving the insurance giant and structuring it so it was again profitable and able to pay the taxpayer funded bailout money back as quickly as possible. There’s a very telling paragraph in Liddy’s piece which makes the point that the plan which is such a huge surprise to the Treasury Secretary and President shouldn’t have been a surprise to anyone:

To prevent undue risk exposure in the meantime, AIG has made a set of retention payments to employees based on a compensation system that prior management put in place. As has been reported, payments were made to employees in the Financial Products unit. Make no mistake, had I been chief executive at the time, I would never have approved the retention contracts that were put in place more than a year ago. It was distasteful to have to make these payments. But we concluded that the risks to the company, and therefore the financial system and the economy, were unacceptably high.

In the meantime, AIG has restructured its 2009 compensation system (note the use of the word “compensation” by Liddy and not “bonuses”) and made all the cuts and changes I noted yesterday.

The fact that this is just another part of the same plan that paid out $55 million last year without a peep, was in place, per Liddy prior to his assuming the Chairmanship and has been in place for at least a year strongly argues one of two things – A) someone is not telling the truth about when they “knew” this latest payment was going to take place or B) someone was not doing their job and is now trying to cover that up like a cat covering crap.

Obama aides defended Timothy F. Geithner’s handling of the situation yesterday, with White House press secretary Robert Gibbs saying the president has “complete confidence” in the Treasury chief.

Sounds like a “heck of a job, Brownie” moment to me.

~McQ