While it was clear they wanted to write a gushing approval of his first days in office, even WaPo couldn’t quite bring themselves to “suspend disbelief” enough to do that.
I started chuckling at the second sentence:
But the presidency does not come with a magic wand; nor, we have learned, is Mr. Obama, however talented, a wizard.
They’re just “learning” that? My goodness, how in the tank were they?
Second discovery by WaPo:
The president’s admitted mistakes on nominations have served as a reminder that he is, after all, rather new to the game of national politics and the art of balancing the lofty aims of campaign pledges against the real-world demands of governing.
Campaign rhetoric, most remember, which was steadfastly supported (and apparently believed) by the Washington Post. As most of us understood, but WaPo is now discovering, inexperience in national politics has its price.
The narrow and rushed passage of his stimulus package underscored the difficulty of living up to his grand promises of transparency; the campaign trail talk about not cutting deals behind closed doors yielded to the demands of the moment. And if it was this hard for Mr. Obama to lure Republican votes to spend money, how will he manage to entice Republican support to deal with even more contentious issues, such as climate change or health care?
Grand promises of transparancy that were additionally unfulfilled on two pieces of legislation which weren’t rushed – the equal pay and S-CHIP legislation. Neither were delayed the 5 days his campaign had promised voters for them to review the bills prior to signing. Neither required the rush they received. The stimulus bill is just the worst of the bunch.
And while it isn’t necessary to entice Republican support on the more contentious issues in order to pass the bills, such support provides invaluable political cover. Given how badly both Democratic Congressional leaders and Obama handled the bi-partisan effort on the stimulus bill, there’s nothing that says they’ll ever change enough to entice Republicans.
Then there is Timothy Geithner:
The immediate challenge for the new administration, one that is harder and more important than the stimulus measure, will be to bring stability to the nation’s banking system. On that task, “chastening” is a mild word to apply to Treasury Secretary Timothy F. Geithner’s debut of the administration’s plan. The president promised that his treasury secretary would offer “very clear and specific plans,” after which Mr. Geithner laid out a blueprint only. The result was to undermine both Mr. Geithner, who is abler than he seemed at the rollout, and the plan, which is more promising than its reception would suggest.
Geithner, the man who was so important to the bailout effort that his tax cheating had to be ignored, has been less than impressive. Perhaps that will change, but to this point, he has done little to inspire confidence either among voters or the financial sector. The WaPo’s declaration that Geithner is “abler than he seemed” has yet to be proved.
WaPo then leavens its criticism with some faint praise, overstating the importance of the first two bills signed. They were simply retreads of bills Democrats had tried to pass during the Bush administration. Unlike what the Post tries to imply, there was no real leadership exercised by Obama or his administration in their passage.
Unfortunately for Mr. Obama and the nation, the current economic situation does not allow for the usual margin of error; fairly or not, he will not be measured against normal historical standards. Sooner rather than later, he will have to find the right balance between reassurance and alarmism; sooner than in past administrations, he needs a full team in place.
Sooner is much preferable to later. Part of the problem we’re experiencing today is the alarmism being spread from the nation’s premier bully pulpit. “Catastrophe” is a word to be used sparingly from that platform and should be reserved for actual catastrophe. After calling for swift action and passage of the bill on Friday and claiming the nation couldn’t wait another hour, we understand now he won’t be signing the bill until Tuesday, a weekend Valentine get-away taking priority. That’s not leadership, and it certainly will cause critics to discount any such future warnings as more fear-mongering.
WaPo then contradicts itself:
Fortunately for the nation, while Mr. Obama has an experience deficit, he possesses a surfeit of smarts and steadiness.
He certainly has an experience deficit, and that is becoming increasingly apparent. However, given his recent penchant for alarmism as discussed in the article, it seems rather contradictory to then laud him for his “smarts and steadiness”. Smart and steady people don’t resort to fear-mongering to drive their agenda. However the unsure and inexperienced do.
WaPo then concludes that things will straighten out, and the nation’s optimism in Obama will be rewarded and, now that he has lowered expectations (through his alarmism), will patiently wait the years, not months, necessary to see the recession through. I find that to be mostly wishful thinking.
All totaled, the Washington Post, to use a phrase that has become rather trite in the last year, is trying to put lipstick on a pig. Following a WaPo article touting the passage of the massive pork laden spending bill as a “victory of historic proportion“, it stands to reason they’d try to double down on their presidential bet, hoping it all works out as they’ve imagined it will. But by their own words, the dream isn’t off to a good start.
Not content with busting the bank with the Pork bill and TARP II, now, finally, the 50+ trillion in unfunded mandates are apparently next:
The following week, the president will host what the White House is billing as a “fiscal responsibility” summit on February 23. The goal of the summit is to begin weighing the impact of massive federal programs like Social Security and Medicare just days before the president plans to unveil his first annual budget to Congressional leaders.
Budget? There’s nothing left to spend. Frankly I think Michael Ramirez has the best take on it.
My guess is this can will get kicked down the road, left for 45 or 46 to deal with.
I‘ve spoken before about the political brilliance that running on nebulous catch phrases can accrue for the politician. Lay them out there, let the voting public decide what they mean to each of them and then ride the wave to elected office.
Obama did precisely that. And many who are marginally on the right, were fooled by that. Those who voted for him projected their “hope” for “change” on the blank screen he provided. But, as you’ll see in this example, the reality of who Barack Obama really is may be clearing up, and it appears it is a huge disappointment to many of his more conservative/libertarian supporters.
Silicon Valley, where I live, is home to both political liberals and conservatives–more liberals of late, but not by a huge margin. The lopsidedness occurs on the freedom-statist divide. An overwhelming majority of Valley residents would place themselves on the freedom side and against the state. This should not surprise anyone. Silicon Valley is a land of immigrants, both foreign and from other American states. What draws people to Silicon Valley is the freedom to go out and commit industrial revolution and make the future.
Thus it was always odd that Silicon Valley voted for the most statist-inclined presidential candidate since FDR. Silicon Valley fell in love with Barack Obama. His youth and multicultural cool, along with the Web superiority of his presidential campaign, had Silicon Valley going googly for Obama.
In the eyes of Silicon Valley, Obama was like the Apple Macintosh. John McCain was like Windows.
Now comes the reckoning. Obama may be the coolest guy ever to hold the office of U.S. president. He may be the personification of an Apple Mac, iPod and iPhone. But this week Obama proved he is a big-state liberal, through and through.
My Silicon Valley friends who supported Obama are weirdly silent about this. I suspect they are in denial, still hoping for the closet libertarian Obama to emerge. Throughout the 2008 campaign, Silicon Valley Obama voters would tell me that Obama was really an economic centrist. Forget his liberal Senate record and Saul Alinsky-conditioned career as a community organizer. Forget the Chicago-style thug politics. That was in the past. Obama did what he had to do to rise. Once in the Oval Office, Obama will really govern more like John F. Kennedy, Bill Clinton or Tony Blair.
Say it enough times, and you can almost believe it. Well, sorry about that, you Obamacons. You just got thrown under the bus.
The $790 billion stimulus headed for Obama’s desk is statist. It is also backward looking. Sure, there are some forward-looking initiatives, such as a few billion for broadband. But the bill is overwhelmed by “shovel-ready” projects aimed at school building improvement, road repair and so forth, and by bailouts to profligate state governments.
Very disturbingly, the bill has the stench of protectionism in it. This is antithetical to the interests of trade-happy Silicon Valley.
What is becoming clear is the Obama we can expect to govern is the big government statist liberal and not a “closet libertarian” as they hoped. Note the word. They fooled themselves into thinking that was actually a possibility. Yet as I pointed out below, this huge and unfocused spending plan being touted as a “stimulus” is nothing more than a massive expansion of government. It is also just the prelude for further intrusion, essentially a down-payment which paves the way for massive intrusion in health care and the energy sector.
For those who cast a jaundiced eye on the candidate and his blank slate campaign, none of this comes as a surprise. A creature of the most liberal political machines in America, a student of Saul Alinski’s method and someone who consistently saw government as the answer and not the problem during his political rise, the Barack Obama the folks are suddenly discovering in Silicon Valley and other parts of America is precisely the guy we expected.
His “youth and multicultural cool” may have been part of sales job, but now it comes down to performance. Thus far his performance has been directed at expanding government. Two of the first three bills passed in his administration have massively increased government. And as I’ve noted, he promises even more.
In less than a month, Obama has signaled that there isn’t a libertarian leaning bone in his body. The question remains as to how people, like those in Silicon Valley, managed to fool themselves enough to vote for a candidate who so obviously didn’t fit their “hope”. And are they, as this particular piece seems to indicate, feeling a little buyer’s remorse?
I was sitting here with my two older grandsons and when word came that the bill had been approved by the Senate I said, “congrats boys, you just went about $30,000 into debt tonight”. Of course that spurred an instant response – “What!?”. And then we had a nice little talk.
A bill full of wasteful, unfocused spending with money we don’t have and we’ll be lectured soon about “fiscal responsibility” and “sacrifice” by the profligate yahoos that put this mess together. Can’t wait.
The other entity who got us into this financial mess has no problem whatsoever about using the equivalent when necessary or convenient while lecturing others about their insensitivity to the times:
A government plane will ferry Sen. Sherrod Brown (D-Ohio) back to Washington from his mother’s wake in Ohio in time to vote tonight, courtesy of the White House.
Brown won’t even be leaving until viewing hours end at 8 p.m. He then travels back to Washington for his mother’s interment, vote and fly home for his mother’s funeral tomorrow morning.
Nope, when government decides it must “maximize the time” of it’s members, it pulls out all the stops and, as usual, you pay for it.
What was the line – “as long as you’re taking our money”?
Well, that’s all government does.
Do as I say, not as I do.
Hope and change.
I guess this is “excitable Andy” day, but Andrew Sullivan is engaged in some pretty poor spin today. Calling it a canard, Sullivan has this to say about the proposed census move to the White House by the Obama administration:
Again, this is not a real issue. It’s an issue driven by the paranoid GOP base. The census has not been removed from the Commerce Department’s purview, as Ambers explains below. And past censuses have long been conducted with coordination from the White House staff.
The explanation Sullivan offers says:
“This administration has not proposed removing the Census from the Department of Commerce and the same Congressional committees that had oversight during the previous administration will retain that authority.” …
Kenneth Prewitt, who served as Census director from 1998 to 2001, said he worked with White House staff during the 2000 Census on budgeting, advertising and outreach efforts.
But as Jeff Zeleny of the NYT reminds us, that’s not at all what the White House proposed:
The White House signaled last week that it would exert greater control over the Census Bureau, in part because of a concern among minority groups over Gregg leading the Commerce Department. Then, in response to complaints by Republicans, the administration said it would work closely with the director of the census, but it would not be under the direction of the White House.
Those “minority groups” were the Congressional Black and Hispanic caucuses. So it was political pressure that precipitated the move. Additionally the move was to have the director of the census bureau work with and report directly to Rahm Emanuel, President Obama’s chief-of-staff.
Now the claim is that nothing different was planned, and it all was a misunderstanding and that it will be business as usual (now that it appears a Republican isn’t going to be running Commerce).
Of course, that’s nonsense. But not to excitable Andy. He, with his fine tuned discrimination antenna says:
This issue was championed by Republicans for the usual “the-darkies-are-taking-over!” reasons.
Lost in his sloppy analysis is the fact that the announcement by the Obama administration was very specific about the move and why – complaints from the CBC and Hispanic caucus. Also missing is the fact that the move was overtly political and meant to placate the complaining political special interest groups. For a guy who constantly complained about the politicization of the Justice Department, he seems fine with covering an attempt to do the same thing with the census. Coordinating budget and outreach with the executive department isn’t at all the same as proposing a move of the entire census bureau out from under the Commerce Dept. – where it has always been – to the White House.
Sullivan will be fun to watch as he becomes part of the effort to backtrack and coverup for the new administration.
This is a great one:
Read the story as well. A 40 year hunt for the man who saved her life. A tip of the cap to both of them. Him for what he did and her for not forgetting.
President Obama has been waving a quote from Jim Owens, CEO of Caterpillar, “said that if Congress passes our plan, this company will be able to rehire some of the folks who were just laid off.”
Asked if the stimulus package would be able to stop the 22,000 layoffs or not, Owens said, “I think realistically no. The truth is we’re going to have more layoffs before we start hiring again”
“It is going to take some time before that stimulus bill” means re-hiring, he said.
Amateur hour continues.
Well, well, well. I wondered what the impact of moving the census from under Commerce to the White House (a blatantly political move) would have on Gregg. Apparently it became obvious he was a token Republican (but a strong Senator) who was being taken aboard the Obama administration in a relatively useless position to give Obama some bi-partisan cover.
Sen. Gregg stated, “I want to thank the President for nominating me to serve in his Cabinet as Secretary of Commerce. This was a great honor, and I had felt that I could bring some views and ideas that would assist him in governing during this difficult time. I especially admire his willingness to reach across the aisle.
“However, it has become apparent during this process that this will not work for me as I have found that on issues such as the stimulus package and the Census there are irresolvable conflicts for me. Prior to accepting this post, we had discussed these and other potential differences, but unfortunately we did not adequately focus on these concerns. We are functioning from a different set of views on many critical items of policy.
“Obviously the President requires a team that is fully supportive of all his initiatives.
“I greatly admire President Obama and know our country will benefit from his leadership, but at this time I must withdraw my name from consideration for this position.
Gregg also said there was nothing that came up during the vetting process that caused him to withdraw.
So Obama’s back in the hunt for a Commerce Secretary.
Since the inception of the current downturn, free market capitalism has taken quite the bashing. Supporters of significant government involvement in the economy deride the horrors of “unfettered capitalism” and a “free market run amuck.” Frequently, deregulation of capital markets is singled out as the most dastardly culprit, to which Pres. Obama seems to be alluding when he blames “relying on the worn-out dogmas of the past,” and “too little regulatory scrutiny.” Yet, after the last eight years in which we witnessed Sarbanes-Oxley, No Child Left Behind, Medicare Part D, and numerous attempts to reign in Fannie Mae and Freddie Mac shoved aside by legislators, evidence of unregulated economic activity being the source of our crisis seems rather scant.
The idea that “deregulation” was somehow responsible for the mortgage meltdown is a particularly shaky proposition. Shannon Love explains why:
Leftists have to answer a question: if greedy, irresponsible, unregulated etc. capitalism caused the housing bubble, why didn’t we see a similar bubble in commercial real-estate markets which operate under even less regulation than the residential markets? Why does the politically neglected and unregulated commercial real-estate market exhibit much milder swings?
The differences between residential and commercial real estate provide the means to test the hypothesis that government intervention or the lack thereof caused the housing bubble and subsequent collapse of the financial system. We can compare the two markets because the same institutions ultimately make residential and commercial loans. They make loans in the same communities and regions. Changes in the economy affect both types of real estate at the same time and to the same rough degree. The only major difference between the two markets lies in the degree of government intervention.
After dispensing with some obvious questions about the comparison, Love highlights how the residential market was essentially turned into a Lemon’s Market:
As Love points out, the commercial real estate market has no such mechanism muddying its waters, and information is comparatively less asymmetric. Without the government interference, commercial mortgage lenders let the potential for bad outcomes drive their decision making:
More than any other policy, the creation of Freddie Mac and Fanny May distorted the residential mortgage market in a way that the commercial market escaped. The FMs exist solely to induce lenders to make residential loans that the free market judged too risky. The FMs buy up residential mortgages from primary lenders and bundle them together in securities. They do so precisely in order to short-circuit the free-market feedback system that communicates to banks when the financial system as a whole has lent out as much money as it safely can. That feedback system worked like a governor on an engine. It kept the system from running away and lending more money than it could recoup, but also prevented people with poorer credit from getting loans.
Politicians who wanted the engine to run faster created the FMs to bypass the governor in order to get higher performance in the short run. Since the FMs would buy up almost any mortgage, lenders could make riskier and riskier loans without suffering any negative consequence. The FMs replaced the self-interested secondary-market buyers with people playing with government money and a mandate to induce more and more lending. Special dodgy accounting rules allowed the FMs to hide the risk behind the securitized mortgages they sold.
Tellingly, no such intervention occurred in commercial markets. The FMs’ charters expressly prevented them from buying commercial mortgages. As a result, the commercial mortgage market functioned with a free-market governor. When lenders made too many risky loans, free-market secondary buyers stopped buying their mortgages and the system cooled down. As a result, commercial markets saw no runaway boom and subsequent colossal bust.
Although I think that laying the crisis solely at the feet of the residential mortgage market is overly simplistic (for example, what was up with the ratings agencies?), Love does point to a very apt comparison as to how government intervention in the market changes incentives and behavior. If you guarantee risks against bad loans, and subsidize the debtors, then more of such loans will be made. Remove such a guarantees and subsidies and market forces will severely punish improperly compensated risk taking.
The trade off, of course, is that free markets do not allow much opportunity for rent-seeking. Which is why Love’s final lament is so true:
Sadly, experience suggests that mere empiricism has no place in political economics.
That’s because empiricism does not buy votes.