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Tuesday :: April 07, 2009

Vermont Legislators Override Governor's Gay Marriage Veto

The Vermont legislature today overrode the Governor's veto of the law allowing same-sex marriage.

Vermont is now the first state in the U.S. to allow same-sex marriages through legislation.

The New York Times has more here.

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MN-Sen: Franken Winning Margin Expands To 312

The Minnesota Senate contest is a foregone conclusion, as it was when it started, Al Franken won the election. Today, at the direction of the Minnesota Election Contest Court, Minnesota counted more ballots. The result? Franken's 225 vote lead expanded to a 312 vote lead. Apparently, the more votes Coleman asks to be counted, the larger Franken's lead becomes.

The question is not will Al Franken become Minnesota's next Senator, the question is when. A final order from the Minnesota ECC should be handed down shortly and then the inevitable Coleman appeal to the Minnesota Supreme Court will need to be decided. Coleman has no chance of winning imo. Then the interesting part comes - will Minnesota's Republican Governor Tim Pawlenty certify Franken's election? Will a federal court (either a federal district court or the SCOTUS) enjoin the issuance of such certificate? Will Senate Republicans try to block Franken's entry into the US Senate? My guesses? Maybe (if Pawlenty does this, he is running for President in 2012), no and no.

Speaking for me only

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Judge Throws Out Ted Stevens' Conviction, Orders Misconduct Inquiry

U.S. District Court Judge Emmett Sullivan officially tossed former Senator Ted Stevens' conviction today due to prosecutorial misconduct.

A federal judge in Washington on Tuesday threw out the criminal conviction of former Alaska Sen. Ted Stevens because of prosecutorial misconduct and ordered a criminal probe into the Justice Department's handling of the longtime lawmaker's corruption trial.

"In nearly 25 years on the bench, I've never seen anything approaching the mishandling and misconduct that I've seen in this case," U.S. District Judge Emmet Sullivan said at the hearing, granting a government motion to throw out the conviction and dismiss the indictment.

[More...]

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The Geithner Plan: Turning The FDIC Into Another AIG?

This aspect of the Geithner Plan is not one I had considered -- turning the FDIC into AIG:

The F.D.I.C. is insuring the program, called the Public-Private Investment Program, by using a special provision in its charter that allows it to take extraordinary steps when an “emergency determination by secretary of the Treasury” is made to mitigate “systemic risk.” Simple enough, but that language seems to bump up against another, perhaps more important provision. That provision clearly limits its ability to borrow, guarantee or take on obligations of more than $30 billion.

MORE . . .

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"Normal Values" For "Toxic Assets"

If you support the Geithner Plan, it has to be based on the premise that the "toxic assets" held by banks are worth much more than the market is willing to pay for them now. Thus, Geithner Plan supporter Brad DeLong writes:

[G]overnments should undertake additional measures to boost financial asset prices . . . It is this point that brings us to US Treasury Secretary Timothy Geithner’s plan to take about $465 billion of government money, combine it with $35 billion of private-sector money, and use it to buy up risky financial assets. The US Treasury is asking the private sector to put $35 billion into this $500 billion fund so that the fund managers all have some “skin in the game,” and thus do not take excessive risks with the taxpayers’ money. Private-sector investors ought to be more than willing to kick in that $35 billion, for they stand to make a fortune when financial asset prices close some of the gap between their current and normal values. . . .

(Emphasis supplied.) What is the basis for DeLong's assumption that these "toxic assets" are undervalued? He does not say. And if they are not, then what? And even if DeLong's assumption is true, what is the economic purpose of this plan? DeLong posits:

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The Story of Dominique Green

The Christian Science Monitor today presents a glowing review of Thomas Cahill's new book, A Saint on Death Row." It tells the story of Dominique Green who spent 12 years on death row before his Texecution.

Sister Helen Prejean wrote of the book:

"There are many ways to tell the tragic story of America's death rows. Tom Cahill has chosen to show—through the extraordinary life of one man—that God is always working everywhere and can bring the most beautiful soul to maturity in even the most horrifying circumstances. If you read his story, you will never forget Dominique Green, nor will you ever feel the same way about our courts, our prisons, and our criminal justice system. This book is a life-changer." —Sister Helen Prejean, author of Dead Man Walking

Cahill's website features this video of an interview with Green before his execution and Cahill's views on why the death penalty is wrong for anyone. [More...]

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The Obama Administration's Complicity In Covering Up Illegal Surveillance

Glenn Greenwald explains what candidate Obama promised:

When Obama sought to placate his angry supporters after he voted for the Bush/Cheney FISA-telecom immunity bill last June (after vowing the prior December to support a filibuster of any such legislation), this is what he said . . . :

[The FISA bill] also firmly re-establishes basic judicial oversight over all domestic surveillance in the future. It does, however, grant retroactive immunity, and I will work in the Senate to remove this provision so that we can seek full accountability for past offenses.

Glenn then explains what PRESIDENT Obama has done:

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Secret Red Cross Report Released on Abuse of Detainees

A February, 2007 Red Cross report on the treatment of the 14 high-value detainees held in secret CIA prisons before being transferred to Guantanamo has been released. It's available here (pdf). The report in encrypted so I can't cut and paste excerpts, but the Washington Post has this description of its findings.

Medical officers who oversaw interrogations of terrorism suspects in CIA secret prisons committed gross violations of medical ethics and in some cases essentially participated in torture, according a confidential report by the International Committee of the Red Cross.

[More...]

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58% Of Americans Disapprove Of Obama Financial Crisis Policies

President Obama's approval ratings are at 66% according to the latest NYTimes CBS poll. However, 58% disapprove of his policies regarding the financial crisis

By contrast, a 47% plurality approve of aid to the auto industry while only 38% disapprove. I assume President Obama, Secretary Geithner and Obama economic advisor Lawrence Summers really believe their plan is the right thing to do. It is incumbent upon them to explain why they think so to the American People. I think it is a terrible plan. But it does not matter what I think. The Obama Administration owes the country some explanations for why so much more taxpayer money should go to the banks via the Geithner Plan. So far, the explanations have been quite unconvincing.

Speaking for me only

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Monday :: April 06, 2009

Soros: Banking System "Seriously Underwater"

George Soros says that not only are banks "seriously underwater" but, more importantly, that toxic assets are "still declining in value."

Worse, Soros argues that the recent change from mark-to-market rules--which gives banks significant judgment in gauging the prices of investments on their books--will "keep the zombie banks alive...and sap the energies of the economy."

A critical mass of highly credible voices--Krugman, Soros, etc--is emerging around the idea that the toxic asset shell game will only prolong the recession and quite possibly turn it into depression. Is anyone in the Obama administration listening?

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NCAA Championship

I'll be rooting for the Spartans of Michigan State tonight to derail the prohibitive favorite, North Carolina. Tipoff is around 9:20 pm.

The game is in Detroit. Michigan deserves some good news. Go Spartans!

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Monday Night TV and Open Thread

It's Dancing With the Stars and "24" for me tonight.

For alternative viewing, HBO's "In Treatment" is beginning its new season. There's back to back episodes on tonight. It's a little depressing but Gabriel Byrne as the shrink is really good.

Another new series on HBO that is worth watching is the No. One Ladies Detective Agency. The second episode aired last night and you can catch them on "On Demand."

What are you watching tonight? This is an open thread, all topics welcome.

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