After last week's drop to 383k new unemployment claims, everyone was declaring the beginning of the end of the jobs crisis. As I noted in this post, this repeats the experience of last year, when everyone was ready to declare the beginiing of the end of the jobs crisis. And like the last time, the calls were delusional. Aggregate demand remains extremely weak. Unless and until aggregate demand shows consistent growth, the jobs crisis will continue. Today's weekly jobless claims report supports this view:

More people applied for unemployment benefits last week, one week after claims had fallen to the lowest level in nearly three years. The Labor Department says 410,000 people sought unemployment assistance last week, a jump of 25,000 from the previous week. The rise was much larger than economists had expected.

It's not Recovery 2011, it is the continuation of our Lost Decade. And our leaders do not seem to care, as Austerity 2011 goes into full swing.

Speaking for me only

Survivor Redemption Island begins tonight, and Russell is back. American Idol is having Hollywood Week.

This is an open thread, all topics welcome.

Abdulwali Muse, the young Somali pirate, was sentenced in federal court today to 34 years in prison.

Muse pleaded guilty last May. As part of the agreement, prosecutors said they would seek a sentence of at least 27 years but no more than 33 years and 9 months. Today they asked for the maximum.

As Florida did last year, This happens:

Gov. Rick Scott announced Wednesday that he's rejecting federal funding for high-speed rail. "I'm not comfortable this is a project we should be doing," Scott said at a hastily called news conference in Tallahassee after a phone conversation with U.S. Transportation Secretary Ray LaHood. [. . .] Scott said he was not sure high-speed rail would bring taxpayers a return on their investment and he felt money would be better spent on state highway and seaport improvements.

The problem for Scott is the money is not his to decide how to use. It is the federal government's money and they will use it elsewhere. Florida Republicans and Democrats are not happy:

Sounds interesting and outside the party apparatus.

NYTimes:

[Bernie Madoff] asserted that unidentified banks and hedge funds were somehow “complicit” in his elaborate fraud, an about-face from earlier claims that he was the only person involved.

[. . .] He spoke with great intensity and fluency about his dealings with various banks and hedge funds, pointing to their “willful blindness” and their failure to examine discrepancies between his regulatory filings and other information available to them. “They had to know,” Mr. Madoff said. “But the attitude was sort of, ‘If you’re doing something wrong, we don’t want to know.’”

"They had to know" seems the operative phrase of the past decade. "They had to know" that the Bush tax cuts would blow up the budget. "They had to know" the Iraq Debacle was a fraud. "They had to know" that Wall Street was a crooked casino. "They had to know" that banks were abusing HAMP. And so on.

Speaking for me only

Open Thread.

Yesterday, Gibbons v. Ogden, today, a dramatization of McCulloch v. Maryland:

[T]he Constitution of the United States has not left the right of Congress to employ the necessary means for the execution of the powers conferred on the Government to general reasoning. To its enumeration of powers is added that of making 'laws which shall be necessary and proper for carrying into execution the foregoing powers, and all other powers vested by this Constitution in the Government of the United States or in any department thereof.' [. . .]

[T]he Constitution must allow to the national legislature that discretion with respect to the means by which the powers it confers are to be carried into execution which will enable that body to perform the high duties assigned to it in the manner most beneficial to the people. Let the end be legitimate, let it be within the scope of the Constitution, and all means which are appropriate, which are plainly adapted to that end, which are not prohibited, but consistent with the letter and spirit of the Constitution, are Constitutional.

The NYTimes Caucus blog asks "Why would the left be so accepting of the president’s budget?" Were they?I didn't pay much attention. I was critical, but in a fairly clinical way.

Meanwhile, CNN says "Left is livid over budget safety net cuts." I doubt anyone is livid. The reason is no one really expects that much from this Administration anymore.

Speaking for me only

Open Thread.

Making the point that bloggers are NOT in fact the base of the Democratic Party (duh), Matt Yglesias writes:

I often thought during the health care debate that poor people would be saying “hell no I’m not going to give up this Medicaid expansion so you can hold out indefinitely for a public option.”

Funny, I often thought during the health care debate that less well off people should be saying "hell no I'm not going to give up a public option for those sh*tty exchanges Beltway Bloggers love." Different strokes I guess.

Speaking for me only

With catcalls from the people he was overseeing. Via Glenn Greenwald, the Washington Post reports that Tim Geithner and his minions at Treasury are happy to see TARP Inspector General Neil Barofsky go. Barofsky must have done a good job then:

In his sometimes scathing reports to Congress, Barofsky showed little reluctance in criticizing administration officials on everything from how their lack of transparency was fueling "anger, cynicism and distrust" to how their foreclosure prevention efforts had fallen well below expectations. [. . .]

Such criticisms did not sit well with Treasury officials [. . .] "We're fine with critics," said one Treasury official, who spoke on condition of anonymity in order to speak more candidly. "[But] he's been consistently wrong about a lot of big things." [. . .] in certain corners of the Treasury, where news of Barofsky's departure brought a touch of delight Monday. "It was," said one official, "like a nice valentine to us."

Here's my question - do Tim Geithner and his minions, including those at The New Republic, think HAMP was a success?

Speaking for me only