Category Archives: Econ & Money: Mortgage Mess

Ileana Ros-Lehtinen Still Doesn’t Have Our Interests at Heart

Lots of people remarked on how Ileana Ros-Lehtinen and the other two local Florida Republicans who just survived tougher-than-usual re-election races switched their votes on S-CHIP and voted for it last week after being pilloried for a series of no votes back when it mattered.

I didn't join that chorus. I saw these as cheap votes for a bill that was now certain to pass; yes votes a year ago might have actually swung the tide on a bill that will particularly benefit South Florida due to the very large number of uninsured children in our community.

And only a few days later I feel vindicated: our own Ileana Ros-Lehtinen, supposedly one of those chastened Republicans, now more sensitized to our needs after a hard-fought (but ultimately not that close) election is right back to her old tricks: letting ideology trump reality.

One of our current realities is that the State of Florida is facing declining tax revenues, and is balancing its books on the backs of schoolchildren. And the schools of Miami-Dade are taking a fearsome hit in the budget the GOP-controlled legislature has just sent to the Governor.

One consequence of this disaster is a push to provide some funds at the national level. Again, that would be of disproportionate benefit to South Florida because we're in such dire straightsstraits. But — surprise — our own Ileana Ros-Lehtinen is against it.

U.S. House bill would pump millions into S. Fla. schools: Rep. Kendrick Meek, D-Miami, called the economic stimulus plan “a reflection of the state of this nation's priorities.”

“To secure our future, we must invest in our students today by reversing cutbacks in education, preventing teacher layoffs, keeping class sizes small and building modern schools outfitted with 21st-century classrooms,” he said.

Rep. Ileana Ros-Lehtinen, R-Miami, was skeptical.

“Borrowing and spending are out of control in Congress,” she said. “Every week, we are confronted with a new massive bailout plan that is packaged as an emergency must-have bill. The true bill will be passed along to our children in massive deficits.”

I didn't hear any of that stuff when she voted — repeatedly — for tax cuts for rich people, did you? But now that the economy requires massive fiscal stimulus to stave off a Depression, now it's time to ration the children again.

Posted in Econ & Money: Mortgage Mess, Florida, Politics: FL-18 | 4 Comments

President Shalala on the Recession/Depression: “Overreacting is an important strategy in a crisis”

UM's President Donna Shalala has written a remarkable letter to the UM community,

Some random thoughts before a long weekend:

Overreacting is an important strategy in a crisis. My mind-set is that we always have to do more than necessary during any kind of financial crisis.

In this one, cash is king, so we have asked everyone to eliminate all unnecessary spending—from snacks, to paper, to travel. It is the little things that add up to big dollars. We will sit on the dollars so we don’t have to borrow to pay for necessities and can preserve our reserves.

It’s really not confusing. I’m sure most of you are doing the same thing in your personal budgets.

We can do this. Our goal is to protect your job, our core programs, and continue to get better. We can do this—yes we can!

Concerning yesterday’s jet crash in New York’s Hudson River—one of our students was on that plane. He will graduate in May because he had an angel on his wing and a courageous pilot in the cockpit, and the New York/New Jersey community had an emergency plan that worked.

On the occasion of Monday’s celebration of Dr. Martin Luther King Jr.’s birthday, I would like to share my favorite speech. It is one few have ever read—the address Dr. King delivered in acceptance of the Nobel Peace Prize in 1964. Please click here to access this brilliant speech, which rings every bit as true 45 years later.

As usual, send me your ideas and have a safe and happy weekend.

Overreacting is an important strategy in a crisis. It may even be true; there's a real chance that Pres. Shalala's attitude, and the cost-cutting she's imposing on all of us, is the best policy for the University's long-term flourishing. But the collective action consequence of multiple overreactions to a recession or other financial shock is a depression. The University has basically frozen its considerable construction plans for the next 6-12 months. That will have substantial knock-on effects on the local community. We're all being asked in various ways to economize. It could be much worse of course, and may yet be; I am deeply grateful for tenure, and worry for my friends and neighbors without it.

Clearly, one of the biggest challenges for the Obama financial team will be to turn this psychology around; “fear itself” is emergent and palpable when it prompts even the usually indomitable Shalala to urge us to overreact — something only a step or two from panic.

Posted in Econ & Money: Mortgage Mess, U.Miami | 4 Comments

Alan Grayson: Scourge of Secretive Central Bankers

YouTube – $1.2 Trillion Slush Fund: Congressman Alan Grayson Grills Fed Vice Chair Donald Kohn

$1.2 trillion: We can't be told who got it, what we got as collateral, or how it's doing.

Posted in Econ & Money: Mortgage Mess | Comments Off on Alan Grayson: Scourge of Secretive Central Bankers

First Blog Post In History to Equate the Fed with Hello Kitty?

I think it's scary when this post (“Easy Credit”) from != illustrated with graphics such as this one …

… makes me think me think of a post on the 'future of fed policy' from Krugman, illustrated with this one…

masterfraud.jpg

Posted in Econ & Money: Mortgage Mess | 2 Comments

White House Fear-Mongered With Threats of Martial Law???

According to Rep. Brad Sherman, speaking on the House floor, the administration sought to whip House members into supporting the original bailiout by threatening not just economic collapse but — in some cases — suggesting things would get so bad we'd need martial law.

Here's the YouTube clip:

As far as I know, Rep. Sherman is not one the House's notorious loons. On the other hand, his testimony is hearsay. Plus, he's not saying that the Administration was threatening anything nefarious, rather the White House was just painting disaster scenarios — but that's bad enough, thank you.

There are some rays of light in this gloom. I gather that someone slipped into the redrafted bill the power to demand equity stakes from the banks feeding at the federal trough. That doesn't address the pricing issue, and it's just an option not a requirement, but it's something.

Then again, so far the markets seem to have shrugged off the value of this move. “$700bn and nothing doing” is much worse than “400 channels and nothing on”.

Posted in Econ & Money: Mortgage Mess, Politics: Tinfoil | Comments Off on White House Fear-Mongered With Threats of Martial Law???

Revealed: Most ‘Improvements’ to Bailout Bill Were a Fraud

They really did try to roll us — that's the conclusion that flows from the transcript disclosed in Mussolini-Style Corporatism in Action: Treasury Conference Call on Bailout Bill to Analysts (Updated).

I wonder how many people in Congress voting knew about this. Some, I suspect.

Posted in Econ & Money: Mortgage Mess | 4 Comments