[F]unny side of the [Wall] Street: Obamanomics

In the spirit of Jon Stewart, “Let’s just cut out the middle man.” If President Obama is serious about “changing how we do business,” then he needs to roll out something better than his new version of Reaganomics.


Imagine  you’re the on-duty emergency room (ER) nurse in a small country hospital.  Your resources are severely limited by high unemployment and a health insurance crisis.

A healthy snowboarder hobbles in with a broken leg and dislocated shoulder.

You start a prophylactic IV drip of normal saline, pain killers  and antibiotics to protect the snowboarder from dehydration, pain and infection.

In a corner of the emergency room is a bloated near-corpse in systemic organ failure. His liver’s shot.  His heart’s all but stopped.  The smell of his rot and disease are spreading out of the ER, down the corridors and into the rooms of recuperating patients.

Emergency room protocol requires you to infuse the snowboarder’s  IV solution through the bloated near-corpse middle man first, rather than  into the snowboarder’s arm directly.

Proponents of this bassackward policy say that if the gas in the bloated guy explodes, it’ll jeopardize everyone in the hospital so we have to treat him with the best of the drugs and hope enough benefit reaches the snowboarder to prevent her relatively minor injuries from becoming a systemic threat.  If you’re the cynical type, you might think  the nearly-dead guy’s membership on the hospital’s Board of Directors is significant, too.

Whatever the reason for  the policy, the outcome is assured:  the bloated near-corpse will drain  your few precious resources on its way to the morgue and the healthy patient will die of preventable consequences.

In the spirit of Jon Stewart,  “Let’s just cut out the middle man.”  Break with protocol and centuries of obsolete thinking. Infuse the snowboarder directly. She’s going into shock.  Microbes are chewing on her broken, exposed bone. It’s a matter of basic triage:  apply your resources where they will do the most good as you asses each situation  uniquely, dispassionately and quickly.

The snowboarder (like most of our  neighbors) will heal quickly and be ready to continue her education,  develop new products, create new markets  and in general, become the new economic engine.  She’ll be rebuilding our nation while the rotting AIG-Goldman Sachs-Citi-Bank of America-corpse that’s poisoning us all is buried quietly in the background.

Stimulate acutely-ill  borrowers with a direct infusion of debt-cancelling cash that can be paid by them  to their ORIGINATING lenders.   The funds will or won’t trickle UP to the bloated entities who bought and bundled the  stinky credit card and mortgage loans.  Those who are too-big-to-fail will collapse if the funds can’t  find their way through the maze of intermediaries.  But, by  excising the corpse and caring directly for our fundamentally healthy neighbors, we can mitigate the effects of this new shift in focus and purpose.

The “mortgage-crisis” isn’t the root of our problems.  And our continued reliance on a rotting corpse to rescue the future may not be the cause of our problems, but it’s certainly proximate.  If President Obama is serious about “changing how we do business,”  then he needs to roll out something better than his new version of  Reaganomics.

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NEXT:  Tell-tale quotes from this week’s House Financial Services Subcommittee Hearing.

Obama Picks: Holder & Geithner


Attorney General Nominee  Eric Holder, Separation of Powers and  The Citizen’s Advocate. The United States Constitution establishes three independent branches of  government which balance and check each other’s power.  The Executive Branch (The President and his appointees) is charged with executing  and enforcing laws enacted  by Congress or   adjudicated  by  the  U.S. Supreme Court.

The U.S. Attorney General (AG) is  “The People’s Attorney,”   a watchdog  charged with ensuring that  the Executive Branch functions  consistent with Federal law  and within the framework of  The U.S. Constitution.  In the past, when the  AG   abdicated this obligation, Writs of Mandamus or the  Administrative Procedures Act (APA) have been used to force the AG to  (1) investigate the Executive’s actions or inactions or, alternatively,  (2)  to appoint an independent investigator.  In  recent years,  as the “Imperial/Unitarian Presidency” grew, these tools  of citizen redress have  been more frequently denied by  courts and Administrative  Law Judges.  There’s an underlying assumption that it’s better to countenance questionable Executive actions than it is to risk overstepping  the Separation of Powers.

As demonstrated by  Bush’s   Presidency,   an independent AG and Justice Department are   essential reins on  a run-away Executive.  The AG is often The People’s last recourse for achieving  administrative and judicial intervention.  In that light,  citizens should welcome Senator  Arlen Specter’s questioning (R-Pa.)  of  Attorney General-nominee Eric Holder about his  involvement in the Marc Rich pardon scandal.  Was Holder so dependent on President Clinton’s good graces that he abdicated  due diligence and independence for personal ambition?  In our current situation (an extraordinarily popular President-Elect and  a Democratic-controlled Congress)  it is especially important that the People’s watchdogs are  motivated by law and ethics not by personal aggrandizement.  According to Holder,  “The duty of the AG is to defend statutes…  unless there are compelling reasons [not to].”

In today’s  hearing, Senator  Orrin Hatch asked Holder (who has expressed opposition to  rendition, torture and warrantless wiretapping)  if  Holder would pursue  prosecutions of officials who approved extraordinary rendition and warrantless wiretapping of U.S. citizens.  In reply,  Holder stated,  “No one’s above the law  We will follow the evidence, the facts, the law and  let that take us where it  should.   We don’t want to criminalize policy differences…between the outgoing administration and the incoming Obama administration.  I want to know more about what lead to these decisions.”

In a loose citation of Youngstown Sheet & Tube Co. v. Sawyer, 343 U.S. 579 (1952) Holder further stated, “[The President’s power is] weakest … where Congress has indicated something contrary to what  the President wants to do.”  In other words,  where Congress has expressed its will in legislation,  the President is obliged to act within the parameters established.  (Of course, Congress cannot usurp powers granted the Executive by The Constitution.)

It seems clear Holder understands his Constitutional obligations to uphold the law and to prosecute its corruption.  We should listen carefully to  Senator Specter’s questions and to  designee-Holder’s answers.  They may be the only additional clues we get to the stamina of  designee-Holder’s  ethics and independence.

Timothy Geithner, Citigroup & the global economic crisis. See  “Note 4”  below.  The Alternet-Politico article provides a good overview of Geithner’s involvement in the creation of our current global economic crisis and should be read in its entirety.

Several experts on finance,  mortgage-backed securities, hedge funds, bankruptcy, SEC regulations and lack of enforcement, arcane investment tools and the  TARP  have testified before Congress concerning our global economic crisis.  (See CSPAN archives.) Their grasp of the  factors affecting  an economic recovery was comprehensive.

As  the former president of the New York Federal Reserve Bank, Timothy Geithner reduced  regulations and consequent oversight of Citigroup, et al.

Is he   the best person to develop the architecture of  our economic recovery?  Has he demonstrated a capacity for  predicting the effect of government interventions/pullbacks on financial  markets?   What  unique expertise does he possess beyond having overseen the building and crashing of an economic  house of cards?  What was the nature of his relationship with Citigroup and Robert Rubin? (Rubin is a past-Treasury Secretary, Geithner’s former boss and  was a  “special consultant” to Citigroup during its implosion.  He is also one of  President-elect Obama’s economic advisors.)

NOTES  &  CITATIONS

1.    Administrative Procedures Act:    http://usgovinfo.about.com/library/bills/blapa.htm

2.    U.S. Supreme Court and Writs of Mandamus which I’m including because it’s a tool too few of us know about:   (Per Justice Ginsberg in 2004,  No. 03-475″…an applicant seeking a §1361 mandamus writ must show that “the [federal] defendant owes him a clear, nondiscretionary duty.” Heckler v. Ringer, 466 U.S. 602, 616 (1984) (emphasis added). No §1361 writ may issue, in other words, when federal law grants discretion to the federal officer, rather than imposing a duty on him. When federal law imposes an obligation, however, suit under §1361 is not precluded simply because facts must be developed to ascertain whether a federal command has been dishonored. Congress enacted §1361 to “mak[e] it more convenient for aggrieved persons to file actions in the nature of mandamus,” Stafford v. Briggs, 444 U.S. 527, 535 (1980), not to address the rare instance in which a federal defendant, upon whom the law unequivocally places an obligation, concedes his failure to measure up to that obligation. http://www.law.cornell.edu/supct/search/display.html?terms=mandamus%20attorney%20general&url=/supct/html/03-475.ZD.html

3.   Bloomberg has a good overview of  the concerns raised by Holder’s nomination:  http://www.bloomberg.com/apps/news?pid=20601103&sid=afLrs7qPiu2o&refer=us

4.   Alternet & Politico have this overview of Citigroup, Timothy Geithner, Robert Rubin  & the global economic  meltdown:  http://www.alternet.org/workplace/119871/how_citigroup_unraveled_under_geithner%27s_watch/?page=1