Commentary Magazine


Topic: American International Group

Flotsam and Jetsam

Sometimes you get the sense that it won’t be the Democrats’ year: “Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank’s senior management.”

There’s no one to blame when you control both branches of government: “Twenty-nine percent (29%) of U.S. voters now say the country is heading in the right direction, according to the latest Rasmussen Reports national telephone survey. This is the lowest level of voter confidence in the nation’s current course so far this year – and ties the findings for two weeks in December.”

I suspect he’ll be the first major adviser to go: “Treasury Secretary Timothy Geithner came under fierce bipartisan criticism on Wednesday, with some House Republicans calling on him to resign. Democrats and Republicans on the House Committee on Oversight and Government Reform grilled Geithner about his role in the bailout of American International Group (AIG) and whether he was involved in decisions about the lack of public disclosure about complicated derivatives payments. Geithner faced repeated criticisms about his role in the government paying out $62 billion to AIG’s financial counterparties that represented the full value they were owed.” Remember, we had to have the tax cheat as treasury secretary because he was such a genius.

But in the list of awful appointees, Eric Holder is certainly near the top. “Top Senate Republicans want answers from the man they believe decided the FBI should read the suspected Christmas Day bomber his Miranda rights: Attorney General Eric Holder. ‘It appears that the decision not to thoroughly interrogate Abdulmutallab was made by you or other senior officials in the Department of Justice,’ Senate Minority Leader Mitch McConnell (Ky.) wrote in a letter to Holder Wednesday. ‘We remain deeply troubled that this paramount requirement of national security was ignored — or worse yet, not recognized — due to the administration’s preoccupation with reading the Christmas Day bomber his Miranda rights.’” Sens. Kit Bond of Missouri, the ranking member on the Intelligence Committee; Susan Collins of  Maine, the ranking member on Homeland Security; Jeff Sessions, of Alabama, the top Republican on the Judiciary Committee; and John McCain of Arizona, ranking member of the Armed Services Committee, also signed.

Jeffrey Goldberg rips the Beagle Blogger for praising the “bravery” of Daniel Larison’s Israel-bashing. Says Goldberg: “How brave it is to stand athwart the Jews and yell ‘Stop!’ We are a dangerous group of people. Just look at what has happened to other critics who have gone where angels fear to tread and criticized Israel. Take, for example, Stephen Walt and John Mearsheimer, the authors of ‘The Israel Lobby.’  Walt, as many of you know, is in hiding in Holland, under round-the-clock protection of the Dutch police, after the chief rabbi of Wellesley, Mass., issued a fatwa calling for his assassination. Mearsheimer, of course, lost his job at the University of Chicago and was physically assaulted by a group of Hadassah ladies in what became known as the ‘Grapefruit Spoon Attack of 2009.’” Read the whole thing.

PETA wants an animatronic Punxsutawney Phil for Groundhog’s Day. The response from the Punxsutawney club president: “I mean, come on, this is just crazy. … Phil is probably treated better than the average child in Pennsylvania. … He’s got air conditioning in the summer, his pen is heated in winter. … He has everything but a TV in there. What more do you want?” Maybe the TV.

Mayor Bloomberg wakes up and finally opposes the KSM trial in New York. Robert Gibbs is noncommittal. Is this the beginning of a walk-back potentially more dramatic than not closing Guantanamo? Let’s hope.

Seems they’re now in the business of trying to win elections: “Members of a committee of state party chairmen voted unanimously today to oppose a so-called ‘purity test’ for GOP candidates, according to a source in the closed-press meeting.”

Chris Matthews is hooted down by the Left after putting his foot in his mouth once again. (“I forgot he was black tonight for an hour.”) Well, if the MSNBC gig doesn’t work out, he can write speeches for Harry Reid.

Sometimes you get the sense that it won’t be the Democrats’ year: “Broadway Bank, the troubled Chicago lender owned by the family of Illinois Treasurer and U.S. Senate candidate Alexi Giannoulias, has entered into a consent order with banking regulators requiring it to raise tens of millions in capital, stop paying dividends to the family without regulatory approval, and hire an outside party to evaluate the bank’s senior management.”

There’s no one to blame when you control both branches of government: “Twenty-nine percent (29%) of U.S. voters now say the country is heading in the right direction, according to the latest Rasmussen Reports national telephone survey. This is the lowest level of voter confidence in the nation’s current course so far this year – and ties the findings for two weeks in December.”

I suspect he’ll be the first major adviser to go: “Treasury Secretary Timothy Geithner came under fierce bipartisan criticism on Wednesday, with some House Republicans calling on him to resign. Democrats and Republicans on the House Committee on Oversight and Government Reform grilled Geithner about his role in the bailout of American International Group (AIG) and whether he was involved in decisions about the lack of public disclosure about complicated derivatives payments. Geithner faced repeated criticisms about his role in the government paying out $62 billion to AIG’s financial counterparties that represented the full value they were owed.” Remember, we had to have the tax cheat as treasury secretary because he was such a genius.

But in the list of awful appointees, Eric Holder is certainly near the top. “Top Senate Republicans want answers from the man they believe decided the FBI should read the suspected Christmas Day bomber his Miranda rights: Attorney General Eric Holder. ‘It appears that the decision not to thoroughly interrogate Abdulmutallab was made by you or other senior officials in the Department of Justice,’ Senate Minority Leader Mitch McConnell (Ky.) wrote in a letter to Holder Wednesday. ‘We remain deeply troubled that this paramount requirement of national security was ignored — or worse yet, not recognized — due to the administration’s preoccupation with reading the Christmas Day bomber his Miranda rights.’” Sens. Kit Bond of Missouri, the ranking member on the Intelligence Committee; Susan Collins of  Maine, the ranking member on Homeland Security; Jeff Sessions, of Alabama, the top Republican on the Judiciary Committee; and John McCain of Arizona, ranking member of the Armed Services Committee, also signed.

Jeffrey Goldberg rips the Beagle Blogger for praising the “bravery” of Daniel Larison’s Israel-bashing. Says Goldberg: “How brave it is to stand athwart the Jews and yell ‘Stop!’ We are a dangerous group of people. Just look at what has happened to other critics who have gone where angels fear to tread and criticized Israel. Take, for example, Stephen Walt and John Mearsheimer, the authors of ‘The Israel Lobby.’  Walt, as many of you know, is in hiding in Holland, under round-the-clock protection of the Dutch police, after the chief rabbi of Wellesley, Mass., issued a fatwa calling for his assassination. Mearsheimer, of course, lost his job at the University of Chicago and was physically assaulted by a group of Hadassah ladies in what became known as the ‘Grapefruit Spoon Attack of 2009.’” Read the whole thing.

PETA wants an animatronic Punxsutawney Phil for Groundhog’s Day. The response from the Punxsutawney club president: “I mean, come on, this is just crazy. … Phil is probably treated better than the average child in Pennsylvania. … He’s got air conditioning in the summer, his pen is heated in winter. … He has everything but a TV in there. What more do you want?” Maybe the TV.

Mayor Bloomberg wakes up and finally opposes the KSM trial in New York. Robert Gibbs is noncommittal. Is this the beginning of a walk-back potentially more dramatic than not closing Guantanamo? Let’s hope.

Seems they’re now in the business of trying to win elections: “Members of a committee of state party chairmen voted unanimously today to oppose a so-called ‘purity test’ for GOP candidates, according to a source in the closed-press meeting.”

Chris Matthews is hooted down by the Left after putting his foot in his mouth once again. (“I forgot he was black tonight for an hour.”) Well, if the MSNBC gig doesn’t work out, he can write speeches for Harry Reid.

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The Health-Care Backlash

Here are some thoughts on where things stand in the aftermath of the certain passage of the Senate health-care bill.

1. Few Democrats understand the depth and intensity of opposition that exists toward them and their agenda, especially regarding health care. Passage of this bill will only heighten the depth and intensity of the opposition. We’re seeing a political tsunami in the making, and passage of health-care legislation would only add to its size and force.

2. This health-care bill may well be historic, but not in the way the president thinks. I’m not sure we’ve ever seen anything quite like it: passage of a mammoth piece of legislation, hugely expensive and unpopular, on a strict party-line vote taken in a rush of panic because Democrats know that the more people see of ObamaCare, the less they like it.

3. The problem isn’t simply with how substantively awful the bill is but how deeply dishonest and (legally) corrupt the whole process has been. There’s already a powerful populist, anti-Washington sentiment out there, perhaps as strong as anything we’ve seen. This will add kerosene to that raging fire.

4. Democrats have sold this bill as a miracle-worker; when people see first-hand how pernicious health-care legislation will be, abstract concerns will become concrete. That will magnify the unhappiness of the polity.

5. The collateral damage to Obama from this bill is enormous. More than any candidate in our lifetime, Obama won based on the aesthetics of politics. It wasn’t because of his record; he barely had one. And it wasn’t because of his command of policy; few people knew what his top three policy priorities were. It was based instead on the sense that he was something novel, the embodiment of a “new politics” – mature, high-minded and gracious, intellectually serious. That was the core of his speeches and his candidacy. In less than a year, that core has been devoured, most of all by this health-care process.

Mr. Obama has shown himself to be a deeply partisan and polarizing figure. (“I have never been asked to engage in a single serious negotiation on any issue, nor has any other Republican,” Senator McCain reported over the weekend.) The lack of transparency in this process has been unprecedented and bordering on criminal. The president has been deeply misleading in selling this plan. Lobbyists, a bane of Obama during the campaign, are having a field day.

President Obama may succeed in passing a terribly unpopular piece of legislation – but in the process, he has shattered his carefully cultivated image. It now consists of a thousand shards.

6. This health-care bill shouldn’t be seen in isolation. It’s part of a train of events that include the stimulus package, the omnibus spending bill (complete with some 8,500 earmarks), and a record-sized budget. In addition, as Jim Manzi points out in the new issue of National Affairs:

[Under Obama] the federal government has also intervened aggressively in both the financial and industrial sectors of the economy in order to produce specific desired outcomes for particular corporations. It has nationalized America’s largest auto company (General Motors) and intervened in the bankruptcy proceedings of the third-largest auto company (Chrysler), privileging labor unions at the expense of bondholders. It has, in effect, nationalized what was America’s largest insurance company (American International Group) and largest bank (Citigroup), and appears to have exerted extra-legal financial pressure on what was the second-largest bank (Bank of America) to get it to purchase the ­country’s largest securities company (Merrill Lynch). The implicit government guarantees provided to home-loan giants Fannie Mae and Freddie Mac have been called in, and the federal government is now the largest de facto lender in the residential real-estate market. The government has selected the CEOs and is setting compensation at major automotive and financial companies across the country. On top of these interventions in finance and commerce, the administration and congressional Democrats are also pursuing both a new climate and energy strategy and large-scale health-care reform. Their agenda would place the government at the center of these two huge sectors of the economy…

Together, these actions tell quite a tale. Mr. Obama has revived the worst impressions of the Democratic party – profligate and undisciplined, arrogant, lovers of big government, increasers of taxes. The issues and narrative for American politics in the foreseeable future has been set — limited government versus exploding government, capitalism versus European style socialism, responsible and measured policies versus reckless and radical ones.

Barack Obama is in the process of inflicting enormous damage to his presidency and his party. And there is more, much more to come.

Here are some thoughts on where things stand in the aftermath of the certain passage of the Senate health-care bill.

1. Few Democrats understand the depth and intensity of opposition that exists toward them and their agenda, especially regarding health care. Passage of this bill will only heighten the depth and intensity of the opposition. We’re seeing a political tsunami in the making, and passage of health-care legislation would only add to its size and force.

2. This health-care bill may well be historic, but not in the way the president thinks. I’m not sure we’ve ever seen anything quite like it: passage of a mammoth piece of legislation, hugely expensive and unpopular, on a strict party-line vote taken in a rush of panic because Democrats know that the more people see of ObamaCare, the less they like it.

3. The problem isn’t simply with how substantively awful the bill is but how deeply dishonest and (legally) corrupt the whole process has been. There’s already a powerful populist, anti-Washington sentiment out there, perhaps as strong as anything we’ve seen. This will add kerosene to that raging fire.

4. Democrats have sold this bill as a miracle-worker; when people see first-hand how pernicious health-care legislation will be, abstract concerns will become concrete. That will magnify the unhappiness of the polity.

5. The collateral damage to Obama from this bill is enormous. More than any candidate in our lifetime, Obama won based on the aesthetics of politics. It wasn’t because of his record; he barely had one. And it wasn’t because of his command of policy; few people knew what his top three policy priorities were. It was based instead on the sense that he was something novel, the embodiment of a “new politics” – mature, high-minded and gracious, intellectually serious. That was the core of his speeches and his candidacy. In less than a year, that core has been devoured, most of all by this health-care process.

Mr. Obama has shown himself to be a deeply partisan and polarizing figure. (“I have never been asked to engage in a single serious negotiation on any issue, nor has any other Republican,” Senator McCain reported over the weekend.) The lack of transparency in this process has been unprecedented and bordering on criminal. The president has been deeply misleading in selling this plan. Lobbyists, a bane of Obama during the campaign, are having a field day.

President Obama may succeed in passing a terribly unpopular piece of legislation – but in the process, he has shattered his carefully cultivated image. It now consists of a thousand shards.

6. This health-care bill shouldn’t be seen in isolation. It’s part of a train of events that include the stimulus package, the omnibus spending bill (complete with some 8,500 earmarks), and a record-sized budget. In addition, as Jim Manzi points out in the new issue of National Affairs:

[Under Obama] the federal government has also intervened aggressively in both the financial and industrial sectors of the economy in order to produce specific desired outcomes for particular corporations. It has nationalized America’s largest auto company (General Motors) and intervened in the bankruptcy proceedings of the third-largest auto company (Chrysler), privileging labor unions at the expense of bondholders. It has, in effect, nationalized what was America’s largest insurance company (American International Group) and largest bank (Citigroup), and appears to have exerted extra-legal financial pressure on what was the second-largest bank (Bank of America) to get it to purchase the ­country’s largest securities company (Merrill Lynch). The implicit government guarantees provided to home-loan giants Fannie Mae and Freddie Mac have been called in, and the federal government is now the largest de facto lender in the residential real-estate market. The government has selected the CEOs and is setting compensation at major automotive and financial companies across the country. On top of these interventions in finance and commerce, the administration and congressional Democrats are also pursuing both a new climate and energy strategy and large-scale health-care reform. Their agenda would place the government at the center of these two huge sectors of the economy…

Together, these actions tell quite a tale. Mr. Obama has revived the worst impressions of the Democratic party – profligate and undisciplined, arrogant, lovers of big government, increasers of taxes. The issues and narrative for American politics in the foreseeable future has been set — limited government versus exploding government, capitalism versus European style socialism, responsible and measured policies versus reckless and radical ones.

Barack Obama is in the process of inflicting enormous damage to his presidency and his party. And there is more, much more to come.

Read Less