NDN Blog

Leader: Cash Windfall

- Last night, the Senate approved a $410 billion spending bill that will keep the federal government running through this year. Eight Republicans joined 54 Democrats to approve the bill, still laden with earmarks, and it may be signed by President Obama as early as today. 

- The government may get even more money coming its way, as some banks have indicated that they want to return the bailout money they received, as the strings attached have become too onerous. 

- Everyone else got richer, too. "Hope staged a rally on Wall Street yesterday," quips the Washington Post, referring to the 5.8 percent rise in the Dow that cheered us all. Economists believe the rise was due to Citibank's hint that it has turned a profit this quarter. Politicos suspect it may be related to the great tie Obama wore in his speech on education yesterday.

Politics

- In case you didn't know, Barack Obama is a New Democrat.  He said so himself.  We salute him!

- Sen. Bernie Sanders is seeking to impose usury laws on credit card companies that would criminalize excessive interest rates.  Curiously, American credit card companies are exempt from the usury laws already on the books.

- Ambassador Chas Freeman, slated to become the chairman of the National Intelligence Council, has withdrawn his name from consideration.  His statement is here; he attributes "libelous distortions" as the cause of his withdrawal.  

- Politico reports that the GOP is going with a lot of retread candidates in 2010. Is falling back on their old guns the best strategy as their party struggles to define a new identity?  Hard to say, really.

Economy

- Bernie Madoff is expected to plead guilty to as many as 11 felony charges tomorrow, which will put him in jail for up to 150 years, unless he dies in the meanwhile, in which case they will remove him from jail.

International

- The US and the UK are working together to put together a package of several hundred billion dollars in international trade financing. The plan will be unveiled at the G-20 summit at the beginning of April.

- Writing on said G-20 summit, Martin Wolf of the FT argues that the states at the summit must focus on sustaining domestic demand, or else face a continued downward spiral.

New From NDN

- We had a great event here yesterday with Joe Rospars, head of Blue State Digital and new media director of the Obama Presidential Campaign.  Rospars chatted with Simon about his work on the campaign, and about the ways new media is changing... everything.  We'll have video of the event up soon. In the meanwhile, Nick Baumann covered the event in a short piece for Mother Jones.

- Jake Berliner had a couple blog posts on the economy yesterday-- one in which he agrees with David Brooks in hitting the GOP for failing to respond adequately to the Great Recession, and another panning new legislation that effectively bans foreigners from Wall Street.

One More Thing

- As this blog has once before, I will substitute today's video with a poem (we're pretty highbrow here). It's "Villanelle for Uncertain Times," by Jonathan Kern, editor of Planet Money.

Leader: Trade & Labor

- The Administration is moving toward a harsher line with our trading partners, and emphasizing domestic issues in our economic and trade policy-- including the protection of jobs susceptible to outsourcing.  

- Ron Kirk explained these positions as he breezed through his Senate confirmation hearing yesterday, on his way to becoming US Trade Representative. He said he would put "fresh emphasis on workers and the environment," and "would not do trade deals for the sake of doing deals."

- Even as the Administration seems to be positioning itself in line with labor in its trade policy, Senate Democrats are wavering in their support of the Employee Free Choice Act, worrying that the legislation would drive a wedge between business and labor, costing jobs when the economy needs them most.

Politics

- President Obama will lay out an education plan today that doesn't actually involve any new legislation.  He will call on people to educate themselves (whatever that means) and to educate their children.

- The Supreme Court ruled yesterday that minority voters don't qualify for an important protection in the Voting Rights Act-- a ruling that could have a significant impact on redistricting in 2010.  The Hill describes the situation better than I can.

- Rush Limbaugh may be a pretty good bogeyman, but the Democrats' real rival is Eric Cantor, whom Politico profiles today.

Economy

- Even as the government is weighing next steps to rescue Citibank, CEO Vikram Pandit hinted yesterday that the bank may be on its way to a profitable quarter. Curiouser and curiouser...

- President Obama took a risk letting Congress fill in the details of his budget, and he's already paying for it as Democratic leaders in the House and Senate have targeted his limit on tax deductions for the wealthiest 1.2 percent of taxpayers.  

- In the Financial Times, President Lula of Brazil brings the focus of economic discussions back to what fundamentally matters: the plight of everyday people, whether in Sao Paulo or San Antonio.

International

- After five Chinese warships harassed an unarmed U.S. Navy vessel yesterday, the Chinese government accused the Navy of violating international and Chinese law.  The incident is not likely to impact the bilateral relationship much, and can best be seen as an instance of the Chinese military indicating to the US that, as its naval power and ambitions grow, it wishes to be respected as a power in the region.

- Fifty years ago today, the Dalai Lama fled Tibet to Dharamsala, and he marked the occasion with a speech harshly critical of the Chinese government. For its part, the Chinese government has marked the occasion by putting Tibet on lockdown, and preparing for unrest elsewhere.

New from NDN

- Melissa blogged yesterday about the renewed importance of national service under the Obama Administration.  

- Simon responded to a column by Robert Kagan about the objectives of U.S. national security policy.

- Michael Moynihan has a new essay addressing the challenge of finding sustainable sources of funding for infrastructure projects.

One More Thing

- Last, when evil needs PR, evil has Burson Marsteller on speed dial. Rachel Maddow kills it:

Leader: We're All in This

- This global economic crisis is a global one, and recent news has reinforced this fact.  The World Bank came out with a report yesterday warning that this is the first global recession since World War II, projecting that trade would drop in 2009, for the first time in more than half a century. The World Bank warned further that the needs of poorer nations would quickly outstrip the capacity of multilateral lenders. A drastic reduction in aid could lead to instability all over the world.

- Many American investors have brought their money home to the U.S., stashing it in the safety of U.S. government bonds. China, too, has continued to buy lots of American debt.  These trends have pushed up the value of the dollar, which has been a boon for the government here, but a nightmare overseas, where money is quickly drying up.

- The Obama Administration will urge other nations to increase government spending, to stimulate economies overseas.  This approach is at odds with the European notion that fixing the financial industry should be the first step toward recovery.

Politics

- Rep. John Larson, a good friend of ours, introduced a bill last week to put a tax on carbon, and to offset the cost with a reduction in payroll taxes. This initiative is one we have pushed (pdf) for through our Globalization Initiative and Green Project for some time, and we're glad to see it under debate in Congress.

- Governor Martin O'Malley of Maryland writes on the WaPo op-ed page that the federal government should take a lesson from the states, and recognize the importance of helping homeowners.  

- Jon Alter writes on the Obamas' commitment to expanding public service and to building "an army of changemakers." In line with NDN Fellows Morley Winograd and Mike Hais' argument that we are entering a new, civic era, the Obamas may just meet with success.

Economy

- Paul Krugman worries that the Administration's economic policy is falling behind the curve, and that President Obama and Secretary Geithner are out of touch.   Mike Tomasky, too, is down on Geithner for failing to provide a clear sense of direction. Dan Drezner is giving the Administration another month before allowing his "freaking out flag to fly."

- I, however, am a little closer to freaking out after reading Martin Wolf's long column in yesterday's Financial Times.  He writes that the Greenspan ideas of liberalization and untamed markets have proven to be failed ideas.  He concludes: "The era of financial liberalisation has ended. Yet, unlike in the 1930s, no credible alternative to the market economy exists and the habits of international co-operation are deep"

International

- The Obama Administration announced yesterday that it would withdraw 12,000 troops from Iraq in the next six months, in the first stage of the planned drawdown. This came on the same day that a terrorist attack directed against Iraqi police recruits in Baghdad killed 33 and injured another 61.

- The Pakistani military claims to have scored a victory in the Bajaur Agency, pushing Taliban militants out of the northern region, over the border into Afghanistan. It's more likely that the Taliban fighters have just retreated into the mountains, to wait until the heat is off.

- In the WaPo, Robert Kagan writes that, for all the rosy rhetoric, Obama has maintained more or less the same course in foreign policy.  "The basic goals and premises of U.S. policy have not shifted," he writes. The Hill, on the other hand, sees a "sharp turn" on foreign policy. I'm more inclined to agree with them-- the goals and premises may remain the same, but changing how you get there can make all the difference.

One More Thing

- John McCain's run for the presidency killed his daughter's love life-- and he thinks it's funny!  How callous...

- I now kiss my delusions goodbye: President Obama doesn't read blogs... Mr. Biden, are you reading this?!

- Last, Michael Steele, channeled by Keenan Thompson on SNL, let's us know it's all good with him and Rush:

Leader: Taking on Water

- On a wave of bad economic news, the markets dropped four percent yesterday, and may be looking at a few more days of dreariness as more bad news arrives.  The NY Times looks at the decline of the blue chips-- AIG is trading at about 35 cents, and Citigroup dipped below a dollar yesterday.  A share of GM costs less than a gallon of gas, and you're better off buying a pair of GE light bulbs than a share of GE  stock. The Dow creeps ever closer to 6,000.

- In late-breaking news, the economy lost 651,000 jobs in February, pushing the unemployment rate to 8.1%-- the highest in 25 years. Economists expect the losses will continue into 2010. 

- The government may invite hedge funds and private equity funds to invest in the bailout of the financial system-- not a bad deal considering there's potential for major profits, but no chance of loss, as the investment will be backstopped by the government.  Why do hedge funds never  seem to lose?

Politics

- At a White House summit yesterday, President Obama reiterated his commitment to overhaul the country's healthcare system, with a focus on reducing costs. He also suggested that he would be willing to compromise on the plan he initially offered in his budget blueprint.

- Newsweek's Jon Alter writes about how Rush Limbaugh is shredding the Republican party.

- The 2010 census is just 13 months away, and Sen. Tom Carper says we're not at all ready.

- Dr. Sanjay Gupta will not, after all, be our Surgeon General.  Too bad, I say-- I thought it was an inspired choice.

Economy

- USA Today finds that more than half of all foreclosures of the past year have taken place in just 35 counties around the country.  The counties are concentrated just where you might suspect: California, Florida, the Southwest, and the industrial Midwest. Needless to say, USA Today has colorful graphics to back up their point.

- Top execs at GM are more open to the idea of a government-financed bankruptcy procedure than they were before. 

International

- In one of the world's more overlooked conflicts the government of Sri Lanka is in the midst of a major offensive against a long-standing rebellion by ethnic Tamils. The military claims to have forced the Tamil separatists into a ten square-mile pocket, but has created a humanitarian nightmare in the process-- as many as 200,000 civilians are trapped as well, facing constant shelling as food, water, and medical supplies run out. The CS Monitor looks at how the Sri Lankan government was "emboldened" by the U.S. war on terror.

- Early signs indicate that the truce between the Pakistani military and the Taliban fighters in the Swat valley of Pakistan has already allowed the Taliban to expand its harsh rule in the region.

One More Thing

- He may be Sir Ted Kennedy, but does that mean he can't be Sen. Ted Kennedy? Know your Constitution!

- Last, Nancy Pelosi very nearly falls all over herself introducing American Hero Brad Pitt, who gives deeply inspiring remarks:

Leader: Helping Homeowners

- The White House unveiled yesterday the details of its program to keep people in their homes. $75 billion will be made available to offset the costs to banks and lenders willing to let homeowners renegotiate their mortgages. People facing foreclosure who have mortgages of up to nearly $730,000 will be eligible for help.  The plan may help as many as four million families stay in their homes.

- An additional five million homeowners are likely to be helped by the second part of the government program, which will help reduce payments for people with loans through Fannie Mae and Freddie Mac.

- John Geanakoplos and Susan Koniak, on the op-ed page of the NY Times, are not pleased with the plan. They write that no plan to keep people in their homes will be helpful unless it reduces the capital owed by "underwater" homeowners.

Politics

- In old news, the Republican Party is still in trouble. In market terms, writes Politico, the party is still looking for bottom.  Mike Tomasky has a great rundown of the whole Limbaugh fiasco, even looking back into Rush's past. At least some Republicans have realize they will be irrelevant as long as they fail to get immigration policy right and win back some Latino support.  

- The LA Times covers fears that President Obama has too many czars, and that he intends to bypass congress in the creation of policy.

- Bucking the line taken by the Bush Administration, the Supreme Court yesterday ruled that, even if a drug is approved by the FDA, the manufacturers of the drug can still be sued over alleged defects.

- Facebook is changing itself to be more like Twitter. As Dan wrote last week, Twitter is more than just a fad, it's here to stay.

International

- The ICC issued an arrest warrant for Sudanese President Omar al-Bashir for atrocities committed in Darfur.  Bashir himself has, of course, defied the arrest order, and an angry mob in Khartoum agreed with him. 

One More Thing

- Sasha and Malia Obama got a new swing set, complete with tire swing.  Color me jealous.

- Jon Stewart follows Jake Berliner and gets on the beating-up-Rick-Santelli bandwagon.  Not a bad bandwagon to be on: / 1

Leader: President of Cool

- Barack Obama may have already been the President of Cool, but he just keeps getting cooler in the eyes of the American people. A new WSJ/NBC poll puts Obama's popularity higher than ever-- almost 70% of Americans have a favorable opinion of the President, and nearly 50% have a "very favorable" opinion. This is all despite 70% of Americans are "very dissatisfied" with the economy.

- Meanwhile, the Republican Party is rending itself in two, with an ongoing spat between the GOP establishment and Rush Limbaugh, the "bloated face and drug-addled  voice of the Republican Party." (In the words of Paul Begala)  And remember the time Rush was pulled off ESPN for being a racist? What a guy. Not surprisingly, the poll finds favorability of Republicans at an all-time low.

- Yesterday on MSNBC, Simon spoke of the unpopularity of the GOP, and the failure of the Party to engage with the real problems faced by our country. Simon wants a constructive Republican Party-- not one rooting for the failure of the Obama administration. 

Politics

- Mike Quigley, Cook County Commissioner, has claimed the Democratic nomination for the special election to fill Rahm Emanuel's congressional seat, making him the favorite for the election a month from now.

- President Obama has nominated John Berry, former director of the National Zoo, to direct the office of personnel management-- effectively overseeing the entire federal workforce.  Is he just the right man for the job, or is this also brilliant tongue-in-cheek humor from our President?

- Gebe Martinez, writing in Politico, wonders if President Obama has forgotten about immigration. The issue has certainly been getting less attention after the release of Obama's budget blueprint that doesn't make much mention of it.

Economy

- Fed Chairman Ben Bernanke gave a tacit endorsement to President Obama's use of aggressive government action to combat the recession. Bernanke in the NY Times: "Our economy and financial markets face extraordinary challenges, and a failure by policy makers to address these challenges in a timely way would likely be more costly in the end."

- Bernanke also laid pretty hard into AIG yesterday.  Here he is: "I think if there's a single episode in this entire 18 months that has made me more angry, I can't think of one, than AIG."

International

- Marc Lacey, covering Cuba, writes that Raul Castro, in his first year as president, has not been the reformer he said he would be. This week, however, Castro may be taking that criticism to heart, as he seems to be shaking things up a bit in the bureaucracy.

- This week's attack on the Sri Lankan cricket team in Pakistan is under investigation, and suspects are in custody.  Still, the negative impact this will have on regional diplomacy and the morale of Pakistani cricket fans is significant.

One More Thing

- Were you thinking about buying Crooked Rod's tell-all book? Better not.  Glenn Beck will hunt you down and kill you like a dog if you buy it.  Spencer Ackerman has my favorite counter-challenge.

- He is Senator Ted Kennedy no longer. Now he's Senator Sir Ted Kennedy.

- Last, the DCCC is making it easier than ever for Republicans to apologize to Rush Limbaugh:

Simon will be on MSNBC today with Norah O'Donnell.  Tune in at 3:35, and see Simon as the Democratic strategist opposite Phil Musser, who will represent the conservative perspective.

If you just can't wait, check out below a video from Simon's appearance on Neil Cavuto's show on Fox News.

Leader: Dow Jones' Terrible, Horrible, No Good, Very Bad Day

- Remember 1997?  Yeah, me neither.  Yesterday, the Dow hit its lowest point-- below 7,000-- since April of that forgotten year.  There was no single reason for the decline, but AIG's loss of $61 billion contributed, as did reports on the foul state of the construction industry. Business Week notes that the market is in "uncharted territory," and nobody quite knows what's next.

- Senators John McCain and Byron Dorgan want to create a "Senate Select Committee on the Financial Crisis," to investigate the causes behind the collapse of our economy, and to recommend changes to prevent this from happening again.

Politics

- President Obama is serious about healthcare reform, and is similarly serious about avoiding the missteps made by the Clinton team 16 years ago.

- Obama's hefty budget will likely require the government to hire additional employees numbering in the tens of thousands, according to the WaPo.

- A batch of legal opinions issued during the Bush presidency were released yesterday, and, taken together, they offer the clearest picture yet of the broad executive authority assumed by the Bush White House as it prosecuted the war on terror both overseas and on American soil.  

- In related news of Bush-era government criminality, the CIA has fessed up to destroying 92 videos showing harsh interrogations, and the interrogators will likely be off the legal hook.  

- The wind chill is putting DC temperatures in the single digits right now, but apparently that's a good thing: A new report says that the U.S. has among the most ample "wind resources" in the world.

Economy

- Consensus is emerging that, though the government takeover of Fannie Mae and Freddie Mac was intended as a temporary measure, the mortgage giants will likely never fully return to private hands.

International

- President Obama sent Russian President Dmitri Medvedev a letter last month, saying that if Russia would help prevent Iran from obtaining long-range missiles, the U.S. would back off the development of missile defense systems in Eastern Europe. The letter apparently struck a relatively strict tone, saying the threat had to go away, and that simply engaging would not be enough.

- The U.S. Department of Defense estimates that the two major Mexican drug cartels have enlisted as many as 100,000 foot soldiers, making it a military force to rival the Mexican Army. 

One More Thing

- We have bequeathed at least one of our country's great proclivities to the people of Iraq: A fondness for huge cars.  Hummers are particularly popular, but "dealers said that high-ranking government and security officials favor large GMC Yukons, while families looking for cheap but reliable American SUVs tend to opt for the Jeep Grand Cherokee." Terrific.

- Last, RNC Chair Michael Steele audaciously claims to the "de facto leader" of the Republican Party.  At least somebody in the GOP is standing up to Rush:

UPDATE: Well, so much for standing up to Rush.  Steele apologized this morning.

Leader: AIG Arg!

- AIG lost more money ($62 billion) last quarter than any company has in history.  As has become their habit, they've come crawling to the government for a fourth bailout, and Administration officials have determined that it is less expensive to keep pumping liquidity into the company than it would be to let the insurance giant fail. The government agreed yesterday to supply an additional $30 billion to AIG. Will this be the last time?  Nobody really thinks so.

- Reversing the terms of the original TARP bailout, AIG will now be excused from paying dividends to its government sponsors, and the interest rate on all debt will be reduced. The government does, however, hold an 80% stake in the company, and the two sides are working together to find ways the government can ultimately get some return on the $180 billion taxpayers have provided in direct aid and loans.

- Joe Nocera had a good column in the NY Times last Friday explaining how AIG has managed to lose on such a grand scale.

Politics

- Kansas Governor Kathleen Sebelius will be the Secretary of Health and Human Services.  We wish her the best of luck in reforming this country's crazy health care system.

- Voters on the north side of Chicago will go to the polls tomorrow to choose a replacement congressman for the inimitable Rahm Emanuel.  There are three front-runners, and three others with a shot.  Nuts!

- Matt Bai wrote a terrific profile of Newt-- yes, that Newt-- for the NYT Magazine yesterday. Is it a good thing for conservatives to have this man back at the helm? Hard to say.

Economy

- HSBC, while avoiding the beggar-thy-government route, has announced that it wil seek $18 billion from investors, and plans to cut 6,000 jobs as it prepares to weather this financial storm.

- UBS, on the other hand, is raising the salaries of its investment bankers.  I have nothing to say on this subject.

- Paul Krugman has an edifying look back at how we ended up awash in easy money, and how this became a problem.

International

- Western Europe rejected a bailout for Eastern Europe. German Chancellor Angela Merkel led the charge against Hungary's proposal of $240 billion to keep the eastern fringe of the EU solvent. Merkel refused to lump all Eastern European countries together in one assessment, but Ferenc Gyurcsany, Prime Minister of Hungary, warned of a "new Iron Curtain" that would divide the continent.  

- Following a bomb attack that killed the Army Chief of Staff in Guinea, a group of Army troops shot and killed João Bernardo Vieira, the President of neighboring Guinea-Bissau. Both countries have suffered instability in recent months, and this will not make matters any better.

One More Thing

- The SNOWPOCALYPSE has descended on the eastern seaboard of our country.  Readers in Minnesota are bound to be unimpressed, but 5-7 inches of this stuff is pretty alarming for us here in DC.  Don't expect much out of your government today.

- One of the highlights of this year's CPAC conference was this young lad talking about what conservatism really means.  He's thirteen, and he does funny voices:

Leader: Budget, Budget, Everywhere!

- There's only one story today, as everyone has spent the past 24 hours poring through the 10-year budget blueprint issued by President Obama. The 2010 budget clocks in around $3.6 trillion, including a $1.75 trillion deficit, and is a sharp repudiation of three decades of conservative dominance. Bob Greenstein of the CBPP calls the budget "bold courageous and honest," but points out Obama has set himself up for some serious political struggles with Congress.  

-  In the NY Times, David Leonhardt analyzes the way this budget marks the end of the Reagan era, seeking to reverse the trend of growing inequality over the past 30 years. Dan Balz of the WaPo writes that Obama is now "gambling with his own future;" also in the Times,  John Harwood looks at the coming political battles.

- The WaPo breaks the budget down, agency by agency, for your education and enjoyment. They've also got this useful graphic that shows where the money comes from and where it goes (the color red means deficit). Here's who's not so happy with the budget: Big investors, student lenders, David Brooks, and people who make a lot of money.

Economy

- The government will take a 36% stake in Citigroup, and plans to convert many of its preferred shares to common stock.  Chief Executive Vikram Pandit will remain at the helm, though the bank's board of directors will get the shake-up.

International

- President Obama will head to Camp Lejeune, NC today, to officially announce his plan to end the Iraq war by August of 2010.  He will go, surprisingly enough, with the support of Sen. John McCain, who got on board with Obama's plan after extracting promises that, if violence increased, the plan could change.

One More Thing

- OMB director Peter Orszag is the coolest.

- Last, Stephen Colbert challenges Michael Steele to a frank discussion of core conservative principles in the form of freestyle rap:

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