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Monday, June 28, 2010

Folk reporting about BP



Hurricane Creekkeeper John Wathen posts this video of a recent flight over the Gulf of Mexico. I don't necessarily agree with all of Wathen's conclusions, and I could have done without the souping-up at the end. Still, a lot of what you need to see about the Deepwater Horizon disaster is right here -- the bad booming, the dolphins and whales swimming in oil, the slick and sheen and gunk spilling night and day into the water.
If you're looking for the big critters, start around minute six.

G-20 Leaders Promise To Trim Deficits




June 28, 2010
World leaders meeting in Canada over the weekend agreed to some strong medicine to cut their budget deficits. The move comes despite a warning from President Obama that precipitous cuts in government spending could choke off the fragile economic recovery.

Copyright © 2010 National Public Radio®. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.
RENEE MONTAGNE, host:
This is MORNING EDITION, from NPR News. I'm Renee Montagne. And I want to welcome you, Mary Louise Kelly, who's with us for the next month while Steve is away working on a book.
MARY LOUISE KELLY, host:
Thank you, Renee. I am delighted to be here. And we are kicking off this morning with economic news. Around the world, governments have increased spending over the last couple years to try to help their economies pull out of the global financial crisis. But this weekend, at the Group of 20 Summit in Toronto, leaders agreed to some strong medicine to deal with those expanding budget deficits. The move comes despite a warning from President Obama that big cuts in government spending could choke off the fragile economic recovery.
NPR's Scott Horsley reports.
SCOTT HORSLEY: President Obama says coordinated efforts by the G-20 countries over the last 18 months has succeeded in reversing an economic catastrophe and put the member countries on a path to recovery. But he warned that a recovery is still fragile and says it would be a mistake for governments that had been propping up the economy to rush to the exits all at once.
President BARACK OBAMA: In the United States and around the world, too many people are still out of work.�In too many economies, demand for goods and services is still too weak.�
HORSLEY: The president's call for continued stimulus found some support at the G-20 from leaders like Indian Prime Minister Manmohan Singh. But there's now a competing chorus of leaders whose primary concern is budget deficits. Canadian Prime Minister Stephen Harper cited the Greek debt crisis as a wake-up call for governments to stop spending beyond their means.
Prime Minister STEPHEN HARPER (Canada): Here is the tightrope that we must walk to sustain recovery. It is imperative we follow through on existing stimulus plans, most of which we committed ourselves last year. But at the same time, advanced countries must send a clear message that as our stimulus plans expire, we will focus on getting our fiscal houses in order.
HORSLEY: Leaders didn't highlight these disagreements in public. That might have rattled financial markets. Instead, they suggested it was only a difference in emphasis that led some countries to call for further stimulus, while others are enacting strict austerity measures.
U.S. Treasury Secretary Timothy Geithner notes that even as the Obama administration continues to push for more targeted government spending, the end is in sight for the big stimulus program approved last year.
Secretary TIMOTHY GEITHNER (Treasury Department): We've already, as you know, terminated and unwound most of the emergency financial measures. We are about to pass the peak of short-term stimulus in the United States. So looking forward over time, we are already starting to wind down and phase out those exceptional measures. And that's appropriate because, you know, we're a year into recovery now.
HORSLEY: Still, Geithner, like the president, says a year is too soon to declare victory over the recession. He insists the U.S. will not repeat the common mistake after past financial crisis of drawing government support too quickly.
Fred Bergsten, who directs the Peterson Institute for International Economics, says the administration's argument for stimulus spending now, followed by deficit reduction in the near future, might be more persuasive if more people believed the government would actually follow through.
Mr. FRED BERGSTEN (Director, Peterson Institute for International Economics): Where Obama has fallen down is that he has no credible program in place to deal with out budget deficit on a medium to long-term basis. We need a serious budget correction program here phased in as economic conditions permit, and that's Obama's vulnerability, both in terms of his domestic critics and his international critics.
HORSLEY: President Obama, who's promised to cut the deficit it half by 2013, insists that skepticism is misplaced.
Pres. OBAMA: For some reason, people keep on being surprised when I do what I said I was going to do.
HORSLEY: The president has taken some steps that hint at future deficit reduction, including appointment of a budget commission and a review of the nation's tax system, which he calls messy and unfair. The budget commission will not make its recommendations until after the November election. Mr. Obama said last night: Action on the deficit could quickly follow.
Pres. OBAMA: Next year, when I start presenting some very difficult choices to the country, you know, I hope some of these folks who are hollering about deficits and debt step up, because I'm calling their bluff.
HORSLEY: In the meantime, the president offers the same message to deficit hawks at home and abroad, saying fiscal health tomorrow depends on creating jobs and economic growth today.
Scott Horsley, NPR News.

Map: Gulf of Mexico oil production






By popular demand, the map of oil production in the Gulf of Mexico. This map comes fromtestimony (pdf) by SkyTruth president John Amos to a Senate panel last year.
Green lines represent active pipes (25,000 miles in all). Yellow dots represent oil rigs. Of the 3,600 yellow dots, 33 would be affected by the moratorium on deepwater drilling.
As we reported Friday, the judge who overturned the moratorium, Martin Feldman, is heavily invested in oil and gas companies, including BP and Exxon. Judge Feldman sold his Exxon stock at the opening of the market on June 22, just before overturning the moratorium. Exxon owns one of those of 33 yellow dots. Bloomberg reports the judge probably lost a little money on the transaction.

Caption contest:


 BP America

BP America captions this one: "Heavy machinery is now being used to help clean up oil that has been covered by layers of sand from the tides at Casino Beach in Pensacola, FL. 27 June 2010."
You can do better than that. And "BP America" is taken. By me.

Feingold's Rejection of Wall Street Bill Leaves Dems One Short



June 28, 2010 6:32 PM

ABC News’ Matthew Jaffe & Z. Byron Wolf report:
Sen. Russ Feingold, D-Wisc., today said he would vote against the Wall Street reform bill, a decision that leaves the Democrats one vote short of the 60 they will need to pass it.
“My test for the financial regulatory reform bill is whether it will prevent another crisis. The conference committee’s proposal fails that test and for that reason I will not vote to advance it,” Feingold said.
Feingold said “the lack of strong reforms” in the bill, such as measures to break up “too big to fail” banks, makes the legislation something he cannot support.
The Wisconsin lawmaker’s “no” means Democrats will have to muster up at least one new supporter for the bill.
When the bill passed a crucial procedural vote in the Senate in May, it did so by the thinnest of margins: 60-40. But two of those 60 “aye” votes came from West Virginia Democrat Robert Byrd – who passed away Monday – and Massachusetts Republican Scott Brown – who has indicated he might switch sides because a $19 billion bank tax was included when the bill emerged from conference.
A White House official today told ABC News that Treasury Secretary Tim Geithner, National Economic Council director Larry Summers, and other administration officials are going to keep on pressing lawmakers on Capitol Hill and other stakeholders this week to get the bill passed. The bill’s passage is a top priority for President Obama and he will do “whatever is helpful to accomplish that goal,” the official said.
But Wall Street backers do not sound too optimistic that the bill could be blocked at this point. A top financial industry lobbyist, when asked if the bill could be derailed in the Senate, told ABC News, “I don’t see it.”
One hope for Democrats could be convincing Washington Dem Maria Cantwell to move into the “aye” column. Cantwell voted no in May because she, like Feingold, believed the bill was not tough enough on Wall Street.
-Matthew Jaffe & Z. Byron Wolf

Where Theories of Warfare Go to Die

Mother
 Jones


Obama, Petraeus, and the Cult of COIN in Afghanistan.

For those of us who don't understand Financial Reform Bill!!


What Happened Last Night To The Financial Reform Bill?

 

By Pat Garofalo on Jun 25th, 2010 at 12:31 pm

Early this morning, the conference committee reconciling the House and Senate versions of financial regulatory reform approved final language for the legislation after a marathon 20 hour negotiating session. The House confereesapproved the reconciled legislation on a 20-11 vote and the Senate approved it 7-5. Both votes were party line. The bill now moves to one more vote in each chamber next week, where it can’t be amended further.
A flurry of changes were made to the legislation last night, including the addition of an exemption to the Volcker rule — a ban on banks trading for their own benefit with federally insured dollars — and a weakening of Sen. Blanche Lincoln’s (D-AR) provision requiring banks to spin-off their derivatives trading desks. However, the final bill seems to have retained Lincoln’s language requiring exchanges and clearinghouses for derivatives, as well as a provision from Sen. Susan Collins (R-ME) that compels banks to hold more capital against losses.
Below is a comparison of the House and Senate versions of the bill, as well as what ultimately ended up in the conference report. This is by no means an exhaustive comparison, but hits the major portions of the bill:



ProvisionSenate BillHouse BillReconciled Bill
Derivatives Exchanges and ClearingForced almost all derivatives trading onto exchanges and through clearinghouses, with narrow exemptions for non-financial end users.Forced derivatives trading onto exchanges and through clearinghouses, but with wide exemptions for end-users, including financial companies.Senate version
Derivatives Spin-OffForced banks to spin-off their derivatives trading desks into a separately capitalized entity.Did not include a spin-off provision.Forces banks to spin-off some derivatives trading activity (commodities, energy, metals, agriculture, equities and below-investment-grade credit default swaps) but keep trading related to interest rate swaps, foreign exchange swaps, credit, gold and silver, investment-grade credit default swaps and “any transaction used to hedge risk.”
Volcker RuleDirected regulators to study and then implement a ban on proprietary trading.Allowed regulators to ban proprietary trading at systemically risky firms.Implements a stronger ban proposed by Sens. Carl Levin (D-MI) and Jeff Merkley (D-OR), but with an exemption sought by Sen. Scott Brown (R-MA) that allows banks to invest up to three percent of their Tier 1 capital in risky hedge funds and private equity firms.
Consumer Protection AgencyIncluded a Consumer Financial Protection Bureau, housed within the Federal Reserve, with an independent director and rule-writing authority. It could be overruled by a majority vote of the Financial Stability Oversight Council, which is composed of bank regulators.Included a stand-alone Consumer Financial Protection Agency with an independent director and rule-writing authority.Senate version
Auto Dealer ExemptionDid not exempt auto dealers from oversight by the new consumer regulator, but the Senate did pass a “motion to instruct” encouraging conferees to approve the House language.Exempted auto dealers from oversight by the new consumer regulator.House version
Resolution FundIncluded resolution authority funded by an after-the-fact assessment on large financial institutions. Any extra money needed to unwind a firm can be fronted by the Treasury Departent.Included resolution authority pre-funded by an assessment on institutions with more than $10 billion assets. The fund could grow no larger than $150 billion.Senate version
“This is going to be a very strong bill, and stronger than almost everybody predictedthat it could be and that I, frankly, thought it would be,” said House Financial Services Chairman Barney Frank (D-MA). The legislation was renamed the Dodd-Frank bill after Frank and Senate Banking Committee Chairman Chris Dodd (D-CT).

Conservative legal case against the Affordable Care Act suffers a setback



One of the things that has confused me about the attack on the Affordable Care Act's constitutionality is that it's so limited. The Affordable Care Act isn't under attack, actually. Only the individual mandate is. And though the individual mandate is important to have, it could be replaced with some sort of automatic enrollment scheme, or some sort of modified penalty in which failure to purchase insurance locked you out of the bill's protections for a certain number of years. The strategy seemed like trying to destroy a car by convincing a mechanic that the carburetor doesn't fit and needs to be modified and replaced.
Avik Roy's post on today's Sarbanes-Oxley ruling helps the story make more sense: Conservatives were hoping that the absence of a specific "severability clause" -- language stating the law could stand even if a part was removed -- meant that if a part of the law was struck down, all of the law would be struck down. That doesn't make much sense to me, and it turns out that the Supreme Court agrees: As Roy notes, a part of Sarbanes-Oxley was struck down today, and there was no severability clause, and the court kept the rest of the law standing.
By Ezra Klein  |  June 28, 2010; 4:31 PM ET

We're Still at War:

 Photo of the Day for June 28, 2010

Mon Jun. 28, 2010 2:00 AM PDT
 
Twenty pallets of supplies float down over Forward Operating Base Baylough, Afghanistan for Red Tank, 1st Platoon, Delta Company, 1st Battalion 4th Infantry Regiment on June 13, 2010. Photo via the US Army by Staff Sgt. William Tremblay.

Liberal Democrats challenge Obama's War Strategy


Petraeus: Then and Now


June 23, 2010 6:10 PM

 ABC News' Jonathan Karl reports:  Back in September 2007, when moveon.org attacked General David Petraeus as “General Betray Us,” the Senate passed a resolution to express “full support” for Petraeus and to “strongly condemn personal attacks on the honor and integrity of General Petraeus and all members of the United States Armed Forces.”
The resolution passed 72 to 25.
The list of “NO” votes reads like a who’s who of Democratic power players:  Hillary Clinton, John Kerry, the entire Democratic leadership of the Senate (Reid, Durbin, Schumer, Murray) and the current chairman of the Senate Armed Services Committee (Levin).
Also interesting are those who did not vote:  Senators Joe Biden and Barack Obama.
And although Senator Obama skipped this vote, he was in Washington and did vote on the other two measures that came up for a vote that day (one before the Petraeus vote, one after).
Back then, many Democrats were critical of Patraeus because they believed he was exaggerating progress made in Iraq during surge. Today, when asked about past Democratic criticism, Senator Levin said General Patraeus has “proven himself in the field and that he is a supporter of the president's policy and that he is the architect of a counterinsurgency strategy”.
Here’s the roll call for the vote, which took place on September 20, 2007
Grouped By Vote Position:


YEAs ---72
Alexander (R-TN)
Allard (R-CO)
Barrasso (R-WY)
Baucus (D-MT)
Bayh (D-IN)
Bennett (R-UT)
Bond (R-MO)
Brownback (R-KS)
Bunning (R-KY)
Burr (R-NC)
Cardin (D-MD)
Carper (D-DE)
Casey (D-PA)
Chambliss (R-GA)
Coburn (R-OK)
Cochran (R-MS)
Coleman (R-MN)
Collins (R-ME)
Conrad (D-ND)
Corker (R-TN)
Cornyn (R-TX)
Craig (R-ID)
Crapo (R-ID)
DeMint (R-SC) Dole (R-NC)
Domenici (R-NM)
Dorgan (D-ND)
Ensign (R-NV)
Enzi (R-WY)
Feinstein (D-CA)
Graham (R-SC)
Grassley (R-IA)
Gregg (R-NH)
Hagel (R-NE)
Hatch (R-UT)
Hutchison (R-TX)
Inhofe (R-OK)
Isakson (R-GA)
Johnson (D-SD)
Klobuchar (D-MN)
Kohl (D-WI)
Kyl (R-AZ)
Landrieu (D-LA)
Leahy (D-VT)
Lieberman (ID-CT)
Lincoln (D-AR)
Lott (R-MS)
Lugar (R-IN) Martinez (R-FL)
McCain (R-AZ)
McCaskill (D-MO)
McConnell (R-KY)
Mikulski (D-MD)
Murkowski (R-AK)
Nelson (D-FL)
Nelson (D-NE)
Pryor (D-AR)
Roberts (R-KS)
Salazar (D-CO)
Sessions (R-AL)
Shelby (R-AL)
Smith (R-OR)
Snowe (R-ME)
Specter (R-PA)
Stevens (R-AK)
Sununu (R-NH)
Tester (D-MT)
Thune (R-SD)
Vitter (R-LA)
Voinovich (R-OH)
Warner (R-VA)
Webb (D-VA)
NAYs ---25Akaka (D-HI)
Bingaman (D-NM)
Boxer (D-CA)
Brown (D-OH)
Byrd (D-WV)
Clinton (D-NY)
Dodd (D-CT)
Durbin (D-IL)
Feingold (D-WI) Harkin (D-IA)
Inouye (D-HI)
Kennedy (D-MA)
Kerry (D-MA)
Lautenberg (D-NJ)
Levin (D-MI)
Menendez (D-NJ)
Murray (D-WA)
Reed (D-RI) Reid (D-NV)
Rockefeller (D-WV)
Sanders (I-VT)
Schumer (D-NY)
Stabenow (D-MI)
Whitehouse (D-RI)
Wyden (D-OR)
Not Voting - 3Biden (D-DE) Cantwell (D-WA) Obama (D-IL)