Mr. Fix-It doesn't have a credible plan to fix the economy's biggest problem
What's black and white and red all over? I have no idea. But here's what I do know. Mitt Romney's housing plan is an even worse joke.
It's hard to imagine a bigger vulnerability for Obama than housing. The administration's policy has been too little, too late for too long. To borrow a phrase from Ben Bernanke, it's been a case of self-induced paralysis due to a pair of fears. For one, they were worried about forcing banks to recognize even more losses on mortgages back when the financial system's solvency was far from a sure thing. For another, they were worried about a Rick Santelli-led populist backlash against bailing out "loser" homeowners.
So they went small. Refinancings have barely been a rumor, even after Treasury expanded the program. That's still more than can be said for writedowns. Federal Housing Finance Agency (FHFA) chief Ed DeMarco has blocked those -- and Obama has inexplicably refused to recess appoint his replacement. The result has been a tragedy, both for families and for taxpayers. As the New York Fed pointed out, we would save $134 million for every $1 billion of refinancings thanks to lower default rates. It turns out keeping people in their homes is good for everybody.
In other words, Romney had a big opening to go big on housing. Maybe he would come out for a massive refinancing program, like his top adviser Glenn Hubbard wants. Or maybe he would come out for privatizing the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac.Something. Well, the Romney housing plan certainly is something -- something "laughably vacuous" that is, as Matt Yglesias of Slate justifiably lampoons it.
The Romney housing plan comes in two parts: embarrassing, and more embarrassing. Consider this section about fixing the financial system and the GSEs -- and all, as Brad DeLong points out, in 85 words or less!
End "Too-Big-To-Fail" And Reform Fannie Mae And Freddie Mac. The Romney-Ryan plan will completely end "too-big-to-fail" by reforming the GSEs. The four years since taxpayers took over Fannie Mae and Freddie Mac, spending $140 billion in the process, is too long to wait for reform. Rather than just talk about reform, a Romney-Ryan Administration will protect taxpayers from additional risk in the future by reforming Fannie Mae and Freddie Mac and provide a long-term, sustainable solution for the future of housing finance reform in our country.
There are so many problems crammed into so few words. For starters, too-big-to-fail is not about the GSEs; too-big-too-fail is about Wall Street. In other words, it's about the heads-we-win; tails-taxpayers-lose calculus behind big bank bets. Taking the GSEs off government life support does nothing to fix this. Then, of course, there's the question of what reforming the GSEs means. Romney says he won't "just talk" about it -- which makes sense, since he doesn't talk about it here either. It's anybody's guess what Romney wants to do with Fannie Mae and Freddie Mac.
But there are ways to actually end too-big-to-fail. One way is to tackle the "too big" half of the phrase; the other is to take on the "fail" part. In other words, you can either break up big banks until they are small enough to fail, or create a system where big banks can safely fail. Dodd-Frank tries the latter. Its logic is that even a relatively small bank like Lehman Brothers -- or a hedge fund like Long-Term Capital Management -- can topple the financial system if its counterparties are big and numerous enough. Too-connected-to-fail can be just as much a problem as too-big-to-fail. Now, there's still a political economy argument for breaking up the big banks -- so they aren't quite as powerful -- but it seems clear that we need some sort of resolution authority. Except to Romney. Perhaps. He thinks Dodd-Frank is too complicated -- maybe it is! -- and he thinks its Byzantine structure is holding back the recovery. He wants to repeal and replace it with ... something.
Sensible, Not Overly Complex, Financial Regulation That Gets Credit Flowing Again. By replacing the Dodd-Frank Act with sensible regulation (instead of the 9,000+ pages, and counting, of new rules for financial institutions), a Romney-Ryan Administration will usher in a new era of responsible lending. Sensible regulation will allow banks to approve loans for families with good credit rather than rejecting their mortgage applications. A return to more normal lending standards would produce an estimated 640,000 more home sales and 320,000 jobs next year.
Did you catch that Romney wants to do something sensible? What does that mean? Who knows! Something sensible, probably. What about Romney's claim that nixing Dodd-Frank would add 320,000 jobs in 2013 -- is that a sensible? Not so much. Would you believe it if I told you that number comes from the National Association of Realtors (NAR)? Yup, these guys.
That was from Feburary 2008, two years after housing prices peaked. That uncomfortable reality wasn't lost on NAR when they cut this ad two months later, telling people not to worry about falling prices -- increased affordability! -- because housing tends to double every decade.
I could go on. The point isn't that a self-interested group was epically wrong about a once-in-a-generation housing bust. That's true of plenty of others. The point is that Romney is relying on a self-interested group that has been epically wrong to make the case for his -- albeit, nonexistent -- housing plan. It'd be like listening to this guy about, well, anything.
It didn't have to be this way. Conservative wonks have serious ideas about what to do with housing. Mitt Romney even employs some of them as his top advisers. This ambiguity is even more baffling when you consider our jobs slump is the result of our investment slump, which is itself the result of our residential investment slump. Fix housing and you might fix the economy. Now, housing might already be fixing itself, but helping it out would be great policy -- but equally terrible politics.
Obama isn't the only one afraid of anti-bailout rage. Romney is too. Maybe even more so. After all, Romney is counting on the Santellis of the world to back him. And that's why Mr. Fix-It is running on a housing plan short of an actual plan -- a plan that actually fixes things wouldn't pass the Tea Party's ideological sniff test. It would mean helping out homeowners who might not "deserve" help. As Paul Krugman pointed out, Romney is boxed in. He feels like he has to kowtow to the base, but the base does not want to kowtow to the reality of what it will take to get the economy moving again.
Romney is running as an economic expert, but his economic plans either do not add up or do not exist. That leaves him with little more than magical thinking. The joke's on us.
The condition has long been considered untreatable. Experts can spot it in a child as young as 3 or 4. But a new clinical approach offers hope.
This is a good day, Samantha tells me: 10 on a scale of 10. We’re sitting in a conference room at the San Marcos Treatment Center, just south of Austin, Texas, a space that has witnessed countless difficult conversations between troubled children, their worried parents, and clinical therapists. But today promises unalloyed joy. Samantha’s mother is visiting from Idaho, as she does every six weeks, which means lunch off campus and an excursion to Target. The girl needs supplies: new jeans, yoga pants, nail polish.
Listen to the audio version of this article:Download the Audm app for your iPhone to listen to more titles.
At 11, Samantha is just over 5 feet tall and has wavy black hair and a steady gaze. She flashes a smile when I ask about her favorite subject (history), and grimaces when I ask about her least favorite (math). She seems poised and cheerful, a normal preteen. But when we steer into uncomfortable territory—the events that led her to this juvenile-treatment facility nearly 2,000 miles from her family—Samantha hesitates and looks down at her hands. “I wanted the whole world to myself,” she says. “So I made a whole entire book about how to hurt people.”
She lived with us for 56 years. She raised me and my siblings without pay. I was 11, a typical American kid, before I realized who she was.
The ashes filled a black plastic box about the size of a toaster. It weighed three and a half pounds. I put it in a canvas tote bag and packed it in my suitcase this past July for the transpacific flight to Manila. From there I would travel by car to a rural village. When I arrived, I would hand over all that was left of the woman who had spent 56 years as a slave in my family’s household.
The story was notably loud. Its retraction is notably quiet.
On Tuesday of last week, the day after TheWashington Post published its bombshell about President Trump’s Oval Office divulgences to Sergey Lavrov and Sergei Kisliyak, Sean Hannity took to the air at the Fox News Channel to discuss a murdered man named Seth Rich. Rich, a 27-year-old staffer at the Democratic National Committee, had been gunned down in Washington, DC, in July, seemingly the victim of a violent crime. Earlier that day, however, a local Fox TV station had reported—in a claim that would quickly be debunked—that Rich had ties to WikiLeaks, and that his death was, rather than the tragic result of random violence, instead evidence of a deeper conspiracy.
In the days since, that idea has leapt to life in the conservative areas of the media—an easy symbol, in the minds of many, of the “mainstream” media’s stubborn and partisan refusal to report on a story that would put the DNC in a negative light. (“Silence from Establishment Media over Seth Rich WikiLeaks Report,” Breitbartseethed.) And so, as many members of the nation’s press corps set out to further the Post’s reporting on the White House, the Rich story became a chorus-like feature on conservative-leaning media—and not just in Hannity’s extra-bombastic corner of Fox News. The Rich story hit Drudge. It exploded on social media. “NOT RUSSIA, BUT AN INSIDE JOB?” Breitbart asked, provocatively. The site added that, “if proven, the report has the potential to be one of the biggest cover-ups in American political history, dispelling the widespread claim that the Russians were behind hacks on the DNC.”
Can governments be as innovative about saving lives?
Yesterday’s terrorist attack that struck at the end of an Ariana Grande concert in Britain’s Manchester Arena—leaving 22 people dead and 59 injured, by the latest count—feels perhaps even more callous and personal than other such recent atrocities. As TheNew York Timesnoted, the target was “a concert spilling over with girls in their teens or younger, with their lives ahead of them, out for a fun night.”
For Europe, the attack, now claimed by ISIS, represents a continuation of a nightmare scenario: The pace and deadliness of terrorist attacks in the continent has reached levels unprecedented in the post-9/11 era, with the heinous and grotesque becoming frighteningly routine.
Even five years ago, specialists could count the major post-9/11 attacks in Western countries on one hand, and knew every date on which they had been perpetrated. They were known by names like 3/11 or 7/7 (references to attacks in Madrid and London, respectively).
Reports that presidential aides asked senior intelligence officials to help shut down the FBI investigation put those staffers in legal jeopardy.
The Washington Postreport that White House staffers were involved in President Trump’s alleged effort to shut down the FBI’s investigation into ousted National Security Adviser Michael Flynn increases the legal and political peril for the administration as Robert Mueller’s inquiry moves forward.
On Monday, the Post reported that Trump had asked Director of National Intelligence Dan Coats and National Security Director Mike Rogers to push back on the testimony of the March then-FBI Director Jim Comey that Trump campaign associates were being scrutinized as a part of the investigation into Russian interference with the 2016 election. Both officials reportedly refused.
“This is very close to what Nixon tried to do in drawing in the CIA to short circuit the FBI investigation during Watergate,” said a former high-ranking Justice Department official. “His advisers could be very much at risk if they played a role in the alleged interference.” The Post did not mention whether Trump-appointed CIA Director Mike Pompeo received a similar request.
Bobby Moynihan, Vanessa Bayer, and Sasheer Zamata all said their goodbyes last weekend—in very different ways.
In the past, departing Saturday Night Live cast members have gotten whole sketches devoted to sending them off. Kristen Wiig was serenaded with song and dance from Mick Jagger and the rest of the crew; Bill Hader’s Stefon finally married Seth Meyers; Will Ferrell got a series of testimonials. On last weekend’s 42nd season finale, the show said goodbye to three cast members with varying tenures and legacies: Bobby Moynihan, Vanessa Bayer, and Sasheer Zamata. The first got a goodbye sketch of sorts, the second a couple of featured roles on her last night, and the third no acknowledgement at all. It was a slightly muddled end to what feels like one of SNL’s weaker eras—even as the show breaks ratings records in the age of Donald Trump.
New Orleans Mayor Mitch Landrieu explains to his city why four monuments commemorating the Lost Cause and the Confederacy had to come down.
Last week, the City of New Orleans finished removing four monuments—to Confederate President Jefferson Davis, Generals P.G.T. Beauregard and Robert E. Lee, and the postwar battle of Liberty Place. The removals occasioned threats, protests, and celebrations. On Friday, Mayor Mitch Landrieu explained to his city why he had concluded that the monuments needed to come down.
The soul of our beloved City is deeply rooted in a history that has evolved over thousands of years; rooted in a diverse people who have been here together every step of the way—for both good and for ill.
Economists say the document doesn’t account for the costs of tax cuts and its other policy proposals.
Regardless of the details, the budget released Tuesday by the Trump administration was likely to be met with opposition from the Democrats for the scope of the cuts it proposed to programs that help low-income Americans. But, big-picture disagreements aside, people assumed that those details would at least add up.
Not the case: There appears to be a major problem with the details of Trump’s budget—namely, that it fails to account for the loss of trillions of dollars of revenue that will result from the tax cuts it proposes. Left-leaning economists have been quick to highlight the omission, which, as former Treasury Secretary Larry Summers wrote in TheWashington Post, “would justify failing a student in an introductory economics course.” Others are characterizing it not as an error but a deliberate manipulation: “The unreality/gimmicks in this budget are an [sic] unprecedented, epic scale,” Jason Furman, former chairman of the Council of Economic Advisers under Barack Obama, wrote on Twitter.
And other tales from the intersection of science and airport security
When Martin Cohn passed through airport security at Ronald Reagan Airport, he figured that he’d probably get some questions about the 3-D-printed model of a mouse penis in his bag.
The model is 15 centimeters long, made of clear translucent plastic, and indisputably phallic— like the dismembered member of some monstrous, transparent, 11-foot rodent. One of Cohn’s colleagues had already been questioned about it when she carried it on an outward flight from Gainesville to Washington D.C. She put it through the security scanner, and the bag got pulled. A TSA official looked inside, winked at her, and let her go. She was amused but embarrassed, so Cohn offered to take the model home on the return flight.
That old Michael Jackson disc? You've probably been treating it wrong.
If you've tried listening to any of your old CDs lately, if you even own them anymore, you may have noticed they won't play. That's what happened to mine, anyway.
CD players have long since given up on most of the burned mixes I made in college. (In some cases, this is for the best.) And while most of the studio-manufactured albums I bought still play, there's really no telling how much longer they will. My once-treasured CD collection—so carefully assembled over the course of about a decade beginning in 1994—isn't just aging; it's dying. And so is yours.
"All of the modern formats weren't really made to last a long period of time," said Fenella France, chief of preservation research and testing at the Library of Congress. "They were really more developed for mass production."