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.
Why is President Trump badmouthing his attorney general, why doesn’t he just fire him, and what does he hope to accomplish by pushing him out?
Jefferson Beauregard Sessions III has spent much of his career making enemies. The Alabaman’s strident views have won him plenty of detractors, from civil-rights activists to fellow members of the Senate. But in Donald Trump, Sessions believed he had finally found a champion and fellow traveler. Instead, it seems Sessions has found his most formidable enemy yet.
Trump is now on his second consecutive day of publicly humiliating the attorney general on Twitter, following an interview with The New York Times last week in which he said he wished he’d never appointed Sessions. The attorney general’s decision to recuse himself from investigation into Russian interference in the election infuriated Trump, who has repeatedly tried to end the investigation, including by firing FBI Director James Comey. Instead, Comey’s firing resulted in the appointment of a special counsel to take the case. Here’s Trump’s latest broadside against Sessions:
The president addressed the quadrennial gathering like a campaign rally—talking to a group devoted to service as if it valued self-interest.
Donald Trump continued his ongoing tour of cherished American institutions on Monday night, delivering yet another jarringly partisan speech to an apolitical audience—this one, comprising tens of thousands still too young to vote.
During the campaign, his performance at the Al Smith dinner—where presidential candidates roast their rivals and themselves every four years—devolved into overt attacks on his opponent. Shortly after his election, he stunned CIA employees by delivering a campaign-style stump speech before the agency’s Memorial Wall. On Saturday, he surprised the crowd of uniformed personnel at the commissioning of the USS Gerald R. Ford by imploring them to lobby Congress in support of his agenda.
The internet’s favorite fact-checkers are caught in a messy dispute.
On Monday, the editorial staff of Snopes.com wrote a short plea for help. The post said that the site needed money to fund its operations because another company that Snopes had contracted with “continues to essentially hold the Snopes.com web site hostage.”
“Our legal team is fighting hard for us, but, having been cut off from all revenue, we are facing the prospect of having no financial means to continue operating the site and paying our staff (not to mention covering our legal fees) in the meanwhile,” the note continued.
It was a shocking message from a website that’s been around for more than 20 years—and that’s become a vital part of internet infrastructure in the #fakenews era. The site’s readers have responded. Already, more than $92,000 has been donated to a GoFundMe with a goal of $500,000.
Partly, it’s simple rage. Mueller threatens Trump. And when Trump sees someone as a threat, he tries to discredit and destroy them—conventional norms of propriety, decency and legality be damned.
But there’s another, more calculated, reason. Trump and his advisors may genuinely believe that firing Mueller is a smart move. And if you put morality aside, and see the question in nakedly political terms, they may be right.
The chances that Mueller will uncover something damning seem very high. Trump has already admitted to firing former FBI Director James Comey over the Russia investigation. Donald Trump Jr. has already admitted to welcoming the opportunity to get dirt on Hillary Clinton from people he believed were representatives of the Russian government. Even if Mueller doesn’t accuse anyone of a crime, he’s likely to paint a brutal picture. And that’s just on the question of election collusion and obstruction of justice. If Mueller uses Russia to segue into Trump’s business dealings, who knows what he might find. An all-star team of legal and financial sleuths, with unlimited time and money, and the ability to subpoena documents and people, have been let loose on the affairs of a man whose own autobiographer called him a “sociopath.” No wonder Trump is scared.
As pay TV slowly declines, cable news faces a demographic cliff. And nobody has further to fall than the merchant of right-wing outrage.
Updated at 12:05 p.m.
October 7, 2016, will be the 20th birthday of the Fox News Channel, and at the moment, the network is experiencing the soap-operatic highs and lows typical of any teenager on television. In many ways, the summer of 2016 may go down in Fox News history as the company’s nadir. Its founder and leader Roger Ailes has been dishonorably dispatched, the remaining executives are dealing with a flurry of sexual harassment lawsuits, and one of its most public faces, Sean Hannity, has ignominiously remodeled himself as a gutless Trump whisperer.
And yet Fox News’ fortunes are ascendant, at least in the most quantifiable sense. The network’s annual profit in 2015 soared by about 20 percent. For the first time ever, Fox News has been the most-watched cable network among both primetime and daytime viewers for several months, with a larger audience than its nominal rivals, CNN and MSNBC, combined. Led by “The O'Reilly Factor,” Fox News doesn’t just have the best-rated news show on cable television; according to The Wrap, it has the 13 best-rated news shows on cable television.
There is plenty of reason to be confident that if ISIS could reliably and easily make a dirty bomb, they would do so.
In the last three years, I have not spent much time wondering whether ISIS has access to radioactive material. I know they have had access, because I had a hand in getting it to them.
In 2005, while working for an air cargo company in Mosul, I delivered a large wooden box, marked for consignment to the University of Mosul. To fly it in, we needed a special plane, an Antonov-12, whose cargo hold was cavernous compared to our usual 727s and DC-8s. The box contained, according to its air waybill, radiological imaging equipment for the university’s teaching hospital. The next day, workers from the hospital met me at my office, and I gently forklifted the crate into their truck. The load seemed off-balance, and I winced when I heard a corner of the box splinter as we strapped it down. But they drove away, and unless that million-dollar piece of medical equipment fell off the back of the truck and ended up strewn across the road, it probably made it safely to the hospital, where it was captured by ISIS nine years later.
Without insurance, millions of Americans will find themselves in dire financial straits as they struggle to pay for medical services.
Senate Republicans are working to pass legislation scaling back government support for health coverage, with Majority Leader Mitch McConnell calling for a vote on Tuesday to begin debate on a bill whose precise contents remain unknown. “Every Republican running for office promised immediate relief from this disastrous law,” President Trump said on Monday, referring to Obamacare. “But so far, Senate Republicans have not done their job in ending the Obamacare nightmare.”
Even without more specifics on the details of the legislation, one thing is clear: The options under consideration would increase the number of uninsured by 15 to 30 million over the next 10 years, the Congressional Budget Office has estimated. A consequence of this will be not only a loss of access to medical services, but an increase in financial crises for millions of American families. Insurance, after all, is also a financial product, protecting people from economic ruin.
Republicans are now considering a bill that would only scrap the law’s insurance mandates and some taxes as they struggle to round up votes in the Senate.
Senate Republicans may be dramatically scaling back their ambitions for repealing the Affordable Care Act as they struggle to find the votes necessary to pass any legislation dismantling the 2010 law.
Ahead of a crucial procedural vote on Tuesday, Majority Leader Mitch McConnell told Senator Rand Paul that if the Senate could not pass either McConnell’s proposed replacement for Obamacare or a broad repeal of the law, he would try to pass a bill that merely scrapped Obamacare’s insurance mandates and some of its taxes. The goal would be to find the lowest-common denominator of what at least 50 Republican senators could report, and it would set up a conference committee with the House on a final health-care bill.
Thirty-one-year-old Ezra Cohen-Watnick holds the intelligence portfolio on the National Security Council—but almost everything about him is a mystery.
Just 24 days into his tenure as Donald Trump’s national-security adviser, Michael Flynn was forced to resign, having reportedly misled Vice President Mike Pence about his contacts with Russian officials. When Flynn departed, the men and women he’d appointed to the National Security Council grew nervous about their own jobs, and with good reason. The new national-security adviser, General H.R. McMaster, promptly began clearing out Flynn’s people, among them Dave Cattler, the deputy assistant to the president for regional affairs, Adam Lovinger, a strategic affairs analyst on loan from the Pentagon, and KT McFarland, Flynn’s deputy, who was eased out with the ambassadorship to Singapore. Even Steve Bannon, among the most powerful people in the White House, was removed from the meetings of the NSC Principal’s Committee, where he had been installed early on in the administration.
But psychiatrists, psychologists, and other mental-health professionals have been especially careful about not speculating about the president’s mental state. Well, some of them have been. (It’s not like this question has been left unexplored entirely, however, including in the pages of this magazine.)
But, officially, many psychiatrists and psychologists are cautious, and for good reason. Leading professional organizations like the American Psychiatric Association have underscored the importance of upholding what’s known as the Goldwater Rule, which says psychiatrists should never give opinions about the mental state of individuals they have not directly evaluated. The name refers to a controversy that erupted after the 1964 presidential election, when Senator Barry Goldwater won a libel suit against a magazine that printed the opinion, shared by about 1,000 psychiatrists, that he was mentally unfit for office.