In this month's cover story, James Fallows takes a moment to zero in on 2010, and the Obama Administration's soft hand with the banks
An official familiar with the administration's economic policy told me: "The recapitalization of the banks was a good idea, and necessary. But we did not put enough conditions on [their] getting the money. Ultimately not being tougher with the guys that got the money is the thing that overthrows the government twice--in 2008 [in a reaction against Bush's TARP plan] and again in 2010."
Keeping the system going was the guideline during the early days of financial rescue, and again later during the argument over government shutdowns and the raising of the debt ceiling. During the initial rescue,
Obama's response was of course shaped by the technocrat circle that guided the effort. From their experience with Asian and Latin American financial panics during the Clinton era, the likes of Summers, Geithner, and Orszag understood that their task was akin to emergency-room medicine, or firefighting. They had to contain the emergency first, because otherwise there was no telling how dire the consequences could be, and worry about anything else later.
"Larry, Tim, Peter--when they heard about restricting bonuses or compensation, they would think, These are people's contracts, we can't change their contracts," a member of the executive branch said. "But really it was the idea that the problem was enormous, the economy is in big trouble, do we want to make enemies while we're putting out the fire? Usually they opted for whatever they thought would keep the economy going."
This rings true about the mood in the middle of an emergency, and also about the cultural tone-deafness that can affect people who all come from the same rarefied world.
I think this is really the sort of thing that burns up the president's more populist critics. In our guts, a lot of us wanted to see the sort of justice meted out which we are all subject to in our daily lives. And yet meting out that justice may well have made matters worse. Part of the advantage of power isn't just in wielding but in being able to escape the full brunt of punishment for wielding it irresponsibly.
As an aside, I enjoyed Fallows piece. Along with some of the better journalism we've seen over the past few months, it really makes clear that the inexperience criticism we heard during the Clinton campaign was substantive. And yet, given that Clinton folks are behind some of the administration's greatest shortcomings, I'm still not sure what to make of that point.
I think the thing is this: Nobody wins them all. And presidential greatness, in the moment, requires a uncanny combination of powers. Fallows again:
Presidents fail because not to fail would require, in the age of modern communications and global responsibilities, a range of native talents and learned skills no real person has ever possessed. These include "smarts" in the normal sense--the analytical ability to cope with the stream of short- and long-term decisions that come at a president nonstop. (How serious is the latest provocation out of North Korea? What are the "out year" budget implications of a change in Medicaid repayment formulas?)
A president needs rhetorical clarity and eloquence, so that he can explain to publics at home and around the world the intent behind his actions and--at least as important--so that everyone inside the administration understands his priorities clearly enough that he does not have to wade into every little policy fight to enforce his preferences. A president needs empathy and emotional intelligence, so that he can prevail in political dealings with his own party and the opposition in Washington, and in face-to-face negotiations with foreign leaders, who otherwise will go away saying that this president is "weak" and that the country's leadership role is suspect.
He needs to be confident but not arrogant; open-minded but not a weather vane; resolute but still adaptable; historically minded but highly alert to the present; visionary but practical; personally disciplined but not a prig or martinet. He should be physically fit, disease-resistant, and capable of being fully alert at a moment's notice when the phone rings at 3 a.m.--yet also able to sleep each night, despite unremitting tension and without chemical aids...
A new president's first term is usually an experiment in seeing which weak point will limit everything else he does. George W. Bush was disciplined and decisive but not sufficiently informed or inquisitive. Bill Clinton was informed and inquisitive but was nearly driven from office because he was not personally disciplined. George H. W. Bush was disciplined and informed but could not seem empathetic or visionary. Ronald Reagan was eloquent and decisive but less and less attentive to the analytic part of his job. You can take the list back a very long way. Many presidents who survive to a second term and thereby attain the ultimate in political success see their preexisting failings bear worse fruit. Impeachment for Bill Clinton, Iran-Contra for Ronald Reagan, impeachment and resignation for Richard Nixon, and so on.
The alchemy of it all is dizzying. My sense is that Obama possesses more of these qualities than he lacks. Moreover, I think having to carry all of this off all while being the biggest black "First" in American history is impressive. Like Fallows, I would expect him to grow in his second term.
When President Obama left, I stayed on at the National Security Council in order to serve my country. I lasted eight days.
In 2011, I was hired, straight out of college, to work at the White House and eventually the National Security Council. My job there was to promote and protect the best of what my country stands for. I am a hijab-wearing Muslim woman––I was the only hijabi in the West Wing––and the Obama administration always made me feel welcome and included.
Like most of my fellow American Muslims, I spent much of 2016 watching with consternation as Donald Trump vilified our community. Despite this––or because of it––I thought I should try to stay on the NSC staff during the Trump Administration, in order to give the new president and his aides a more nuanced view of Islam, and of America's Muslim citizens.
Meet the protesters who tricked conference attendees into waving Russian flags.
Two men made trouble—and stirred up a social-media frenzy—on the third day of the Conservative Political Action Conference by conducting a literal false-flag operation.
Jason Charter, 22, and Ryan Clayton, 36, passed out roughly 1,000 red, white, and blue flags, each bearing a gold-emblazoned “TRUMP” in the center, to an auditorium full of attendees waiting for President Trump to address the conference. Audience members waved the pennants—and took pictures with them—until CPAC staffers realized the trick: They were Russian flags.
The stunt made waves on social media, as journalists covering CPAC noticed the scramble to confiscate the insignia.
Long after research contradicts common medical practices, patients continue to demand them and physicians continue to deliver. The result is an epidemic of unnecessary and unhelpful treatments.
First, listen to the story with the happy ending: At 61, the executive was in excellent health. His blood pressure was a bit high, but everything else looked good, and he exercised regularly. Then he had a scare. He went for a brisk post-lunch walk on a cool winter day, and his chest began to hurt. Back inside his office, he sat down, and the pain disappeared as quickly as it had come.
That night, he thought more about it: middle-aged man, high blood pressure, stressful job, chest discomfort. The next day, he went to a local emergency department. Doctors determined that the man had not suffered a heart attack and that the electrical activity of his heart was completely normal. All signs suggested that the executive had stable angina—chest pain that occurs when the heart muscle is getting less blood-borne oxygen than it needs, often because an artery is partially blocked.
The administration admits to asking the bureau’s deputy director to help it knock down a damaging story about the Trump campaign’s Russia contacts.
The White House’s admission that it asked the Federal Bureau of Investigation to publicly dispute stories in the New York Times describing contacts between the Trump campaign and Russian officials raises serious ethical questions, according to former Justice Department officials.
"It's quite inappropriate for anyone from the White House to have a contact with the FBI about a pending criminal investigation, that has been an established rule of the road, probably since Watergate," said Michael Bromwich, a former Department of Justice inspector general and director of the Bureau of Ocean Energy Management under Obama. "When I was in the Department in the ‘90s, that was well understood to be an inviolable rule."
Millions of Americans are worried that Donald Trump is an ominous figure. Investors have another theory: maybe not.
Donald Trump so permeates the collective consciousness of the country that it is hard to imagine now living in a world without him. But there is one place where the president seems to be relatively invisible—the U.S. stock market.
The Dow, S&P, and Nasdaq have set record highs in the months after Trump’s election. On Thursday, the Dow has its tenth consecutive record closing in a row, at 20,810. This is happening, despite the fact that investors seemed terrified of a Trump presidency in the general election campaign. Trump came into office promising to antagonize America’s allies and economic partners while crushing the international establishment. None of this is particularly favorable to multinational corporations. Even worse, Trump’s first few weeks in office were a maelstrom of hasty lawmaking and furious backtracking, exactly the sort of behavior one might consider a threat to the all-important “certainty” that markets ostensibly crave. What’s more, mainstream economists are nearly united in their certainty that Trump’s core policies, like scrapping free trade agreements while severely limiting immigration, would be bad for the country.
“No… it’s a magic potty,” my daughter used to lament, age 3 or so, before refusing to use a public restroom stall with an automatic-flush toilet. As a small person, she was accustomed to the infrared sensor detecting erratic motion at the top of her head and violently flushing beneath her. Better, in her mind, just to delay relief than to subject herself to the magic potty’s dark dealings.
It’s hardly just a problem for small people. What adult hasn’t suffered the pneumatic public toilet’s whirlwind underneath them? Or again when attempting to exit the stall? So many ordinary objects and experiences have become technologized—made dependent on computers, sensors, and other apparatuses meant to improve them—that they have also ceased to work in their usual manner. It’s common to think of such defects as matters of bad design. That’s true, in part. But technology is also more precarious than it once was. Unstable, and unpredictable. At least from the perspective of human users. From the vantage point of technology, if it can be said to have a vantage point, it's evolving separately from human use.
The state legislature nearly reversed Governor Sam Brownback’s signature policy after a voter rebellion. His economic legacy, one GOP lawmaker says, “is going down in flames.”
It was only two months ago that Governor Sam Brownback was offering up the steep tax cuts he enacted in Kansas as a model for President Trump to follow. Yet by the time Republicans in Congress get around to tax reform, Brownback’s fiscal plan could be history—and it’ll be his own party that kills it.
The GOP-controlled legislature in Kansas nearly reversed the conservative governor’s tax cuts on Tuesday, as a coalition of Democrats and newly-elected centrist Republicans came within a few votes of overriding Brownback’s veto of legislation to raise income-tax rates and eliminate an exemption for small businesses that blew an enormous hole in the state’s budget. Brownback’s tax cuts survive for now, but lawmakers and political observers view the surprising votes in the state House and Senate as a strong sign that the five-year-old policy will be substantially erased in a final budget deal this spring. Kansas legislators must close a $346 million deficit by June, and years of borrowing and quick fixes have left them with few remaining options aside from tax hikes or deep spending cuts to education that could be challenged in court. The tax bill would have raised revenues by more than $1 billion over two years.
The preconditions are present in the U.S. today. Here’s the playbook Donald Trump could use to set the country down a path toward illiberalism.
It’s 2021, and President Donald Trump will shortly be sworn in for his second term. The 45th president has visibly aged over the past four years. He rests heavily on his daughter Ivanka’s arm during his infrequent public appearances.
Fortunately for him, he did not need to campaign hard for reelection. His has been a popular presidency: Big tax cuts, big spending, and big deficits have worked their familiar expansive magic. Wages have grown strongly in the Trump years, especially for men without a college degree, even if rising inflation is beginning to bite into the gains. The president’s supporters credit his restrictive immigration policies and his TrumpWorks infrastructure program.
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His death has punctured the myth of the Kims' holy bloodline.
As the first son of Kim Jong Il, the late leader of the Democratic People’s Republic of Korea, Kim Jong Nam always posed a threat to Kim Jong Un, his half brother and North Korea’s current leader. Before falling out of favor with his father and going into exile soon after, paving the way for Kim Jong Un’s ascent, Kim Jong Nam was the heir apparent. With the execution in 2013 of Jang Sung Tak, the second in command and the eldest son’s staunchest supporter, Kim Jong Nam was unprotected, with little hope of ever returning home.
On February 13, Kim Jong Nam was murdered in Kuala Lumpur airport by two hired killers. The fascination surrounding the killing has centered on its sensational circumstances: that one ofthe killers smeared a poisonous toxin, reportedly VX gas, across Kim’s face; that one of them wore a T-shirt with the acronym “LOL” printed across the front; that the other reportedly mistookthe hit for a comedy stunt. Malaysian police have detained five people allegedly connected to the killing, and remain on the hunt for others—including several North Koreans—linked to it.
Tucker Carlson’s latest reinvention is guided by a simple principle—a staunch aversion to whatever his right-minded neighbors believe.
Tucker Carlson is selling me hard on the swamp. It is an unseasonably warm afternoon in late January, and we are seated at a corner table in Monocle, an upscale Capitol Hill restaurant frequented by the Fox News star. (Carlson, who typically skips breakfast and spends dinnertime on the air, is a fan of the long, luxurious, multi-course lunch, and when I requested an interview he proposed we do it here.) As we scan the menus, I mention that I’ll be moving soon to the Washington area, and he promptly launches into an enthusiastic recitation of the district’s many virtues and amenities.
“I’m so pathetically eager for people to love D.C.,” he admits. “It’s so sad. It’s like I work for the chamber of commerce or something.”