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Sen. Corker Refutes Sen. McConnell: The Resolution Fund Is ‘Anything But A Bailout’

Senate Minority Leader Mitch McConnell (R-KY) took to the Senate floor today to repeat the false assertion that the pending financial reform bill will lead to further taxpayer-funded bailouts. A number of other Republicans — including House Minority Leader John Boehner — have repeated the false right-wing talking point.

The language originates from the advice of pollster Frank Luntz, who has urged Republicans to frame the final product as filled with bank bailouts. Republicans have thus asserted that the proposed resolution fund, negotiated by Sens. Bob Corker (R-TN) and Mark Warner (D-VA), amounts to a “50 billion dollar bailout fund.” The resolution authority, of course, has the opposite purpose: It is designed to eliminate too-big-to-fail institutions, not prop them up. It would raise $50 billion “from the largest financial firms” to provide for the orderly unraveling of big, systemically important institutions in the event it is needed — without forcing taxpayers to cover the losses.

Today on the Senate floor, Sen. Bob Corker (R-TN) debunked his conservative colleagues’ talking point, saying that the fund “is anything but a bailout”:

CORKER: But this fund that’s been set up is anything but a bailout. It’s been set up to, in essence, provide upfront funding by the industry so that when these companies are seized, there’s money available to make payroll and to wind it down while the pieces are being sold off. Now, a lot of people have said this is a Republican idea. There’s no question that this is something Sheila Bair has proposed. The fdic wants to see a prefund. The treasury would like to see a postfund.

Watch it:

Corker explained that all serious debate over the resolution fund concerns whether to “pre-raise” the money in anticipation of a bank failure, or to require the financial industry to fund resolution after an institution has crashed. Corker called the rhetoric “silly,” pointing out that “either way, you’ve got to have the monies available to shut the firms down” without endangering the entire financial system.

McConnell has also sought to bring the Obama administration into his argument, saying yesterday on CNN’s State of the Union that Treasury Secretary Tim Geithner and former Clinton Secretary of Labor Robert Reich agreed with him that the fund would lead to future “taxpayer funded bailouts.” Reich quickly rebuked McConnell for mischaracterizing his position, writing that “When Mitch McConnell has to misquote me to find evidence he’s telling the truth, he is desperate.”

In any case, McConnell’s qualms about the resolution fund seem little more than a political stunt. TPM reports that even after the Obama administration signaled that it was willing to ditch the offending provision, the Republican leader has remained uncritically opposed to the bill. Echoing his rhetoric during the health care debate, McConnell told CNN’s Candy Crowley yesterday that “[w]e ought to go back to the drawing board.”

DJ Carella

Cross-posted on ThinkProgress.

Politics

Sen. Corker Refutes Right-Wing Talking Point: The Resolution Fund Is ‘Anything But A Bailout’

Senate Minority Leader Mitch McConnell (R-KY) took to the Senate floor today to repeat the false assertion that the pending financial reform bill will lead to further taxpayer-funded bailouts. A number of other Republicans — including House Minority Leader John Boehner — have repeated the false right-wing talking point.

The language originates from the advice of pollster Frank Luntz, who has urged Republicans to frame the final product as filled with bank bailouts. Republicans have thus asserted that the proposed resolution fund, negotiated by Sens. Bob Corker (R-TN) and Mark Warner (D-VA), amounts to a “50 billion dollar bailout fund.” The resolution authority, of course, has the opposite purpose: It is designed to eliminate too-big-to-fail institutions, not prop them up. It would raise $50 billion “from the largest financial firms” to provide for the orderly unraveling of big, systemically important institutions in the event it is needed — without forcing taxpayers to cover the losses.

Today on the Senate floor, Sen. Bob Corker (R-TN) debunked his conservative colleagues’ talking point, saying that the fund “is anything but a bailout”:

CORKER: But this fund that’s been set up is anything but a bailout. It’s been set up to, in essence, provide upfront funding by the industry so that when these companies are seized, there’s money available to make payroll and to wind it down while the pieces are being sold off. Now, a lot of people have said this is a Republican idea. There’s no question that this is something Sheila Bair has proposed. The fdic wants to see a prefund. The treasury would like to see a postfund.

Watch it:

Corker explained that all serious debate over the resolution fund concerns whether to “pre-raise” the money in anticipation of a bank failure, or to require the financial industry to fund resolution after an institution has crashed. Corker called the rhetoric “silly,” pointing out that “either way, you’ve got to have the monies available to shut the firms down” without endangering the entire financial system.

McConnell has also sought to bring the Obama administration into his argument, saying yesterday on CNN’s State of the Union that Treasury Secretary Tim Geithner and former Clinton Secretary of Labor Robert Reich agreed with him that the fund would lead to future “taxpayer funded bailouts.” Reich quickly rebuked McConnell for mischaracterizing his position, writing that “When Mitch McConnell has to misquote me to find evidence he’s telling the truth, he is desperate.”

In any case, McConnell’s qualms about the resolution fund seem little more than a political stunt. TPM reports that even after the Obama administration signaled that it was willing to ditch the offending provision, the Republican leader has remained uncritically opposed to the bill. Echoing his rhetoric during the health care debate, McConnell told CNN’s Candy Crowley yesterday that “[w]e ought to go back to the drawing board.”

DJ Carella

Climate Progress

Royal Society Stunner: “Observations suggest that the ongoing rise in global average temperatures may already be eliciting a hazardous response from the geosphere.”

Top scientists call for research on climate link to volcanoes, earthquakes, landslides and tsunamis

Periods of exceptional climate change in Earth history are associated with a dynamic response from the solid Earth, involving enhanced levels of potentially hazardous geological and geomorphological activity. This response is expressed through the adjustment, modulation or triggering of a wide range of surface and crustal phenomena, including volcanic and seismic activity, submarine and sub-aerial landslides, tsunamis and landslide ‘splash’ waves glacial outburst and rock-dam failure floods, debris flows and gas-hydrate destabilisation. Looking ahead, modelling studies and projection of current trends point towards increased risk in relation to a spectrum of geological and geomorphological hazards in a world warmed by anthropogenic climate change, while observations suggest that the ongoing rise in global average temperatures may already be eliciting a hazardous response from the geosphere.

Current Issue CoverLots of people have asked me whether there has been any connection between global warming and the recent earthquakes and other geological activity.  Today, the UK’s Royal Society published an amazingly timely special series of scientific papers on the topic.  Seven leading experts co-authored the editors’ introduction (quoted above).

Reuters reported on Friday, “A thaw of Iceland’s ice caps in coming decades caused by climate change may trigger more volcanic eruptions by removing a vast weight and freeing magma from deep below ground, scientists said.”  Last week, FoxNews reported, “A huge glacier has broken off and plunged into a lake in Peru sparking a 23-meter high tsunami wave that destroyed a nearby town.”  Local governor Cesar Alvarez said: “Because of global warming the glaciers are going to detach and fall on these overflowing lakes. This is what happened.”

We already knew that methane hydrates were at risk of destabilizing and becoming a positive or amplifying feedback to global warming (see “Science stunner: Vast East Siberian Arctic Shelf methane stores destabilizing and venting“).  Two articles in this issue go further:

Read more

Health

Conservatives Run Away From Their Own Ideas To Paint Health Law As A Partisan Government Takeover

romney_geer_natdef1june09While the final health care reform law probably resembles the GOP’s 1993 health care plan closer than some of the more progressive alternatives Democrats proposed during the 2008 Presidential election, Republicans and their conservative allies have gone to great lengths to portray reform as a radical government takeover of health care. Organizations like the Heritage Foundation and politicians like Mitt Romney and Chuck Grassley, who have historically supported centrist reform provisions like the individual mandate, state-based exchanges and tax credits to help Americans purchase affordable coverage, are now abandoning their old positions and aligning themselves with conservatives who argue that health reform is unconstitutional. The shift is part of an election strategy designed to convince Americans that the new health care law is a left-wing to expand government control over the health care system.

President Obama, however, has repeatedly credited Heritage and Romney for providing the foundation for several reform provisions, placing some conservatives on the defensive. Just today, Robert Moffit of the Heritage Foundation attempted to distance his organization from national reform:

First, Heritage did not originate the concept of the health insurance exchange. Furthermore, the version of the exchange we did develop couldn’t be more different than that embodied in this law. For us, the health insurance exchange is to be designed by the states. It is conceived as a market mechanism that allows individuals and families to choose among a wide range of health plans and benefit options for those best suited to their personal needs and circumstances. People would have a property right in their health policy, just like auto or homeowners’ policies, and be able to take it with them from job to job. Under the Heritage design, individuals could choose the health plan they want without losing the tax benefits of employer-sponsored coverage. The exchange we propose would be open to all state residents and — very importantly — be free of federal regulation. [...]

For the record, we think that the law’s federal mandate is unconstitutional. Our legal center, led by former attorney general Edwin Meese III, notes that Congress has no authority to force an American to buy any good or service merely as a requirement of being alive.

Yes, in the early 1990s, we, along with other prominent conservative economists, supported the idea of such a mandate. It seemed the only way to solve the “free-rider” problem, in which individuals can, under federal law, walk into any hospital emergency room nationwide and rack up big bills at taxpayer expense.

Two things. First, it’s true that the exchanges and the individual mandate in the final health care law are different than Heritage would have liked, but that, after all is the nature of the political process. The final legislation is a collection of conservative and progressive ideas (more the former and the latter) and one can’t argue that modifying a conservative ideas renders it completely unrecognizable. The new health care law requires each state to establish its own exchange and gives states a great deal of flexibility in running, operating and regulating the new health insurance markets.

Second, Moffit’s claim that Heritage foolishly supported the individual mandate when it was part of a fad in the 1990s is just inaccurate. As Lee Fang points out, Heritage boosted Romney’s health reform plan as recently as 4 years ago, calling the individual mandate “Not an unreasonable position, and one that is clearly consistent with conservative values.”

The fact is, conservatives openly acknowledged the bipartisan nature of health care reform throughout 2009 and are now backing away from the law for purely political purposes. In September 2009, for instance, Rep. Eric Cantor (R-VA) told a town hall meeting that “Republicans and Democrats agree on 80 percent of fixing the nation’s healthcare system.” Rep.Charles Boustany (R-LA), who delivered the Republican response to the President’s congressional address in September, also said, “I would venture to say that we agree on about 80% of the issues right now. It’s just a matter of hashing out those few areas where we disagree, but there’s really not been that kind of real discussion, and it needs to happen.”

Politics

VIDEO: On Anniversary Of Oklahoma City Bombing, Armed Right-Wing Activists Accuse Obama Of Tyranny

Today in Fort Hunt, and later in Gravelly Point, two parks along the Potomac River in Virginia, right-wing activists gathered with loaded pistols and unloaded rifles to protest the Obama administration’s “tyranny.” Today also marks the 15th anniversary of the Oklahoma City bombing, but attendees told ThinkProgress that April 19th is significant for several reasons. One attendee likened his movement to the Jews who rose up in the Warsaw ghetto against Nazi soldiers, which began on April 19th, while some said they were like the revolutionaries who fought in the battle of Lexington and Concord. Others, echoing Timothy McVeigh and Rush Limbaugh, commemorate April 19th because it marks the siege of the Branch Davidian ranch in Waco.

Only about 50 attendees showed up to the rally. A man who identified himself as “Mark” from Arkansas said many people wanted to attend, but did not have enough vacation time or money to make the trip. Mark said he read about some European countries which provide for more vacation time, and although he opposes the government, said he wishes it would do more to increase wages and paid leave for workers. In any case, there were as many reporters as attendees at the event.

Mike Vanderboegh, the blogger who encouraged people to throw bricks at Democratic offices around the country last month and who called for a “thousand little Wacos” to resist the government, addressed the rally in the morning. He told the crowd that the government must “to understand this situation is coming to a fundamental break when people innocent and guilty are going to begin dying for their failure to understand.” Vanderboegh told a reporter that there will be “consequences” for the government. Asked if that means “more Ruby Ridges, more Wacos,” Vanderbroegh replied, “precisely.”

Larry Pratt, executive director of Gun Owners of America, mocked President Clinton for cautioning militia groups not to use incendiary rhetoric. “This is the guy whose Attorney General thinks a barbecue is burning a bunch of people in Waco and he’s lecturing us about being civil,” barked Pratt at the rally. Pratt then said suggested that the Obama administration is elitist, and that they would do “whatever they have to — including barbecue.” TP’s Victor Zapanta produced a video of interviews and speeches at the event. Watch it:

Although many protesters were adamant about their belief that the Obama administration is conspiring to confiscate their weapons, as the Washington Post pointed out today, Obama has actually expanded gun rights and signed into law a rule last year which allowed guns into National Parks, making today’s event possible.

Yglesias

Endgame

I’ll never let it show:

— Five things you should know about Donald Berwick, new Medicare chief.

— Stories about how the kids these days are hooking up are always good for a laugh, but this one is particularly funny.

— “Bank Concentration, Competition, and Crises: First results” (PDF).

— If the Trailblazers extend Marcus Camby then the rest of the West better watch out next year.

People for Bikes.

— When regulators mandate more parking spaces the poor and the environment lose.

Best Coast, “Feeling of Love”.

Security

ALIPAC Leader: Politicians And ‘Illegal Aliens’ Have ‘A Lot In Common Like Lying, Stealing, and Taking Everything’

Last Thursday, William Gheen of the immigration restrictionist group — Americans for Legal Immigration Reform PAC — spoke at a Houston Tea Party event on what he views as a “conspiracy” or “globalist” plan to “transfigure this country” through illegal immigration. In a video of his speech distributed by ALIPAC over the weekend, Gheen claims that politicians want to help “illegal aliens” because the two groups lie, cheat, and steal:

Now why do so many corrupt politicians want to help illegal immigrants? As of just this afternoon, I believe it’s because they have a lot in common with illegal aliens. These corrupt politicians and illegal aliens have a lot in common like lying, stealing, and taking everything that’s not bolted down from the American taxpayer. Lying, cheating, and stealing.

Americans are being systematically replaced in our jobs, in our schools, in our universities, and in our health care systems. And if Barack Obama and his team pass comprehensive amnesty and turn 15 million illegal aliens into voters, they’re gonna replace all of you at the ballot box and the borders of the United States will be irreparably destroyed. [...] It’s a bit of a conspiracy. It is a plan. Illegal immigration is not just something that is happening randomly, it is part of a plan to transfigure this country. It’s a globalist plan that I call grand theft nation. [...] It’s time for constitution to be restored and all states shall be protected from invasion.

Watch it:

While Gheen’s audience appeared receptive, polling shows that the tea party movement as a whole doesn’t place much emphasis on the immigration issue. A recently released set of national surveys by the Winston Group found that those who associate with the tea party movement are primarily motivated by economic and fiscal concerns and that cracking down on immigration ranks low on their priority list, as it does for most Americans. Meanwhile, FreedomWorks chairman and tea party strategist Dick Armey has outright opposed letting nativists under the tea party “umbrella” and has suggested that doing so would be poisonous to the movement. Rather than calling undocumented immigrants liars and thiefs, Armey has claimed he believes they are “good people” just “trying to feed their babies.”

According to Armey’s criteria, the tea party umbrella may not be big enough for Gheen. The Southern Poverty Law Center reports that ALIPAC “is supported by the Federation for American Immigration Reform, recently designated as a hate group by the Southern Poverty Law Center’s Intelligence Project, and allied with various Minuteman factions.” The American Defamation League accuses ALIPAC of promoting “virulent anti- Hispanic and anti-immigrant rhetoric” and “adopting the tactics and rhetoric of racist groups and moving it into the mainstream.” Given this information, Sen. John McCain’s (R-AZ) reelection campaign called on challenger and former Rep. J.D. Hayworth (R-AZ) to disavow ALIPAC’s endorsement on two separate occasions.

Back in March, one of Gheen’s colleagues — Roy Beck of NumbersUSA — asked his organization’s members to “leave off the Hispanic-Latino stuff” when talking about immigration to skeptical tea party activists and urged followers to translate their anti-immigrant views to fit the tea party anti-government, anti-tax narrative. A recent study showed legalizing undocumented immigrants through comprehensive immigration reform would generate $4.5 to $5.4 billion in additional net tax revenue within three years.

Yglesias

Jews for Sarah Launches; Palin Announces America is a “Christian Nation”

Last month, some folks launched a JewsForSarah.com website, stating “Jewish Americans for Sarah Palin is an independent group of academic, religious and political leaders, dedicated to promoting consideration of Gov. Sarah Palin’s political positions in the wider American Jewish community.” In other news, Jon Chait finds Palin going out of her way to make sure that no non-trivial number of Jews will ever vote for her:

jewsforsarah

She denounced this week’s Wisconsin federal court ruling that government observance of a National Day of Prayer was unconstitutional — which the crowd joined in booing. She asserted that America needs to get back to its Christian roots and rejected any notion that “God should be separated from the state.”

“Hearing any leader declare that America isn’t a Christian nation and poking at allies like Israel in the eye — it is mind-boggling to see some of our nation’s actions recently, but politics truly is a topic for another day,” Palin said.

In some ways the really noteworthy thing here is that Palin specifically combined her denunciation of religious minority groups with an attack on Barack Obama’s insufficient fealty to Israeli government policies. The two themes were in the very same sentence. It’s an interesting glimpse of a trend I think we’ll see more and more of—a largely post-Jewish brand of pro-Israel politics.

Politics

Right-Wing Media Network Launching This Summer To ‘Impact The Political And Cultural Discussions In America’

Reports emerged over the weekend that RightNetwork, a new right-wing television and internet media venture, is set to be launched this summer to “entertain, engage and enlighten Americans who are looking for content that reflects and reinforces their perspective and worldview.” Actor Kelsey Grammer appears in a number of web videos promoting the network, complaining of “things that just aren’t right,” like “big government,” “more taxes,” “grown man tickle fights,” “trillion dollar deficits,” and “bureaucrats.”

RightNetwork also appears to have the backing of Ed Snider, chairman of Comcast Spectacor, a Philadelphia-based sports and entertainment company and Comcast subsidiary. “RightNetwork will be the perfect platform to entertain, inform and connect with the American majority about what’s right in the world,” Snider says in the company overview.

In another video, a RightNetwork promoter, speaking at what seemed to be a Tea Party rally, explains who RightNetwork is marketing itself towards:

RightNetwork is going to be for people who work for a living, people who break their backs paying more than their fair share of taxes, for people who believe in this country and believe that we do not have to apologize to anyone. RightNetwork is for people that live in what they call “flyover country,” and what we call, “America.” RightNetwork, because what we’ve been seeing on TV, isn’t all of America.

Watch it:

Other videos on the company’s website promote right-wing comedy shows; a program called “Running” profiles six conservative first-time candidates for Congress; and, a show called “Poker and Politics” features right-wing media figure Andrew Breitbart.

Comcast is currently finalizing a deal to purchase NBC Universal. Late last year, Comcast VP David Cohen suggested the possibility that the company would launch a right-wing network to compete with Fox News, but added that Comcast “wouldn’t tamper with NBC or MSNBC’s operations.” Politico reports today that “RightNetwork has, in fact, pitched Comcast, but the company has yet to decide whether to pick it up.”

However, a Comcast official wrote on the company’s blog today that “we have no partnership” with RightNetwork and “have no plans to launch or distribute the network.”

Health

Romney Says His ‘Model For The Nation’ Is Really Just A ‘Model For The States’

romney-faithAndrew Romano forces Mitt Romney to explain why he continues to defend federal the Massachusetts health care plan while calling for the repeal of its federal cousin, ObamaCare. Romney’s argument boils down to this: health reform should be done on the state level with help from the federal government. “I reject the idea of a federal mandate imposed on states and individuals,” Romney tells Romano. “If instead one said at the federal level, ‘We’re going to give resource flexibility to states to use money they’re already receiving as a way to help the poor buy insurance,’ that says, “All right, we’re using funds that have already been allocated, we’re letting states create their own plans, and we’ll see how that works. And we’ll learn from the experience.”

But didn’t Romney suggest that the Massachusetts plan would be a model for the nation? He explains:

NEWSWEEK: Back in February 2007, you said you hoped the Massachusetts plan would “become a model for the nation.” Would you agree that it has?

ROMNEY: I don’t … You’re going to have to get that quote. That’s not exactly accurate, I don’t believe.

NEWSWEEK: I can tell you exactly what it says: “I’m proud of what we’ve done. If Massachusetts succeeds in implementing it, then that will be a model for the nation.”

ROMNEY: It is a model for the states to be able to learn from. During the campaign, I was asked if I was proposing that what I did in Massachusetts I would do for the nation. And the answer was absolutely not. Our plan is a state plan. It is a model for other states—if you will, the nation—it is a model for them to look at what we’ve accomplished and to better it or to create their own plans.

NEWSWEEK: There are obvious similarities between Obamacare and what you did in Massachusetts. Do you acknowledge that what you did in Massachusetts has become a model for nation under Obama, whether you wanted it to or not?

ROMNEY: I can’t speak for what the president has done. I don’t know what he looks at. He never gave me a call. Neither he nor any of his colleagues [gave me] a call to ask what worked and did not work, and how would they improve upon it and so forth. If what was done at the state level, they applied at the federal level, they made a mistake. It was not designed for the nation.

Let’s bend over backwards, ignore his long history of inconsistency, and give Romney the benefit of the doubt. Perhaps by “nation” he really means 50 different states. In that case, his argument would be the following:

1) Massachusetts reform is unique to Massachusetts.

2) The federal government should let the states reform their own systems as they see fit.

3) States can use the Massachusetts plan as a model, if they wish.

In short, there is no larger role for the federal government in health reform than giving states money to try different experiments. But if you consider this argument on its own merit, you quickly realize that their Romney’s “plan” would lead to serious national inequality and disadvantage the states that need reform the most.

Romney was able to pass and sign health care reform in 2006 because Massachusetts already enjoyed a relatively high insurance rate (10.7% uninsured in 2005, compared to 15.7% national average), a large tax base, robust state regulations and a fairly liberal electorate. Other states don’t have these advantages. Nationally, state uninsured rates “vary from just under 8 percent to almost 25 percent” and, the states with the least resources often have the highest uninsurance rates. They would be most disadvantages under Romney’s state-based approach because they don’t have the economic, political or structural capacity to invest in something as big as health care reform and their populations face more prevalent rates of obesity, diabetes and other expensive chronic conditions. Asking these states to take some federal dollars and just expand coverage (somehow) ignores the reality of state government (almost every state has to balance its budget every year) and the economic challenges states are facing in funding their existing health programs.

Romney’s approach may make for a good sound bite, but in reality it’s a Darwinian solution that would leave the poorest states with the most pronounced health crisis to fend for themselves. If this is really his position, then we should make him own it.

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