ThinkProgress Logo

Economy

Senate GOP Calls Fed Proposal To Reduce Mortgage Payments ‘Completely Egregious’

The Federal Reserve last week released a set of proposals for aiding the battered American housing market, including a series of ways to help homeowners who are buried under the weight of unsustainable mortgage payments or who now find themselves significantly underwater on their home (meaning they owe more on their mortgage than their house is worth). New York Federal Reserve President William Dudley added to the list a proposal for reducing mortgage principal (the outstanding amount on the loan) for underwater homeowners.

The Senate GOP, which had obstructed all manner of help for homeowners, reacted with outrage, saying that helping homeowners in such a way would be, in the words of Sen. Bob Corker (R-TN), “completely egregious“:

Republican Senators Orrin Hatch of Utah and Bob Corker of Tennessee criticized the Federal Reserve for overstepping its role by making policy recommendations on how the U.S. government should try new ways to spur the housing market.

Hatch, the top-ranking Republican on the Senate Finance Committee, said the housing study sent by Chairman Ben S. Bernanke to Congress last week, along with recent Fed speeches, “intrudes too far into fiscal policy advice and advocacy.” Corker said New York Fed President William C. Dudley’s suggestion last week that Fannie Mae and Freddie Mac reduce the principal of the loans they guarantee was “absolutely egregious.”

Reducing principal is one of the most effective ways to keep troubled borrowers — many of whom are underwater or behind on their mortgage payments through no fault of their own — out of foreclosure, and it would also boost the economy. A report from the The New Bottom Line — a coalition of community, faith-based and labor groups — found that “if banks wrote down all underwater mortgages to market value and refinanced the homeowners into 30-year, fixed-rate loans at current market interest rates, that would pump $71 billion into the national economy.”

The Senate GOP, instead, derides the idea, after filibustering an Obama administration nominee because he may have been sympathetic towards principal reductions. But, perhaps that’s not surprising from a party that thinks foreclosure prevention efforts simply “need to stop.”

Alyssa

Quote Of The Day

“I’m fat. That’s not lost on us…Everyone on TV’s 78 and a half pounds, so we have to address it.” -Billy Gardell

Justice

Missouri GOP Pushes Alabama-Style Bill Requiring Schools To Check Students’ Immigration Status

In the past year, federal judges, many of them conservative, have blocked parts of radical anti-immigrant laws in Alabama and Arizona, including provisions that require carrying proof of lawful residency and mandate that public schools check the immigration status of all students before they can enroll.

The Obama administration has also challenged sections that force state law enforcement officials to determine the immigration status of anyone they stop or arrest if officials have reason to believe that the individual might be undocumented — a recipe for racial profiling.

But Missouri Republicans apparently didn’t the memo. They’ve introduced a copycat bill that includes the most outrageous — and unconstitutional — parts of the Alabama and Arizona laws:

Missouri could be the next battleground in a nationwide fight over tougher immigration laws.

State Sen. Will Kraus, a Lee’s Summit Republican, is sponsoring a bill that would mandate that all public schools verify the immigration status of enrollees. It also would require law enforcement officers to check immigration status on all stops when they have reasonable cause, and create a state misdemeanor for not carrying proper citizenship documentation. [...]

“This bill is a really bad idea,” [Vanessa Crawford, executive director of Missouri Immigration and Refugee Advocates] said. “This would force police and school officials to act as immigration agents, and would result in innocent people facing harassment. And passing a law that will undoubtedly end up in court is irresponsible.”

By ignoring recent rulings on anti-immigrant laws, Missouri Republicans seem to be spoiling for a fight. The Supreme Court recently announced that it will determine whether Arizona’s measure violates federal law.

The Court has already ruled that it’s unconstitutional for states to deprive undocumented students of an education. The Alabama law has effectively done just that, successfully intimidating immigrant families into withdrawing their children from school.

Economy

Warren Buffett Challenges Republicans To Put Their Money Where Their Mouth Is On Deficit Reduction

Billionaire investor Warren Buffet is telling congressional Republicans it’s time to put up or shut up on deficit reduction.

For the past year, Republicans have doggedly insisted that the nation’s deficit is a crisis that eclipses high unemployment. But they’ve only been willing to reduce the deficit through drastic spending cuts — and have denounced Buffett for saying tax increases on the rich need to be part of the solution.

Last fall, Sen. Mitch McConnell (R-KY) said that if Buffett was feeling “guilty” about paying too little in taxes, he should “send in a check to the Treasury. Now, Buffet says he’s willing to do just that to pay down the national debt — if Republicans will do their part too:

The billionaire investor, in the new issue of Time magazine, says he will donate $1 to paying down the national debt for every dollar donated by a Republican in Congress. The only exception is Senate Republican leader Mitch McConnell – for whom Buffett said he would go $3-to-$1.

The idea stems from a New York Times opinion piece Buffett wrote last August in which he said the rich ought to pay more taxes. It sparked an instant controversy, with some Washington conservatives calling on the 81-year-old “Oracle of Omaha” to voluntarily pay extra.

It restores my faith in human nature to think that there are people who have been around Washington all this time and are not yet so cynical as to think that can’t be solved by voluntary contributions,” the Berkshire Hathaway CEO told Time…

McConnell certainly has the resources to meet Buffett’s challenge — he’s worth at least $10 million. Buffett went on to say that the U.S. needs a system that “takes very good care” of citizens who work hard but don’t happen to make millions in the financial sector.

Health

480 State Lawmakers To File Amicus In Support Of Obamacare

In the last several days, 26 states, the National Federation of Independent Business, and 36 Republican senators, filed amicus briefs before the Supreme Court describing the Affordable Care Act’s individual mandate as a coercive provision that undermines the 10 Amendment rights of the states and characterizing Medicaid expansion as an illegal “commandeering” of states’ autonomy.

Tomorrow, over 480 state legislators from all 50 states plan to respond to these charges with an amicus brief of their own. The group will contend that the ACA complies with the Constitution’s Commerce and Necessary and Proper clauses and that “the idea that the federal government does not have the power to address a national problem such as the health care crisis has no basis in the Constitutions text and history”:

Ignoring this carefully calibrated constitutional balance of power, the court below and the State officials challenging the Affordable Care Act have promoted a vision of a starkly limited federal government…This deeply flawed vision has no basis in the Constitution’s text and history. …U.S. Const. art I, § 8, cl. 3… does not limit “commerce” to existing economic activity or trade, nor does the text’s use of “regulate” imply a power to prohibit but not require certain conduct. The lower court’s vision of a Commerce Clause power strictly curtailed by tests of self-initiated activity thus cannot be squared with the Clause’s text or original meaning and purpose.

Similarly, the lower court’s interpretation of the Necessary and Proper Clause is wholly unsupported by constitutional text and history. Far from the cramped vision of the Clause suggested by the court below, which would permit Congress to regulate only by using means that are themselves covered by the Commerce Clause (effectively rendering the Necessary and Proper Clause a nullity), the grant of power to “make all Laws which shall be necessary and proper for carrying into execution” constitutionally granted powers was intended to be sweeping.

NEWS FLASH

Former Girl Scout Calls For Cookie Boycott Over Inclusion Of Transgender Child | A former Girl Scout in California is “hoping to spearhead a national boycott of Girl Scout cookies after the organization’s controversial decision to admit a 7-year-old transgender child to a Colorado troop this past fall,” World Net Daily reports. “Right now, Girl Scouts of the U.S.A…is not being honest with us girls, its troops, its leaders, its parents or the American public,” she says. “Girl Scouts describes itself as an all-girl experience. With that label, families trust that the girls will be in an environment that is not only nurturing and sensitive to girls’ needs, but also safe for girls.” Watch it:

Alyssa

‘The Game’ Doubles Down On Melodrama, Eliminates What Fans Loved

By Tyler Lewis

 

Over at my own blog, I review the fifth season premiere of The Game, which aired last night on BET:

“If Mara Brock Akil and BET want to make a black nighttime telenovela where the cast never interacts with one another, where the relationships established in the first three seasons are thrown out in favor of separate, unconnected, over-the-top storylines for each of the five leads, then it should decide on what kind of show that is and settle on a consistent tone.

Because I do think the ship has sailed on any hope that The Game will be the show that folks wanted to be brought back. I think the audience has accepted it (and, likely, moved on). The producers should commit to it.”

It just seems odd to me that fans resurrected a show – a black show – only to have the producers of that show gut everything about the show that made fans want it back in the first place. And by “odd,” I mean “wrong.”

The Game was a sitcom with real heart and humanity in its first three seasons. It was a show that was incredibly funny, but also managed to create six characters that struggled and matured in believable ways over the course of those seasons. The plotting always flowed from the characters.

But on BET, the show is shallow and tonally inconsistent, and most of the characters have been flattened. It uses a drug-addicted model to ineffectively humanize and save Malik Wright, but doesn’t even bother to make her a three-dimensional character that the audience can care about. It reduces one of its most intriguing and sympathetic characters, Tasha Mack, to the very thing – ghetto fabulous loudmouth – she was initially created to subvert, even as it finds new and intriguing ways of deepening self-hating, cheap Jason Pitts (providing Coby Bell with the opportunity to prove yet again that he’s the show’s greatest, most versatile, asset). And it forgets almost entirely that the male characters are football players since we never see them at practice or in the locker room anymore.

I don’t know if BET knows that its version of The Game plays like everyone involved has contempt for the audience that saved it, but…well, it does now. This is not the show that fans wanted back and worse, in its new incarnation, it doesn’t even work on its own terms.

Security

Bolton Calls Iran Assassination And Sanctions ‘Half-Measures,’ Calls For ‘Attack’ On Iran

Wreckage of late Iranian nuke scientist's car

Former Bush administration ambassador to the U.N. John Bolton said today on Fox News that the killing of an Iranian scientist and sanctions against Iran constitute only “half-measures” in the quest to stunt Iran’s nuclear ambitions. Though he conflates them, the two tactics aimed at slowing Iran’s nuclear progress are actually very different. One set of activities — sanctions — are overt and have international legitimacy. The measures against Iran’s nuclear and missile programs pushed through the U.N. Security Council by the Obama administration are among the few tactics which have been shown to slow Iran’s progress.

Covert work can be broken up into several different tacks as well. While assassinations are considered clearly illegal under international humanitarian law, other activities fall in murkier territory (take, for example, the Stuxnet computer virus unleashed on Iranian nuclear facilities reportedly by Israel and the U.S.). That’s probably why U.S. Secretary of State Hillary Clinton came out today and disavowed the attack on an Iranian nuclear scientist. A State Department statement added: “The United States strongly condemns this act of violence and categorically denies any involvement in the killing.”

Openly contemptuous of international law and a longtime proponent of war with Iran, Bolton’s only objection to the killing of Iranian scientists seems to be that it’s not enough for him:

BOLTON: Well, I think all of these efforts are doomed to failure and in fact the consequence of increasing the sanctions is simply to persuade Iran to finish — to get on with the business of finishing its nuclear weapon, putting it in the position of North Korea which we know has exploded two nuclear devices, which makes it a lot less likely — in fact, probably makes it impossible to believe we would attack North Korea because of the fear of nuclear retaliation.

So I think this is going to a very, very difficult year and I think, honestly, that half-measures like assassinations or sanctions are only going to produce the crisis more quickly. The better way to prevent Iran from getting nuclear weapons is to attack its nuclear weapons program directly, break their control over the nuclear fuel cycle.

Watch the video:

What Bolton won’t tell you here is that sanctions, as mentioned before, have actually helped slow Iran’s nuclear progress — not accelerate it. A strike would merely delay the program, probably by no more than three years. Furthermore, a Israeli thinktank’s simulation exercise found that a Iranian nuclear test explosion does not, as Bolton claims, preclude a strike to delay further progress toward a viable, operational nuclear weapon.

Climate Progress

RealClimate Is Alarmed by Arctic Methane, Should You Be?

RealClimate Commenter:  Methane alarmism will not be dissuaded by any reasonable means. But nice try David. ;)

Response [by geophysicist David Archer]: Well, to be honest, sometimes I do get spooked myself. There is a lot of carbon up there. David. PS: On further reflection, I don’t think I want to be fighting being alarmed about methane bubbles in the Arctic. I am alarmed too, but perhaps I’m alarmed for a longer time frame than some. David]

Whether or not you should be alarmed by Arctic methane depends on your definition of “alarmed.”  And it depends on how much you follow the other areas of climate science, many of which are, for me, considerably more “alarming” (see “An Illustrated Guide to the Science of Global Warming Impacts: How We Know Inaction Is the Gravest Threat Humanity Faces“):

mit-wheels.gif

Something truly alarming (via M.I.T.):  Inaction (our current “no policy” strategy) eliminates most of the uncertainty about whether or not future warming will be catastrophic.  Aggressive emissions reductions — fatally rejected by deniers, the breakthrough bunch, and the ignorati — dramatically improves humanity’s chances.

But I’m getting ahead of myself.   Concern about methane emissions has risen in recent years because methane levels have been risen in recent years after a decade of little growth and because there have been reports of massive methane plumes of the Arctic coast and because the carbon-rich permafrost is thawing.

Fortunately, the best NOAA analysis “suggests we have not yet activated strong climate feedbacks from permafrost and CH4 hydrates,” a finding Climate Progress first reported 3 years ago.

But much more rapid ice loss in the Arctic than expected, accompanied by rapid permafrost warming, has convinced leading experts now say that frozen carbon is likely to start being released at a large-scale in the next few decades –  some of it in the form of methane, a far more potent greenhouse gas than CO2 — causing 2.5 times the warming of deforestation.  That would complicate any efforts by humanity to reduce emissions and avert multiple, simultaneous catastrophes (see below).  This largely unmodeled amplifying carbon-cycle feedback is, obviously, worrisome and even alarming.

As an aside, the word “alarm” literally meant “a call to arms” — as in, there is imminent danger folks, saddle up.  So we have “alarm” defined as “a sudden fear caused by the realization of danger” or “a warning of existing or approaching danger.”

An another aside, the do-little crowd and their enablers/stenographers — you know who they are — have two big tricks to poo-pooh “alarmists.”  First, they attack alarmists as predicting “certain doom,” pointing out that the models are filled with uncertainty and predict a large range of impacts.  But they don’t tell you that their preferred course of action — doing very little — cuts out most of the uncertainty, sharply narrows the impact range, and thus dramatically increases the probability of the catastrophe (see MIT’s wheel of misfortune above).

Second, the snooze button pushers attack alarmists for supposedly saying we are experiencing a real-time catastrophe, but they are really hiding behind the lags in the energy and climate system.  The climate realists are alarmed not because the doom hits in the next few years, but because if we don’t act aggressively in the next few years, the “doom” becomes exceedingly difficult to avoid.

In short, the do-little crowd and their enablers/stenographers have won the day politically, which means the alarmists have “won the day” scientifically.  Put another way, anyone who isn’t alarmed right now, simply doesn’t know what they are talking about.  As but one piece of proof:  The historically staid and conservative International Energy Agency has joined the ranks of the “alarmists” — see IEA’s Bombshell Warning: We’re Headed Toward 11°F Global Warming and “Delaying Action Is a False Economy.”

The notion it’s alarmist to say that where we are headed is catastrophic is, well, just laughable … or cryable.  As the chief economist for the IEA said in November about the fact that the world is on pace for 6°C (11 F) warming “Even School Children Know This Will Have Catastrophic Implications for All of Us.”

Darn you alarmist school children!

So we should retire the term “alarmist” and its variations.  We are climate realists — or climate hawks, if you prefer.  The snooze button pushers, well, they are still asleep at the wheel, which I wish were a mixed metaphor, but I guess those warning in the ads for Ambien are right — those pill-popping politicians and pundits driving the national and global SUV are sound asleep but don’t know it.  And that’s not even counting the disinformers, who I guess in this extended metaphor are working desperately to unplug the alarm clock or encase it in tar sands.  I digress.

Recently, geophysicist David Archer, an expert on the carbon cycle and methane hydrates, wrote three pieces on Arctic methane for the must-read website RealClimate.  The first is titled, “Much ado about methane,” though it would have been better titled “Much ado about methane hydrates.”  The second is “An Arctic methane worst-case scenario.” The third post discusses a model he created that you can play around with if you want an even worse case or a better one.

I am generally a fan of analyzing worst-case scenarios for two reasons.  First, in real life, individuals base a considerable amount of their planning and spending on worst-case scenarios (fire burning down your house,  catastrophic  healthcare problem) and so do governments:  Just think about how much money and material and manpower the U.S. has devoted since 1945 over the possibility of a Russian nuclear attack or tank invasion of West Europe or the need to fight two wars  simultaneously, and so on.  Second, many of those pesky worst-case scenarios somehow seem to keep happening where humans are involved — Fukushima being a classic example — which isn’t a big surprise given that ignoring warnings, which are sometimes called alarms, pretty much guarantees things are going to be worse than folks thought.

So here is what Archer finds in his worst-case scenario — if “the Arctic started to degas methane 100 times faster than it is today”:

Read more

Education

South Carolina Has The Nation’s Second Worst Graduation Rate — Will The GOP Offer Solutions?

With the New Hampshire primary now secured by Mitt Romney, the GOP presidential candidates are setting their sights on South Carolina, the nation’s first southern primary. And in one big respect, South Carolina is significantly different from the two states that preceded it in casting votes for the GOP nominee: its high school graduation rate is far lower.

In 2010, New Hampshire had the ninth highest high school graduation rate in the country at 83.3 percent. Caucus state Iowa was third, with 86.4 percent. South Carolina, however, is 49th, at 61.9 percent.

What would the Republican candidates do about this problem? Not very much, besides unite in their desire to abolish the Education Department entirely. As Patrick McGuinn, an associate professor of political science and education at Drew University, noted, “the common emphasis on a diminished federal role in K-12 poses a challenge for the GOP presidential contenders hoping to push their own sweeping education proposals and stand out on the issue.” Forbes Magazine noted following a GOP primary debate in Dartmouth that “not one candidate made the obvious connection between an improved economy and ending the dropout epidemic.”

In 2010 alone, dropouts cost the nation $4.5 billion in lost earnings and tax revenue. In just California, “college dropouts are losing nearly $15 billion in earnings over their work lives, costing the federal government more than $3 billion in lost income taxes.” So far, the GOP has had precious little to say about the problem; South Carolina, with the second worst dropout rate in the nation, should provide the perfect venue for them to change that.

Older

Switch to Mobile
ThinkProgress Signup Overlay Skip and Continue to ThinkProgress Skip and Continue to ThinkProgress

Sign Up