Our guest blogger is Sen. Chris Dodd (D-CT), chairman of the Senate Committee on Banking, Housing, and Urban Affairs.
As you are no doubt aware, Senator Patty Murray (D-WA) and I sent a letter to President Bush a little over a week ago calling for Housing and Urban Development Secretary Alphonso Jackson’s resignation. Earlier today he announced his resignation. While a shift in the Administration at such a critical time is never optimal, I do believe it was the right thing to do.
In this time of economic crisis and instability in the housing market, it is more important than ever that we have a HUD Secretary who is fully committed to addressing the challenges facing our economy. Given that Secretary Jackson is currently the subject of ongoing investigations into alleged misconduct at HUD, it became clear to me over the past few weeks and months that these investigations have been a distraction at a time when the HUD Secretary must devote his undivided attention to helping American homeowners.
Now, more than ever, we need a HUD Secretary who can devote his full energy to solving our nation’s housing crisis. It is my hope that the new HUD Secretary the President appoints will be ready and anxious to tackle the problems in our housing market through collaboration with the Senate Banking Committee and other federal entities. We need all hands on deck to address the problems of the mortgage industry and the Americans whose budgets are being stretched to the limit by rising mortgage payments and cost-of-living increases. New leadership at HUD will help renew our focus on the country’s economic problems, and aid our attempts to restore confidence in the housing market.
Thanks again for the opportunity to share my thoughts with you here today, and I look forward to contributing in the future.
– Chris Dodd
Our guest blogger is James Kvaal, Domestic Policy Advisor at the Center for American Progress Action Fund.
Inside the Beltway, the housing crisis is finally hitting home: the value of Ben Bernanke’s home has fallen by $250,000 in the last few years.
Maybe that’s why Bush officials are finally considering steps to rescue struggling homeowners. According to today’s Washington Post, their idea is to move families into new, more affordable mortgages backed by public funds, similar to proposals from Rep. Barney Frank and the Center for American Progress.
Details aren’t available for a week or longer, and the plan is expected to help far fewer families than the 2 million reached by the Frank plan. Still, it’s an encouraging sign the Bush officials are finally recognizing the need to get beyond conservative ideology.
So when will John McCain get on board? Last week Sen. McCain pleaded with lenders to voluntarily help homeowners – like Bush officials have tried unsuccessfully for more than six months. If he stays on his current schedule, we can expect him a real housing plan sometime around September.
Speaking to the conservative Young America Foundation at George Washington University last Friday, Karl Rove adamantly defended John McCain’s remark that the U.S. should stay in Iraq for 100 years, claiming that McCain’s been taken out of context:
What Senator McCain was talking about was the projection of American power to maintain stability in a dangerous and difficult part of the world. And he was precise and detailed in his explanation.
Watch it:
The conservative establishment has rallied around a similar interpretation of McCain’s “100 years” remark. In the Washington Post last Friday, Charles Krauthammer called the claim that McCain wants to fight in Iraq for 100 years “a dirty lie.” Krauthammer wrote that Iraq would become, like neighboring Kuwait, a place from which the United States currently “projects power and provides stability for the entire Gulf and for the vulnerable U.S. allies that line its shores.”
In this morning’s New York Times, Bill Kristol praised McCain for choosing “to tell Americans the hard and unpopular truths that we’ll be there [in Iraq] for a while, and that there’s no sacrifice-free path to defeating our enemies and securing a lasting peace.”
National Review’s Kathryn Jean Lopez suggested that McCain’s remark was “sensible,” and that the attacks indicate that Democrats “don’t get the war we’re in.”
Of course, the opposite is true. It’s Karl Rove who doesn’t get that we weren’t mired in a German civil war five years after the end of World War II. It’s Charles Krauthammer who doesn’t get that Kuwait is not Iraq, and that if we’d spent years bombing their country and kicking down their doors in the middle of the night, the Kuwaitis would want us to leave, just as the Iraqis do. And it’s John McCain who doesn’t get that his neoconservative vision of using Iraq as a base from which to project U.S. power is a fantasy, because he doesn’t get that any Iraqi government that agrees to a hundred-year U.S. presence in Iraq will never be seen as legitimate by the Iraqi people, and thus will require the presence of U.S. forces to ensure its government. But we already know that “that’s fine” with John McCain.
McCain has tried to explain his 100 years remark by saying that “the war will be over soon“:
…Although the insurgency will go on for years and years and years. But it’ll be handled by the Iraqis not by us. And then we decide what kind of security arrangement we want to have with the Iraqis.
It’s unclear, exactly, how McCain differentiates between “the war” and “the insurgency,” or when he thinks the insurgency will end so that the hundred years of peace will begin.
Today, former Vice President Al Gore and his organization, the Alliance for Climate Protection, launched a $300 million, three-year campaign with the goal of “educating people in the US and around the world that the climate crisis is both urgent and solvable.” The Washington Post reports that the “We” campaign “aims to enlist 10 million volunteers through a combination of network and cable commercials, display ads…and online social networks.” Gore told 60 Minutes he and his wife Tipper had donated the Nobel Peace Prize money and all the profits from his documentary, “An Inconvenient Truth,” to this new campaign.
The campaign’s website, wecansolveit.org, includes action alerts, blogger outreach, and the message of a “clean energy economy” fueled by energy efficiency and renewable energy.
The campaign will launch TV advertisements later this week that “will team up offbeat celebrity couples who may not have much in common but share a belief that it is important to address climate change,” including Speaker of the House Nancy Pelosi (D-CA) and former Speaker Newt Gingrich, Al Sharpton and Pat Robertson, and the Dixie Chicks and Toby Keith. Sign up for the campaign, and watch its debut ad:
The Alliance’s spending of $100 million per year on a public advocacy campaign may be without precedent. However, the public is being bombarded with propaganda from the industries whose emissions are causing global warming and thus have the most to lose — or gain — from how the United States regulates greenhouse gas pollution. Here’s a look at what Gore’s campaign is up against:
Our guest blogger is Robert Gordon, a Senior Fellow at the Center for American Progress Action Fund.
In a nice sequel to Bob Novak’s proposal that John McCain cut the payroll tax, Bill Kristol today writes that McCain might “suggest taxing ‘carried interest’* as ordinary income, if only to watch the fur fly among hedge-fund fat cats.”
This is a good idea that conservatives hated less than a year ago. Grover Norquist said “it’s crystal clear” that taxing carried interest “violates the Federal Taxpayer Protection Pledge.” Paul Weyrich called the idea “a huge tax increase.” And the Club for Growth said it was a “tax hike” and a “war on prosperity.”
John McCain has waffled on “no new taxes,” but he has regularly said that he won’t propose any tax hikes. Under the standard conservative definition, this is a tax hike. Yet Kristol is urging him to consider it…. probably because McCain’s true conservative tax plan will be spectacularly unappealing for most voters.
More gymnastics to come.
*Carried interest is the share of profits that is earned by a hedge fund manager without a corresponding ownership stake in the hedge fund. Carried interest is usually the manager’s core compensation, but it is taxed at the lower capital gains rate, not the ordinary income rate.
Today John McCain posted a new television ad featuring his promise of “Middle Class Tax Relief.” Watch it:
Here’s a closer look at the details of McCain’s tax relief plan:
– Provides only 9 percent of its benefits to the bottom 80 percent of taxpayers
– Provides 58 percent of its benefits to the top 1 percent
– Would require, if paid for, massive cuts in benefits for middle-class taxpayers
So…what middle class tax relief!??!
With U.S. forces joining the fight against the Mahdi Army in Baghdad, the Bush administration’s current Iraq policy is to back the Iraqi political faction (led by Prime Minister Nouri al-Maliki and Abd al-Aziz al-Hakim) most closely allied to Iran against the faction of Muqtada al-Sadr. Sadr’s nationalist credentials have proved a difficult hurdle for former exiles Maliki and Hakim, and their parties haven’t been able to establish much political support in Iraq both because of the Iraqi government’s continuing corruption and failure to deliver basic services, and because they are seen as puppets either of Iran or the U.S., or both. The U.S. likes them, though, because they bless the U.S. presence in Iraq. And the U.S. dislikes Sadr because he has, since the 2003 invasion, consistently demanded a U.S. withdrawal.
As to why the Maliki government decided that now was the time to go against Sadr’s loyalists, it might have something to do with Dick Cheney’s visit to Iraq a few weeks ago. Here’s why:
On February 13, after a long, bitter debate, the Iraqi parliament passed a package of three laws dealing with the budget, amnesty for detainees, and a provincial powers law that “paved the way for elections in October.” The legislation was hailed in the U.S. media as a major political breakthrough.
On February 27, Iraq’s three-man presidency council then vetoed the provincial powers legislation, putting a serious crimp in the “political progress” narrative. The person who insisted on the veto was Shia Vice President Abdul Mehdi, a member of ISCI, because his party understood that they were/are not yet in a position to defeat the Sadrists (or Fadhila, a Sadrist offshoot powerful in and around Basra) in elections, and stood to lose big.
On March 17, Cheney made a surprise visit to Iraq, meeting with Maliki and Hakim and stressing political unity.
On March 21, the presidential council reversed its veto of the provincial powers law.
On March 25, Iraqi forces begin moving against Mahdi Army elements in Basra.
Given Maliki’s dependence on the U.S. for the survival of his government, I’m skeptical of claims by the Bush administration that “Maliki decided to launch the offensive without consulting” them. At the risk of offering a conspiracy theory, it’s very possible that, in exchange for withdrawing the veto and giving Bush something which he could present to Americans as “progress in Iraq,” Cheney gave a nod to Maliki and his ISCI allies to try to get by force what they knew they could not get by ballot: Victory against the Sadrists.
That’s not working out so well. The last four days of intense fighting have shown just how tenuous were the successes of the surge, and how dependent these successes were upon the willingness and ability of Muqtada al-Sadr to keep his movement in check.
A February report by the International Crisis Group correctly predicted this outcome:
The U.S. response [to Sadr’s cease-fire]– to continue attacking and arresting Sadrist militants, including some who are not militia members; arm a Shiite tribal counterforce in the south to roll back Sadrist territorial gains; and throw its lot in with Muqtada’s nemesis, ISCI – is understandable but short-sighted. The Sadrist movement, its present difficulties aside, remains a deeply entrenched, popular mass movement of young, poor and disenfranchised Shiites. It still controls key areas of the capital, as well as several southern cities; even now, its principal strongholds are virtually unassailable. Despite intensified U.S. military operations and stepped up Iraqi involvement, it is fanciful to expect the Mahdi Army’s defeat. Instead, heightened pressure is likely to trigger both fierce Sadrist resistance in Baghdad and an escalating intra-Shiite civil war in the south.
Despite Bush’s praise for Prime Minister Maliki’s “bold decision…to go after the illegal groups in Basra,” presenting this as “the Iraqi government against sectarian militias,” is wrong. This is another episode in an intra-sectarian conflict that has gone on since 2003, with different Shiite militias competing for the spoils on behalf their respective political machines.
As Eric Martin points out, despite Maliki’s claim that his goal is to rid Basra of militias, Iraqi security forces have focused on one militia: The Mahdi Army. ISCI’s militia, the Badr Organization, (which was founded in Iran and trained by the Iranian Revolutionary Guard Corps) has largely incorporated itself into the Iraqi Security Forces, and has elements acting independently as well as under the aegis of the Iraqi state, both of which are fighting together in Basra against the Mahdi Army. This is clearly a(nother) misguided attempt to crush Sadr, and, it seems likely that, as in previous episodes, he will win simply by not losing.
UPDATE: Ilan Goldenberg is skeptical of the Cheney Theory, pointing to the Washington Post’s note that “Maliki decided to launch the offensive without consulting his U.S. allies, according to administration officials.” Ilan writes:
Still, the reason I don’t buy this theory is that the timing makes no sense whatsoever from a domestic political perspective. If there was a quid pro quo, the Bush Administration would have asked for a waiting period until after the Petraeus Crocker testimony. Why go with such a high risk operation a week before the progress report to Congress? Makes no sense. This Administration is pretty incompetent about a lot of things, but for the most part they seem to understand political timing.
Eric Martin is skeptical of Goldenberg’s skepticism and writes:
It is…entirely possible that the adminstration official quoted in the article was telling the truth…as she/he knew it. There has been a perculiar pattern of secrecy within the Bush administration (not just vis-a-vis outsiders) such that the Secretary of State might be pursuing some policy without telling the Secretary of Defense or Vice President, and vice versa (with the POTUS included on a need to know basis - which is rarer than it should be).
Our guest blogger is James Kvaal, Domestic Policy Advisor at the Center for American Progress Action Fund.
Later today, Sen. John McCain (R-AZ) will visit the Petroleum Club of Denver to pick up a stack of cash for his presidential campaign. He should get a warm welcome from the oil and gas executives who show up.
The centerpiece of Sen. McCain’s plan to stimulate the economy — actually, the whole plan — is large tax cuts for corporations. It would deliver $3.8 billion in tax cuts to the five largest American oil companies, according to an analysis released today by the Center for American Progress Action Fund.

The analysis only looked at one of the McCain corporate tax breaks: the proposal to cut the top corporate tax rate from 35 percent to 25 percent. Read the whole analysis here.
Tonight Sen. John McCain (R-AZ) is flying into Denver to scrounge up cash at a $25,000 apiece “roundtable” followed by a $1000-a-head ($2300 with a “Photo Opportunity”) fundraiser at the Denver Petroleum Club. McCain’s choice of venue is singularly appropriate, as his campaign is being funded and run by Big Oil lobbyists. As global warming, skyrocketing oil prices, and a failing economy create an interlinked energy crisis, McCain has repeatedly failed to put the people’s interests before those of the fossil-energy industry.
Since launching his campaign for president, Sen. McCain has talked tough about Big Oil but has been funded by their petro-dollars. In a 2007 Iowa speech, McCain described his “energy strategy” for America, with “straight talk” about “petro-dictators,” big oil subsidies, and energy lobbyists:
As President, I’ll propose a national energy strategy that will amount to a declaration of independence from the risk bred by our reliance on petro-dictators and our vulnerability to the troubled politics of the lands they rule. That strategy won’t be another grab bag of handouts to this or that industry and a full employment act for lobbyists. Yes, that means no ethanol subsidies. But it also means no rifle-shot tax breaks for big oil.
But is candidate McCain himself reliant on Big Oil? Since first running for the Senate in 1986, John McCain has received at least $549,712 from the oil and gas industry. More than half — $291,685 — has come in the last two years. Moreover, John McCain’s own campaign is a “full employment act for lobbyists” who rely on “petro-dictators.”
– McCain’s Senior Adviser Lobbies For Foreign Oil Interests. Charlie Black (lobbying firm: BKSH), McCain’s senior campaign adviser, is a registered lobbyist for two Russian oil companies — Yukos Oil and Occidental International Corporation — and his lobbying firm was hired in 2005 by the China National Off-Shore Oil Corporation. [Roll Call 7/18/05, Senate Lobbying Disclosure Records]
– McCain’s “Consigliere” a Top Lobbyist for Saudi Arabia. Former Texas representative Tom Loeffler (The Loeffler Group), a top Bush fundraiser now in charge of McCain’s fundraising efforts, received approximately $900,000 a year from the Saudis to lobby Congress and “arrange meetings between Saudi officials and such senior Bush administration officials as Karl Rove.” [DNC 4/23/07]
– McCain’s Campaign Liaison to Congress a Million-Dollar Big-Oil Lobbyist. John Green (Ogilvy Government Relations) — the “full-time liaison between McCain’s presidential campaign and Republicans in the House and the Senate” — has made over $7.6 million dollars since 1999 lobbying for petro-industry giants such as Amerada-Hess, Chevron Texaco, the American Petroleum Institute, Reliant Energy, PJM Interconnection and First Energy. [Politico 3/4/08, Senate Lobbying Disclosure Records]
– Fossil Fuel Lobbyists Everywhere in the McCain Campaign. Susan Nelson, McCain’s National Finance Chair worked at the Loeffler Group for Saudi Arabia. Frank Donatelli, McCain’s RNC liaison to the Republican Party, has lobbied for ExxonMobil, Dominion, and Eastman Chemical. Jerry Kilgore, co-chairman of McCain’s Virginia campaign, has lobbied for Shell Oil and coal company Alpha Natural Resources. [Washington Post 3/12/08, O’Dwyer’s 8/9/06, Media Matters 2/26/08, Senate Lobbying Disclosure Records]
Although Candidate McCain may have made a “declaration of independence” on the campaign trail, Senator McCain’s own actions have kept “rifle-shot tax breaks for big oil” and “reliance on petro-dictators” as the law of the land.
– McCain Voted Against Reducing Dependence on Foreign Oil. In 2005, McCain voted against legislation calling on the President to submit a plan to reduce foreign petroleum imports by 40 percent. [Senate Roll Call Vote #140, 6/16/05; DNC 6/22/07]
– Candidate McCain’s “Zero” For Energy Future, Billions For Big Oil. Since launching his campaign for president in 2007, Sen. McCain has skipped out on every key environmental vote the Senate has considered, earning him a zero on the League of Conservation Voters scorecard this session. In one such instance, his absence killed the rollback of billions of dollars in oil subsidies for renewable energy investment. [LCV 2008]
– McCain’s Absence Allows GOP to Filibuster Oil-For-Renewables. By a roll call vote of 59-40 on December 13, 2007, Senate Democrats failed to muster the 60 votes needed to prevent a filibuster threatened by Republicans of compromise energy legislation with an oil-for-renewable tax package. The tax package rolled back $12.7 billion in tax breaks on the oil and gas industry to invest in renewable energy tax credits. Sen. John McCain, on the campaign trail, was the one senator not voting. [CQ 12/12/07] [Vote #425