Popular Culture (Music) 20120127: A Brief History of The Who. 1975

by: Translator, aka Dr. David W. Smith

Fri Jan 27, 2012 at 20:59:10 PM EST

The most significant events of 1975 were the release of the motion picture Tommy, the release of The Who by Numbers, and the beginning of a huge tour of Europe, the UK, and North America.  Now, there were certainly some problems associated with all three of these events, but 1975 turned out to be a pretty good year for them.

However, Townshend was not a really good frame of mind for much of the year.  He was very unhappy with his place in the band and whether or not there even should be a band called The Who, at least with him in it.  It is sort of an interesting turn of events that kept them together, and there is more on that later.

Twitter Boycott

by: ek hornbeck

Fri Jan 27, 2012 at 17:02:08 PM EST

Twitter Allows for Censorship of Tweets in Individual Countries
By: David Dayen, Firedog Lake
Friday January 27, 2012 10:15 am

I think we should definitely be concerned that Twitter is bowing to pressure and allowing for the censorship of tweets in individual foreign countries.
...
I guess they're selling this as an advance. But really it's a way for countries to censor content inside their borders, without the messiness of having to kill the entire Internet, like they did in Egypt briefly during the uprising.

Twitter does plan to share the content censored at Chilling Effects. And the fact that the rest of the world can see the tweets means that someone can bear witness. But this unquestionably makes censorship easier in individual countries. I don't know how you could say otherwise.

Twitter faces censorship backlash
Charles Arthur, The Guardian
Friday 27 January 2012 07.19 EST

The company has insisted that it will not use the gagging system in a blanket fashion, but would apply it on a case-by-case basis, as already happens when governments or organisations complain about individual tweets.

The new system, which can filter tweets on a country-by-country basis and has already been incorporated into the site's output, will not change Twitter's approach to freedom of expression, sources there indicated.
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Twitter insists that the system will only formalise a system it already uses, where tweets are blocked or deleted following full judicial process. Being able to limit tweets to particular countries, rather than blocking them altogether, expands its ability to "let tweets flow".
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Terence Eden, a London-based mobile developer, complained on Twitter: "I don't want to develop on an API which contains a 'withheld_in_countries' field. What's next, a 'for_your_own_good' field?" He added: "I helped develop a Twitter client that Chinese pro-democracy activists used. Guess that's dead now. Thanks, Twitter."

Eden, who describes the move as censorship, said it would be difficult to work around because Twitter will identify which country a user is in by their internet address. "You can spot the censorship, but it's hard to route around it," he said.

This Action Item Breaking-

Twitter users threaten boycott over censorship accusation
Julian Borger and Charles Arthur, The Guardian
Friday 27 January 2012 15.55 EST

"The Tweets must flow", Twitter declared a year ago, and quickly became an instrument of fast-moving revolution across the Arab world, coordinating mass protests in Egypt and sidestepping the state censorship in Syria. But, the microblogging site conceded that the tweets would not flow evenly in every country.

The company was accused of censorship by many users and threatened with a one-day boycott on Saturday after announcing that it could remove tweets in certain countries which have "different ideas about the contours of freedom of expression".
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Jeff Jarvis, the media commentator, said the move set the microblogging site onto the "slippery slope of censorship". "I understand why Twitter is doing this - they want to be able to enter more countries and deal with the local laws," he said. "But, as Google learned in China, when you become the agent of the censor, there are problems there."

Ai Weiwei, the Chinese artist and dissident, put it more simply, posting: "If Twitter starts censoring, I'll stop tweeting".
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The US civil liberties website, Demand Progress, opened a petition declaring: "Twitter's importance as an open platform has been demonstrated time and again this year. We need you to keep fighting for and enabling freedom of expression - not rationalize away totalitarianism as a legitimate 'different idea'."

Elizabeth Warren: "Pats Gonna Spank The Giants"

by: TheMomCat

Fri Jan 27, 2012 at 03:39:53 AM EST

"Mitt Romney pays 14 percent of his income in taxes, and people who get out there and work for a living pay 25, 28, 30, 33 percent. I get it, Mitt Romney gets a better deal than any of the rest of us because he manages to earn his income in a way that has been specially protected for rich folks," said Ms. Warren.

Her assessment of former House Speaker Newt Gingrich was equally critical on his proposed tax policy of reducing everyone's tax rate to 15% and expressed her support of "Warren Buffett rule" that would raise taxes on the wealthiest Americans.

Earlier on Tuesday night with Jon Stewart on Comedy Central's "The Daily Show", she informed Jon that "The Pats are gonna spank the Giants" and addressed tax policy, lobbying, and investment, her signature issues. She opposes cuts in education research as detrimental and the need to invest in the middle class. In Part 2, she goes on to describe the role that government should play in regulating America's private sector.  This is the unedited interview that is only available on line

There are those who are concerned that Warren, a political novice, will compromise her principles to the pressure of Wall St. hawks like Sen. Charles Schumer (D-NY). After watching her dress down Treasury Secretary Tim Geithner during hearings as chair of the five-member Congressional Oversight Panel created to oversee the implementation of TARP, I think she'll be able to stand her ground. I'll forgive her for her support of the Patriots. Nobody's perfect.

He Should've Opened With An Al Green Song

by: TheMomCat

Thu Jan 26, 2012 at 15:39:07 PM EST

He doesn't spare the Republican response for Indiana Gov. Mitch Daniels or the GOP candidates.

Punting the Pundits

by: TheMomCat

Fri Jan 27, 2012 at 12:00:00 PM EST

Thanks to ek hornbeck, click on the link and you can access all the past "Punting the Pundits".

Taylor Marsh; Time for a Tea Party of the Left

President Obama takes his base for granted on issues like the Bush tax cuts, Plan B, and the economy

Where's the Democratic version of the Tea Party? You'd think after Obama's anti-progressive economics, foreign policy, and adoption of Bush antiterrorism policies (though to a more methodically lethal, anti-progressive effect), the Democratic base would have taken the Tea Party template and run with it by now. [..]

When Obama recently decided not to relax restrictions on the emergency contraceptive Plan B, House Democratic Leader Nancy Pelosi gave him a pass, while the Colorado Democratic Rep. Diana DeGette, a member of the so called "Pro-Choice Caucus," stated she was "disappointed." There are never any repercussions for such decisions on the left, while repercussions have defined the Tea Party and its power on the right. [..]

The Democratic base has a passive-aggressive relationship with Obama that resembles a dysfunctional love affair. He has all the power and the base has absolutely none, unless you count the gay and lesbian contingent which was as good a model as the Tea Party on how to get it done. It's not that progressives couldn't have power; it's that they refuse to wield any.

Paul Krugman: Jobs, Jobs and Cars

Mitch Daniels, the former Bush budget director who is now Indiana's governor, made the Republicans' reply to President Obama's State of the Union address. His performance was, well, boring. But he did say something thought-provoking - and I mean that in the worst way.

or Mr. Daniels tried to wrap his party in the mantle of the late Steve Jobs, whom he portrayed as a great job creator - which is one thing that Jobs definitely wasn't. And if we ask why Apple has created so few American jobs, we get an insight into what is wrong with the ideology dominating much of our politics.

Congratulations to Barney Frank and Jim Ready On Their Engagement!

by: TheMomCat

Fri Jan 27, 2012 at 06:05:06 AM EST

Massachusetts US Rep. Barney Frank has announced his engagement to his partner of five years, Jim Ready of Maine. No date has been announced for the nuptials that will take place in Massachusetts which recognizes marriage between same sex couples. Rep. Frank recently decided to not run for reelection to his House seat that he has held since 1981.

We here at The Stars Hollow Gazette and Docudharma extend our heartfelt best wishes to Barney and Jim. May they have a long, happy, healthy and prosperous life together. Blessed Be.

On this Day In History January 27

by: TheMomCat

Fri Jan 27, 2012 at 08:00:00 AM EST

Find the past "On This Day in History" here.

January 27 is the 27th day of the year in the Gregorian calendar. There are 338 days remaining until the end of the year (339 in leap years)

On this day in 1888, the National Geographic Society is founded in Washington, D.C., for "the increase and diffusion of geographical knowledge."

The 33 men who originally met and formed the National Geographic Society were a diverse group of geographers, explorers, teachers, lawyers, cartographers, military officers and financiers. All shared an interest in scientific and geographical knowledge, as well as an opinion that in a time of discovery, invention, change and mass communication, Americans were becoming more curious about the world around them. With this in mind, the men drafted a constitution and elected as the Society's president a lawyer and philanthropist named Gardiner Greene Hubbard. Neither a scientist nor a geographer, Hubbard represented the Society's desire to reach out to the layman.

History

The National Geographic Society began as a club for an elite group of academics and wealthy patrons interested in travel. On January 13, 1888, 33 explorers and scientists gathered at the Cosmos Club, a private club then located on Lafayette Square in Washington, D.C., to organize "a society for the increase and diffusion of geographical knowledge." After preparing a constitution and a plan of organization, the National Geographic Society was incorporated two weeks later on January 27. Gardiner Greene Hubbard became its first president and his son-in-law, Alexander Graham Bell, eventually succeeded him in 1897 following his death. In 1899 Bell's son-in-law Gilbert Hovey Grosvenor was named the first full-time editor of National Geographic Magazine and served the organization for fifty-five years (1954), and members of the Grosvenor family have played important roles in the organization since.

Bell and his son-in-law, Grosvenor, devised the successful marketing notion of Society membership and the first major use of photographs to tell stories in magazines. The current Chairman of the Board of Trustees of National Geographic is Gilbert Melville Grosvenor, who received the Presidential Medal of Freedom in 2005 for the Society's leadership for Geography education. In 2004, the National Geographic Headquarters in Washington, D.C. was one of the first buildings to receive a "Green" certification from Global Green USA The National Geographic received the prestigious Prince of Asturias Award for Communications and Humanity in October 2006 in Oviedo, Spain.

#19

by: ek hornbeck

Thu Jan 26, 2012 at 18:34:40 PM EST

This is an Open Thread.

The Big Fail

by: ek hornbeck

Thu Jan 26, 2012 at 15:43:03 PM EST

Health Care All But Ignored in the State of the Union
By: Jon Walker, Firedog Lake
Wednesday January 25, 2012 7:46 am

If you look at President Obama's State of the Union address as primarily a political speech to kick off his re-election effort, you get a strong sense of what the Obama campaign thinks are his strengths and weaknesses.
...
(I)n the entire 7,000 word speech, there are only two lines, one of which ignores the proposed large expansion of government Medicaid, sandwiched between other unrelated talking points.

I take this as a strong sign that the Obama campaign is basically admitting they simply can't win the politics on Obamacare. It's a sign they believe their best political approach is just to ignore the issue as much as possible in the campaign. The law was unpopular when it passed and is still unpopular to this day. There is no reason to believe it will get any more popular by November.

It's not working-

Number of Uninsured Americans Steadily Increasing
By: Jon Walker, Firedog Lake
Tuesday January 24, 2012 8:58 am

Since President Obama took office the percentage of uninsured people in America has been steadily raising and has now reached a new high.
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I simply don't know how the Administration can successfully campaign on passing a law to expand coverage, when the level of uninsured has increased significantly during Obama's tenure. It is tough for people to see such a law is any form of a real accomplishment when over a year after its passage it hasn't even begun to accomplish its main promises and the exact opposite is taking place in people's lives.

Instead of campaigning on delivering for the American people with his signature legislation, Obama will be forced to explain that even though the insurance situation has gotten worse, voters need to trust his claims that his signature law will eventually improve things in the future.

"Eventual change in the future I hope you believe me about" just doesn't have that nice campaign ring to it.

The decision to delay the start date of the primary expansion in the Affordable Care Act until 2014 should be remembered as one of the most idiotic political and policy decisions ever made. I would argue that if Obama narrowly loses in 2012, it could be the single decision that is most responsible.
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Almost no one will remember the bill's official CBO score come November 2012, but plenty of people will remember they haven't seen any tangle benefits from the law Obama spent a year working on in the middle of an economic and unemployment crisis.

It's deeply, deeply unpopular-

American People Still Really Hate the Individual Mandate
By: Jon Walker, Firedog Lake
Thursday January 26, 2012 8:48 am

Even after almost two years since the passage of the Affordable Care Act, the individual mandate continues to be as unpopular as always. An overwhelming 2/3rds of the county holds an unfavorable view of the mandate and the majority thinks the Supreme Court should strike it down.
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The individual mandate was clearly politically toxic long before the Democrats voted for the law and it has remained politically toxic ever since. The Democrats had both ample warning and ample time to replace it with a less controversial and unquestionably constitutional alternative to encourage individuals to get insurance. Such a modest correction would have been easy to make right before passage to increase support for the law.

I don't know if I can think of another policy that was ever viewed so unfavorably by the electorate yet was still very publicly pushed forward by one party. The disdain this move showed toward public opinion played an important role in driving the conservative energy that allowed the GOP to win a historic victory in the House. The fact that Democrats could have easily avoided this political problem yet actively choose not to makes it one of the greatest unforced political errors in American politics.

Given how many people actually expect the Supreme Court to strike down the mandate, it is hard to guess whether a favorable ruling for the administration would be a political positive or negative for Obama.
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They currently don't think they need a Republican to win the Presidency for the highly unpopular mandate to go away. If the Court doesn't get rid of it as these people expect, that could give many a new incentive to help elect Republicans in order for the GOP to get rid of the mandate with legislation.

Remember, it's all about electoral victory!

Is This A Sell Out?

by: TheMomCat

Thu Jan 26, 2012 at 10:50:08 AM EST

That said, I think that if this unit doesn't move quickly in the evidence they already have, evidence BTW Schneiderman has not had access to, he will drop this like a hot potato and walk. Obama is walking a thin line and realizes that Wall St money alone will not get him reelected. I think Schneiderman is playing on that and hopes to at least hold some of them more responsible and get some better compensation for the homeowners that got screwed along with some regulation of the securitization that caused this all.

I have my doubts. There are better ways to do this, namely appointing a special prosecutor with a budget, investigators and subpoena power. I'm not willing to throw Schneiderman under the bus just yet.

I also think Obama wants him to succeed Holder who said he would leave this year even if Obama is reelected. It's either him or CA's AG Harris.

This was a complete surprise, so I'm being very cautious here, knowing what I do about Schneiderman and who is politically afraid of him. Like after Obama was elected, I'm watching and listening very carefully. Hoping that it is not as bad as it looks.

Eskow's opinion appeared in Huffington Post and he disclosed that he is a fellow at Campaign for America's Future, a left wing strategy center. (This site, however, is not affiliated with any outside organization and opinions expressed here are solely are own.) He gives a good analysis of the reasons for the skepticism of David Dayen, Yves Smith and Duncan Black (Atrios) who said, "It's hard to see the Schneiderman thing as anything but bad news."

Eskow dissects the reasons for the skepticism

The administration's lack of prosecutions has been inexcusable. His administration has refused to prosecute even the most compelling prima facie cases of and has appointed one revolving-door banker after another to key economic positions. Its financial settlements with Wall Street have been disgraceful. For far too long the president pushed the nonsensical argument that "Wall Street and Main Street rise and fall together."

And with an election coming up, bankers can write big checks that most other people can't.

He also points out that if the Department of Justice and the SEC had been doing their jobs in the first place neither the Financial Fraud Task Force or this unit would be necessary. It's hard not to agree with him that committees are "designed for paralysis and gridlock, not efficiency" and that president who promoted ""streamlining government" and "eliminating bureaucracy" would create this committee. Looking back on what happened with health care and financial reform everyone on the left has good cause to be wary of anything that President Obama does at this point and some groups, perhaps shouldn't have been so effusive in their praise of this deal. Eskow, as do I, thinks that the White House, left scrambling after Iowa AG Tom Miller announced that there was no settlement with the banks and presented with citizen petitions that had hundred of thousands of names, reversed course in desperation. Then with the announcement that Schneiderman would "chair" the committee, there was a rush of exuberant relief that Obama was finally showing some signs of supporting the 99%.

As to the possibility that Schneiderman "caved"to pressure from the White House, Eskow backs up what I have said, Schneiderman has too much leverage:

Whatever Eric Schneiderman's goals are, I doubt they include being stigmatized by progressives as a sell-out. His actions over the last few months have not been those of a guy who rolls over easily. It's safe to assume that he wants to prosecute bank fraud, and that this appointment will give him access to the resources he's needed to conduct a thorough investigation. [..]

Consider this: What would it do to the White House if Schneiderman labeled the entire effort a sham, resigned in protest, and continued his investigations alone? He must know he has leverage now, and presumably will use it if necessary.

Escow appeared with Cenk Uygur on "The Young Turks" to discuss the unit and Schneiderman with Cenk's panel:

I certainly don't agree with Michael Shure and what basically is "the lesser of two evils" meme. It can be just as bad with Obama. That said, could this turn out as the cynics are predicting? Sure and if it does we here at Stars Hollow, like Eskow, will say so.

Another good discussion of this new committee was with Delaware AG Beau Biden who appeared with Dylan Ratigan on MSNBC and his other guest real estate analyst, Jack McCabe:

I'm not ready to throw in the towel nor am I going to get on the cheer-leading band wagon. I will wait to see what transpires and keep my fingers crossed for the best outcome for the most people, the 99%.

Punting the Pundits

by: TheMomCat

Thu Jan 26, 2012 at 12:00:00 PM EST

Thanks to ek hornbeck, click on the link and you can access all the past "Punting the Pundits".

Paul Krugman: Rooted in Politics, Austerity Worsens the Greek Tragedy

The Washington Post recently published a heartrending story on the suffering being imposed on ordinary Greeks. So much for the doctrine of expansionary austerity.

I do have a small bone to pick, however. In the article, published on Jan. 10 and titled "In Greece, Fears That Austerity Is Killing the Economy," there's the discussion of why such harsh austerity is being imposed: "European powers, led by fiscally conservative Germany, have been insisting that Greece correct years of mismanagement by enacting swift waves of cuts and other major economic reforms to regain the confidence of investors and ensure the integrity of the euro. Slashing the deficit quickly is essential to ushering in a sustainable future, they have argued, and the resulting social pain is necessary to impress on Greek politicians and society that such excesses should never happen again."

Most of that is right - but not the bit about regaining the confidence of investors - or at any rate, that's not what it's about these days. For it's quite clear that at this point investor confidence is unregainable. Greek borrowing costs aren't coming down to affordable levels for a very long time.

Amy Goodman: Obama's Late Payment to Mortgage-Fraud Victims

In his State of the Union address, many heard echoes of the Barack Obama of old, the presidential aspirant of 2007 and 2008. Among the populist pledges rolled out in the speech was tough talk against the too-big-to-fail banks that have funded his campaigns and for whom many of his key advisers have worked: "The rest of us are not bailing you out ever again," he promised.[..]

Obama is aware that those at the Occupy Wall Street protests around the country include many who were his most active supporters during the 2008 campaign. Does the formation of the new task force signify a move to more progressive policies, as MoveOn suggests?[..]

This is the Occupy Wall Street conflict distilled. Will Eric Schneiderman's new job lead to the indictment of fraudulent financiers, or to just another indictment of our corrupt political system?

Tweetie Likes Mitch

by: TheMomCat

Wed Jan 25, 2012 at 14:41:43 PM EST

   MATTHEWS: You know, I really liked that speech by Mitch Daniels. I thought it was really a Midwestern conservatism of the best kind, honest, fiscally conservative or course, but recognizing that we have to protect our safety net and we have to recognize that the rich cannot get all the pension money and all the entitlement money. There's not enough to go around. We're going to have to have means testing. We're going to have to close the loopholes.

   A very responsible kind of look at fiscal conservatism that recognizes that the rich can't plunder the poor any more, that if you're going to have a true conservatism, in other words a society that will sustain itself, a society that will be at peace with itself, you need to help the people to get a break and that means it's not Libertarianism at all. There's nothing of Ron Paul in what that man said.

   It was a responsible social policy of the right, which was really I think cast in old time Midwest, Bob Taft conservatism, except for some of the bromides, the idiomatic crap that he threw in there to make everybody happy. There was a seriousness to this speech. And now I understand why people like Mitch Daniels.

   MADDOW: Chris I am very glad that we area all talking about this together because I could not disagree with you more about the speech. This was just my impression of it but I don't have time to go into that...

   MATTHEWS: Why?

   MADDOW: We're going to go into that in a moment.

   MATTHEWS: What's wrong?

   MADDOW: I think that Mitch Daniels there to say the world is on fire. Be afraid. Run to Republicans. I mean, he's talking about America as a country that... America adrift, quarreling and paralyzed going over Niagra. I mean this was a "Be afraid, be afraid, be afraid" this guy's trying to murder the country speech.

   MATTHEWS: But he also had solutions. He had gutsy solutions. He wasn't afraid to take on the rich and that's so rare today in the Republican side.

   MADDOW: I will take you on that Chris, absolutely.

Does Daniels make Matthews' leg tingle?

h/t Heather at Crooks and Liars Video Cafe for the transcript

On this Day In History January 26

by: TheMomCat

Thu Jan 26, 2012 at 08:00:00 AM EST

Find the past "On This Day in History" here.

January 26 is the 26th day of the year in the Gregorian calendar. There are 339 days remaining until the end of the year (340 in leap years).

On this day in 1788, Captain Arthur Phillip guides a fleet of 11 British ships carrying convicts to the colony of New South Wales, effectively founding Australia. After overcoming a period of hardship, the fledgling colony began to celebrate the anniversary of this date with great fanfare.

Australia Day (previously known as Anniversary Day, Foundation Day, and ANA Day) is the official national day of Australia. Celebrated annually on 26 January, the date commemorates the arrival of the First Fleet at Sydney Cove in 1788 and the proclamation at that time of British sovereignty over the eastern seaboard of New Holland.

Although it was not known as Australia Day until over a century later, records of celebrations on 26 January date back to 1808, with the first official celebration of the formation of New South Wales held in 1818. It is presently an official public holiday in every state and territory of Australia and is marked by inductions into the Order of Australia and presentations of the Australian of the Year awards, along with an address from the governor-general and prime minister.

The date is controversial to some Australians, particularly those of Indigenous heritage, leading to the use of alternate names, such as Invasion Day and Survival Day. Proposals have been made to change the date of Australia Day, but these have failed to gain widespread public support.

Arrival of the First Fleet

On 13 May 1787, a fleet of 11 ships, which came to be known as the First Fleet, was sent by the British Admiralty from England to Australia. Under the command of Captain Arthur Phillip, the fleet sought to establish a penal colony at Botany Bay on the coast of New South Wales, which had been explored and claimed by Captain James Cook in 1770. The settlement was seen as necessary because of the loss of the colonies in North America. The Fleet arrived between 18 and 20 January 1788, but it was immediately apparent that Botany Bay was unsuitable.

On 21 January, Philip and a few officers travelled to Port Jackson, 12 kilometres to the north, to see if it would be a better location for a settlement. They stayed there until 23 January; Philip named the site of their landing Sydney Cove, after the Home Secretary, Thomas Townshend, 1st Viscount Sydney. They also had some contact with the local aborigines.

They returned to Botany Bay on the evening of 23 January, when Philip gave orders to move the fleet to Sydney Cove the next morning, 24 January. That day, there was a huge gale blowing, making it impossible to leave Botany Bay, so they decided to wait till the next day, 25 January. However, during 24 January, they spotted the ships Astrolabe and Boussole, flying the French flag, at the entrance to Botany Bay; they were having as much trouble getting into the bay as the First Fleet was having getting out.

On 25 January, the gale was still blowing; the fleet tried to leave Botany Bay, but only the HMS Supply made it out, carrying Arthur Philip, Philip Gidley King, some marines and about 40 convicts; they anchored in Sydney Cove in the afternoon.

On 26 January, early in the morning, Philip along with a few dozen marines, officers and oarsmen, rowed ashore and took possession of the land in the name of King George III. The remainder of the ship's company and the convicts watched from onboard the Supply.

Meanwhile, back at Botany Bay, Captain John Hunter of the HMS Sirius made contact with the French ships, and he and the commander, Captain de Clonard, exchanged greetings. Clonard advised Hunter that the fleet commander was Jean-Francois de Galaup, comte de La Perouse. The Sirius successfully cleared Botany Bay, but the other ships were in great difficulty. The Charlotte was blown dangerously close to rocks; the Friendship and the Prince of Wales became entangled, both ship losing booms or sails; the Charlotte and the Friendship actually collided; and the Lady Penrhyn nearly ran aground. Despite these difficulties, all the remaining ships finally managed to clear Botany Bay and sail to Sydney Cove on 26 January. The last ship anchored there at about 3 pm.

Note that the formal establishment of the Colony of New South Wales did not occur on 26 January, as is commonly assumed. That did not occur until 7 February 1788, when the formal proclamation of the colony and of Arthur Phillip's governorship were read out. The vesting of all land in the reigning monarch George III also dates from 7 February 1788.

They hate us for our freedoms!

by: ek hornbeck

Wed Jan 25, 2012 at 16:26:36 PM EST

Rules of American justice: a tale of three cases
Laws are used to shield egregious crimes while severely punishing those who publicly discuss them
By Glenn Greenwald, Salon
Tuesday, Jan 24, 2012 4:23 AM Eastern Standard Time

(I)n American justice yesterday, the conclusion came to the criminal process arising from a horrific 2005 incident in which 24 unarmed Iraqi civilians were slaughtered in the town of Haditha during American raids conducted in the aftermath of an explosion of a roadside bomb. The Marine Staff Sgt. who ordered his soldiers to "shoot first, ask questions later," Frank Wuterich, was in the midst of a manslaughter trial that could have sent him to prison for life (first-degree murder charges were previously withdrawn by the Government). Instead, prosecutors "offered Wuterich a deal that stopped the proceedings and could mean little to no jail time." Instead, he "pleaded guilty Monday to negligent dereliction of duty" and "now faces no more than three months in confinement." Lest you think that's too lenient: "he could also lose two-thirds of his pay and see his rank demoted to private when he's sentenced."
...
The Rules of American Justice are quite clear:

(1) If you are a high-ranking government official who commits war crimes, you will receive full-scale immunity, both civil and criminal, and will have the American President demand that all citizens Look Forward, Not Backward.

(2) If you are a low-ranking member of the military, you will receive relatively trivial punishments in order to protect higher-ranking officials and cast the appearance of accountability.

(3) If you are a victim of American war crimes, you are a non-person with no legal rights or even any entitlement to see the inside of a courtroom.

(4) If you talk publicly about any of these war crimes, you have committed the Gravest Crime - you are guilty of espionage - and will have the full weight of the American criminal justice system come crashing down upon you.

Just to be clear, let's remind ourselves of just what these "soldiers", "this generation of heroes (that) has made the United States safer and more respected around the world" did-

What happened at Haditha?
By Martin Asser, BBC News
Monday, 10 March 2008

Eyewitness accounts suggest that comrades of TJ Terrazas, far from coming under enemy fire, went on the rampage in Haditha after his death.

Twelve-year-old Safa Younis appears on video saying she was in one of three houses where troops came in and indiscriminately killed family members.

"They knocked at our front door and my father went to open it. They shot him dead from behind the door and then they shot him again," she says in the video.

"Then one American soldier came in and shot at us all. I pretended to be dead and he didn't notice me."

There were eight bodies in the house, including Safa's five siblings, aged between two and 14.

In another house seven people including a child and his 70-year-old grandfather were killed. Four brothers aged 41 to 24 died in a third house. Eyewitnesses said they were forced into a wardrobe and shot.

In the street, US troops gunned down four students and a taxi driver they had stopped at a roadblock set up after the bombing.

According to a witness, they were shot by the side of the road, as they stood with their hands on their heads.

Gee- do you think they could be angry about that?

Marine gets no jail time in killing of 24 Iraqi civilians
By Tony Perry, Los Angeles Times
January 25, 2012

Jones said he had planned to recommend 90 days in the brig - the maximum as requested by the prosecution - but that the plea bargain approved by Lt. Gen. Thomas Waldhauser had called for no jail time.

"It's difficult for the court to fathom negligent dereliction of duty worse than the facts in this case," Jones told Wuterich.
...
A Marine Corps spokesman said Waldhauser would offer no public explanation of his decision to accept the plea bargain and stipulate that Wuterich receive no jail time.

No jail for marine? Haditha massacre verdict stuns Iraqis.
By Whitney Eulich, Staff writer, The Christian Science Monitor
January 25, 2012

However, the military court's decision to demote Wuterich's rank to private in lieu of jail time is one more blow to the idea of US justice system being a source of guidance or authority in Iraq, according to the Washington Post.

"I was expecting that the American judiciary would sentence this person to life in prison and that he would appear and confess in front of the whole world that he committed this crime, so that America could show itself as democratic and fair," survivor Awis Fahmi Hussein told the Washington Post, showing his scars from a bullet wound to the back.

The Telegraph reports that the ruling is viewed as "...an insult to all Iraqis," while the Associated Press reports that it reopened old wounds - both with the US and the Iraqi government. The predominantly Sunni region has been unable to convince its Shiite-led government to condemn the murders or push to bring those responsible to trial.

In Iraq, Haditha deal another case of injustice
By Raheem Salman and Patrick J. McDonnell, Los Angeles Times
January 25, 2012 at 6:20 AM

"The Americans killed children who were hiding inside the cupboards or under the beds," said Rafid Abdul Majeed Hadithi, 43, a teacher who says he witnessed the 2005 assault by Marines that took the lives of 24 unarmed Iraqi civilians. "Was this Marine charged with dereliction of duty because he didn't kill more? Is Iraqi blood so cheap?"
...
"That soldier would be sent to prison for more than three months if he had thrown trash on the streets in America," said Khalid Salman, 45, whose cousin was killed. "This is not new, and it's not new for the American courts that already did little about Abu Ghraib and other crimes in Iraq."
...
Assim Omar al-Hadithi, 40, a relative of another victim, said such a light sentence "shows the lies of the Americans, whether they are judges or members of the military."

Thair Thabit Hadithi, 41, a photographer who says he came upon the scene shortly after the killings, on Tuesday recalled the unrelenting crackle of gunfire, an injured victim bleeding to death outside his house, the black nylon body bags in which Marines placed the corpses.

The Marine Corps initially said 15 Iraqis had been killed in a roadside bombing and that the others perished in a subsequent firefight. None of that was true. Hadithi said he had grisly photos showing the devastation and bloodshed in a poor residential quarter.

Anger in Iraq After Plea Bargain Over 2005 Massacre
By MICHAEL S. SCHMIDT, The New York Times
Published: January 24, 2012

Assim Omar al-Hadithi, 40, a relative of another victim, said that such a light sentence "shows the lies of the Americans, whether they are judges or members of the military."

He continued: "All the world knew that the American soldiers committed crimes in Iraq. We were extensively surprised when we heard the news, and it has made our minds even worse. It is no consolation for the victims' families."

The shadows cast by the Haditha massacre, the abuse of detainees at the Abu Ghraib prison and the killing of civilians by contractors for Blackwater at a square in Baghdad helped turn Iraqi public opinion against the American presence. An agreement to keep American troops here past 2011 collapsed when Iraqi officials would not agree to extend their immunity from Iraqi prosecution.
...
A number of Americans in high-profile cases have received what many Iraqis regarded as token sentences. In August, the supposed ringleader in the Abu Ghraib abuses, Pvt. Charles A. Graner Jr., was released early from prison because of good behavior. He had been sentenced to 10 years but served just 6 1/2.

In 2009 charges were dropped against four American military contractors in the killings of the 17 civilians at the square in Baghdad. While a federal court ruling in Washington reopened manslaughter charges against the four, many Iraqis continue to believe that the contractors will never be punished.

Iraqis received Tuesday's plea deal with the same cynicism and anger. "I am not satisfied with the court decision against those killers - they need to be tortured and executed because they killed innocent people," said Tariq Abas al-Najar, 43, a taxi driver in Basra. "If Marines killed a sheep in Europe, the judge would punish them much harsher than for the killing of those innocent Iraqis."

Federal Investigation Mortgage Fraud A Possible Charade

by: TheMomCat

Wed Jan 25, 2012 at 12:17:09 PM EST

The unit will be co-chaired by New York Attorney General Eric Schneiderman who withdrew from the DOJ panel of state attorney generals that was working on a settlement with the big banks over their part in mortgage fraud. That's about all the good news there is. The other members of the unit are Lanny Breuer, assistant attorney general at the Criminal Division of the Department of Justice, Robert Khuzami, director of enforcement at the SEC; John Walsh, a U.S. attorney in Colorado, and Tony West, assistant attorney general in the Civil Division at DOJ.  Also, the And there in lies the farce of this unit.

Lanny Breuer, along with Attorney General Eric Holder, was partner in the Washington DC law firm Covington & Burling that represented a number of big banks and MERS which are at the center of alleged foreclosure fraud. He recently appeared on "60 Minutes" making numerous lame excuses justifying the lack of prosecutions out of the Justice Department. Despite the evidence, including records from federal and state courts and local clerks' offices around the country, showing widespread forgery, perjury, obstruction of justice, and illegal foreclosures on the homes of thousands of active-duty military personnel, the Holder DOJ has not brought any criminal cases against big banks or other companies involved. There is a clear conflict of interest and possible ethics violations.

The director of enforcement of the SEC is another embarrassment. Robert Khuzami, a former general counsel at Deutsche Bank, one of the leading trustees in securitization, will no be looking into the instruments of the fraud he helped create. It has been Khuzami's office that has been giving the banks no-fault settlements which recently were rejected by U.S. District Judge Jed S. Rakoff.

U.S. Attorney in Colorado, John Walsh, is most notable for justifying the crackdown on medical marijuana dispensaries in that state. He doesn't appear to have any experience in prosecuting banking fraud.

The last unit member is Tony West, the brother-in-law of California's Attorney General, Kamala Harris who like Schneiderman withdrew from the DOJ agreement because it was too little and didn't hold the banks or companies libel. West, a lawyer with a Oakland, CA law firm and a former US attorney, appears to have little experience with financial fraud.

Is this really the way to do this? Why not create a Special Prosecutor with the budget and subpoena power rather than a committee within a task force that has done minimal in the last three years to investigate fraud? Both David Dayen at FDL News Desk and Yves Smith at naked capitalism think that Schneiderman is being used for a charade that would eventually let the banks get away with fraud anyway. But is Schneiderman that easily misled or dazzled by Obama's offer? He certainly didn't sound like he was going to end his state level investigation in this release from his office:

I would like to thank President Obama for his leadership in the creation of a coordinated investigation that marshals state and federal resources to bring justice for the victims of the misconduct that caused the mortgage crisis.

In coordination with our federal partners, our office will continue its steadfast commitment to holding those responsible for the economic crisis accountable, providing meaningful relief for homeowners commensurate with the scale of the misconduct, and getting our economy moving again.

The American people deserve a robust and comprehensive investigation into the global financial meltdown to ensure nothing like it ever happens again, and today's announcement is a major step in the right direction.

Considering who has run the Treasury, the revolving door of bankers in the Oval Office and Obama's weak efforts in investigating or prosecuting any person or entity that would ruffle the feathers of his Wall St. contributors over the last three years, there is a whole lot of reason to be doubtful about the president's sincerity or any future hope of substantial relief for homeowners.

Punting the Pundits

by: TheMomCat

Wed Jan 25, 2012 at 12:00:00 PM EST

Thanks to ek hornbeck, click on the link and you can access all the past "Punting the Pundits".

Wednesday is Ladies' Day

Katrina vanden Heuvel: Why this election is a choice, not a referendum

At the "heart of this campaign," Newt Gingrich told his adoring followers in his South Carolina victory speech on Saturday night, is the fundamental choice between "American exceptionalism" and "the radicalism of Saul Alinsky." America has a choice, he argued, between the vision of the founders and that of radical organizer Saul Alinsky, between a paycheck president and a food stamp president.

For a man of serial corruptions, it is ironic that character assassination is Gingrich's true craft. Dog-whistle racism - Obama as the "food stamp president" - provided him his initial lift in South Carolina. Few at Gingrich's victory speech knew who Alinsky was, but they could tell from the name that he was surely unsavory and probably un-American.

But the Gingrich dichotomy is neither original nor unique. It is simply the gutter version of the standard Republican frame for this election. In the more tempered words of Mitt Romney, Obama is accused of trying to transform America from an "Opportunity Society" to a "European-style Entitlement Society." No matter who wins the nomination, this will be a theme pounded on over the next months.

Adele M. Stan: Obama's State of the Union Plays to His Base -- But Not Everything Was Worth Cheering

In his State of the Union message, Obama succeeded in painting the GOP as obstructionist, and came down hard on the banks.

In the final State of the Union message President Barack Obama will deliver this term, he came out swinging against the obstructionism of Republicans in Congress, and spoke to the growing gap between America's rich and poor.

With a delivery that often sounded like he was imploring America to believe in itself again, Obama gave an address that may not have been his most inspirational, but got the job done. He laid out a strong case for his programs and his administration's efforts to revive the economy, and made the GOP look small and petty at the expense of everyday people.[..]

Hot Greece

by: ek hornbeck

Wed Jan 25, 2012 at 09:30:45 AM EST

The fundamental reality is that their economies can no longer support the inflated, leveraged, fictional values the holders of these worthless scraps of paper demand and the reckoning is going to come from their pockets simply because they're the ones holding the hot potato.

Today-

Hedge Funds Scramble to Unload Greek Debt
By LANDON THOMAS JR., The New York Times
January 25, 2012, 7:29 am

Hedge funds that in the last month or so have purchased an estimated 4 billion euros ($5.2 billion) of beaten down Greek bonds that mature on March 20 are now trying to unload their positions, according to brokers and traders.

That is because it is becoming clear to one and all that Greece - under pressure from its financial backers - is preparing to impose a broad-based haircut that would hit all investors with a loss of 50 percent or more, whether they agree to the deal or not.
...
Starting in December, the counterintuitive, go-long Greece bet was one of the more popular pitches made to funds in New York and London.

Investment banks - Merrill Lynch was particularly aggressive in recommending the trade, investors say - argued that even though Greece was near bankrupt, those who bought the paper maturing in March could double their money when Greece received its latest bailout tranche due that month.
...
Now, with momentum building in Europe for an agreement on a 50 percent-plus haircut to be reached before March 20 - one that would be legally binding on all holders - the smart money is not looking so smart anymore.

Oh, but it gets so much better.

European Central Bank Moves to Avoid Loss on Greek Bonds
By LANDON THOMAS Jr. and JAMES KANTER, The New York Times
Published: January 24, 2012

For months, the proposed debt restructuring deal between Greece and its private sector creditors had excluded the central bank from taking a loss on its Greek bond holdings while banks and hedge funds would have losses of 50 percent or more.
...
Private sector investors, including large European banks and hedge funds, have complained bitterly - and in some cases threatened legal action - over the central bank's insistence that its 55 billion euros in Greek bonds were exempt from the loss that the private sector is facing, which some have estimated at 60 cents on the euro.

The central bank bought the bulk of its Greek bonds in 2010 in a failed attempt to stabilize Greece's collapsing bond market, paying discounted prices of about 70 to 75 cents on the euro. As part of the current talks, the central bank might exchange its current bonds for a different form of Greek debt at a cost similar to that of the distressed bonds.

EU ratchets up pressure with Greek default threat
By Ambrose Evans-Pritchard, International Business Editor, The Telegraph
9:39PM GMT 24 Jan 2012

The head of the European Commission's economics team Mario Buti said Brussels is prepared to allow credit default swaps (CDS) on Greek bonds to come into play if talks fail to reach a deal that gives Greece enough debt relief to claw its way back to viability. "Triggering CDS may have to be considered," he said.
...
Charlesa Dallara, the head of the International Institute for Finance (IIF) representing creditor banks, said EU officials were playing with fire by talking about default and demanded that the EU stick to the agreement reached last October.

"We put an offer on the table and it remains on the table. All parties need to contribute to the solution. We are wiping off the face of the earth €100bn in existing claims against Greece," he told Bloomberg.

First Act of Greek Default Proceedings Drawing to a Close
Author: Claus Vistesen, EconoMonitor
January 24th, 2012

Let me be clear, absolutely clear, here. Within any conceivably realistic macroeconomic model, there is no way that Greece can reach a stable debt level with moderate growth under these conditions. Under the interest rate scenario noted above (let us say with an average interest rate of 3.8% on the new debt) the nominal interest rate would still be substantially higher than the growth rate of the economy. The only way, the nominal debt level could then be kept stationary is by forcing the fiscal balance into surplus. However, the problem is that this affects the denominator in the debt/GDP calculation by sucking out demand (growth) from an economy already structurally impaired (within a currency union and all that).
...
The deal which now seems to be close to completed by no means closes proceedings. It is very likely in my opinion that private creditors who are currently the only ones being forced to take a haircut due to seniority of the IMF and the ECB will face a near 100% loss on their holdings. The argument is simple. Given the amount of debt held by the ECB and the IMF and the fact that these two institutions are senior debt holders the debt held by private creditors becomes junior debt and thus the tranche which takes the first (and in my opinion likely complete) loss in the event of a default.

Of course, once we reach this point the issue of CDS contracts will rear its head yet again since if a 50-60% haircut can be considered voluntary anything beyond this becomes very difficult to characterize as such. Any rating agency would find it difficult not to classify further losses as a default and thus begins the fun in earnest. And then comes the ECB and IMF's share. It will be political dynamite if the ECB had to print on the liability side to cover losses on the asset side on Greek sovereign debt or if the IMF had to ask its contributors for extra cash to cover for losses on loans made out to Greece or any other economy. Obviously, much will be done to prevent this, but just look at the numbers of Greece's economy and you will see that it is not that outlandish, especially if Greece opts to stay in the euro zone. Finally, Greece only represents the starter here. Any deal agreed to  in Greece will be ardently watched in Ireland and Portugal who will feel they are entitled to the same deal with their private creditors.

Germany Loses Its Grip
By Delusional Economics, Naked Capitalism
Wednesday, January 25, 2012

(I)t is just one symptom of the actual problem. That problem was highlighted overnight with the European flash PMI's. Germany once again outperformed the rest of Europe, France treaded water, admittedly with its head held a little higher, while the periphery of Europe slowly drifts away. The latest Euro PMI was a little better than expected, in some part due to the ECB's actions over the last month or so no doubt, put the forward looking indicators suggest more weakness to come and I expect the divide to grow as Europe slows further. As I have stated previously that the German data is a double edged sword because, although it is good for Germany that its economy is powering, it is a big negative for the rest of Europe because one of the major issues that brought on the crisis in the first place was the competitiveness imbalance of nations under the single currency.
...
So now even if Greece manages a deal to write-off some of its debt the markets will quickly turn their eyes to Portugal who will no doubt require a second bail out, but increasingly a debt restructure as well.

With Spain also struggling and Italy under increasing pressure, the continuation of contagion appears to be taking its toll on the politics of Europe with Germany's ability to control the situation diminishing.
...
Germany also appears to be losing support from even its strongest allies. Last week the Dutch central banker Klaas Knot gave an interview blaming Germany for the failure of the EFSF.
...
To add to that, Luxembourg's new foreign minister gave an interview with German media yesterday in which he called the fiscal compact a 'waste of time and energy'.

Is the failure of austerity-centric policy finally taking its toll on Germany's ability to steer Europe's response to the financial crisis? This would certainly explain why Mario Monti seems so sure that his country will be receiving the fiscal and monetary backstops. The outcomes from next week's EU summit will provide more clues.

On This Day In History January 25

by: TheMomCat

Wed Jan 25, 2012 at 08:00:00 AM EST

Find the past "On This Day in History" here.

January 25 is the 25th day of the year in the Gregorian calendar. There are 340 days remaining until the end of the year (341 in leap years).

On this day in 1905, the world's largest diamond is found. At the Premier Mine in Pretoria, South Africa, a 3,106-carat diamond is discovered during a routine inspection by the mine's superintendent. Weighing 1.33 pounds, and christened the "Cullinan," it was [the largest diamond ever found.

The Cullinan diamond is the largest rough gem-quality diamond ever found, at 3,106.75 carats (621.35 g).

The largest polished gem from the stone is named Cullinan I or the Great Star of Africa, and at 530.4 carats (106.1 g) was the largest polished diamond in the world until the 1985 discovery of the Golden Jubilee Diamond, 545.67 carats (109.13 g), also from the Premier Mine. Cullinan I is now mounted in the head of the Sceptre with the Cross. The second largest gem from the Cullinan stone, Cullinan II or the Lesser Star of Africa, at 317.4 carats (63.5 g), is the fourth largest polished diamond in the world. Both gems are in the Crown Jewels of the United Kingdom.

History

The Cullinan diamond was found by Frederick Wells, surface manager of the Premier Diamond Mining Company in Cullinan, on January 26, 1905. The stone was named after Sir Thomas Cullinan, the owner of the diamond mine.

Sir William Crookes performed an analysis of the Cullinan diamond before it was cut and mentioned its remarkable clarity, but also a black spot in the middle. The colours around the black spot were very vivid and changed as the analyzer was turned. According to Crookes, this pointed to internal strain. Such strain is not uncommon in diamonds.

The stone was bought by the Transvaal government and presented to King Edward VII on his birthday. It was cut into three large parts by Asscher Brothers of Amsterdam, and eventually into 9 large gem-quality stones and a number of smaller fragments. At the time, technology had not yet evolved to guarantee quality of the modern standard, and cutting the diamond was considered difficult and risky. In order to enable Asscher to cut the diamond in one blow, an incision was made, half an inch deep. Then, a specifically designed knife was placed in the incision and the diamond was split in one heavy blow. The diamond split through a defective spot, which was shared in both halves of the diamond.

State of the Union

by: ek hornbeck

Tue Jan 24, 2012 at 19:23:39 PM EST

The most optimistic estimates are that he'll play some variation on his Osawatomie, Kansas speach which was frankly feckless and weak.  The usual suspects- Klein, Bernstein, DeLong, Sargent are all making the same tired old excuses for inaction at best and Republican policies as the norm.

It's noteworthy that there has been less leakage of the prepared text which I suspect is due more to the collapse of his sellout to the Banksters on mortgage fraud and robo-signing than his and Holder's fanatical prosecution of whistle blowers and journalists instead of war criminals and thieves.  The gang that couldn't shoot straight screws up again, unless you prefer to call them simply evil which certainly matches the facts.

dday has the best preview I was able to find.  In addition to Warren Buffet's secretary as a poster child for tax reform, he'll also have Admiral William McRaven of the Bin Laden kill team, and Steve Jobs' wife.

Not quite sure what she's meant to illustrate unless it's the efficiency of working people to death in overseas sweat shops.

I expect there will also be a full throated denial of science in defense of fracking and global warming from the president who had no problem denying women access to Plan B contraception and supporting the Stupak amendment.

If you don't have access to a TV CSPAN will be starting its coverage at 8 pm with ceremonial entries.  They'll also have the Republican response from Mitch Daniels who today attempted to strip Union rights from workers.

They should all be fired and prosecuted to the fullest extent of the law.

And The Nominees Are

by: TheMomCat

Tue Jan 24, 2012 at 12:39:14 PM EST

The 84th Academy Awards will be presented on February 26th hosted by one of the best hosts since Bob Hope, Billy Crystal and will air on the ABC network at 7 PM EST/ 6 PM CST.

As we did last year, we here at Stars Hollow, will be hosting a live blog and Oscar party. Prior to the big night, I will once again have food and drink suggestions that will entertain your palate as you watch the festivities. So get ready there is barely a month to prepare.

And here are the nominees:

Best Picture

"The Artist"
"The Descendants"
"Extremely Loud & Incredibly Close"
"Hugo"
"Midnight in Paris"
"The Help"
"Moneyball"
"War Horse"
"The Tree of Life"

Best Actor

Demian Bichir, "A Better Life"
George Clooney, "The Descendants"
Jean Dujardin, "The Artist"
Gary Oldman, "Tinker Tailor Soldier Spy"
Brad Pitt, "Moneyball"

Best Actress

Glenn Close, "Albert Nobbs"
Viola Davis, "The Help"
Rooney Mara, "The Girl With the Dragon Tattoo"
Meryl Streep, "The Iron Lady"
Michelle Williams, "My Week With Marilyn"

(The rest below the fold. We wouldn't want to hog the stage. ;-)

Greek Default Assured

by: ek hornbeck

Tue Jan 24, 2012 at 14:34:28 PM EST

As we are constantly reminded by the Banksters, the intent of a Credit Default Swap is as insurance against a default in payments.  In fact they are used to make side bets on outcomes and their notional value almost always exceeds the actual underlying asset by orders of magnitude.

So the question is- will they pay off?

In the 2008 financial collapse the chief issuer of these instruments, American International Group, went bankrupt and only massive intervention by the U.S. Treasury Department and Federal Reserve Bank allowed them to make good their obligations at face value.

This was Insurance Fraud on a historic scale.  The rules require you to cover your policies.

Because we don't know the actual amount of CDSes it is difficult to predict whether they will be honored or not but that's only the first wave of the problem.  Spain, Portugal, and Italy also face default because of the usurious interest rates currently being demanded and a Greek default is only likely to increase their vulnerability.

European policy makers have shown no indication that they actually understand the magnitude of the difficulty and every response so far has been wrong headed austerity.  The fundamental reality is that their economies can no longer support the inflated, leveraged, fictional values the holders of these worthless scraps of paper demand and the reckoning is going to come from their pockets simply because they're the ones holding the hot potato.

It's coming.  It's coming soon.  A lot of people and institutions that considered themselves quite well off are going to find their estimations substantially reduced.

Greek Debt Talks Still Without Resolution; Bondholders Make Final Offer
By: David Dayen, Firedog Lake
Monday January 23, 2012 6:20 am

The debt talks between Greece and their bondholders, thought to be a done deal late Friday, spilled into the weekend and still found no resolution as of today. The short version is that the creditors want a higher coupon, or interest rate on the new bonds they'll accept in exchange for taking at huge hit on the bonds they currently hold.
...
At a low interest rate, the creditors would then call the deal involuntary, a credit default swaps would trigger. However, according to the Fitch rating agency, there is no such thing as a voluntary debt restructuring, and they would read any deal as a default event. This is why Noriel Roubini says we will see "a credit event" in Greece either way.
...
The bondholders presented what they called their "maximum" offer over the weekend. Charles Dallara, the managing director of the Institute for International Finance, who has been negotiating on behalf of the creditors, said that both sides were at a "crossroads" and the "limits of a voluntary deal." Interestingly, the biggest holdout could be the European Central Bank, which holds 55 billion euros of Greek debt and doesn't want to take any losses on it. The EFSF, the European bailout fund, may have to buy the debt off the ECB at par to get a deal structured.

Greece has already said they would change the terms of the bonds by law, if need be, but then some creditors would hold out and there would be litigation and CDS triggering.

Anything controversial or unmanageable out of Greece would risk contagion elsewhere in Europe, especially in Portugal, probably the next most-threatened country on the periphery. The dangers in Europe are very much apparent here.

S&P: Greek Debt Restructuring Would Be a Default
By: David Dayen, Firedog Lake
Tuesday January 24, 2012 8:55 am

Standard and Poor's has become the second rating agency to say that, regardless of the conclusion of the Greek debt restructuring, they would judge the country as in "selective default". With two rating agencies - Fitch is the other - now on the record about default, it's almost certain that the announcement of the deal, if we ever get one, will trigger credit default swaps.

So I see no point in having the negotiations continue. They were predicated on getting bond holders to accept a voluntary haircut, to avoid the triggering of CDS. That will now be impossible. And the Greek government has the ability to change the law and mandate the new payments on debt. So they might as well just do that, at this point. In truth, there never was a voluntary haircut, anyway. So everyone might as well tell the truth.

An S&P official does not believe that a Greek default event would necessarily lead to contagion in the Eurozone. However, we've seen the cascading effect play out many times in the past year or so. As much as the regulators want to tell themselves they don't foresee a problem, one could be staring them in the face.

In fact, we may already by seeing contagion in the form of Portugal's struggles.

IMF slashes world growth forecast
By Paul Handley (AFP)
3 hours ago

On Monday in Berlin, IMF managing director Christine Lagarde pressed European leaders to build a stronger backstop to prevent the problems in the continent's weakest economies -- Greece, Spain and Portugal -- from pulling down others.

"We need a larger firewall," she said. "Without it, countries like Italy and Spain that are fundamentally able to repay their debts could be forced into a solvency crisis by abnormal financing costs."

The Fund warned against overly sharp budget-balancing by those countries that can afford to move slowly to reduce their deficits.

Otherwise, they will just create more drag on the global economy.

"Decreasing debt is a marathon, not a sprint," said Olivier Blanchard, the IMF's chief economist. "Going too fast will kill growth and further derail the recovery."

The recommendation was pointed at Europe's largest economies Germany, France and Britain, all of which it said would continue to grow this year, albeit at a weak pace.

Germany's economy was seen growing 0.3 percent, France's 0.2 percent, and Britain's 0.6 percent.

The United States, the world's largest economy, was projected to grow 1.8 percent in 2012.

The growth downgrades covered the entire world.

The Greek debt talks fall apart
Felix Salmon, Reuters
Jan 24, 2012 04:33 EST

Remember here that Greece itself is basically just an intermediary, stuck between the Troika (EU, ECB, IMF) on the one hand, which is going to fund its deficits for the foreseeable future and therefore can demand anything it wants, and bondholders, on the other. And the problem is that what's acceptable to the bondholders - a 4% coupon, basically, on restructured debt - is unacceptable to the Troika.
...
In a way, this is a good thing, because it only serves to clarify the fact that Greece is defaulting in a way that's going to make its bondholders very unhappy. All the talk of a "voluntary" restructuring was a way of attempting to paper over that fact, and that paper was always extremely thin. Maybe a bit of honesty will help people face up to reality in a way that they've been very reluctant to do until now.
...
No one thinks of this deal as a "one and done" restructuring. Bailing in the ECB or the EFSF at this point would just be denial: it would encourage the EU to think (or at least to say) that the Greek debt problem was solved for perpetuity, when it clearly isn't. So let's force the private sector to take its big NPV haircut now. And then the next step can come a few years down the road, when Greece discovers it can't pay the Troika what it owes.

Punting the Pundits

by: TheMomCat

Tue Jan 24, 2012 at 12:00:00 PM EST

Thanks to ek hornbeck, click on the link and you can access all the past "Punting the Pundits".

This is a great read that make make you  a little dizzy but says volumes about Pres. Obama.

Bill Moyers and Michael Winship: The Washington-Wall Street Revolving Door Just Keeps Spinning Along

We've already made our choice for the best headline of the year, so far:

"Citigroup Replaces JPMorgan as White House Chief of Staff."

When we saw it on the website Gawker.com we had to smile -- but the smile didn't last long. There's simply too much truth in that headline; it says a lot about how Wall Street and Washington have colluded to create the winner-take-all economy that rewards the very few at the expense of everyone else.

Robert Reich: Obama's Mixed Messages

Many Democrats are congratulating themselves that the final two in the 2012 Republican field are a stuffed shirt who can't motivate his own base and a wild man who seems to inspire only fundamentalists and Tea Party fanatics. But let's not pop the champagne quite yet.

According to a video sent to supporters Saturday, President Obama is planning to strike a "populist" note in his Tuesday State of the Union Address and in the themes he sounds in his re-election campaign. Obama will pledge "an America where everybody gets a fair shot, and everyone does their fair share and everybody plays by the same set of rules."

"We can go in two directions. One is towards less opportunity and less fairness," Obama declared in the video, "Or we can fight for where I think we need to go: building an economy that works for everyone, not just a wealthy few."

Obama, say widely reported White House leaks, will double down on promises of tax breaks for manufacturing, job training and education initiatives, other help for the unemployed, and stronger efforts to deal with the foreclosure crisis. All of these, except for the tax breaks, by definition require activist government.

So despite Obama's fervent desire throughout his presidency to surmount ideological divisions, 2012 promises to be a great ideological debate.

Obama's War On Whistlerblowers

by: TheMomCat

Tue Jan 24, 2012 at 10:06:15 AM EST

Former CIA Officer John Kiriakou Charged with Disclosing Covert Officer's Identity and Other Classified Information to Journalists and Lying to CIA's Publications Review Board

   A former CIA officer, John Kiriakou, was charged today with repeatedly disclosing classified information to journalists, including the name of a covert CIA officer and information revealing the role of another CIA employee in classified activities, Justice Department officials announced.

   The charges result from an investigation that was triggered by a classified defense filing in January 2009, which contained classified information the defense had not been given through official government channels, and, in part, by the discovery in the spring of 2009 of photographs of certain government employees and contractors in the materials of high-value detainees at Guantanamo Bay, Cuba. The investigation revealed that on multiple occasions, one of the journalists to whom Kiriakou is alleged to have illegally disclosed classified information, in turn, disclosed that information to a defense team investigator, and that this information was reflected in the classified defense filing and enabled the defense team to take or obtain surveillance photographs of government personnel. There are no allegations of criminal activity by any members of the defense team for the detainees.

Like she did with the outing of CIA operative Valerie Plame-Wilson, Marcy Wheeler, along with Jim White at emptywheel, dissects this case exposing the hypocrisy of the government and the cover up of the real crime, a war crime, torture, here, here, here, here and here. In those articles they expose the weakness of the DOJ's case against Kiriakou and that Obama has covered for and refused to prosecute war crimes committed by CIA agents and covers up military war crimes by hiding the evidence under the guise of national security.

A prime example of this hypocrisy it outrageous that has allowed war criminal to get off with just a tap on the wrist while the commanding officers were not even mentioned:

January 23, 2012 - CAMP PENDLETON, Calif. (AP) - A Marine sergeant who told his troops to "shoot first, ask questions later" in a raid that killed unarmed Iraqi women, children and elderly pleaded guilty Monday in a deal that will carry no more than three months confinement and end the largest and longest-running criminal case against U.S. troops from the Iraq War.

The agreement marked a stunning and muted end to the case once described as the Iraq War's version of the My Lai massacre in Vietnam. The government failed to get one manslaughter conviction in the case that implicated eight Marines in the deaths of 24 Iraqis in the town of Haditha in 2005.[..]

Kamil al-Dulaimi, a Sunni lawmaker from the Anbar provincial capital of Ramadi, called the plea deal a travesty of justice for the victims and their families. "It's just another barbaric act of Americans against Iraqis," al-Dulaimi told The Associated Press. "They spill the blood of Iraqis and get this worthless sentence for the savage crime against innocent civilians."

This is a disgrace.

Obama is not upholding his oath of office and that is an even bigger disgrace.

On This Day In History January 24

by: TheMomCat

Tue Jan 24, 2012 at 08:00:00 AM EST

Find the past "On This Day in History" here.

January 24 is the 24th day of the year in the Gregorian calendar. There are 341 days remaining until the end of the year (342 in leap years).

On this day in 1848, A millwright named James Marshall discovers gold along the banks of Sutter's Creek in California, forever changing the course of history in the American West.

The California Gold Rush began at Sutter's Mill, near Coloma. On January 24, 1848 James W. Marshall, a foreman working for Sacramento pioneer John Sutter, found shiny metal in the tailrace of a lumber mill Marshall was building for Sutter on the American River. Marshall brought what he found to John Sutter, and the two privately tested the metal. After the tests showed that it was gold, Sutter expressed dismay: he wanted to keep the news quiet because he feared what would happen to his plans for an agricultural empire if there were a mass search for gold. However, rumors soon started to spread and were confirmed in March 1848 by San Francisco newspaper publisher and merchant Samuel Brannan. The most famous quote of the California Gold Rush was by Brannan; after he had hurriedly set up a store to sell gold prospecting supplies, Brannan strode through the streets of San Francisco, holding aloft a vial of gold, shouting "Gold! Gold! Gold from the American River!" With the news of gold, local residents in California were among the first to head for the goldfields.

At the time gold was discovered, California was part of the Mexican territory of Alta California, which was ceded to the U.S. after the end of the Mexican-American War with the signing of the Treaty of Guadalupe Hidalgo on February 2, 1848.

On August 19, 1848, the New York Herald was the first major newspaper on the East Coast to report the discovery of gold. On December 5, 1848, President James Polk confirmed the discovery of gold in an address to Congress. Soon, waves of immigrants from around the world, later called the "forty-niners", invaded the Gold Country of California or "Mother Lode". As Sutter had feared, he was ruined; his workers left in search of gold, and squatters took over his land and stole his crops and cattle.

San Francisco had been a tiny settlement before the rush began. When residents learned about the discovery, it at first became a ghost town of abandoned ships and businesses whose owners joined the Gold Rush, but then boomed as merchants and new people arrived. The population of San Francisco exploded from perhaps 1,00 in 1848 to 25,000 full-time residents by 1850. The sudden massive influx into a remote area overwhelmed the infrastructure. Miners lived in tents, wood shanties, or deck cabins removed from abandoned ships.[13] Wherever gold was discovered, hundreds of miners would collaborate to put up a camp and stake their claims. With names like Rough and Ready and Hangtown, each camp often had its own saloon and gambling house.

More good news?

by: ek hornbeck

Mon Jan 23, 2012 at 18:04:37 PM EST

Perhaps Tom Miller, the head of the executive committee negotiating a foreclosure fraud settlement, is feeling a little too much heat today.
...
(L)et's just go back to what this is all about, because it has very little to do with the usual media storylines and narratives running about. Somewhere along the lines the financial industry stopped keeping the records they were legally required to keep to ensure that they had standing to foreclose on borrowers. Instead of untangling the mess, they participated in a cover-up, by fabricating documents and affidavits on a mass scale to sucker courts into allowing foreclosures. That is no different than criminal theft. If I came into a courtroom looking to foreclose on a homeowner, and my proof of ownership was a plastic bag with the words "I OWNZ THAT" scrawled on it, that would be little different, under the eyes of the law, from what the banking industry has done over the last decade. Strip away all the complexities in the law and that's what you're left with.

So state and federal regulators attempting to settle with banks for stealing homes are really violently upsetting any pretense of a rule of law in America. Setting aside the fact that the penalty is completely inadequate and there's no indication that banks will actually follow through on the specifics, some things are more important than a financial settlement can provide. The current group of big banks and loan servicers broke the richest market in the world, the residential US housing market. They really do need to pay for this. Because if they don't, they will continue to violate the law as they have been doing unchecked for the past several years.

The lights will be burning late tonight as they frantically re-write the State of the Union.

Good.