The Obama Administration

The LIBOR Scandal's Lies

While regulators should have done more, it’s the banks that must be punished for their manipulation of interest rates.

(Flickr/Hugeword Picture)
The days between the Fourth of July and Bastille Day on the 14th are known for fireworks on both sides of the Atlantic. This year, more rockets and firecrackers than usual were going off, but they were inside hearing rooms in the British Parliament and the U.S. Congress. Barclays bank announced that it had been fined more than $450 million by regulators from both countries, and its CEO, Robert E. Diamond Jr., and COO, Jerry del Missier, both resigned. The fines were part of a settlement that granted Barclays immunity from potentially worse punishment for its manipulation of interest rates. The press reported that 10 to 12 other large banks (including HSBC, Citigroup, and JPMorgan Chase) were also under investigation. The big financial scandal of July 2012, or at least its first half, involves manipulation of the London Interbank Offered Rate, or LIBOR. The press has used a variety of estimates of the impact of LIBOR, ranging as high as $500 trillion (the Bank of England estimate) to $...

Obama's Lackluster Storytime

(Flickr / Daniel Ogren)
President Barack Obama and first lady Michelle Obama sat down with CBS News’ Charlie Rose for an exclusive interview that will air on CBS Sunday Morning . In the interview, Obama was pressed by Rose to describe what he thinks has been the biggest mistake of his presidency. The president replied that he thought he got the policies correct, but his salesmanship was lacking. Specifically, Obama said: When I think about what we’ve done well and what we haven’t done well. The mistake of my first term—couple of years—was thinking that this job was just about getting the policy right. And that’s important. But the nature of this office is also to tell a story to the American people that gives them a sense of unity and purpose and optimism, especially during tough times (Via Mediaite ). Zach Beauchamp suggested a post on this, implying facetiously that Obama’s comments vindicate Drew Westen’s argument . Of course—given my previous posts —I think Obama’s comments better reflect how easy it is...

The American Jobs Act Still Exists

Mitt Romney is back to accusing President Obama of having no plan for economic growth: The president’s policies have not gotten America working again. And the president is going to have to stand up and take responsibility for it. I know he’s been planning on going across the country and celebrating what he calls ‘forward.’ Well, forward doesn’t look a lot like forward to the millions and millions of families that are struggling today in this great country. It doesn’t have to be this way. The President doesn’t have a plan, hasn’t proposed any new ideas to get the economy going—just the same old ideas of the past that have failed . [Emphasis added] The political world has all but forgotten the American Jobs Act , but it remains on the table as Obama’s plan for juicing the economy. If passed in full, the Jobs Act would cut payroll taxes for businesses, double the size of the payroll tax cut for individuals, give aid to states to prevent public sector layoffs, and increase infrastructure...

The DOJ Takes Aim at DOMA

Late on Tuesday, when just about everyone had already left for their Fourth of July celebrations, the Department of Justice announced that it was asking the Supreme Court to take two DOMA lawsuits, promptly. The first was no surprise: You know that the First Circuit already, very cautiously, declared in the Massachusetts cases ( Gill v. OPM ) that DOMA’s Section 3 was unconstitutional. That’s the section that says that, for federal purposes, marriage is between one man and one woman—and therefore that the United States will refuse to recognize any state’s decision to marry same-sex pairs. It’s because of DOMA Section 3 that I’m married in Massachusetts but not in the United States. If that were overruled, the federal government would have to treat me as married, for purposes such as taxes, social security, inheritance, and so on. I wouldn’t have to file as single hither but as married yon. You recall the backstory here, right? Last year, Obama’s Justice Department declared that it...

If Texas Doesn't Expand Medicaid, Two Million Will Be Without Options

(Flickr/ José Goulão)
It's no secret there's a health-care crisis in Texas. The state has the biggest uninsured population in the country with around 6.2 million—or a quarter of all residents—lacking insurance. As a Kaiser Health News report highlighted , poor and uninsured Texans must sometimes wait more than 24 hours in emergency rooms, where treatment is most expensive, while more cost-effective health-care options, like preventative care, are out of reach. The Affordable Care Act was supposed to change all that. It offered new avenues for health-care coverage to people at all income levels by expanding Medicaid. But yesterday's Supreme Court decision made it optional for states to expand their Medicaid coverage. "There's going to be a donut hole in the middle if a state doesn't proceed," says Edwin Park, vice president for health policy at the D.C.-based Center on Budget and Policy Priorities. In Texas, if the state chooses not to expand its services, almost two million people may be stuck in limbo—...

Why It's Still in States' Interests to Expand Medicaid

(Flickr/ernstl)
For supporters of the Affordable Care Act, it was hard to hear—over the cheering—anything besides the fact that the Supreme Court today kept the law almost entirely intact. But the Court did make a slight change to a crucial part of the ACA: Medicaid expansion. Under the law, by 2014, states are supposed to extend their Medicaid programs to cover people under 65 with incomes up to 133 percent of the federal poverty line. An analysis from the Center on Budget and Policy Priorities shows that means 17 million more people would have access to health care over the next 10 years. Before today, it looked like states didn't have much choice in the matter. If they didn't make the necessary expansion, they would lose all federal Medicaid dollars. In their brief, states argued that wasn't much of a choice—federal Medicaid grants simply constitute too much money to lose. Back in February, Timothy Jost had a very helpful explanation of the states' argument on this point in Health Affairs . As he...

Why Does The Atlantic Hate Women?

The picture alone filled me with dread: a baby in a briefcase. (Do go look at Jessica Valenti’s hilarious compilation of images from this genre.) That sick feeling only increased when I got to the hideous ­headline: “ Why Women Still Can’t Have It All .” There they go again! Once again, The Atlantic has put on its spike heels to gleefully dance on feminism’s head, this time reviving the imagery of the “ mommy wars ” while trotting out an astounding successful woman to bemoan her failure. Veteran journalist Caryl Rivers has accurately diagnosed this as “ The Atlantic ’s Woman Problem .” Someone there doesn’t like us, except when we’re agonizingly single, or home with our babies, or killing off men’s careers. Someone there got stuck on some 1980s Time magazine misinterpretation of feminism as exhorting us all to be “career women” (does anyone really use that term?) in shoulder pads and sad little bowties, leaving our babies home alone, refrigerator open, to fend for themselves while we...

Issa's Contemptible Vote

(AP Photo/J. Scott Applewhite)
If contempt of Congress ( current polls show a whopping 17% approval) is a crime, we are a nation of criminals. That thought leapt to mind at the news that the House Oversight and Government Reform Committee, chaired by Representative Darrell Issa (R-CA.) has voted to ask the full House to hold Attorney General Eric Holder in contempt because of his refusal to turn over internal records relating to the administration’s response to the “Fast and Furious” gun-walking scandal in Arizona. In response to the prospect of that vote, Deputy Attorney General James M. Cole announced that President Obama had asserted executive privilege over the documents requested. The cable news channels are crackling with faux outrage on both sides. Republicans are shocked that the Attorney General and the White House are covering up what must surely be dreadful misdeeds. Democrats are outraged at this partisan attempt to besmirch the administration by baselessly suggesting misconduct and a high-level cover-...

Romney’s Worsening Latino Headache

Mitt Romney’s Latino problem just got a lot worse. President Obama’s executive order to the immigration service to cease deportations of immigrants who came here without documentation before they turned 16 has gone as far as a president can go without bringing Congress along with him. A president can’t change the legal status of the undocumented by himself, but he can issue orders to Homeland Security, which is precisely what Obama did. This means that should Romney win the fall election, it’s entirely a matter of his discretion whether to continue, amend or revoke Obama’s order. It also means he has to take a position on the order while campaigning—and given the importance of the order, he has to take a position damn quick. Many Republicans will pressure him to announce he’ll rescind it. The nearly all-white Republican base, certainly its Tea Party wing, will want him to rescind it. But announcing that will not only reduce Romney’s already meager Latino support, it will likely...

Obama: Romney Equals Bush

(AP Photo/Carolyn Kaster)
Back in April, President Obama gave a speech to the American Society of News Editors, where he excoriated Mitt Romney—and the Republican Party—for its adherence to the “roadmap” devised by House Budget Chairman Paul Ryan. In the speech, Obama presented the Ryan roadmap as modern Republicanism, distilled to its essence. He attacked the plan for its large, across-the-board tax cuts, its complete extension of the Bush tax cuts, and its plan to privatize Medicare. More importantly, he spelled out the implications of Ryan’s budget: to pay for his tax cuts, the federal government would have to suck the marrow from its social services. Everything from food stamps to Pell Grants would see the chopping block, and the federal government would be reduced to a mechanism for upward redistribution, defended by a standing army. Since then, Obama has adjusted his message with attacks on Bain Capital and Romney’s time as governor of Massachusetts, in an attempt to present the Republican nominee as...

Obama, Post-Post-Partisanship

(Flickr/Matt Ortega)
Over the past month or two, as the president’s political position has continued to erode and he becomes more vulnerable, an extraordinary and vaguely preposterous conversation has taken shape. Variations on it have been advanced by everyone from former presidents chatting with Hollywood moguls on news cable TV to esteemed Sunday-morning newspaper columnists picking their way through the racial bric-à-brac of the presidential psyche. In a way, it’s the corollary of the birther discussion at the other end of the spectrum, which is to say that it’s a conversation we’ve never had about any other president. The upshot of this conversation is whether it would be a betrayal of everything for which the president has been a metaphor, and of all the attendant mythologies that have accompanied his election and time in office, if he should offer a critique of the record of the man running against him who is running on that same record. In short, as we debate fundamental matters having to do with...

Should Obama Have Abandoned Health Care Reform?

Princeton University Press
I've just finished George Edwards's Overreach . In essence, the book applies the lessons of On Deaf Ears and The Strategic Presidency to the Obama administration. If you've read the two earlier books you needn't make it a high priority, but if you haven't it's as good an introduction to the work of the most important contemporary scholar of presidential politics as anything. The Obama administration reconfirms a lot of what we already know—presidents have essentially no demonstrable ability to shift public opinion in their favor and only a very limited and contingent ability to shift marginal votes in Congress (which is become more attenuated because of increased polarization in Congress—especially for a Democratic president getting opposition support for a major initiative is nearly impossible, which in turn increases the leverage of marginal Democrats in Congress). As the title suggests, the main thrust of the book is that the Obama administration made the same mistakes most...

Inconsistent Mandate

(Flickr/Gage Skidmore)
Barack Obama and Mitt Romney's stances on health insurance mandates stand as one of the great ironies of the 2012 presidential race. At various points both have opposed the mandate and both have advocated for the idea, successfully forcing the measure into legislation. The only problem is that they have evolved in opposite directions. The Obama campaign made the strategic decision to carve out a niche as the anti-mandate candidate during the 2008 Democratic primary. "It forces everyone to buy insurance, even if you can't afford it, and you pay a penalty if you don't," said one ominous ad from the 2008 campaign that Obama used to attack Hillary Clinton. That staunch opposition of course changed once Obama assumed office and faced the realities of crafting legislation. His team realized any measure that prevented insurance companies from discriminating on the basis of pre-existing conditions would collapse without a mandate, as healthy individuals would flee the market, leaving only the...

A Gun to the Debt-Ceiling Fight

(Flickr/zieak)
If Barack Obama turns out to be a one-term president, historians may mark the summer of 2011 as the moment his failure became inevitable. At that point, the new right-wing Republican House majority declared the national debt hostage and demanded Obama’s surrender to them on all points of domestic policy. When the debt-ceiling statute required authorization of a new federal borrowing limit, they refused to vote on the measure without massive cuts in federal spending and no increase in federal revenue. The crisis was averted by the appointment of an idiotic congressional “supercommittee” that was supposed to identify future cuts, matched with a set of “automatic” cuts that were to take effect if the “supercommittee” failed to come up with a compromise aimed at reducing federal debt. Not surprisingly, the “supercommittee”—perhaps better known as the “Clark Kent committee”—was unable to produce a compromise. The debt showdown, which paralyzed Washington for much of spring and early summer...

How the Attack on Massachusetts Could Backfire

This morning, the Obama campaign released its first video on Mitt Romney’s tenure as governor of Massachusetts: There are a few obvious problems with this line of attack. Even with its fiscal problems and slow job growth, Massachusetts wasn’t a terrible place to live under the Romney administration. The point is to show that Romney is offering the same “robotic” line to voters, but how does that resonate when few people associate Massachusetts with “bad governance?” The big problem for this attack is health care reform. Not only was Romney’s health care bill the signature accomplishment of his administration, but it formed the basis for the Affordable Care Act, which may become the signature accomplishment of President Obama’s administration. Romneycare remains popular with Massachusetts voters, and it’s a genuine achievement for the Republican nominee, even if he can’t present it as an asset in his campaign. By attacking Romney’s tenure, the Obama campaign could put itself in the odd...

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