The Obama Administration

The Next Battle at the Fed

AP Images/Pablo Martinez Monsivais
AP Images/Pablo Martinez Monsivais W ith the Administration’s stunning decision to name Janet Yellen to chair the Federal Reserve, at least one major government institution will weigh in strongly on the side of economic recovery, right? Well, maybe. First, of course, Yellen has to be confirmed. That, thankfully, seems a good bet. But there is also the problem of three vacancies on the seven-member Fed Board of Governors, which President Obama will soon fill. If the wrong people are appointed to these jobs, Yellen’s ability to aggressively use low interest rates to strengthen the recovery will be destroyed. But why would Obama do that? The Treasury and Wall Street crowd who dearly wanted Larry Summers rather than Yellen will now be focusing on the three other seats. If they can’t get their man in as chair, at least they can narrow the options of the woman who got the job. The same insiders who pressed Obama to go out on a limb for Summers will be pushing hard for Wall-Street-friendly...

Mission Affordabled: Why Obama’s Website Problems Aren’t “His Iraq”

AP Photo/J. Scott Applewhite
AP Photo/Jacquelyn Martin, File Y es, the Affordable Care Act website rollout has been a fiasco. And, as always happens when political catastrophe strikes, the wave of bad analogies has rushed in its wake. One in particular is gaining ground: Healthcare.gov is for Barack Obama’s presidency what the invasion of Iraq was to George W. Bush’s administration, complete with outraged liberal reactions to it . Here’s the funny thing: it’s a bad analogy, which could turn out to be accurate … but probably won’t. To start with, the fact that people died in Iraq, as opposed to the inconvenience involved in a malfunctioning website, doesn’t make it a bad analogy. The analogy has to do with presidential decisions; it’s about process, not outcomes, and there’s nothing at all wrong with that. No, what makes it a bad analogy is that Iraq War was misconceived from the start, and the actual events of the war, to a large extent, made obvious what some saw from the beginning. With the exchanges, on the...

No, Healthcare.gov's Problems Will Not Offer the GOP Political Deliverance

Some of the healthcare.gov contractors testifying today.
Today marks the beginning of what will surely be a series of hearings in Congress at which members will fulminate and shake their fists at various people who had responsibility for creating Healthcare.gov. It's quite something to see some congressman who's still struggling to figure out how to work the Blackberry his staff gave him asking questions about beta testing and error logs and a bunch of other stuff he doesn't begin to understand. But maybe the weirdest thing is the feeling one gets from the GOP over the last few days, which can be summarized as, "We got 'em now!" They seem to believe that the website problems are going to provide the deliverance they've been waiting for after the political disaster of the government shutdown. Here's a little prediction: Feigned Republican outrage over the ACA web site is going to be just as effective in reversing the GOP's current fortunes as feigned Republican outrage over Benghazi was in undoing Barack Obama's re-election bid. Nevertheless...

Big Bank Punishments Don't Fit Their Crimes

AP Images/Richard Drew
With the Justice Department desperate to rehabilitate its image as a diligent prosecutor of financial fraud, securing headlines along the lines of “the largest fine against a single company in history” is a lifeline. In a tentative deal , the Department would force JPMorgan Chase to pay a $9 billion fine and commit $4 billion to mortgage relief, to settle multiple investigations into their mortgage-backed securities business. The bank stands accused of knowingly selling investors mortgage bonds backed by loans that didn’t meet quality control standards outlined in its investment materials. JPMorgan Chase wants to “pay for peace” in this deal, ending all civil litigation around mortgage-backed securities by state and federal law enforcement, though at least one criminal case would remain open. But for the Justice Department to truly start fresh, and fulfill their mission of stopping corporate fraud and preventing it from occurring again, they will have to compel JPMorgan to admit full...

Before Long, We'll Forget about the Problems with Healthcare.gov

I'll confess that I was pretty surprised about the difficulties Healthcare.gov has been having. After all, despite all the complexities of creating this system, it wasn't exactly hard to foresee that the workability of the exchange website would be a very big deal. So you'd think that once a day or so for the last six months, the President would be calling the Secretary of Health and Human Services and saying, "This is going to go smooth as silk, right? Don't let me down, Kathleen." And she'd light a fire under everybody reporting to her to make damn well sure it did, so they wouldn't have to scramble like mad to fix a hundred problems once it had already launched. While the different things the site has to do certainly present technical challenges, they're hardly insurmountable. Now, you might just put it down to the fact that the whole thing was outsourced to private corporations, and we all know you can't trust the private sector to do anything without screwing it up (ha!). But...

Continuing the Republican Civil War with Immigration Reform

Flickr/Elvert Barnes
Even before the shutdown crisis was over, President Obama was already making it clear that his next priority was going to be immigration reform. So can it actually happen? Right after the 2012 election, one Republican after another was saying that if reform didn't pass, their party was all but doomed, since they'd be blamed for stopping it. The country's largest minority group would be driven even further away from them as a result. You might think that after the political disaster of the shutdown, Republicans would be even more eager to find something, anything that would improve their party's image. But maybe not. Over the weekend, Marco Rubio said that Republicans wouldn't allow immigration reform to pass because Obama was super-mean during the shutdown. "The president has undermined this effort, absolutely, because of the way he has behaved over the last three weeks." Rubio's not the only one with hurt feelings. "It's not going to happen this year," said Representative Raul...

Four Reasons We Don’t Need to Count Down to a January Shutdown

AP Photo/ Evan Vucci
AP Photo/J. Scott Applewhite T he government has re-opened, the debt limit disaster was avoided, and something resembling peace has broken out in Washington. The cynics, however, have been quick to note that all of this is only temporary, with the next shutdown deadline falling on January 15. This round of budget squabbling resolved basically … nothing, so another debacle is likely . Ted Cruz is already threatening a repeat of what he just put the nation through. Don’t count on a sequel to the 16-day hell we just witnessed, though. Barack Obama certainly doesn’t want a shutdown. And this time, Republicans probably won’t force one. Of course, government shutdown has always been a bad idea, as Republicans just spent three weeks proving. But the very fact that they did it despite knowing that it was a terrible plan (or at least most of them knowing it was a terrible plan) suggests it could happen a second time, at least unless something new has happened to change things. So why won’t it...

Beware a Grand Bargain

AP Photo/ Evan Vucci
W ill President Obama and the Democrats win a major battle only to lose the war? The longterm war that Republicans are fighting is a deadly serious struggle to destroy the most important and valued achievements of the New Deal-Great Society legacy, Social Security and Medicare. Wall Street billionaires like Peter G. Peterson and Stanley Druckenmiller have been softening the ground for decades by claiming that Social Security is bankrupting the country and destroying future prospects of America’s youth. So there is a kind of pincer movement between the scorched-earth Republicans of the Tea Party, willing to shut the government if they don’t get their way, and the more mannered Wall Street Republicans who want to gut social insurance for the alleged good of the country. It adds up to the same thing—cut or privatize the Democrats’ two crown jewels. What’s worse, even though Nancy Pelosi and Harry Reid were able to maintain 100 percent party unity in their House and Senate caucuses in...

A Spine Is a Useful Thing to Have

AP Photo/Charles Dharapak
AP Photo/ Evan Vucci H ow much damage have the Republicans done to themselves going into the elections of 2014 and 2016? And has President Obama resolved to hang tough, not just in this round, but in the one that follows and the one after that? The contrived shutdown crisis proved two things. It proved that Republicans are split down the middle between a lunatic, fundamentalist wing that prefers wreckage to governing and a pragmatic wing often allied with Wall Street. And it proved once and for all that being tough in the face of blackmail beats appeasement that only courts more rounds of blackmail. Business elites applied escalating pressure on the Republicans not to let the United States default on its debt. In the end, 144 House Republicans voted against the measure, and 87 voted for it. That 144, though, exaggerates somewhat the true strength of the Tea Party faction. Some of that vote was a protest against the failure of the Democrats to give anything in return. For now, public...

How Conservatives Reacted to the Shutdown/Default Deal

The despair that comes from knowing poor people are going to get health insurance. (Flickr/Jerry Furguson Photography)
Yesterday, John Boehner told a Cincinnati radio station, "We fought the good fight. We just didn't win." That's one way to look at what happened; another is that frightened Republicans allowed their most unhinged members to pull them into a political disaster that any rational person could have foreseen (and many certainly did). That Republicans would never get what they wanted—the destruction of the Affordable Care Act—was obvious. That they'd come out of it with almost nothing at all was nearly as predictable. So now that the battle is over, how are conservatives reacting? Let's take a look around. First, we've got some people who are seething with rage at their party for not hanging tough until they destroyed Obamacare: "I was trying to think earlier today if ever in my life I could remember any major political party being so irrelevant … I've never seen a major political party simply occupy placeholders, as the Republican party is doing." — Rush Limbaugh "Republican leadership has...

How Liberals Should Feel about the Shutdown/Default Agreement

Don't go too wild with the celebrations. (Flickr/Susana Fernandez)
We have a deal. At this writing no votes have been taken, but by the time you read this, the agreement brokered between Harry Reid and Mitch McConnell may well have passed one or both houses. So how should liberals feel about it? Let's break it down. 1. The government is funded through January 15th at sequestration levels. Even though sequestration was supposed to be painful for both sides, it turned out that Republicans were quite happy about it. Democrats would have preferred to reverse sequestration and have a less arbitrarily slashed budget, but this isn't the end of the world. Conclusion: Meh. 2. The debt limit is raised until February 7. When details were first coming out about the agreement, one report I read in Politico implied that henceforth, debt-ceiling increases were going to proceed on what is known as the McConnell Plan, since Mitch McConnell once proposed it (before changing his mind). Under that plan, Congress could pass a bill refusing to increase the ceiling, but...

Take the Fourteenth!

AP Images/Charles Dharapak
Remember the proposals that were current back in 2011 to have President Obama invoke his authority under the 14 th Amendment to keep funding America’s public debt, even without approval from Congress? Well, that proposal has suddenly become highly relevant again, even urgent. Prior to 1917, Congress did not even require periodic legislation to increase the debt ceiling. Statutory approval was added as part of the large increase in World War I borrowing. The 14 th Amendment, approved after the Civil War, included several provisions, but the key one for our purposes was Section 45. It provided that: “The validity of the public debt of the United States, authorized by law, including debts incurred for payments of pensions and bounties for services in suppressing insurrection or rebellion….shall not be questioned.” The intent was to make sure that Union war debts would be paid and Confederate ones would not be. A number of constitutional scholars believe that this provides ample authority...

Eight Things about the Shutdown/Default Crisis that Are Still True

AP Photo/Chuck Burton
AP Photo/J. Scott Applewhite A s we approach default, it seems like every hour brings a new development in our crisis, and you'll be forgiven if you aren't able (or can't bear) to follow every new proposal, abortive vote, and angry denunciation. So it's a good time to remind ourselves of some things that were true yesterday and last week, and are still true today. These are the things we need to keep in mind as this horrid affair tumbles forward. 1. We all know how this ends. We've almost forgotten this, but if John Boehner brought a bill to the House floor today funding the government and raising the debt ceiling without any idiotic anti-Obamacare provisions, it would pass, and the crisis would be over. I repeat: it would pass, and the crisis would be over. And yes, Tea Partiers would be mad at him. They might even try to stage a coup and install one of their own as Speaker. But they'd probably fail. And Boehner would not only be saving the country any more misery, he'd be saving his...

Old Conservatives Can't Learn New Tricks

AP Photo/Alex Brandon
AP Photo/Alex Brandon I f President Barack Obama and congressional Democrats wanted to maximize the political advantage they're getting from the shutdown/default crisis, they'd agree to at least one part of the short-term deals Republicans have offered, raising the debt ceiling for only six weeks at a time. Then we'd have one default crisis after another, and the standing of the GOP would keep on its downward trajectory until—let's just pick a date at random here—November 2014. But Republicans won't do that; they're now insisting (and good for them) that the deal has to extend at least a year into the future so we don't have to keep going through this. If they get that deal, though, the issue will fade and voters could start to forget how reckless Republicans have been. They could forget, but I'm guessing Republicans won't let them. It isn't as though the ultimate conclusion of this crisis is going to result in a chastened GOP, ready to be reasonable and assure the public it can...

Values Voter 2013: War, War, Everywhere, and Not a Stop to Think

AP Photo/Jose Luis Magana
AP Photo/Jose Luis Magana W hen Senator Rand Paul took the stage at last weekend's Values Voter Summit, it was clear he needed to up the stakes. Alongside a handful of other 2016 presidential contenders, Paul was auditioning for the far right’s support in a speech to the annual conference of Christian conservatives hosted by the Family Research Council at the Omni Shoreham Hotel in Washington, D.C. Making his task far more difficult was that fact that one of his rivals had just hit a home run. Ted Cruz, the Republican senator largely blamed for orchestrating the government shutdown in a last-ditch effort to defund the Affordable Care Act, left the podium after a barn-burner speech punctuated by yells of protest from a handful of immigration activists who had entered the conference incognito. Each time the protesters interrupted Cruz’s speech, the audience throbbed with exhilaration and rage. Cruz—who would go on to win the 2016 presidential straw poll—paced the stage like a...

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