Bob Schwartz

Category: Government

The Untouchables: No Justice On Wall Street

The Untouchables
This week, PBS Frontline aired a follow-up to its powerful documentary Money, Power & Wall Street, which covered the origins and aftermath of the 2008 financial meltdown. The Untouchables is an equally scathing and disturbing story about the failure of the Justice Department to prosecute any Wall Street executives for fraud, in the wake of their apparently knowing securitization and sale of worthless mortgages.

For those who wonder whether investigative journalism still matters, this happened yesterday:

Lanny Breuer, the head of the DOJ Criminal Division featured in the documentary, resigned. Questions about why criminal prosecutions have taken so long—and whether there will ever be any—linger like a bad odor.

Mary Jo White, a former federal prosecutor, was nominated to be the next chairwoman of the Securities and Exchange Commission. Richard Cordray, another former prosecutor, was renominated to be director of the Consumer Financial Protection Bureau. The president said these nominations would help prevent a financial crash like the one he inherited four years ago.

People say that the new movie Zero Dark Thirty serves as a thought-provoking wake-up call about the role of torture and, ultimately, the effectiveness and judgment of President Obama. It has been said that those who support the president might find the film unnerving.

The Untouchables is much more unnerving, not just in looking at the president, but in looking at Attorney General Holder, at overseers,  and at all the others who seem to be strangely—or not so strangely—beholden to Wall Street.

Watch The Untouchables, then go back and watch Money, Power & Wall Street. Like all great investigative journalism, it is darkly entertaining, and like all unvarnished views of how government works, it is profoundly discouraging. But necessary.

The Real Basics of the Speech

Inaugural Address 2013
Self-congratulation can be unbecoming, even when it is deserved. It can also be unhelpful and even counterproductive.

The immediate aftermath of the election was a storm of emotions for Democrats. It combined exhilaration at winning with relief from avoiding an unthinkable alternative. The first weeks seemed to be filled with a Republican state of denial, to which “elections have consequences and we won” seemed a pretty succinct response.

Then the ice started to break a bit. A few concessions were made, with Republicans implicitly acknowledging that things were different, if not subject to a sea change. Then President Obama delivered his Inaugural address.

Judging by the reaction, for some liberals/progressives, this was the missing second beat of election night. Obama won, and now he was openly announcing where he stood on the supposed left/right divide. Verbal high-fiving, fist-bumping and chest-thumping could be widely heard. The address was pronounced a liberal/progressive triumph.

And looked at one way, it was. But that is a self-limiting analysis, and actually robs the speech of its power, and robs Obama of his vision and careful eloquence.

The speech had three basic points:

These are our shared American principles.
Government works from the bottom up, not the top down.
We have to live in the present not the past.

Labeling that liberal, progressive or otherwise, no matter who is doing the labeling, short-circuits a potentially valuable conversation and possibilities of common ground. The victory lap, even if it is meant to be dispiriting to the presumed opposition, doesn’t help.

Obama supporters say that he was too conciliatory in his first term, that he unwisely—even naively—believed that compromise was possible. Now they see and hear the less yielding partisan they always believed he was.

They are only partly right. Obama will stand more firmly, but if you listen to the speech beyond the specifics you may be happy to have heard, it was all about those three simple points. Set aside the labels and even the initiatives, and just talk about the basics. The challenge Obama set is for those who claim true Americanism to disagree.

Fish and Assault Weapons

Fish Head Bullet Weights
Tomorrow, Barack Obama unveils a series of proposals to curb gun violence. Among them is likely to be a reintroduction of a federal ban on the sale of assault weapons, a ten-year prohibition that expired in 2004. Many are pessimistic, believing that such a measure might pass the Senate, but will certainly not make it through the House.

There is a fair amount of discussion about whether people hunt with assault weapons, and if they do, whether they should. It’s a good question, but not nearly as fascinating as the eccentric question of whether people fish with assault weapons.

The short answer is that up until a few years ago, two states did allow fishing with guns. New York State has since repealed its law, leaving Vermont as the only state where you can legally shoot fish (in a lake, but presumably still not in a barrel—except in the privacy of your own home).

Spring hunting for pike is in fact a Vermont tradition. Here is the law:

Vermont Statutes
Title 10: Conservation and Development
Chapter 111: FISH

§ 4606. Taking fish by unlawful means

(e) In Lake Champlain pickerel, northern pike, carp, garfish, bowfin, mullet, shad, suckers, bullhead, and other cull fish may be taken from March 25 to May 25 by shooting and spearing in other than spawning areas designated under section 4140 of this title. For the purposes of this subsection, Lake Champlain includes all connected waters at the same level.

Gun experts do not generally advise shooting in water at all, for the safety of bystanders. But if you do plan to set your sites on Lake Champlain fish, it is likely that assault weapons will still be legal this spring, so nothing other than a sense of fairness, or good sense in general, should be stopping you.

If Not Now When: Today Is the Day to Talk About Guns

National Rifle Association - Newtown
In the immediate hours after the Newtown, Connecticut shootings, Presidential spokesman Jay Carney was asked whether this would move the President on the issue of gun control. “Today is not the day to talk about guns,” he replied. The focus, he said, should be on the victims and their families.

A few massacres ago, around the time of the Colorado movie theatre shootings, that sounded better. The boldness of those activists wanting to instantly seize the moment and make a point about gun control seemed insensitive. There would be time enough, soon, to talk about public policy.

“Today is not the day,” doesn’t sound so good or so responsible any more. Whether or not we go for years without another incident like this, or whether, as is more likely, it is a matter of a few weeks or months, the day to talk is today.

The National Rifle Association and the related Second Amendment groups are the most powerful and successful lobby in modern America. Grover Norquist is a pretender, thinking that his threats of losing elections have changed America. As much as Americans hate taxes, many love having their guns, and the NRA has helped those Americans get them, keep them and be allowed to use them.

The NRA’s biggest, though not only, problem is that they have constitutional paranoia. They perceive even the slightest hint of regulation as the first step on a slippery slope. That paranoia has mutated and spread to politicians of almost all types. Except that those politicians aren’t pathologically afraid of guns being taken away; they are pathologically afraid of losing their jobs.

Fortunately for him, the President just got his contract renewed for four years. Even if he has something to propose that won’t get the support of his own party, let alone Republicans, even if what he proposes will have trouble passing constitutional muster, that should not stop him, if he is the man of principle we believe him to be.

The dead can’t vote, and in the case of the children killed today at Sandy Hook Elementary School, they weren’t old enough anyway. So we have to speak for them and vote for them. Today is the day. President Obama, lead us and show us what to do.

John Boehner and the Judgment of History

John Boehner
John Boehner says he isn’t worried that compromising on taxes will result in his losing his job as House Speaker. It is a matter of principle.

He may be telling the truth, but it doesn’t matter.

When asked whether Americans will blame the Republicans for the stalemate, his answer isn’t that he doesn’t care, but that it would be wrong. President Obama and the Democrats are to blame, even if polls say that many people believe otherwise.

That doesn’t matter either.

The question isn’t whether Boehner cares about keeping his job (which he does) or whether he cares that many Americans blame him and the Republicans (which he does).

The question is about history.

Republicans have for quite a while seemed to be unconcerned about the judgment of history. There’s a practical reason for this: people vote, not history. And most people aren’t that interested in history. Anyway, history is often equivocal, so in those moments when people do care, history can be spun to say almost anything.

But, for example, history continues to be a problem for the Republicans and their most historic President. The principles of and lessons from Lincoln are not always congruent with current GOP practice and rhetoric. This is how Southern Republicans during the Civil Rights era didn’t just come to distance themselves from the Great Emancipator; they fled the party.

History is turning on the Republicans. An entire two-term Presidency—eight years of George W. Bush—has had to be nearly buried so that the party could move on. The most recent financial misstep, the 2011 debt ceiling debacle, looked at first like it could be blamed on an ineffectual President. But history has stepped in. Obama’s leadership has been established and electorally endorsed, And now that event looks like a dark mirror of this moment—a mirror featuring John Boehner’s face.

When the movie of this moment is made, the question for Boehner is who he wants to be. He’s not going to be Lincoln, he’s not going to be Thaddeus Stevens. The way it looks now, he may be one of those supporting characters, a middling Congressional leader serving as an antagonist, helping to move the action along by opposing it. He is a decent man, he may yet keep his Speakership, and the country may yet, hopefully, avoid another crisis. But history won’t care about any of that. It is ruthless in its judgment, and John Boehner still has time to sway it.

In Praise of Congressional Mediocrity

Roman Hruska
Roman Hruska was United States Senator from Nebraska from 1954 to 1976. He was a leading conservative, and was anything but a mediocre legislator. But when Richard Nixon appointed G. Harold Carswell to the Supreme Court in 1970, Hruska had this to say about claims that Carswell was less than qualified:

“Even if he were mediocre, there are a lot of mediocre judges and people and lawyers. They are entitled to a little representation, aren’t they, and a little chance? We can’t have all Brandeises, Frankfurters and Cardozos.”

Carswell was not confirmed. And despite Hruska’s accomplishments, he is best known today for his defense of public mediocrity.

As we watch many in Congress talk and talk and talk about why they are not doing anything—except talking—we might remember what Lincoln said: “Better to remain silent and be thought a fool than to speak out and remove all doubt.” Or we might go back to Hruska.

Both the Senate and the House have had their share of greatness. The Senate has been a particularly notable body, even if we can’t have all Henry Clays, Daniel Websters and Robert Tafts. The House is a more mixed bag and, as “the people’s house,” maybe it should be.

But at the heart of Hruska’s statement is the question that faces us every day when we look at our national legislators. Do we want to be represented by people at least as good and capable as us—as honest, as hard-working, as smart, as trustworthy, as caring as us? Do we lower that down to a standard of people merely capable of getting elected? Or do we, contra Hruska, raise our standard and look for people better than we are in all the ways that matter? Even if we can’t have all the best, should we ever settle for mediocre?

Reductio Ad Scalia

Justice Antonin Scalia
Supreme Court Justice Antonin Scalia was asked yesterday why his writings compare homosexuality to bestiality and murder. Answering a Princeton freshman, Justice Scalia said:

“It’s a form of argument that I thought you would have known, which is called the ‘reduction to the absurd’. If we cannot have moral feelings against homosexuality, can we have it against murder? Can we have it against other things?”

(“I thought you would have known” seems a bit of a put down. This may have something to do with Justice Scalia having attended Georgetown undergrad, as opposed to Justices Samuel Alito, Sonia Sotomayor and Elena Kagan, all of whom attended Princeton.)

This is a common theme in the logical argument against cultural and moral relativism, particularly when it comes to homosexuality. And it is a provocative argument, as far as it goes. If we are to make no moral judgments about sexuality, then each and every type and instance of behavior is a matter of choice—polygamy, bestiality, you name it. Once we admit morality, we are broadly entitled to hold to it and the distinctions we make, even in the face of popular disagreement.

This is something worth thinking about as we make private and public policy, but it is far from dispositive. Some think we are at our best and doing our best when we hold strictly—including the “strict” construction of the Constitution, or for that matter of the Ten Commandments. But the real world has a funny way of demanding flexibility and fluidity from our philosophers, lawmakers, law interpreters and enforcers.

So Justice Scalia is not entirely wrong. He and all of us are, to avoid the absurd, allowed to attach particular values to homosexuality, bestiality, polygamy, divorce, whatever. There are probably still some out there who believe that slavery is moral; we know at least that it still thrives in the world. As for killing, morals differ for different circumstances; if not we would have outlawed killing entirely, or would admit that we don’t make a clear enough distinction when we seem to be legislating hypocritically.

But the story doesn’t end when we prove logically that different morals are legitimate. In the real world, people suffer at the hands of our “moral feelings” as Justice Scalia calls them. In some ways, it’s always about the suffering. In the face of “moral feelings” among some that there was nothing wrong with slavery, much of America agreed to its greatest national conflict to relieve an equally great suffering. Those who have legitimate “moral feelings” about homosexuality and marriage might want to be weighing their profound discomfort against the suffering of millions, not to mention against the arc of history.

Republicans and the Heroism of Doing the Right Thing

Sir Walter Raeligh
Most of the time, there are no medals for doing the right thing. Holding open a door for someone whose arms are laden with packages is just a civil idea. Laying down your cloak so that the Queen doesn’t get her feet wet probably earns you some bonus points (and a dirty cloak), but it’s not exactly heroic.

It’s now clear that at this moment, the right thing to do about the fiscal [precipice you can fall from] is to extend tax cuts for all but the highest incomes, and have the just-elected new Congress come back in a month to do the hard work of reaching a long term solution. Who knows? Maybe that Congress will find a way to maintain lower tax rates for incomes above $250,000, along with carefully considered spending cuts and overall tax reform.

Republicans and their leaders find themselves caught between irreconcilable considerations. Among them is not just the past election but the evidence that, more than not, they will be blamed if no agreement is reached. Pulling another direction is an absolutist and ideological demand that anything looking like a tax increase is almost literally profane.

In spite of that, there are reports that at least some Republicans are in the mood to make that tax deal—maybe because of realpolitik, but maybe because it is the right thing. Either way, there seems to be some fear in the party that those Republicans will be seen as weak and capitulating to the President and the Democrats. That is one of the last cards that hardliners will play.

Those sensible Republicans shouldn’t worry. They will be seen as heroes by many Americans. That’s one of the dynamics going on right now. Some Republicans are worried about being on the wrong side of demographics and national electoral politics, and they should be. It’s worse, though it takes a bit more vision, to see that you might be on the wrong side of history.

Somewhere in between is being on the wrong side of heroism. Not being a hero is not equivalent to being a coward. Standing by and letting the wrong, or at least not optimal, thing happen is not universally indictable. But nothing beats being hero. Here’s another chance.

The Story of the Generals: Prurience or Public Interest? Desperately Needed Break?

 

I see a little silhouetto of a man,
Scaramouche, Scaramouche, will you do the Fandango?
Thunderbolt and lightning, very, very frightening me.
Queen, Bohemian Rhapsody

Responsible media personalities have had to admit that they are hanging on every detail of the The Story of the Generals, even as they question whether private behavior, however crazy, however famous the players, rises above the level of celebrity gossip.

That’s a great and important question—in general. But in this particular case, something is happening. The details are growing exponentially, to the point that every story about it, even in this up-to-the-microsecond digital news age, is old the moment it is published. And practically all of the revelations have a public facet. It was tantalizing to learn that Jill Kelley had an identical twin sister who, among other things, was involved in a bitter child custody battle that ended with her losing custody and being branded “psychologically unstable” by the judge. It was another thing entirely to learn that both General Petraeus and General Allen had written letters to the court supporting her. And it was still another thing to learn that this sister’s ex-husband at one time worked for the Coalition Provisional Authority in Iraq.

On the public-private scale, stories all deserve the benefit of the doubt that leans toward privacy, and it’s better to err on that side. That’s what all of us would want for ourselves and our families. But this story sits at a previously unknown nexus of the strange personal and strange public. It is sui generis (and if it turns out not to be one of a kind, we are in serious terra incognita). We are stuck being unable to extricate prurience from public interest until we know it all, or at least much more. The evidence is compelling that there is something here we might deserve to care about as citizens, not just as voyeurs.

One of the other factors that plays into the fascination with this story is that we need a civic break. That is no comfort for the genuine pain that surrounds it, nor is it an acceptable excuse for prying. But it is a fact. We are supposed to immediately care about how we will resolve the looming fiscal crisis, about who is in leadership positions in Congress, about why Mitt Romney lost and Barack Obama won, about who will be running in the 2016 Presidential race, etc. Enough, for just this moment, is enough. Yesterday brought two horrific reports, one from Arizona about a Romney supporter who ran over and critically injured her husband in a parking lot because he had failed to vote, another from Florida about a man who committed suicide because Obama was re-elected.

That’s a reason we can’t get enough of this story, and miraculously, the story keeps growing to distract us in unimaginably original ways. And who knows? Maybe while we are so distracted, those who are elected to solve our problems—and a few who lost their jobs because they didn’t—will take the opportunity while we aren’t looking to start solving them in a cooperative way. That would be a much shinier and more substantial story to mesmerize us.

Why Vote?


If you are someone who thinks that voting is pointless, that “they” (the people in power) only use it to give you the illusion of power, that “they” (those same people) are all the same, no matter what their party, you are misguided but not beyond redemption.

Today is an early voting day, and those who showed up at the county board of elections offices understand some of the reasons to vote:

It Matters

Do the math. In local elections especially, your vote may represent a fraction of a percent of a major public decision. Even in the broader-scale elections, at the state or national level, we know that elections are regularly decided by a few hundred votes. Yours could be one of them.

It’s Valuable

This is a line that seems a corny cliché, but if you think so, shame on you. Americans have died so that their countrymen and people around the world can enjoy this privilege. Things worth dying for are by definition valuable.

It’s Community

Absentee voting is effective and important, but if you vote at a polling place, you get a unique experience, especially at early voting. Precincts tend to be homogeneous in most places, in terms of class, race, etc. But entire counties tend to cut across those lines. We have precious few opportunities to stand up with the people who live nearby but not next door. Again, it may be corny, but in that polling place, it is no more or less than one person, one vote. Everything else is irrelevant.

It’s Fun

The naysayers and sophisticates may say that, sure, voting is fun, the same way that beanbag and Keystone Cops silent comedies are fun—for a bunch of really ancient and out of touch citizens. Not true. Fill in a little oval on the ballot and you can elevate the worthy and kill the evil, electorally speaking. What could be more fun than that?

You Get A Sticker

Seriously.