November 20, 2009

White House tries to give Senate vote a boost

No surprise here, but on the eve of a crucial Senate vote on health care reform, the White House said Friday evening it "strongly supports" the $848 billion bill.

The Senate is scheduled to vote, starting at 8 p.m. Saturday, on whether to end a Republican-led filibuster and proceed to formal consideration of the health care overhaul.

The White House made it clear it likes the bill, saying it "represents a critical milestone in the effort to reform our health care system." It cites data from the nonpartisan Congressional Budget Office, which issued its preliminary analysis of the bill Wednesday.

"This legislation meets the President’s criteria for health insurance reform: it provides stability and security to those with insurance; offers access to quality, affordable health care for those who do not have insurance; cuts costs for families, small businesses and the Government; and does so without adding a dime to the deficit," the Obama administration statement says.

It adds:

"This legislation is the product of unprecedented cooperation and countless hours of hard work by Members of the Senate who share the President’s conviction that the Nation cannot wait another year for health insurance reform. They have forged a strong consensus that represents an historic step forward.

"The Senate legislation includes critical reforms to the insurance industry, so that Americans will no longer have to worry that they will be denied coverage, or that their coverage will be dropped or watered down when they need it most. It covers virtually all Americans and ensures that all Americans with health insurance are protected against high, out-of-pocket spending.

"The Administration is pleased that the bill includes a public health insurance option offered in an Exchange. As the President has said throughout this process, a public option that competes with private insurers is one of the best ways to provide the choice and competition that are so badly needed in today’s market.

"The Senate bill also includes important health care delivery system and insurance reforms and cost-containment initiatives, and it would extend the solvency of Medicare’s hospital insurance trust fund. The Administration is also pleased that the bill creates an Independent Medicare Advisory Board. The bill’s Medicare and Medicaid policies promote integrated care, quality care, and primary care. It invests in research on the most effective treatments, prevention, and the health care workforce. It also makes critical improvements for Medicare beneficiaries including beginning to address the coverage gap in the Medicare drug benefit known as the donut hole. In addition, it provides new options for long-term care. The bill includes important program integrity protections that will safeguard Medicare and Medicaid from fraud, waste, and abuse. Moreover, the Senate bill is not only fully paid for, but also reduces the deficit by $130 billion in the first decade and by more than half a trillion dollars in the next decade. "

Obama drop below 50 % approval could spell big Dem losses

President Barack Obama dropped below 50 percent in his job approval rating in another poll Friday -- a politically dangerous trend that could spell major trouble in next year’s elections if it’s not reversed.

The Gallup Poll found 49 percent of Americans approving of the way Obama is doing his job, calling it the 4th fastest drop to the sub-50 mark in more than half a century.

It follows polls by Quinnipiac University and Fox News earlier this week that also found Obama dropping below majority approval for the first time.

“Of the post-World War II presidents, Obama now is the fourth fastest to drop below the majority approval level, doing so in his 10th month on the job,” Gallup says in its analysis.

“Gerald Ford dropped below 50% approval during his third month in office, and Bill Clinton did so in his fourth month. Ronald Reagan, like Obama, also dropped below 50% in his 10th month in office, though Reagan's drop occurred a few days sooner in that month (Nov. 13-16, 1981) than did Obama's (Nov. 17-19, 2009).

“But all presidents except John Kennedy dropped below the majority approval level at some point in their presidencies, and all recovered after the first time below this mark to go back above 50% approval.”

Obama’s fellow Democrats know that it’s critical for them that he rebound.

As Republican pollster Bill McInturff notes, a president’s approval rating is a very important measure of his party will do in the mid-term Congressional elections like thos coming up in 2010.

Since the mid-term election 1962, presidents with approval ratings above 60 percent have gained an average of 1 seat in the House of Representatives.

Those with approval ratings in the 50s have lost an average of 12 seats.

And those with an approval rating below 50 percent – Johnson in 1966, Ford in 1974, Reagan in 1982, Clinton in 1994 and Bush in 2006 – have lost an average of 41 seats.

With a 258-177 margin now in the House, a 41-seat swing is exactly the number it would take for the Democrats to lose control.

Which recession is worse, Reagan's or Obama's?

Which recession was worse, the double dip recession under Jimmy Carter and Ronald Reagan in the early 1980s or the current one under George W. Bush and Barack Obama?

Sarah Palin says it was worse under Reagan, and that he “showed us” the way out, presumably with tax cuts and a massive arms buildup.

Now politifact.com, the nonpartisan truth squad, compares the two recessions on all kind sof criteria, including unemployment, long term unemployment, income, and the value sof stocks. It’s conclusion? The Bush-Obama recession is worse, and Palin is wrong.

“It's no secret that Republicans love Ronald Reagan. So it's no surprise to see Sarah Palin, in her new book Going Rogue: An American Life, burnishing the reputation of the Gipper -- and taking a shot at the current president while she's at it,” politifact says.

“`Our nation is facing great challenges, but I'm optimistic -- and I know there is a way forward,’ she writes. `Ronald Reagan faced an even worse recession. He showed us how to get out of one.’’

The politifact report looked at several benchmarks, including:

--Length of recession: A wash;

--Economic growth: close;

--peak unemployment: worse under Reagan;

--rise in unemployment: worse under Obama;

--long term unemployment: much worse under Obama;

--personal income: worse under Obama;

--industrial production: worse under Obama;

--stock markets: worse under Obama;

--housing prices: much worse under Obama;

--foreclosures: much worse under Obama;

Bank failures: a wash so far.

Politfact did not include inflation, which was much worse under Reagan.

“A number of the conservative economists we spoke to believe that the high inflation of the early 1980s made Reagan's challenge worse.

“But we found significant disagreement with other economists about whether inflation is a good barometer of a recession. Some of them said it can be high in good economic times and low in poor economic times. So we're not rendering a verdict on it to compare the recessions.”

Still, the group said, inflation would not tip the balance.

“Even if we had decided to include inflation as a factor, the measurements would still indicate the current recession is worse. So we find Palin's claim to be False.”

Obama group hits back at Palin

President Barack Obama’s political operation shot back at Sarah Plain Friday, saying she sets the agenda for the right and that she’s using the publicity surrounding her book tour to try to stop health care legislation with false attacks.

“Right now, Sarah Palin is on a highly publicized, nationwide book tour, attacking President Obama and his plan for health reform at every turn,” said an email from Mitch Stewart, director of Organizing for America, Obama’s political operation.

“It's dangerous. Remember, this is the person who coined the term `Death Panels’ -- and opened the flood gates for months of false attacks by special interests and partisan extremists.

“Whatever lie comes next will be widely covered by the media, then constantly echoed by right-wing attack groups and others who are trying to defeat reform.”

Stewart, who used the warning as a pitch to raise $500,000, said Palin is getting loads of free publicity on conservative radio and TV shows at the very moment when health care legislation is facing key votes in the Congress.

“As we approach the final sprint on health reform, we can't afford more deception and delay. We need to be ready for anything -- and have the resources to respond with ads, events, and calls to Congress when the attacks come,” he wrote.

“Earlier this month, Palin publicly said that she hopes health reform will be "dead on arrival." And since then, she's been working fiercely toward that goal.

“On Tuesday, Palin went on Rush Limbaugh's radio show where she outrageously -- and falsely -- suggested that Americans could "face jail time as punishment" if they don't buy insurance.

“Palin has many more interviews scheduled on Hannity and other conservative shows in the next few weeks, with more platforms to go after the President. As soon as she does, the rest of our opponents will likely parrot those attacks.”

House foreign affairs chief says no harm, no foul on Ros-Lehtinen's brush with military brass

November 19, 2009

Regulatory revamp hits a snag, Fed takes a smack

After appearing certain to win passage, the broad revamp of financial regulation hit an unexpected bump on Thursday when House Financial Services Committee Chairman Barney Frank, D-Mass., put off a final vote until after the Thanksgiving break.

The legislation shepherded by Rep. Frank was iced after members of the Congressional Black Caucus made it clear they weren't going to vote for the measure unless other concerns having to do with matters outside the legislation were addressed.

Rep. Maxine Waters, D-Calif., issued a statement that explained why caucus members want special attention paid to how the financial crisis has hit minorities.

“The recession has created a unique systemic risk that threatens all parts of the African-American community, including the poor and the middle class," said Waters.

Waters, a powerful player on the committee, is the subject of a widening Ethics Committee investigation into whether she improperly intervened to seek federal funds for a local bank, OneUnited Bank, on which her husband once served on the board of directors. He reportedly owns a $250,000 worth of stock in the bank too.

With little Republican support, Frank is having to pull together Democrats, a task akin to herding cats. Frank did expect the effort to be derailed, just delayed by a few weeks. He still hopes to win passage on the floor of the House of Representatives before the Christmas break.

The unexpected delay wasn't the only drama Thursday. Members of the House Financial Services Committee voted 43-26 to allow the Government Accountability Office to audit the Federal Reserve. That's a shocking development that speaks to how much disdain lawmakers have for the independent central bank that has for decades been outside the reach of Congress.

Fed Chairman Ben Bernanke has warned this audit could be the camel's nose under the tent, fearing that greater reach by Congress could interfere in, or at least cause the perception of interference, in the conduct of monetary policy.

Under the amendment, offered by Texas Republican Rep. Ron Paul, who has crusaded for this for more than a decade, the GAO would look at interest rate policy, agreements with foreign governments and a host of emergency lending programs to boot. It's the first time in 95 years that the Fed has been subjected to such government review.

"This is a major victory for Federal Reserve transparency and government accountability," Paul said in a statement after the vote.

Details of audits wouldn't be revealed for at least six months to minimize the chance of such details influencing events in financial markets.

Congresswoman enlivens Cuba hearing with a tussle with a retired general

Passions were running high at today's House Foreign Affairs Committee meeting over travel to Cuba -- but perhaps none more so than Rep. Ileana Ros-Lehtinen who tussled with retired Gen. Barry McCaffrey.

McCaffrey raised the Miami Republican's hackles with his testimony that Cuba represents no risk to national security and the travel ban should be scrapped since it hurts longtime U.S. interests.

But during questioning, he took exception to Ros-Lehtinen, whom he said appeared to question his national security credentials and called him "Mr. McCaffrey,'' rather than "General.''

"To refute the argument that I had offered to the committee, she seemed to be implying my lack of commitment to U.S. national security, which is a silly thing for her to do,'' McCaffrey told reporters after the hearing. "She stated a very carefully chosen way to denigrate my military credentials, which she is not authorized to do.''

Ros-Lehtinen -- who often notes she has family members in the service -- said she disagreed with McCaffrey's stance on Cuba, but "did not mean in any way to not respect his service by calling him Mr. and not General.''

She said she had written down the questions she wanted to pose to McCaffrey and that "General'' appears in her handwritten notes

Obama names Dana Perino to broadcasting board

 President Barack Obama has named former Bush White House Press Secretary Dana Perino to Broadcasting Board of Governors, which oversees the U.S. government’s non military broadcasts.

From the White House release:

“Dana Perino is the Chief Issues Counselor for the United States at Burson-Marsteller and is a Fox News Contributor. She is the former White House Press Secretary to President George W. Bush - the first Republican woman to hold that position. 

“Ms. Perino previously served in the United States Justice Department, was Director of Communications for the White House Council on Environmental Quality, and worked on Capitol Hill for Representatives Dan Schaefer (R-CO) and Scott McInnis (R-C). 

“She holds a M.A. in Public Affairs Reporting from the University of Illinois – Springfield and a B.A. in Mass Communications from Colorado State University - Pueblo.”

Florida senator's first foreign relations foray draws a rebuke

New Florida Sen. George LeMieux's first foray into foreign relations has drawn brickbats from former high-ranking State Department officials who say his effort to block the Obama administration's new ambassador to Brazil is damaging U.S. relations with Latin America.

"This continuing, prolonged vacancy sends an unintended signal that the United States does not consider Brazil an important relationship,'' the nine former assistant secretaries of state wrote in a letter to LeMieux, urging him to lift his opposition to nominee Tom Shannon.

Shannon had triggered the ire of South Florida Cuban Americans who believed he wasn't tough enough on the Castro regime during his tenure as a former assistant secretary of state for Western Hemisphere affairs under President George W. Bush.

Senate staffers suggested Wednesday that LeMieux -- who was appointed by Gov. Charlie Crist to fill the seat vacated by Mel Martinez -- could be trying to burnish his Cuba credentials to help Crist, who faces a Cuban-American opponent in the Republican primary for the Senate seat.

LeMieux said it was his responsibility as Florida's senator to vet the nominee, noting that he had heard concerns about Shannon's record from constituents and fellow members of Congress.

"I feel like I have a role and a responsibility far greater than other senators do in terms of anything that deals with Latin America, and I take that job seriously,'' said LeMieux, who will be a "special guest" at a DC fundraiser Friday for Crist. "This is about the entire hemisphere. This is about Venezuela, El Salvador, Bolivia, Colombia and Brazil and Cuba and the role that Mr. Shannon played . . . and the role he will play. We are burning the midnight oil here to make sure I'm doing the best job I can for 18 million Floridians, and that's my motivation.''

Bloomberg News reports the extended hold could cost Boeing Inc. up to $7.5 billion.

November 17, 2009

Financial Crisis Inquiry Commission hires muscle

The bipartisan Financial Crisis Inquiry Commission, charged with getting to the bottom of what caused the recent global financial crisis, announced five new senior staff positions Tuesday that suggest the panel will have some muscle.

In a statement, Chairman Phil Angelides and Vice Chairman Bill Thomas said they had appointed Bart Dzivi as special counsel. He held senior government and Senate investigative positions during the savings and loan crisis, the closest approximate to today's banking meltdown.

The panel leaders also said Martin Biegelman, most recently director of financial integrity for Microsoft Corp., will serve as assistant director for the commission. At Microsoft, Biegelman led a global team focused on corruption and fraud, the panel statement said.

Former Alabama Securities Commission Director Thomas Krebs, who founded a six-state task force to prosecute financial crime, will serve as a deputy general counsel.

The panel, which must issue its report by Dece. 15, 2010, also tapped two lawyers versed in complex financial and securities cases. Bradley Bondi, a former partner in the firm of Kirkland & Ellis LLP, will serve as another deputy general counsel. And Dixie Noonan, who worked for powerhouse Sullivan & Cromwell, was named an investigative counsel.

More hires are expected in coming days. Leaders of the inquiry commission recently told McClatchy that they won't pull punches and will go after top players in both government agencies and Wall Street firms as they probe what led to the financial crisis.

The commission met privately Monday with Federal Reserve Chairman Ben Bernanke, and Tuesday morning with Treasury Secretary Timothy Geithner.