The Market Case For Nationalizing The Banks

by hilzoy

Like Eric, I was not at all happy to read this in today's NYT:

"Mr. Geithner, who will announce the broad outlines of the plan on Tuesday morning, successfully fought against more severe limits on executive pay for companies receiving government aid.

He resisted those who wanted to dictate how banks would spend their rescue money. And he prevailed over top administration aides who wanted to replace bank executives and wipe out shareholders at institutions receiving aid."

This strikes me as a very bad idea. Paradoxically, this is because I believe in markets. I explain why below the fold.

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Wasteful Spending

by publius

We’re all about bipartisan understanding here at ObWi – so I wanted to find a good thought-provoking critique from someone who feels the stimulus bill is full of waste.  I needed a different perspective.  So I checked out the Corner and K-Lo obliged.  To illustrate the stimulus bill’s “wasteful spending,” K-Lo dutifully linked to this longer NRO article, which meticulously outlined 50 “of the most outrageous items in the stimulus package” (generally deemed outrages because they don’t stimulate).  I decided to check this list out and report back to you, fair reader.

First outrageous item on the list – the bill provides $50 million for the National Endowment of the Arts, so that the “unemployed can fill their days attending abstract-film festivals and sitar concerts.”  That’s really funny.  And you know who else would find it really funny?  The 5 million or so Americans who work in the arts industry (including in support roles as, say, janitors).  The people laid off by the Los Angeles Opera last month would also find it especially hilarious.  After all, if there’s any one product that should be left entirely to market whims, it’s art.

Moving on to the next “outrageous” item on our list…  $380 million for the “Women, Infants, and Children” Program.  Certainly sounds wasteful to me.  When I first read this part, I remember thinking, “could they be talking about the ‘WIC’ program?”  But I quickly dismissed the thought.  The WIC program is about giving money to poor parents to buy food for kids.  It’s like the posterchild for stimulus.

Well, as it turns out, the first letters of “W”oman, “I”nfants, and “C”hildren do in fact spell WIC.  And that’s exactly the program they were talking about.  Surely we can all agree that there is nothing more outrageous and non-stimulative than giving money to poor parents to buy food for children.

Next up — $300 million for “grants to combat violence against women.”  Another outrage.  And very non-stimulative – after all, new hiring by violence programs and transitional housing are not the kind of things that will pump money back into the economy.  And besides, protecting violence against women isn’t a top priority now that we have Heller – they can just arm themselves.  See how easy downward adjustments are?

Moving on — $2 billion for “child-care block grants.”  Really?  I mean, really?

Next up — $6 billion for university building projects.  Yep, doesn’t get much less stimulative than that.  This one seemed so absurd that I actually scrolled back up to see what they had written about it – “Perhaps spending $6 billion on university building projects will put some unemployed construction workers to work.”  That’s no reason, though, to remove it from the List of 50 Outrages. 

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Dear Obama Administration,

by hilzoy Dear Obama administration, This is just wrong: "In a closely watched case involving rendition and torture, a lawyer for the Obama administration seemed to surprise a panel of federal appeals judges on Monday by pressing ahead with an argument for preserving state secrets originally developed by the Bush administration. In the case, Binyam … Read more

Politics Is Depressing

by hilzoy Sorry to have been out of it for the past couple of days. I was busy, and slightly under the weather, but I also just found politics too depressing to write about.  I mean: you might think that when a genuine crisis occurs — when hundreds of thousands of people lost their jobs … Read more

The Media’s Nero Problem

by publius One of the most infuriating aspects of the stimulus debate for me has been the media coverage.  The entire thing has been framed as a trivial high school class president contest — Who's up?  Who's got Big Mo?  The GOP has found its voice!  Meanwhile, the economy is getting really scary — as … Read more

EPI Speak, You Listen

by publius I incorporate by reference everything written in this EPI post.  The nickel version is that the Nelson/Collins amendment removed some of the most stimulative provisions of the entire bill.  Take it away boys: The bipartisan amendment to the Senate recovery plan eliminates several of the best targeted, most stimulative provisions in the bill.  … Read more

About Those “Cuts”

by publius The bold centrists certainly deserve some blame for sacrificing hundreds of thousands of state jobs in the name of abstract Broderian ideology.  But not all of it.  The fact that states even need this money in the first place shows how deeply flawed – and unfair – most of our states’ budgets are.  … Read more

State Aid Is Stimulus . . . Don’t Cut It

by publius So we have a stimulus compromise.  Needless to say, I’m in the Pelosi wing at this point – and I hope she wrestles the needless and counterproductive cuts back in. But here’s a more serious question – what exactly were Nelson and Collins trying to accomplish?  The whole thing seemed like a bad … Read more

Renditions Again

by hilzoy From Leon Panetta’s confirmation hearings: Transcript (emphasis added): FEINSTEIN: Will the CIA continue the practice of extraordinary rendition by which the government will transfer a detainee to either a foreign government or a black site for the purpose of long-term detention and interrogation, as opposed to for law enforcement purposes?PANETTA: No we will … Read more

High Comedy

by publius PJTV (my new favorite station) has a video discussion of the stimulus with economic experts Glenn Reynolds, Michelle Malkin, and Joe the Plumber.  I lack the literary skills to provide the appropriate level of ridicule.  Fortunately, we have John Cole for such things.  

Bipartisanship And The Stimulus, Take 2

by hilzoy I am, as most of you know, generally in favor of reaching out to one's opponents, trying to understand why they take the positions they do, and seeing whether their reasonable points can be accommodated. And I dislike trying to undercut one's opponents just for the heck of it, when there is no … Read more

Honeybees Suck, But Horses Are OK

by publius One more — here's a press release from a horse trade group thanking McConnell and Bunning for getting horses included in the livestock disaster program. The release goes on to say: …Last year Senators Mitch McConnell (R-KY), Jim Bunning (R-KY) and Blanche Lincoln (D-AR) introduced the Equine Equity Act (EEA), which proposed to … Read more

Attention Neil Cavuto

by publius Here's a press release from one John Thune bragging about expanding livestock disaster insurance (this is the program cited as "honeybee insurance").  I trust Neil Cavuto will give this the attention it deserves.

More On Daschle

by hilzoy As you are all undoubtedly aware, Tom Daschle has asked that his nomination as Secretary of HHS be withdrawn, and Obama has agreed. As I wrote a few days ago, I think this is a good thing. I think Daschle would have been an immense asset in trying to get health care passed, … Read more

Ch-Ch-Ch-Changes

by hilzoy This morning I read a piece by Darren Hutchinson at Dissenting Justice about rendition, which has been linked by Instapundit and others. It contained the following passage: "Hilzoy also argues that absent torture and indefinite detention, rendition includes practices like extradition. This patently false assertion has floated around the web. Unlike rendition, extradition … Read more

Ask Dr. Rendition!

by hilzoy Since the publication of the LA Times story about rendition yesterday, I've noticed some confusion about the topic. So Dr. Rendition will try to answer your questions. Q: What is rendition?  A: Rendition is the act of transferring a person into a different jurisdiction.  Q: "It occurs to me that this more benign definition of … Read more

Holder Confirmed

by hilzoy From the NYT: "The Senate voted overwhelmingly Monday evening to confirm Eric H. Holder Jr. to be the new attorney general of the United States. The vote was 75 to 21, with all the votes against the nomination coming from Republicans." About time, too. I don't really understand the point of delaying a nomination that … Read more

AIG Again

by hilzoy From the WSJ: "American International Group Inc. is in discussions with the government about Washington backstopping some of its troubled assets and is considering selling units through initial public offerings. (…) Backstopping of assets would be similar to government guarantees on troubled assets owned by Citigroup Inc. and Bank of America Corp.Were the federal … Read more

The LA Times On Rendition

by hilzoy The LA Times has an article today called "Obama preserves renditions as counter-terrorism tool": "The CIA's secret prisons are being shuttered. Harsh interrogation techniques are off-limits. And Guantanamo Bay will eventually go back to being a wind-swept naval base on the southeastern corner of Cuba. But even while dismantling these programs, President Obama … Read more

Daschle

by hilzoy What is it with these people and their taxes? First Geithner, now Daschle: "Thomas A. Daschle, nominated to be secretary of the Department of Health and Human Services, did not pay more than $128,000 in taxes over three years, a revelation that poses a potential obstacle to his Senate confirmation. The back taxes, … Read more

Suicide In The Army

by hilzoy I don't know what to say about this, other than that it's just awful: "Stressed by war and long overseas tours, U.S. soldiers killed themselves last year at the highest rate on record, the toll rising for a fourth straight year and even surpassing the suicide rate among comparable civilians. Army leaders said they … Read more

The RedState Strike Force Strikes!

by hilzoy Erick Erickson of RedState has a message for the RedState Strike Force about their latest triumph (and may he enjoy many more victories like this one): "Persevere. And relish victories like we had last night – the House Republicans heard us and stood united against Barack Obama’s socialist stimulus plan." He seems to be … Read more

A Stimulus For Today And Tomorrow, And That’s OK

by hilzoy Earlier, von criticized the parts of the stimulus bill that involve government appropriations, as opposed to tax cuts or direct transfers to people (e.g., food stamps, unemployment benefits, etc.) on the grounds that “the requested government spending won’t occur until after the recession is projected to end.” I’m responding to it partly because I think … Read more

Bipartisanship And The Stimulus

by hilzoy From the NYT: "Without a single Republican vote, President Obama won House approval on Wednesday for an $819 billion economic recovery plan as Congressional Democrats sought to temper their own differences over the enormous package of tax cuts and spending. (…) All but 11 Democrats voted for the plan, and 177 Republicans voted … Read more

Cram Downs!

by hilzoy From the WSJ: "A measure to allow judges to reduce the principal amounts of mortgages for troubled borrowers in bankruptcy cleared a key hurdle Tuesday when it was approved by a U.S. House panel. (…) Under the legislation, borrowers would be eligible to have a bankruptcy judge reduce the principal balance on their home … Read more

More Good News

by hilzoy From the NYT: "President Obama will direct federal regulators on Monday to move swiftly on an application by California and 13 other states to set strict automobile emission and fuel efficiency standards, two administration officials said Sunday. The directive makes good on an Obama campaign pledge and signifies a sharp reversal of Bush … Read more

Feed the Rich

by publius Steve Benen informs me that John McCain will not be voting for the stimulus in its current form.  McCain would prefer more business tax cuts and to make the Bush tax cuts permanent instead.  In short, McCain prefers a bold “Leave No Rich Person Behind” response to our economic crisis. McCain’s priorities – … Read more

Dear Ben Stein …

by hilzoy Ben Stein has a truly unbelievable column in today's NYT (h/t). You should stop reading this post right now, and after you've made sure that you won't get Diet Coke all over the keyboard once you start laughing, click through and read it.  For those of you who didn't take my advice: he starts by telling … Read more

There Are No Files, Part 2

by hilzoy

This morning, I read this declaration in a GTMO case (pdf). It's very much worth reading: the author, LTC Darrel Vandeveld, is a member of the Reserve JAG Corps who has served in Iraq and Afghanistan. He was the lead prosecutor against a detainee, Mohammed Jawad, until he resigned last September. After spending over a year on the case, he became convinced that the government had no good case against Jawad, that Jawad had been badly mistreated and was suffering serious psychological harm, and that continuing to hold him was "something beyond a travesty." (p. 1) That's why he wrote the declaration in question, in support of Jawad's habeas petition.

Jawad was between fifteen and seventeen when we took him into custody. That was more than six years ago.

I wasn't reading this because I thought it might have something to do with last night's post on files. Imagine my surprise, then, when I found the following, on p. 3 (note: OMC-P is "Office of Military Commissions — Prosecutions"; CITF is "Criminal Investigative Task Force"):

"7. It is important to understand that the "case files" compiled at OMC‐P or developed by CITF are nothing like the investigation and case files assembled by civilian police agencies and prosecution offices, which typically follow a standardized format, include initial reports of investigation, subsequent reports compiled by investigators, and the like. Similarly, neither OMC‐P nor CITF maintained any central repository for case files, any method for cataloguing and storing physical evidence, or any other system for assembling a potential case into a readily intelligible format that is the sine qua non of a successful prosecution. While no experienced prosecutor, much less one who had performed his or her duties in the fog of war, would expect that potential war crimes would be presented, at least initially, in "tidy little packages," at the time I inherited the Jawad case, Mr. Jawad had been in U.S. custody for approximately five years. It seemed reasonable to expect at the very least that after such a lengthy period of time, all available evidence would have been collected, catalogued, systemized, and evaluated thoroughly — particularly since the suspect had been imprisoned throughout the entire time the case should have been undergoing preparation.

8. Instead, to the shock of my professional sensibilities, I discovered that the evidence, such as it was, remained scattered throughout an incomprehensible labyrinth of databases primarily under the control of CITF, or strewn throughout the prosecution offices in desk drawers, bookcases packed with vaguely‐labeled plastic containers, or even simply piled on the tops of desks vacated by prosecutors who had departed the Commissions for other assignments. I further discovered that most physical evidence that had been collected had either disappeared or had been stored in locations that no one with any tenure at, or institutional knowledge of, the Commissions could identify with any degree of specificity or certainty. The state of disarray was so extensive that I later learned, as described below, that crucial physical evidence and other documents relevant to both the prosecution and the defense had been tossed into a locker located at Guantanamo and promptly forgotten. Although it took me a number of months ‐‐ so extensive was the lack of any discernable organization, and so difficult was it for me to accept that the US military could have failed so miserably in six years of effort ‐‐ I began to entertain my first, developing doubts about the propriety of attempting to prosecute Mr. Jawad without any assurance that through the exercise of due diligence I could collect and organize the evidence in a manner that would meet our common professional obligations."

Its description of the lack of GTMO case files is not even close to being the most important part of this declaration, which is worth reading in its entirety (it's only 14 pages long, and quite well-written.) It just makes me angry when an anonymous "former senior official" can say that when the Obama administration claims that there are no case files, it is just "'backpedaling and trying to buy time' by blaming its predecessor." That "former senior official" is counting on the fact that most people have no idea whether there are case files on GTMO detainees, and thus no idea who is telling the truth. So s/he thinks that s/he can say anything, and who's to say that s/he's wrong? 

That makes me angry. Not nearly as angry a lot of other things about this case, some of which I've put below the fold, but it's the only one I can do something about.

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Chill Out

by hilzoy From the NYT: "Is Khalid Sheikh Mohammed coming to a prison near you?One day after President Obama ordered that the military detention center at Guantánamo Bay, Cuba, be shuttered, lawmakers in Washington wrestled with the implications of bringing dozens of the 245 remaining inmates onto American soil. Republican lawmakers, who oppose Mr. Obama’s plan, found a talking point … Read more

There Are No Files

by hilzoy From the Washington Post: "President Obama's plans to expeditiously determine the fates of about 245 terrorism suspects held at Guantanamo Bay, Cuba, and quickly close the military prison there were set back last week when incoming legal and national security officials — barred until the inauguration from examining classified material on the detainees … Read more

The Exorcism of 2002

by publius There’s an awfully lot to like about Obama’s sweeping reversals of the Bush administration’s detention policies.  Most obviously (and as hilzoy has noted), they restore the rule of law and basic decency to our national security policies.  And that’s a big big deal.  But the orders are also exciting for what they say … Read more

The Fourth Circuit — Love and Harmony

by publius Judge Wilkinson is considered the conservative intellectual heavyweight on the 4th Circuit.  He's tried to soften his edges in recent years, hoping for a Bush appointment.  But make no mistake — he was as aggressively and ideologically conservative as they come, sitting on what has been the most aggressively ideological circuit in the … Read more

No More Extraordinary Rendition

by hilzoy In comments, CharlesS notes a section of one of Obama's executive orders that I somehow missed. (I sort of zoned out once it started in on the composition of committees; this was clearly a mistake.) This order establishes a Special Interagency Task Force one of whose missions is: "(ii)  to study and evaluate … Read more

More On Cornyn

by hilzoy

Publius has already written about Sen. Cornyn's decision to delay Eric Holder's confirmation as Attorney General for a week. I just wanted to add a couple of points. Here's what Cornyn said about his reasons for the delay:

"Other GOP members of the committee, said Cornyn, are also concerned about the potential for prosecutions. The intent of the Military Commissions Act, he argued, was to provide immunity from prosecution if agents believed they were acting lawfully.

"Part of my concern, frankly, relates to some of his statements at the hearing in regard to torture and what his intentions are with regard to intelligence personnel who were operating in good faith based upon their understanding of what the law was," said Cornyn.
"There were provisions providing immunity to intelligence officials based up on good faith and what they understood the law to be," said Cornyn. "I want to know if he's going to enforce congressional intent not to second guess those things in a way that could jeopardize those officials but also could cause our intelligence officials to be risk averse — the very kind of risk aversion…that the 9/11 commission talked about when they talked about what set us up for 9/11.""

First, the Military Commissions Act does not immunize intelligence agents from prosecution for anything. In Sec. 6, it provides a list of things that can be prosecuted as war crimes. One of them is torture. Another is 'cruel or inhuman treatment'. Insofar as we can infer congressional intent from this statute, we have ought to conclude that Congress intended that people who torture someone can be prosecuted: after all, Congress passed a law that expressly provides for their prosecution. 

If John Cornyn and his colleagues meant to immunize intelligence officials for whatever they did, they should have passed a law saying so. If they wanted to immunize intelligence officials for doing anything that the Bush administration said was OK, however implausible the administration's claims might be, they should have passed a law saying that. And if they wanted to add a codicil saying: "For the purposes of this statute, the practice known as 'waterboarding' is not a form of torture", they should have done that.

But they didn't do any of these things. They passed a law saying that people who engage in torture can be prosecuted for war crimes. Eric Holder, like many people, and like our government before George W. Bush got hold of it, believes that waterboarding is torture. Nothing in the Military Commissions Act says otherwise. 

Second, because Eric Holder is not yet Attorney General, he has not yet had a chance to see what, exactly, people did to detainees over the last seven years. That being the case, it would be completely irresponsible for him to say whether he will or won't prosecute them. 

Imagine …

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