Showing posts with label Chris Dodd. Show all posts
Showing posts with label Chris Dodd. Show all posts

Saturday, June 15, 2013

Life After Politics

Former Connecticut U.S. Senator Joe Lieberman has shown that there is life after politics.

The usual route for departing Beltway politicians is to associate themselves with a large law firm in some lobbying or quasi-lobbying capacity, thereby softening for the clients of the firm the burdensome laws and regulations they had so assiduously created as congressman.

Former U.S. Senator Chis Dodd managed to escape the mold somewhat when, after having left the Congress, he hitched his star to Hollywood. The author of the imponderable Dodd-Frank bill, so compendious that we still don’t know “what’s in it,” to borrow a phrase from Mr. Dodd’s compatriot in Congress, former Speaker of the House Nancy Pelosi, Dodd is now busily engaged in attempting to convince his former associates to do something – anything! – about Chinese violations of U.S. copyright laws. Since former President Richard Nixon first touched glasses with mass murderer Chairman Mao Zedong in Beijing in 1972, the Chinese have busied themselves by stealing American technology and hacking into pretty much any business in the United States that may survive the Dodd-Frank boa constrictor.

Mr. Lieberman’s route is the more traditional one. After bidding goodbye to a Senate that has over the years become much less civil than it was when Mr. Lieberman first entered it from his position as Attorney General of Connecticut, a pathway also followed by U.S. Senator Dick Blumenthal, Mr. Lieberman has added his senatorial luster to Kasowitz Benson Torres & Friedman, a firm that has in it 365 attorneys nationwide and is ranked 120 on the The National Law Journal's annual headcount survey.

Mr. Lieberman who, according to The Legal Times blog,  joined the firm as special council focusing on internal investigations and regulatory policy, has carried along with him Clarine Nardi Riddle,  who has joined the same firm as counsel and will lead its government affairs practice. Ms. Riddle served as a Judge of the Connecticut Superior Court, Connecticut’s trial court of general jurisdiction, where she presided over cases involving criminal, foreclosure, zoning, juvenile, and residential and commercial housing matters. Ms. Riddle was also an Attorney General in Connecticut from 1989 to 1991 and has been for many years Chief of Staff for former Senator Lieberman. She co-founded No Labels, an organization of Democrats, Republicans and Independents devoted to breaking partisan gridlock in Washington DC. Mr. Lieberman, denied the Democratic nomination of his state party for the U.S. Senate in 2006, handily defeated his challenger Ned Lamont in the general election and rejoined the Senate as an Independent. Mr. Lieberman announced his resignation at the end of his term. He was succeeded by Chris Murphy, who has shown himself to be much more progressive and far more partisan than Mr. Lieberman.

Not that progressive Democrats in Connecticut have much to worry about; the Republican Party in the state has been effectively marginalized and the state’s left of center media tends to make a fuss only when one of its own prized concerns is roughed up in the back ally of Democratic partisan politics.

Freedom of information appears to have taken a hit recently; in the absence of effective Republican oversight in the General Assembly, some few legislative rats infested last-minute General Assembly bills; in a frantic effort to balance a chronically out of balanced budget fashioned in the partisan smithy of the Governor Dannel Malloy SEBAC combine, the General Assembly has legalized Keno, causing one left of center commentator to comment caustically: “We're all used to what they laughably call a process: Any time they want to do something repugnant, they blow off their rule book, slam the door on anyone who might fuss and pass some abomination before it can get press coverage. The Republican minority, most of the time, is an agreeable Vichy regime.”

But these are easily ignored inconvenient and temporary eruptions. No one within the one party state is much interested in backward looking grumblers who may impede the forward inevitable march of history. Bill Buckley’s war whoop that it is the business of lovers of liberty to stand athwart history shouting “Stop” is but a distant  memory. Without a permanent and vigorous opposition, the present regime will continue to map Connecticut’s future. Onward to Utopia!   

Monday, October 8, 2012

The First Murphy-McMahon Debate


The following slug appeared on the front page of a Hartford paperthe day after a Face the State debate between Democratic U.S. Representative Chris Murphy and Republican Linda McMahon, both of whom are vying for U.S. Senator Joe Lieberman’s soon to be vacant seat:

“Another 90 seconds and no answers,'' he [Mr. Murphy] said, "not a single specific cut that Linda McMahon would support, and another example of fealty to a supply-side trickledown economics that just hasn't worked."

The statement bears close examination, but Mrs. McMahon did not during the debate force such an examination.

In an earlier debate with then Attorney General Richard Blumenthal, Mrs. McMahon caused some agita when she asked Mr. Blumenthal to explain how jobs are created. Clearly over his head in deep water, Mr. Blumenthal sputtered an answer that showed he did not at all understand how businesses produce jobs.

The embarrassing moment was not fatal to Mr. Blumenthal – he went on to win the race for departing U. S. Senator Chris Dodd’s seat – but it did rip a veil from his persona. Like most politicians who promote command economies, Mr. Blumenthal thought at the time – and still believes – that jobs are made by government intervention in the private market place.

Mrs. McMahon went on to answer her own question:

“Government does not create jobs. It’s very simple how your create jobs: An entrepreneur takes a risk. He or she believes that he creates a good or service that is sold for more than it costs to make it. If an entrepreneur thinks he can do that, he creates a job.”

In her debate with Mr. Murphy, Mrs. McMahon easily might have asked Mr. Murphy to tell the listening audience precisely what he meant by“supply side economics,” a term of reproach used by Democrats who have not read any of the essays or books written by George Gilder, the Saint Paul of supply-side theory. A much too brief discussion of Mr. Gilder’s “Wealth and Poverty” may be found on the Connecticut Commentary site here: “Of Capitalism I Sing.”

Mr. Murphy passionately supports Obamacare, passed by Democrats in Congress who did not read the bill, but it is plain from much of what he has said concerning health care that he would prefer a single payer system, which is to say a health care system run by Washington D.C. bureaucrats and politicians such as himself who prefer command economies. In such a system, health care would “trickle down” from national health care administrators and administrative technicians in the states to doctors and patients. In fact, the single payer insurance system preferred by Mr. Murphy is an extreme form of trickledown economics: Tax money is collected by bureaucrats in Washington and disbursed only to insurance companies that satisfy the rigorous demands of an authoritarian government. The ensuing regulations effectively prevent the economic creativity and vitality so apparent in free economies.

Mrs. McMahon might have asked Mr. Murphy during their debate why he preferred such an extreme form of trickledown economics. And in defending privately owned insurance companies from a government that seeks to control the means of production through excessive regulation, she easily might have cited the following passage from an essay recently written by Mr. Gilder:

“Capitalism is the supreme expression of human creativity and freedom, an economy of mind overcoming the constraints of material power. It is not simply a practical success, a ‘worst of all systems except for the rest of them,’ a faute de mieux compromise redeemed by charities and regulators and proverbially ‘saved by the New Deal.’ It is dynamic, a force that pushes human enterprise down spirals of declining costs and greater abundance. The cost of capturing technology is mastery of the underlying science. The means of production of entrepreneurs are not land, labor, or capital but minds and hearts. Enduring are only the contributions of mind and morality.
“All progress comes from the creative minority. Under capitalism, wealth is less a stock of goods than a flow of ideas, the defining characteristic of which is surprise. Creativity is the foundation of wealth.”

And that is why command economies frustrate the production of wealth – they force upon creative free markets a cookie cutter regulatory apparatus that benefits only the promoters of command economies. Mr. Murphy is one of them.

Mr. Murphy sustained his points in the debate through sheer bluster and chutzpah. He insisted, for instance, that some points in Mrs. McMahon’s economic program were lifted from Washington sources, a point hotly denied by Mrs. McMahon. She is, of course, a Republican, and many of her economic proposals certainly align with those of her party. The same is true of Mr. Murphy, who appears to have borrowed much of his rhetoric from his national party’s playbook, including the absurd claim that Mrs. McMahon is waging a "war on women” because she opposes the Democrat’s war on Christian doctrine.

Of course, in any debate with Mr. Murphy, Mrs. McMahon must be careful to give credit to the architects of a free economy, lest she be accused of lifting ideas from free market proponents much in the way Mr. Murphy has “lifted” a good deal of his command economy notions secondhand from President Barrack Obama’s all purpose made-in-Chicago campaign platform – including the absurd“war on women” meme, the national Democratic platform pro-abortion entente and even the “trickledown economics” rhetorical head fake deployed by Mr. Murphy in his first debate with Mrs. McMahon.

Tuesday, September 25, 2012

Lieberman’s Leave-Taking

Like U.S. Senator Chris Dodd before him, U.S. Senator Joe Lieberman soon will be leaving the congress with 23 years of service under his belt. Following his leave-taking, Mr. Dodd fell on a plush Hollywood featherbed. Lieberman’s future is a question mark. His bitterest critics – they are legion – suppose he will worm his way into a lobbyist position in Washington because, as Willy Sutton said when asked why he robbed banks, that’s where the money is. Like Senator Dick Blumenthal, who stepped into Mr. Dodd’s congressional shoes, Mr. Lieberman is Jewish, and when his most hot-headed critics wish to strike a death blow, they revert to stereotypical insults: Jews are motivated by money alone; Lieberman’s principal loyalty lies with beleaguered Israel rather than the United States, that sort of thing. Apart from racism, the two oldest and most perduring prejudices in the United States are anti-Semitism and anti-Catholicism, both of which still have lots of wind in their sails.

When Mr. Lieberman appeared recently before the MiddlesexCounty Chamber of Commerce in Cromwell, “goodbye” was in his voice. No one, perhaps not even Mr. Lieberman himself, has been keeping count over the years of his public appearances. Like his critics within the progressive wing of his former Democratic Party, they are legion, though likely falling short of those of Mr. Blumenthal, about whom it has been said there is no more dangerous spot in the state than that between Mr. Blumenthal and a television camera. Mr. Blumenthal attended the Cromwell event as a sort of legacy pallbearer: Mr. Lieberman’s legacy in Connecticut politics and his own, Mr. Blumenthal said, had been intertwined.

Friday, September 21, 2012

Weicker the Anti-Republican


Hell hath no fury, to vary a well-worn phrase, like a Weicker scorned.


Vile and ingrate! too late thou shalt repent
The base Injustice thou hast done my Love:
Yes, thou shalt know, spite of thy past Distress,
And all those Ills which thou so long hast mourn'd;
Heav'n has no Rage, like Love to Hatred turn'd,
Nor Hell a Fury, like a Woman scorn'd.

William Congreve, in The Mourning Bride, 1697

Once again – a bad habit in former Senator and Governor Lowell Weicker’s case – Mr. Weicker has brought his hobnail boot down upon yet another Republican and former friend, according to a piece in CageSideSeats (CSS) , “Lowell P. Weicker, Jr. sticks the boots to former friend Linda McMahon.”


Monday, January 2, 2012

Out With The Old In With The New

The New Year has finally arrived, and with it old things have or soon will be put away.


Among them are former U.S. Senator Chris Dodd, now comfortably ensconced in Hollywood as the chief lobbyist for the Motion Picture Association of America and, within the year, U.S. Senator Joe Lieberman, once a Democrat and now an Independent. It may be worth mentioning that Mr. Dodd’s last vow in leaving office is that he would not – no, never – become a lobbyist.

This sweeping out of the old is what is called in politics a “sea change.” Some things, of course, will not change. Connecticut will remain a blue state even if by some stroke of Divine Providence a Republican is able to wrest Mr. Lieberman’s soon to be vacant seat from progressive or liberal Democrats. Connecticut’s congressional delegation has for a long while been the private preserve of the Democratic Party and presently is home to three millionaires: U.S. Senator Dick Blumenthal and U.S. Reps Rosa Delauro and Jim Himes, who made his money on Wall Street.


Mr. Dodd waited until his lobbyist job opened before becoming a millionaire. If Connecticut’s Democratic millionaire office holders were to be transported back in time to 1942, during the reign of progressive war president Franklin Delano Roosevelt, they would be paying in taxes more than 100 percent of their salaries.


Before World War II, fewer than 5 percent of Americans paid income taxes. From 1940 to 1942, personal exemptions were drastically lowered and the number of Americans paying income taxes jumped tenfold, from $4 million to 39 million. The year 1942 introduced the first mass tax in U.S. history and was also the first year of withholding taxes at the source. Congress passed the first income tax law in 1913-14. The tax was made retro-active so that dollars could be immediately extracted from millionaires, but to ease the pain of payments the 1913 tax was payable in 1914, a lapse in payment that lasted thirty years. FDR’s much broader tax subjected some taxpayers to double taxation in 1943. The Current Tax Payment Act of 1943 forced some millionaires to pay double taxation and eliminated the lapse. Result: For each of the war years, 1944-1945, those earning $1 million per year owed $1,006,750 in taxes. When Democratic U.S. Senator Allen Ellender of Louisiana was asked how some people could pay more in taxes than they earned, he replied coolly, “I submit that the [rich] taxpayer is likely to have accumulated sufficient assets with which to make the necessary income payments.” Even at confiscatory rates, Mr. Roosevelt was convinced that millionaires were not paying their “fair share” in taxes, according to a luminous article in The American Spectator written by Burton Folsom and Anita Folsom, the authors of "FDR Goes To War."

The New Year has finally arrived, and with it old things have or soon will be put away.

Among them are former U.S. Senator Chris Dodd, now comfortably ensconced in Hollywood as the chief lobbyist for the Motion Picture Association of America and, within the year, U.S. Senator Joe Lieberman, once a Democrat and now an Independent. It may be worth mentioning that Mr. Dodd’s last vow in leaving office is that he would not – no, never – become a lobbyist.

This sweeping out of the old is what is called in politics a “sea change.” Some things, of course, will not change. Connecticut will remain a blue state even if by some stroke of Divine Providence a Republican is able to wrest Mr. Lieberman’s soon to be vacant seat from progressive or liberal Democrats. Connecticut’s congressional delegation has for a long while been the private preserve of the Democratic Party and home to three millionaires: U.S. Senator Dick Blumenthal and U.S. Reps Rosa Delauro and Jim Himes, who made his money on Wall Street.

Mr. Dodd waited until his lobbyist job opened before becoming a millionaire. If Connecticut’s Democratic millionaire office holders were to be transported back in time to 1942, during the reign of progressive war president Franklin Delano Roosevelt, they would be paying in taxes more than 100 percent of their salaries.

Before World War II, fewer than 5 percent of Americans paid income taxes. From 1940 to 1942, personal exemptions were drastically lowered and the number of Americans paying income taxes jumped tenfold, from $4 million to 39 million. The year 1942 introduced the first mass tax in U.S. history and was also the first year of withholding taxes at the source. Congress passed the first income tax law in 1913-14. The tax was made retro-active so that dollars could be immediately extracted from millionaires, but to ease the pain of payments the 1913 tax was payable in 1914, a lapse in payment that lasted thirty years. FDR’s much broader tax subjected some taxpayers to double taxation in 1943. The Current Tax Payment Act of 1943 forced some millionaires to pay double taxation and eliminated the lapse. Result: For each of the war years, 1944-1945, those earning $1 million per year owed $1,006,750 in taxes. When Democratic U.S. Senator Allen Ellender of Louisiana was asked how some people could pay more in taxes than they earned, he replied coolly, “I submit that the [rich] taxpayer is likely to have accumulated sufficient assets with which to make the necessary income payments.” Even at confiscatory rates, Mr. Roosevelt was convinced that millionaires were not paying their “fair share” in taxes, according to a luminous article in The American Spectator written by Burton Folsom and Anita Folsom, the authors of "FDR Goes To War."

It is a safe bet that none of the members of Connecticut’s bluer than blue progressive congressional delegation would admit to being quite as progressive as FDR. Millionaires Mr. Blumenthal, Mrs. DeLauro and Mr. Himes, asked to contribute their “fair share” in taxes as “fair” and “share” were understood during FDR’s presidency, very likely would resist the imposition.

At the turn of this year, Connecticut’s media was full of swan songs in a minor key as Mr. Lieberman sought an exit door that would not bang him too fiercely on the rear. So off message was Mr. Lieberman with progressives and peace-at-any-price Democrats that it must have seemed to them the life-long Democrat was on the verge of bolting his party.

In foreign policy matters, Mr. Lieberman is what used to be called a “Scoop Jackson” Democrat, nearly the last of a dying breed. Mr. Lieberman disagreed sharply with Democratic candidate for president Barack Obama’s views on foreign policy, and his hawkish ways did not endear him to those in his party who, along with Mr. Obama, vigorously resisted what they regarded as President George Bush’s war in Iraq. When Mr. Lieberman backed then Republican Party presidential contender John McCain over Mr. Obama, he crossed a bridge too far. A political neophyte, Ned Lamont, challenged Mr. Blumenthal in a party primary, defeated Mr. Lieberman and was in turn defeated in the general election after Mr. Blumenthal had re-entered the lists as an Independent.

A liberal in domestic policy and a “Scoop Jackson” Democrat in foreign policy, Mr. Lieberman’s leave taking will mark, for good or ill, the end of an era.

Thursday, December 1, 2011

The Sinkhole State

In any tousle between business and government, business usually has the last word, and more often than not the word is, “We’re outta here.”

Sikorsky Aircraft, a Connecticut company of long standing, has initiated two rounds of job cuts.

Early in 2010, Sikorsky President Jeff Pino, “under marching orders to raise the division's profits,” according to a news story, boasted to stock analysts, “We've nearly tripled the amount of direct production labor hours from 2006 to 2009. And for the first time in the history of our company, more than half of our hours are outside of Connecticut. We're very proud of that because outside of Connecticut, as I told you last year, by definition is low-cost sourcing."

Having met his goal of a 10 percent profit margin in 2010, Pino presently is aiming for 14 percent by 2014.

Playing its strategy close to its vests, company officials declined to share details of the cost saving cuts with Connecticut’s Democratic congressional delegation. Rep. Rosa DeLauro, for instance, was not apprised of the details of the earlier September cuts, which included the elimination of 567 positions, 419 of which were in Connecticut. In the first round, 384 hourly members of the Teamsters union were let go.

In the current round, the company hopes to reach its goal of about 525 workers. No details of the cuts were shared with Mrs. DeLauro.

The company may be suffering from post-Attorney General Richard Blumenthal syndrome. Before he hopped to the U.S. Senate from his suit stained position as attorney general, Mr. Blumenthal intervened on behalf of union workers at Pratt&Whitney, a company that like Sikorsky operates under the aegis of United Technology (UTC), successfully if temporarily averting layoffs. Unfortunately for Mr. Blumenthal and workers in the vast beehive of United Technology, cost savings lost in one UTC company is often recovered in another.

Of UTC’s 205,000 global employees, 26,000 work in Connecticut, the majority of them at Pratt & Whitney, Sikorsky and Hamilton Sundstrand. Employees at Pratt & Whitney have diminished over the past two decades from 15,000 to 3,700.

Mr. Pino is not alone in thinking that Connecticut is a forbidding place in which to do business. Last February, while speaking at a Middlesex County Chamber of Commerce breakfast, CEO of Aetna Mark Bertolini told the group, “We've done the analysis, and, quite frankly, Connecticut falls very, very low on the list as an environment to locate employees . . . in large part because of the tax structure, the cost of living, which is now approaching, all in, the cost of locating an employee in New York City.”

Rising above critics of his administration, Governor Dannel Malloy was last Thursday, according to a press release, “a featured panelist at the Bloomberg Hedge Funds Summit, where he will speak about his efforts to generate growth in the state’s financial services industry and attract new businesses and jobs to the state”– this barely week after the non-partisan Institute for Truth in Accounting (IFTA) tagged Connecticut as a “sinkhole state,” one of the five worst states in the nation:


“It is one of five states in the worst financial position in the country. According to research conducted by IFTA, while Connecticut has $29.4 billion worth of assets, only $10.1 billion are available to pay $63.4 billion of bills as they come due. IFTA's research also indicates each taxpayer's financial burden is $41,200.”



Mr. Malloy, the architect of the largest tax increase in Connecticut’s history, which included a painful income tax hike retroactive to January, has done very little to control spending, Connecticut’s most pressing problem. And even some of the governor’s putative “savings” have been costly. The state will realize virtually no savings from a budget item requiring state workers to accept a provision requiring medical exams. Workers who declined the states’ offer were to pay a penalty fee that appeared in the budget ledger as a savings. But -- big surprise! – fully 90 percent of the state workforce chose to participate in the plan, and the projected saving vanished. The Office of Fiscal Analysis continues to insist, ad infinitum, that it cannot assess savings components of the budget approved last May. The office has been advising the administration and the Democratic controlled legislature since May that lacks the requisite information to confirm that a union concession deal concocted between the Malloy administration and SEBAC officials will provide nearly $2 billion in savings over two years.

One needn’t wonder whether Mr. Malloy will make use of such data in any of his future reports to business leaders. It hardly matters. Real job producers and business entrepreneurs have already read the signs of the times. Expected cuts in defense contracts, the continuing temptation on the part of left of center legislators to increase taxes on entrepreneurial capital, the possible crack-up of the Eurozone, the increase in crippling regulations authored by former senator – now Hollywood mogul -- Chris Dodd and soon to be former U.S. House Rep. Barney Frank, the continuing housing market blow-out midwifed by the same two culprits, the never-ending bailouts of companies not permitted to go bankrupt … all this and more will punch massive holes in state and federal budgets, at which point some Greece-like states, "sinkhole states," will have no choice but to slash spending – because no one will be able to afford tax increases.

We’ve been there, done that. And we’re still broke.

Thursday, October 20, 2011

The Resistance, A Self Interview

Q: Whither the Connecticut Republican Party?

A: It’s good question. I put up a blog recently that was a review of a Chris Shays interview with Dennis House on “Face the State.”

Mr. House asked Mr. Shays whether he thought Connecticut had drifted so far to the left as to make it impossible for Republicans to win a seat in the U.S. Congress. Mr. Shays is running as a Republican for Senator Joe Lieberman’s seat. Mr. Shays said “Absolutely,” he thought the state had moved very far to the left.

The blog produced a response from Jon Kantrowitz, a liberal commentator who is himself an articulate unabashed progressive. “By the way,” Mr. Kantrowitz wrote, “it's true - the state has gone too far to the left to elect a Republican - and thank goodness for that!”

There are some few Republicans about who are not as thankful as Mr. Kantrowitz, though it is difficult to disagree with the major premise of his proposition -- namely that the state has moved very far to the left. The entire U.S. congressional delegation is Democratic. The state’s safer districts are occupied by unapologetic progressives like Mr. Kantrowitz, now moving up within the national Democratic caucus food chain. U.S. Reps Rosa DeLauro and John Larson are both pull-no-punches progressives. In what used to be called swing districts, congressional Democrats are a bit more cautious. In the General Assembly, state Democrats had until just recently a veto proof margin in both houses. And during the last election cycle, the Democrats captured the gubernatorial office, previously held by moderate Republicans and one ex-maverick Republican, former senator and governor Lowell Weicker, the father of Connecticut’s income tax. In addition, all the state’s constitutional officers are Democratic. So, I think it is safe to agree, along with Mr. Kantrowitz, that Democrats pretty much own the whole political kit and caboodle, while disagreeing with him sharply that we ought to thank God for this turn of events. While God may not be a Republican, one likes to believe He is no political plutocrat.

Q: Where does that leave Republicans?

A: In a resistance posture. The point of a party surely is to offer resistance to the reigning power. History has not dealt kindly with parties that have cooperated with the prevailing regime. The one party state, like a rolling stone, gathers no moss, but the single party state is an invitation to corruption; which is why, come to think of it, God created the two party system.

Q: Why haven’t Republicans been able to offer effective resistance to what you have characterized repeatedly in your Connecticut Commentary as Connecticut’s one party state?

A: Because Republicans have too often cooperated with the prevailing regime. You cannot cooperate without being coopted. It is important to understand that Mr. Kantrowitz is partly right. The Republican resistance has been washed away in Connecticut. Here and there, one finds brave blades of grass shooting through the concrete. During the last elections, two Republican conservatives – state senators Len Suzio and Joe Markley -- won office, both of whom may be considered part of a resistance vanguard. When Bill Buckley, who used to live in Stamford, started National Review, he proclaimed that the mission of the magazine would be to stand athwart history yelling “Stop!” Rolling stones don’t like that sort of thing.

I’ll give an example. Len Suzio, a conservative Republican who won his seat in a special election, has lately come out against deal made between Mr. Malloy and Jackson Laboratory. The Laboratory is to be attached to the UConn Health Center (UCHC), a business black hole that has absorbed millions of dollars in tax bailouts. Shortly after his budget passed muster with SEBAC, Mr. Malloy handsomely rewarded UCHC by giving it about a billion dollars.

The laboratory, apparently a successful non-profit enterprise that will itself generate no tax revenue, will absorb tax money from both federal and state grants. Mr. Suzio’s objection to the deal was forceful: “This is a lose-lose situation for Connecticut taxpayers. All the risk money is coming from the state of Connecticut. ... We don't get a nickel of interest in the technology that they develop. That is stupid."

Senior advisor and chief spokesman for the governor Roy Occhiogrosso responded that the project was a solid investment in personalized medicine and bioscience. This was a smart rather than a dumb risk: “There's a difference between taking a smart risk and a dumb risk. This is a smart risk. Taking a risk that 10 football games a year will turn the economy around is not that smart. The next thing you know, Senator Suzio will go on the radio to try and convince the people of Connecticut of his view on the flatness of the world. No matter how he tries to spin it, this is the best thing to happen to Connecticut in a long, long time.''

Mr. Suzio did not mention the “B” word on this occasion: Connecticut is broke, broke, broke. But the important political point is this: Even if Mr. Suzio is right, it will not matter – because Mr. Malloy has the votes in the General Assembly to do whatever he likes. If Mr. Malloy wanted to build a Ziggerat in Farmington – which, by the way, would produce a momentary spurt of jobs – he could do it, because the Republican resistance has no battalions. Napoleon’s quip to a pope who offered him a mild resistance was to ask: How many battalions has the pope? Answer: Not enough to resist the prevailing power of the day.

And THAT is the problem for Connecticut.

Mr. Malloy passed his budget through the General Assembly without being put to the inconvenience of discussing the matter with leading Republicans who, unlike union representatives, were wholly shut out of the process. The governor’s budget figures were such as to produce what I have called in the blog and in columns an artificial surplus of about a billion dollars. Real surpluses are produced when taxes are not increased but the state never-the-less realizes an increase in revenue owing mostly to increased business activity. Mr. Malloy’s artificial surplus is now flowing into a series of crony capitalist projects. Mr. Suzio is right about the UConn Health Center: It’s a budget busting black hole the state – which is broke, broke, broke -- can little afford to support. Attaching a non-profit, non-tax generating research center to the UCHC does not make the combination more profitable. This may be the first time in Connecticut’s history that a serviceable neck has been draped around an albatross.

Q: So, What’s wrong with crony capitalism?

A: Glad you asked. Anyone who is a proponent of the free market must be an anti-monopolist. I am here using the word “monopoly” to indicate existing monopolies, many of them stamped “Made in Washington D.C.” – Fannie Mae and Freddie Mac come to mind -- as well as political systems that tend towards monopoly. This is why the free marketer must be an anti-monopolist: Monopolies, which are cornered markets, frustrate competition, and competition is the economic virtue par excellence of a truly liberal society.

In the modern period, monopolies have been facilitated by governments. In a truly free market that fosters competition, cornered markets are less possible. It is when companies are given an opportunity to use government as a tool to gain an advantage over their natural competitors that monopolies flourish.

The process that produces state sponsored monopolies is called “crony capitalism.” The crony capitalist and his facilitators tilt the playing field in favor of large monopolistic enterprises by using presidents, governors and legislators to gain an advantage denied them in a free and fair competition.

This unfair advantage has its analogue in the sports arena. Americans, who like to see the best man or team rise to the top in a fair competition, would react disapprovingly, I like to think, to any “fixed” competition in which the presumed impartial judgment of a referee has been purchased by one side or another; and yet this is precisely what happens when a single political party has captured control of a congress or an executive department or a city or a state or a town.

There are signs all about us that singe party states and governments are infested with corruption. Alert politicians and – as I like to think -- wide awake journalist will be able to read the signs of the times. There is no reason to suppose that reporters, editors and commentators in the legacy media are comfortable with monopolies of any kind, political or economic.

There is an old biblical saying: By their fruits shall ye know them. We are familiar with the bitter fruits of crony capitalism. What applies to business monopolies applies as well to political monopolies.

The government of China, for example, is as much a political monopoly as – just to reach for an example – the government of, say, Bridgeport Connecticut. Of course, the consequences of corruption in China are more severe because there are in that country no mediating democratic institutions, such as a critical press, to soften the iron fist of an unquestioned authoritative regime. The arc of monopolistic political regimes bends towards fascism; they corrupt absolutely because they needn’t worry that their political customers will be able effectively to demand a better service or a better product. Within the one party state, any hope of political competition has been effectively abolished. Political monopolies are nursery beds of corruption, because they permit governments to rent to favored groups instruments of government power that ought to be used for the benefit of all.

The legislature is overwhelmingly Democratic. And it may seem to some who are paying attention that the remarks made several times by Governor Dannel Malloy to unions to the effect that he will never forsake them – “Oh, my darling” -- indicate that unions need not tailor their interests to the general interest, so long as both the governor and the General Assembly have their back. Indeed, it seems that unions were not made for the state; the state, rather, was made for unions. The very last party to sign off on Connecticut’s budget was not the legislature, the preeminent organ of government in democracies and republics, but SEBAC, a coalition of state unions that one commentator has called Connecticut’s fourth branch of government.

So then, we have in Connecticut a Democratic governor, a General Assembly dominated by Democrats – one of whom, Speaker of the House Chris Donovan, himself unusually friendly to union interests, is running for the U.S. House in the 5th District – a media blithely undisturbed by the prospect of a one party state, and a U.S. congressional delegation composed entirely of Democrats.

That is a recipe for, among other things, crony capitalism and its attendant corruptions.

In connection with politicians – the crony capitalist makers – the age old question arises: Qui Bono? Or to put it in the modern idiom: What’s in it for them?

Lots. They are given an edge on their competitors, usually smaller fry, and they have arranged with the politicians to share sacrifices: Taxpayers will share in the paying of their debts when their companies fail; and they will take the lion’s share of profits. Given these arrangements, is it any wonder that the public has soured on businesses too big to fail and those politicians who have contributed their mites to the creation of monopolistic enterprises?

I’ve been amused by the notion that Republicans have a lock on millionaires. Within the Democratic Party, we are invited to think, there are no millionaires: no Dick Blumenthals or Rosa DeLauros, both of whom are millionaire Democrats coasting along in seemingly impregnable Democratic districts.

According to the myth peddled by Democrats, businesses in the United States prop up Republicans with generous campaign contributions – but rarely Democrats. Nothing could be further from the truth. The late Senator Ted Kennedy could depend on regular infusions of campaign cash from captains of industries in the United States: Ditto former Senator Chris Dodd, showered for years by financial groups that he was supposed to be regulating as chairman of the banking committee. Mr. Dodd has now cashed in on his many years of experience in the U.S. Senate by becoming a lobbyist for Tinsletown. Mr. Dodd’s Hollywood adventure began only a few weeks after he had shaken the dust of the U.S. Congress from his feet, about a month after he had told his supporters on the left that he would never, ever become a lobbyist.

Money continues to be the Mother’s Milk of politics, and mouths are everywhere. So long as crony capitalists feel that they can be assisted in cornering markets by politicians, they will continue to buy politicians. In the last Republican-Democratic campaign in the 1st District, the incumbent Democrat, John Larson raised $2.7 million, much of it from financial interests; his Republican competitor, Ann Brickley, managed to get along with a slender $250,000.

If one may be so bold as to measure the wealth of a politician by the contributions he receives, we should conclude that Mr. Larson was the millionaire, while poor Mrs. Brickley was in financial campaign rags. Mr. Larson was in this race – and indeed, in all his races – the Mr. Bumble of the Democratic workhouse, while Mrs. Brickley was Oliver Twist, begging for more workhouse gruel. It’s wonderful – to me anyway – how desperately people who have been writing about politics in the state most of their adult lives cling to these myths, the work, for the most part, of ideological ad-men and Orwellian spin-masters.

In late September, as FBI agents were carting boxes of information from Solyndra -- the environmentally friendly, technologically advanced, politically correct, and now bankrupt company into which the Obama administration had poured its heart, soul and taxpayer money – administration officials, including the president, were avoiding comment. We may wonder why. The media, so far, has focused its attention on the vast sum of money “invested” in the now bankrupted solar panel producer. That focus is not misplaced. But we ought not to forget several other important points.

The e-mails now pouring out of the scandal suggest that the whole business was an improperly vetted photo opportunity for the president and vice president. Any kid selling lemonade from a lemonade stand might have told any one of the financiers in the Obama administration now busing themselves with ending a seemingly intractable recession that when a product’s cost of production exceeds the amount of money one expects to receive through sales, the company is incurring a risk of bankruptcy. In an S-1 filing a year ago, Solyndra reported its average sales price was over $3.20 a watt, about 65% more than leading crystalline-silicon PV manufacturers. Its cost of manufacturing was an astounding $6 a watt. These figures are irreconcilable.

Solyndra was not one of those companies in the United States deemed too big to fail, and so it failed – which means, a bankruptcy judge will be assessing the company’s assets and selling them off, parceling out a portion of redeemed value to the company’s investors. In Solyndra’s case, about a half billion dollars of tax money was frontloaded into the collapse. The Solyndra loan was part of a $38.6 billion program to aid green energy that the Washington Post says has created exactly 3,545 jobs, about $10,888,575 in loans per job – all vanished. Perhaps, with the FBI on the case, someone will go to jail. In the case of Fannie Mae and Freddie Mac, the tax money was both frontloaded and backloaded; the company is now bigger than ever, and no one went to jail.

The government financing of select companies it chooses as prospective winners in a competitive market place is wrong for multiple reasons. Government intervention in decisions generally made by consumers distorts demand signals and creates moral hazards for investors. Government is notoriously inept at choosing winners; increases in the price of stamps have not prevented the U.S. Post Office from painful consolidations. But the most objectionable feature of Crony capitalism is this: It funnels profits to private investors and shifts debts to taxpayers.

Somehow, something in my bones tells me that millionaire Democrats in safe districts like Mr. Larson, or private business- punishing former attorneys general like Senator Dick Blumenthal or tax the millionaire proponents, who continually deny that our country and state are beset with a spending rather than a revenue problem, do not pass their days worrying about such things. But the people of Connecticut should – because we are living in a time in which our problems will kick in our front doors if we ignore them. They are coming to sleep with us in our beds; they will be sitting in a chair next to us at our work sites. They will be sitting in the passenger seats of our cars.

We no longer have the comfort of ignoring them.

The chief difference between Republicans and Democrats in the coming campaign will be this: Republicans are interested in increasing prosperity through a series of painful but necessary reforms. They want small, efficient and responsive federal, state and municipal governments and an expanding economy. Democrats want to expand the range of influence the government has over our lives. One party would shrink the private sphere and expand the public sphere; the other would do the opposite. We must never forget that in democracies and republics the citizenry gets the kind of government it votes for. Having crossed the bar to the 21st century, we should wonder and worry whether the challenge thrown down by Ben Franklin at the founding of the republic will be properly answered. When asked by a woman what kind of government the founders at the close of the Constitutional Convention of 1787 had given to the country, Franklin said, “A republic madam – if you can keep it.”

We are under a moral obligation to those who came before us and to those who will succeed us – to keep it.

Wednesday, October 5, 2011

Shays The Spoiler?

A recent poll by Public Policy Polling indicates that Chris Shays may have a certain value, among Democrats mostly, as a spoiler candidate.

The poll shows Linda McMahon leading former U.S. Rep. Shays in a Republican Party primary by an unsurpassable margin of 60-27 percent. Since primaries were first introduced into party politics, more or less as a democratic instrument to pry decision making from party bosses, primaries have been the gateway to general elections.

The 60-27 spread is a hurdle that would inspire second thoughts among most supermen politicians who are used to leaping tall buildings in a single bound. The spread among those in the state identifying themselves as “very conservative”, 81-14, is even more daunting.

Is it possible that Mr. Shays has agreed to play Rob Simmons to Mrs. McMahon in her second bid for the U.S. Senate?

Very early in the campaign for U.S. Senator Chris Dodd’s seat, Mr. Simmons was leading the senator in some polls. Mr. Dodd’s prospects had run aground on several sandbars, one of which involved a pricy cottage on an 11 acre spread in Ireland the senator bought for a song, only $160,000, along with William Kessinger, a business partner of Edward Downe. Mr. Dodd and Mr. Downe, who pleaded guilty to insider trading and securities fraud in 1993, once owned a Washington condominium in partnership. Before President Bill Clinton left the White House, Mr. Dodd successfully lobbied the president to secure friend Downe a pardon, according to a story in the Wall Street Journal.

Mrs. McMahon entered the race and was chosen as the nominee of her party at the Republican Party convention in Hartford, at which point Mr. Simmons, following party protocol, might have gracefully withdrawn. This he did not do.

Sensing a vulnerability in then Attorney General Richard Blumenthal, the Democratic senatorial nominee, Mr. Simmons decided to primary Mrs. McMahon. Mr. Blumenthal had several times falsely claimed he served in the Vietnam War, an imposture exposed by Mrs. McMahon and the New York Times. Mr. Simmons had served honorably in Vietnam, and several political commentators thought at the time that Mr. Simmons would be able to exploit the issue much more effectively than Mrs. McMahon. Serving honorably in Vietnam for 19 months, Mr. Simmons had been awarded two Bronze Star Medals.

Conducting a poor man's campaign, Mr. Simmons put his active campaign on hold but left his name on the ballot, in effect imprisoning for the duration support that might have gone to Mrs. McMahon. And so Mr. Simmons hung in there and hung in there and hung in there, while Mr. Blumenthal hit the mattresses, hiding out from prying journalist and coasting into office on his reputation as the nation’s most fervent consumer protection ad-man. Mr. Simmons’ challenge was, shall we say, sporadic, but disabling enough to shuttle a few votes in the direction of the Democratic Party’s camp. Mr. Simmons’ malingering was no help to Republicans, who still wince whenever his name is mentioned in polite circles.

Recent elections have been career enders for once seemingly impregnable incumbent politicians: Mr. Dodd left the congressional premises more or less under an order to vacate issued by both Democrats and Republicans. Mr. Lieberman, still doubtful about who he may endorse for his soon to be vacated seat, has had his day. National Democrats in the U.S. House, palsied and unable to produce a budget during the years they enjoyed a veto proof margin in the U.S. Congress, were given the heave-ho in the last election and replaced by combative conservatives. Surely, the recent flow of politics suggests that voters have taken a dark view of professional politicians who have passed along to a generation of Americans a legacy of unsupportable debt and joblessness, not exactly what former President John Kennedy had in mind when he announced the passing of the torch to a new generation of nation builders.

One senses in the air the fragrant odor of Jeffersonian gunpowder: Said Tom Jefferson, very much in a revolutionary mood, “The spirit of resistance to government is so valuable on certain occasions that I wish it to be always kept alive.” The Jeffersonian spirit – “I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it.” -- does not run hot in the veins of politicians who have spent a good part of their public lives in the middle of the road dodging commitments and principles.

Sunday, October 2, 2011

The Dodd-Frank Banking Fee

According to a story in Investment.com, the $5 monthly fee bank of America intends to impose to recover losses incurred by the Dodd-Frank bill probably should be named the Dodd-Frank fee.

The Wall Street Reform and Consumer Protection Act put a limit on fees banks could collect from sellers when their customers make debit card purchases — cutting 44 cent fees to 21 cents.

“Throwing their weight around at the height of the banking crisis, House Financial Services Chairman Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut vowed to stick it to banks. They blamed them for the mess to cover up the fact that they forced banks to lend to favored constituencies who could not repay.

“The two Democrats pushed through the much-vaunted Wall Street Reform and Consumer Protection Act, which President Obama signed and touted as one of the signature accomplishments of his presidency.

“That act, which included a micromanaging amendment on fees, carried a $2.9 billion implementation cost for that alone over five years, according to the Government Accountability Office...

“The ‘economics of offering a debit card have changed with recent regulations,’ a bank spokeswoman told ABC News Friday.

“BofA says it stands to lose $2 billion from the arbitrary Durbin price-fixing amendment and now has no choice but to make up for the lost revenue some other way.”

House Financial Services Chairman Barney Frank of Massachusetts and Sen. Chris Dodd, once associated with the senate’s banking committee and now a gold plated Hollywood lobbyist, felt compelled to hammer banks after the mortgage industry in the United States went belly-up, largely in response to impositions imposed on them by Dodd and Frank in a successful attempt to encourage banks to lower their lending standards so that people who could not afford mortgages would be able to buy houses. Canada, which maintained standards widely observed here in the United States before Dodd and Frank began to micromanage the banking industry, has few mortage and housing problems.

Dodd also was principally responsible for undoing the last remnants of the Glass Steagall Act, a measure adopted during the enlightened administration of Franklin Roosevelt that prevented rapacious financial institutions from meddling with the bankbooks of Dodd’s constituents.

And here we are – in lowdive.

Sunday, August 21, 2011

Too Big To Fail Banks Are Bigger

The 2,319 page Dodd–Frank Wall Street Reform and Consumer Protection Act, commonly called the Dodd-Frank bill -- named after its architects, former U.S. Senator Chris Dodd, now a Hollywood millionaire mogul, and U.S. Rep. Barney Frank – was supposed to insure that big banks could fail, obviating the need for expensive taxpayer bailouts.

A ban on bailouts is written into the legislation. Among the tools in the bill’s toolbox is a provision that provides for an orderly winding down of bankrupt firms. The bill includes a proposal that the Federal Reserve (the "Fed") receive authorization from the Treasury for extensions of credit in "unusual or exigent circumstances";

The ban on bailouts, which removes the principal protection that spurred those inept business practices that gave rise to the effective bankruptcy of major banks in the United States considered “too big to fail,” has not persuaded rating agencies to downgrade the banks.

Why not?

If the federal umbrella has been removed that in the past prevented “too big to fail” banks such as such as Bank of America, Citigroup or JP Morgan from getting wet in the same rainstorms that affect non-protected industries, why hasn’t Standard & Poor’s downgraded the Big Banks?

S&P has “pointedly disputed the often-stated claim on Capitol Hill that the legislation had put an end to ‘too big to fail’ and the era of federal bailouts,” according to an analytical piece in The Washington Times:

“S&P thinks ‘the government in a handful of situations may be forced to provide some sort of support to an institution,’ especially if the failure of the bank threatens the economy and well-being of ordinary Americans, as occurred in the fall of 2008, said S&P managing director Rodrigo Quantanilla. S&P cited the long history of bank bailouts in times of economic stress as well as what it sees as ambiguities in the Wall Street reform law.”
The big banks have become bigger and more powerful. The county’s six largest banks -- JP Morgan, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley – controlled assets equal to 17 percent of the U.S. Economy in 2008, the year of the financial crisis. Their combined assets today equals 64 percent of economic output, and they control nearly half of all bank deposits in the U.S, according Joshua Rosner, managing director of Graham Fisher & Co. and author of a book on the financial debacle.

"In fact, the Dodd-Frank law reinforces the market perception that a small and elite group of large firms are different from the rest," Mr. Rosner said, “by designating those banks as ‘systemically important.’”
Breaking up banks that are “too big to fail” is the most certain way to assure that taxpayers will not be on the hook in a future bailout, but congress last year repeatedly rejected such measures. An alternative, Mr. Rosner suggest, might be to require the top executives of such banks to pay dearly when their banks fail.

Though Mr. Dodd has moved from the U.S. Senate to Hollywood -- a step up in salary and, according to the latest public opinion polls, prestige -- the real consequences of Dodd-Frank bill will weigh heavily on a U.S. economy wracked by legislative and presidential nincompoopery.

Dodd-Frank, thought by its architects to provide a check on capitalist greed, will instead promote crony-capitalism, increase the pressure of the already deadening hand of the federal government on businesses, undermine what is left of the free market in the United States, limit true competition and favor capitalists of choice over capitalism.

Dodd-Frank will kick in as a second deeper and perhaps more intractable recession looms on the horizon, spurred on by European financial incompetence and an equally incompetent U.S. government government that has shown it cannot repair its debt or curb its looming entitlement costs. This brew of breathtaking stupidity very well may provide the spark that will set off a double dip recession both in Europe and the United States

Tuesday, June 7, 2011

Weiner And The Etiquette Of Admission

The first rule is this: If you are going to put yourself through the trouble of admission, no qualifiers will be allowed. You cannot say, “Yes, it is true that I allowed my bachelor’s pad in Washington D.C. to be used by an acquaintance as a bordello servicing both gay and straight clients, but…

A “but” is a backdoor exit to your national humiliation and will not escape the notice of the usually soporific mainstream media, which tends to be more forgiving of so called “sins of the flesh” committed by Democrats such as U.S. Rep. Barney Frank, an out of the closet gay guy who, several years ago, provided one of his friends the opportunity to frolic with his clients in his Washington D.C. bordello. Mr. Frank was exposed by the frothing right wing media. The exposure, however, put no serious dent in the congressman’s bumper; and, after a few months, Mr. Frank was permitted to get along with his congressional business, joining former U.S. Senator Chris Dodd, now a Hollywood mogul, in imposing strangling regulations on American businesses during a recession that Democrats had hoped would elide into a mini-depression, the better to save the country through FDR-like public works programs.

The second rule is this: Don’t weep, don’t cringe, and don’t drag your long suffering wife – or, in Mr. Frank’s case, partner – into your sordid affairs. If your wife, partner, paramour refuses to stand by you in your hour of trial, try to accept the rebuff with a tortured but understanding smile.

The third rule is this: If you plead guilty publicly to untoward behavior – fetchingly kicking a foot in the next stall in a men’s room, little realizing that the gent sitting on the toilet beside you is a vice cop; or producing a child out of wedlock with your mistress while running as Vice President of the United States; or confessing, better late than never, to your faithful wife that you had produced a child ten years earlier with one of the servants; or, as in the case with the much humiliated Anthony Weiner of New York, sending erotic twitters here and there, accompanied with graphic pictures – inflict upon yourself a suitable penance.

And the fourth and final rule is this: So behave in life and with others that your mom and dad, diseased or living, may not be embarrassed by your self indulgent stupidity, in this life or the next.

Mr. Weiner violated all these rules, as well as the overarching rule stressed by Mark Twain, humorist and social philosopher: A man, said Mr. Twain, may commit numerous breaches of the law and yet get away with all these, particularly if he is a politician or person of means who has in hand a good lawyer; but let a man commit one offense against convention – and he is a goner. There is no hope for him.

Proceeding backwards through the rules:

1) Considering Mr. Weiner’s public confession, it is likely that he is incapable of making the proper distinction between illegalities that may be got round and conventions that cannot be hurtled. It is true that modernity has thrown to the dogs many of the conventions that might have inhibited our parents; a certain amount of confusion may therefore be tolerated. On the other hand, Mr. Weiner is not a man easily confused and, at least in respect to conservative conventions, he has been pointedly intolerant.

2) Mr. Weiner, having confessed to his sins, refrained from imposing a suitable penance upon himself. He will not give up his office. And he has challenged such moral adepts as Nancy Pelosi to bring on the Grand Inquisitors. Go ahead, set the dogs of the House Ethics Committee upon me – just go ahead. One prominent Democrat suggested that former President Bill Clinton, who had in the past an unfortunate brush with White House convention, might have a word with Mr. Weiner and encourage his speedy exit.

3) Mr. Weiner wept, cringed and brought his innocent wife into the affair.

4) Mr. Weiner’s apology was decorated with “buts,” some subtly implied. For instance, Mr. Weiner said he had sent to a complete stranger a picture showing a bulge below his pelvis “… as a joke.” One commentator groused that he wondered whether Mr. Weiner’s wife would have considered that twitter funny. Possibly not.

Andrew Brietbart, the Publisher of Big Government who outed Mr. Weiner’s frat house behavior, has now said he possesses a picture sent by Mr. Weiner to yet another female stranger showing Mr. Weiner showing off his wiener. From delicacy and pity, Mr. Brietbart has said, he would not release the picture. But in these days of twitter and facebooks, there are WikiLeakers crouching behind every bush, waiting to waylay unconventional congressmen such as Mr. Weiner with promises of blackmail: “Halt there Weiner – your favors or your life!”

A final reason why Mr. Weiner should leave politics behind, repair his bruised marriage, and get a real job in the real world – like Mr. Dodd.

Wednesday, May 4, 2011

bin Laden At Room Temperature

Here is former Speaker of the U.S. House Nancy Pelosi on the importance AND insignificance of the late Osama bin Laden:

Then, September 7, 2006: “[E]ven if [Osama bin Laden] is caught tomorrow, it is five years too late. He has done more damage the longer he has been out there. But, in fact, the damage that he has done ... is done. And even to capture him now I don't think makes us any safer.”

Now: “The death of Osama bin Laden marks the most significant development in our fight against al-Qaida. ... I salute President Obama, his national security team, Director Panetta, our men and women in the intelligence community and military, and other nations who supported this effort for their leadership in achieving this major accomplishment. ... [T]he death of Osama bin Laden is historic…”

Note the use of the word “historic.” Anything that happened yesterday is historic. This overused locution parallels the word “interesting” in modern times.

If your wife or GF, having dyed her hair blue with bright streaks of orange and yellow, asks you “What do you think of my hair do?” you are expected to show sufficient enthusiasm. In a pinch, you might mutter “Interesting,” but generally this will be regarded by your wife or GF as a failure of nerve, and you may expect the usual dressing down.

In using the word “historic,” a vacuous emotional place holder, Mrs. Pelosi was simply following political protocol: One of her aides had shoved a statement under her nose; she read it. We should not be too hard on her.

The truth is that, operationally, Mr. bin Laden was and is dispensable. He had outlived his usefulness. The occasional grainy videos had become… well, interesting.

The news media is now fluttering around the question: HOW was Mr. bin Laden dispatched.

Early propaganda from the White House had Mr. bin Laden cowering behind the skirts of his wife or possibly armed with a knife in his teeth or fingering a grenade in his pocket. The brave woman stepped forward; she was shot in the leg. Mr. bin Laden took a bullet above one of his eyes, creating a “gruesome” gash that has itself become problematic. Pictures were taken, apparently to convince terrorist doubters that the right man had been sent heavenward by Navy Seals.

It turns out that some of this was bunkum. Mr. bin Laden was unarmed. In the confusion of the moment, he had failed to raise his hands in surrender. Had he done so, his life would have been spared. Possibly he might have been transported to the United States and given a civil trial, as recommended by presidential campaigner Barack Obama, Chris Dodd, now a Hollywood lobbyist, and other Democrats who, at the time, favored wrapping terrorists in the rights and immunities available under the U.S. Constitution to non-terrorists citizens of the USA.

Among the people gathered at the White House watching the assault on the millionaire’s well fortified compound, a hand grenade’s throw from one of the principal military institutions in Pakistan, was the president, Secretary of State Hillary Clinton, et al. Mr. Dodd was addressing the Media Institute, an Arlington, Va.-based think tank and didn’t make the showing as a Hollywood guest. The group was watching the historic event IN REAL TIME, which means they likely saw Mr. bin Laden stubbornly refusing to surrender.

And yet, the news-shapers at the White House still got it wrong.

The gruesome gash left by that bullet hole in the forehead presents yet another problem.

Pictures of Mr. bin Laden after he had been assassinated had been taken. One shows Mr. bin Laden being deposited in the ocean. In deference to Islamic burial rites, the body was washed and wrapped in a shroud before being fed to the fishes. It appears that burial at sea was a faux pas; according to some Islamic scholars, the body should have been properly interred or delivered to a relative who might have accepted it. Another picture showing Mr. bin Laden’s facial wound is said to be GRUSEOME.

Should the pictures be released or not?

The United States has not developed a protocol concerning the publication of gruesome assassination pictures.

Perhaps Ms. Pelosi might be urged to venture her unscripted opinion on the matter.

Wednesday, January 19, 2011

Lieberman Leaves

Sen. Joe Lieberman’s post mortem began even before he officially announced his retirement.

Here in Connecticut, a politically battered Susan Bysiewicz rushed to announce in advance of U.S. Reps. Chris Murphy and Joe Courtney her availability for the seat hours after she had told bewildered reporters and commentators she would be spending the next few years ensconced in her new job with a prestigious law firm, drying out from a recent political dunking and acquiring active experience before the state’s bar. Mrs. Bysiewicz has been portrayed in the state’s media as an ambitious Lady Macbeth, but she probably is not much more ambitious than the usual political specimen.

Well… maybe a wee bit.

Connecticut can expect the same scramble for political crumbs that occurred when U.S. Sen. Chris Dodd announced his retirement. The frantic melee would be a little less over the edge if the state had term limits, a process that would allow a more dignified free for all. The present political rumble is for a senate position that, in the case of Mr. Dodd, is about half the reign of King George III. The senator who replaced Mr. Dodd, Dick Blumenthal, held his previous position of attorney general for 20 years. The average term in office of U.S. Senators has increased 300 percent since the first decade following the adoption of the U.S. Constitution. As of October 2008 there were four U.S. Senators -- Robert Byrd, Edward Kennedy, Daniel Inouye and Theodore Stevens – who had been in office over 40 years. The prospect of such a secure roost in office makes the rough and tumble scramble up the greasy political pole a matter of political life and death.

Republican Party Chairman Chris Healy congratulated Mr. Lieberman in a prepared statement on a “remarkable career of public service” and pointed out that the senator stuck to what he believed was right for his constituents and countrymen.” Acts of courage such as the senator’s steadfast support of “policies that have brought political freedom to Iraq and to Afghanistan when many Democrats sought to end that commitment prematurely,” Healy said, “almost cost Sen. Lieberman his political career in 2006 when radical liberals ousted him as the candidate of the Democrat Party, which once supported the foreign policies of both Republican and Democrat administrations.”

The “Nedheads,” of course, would not agree with this assessment, though many of the anti-war activists among them have been far less vocal in their opposition to the war in Afghanistan, President Barack Obama’s “war of necessity,” than had been the case when Ned Lamont successfully challenged Mr. Lieberman in a primary, losing in the general election to Mr. Lieberman, who was able to draw support from Republicans and Independents.

Pretty nearly everyone seemed to agree that the prevailing circumstances that allowed Mr. Lieberman to snatch an earlier general election victory from the jaws of a primary defeat – a weak Republican candidate, a primary victor whose experience in office was shallow and a residual affection for Mr. Lieberman for having earlier defeated then Sen. Lowell Weicker, widely regarded as a Republican Party scourge -- would not be present in the general election two years after then Sen. Chris Dodd had left office.

By the time Mr. Lieberman made his announcement in Stamford at noon on Jan. 19, the news that he was retiring was old news. Nate Silver of the New York Times speculated that “The scariest possibility for Democrats would be if Ms. Rell decided to run for the seat.” Roll Call adjusted Connecticut’s race from “toss up” to “leans Democrat.” The New York Post advised that Connecticut Democrats should seek a centrist Democrat to run for Mr. Lieberman’s seat, which will be vacated in 2012. Salon noted that Mr. Lieberman was “Every Republican's favorite Democrat.” The American Prospect noted the New York Times noting that Bill Curry said of Mr. Lieberman, “It’s the first thing he’s done in 10 years to make Connecticut Democrats completely happy.” And Emily Bazelon, writing in Slate, cordially explained to readers of the on-line political magazine why she loathed Mr. Lieberman in a piece appropriately titled, “Good Riddance Joe Lieberman: Why I loathe my Connecticut senator.”

As Louis Prima sings in “Just A Gigolo” – “Life goes on without me.” Owing to a Prima release in the 1950’s, that song was inescapably linked with “I ain’t Got Nobody.”

History may show that Mr. Lieberman did have a few honorable people in his corner. Non-bilious historians may be kinder to Mr. Lieberman than the foaming at the mouth progressives who continue to loathe him, well after leading Democrats in Connecticut have agreed that civility in politics, going forward, should shape political discourse.

Thursday, January 6, 2011

Lieberman's Future

Four commentators – Duby McDowell of the Laurel , Rick Green of the Hartford Courant , Brian Flaherty, a former Republican state representative, and Tom Dudchik of Capitol Report -- got together several days ago at Dennis House’s house, Face the State on WFSB, to review the old year and plot Sen. Joe Lieberman’s future.

Poor Joe’s future, all agreed, was dismal.

Pretty much all House’s guests thought Mr. Lieberman MIGHT defend his seat, the senator having teased several reporters and commentators that a run was not altogether out of the question. The consensus appeared to be that Mr. Lieberman would not be nominated by his party; apparently, Rep. Chris Murphy has stolen the party’s heart, and progressive Democrats are especially hot on him, while their reaction to Mr. Lieberman has been considerably cooler.

Ever since Mr. Lieberman lost to progressive heart throb Ned Lamont in a previous Democratic Party primary, marching on to defeat the Great Progressive Hope in a general election, the left wing of the party has been in a flutter against Mr. Lieberman, its more insistent members sharpening their stakes, grinding their teeth and challenging the deathless vampire to run once again for office on THEIR ground. Go ahead – just go ahead. You’ll see.

Mr. Lieberman has been toying with them, playfully. The danger is that may hoist them in their own petard.

If the senator, pushed out of his party by Mr. Lamont in a primary and forced to run in the general election as independent, CANNOT run for the nomination in his former party – there are only two open questions: 1) Will he run? He’s such a tease; and 2) If he runs in what then likely would be a three way race involving Lieberman the independent, Murphy the beloved and a Republican nominee -- possibly Linda McMahon, who does not seems to have had her fill of politics, or Rob Simmons or some other aspiring Republican -- would Mr. Lieberman win?

The answer to this question is: Nobody knows. Events have a way of overturning the best laid plans of mice and men. But then the whole point of predicting the future is to speculate, loudly and bravely, on matters the answers to which one cannot know.

Perhaps it might be useful to back up a second and ask a somewhat different question: Would Lieberman’s chances of winning the pending general election in a three way race be better or worse if he did or did not force a primary with Murphy the beloved? This, after all, is how Mr. Lieberman won the general election race against Mr. Lamont – by smashing in a primary the lockstep hold in a general election Mr. Lamont expected to have on the party that nominated him.

Just a second, progressives will remonstrate. Mr. Lieberman the Vampire won the general election because the Republican candidate was, shall we say, inadequate, and Mr. Lieberman the Vampire had built up within the Republican Party a residual affection after he had defeated, with the party’s help, former senator and self proclaimed “turd in the Republican Party punchbowl” Lowell Weicker. These circumstances are not repeatable. In addition, Mr. Lieberman the Vampire has further alienated himself from his party by canoodling with the enemy, throwing his support behind a Republican Party presidential nominee at a time when Democratic nominee for president Barack Obama enjoyed wide national popularity. To be sure, the bloom is off the popularity rose now; former President George Bush and President Obama are running fairly close in popularity polls., But to have support McCain then! And he kissed Bush too! And he’s a vampire!

To all this one may cheerfully nod assent. Even so, in a free country in which primaries have for decades undetermined nominating conventions, anyone with a adrent will and a little spare cash can primary party nominees. Before Mr. Lamont, at the urging of progressives, leapt upon the stage to challenge Mr. Lieberman in a primary, Mr. Lieberman WAS the Democratic Party’s nominee for the U.S. Senate. Both former President Bill Clinton and then U.S. Sen. Dodd stumped for their party nominee on the primary campaign trail.

And so the question remains: Would Mr. Lieberman’s chance in winning a general election in a three way race, assuming he would consent to run in a three way race, be improved if he chose to primary the presumptive Democratic Party nominee for the senate, Mr. Murphy?

The answer to that question is: Maybe. No one can be certain what tomorrow may bring. It seems only yesterday that former U.S. Sen. Chris Dodd was a shoe in for re-election to the senate. And then a couple of shoes fell on his head. The only way to measure Mr. Lieberman’s strength or weakness within his own party many months out from today is to test his strength in a primary. And even then, the lay of the political land having changed, the probe may be telling – or not.

Wednesday, December 1, 2010

Mr. Dodd's Valedictory Speech

“The evil that men do lives after them; The good is oft interred with their bones."

So said Mark Anthony in William Shakespeare’s “Julius Cesar” during Cesar’s funeral oration. Anthony, who took no part in the assassination of Cesar, the bloody work of Brutus and others, all honorable men, was determined that the good Cesar did should not be buried with his bones and that the evil done by his assassins should not outlive them.

U.S. Sen. Chris Dodd’s farewell speech before the senate serves a like purpose. Farewell speeches by senators of long standing and exit interviews recorded in newspapers are like brief autobiographies, and there never yet was an autobiographer who was not the hero of his own reminiscences. Eventually, the encomiums are overwritten by sober historians far removed from the partisan atmosphere that colors all the deeds, evil and good, of their subjects.

Mr. Dodd’s errors in office lie just beneath memory’s skin. His three decades in the senate are hardly ancient history. It may be recalled – though not of course by Mr. Dodd, and especially not in a farewell address to his colleagues in the U.S. Senate -- that Mr. Dodd was the senator who, to speak metaphorically, assassinated the Roosevelt era Glass Steagall Act, a measure that prevented rapacious financial institutions from meddling with the bankbooks of Mr. Dodd’s constituents, as noted by Managing Editor of the Journal Inquirer Chris Powell:

“I suspect,” Mr. Powell noted in an interview a little over a year ago, “that Connecticut's Senate election will be determined more by doubts about Dodd's personal integrity than by doubts about his record, particularly his long subservience to Wall Street. That will be too bad, since, in providing what turned out to be the crucial support for the repeal of the Glass-Steagall Act and thereby letting commercial banks and investment houses merge, Dodd bears as much responsibility as anyone for the collapse of the world financial system. His Irish "cottage" and the terms of his mortgages are trivial by comparison, not that those things don't imply his having lost touch with Connecticut, a sense of entitlement as part of the ruling class.”

The crushing Dodd-Frank regulatory bill  may be Mr. Dodd’s feeble attempt at repentance.

It will not be long before the regulations in that bill are offset by exceptions awarded by the commanders of the nation’s new command economy in Washington. Companies too big to fail – Fannie Mae and Freddie Mac, for instance, both Government Sponsored Entities (GSEs) responsible for the swelling housing bubble the bursting of which preceded the collapse of the mortgage industry in the United States – always have been able to purchase the ears of congressmen prepared to dole out tax dollars to favored failing enterprises.

Before Mr. Mr. Dodd decided not to run for re-election, the Chairman of the Banking committee, always attentive to opportunities, was hauling in campaign dough from major financial institutions, among them Countrywide, the now bankrupt GSE whose CEO, the odious Angelo Mozillo, regarded Mr. Dodd as a “Friend Of Angelo.” Mr. Dodd recently pointed to a lack of reform in Fannie and Freddie as one of the biggest gaps in the new legislation.

In his Senate Swan Song, Mr. Dodd also lamented that “Powerful financial interests, free to throw money about with little transparency, have corrupted the basic principles underlying our representative democracy. And, as a result, our political system at the federal level is completely dysfunctional."

He signed off by quoting from 2 Timothy 4:1 – “I have fought the good fight, I have finished the race, I have kept the faith.”

The author of those words, concerned that Christians following him in later years would “turn away their ears from the truth and will turn aside to myths,” earned his crown of suffering and kept the faith by dying for it. St. Paul suffered martyrdom near Rome at a place called Aquae Salviae (now Tre Fontane), somewhat east of the Ostian Way, about two miles from the splendid Basilica of San Paolo fuori le mura, which marks his burial place.

Mr. Dodd, no doubt, will enjoy a more pleasant end. It has been rumored that Mr. Dodd has been offered a job as chairman of the Motion Picture Association of America. Should Mr. Dodd accept the position, he will earn a handsome salary of a little over a million a year. Should he decline the offer, his future still promises to be more remunerative than that of St. Paul -- and his final years less agonizing.

Monday, November 8, 2010

Garber Retained By Republicans To Examine Bridgeport Pile

Ross Garber, a partner in the Hartford, CT and Washington, D.C. offices of Shipman & Goodwin LLP and an attorney familiar with state prosecutions, has been engaged by the state Republican Party “to conduct a preliminary inquiry into widespread reports of Election Day issues in Bridgeport.” according to a media release issued by Republican Party Chairman Chris Healy.

Citing a preliminary inquiry, Mr. Garber today sent letters to the United States Attorney for the District of Connecticut, David Fein, and the Chief States Attorney for the State of Connecticut, Kevin Kane, pointing to evidence that the voting process in Bridgeport was riddled with “significant deficiencies, irregularities and improprieties, most notably in connection with the creation and distribution of ballots; the counting of votes; and the tabulation of election results.” The letter indicates that these issues “may have led to the disenfranchisement of those qualified to vote in the November 2 election and the violation of the rights of citizens of Connecticut under the state and federal Constitutions.”

In addition, Republican state Sen. Kevin Witkos has called upon both Attorney General Richard Blumenthal and Chief State’s Attorney Kevin Kane to investigate the improper use of reverse 9-1-1 on Election Day to notify select Bridgeport voters of extended voting hours.

“State law is very clear that reverse 9-1-1 is an emergency notification system only,” Witkos said. “As a matter of fact, the law very clearly states that the system is to be used ‘only in case of life-threatening emergencies.’ Not by any stretch of the imagination can notifying Bridgeport voters that they had an extra two hours to vote be considered a life-threatening emergency, or really any kind of an emergency.

“Since some people got the reverse 9-1-1 message and some did not, I have to ask if we are to assume that being notified about the extended voting hours rose to the level of a ‘life threatening emergency’ for residents of some parts of the city but not others. On its face, this is appalling.”

Democratic senator-elect Blumenthal shortly will be leaving his post as attorney general to assume his responsibilities in the U.S. Senate. Mr. Blumenthal, known for issuing florid press releases, may be able to respond to Senator Witkos before he leaves to take command in Washington of U.S. Sen. Chris Dodd’s soon to be vacant seat. But if Mr. Blumenthal should not be up to the task, a rapid response may be forthcoming from attorney general-elect George Jepsen, whose prior affiliation with the Democratic Party – Jepsen was at one time Democratic Party Chairman in Connecticut – certainly will not impair his judgment or his findings, for Jepsen is an honorable man.

Wednesday, November 3, 2010

Truer Than Blue Connecticut

Paul Bass’ estimate of the state of the state election is fairly accurate:

“Connecticut went true blue—bluer than ever. Malloy will have become the first Democrat to win the governor’s office since 1986. Democrat Richard Blumenthal captured an open U.S. Senate seat the party had seemed until only recently in danger of losing. And all five of the state’s U.S. House seats went to Democrats again—even though the 4th and 5th District appeared at times heading to turn red. Democrats also swept the under ticket constitutional offices.”

While Secretary of State Susan Bysiewicz has called the gubernatorial election in favor of Dan Malloy, Republicans may contest her finding in court. For someone who had been found by Connecticut’s Supreme Court to have lacked the requisite court experience to serve as attorney general, Bysiewicz certainly has been spending an inordinate amount of time in court.

Nationally, Republicans appear to have swept the boards: They won back the U.S. House of Representatives and a number of prime gubernatorial offices, but not in truer than blue Connecticut. No fewer than 19 legislative bodies switched from Democrat to Republican. Democrats have lost key chairmanships in the U.S. Congress; among the fallen is House Speaker Nancy Pelosi. When Rep. John Larson returns to the House I the new session, he will find it remodeled. Republicans also picked up some seats in the U.S. Senate.

Some commentators, though not yet here in truer-than-blue Connecticut, are asserting that the national change – not the sort of change President Barack Obama approves – is a stunning repudiation of the president’s agenda. After a display of partisanship unmatched in recent times during which Democrats passed a Health Care bill and a massive Dodd-Frank regulatory Bill, it is expected that leading Democrats in the congress, their status and power much diminished, will begin in the new session to call for non-partisanship as a means to consolidate their programs. Sen. Richard Blumenthal will be among them. Connecticut’s senior Democratic Sen. Joe Lieberman, repudiated by his own party, has indicated that he may be willing to caucus with Republicans.

Change is in the air, but not here in truer-than-blue Connecticut, the status quo state.

Sunday, October 31, 2010

Obama Hugs Himes, Blumenthal

U.S. Rep. Jim Himes and Attorney General Richard Blumenthal, who appeared at times during his campaign to be running once again as attorney general, were photographed Saturday locked in the embrace of President Barack Obama, who visited Bridgeport to give both their campaigns a shove over the finish line.

Himes, who represents a district that in the past has bolted to the Republican end of the political barracks, had previously sought to keep his distance from Mr. Obama. Following polls showing Himes lagging a bit behind his Republican opponent, Dan Debicella, Himes gratefully fell into Mr. Obama’s arms.

Both Mr. Himes and Mr. Blumenthal have attempted during their campaigns to place some political distance between themselves and Mr. Obama, who has been sliding in the polls. Mr. Blumenthal, for instance, has publicly disagreed with Mr. Obama on the utility of bailouts while warmly embracing U.S. Sen. Chris Dodd’s regulatory bill, and Mr. Himes is not quite as ferocious as Mr. Obama in attacking hedge fund businesses and wealthy CEOs who make their homes in Mr. Himes’ district.

Monday, October 25, 2010

Fannie, Freddie, Dodd, Blumenthal And Government Supported Entities

Even the New York Times, a publication that can hardly be accused of harboring black thoughts about the usual culprits in the U.S. Congress, referred last August in a news story to Fannie Mae and Freddie Mac, two quasi-private business enterprises cosseted by the Democratic Congress, as “wards of the state.” Previously, each had been designated a Government Supported Entity (GSE).

In a news story – the editorial board of the Times, predictably listing left, has already predictably endorsed Connecticut’s attorney General Richard Blumenthal for Congress – reporter Gretchen Morgenson snickered that Fannie and Freddie, now become wards of the state sucking the blood from taxpayers, “got just two mentions in the 1,500-page law known as Dodd-Frank: first, when it ordered the Treasury to produce a study on ending the taxpayer-owned status of the companies and, second, in a ‘sense of the Congress’ passage stating that efforts to improve the nation’s mortgage credit system ‘would be incomplete without enactment of meaningful structural reforms’ of Fannie and Freddie.”

“Fannie and Freddie amplified the housing boom by buying mortgages from lenders, allowing them to originate even more loans. They grew into behemoths because they lobbied aggressively and played the Washington political game to a T. But after both companies bought boatloads of risky mortgages, they required a federal rescue…

“Outwardly, Fannie and Freddie wrapped themselves in the American flag and the dream of homeownership. But internally, they were relentless in their pursuit of profits from partners in the mortgage boom. One of their biggest and most steadfast collaborators was Countrywide, the subprime lending machine run by Angelo R. Mozilo.”

OhMyGod!!! as the kids sometimes say. There it is – “Countrywide,” somewhat in the news these days largely owing to an ad recently released by the Linda McMahon campaign that mentions Blumenthal, according to recent polls the heir apparent to Dodd’s seat.

The McMahon ad was put under the microscope a few days ago by Hartford Courant scrutinizers and found wanting. The ad touches an important point, gently but inadequately. The Courant misses the critical point entirely -- this point: All the so called GSEs have failed miserably. But they failed upwards – because they were Government Backed Entities. Fannie, Freddie and Countrywide were too well connected with Washington insiders to fail. In the private marketplace, failure means bankruptcy, scowling judges, ransacked investors and, at the margin, possible jail terms for CEO frauds. In a command business structure in which Washington decides what business are to succeed or fail, GSEs, underwritten by taxpayers, are resuscitated when they fail -- by taxpayers. That is what a bailout is: It involves a taxpayer infusion of funds to politically connected businesses that are too big to fail engineered by a paternalistic government committed to a command economy that has become too big to fail.

This should be the issue in all Connecticut’s congressional campaigns: How long can any administration in Washington continue to shuttle the wealth of the nation to failed enterprises before the wealth is depleted?

Angelo Mozilo, the CEO of Countrywide, it should be noted, is not in jail. A settlement was made in his case, with the energetic assistance of more than a dozen state attorneys general, Blumenthal prominent among them. The settlement having been made, Blumenthal, who should have been monitoring his settlement, was distressed, we discover from recent news reports – really distressed, and surprised too, very surprised, indeed shocked – that Mozilo’s patrons in Washington took care of Countrywide and other of its GSE co-conspirators such as the Bank of America, which purchased Countrywide’s fraudulent mortgages, by passing along the bill to taxpayers.

It turns out, after all the sleight of hand, that taxpayers who contribute to pension funds will be picking up the tab. Billing pensioners is nothing new in Connecticut where, under a Democratic regime that claims to represent the interests of teachers and firefighter and other public servants, pension funds are regularly raided by legislators and governors, while political benefactors such as John Larson and Blumenthal look the other way.

We should draw two indispensable lessons from the Countrywide-Fannie-Freddie-Bank of America affair: 1) Monopolies such as Countrywide, Fannie and Freddie cannot be formed without the willing participation of governing officials such as Dodd and Barney Frank who afford them privileges not enjoyed by their competitors in a diverse free market, and 2) Any business savvy enough to become a cosseted GSE has acquired enough friends in Congress and the Obama administration to pass along to others any comeuppance served up with great fanfare by Blumenthal and his cohorts.

Blumenthal’s response to Bank of America’s great escape from sanctions thought by Blumenthal to have been imposed on them by the attorneys general is further evidence that the people of Connecticut should vote someone other than him to send to Congress.