Valentines Day
Matt Taibbi goes Obama scalp hunting
The master ranter takes a break from the Goldman warpath to blast away at the president's "big sellout"
Matt Taibbi’s latest screed, “Obama’s Big Sellout,” will undoubtedly be a big hit on the Web with the swelling legions of critics who believe the president is actively engaged in selling out the working man for Wall Street plutocrats. But baked into the narrative are enough misrepresentations — all designed to make Obama look as bad as possible — that it’s hard to take it seriously as a useful contribution to the ongoing discussion about how properly to fix the U.S. economy. It’s the classic Taibbi approach: vastly and sloppily overstate the case in absurd, over-the-top rhetoric while ignoring any possible counterargument.
Let’s start with a minor nit, Taibbi’s treatment of Austan Goolsbee, the University of Chicago economist who was one of Obama’s chief economic advisors during the campaign. Taibbi describes Goolsbee as a “populist” who was exiled to “Siberia” after the election. Meanwhile, Taibbi also criticizes Obama for retreating from his campaign promises to renegotiate NAFTA. Left out of the story is that Goolsbee achieved notoriety during the campaign precisely because he told Canadian government officials not to fuss about Obama’s NAFTA promises — dismissing them as just rhetoric. That’s hardly the stuff of populism. It also might have been fun to ask Goolsbee what he thinks of Taibbi’s overall thesis, since he’s been one of the toughest and most eloquent defenders of Obama’s overall strategy to date.
Next up, a much more serious point. Taibbi writes: “Neil Barofsky, the inspector general charged with overseeing TARP, estimates that the total cost of the Wall Street bailouts could eventually reach $23.7 trillion.” Here, Taibbi is doing the likes of Sean Hannity and Lou Dobbs, who both went nuts over this number, completely proud. The fact is, the $23.7 trillion number is ridiculous. Not only did Barofsky himself note that it was overblown, but it also included the total potential cost of government programs that never even got started or have already been canceled. Furthermore it assumes a financial cataclysm that would make the Great Depression look like a kindergarten water fight. Let’s outsource to the New York Times’ Floyd Norris:
[The number] assumes that every home mortgage backed by Fannie Mae or Freddie Mac goes into default, and all the homes turn out to be worthless. It assumes that every bank in America fails, with not a single asset worth even a penny. And it assumes that all of the assets held by money market mutual funds, including Treasury bills, turn out to be worthless.
It would also require the Treasury itself to default on securities purchased by the Federal Reserve system.
A responsible writer might also at least nod to the fact that a hefty percentage of TARP outlays have been or will be repaid to the tune of hundreds of billions of dollars, which chisels away at some of the meaning of the word “giveaway,” but that’s not Taibbi’s style.
Taibbi also ridicules a major early address by Obama on the economy, picking on one sentence: “Credit is the lifeblood of the economy,” he declared, pledging “the full force of the federal government to ensure that the major banks that Americans depend on have enough confidence and enough money.” To Taibbi, this means that Obama was simply going to encourage Americans to start binge borrowing again, and maintain the Bush status quo “of keeping a few megafirms rich at the expense of everyone else.
This passage betrays an amazing failure to recall exactly what was happening to the U.S. economy in the months after the presidential election, and during the first quarter of 2009. The economy was in utter freefall, in large part because everyone, from the biggest banks to the the lowliest consumer, was afraid to borrow or spend. Corporations that depended on short-term loans from banks to fund daily expenses were suddenly getting shut out, forcing a chain reaction of layoffs and liquidity squeezes that threatened to drag the entire economy even further down a disastrous spiral. The great achievement of the Obama presidency in those first few months was to effectively stabilize that situation, unlock the credit crunch, and halt one of the great financial panics of our time. As Obama noted himself last week, using taxpayer money to bail out the banks was incredibly unpopular and “galling.” But we’d all be a lot angrier and unhappier now, and unemployment would be a lot higher, if we’d stepped back and allowed Citigroup or Bank of America to fail.
Then there’s just silly stuff, like describing Alan Greenspan as “a staggeringly incompetent economic forecaster who was worshipped by four decades of politicians because he once dated Barbara Walters.” Staggeringly incompetent he may well be, but is the latter half of that description even funny?
Naturally, there is a lot of meat to Taibbi’s larger themes, such as the overrepresentation of Wall Street in Obama economic policy making — though strangely, Taibbi never even mentions Christina Romer, one of the top three Obama economic policy advisors, albeit the one who just happens to be the least connected to the financial industry. It’s also absolutely worth harping on the spectacle of how efforts at financial reform have been undermined over the course of the year, although from my vantage point, the administration has proposed plenty of good things that have then crashed against the rocks of congressional resistance and maneuvering.
But the co-optation of regulatory reform by Wall Street is an important story, and one that needs to be pressed at every point. It would be nice though, if the left could pursue that story without flaunting the same cavalier attitude toward the complexity of the economic challenges faced by the current administration that we are already so familiar with from the right.
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Our stubborn faith in aphrodisiacs
Scientists scoff at the idea, so why do we cling to age-old superstitions about sex and food?
(Credit: Salon) From the Garden of Eden to the oyster cellar bordellos of old New York, food and sex are entwined. Although every food under the sun has been touted as an aphrodisiac at some point in time, humans tend to get turned on by three categories of food: extremely expensive food, food that is risky to acquire, and food that resembles genitalia.
Rare and exotic foods have favored positions in the canon of culinary aphrodisiacs. Consider the truffle, the piranha and the labor of harvesting a plate full of sparrow tongues. Foods from far-off lands have the spicy whisper of perilous adventure, and there’s nothing quite like a hint of mystery to stimulate the imagination. For example, Aztec concubines taught the conquistadors to drink hot chocolate; when the Spaniards carried the exotic substance across the sea to Europe, they brought with it the rumor that the drink was an aphrodisiac. And during the reign of Charles I, when rice was still a luxury in Europe, noble Casanovas swore by the improbable aphrodisiac of rice boiled in milk and flavored with cinnamon.
Continue Reading CloseFelisa Rogers studied history and nonfiction writing at the Evergreen State College and went on to teach writing to kids for five years. She lives in Oregon’s coast range, where she works as a freelance writer and editor. More Felisa Rogers.
Occupy Valentine’s Day
From a "Parks and Rec"-inspired holiday to Quirkyalone Day, the "romantic-industrial complex" is under attack
(Credit: CLM via Shutterstock/Salon) A man and a woman are lying in bed under the covers, both of them beaming. She’s holding a handwritten sign that reads in part, “F–k a dozen roses.”
It’s one of several photos on the website Occupy Valentine’s Day, which applies the ethos of the anti-Wall Street movement to the consumerism of cupid’s holiday — and it’s just the latest attempt at creating an alternative celebration. “I think we need a new and different type of analysis around relationships,” says Samhita Mukhopadhyay, the site’s creator and author of “Outdated: Why Dating Is Ruining Your Love Life.” “This is not about being anti-love, but instead anti the unfair structures that force us to love a certain way.”
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Tracy Clark-Flory is a staff writer at Salon. Follow @tracyclarkflory on Twitter. More Tracy Clark-Flory.
Unhappy Valentine’s Day in Israel
A racist Israeli law divides married Palestinian couples; Jewish couples are exempt VIDEO
Taiseer Khatib and his wife, Lana This Valentine’s Day, I live in fear of being separated from my wife by the force of the Israeli state and the whim of bureaucrats enforcing a discriminatory law that can separate Palestinian citizens of Israel from Palestinian spouses from the occupied West Bank. This fear will hang over us for years if the “Citizenship and Entry Into Israel Law” is not revoked as the state can use this law to separate me from my family.
Continue Reading CloseTaiseer Khatib is a Ph.D student in Anthropology at the University of Haifa and a teacher at Western Galilee College in northern Israel, Taiseer's story is part of a series called 'Love Under Apartheid' and available at www.loveunderapartheid.com. More Taiseer Khatib.
My broken Valentine
After the heartbreak of my mom's illness, I sought comfort and release with men. But it was my friends who saved me
I’ve spent the past 10 months since my mom was diagnosed with advanced lung cancer looking for solace in men, a warm body in my bed. People cope with grief in different ways and, until recently, I’ve turned to sex.
I have gone after men who were emotionally unavailable and spectacularly wounded. Pleasure wasn’t the goal; it was entirely unwelcome. I didn’t want to feel good; I mostly wanted to feel a different kind of bad. I was never a cutter, but now I understand it — the idea of dragging a razor blade along your arm in hopes of relieving the vibrations of pain, letting it flow. It brought relief — a brief, post-coital moment of comfort and calm, followed by a vertigo-inducing sense of emptiness. True loneliness is lying in bed with someone who doesn’t care about you.
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Tracy Clark-Flory is a staff writer at Salon. Follow @tracyclarkflory on Twitter. More Tracy Clark-Flory.
Five movies to cure you of Valentine’s Day
This is a terrible holiday, whether you're single, dating or in between. Here are films that don't sugarcoat it
"Eternal Sunshine of the Spotless Mind" Is there a holiday more annoying than Valentine’s Day? Not only do you have to cram all of your “love” into some artificial gestures and dinner reservations if you’re in a relationship, but it’s also the one time of year when all the single people in the world can throw a giant pity party for themselves and not have anyone yell at them for it.
Too bad these two groups — those who hate Valentine’s Day because they’re in a relationship, and those who hate it because they aren’t — can’t just sit down on Feb. 14 and relax. Maybe pop in a movie? Though there are tons of films out there that promise you true love and a happy ending, and plenty more that tell you life is a piece of dog poop and you’ll end up an old cat lady (most of the latter are late ’90s indies directed by Neil LaBute), there are a couple movies that let you have it both ways. Movies that say, “Maybe love is both awesome and sucky.”
Continue Reading CloseDrew Grant is a staff writer for Salon. Follow her on Twitter at @videodrew. More Drew Grant.
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