Wednesday, April 1, 2009

Fire Ken Lewis for the $3 Billion in Merrill Lynch Bonuses


I've been meaning to point to Andy Stern's call to give Ken Lewis, CEO of Bank of America, the same treatment Obama gave Wagoner--the boot.

Both Rick Wagoner and Ken Lewis sunk large public companies -- putting thousands out of work and toppling the American economy -- while accepting billions in taxpayer bailouts. Yet only Wagoner got a pink slip. It's time for Treasury Secretary Geithner to replace Ken Lewis as CEO and let real reform take hold at Bank of America.

And Change to Win's petition calling to fire Lewis. 

But this tidbit--courtesy of Howie--will really make you want to oust Ken Lewis.

In its last days as an independent company, Merrill gave performance-based bonuses exclusively to employees earning $300,000 a year or more and holding a rank of vice president or higher, according to their financial statements. $3.62 billion was handed out to these executives - a sum equal to 36.2 percent of the $10 billion in taxpayer funds that were allocated to Merrill as part of the Troubled Asset Relief Program (TARP) before the bonuses were paid.

The company had been failing as a result of misadventures in the now infamous mortgaged-backed securities market which began crumbling with the decline of home values as the bubble burst.

The performance bonuses were determined by Merrill's compensation committee on December 8, 2008, before Merrill revealed that it lost $15 billion in the final three months of 2008, unusual timing according to court documents filed by New York Attorney General Andrew Cuomo in an ongoing suit against Merrill's former CEO.

In prior years, Merrill paid performance bonuses of this type after the end of the year, in January or February of the next year.

[snip]

The questionable timing and the amounts of these bonuses were not revealed to Bank of America shareholders when they voted to acquire Merrill. These facts raise questions about what government officials knew about the bonuses and when they knew it, according to Kucinich's letter. 

$3.62 billion would keep all of GM in business for a month or two. But you and I are dumping that on a bunch of Merrill Lynch guys who brought down our finance system.

Neoconservatism: The Return

from http://www.afterdowningstreet.org/node/41291

A new incarnation, a new name – and the same old warmongering

by Justin Raimondo, Antiwar.com

It was a neocon moment: there they were, the organizers of the Foreign Policy Initiative, the new neoconservative think-tank – Bill Kristol, Dan Senor, and Robert Kagan, with Clifford May, Randy Scheunemann, and junior neocon James Kirchick in tow. It was the occasion of FPI's first public event – their Washington coming out party, so to speak – and who should show up but I. Lewis "Scooter" Libby. A more fitting symbol of the neoconservative tendency in American politics – its history, its methods, and its essential criminality – could hardly be conceived.

While John McCain was ostensibly the main attraction, the real focus of the conference was a celebration of the man who defeated him. As David Weigel put it, the FPI conference turned into a "Neocons for Obama" festival, as super-hawkish foreign policy maven Fred Kagan hailed President Obama's Af-Pak offensive as the best thing since the Iraqi "surge": "He's definitely saying no to pulling back. It was a gutsy and correct decision." Yet all is not rosy: "Kagan worried/predicted that Obama's base would bristle at the plan, so 'he will be counting on some significant amount of support from his political opponents.'"

Not to worry. The brain-dead Obamaites are shamelessly eager to grant their Glorious Leader a pass, no matter what he does. So far, there is not a peep out of Obama's liberal supporters, except a few voices raised at the Nation, even as the president mounts a major escalation of the Long War. Not only that, but his supporters are rallying around their commander in chief, now that we're fighting the "right" war in the "right" way. And take a good look at some of his supporters…

FPI is the latest in a long line of neocon front groups, all of them – the Committee on the Present Danger, the Committee for a Free World, the Project for a New American Century [.pdf] – aimed at whipping the country into a militaristic frenzy. There is not only an ideological legacy here, but a genealogical one, as the catalytic role of a member of the Kristol family has always been instrumental in organizing these groups – Irving back in the day, his son William more recently. The one and only aim of this ideological Mafia is to conjure enemies and agitate relentlessly for a more aggressive foreign policy. The neocons may shift from Left to Right and back again when it comes to economic issues, but what they really care about – where their hottest passions lie – is in maintaining and expanding America's overseas empire.

They are ecstatic that Obama is launching a major offensive on the Afghan-Pakistan front, and they are urging him to do more. Their latest campaign is undertaken in cooperation with the "progressives" over at the Center for American Progress and the Center for a New American Security, both conduits for recent and future administration appointees.

The Af-Pak popular front means an alliance of convenience between the neocons and the White House, not at all a surprising development if one knows the history of these former Scoop Jackson Democrats turned "conservative" Republicans. They can function quite well no matter which party is in power, and they always have a prominent public forum, no matter how discredited their views are in the public mind. Of one thing we can be sure: the infiltration of the Obama administration has already begun, with Dennis Ross – who signed on to more than one PNAC letter urging war with Iraq – now ensconced as a envoy dealing with Iran.

First on the program, John A. Nagl, the Center for a New American Security's president. CNAS is enormously influential in the foreign policy councils of the Obama administration, and Nagl is a key figure among the so-called national security Democrats. He is the chief theoretician of the "nation-building" counterinsurgency doctrine espoused by Gen. David Petraeus, architect of the Iraqi "surge" that now is backfiring in our faces.

Nagl is paired with Robert Kagan, a second-generation neocon, co-founder, with Kristol the Younger, of PNAC, and a tireless cog in the War Party's propaganda machine. The topic under discussion: "Internationalism vs. Isolationism." Yes, the "internationalists" of both parties can put aside their differences and unite against the dreaded isolationists, those fearsome, anti-social troglodytes who insist on minding their own business and wish that the American government would, too.

Moderating this anti-"isolationist" hate-fest was Jackson Diehl, deputy editorial page editor at the Washington Post, a newspaper that serves as the voice and guardian of the bipartisan "internationalism" that rules out any real debate when it comes to foreign policy.

Rep. Jane Harman, noted Democratic hawk and chair of the House intelligence subcommittee, also spoke, alongside Republican John McHugh of New York, who was on the House floor the other day demanding that Congress "ensure the [president's Afghan-Pakistan] strategy is fully funded, resourced, and executed."

It doesn't matter to these people that the nation is sick of war and near bankruptcy: they live inside the Washington bubble, the Imperial City, where hubris permeates the air. It doesn't matter how many times the neocons have been repelled, they just keep bouncing back. This is a crew of respected "analysts" and policy wonks that has never been right, not about anything. From their gross overestimation of Soviet military power in the Cold War era, to the "domino theory" that kept us in Vietnam, to their willfully erroneous assumption that Iraq possessed "weapons of mass destruction," their foreign policy prognostications leave behind them a trail of uninterrupted error. It is a record unequaled in the history of ideas, yet the neocons' influence, while it is currently waning, never disappears altogether. The neocons always make a comeback, and a well-funded one to be sure.

The innocuous-sounding Foreign Policy Initiative is just the sort of camouflage the neocons need in the age of Obama: no more proclamations of a "New American Century," but rather more sober-sounding, "pragmatic" slogans. Together with their newfound liberal and "progressive" allies, they beat the drums for more military spending, a rising confrontation with Russia, and, of course, a showdown with Iran.

Having exhausted their previous host, the GOP, the neocons have no qualms about moving on. The Democrats will do just as well. Whoever's in power is the object of their affection. Their role is to whisper in the ear of the prince, to make sure he gets the "right" information – and then sabotage him if he fails to respond to their ministrations.

As the neocons hail Obama, their new conquering hero, the irony of all this underscores the difficulties of instituting real change in our foreign policy. The same old faces turn up no matter which party is in power, and the same old ideas – shopworn "internationalist" bromides – dominate a consensus that never questions whether an empire is good for the American people.

WSJ: AIG's Tax Shelter Business Was 'Even Bigger' Than Their CDOs; IRS Calls At Least One Of Them A 'Sham'


And apparently phony, to boot! I don't know about you, but I'm feeling even better about writing AIG that blank check. Joe Cassano was the head of AIG's financial products division who insured all those bad CDOs - you know, the ones that helped trigger this global meltdown?

The Feds are closing in on a criminal fraud case against Joseph Cassano, reports ABC News, which tracked down the former AIG Financial Products czar wearing blue spandex and a sheepish expression outside his home in London. And before you wonder why a Brooklyn College educated swaps dealer with a name like Joe Cassano lives in London again, the answer is probably "taxes" -- and decimating taxes, it may not shock you to know, is fast emerging as the cornerstone of the AIG business model.

An ABC News investigation found that Cassano set up some dozens of separate companies, some off-shore, to handle the transactions, effectively keeping them off the books of AIG and out of sight of regulators in the U.S. and the United Kingdom.

"This is the other very important issue underneath the AIG scandal," said [tax law expert Jack] Blum. "All of these contracts were moved offshore for the express purpose of getting out from under regulation and tax evasion."

And as breathtaking as the sum of taxpayer dollars AIG has managed to put down in its post-crisis nationalized afterlife, the zombie insurer might possibly have indirectly scammed the government out of more money back in its Triple-A days. Today the Wall Street Journal explores AIG's euphemistically-named "tax structuring" business in a story about an IRS battle with Hewlett-Packard over an offshore entity -- or what the IRS terms a "sham that lacked economic substance and a business purpose" -- that AIG set up for the company to collect $132 million in tax credits. AIG's tax business, is "even bigger than the credit-default swaps business that led to the company's meltdown," a person "familiar with the business" tells the Journal.

But that might be compartmentalizing things: we are beginning to suspect the credit default swap business and the tax "structuring" business were the same thing -- not just because they served the same end.

An attorney and tax shelter expert we spoke with today says AIG FP was one of the biggest players in the business of engineering offshore tax shelters for corporate and private clients that resembled a multibillion dollar tax evasion scheme called Son of Boss (we don't have time to figure out why) that thousands of corporations and wealthy individuals used to book phony capital gains losses and evade most or all of their income taxes in the late nineties and early 00s. The mind-numbing litany of esoteric loopholes such tax shelters employ to concoct said phony losses is something you don't want to hear about at this hour -- trust us -- but they are generally anchored by a set of exotic unregulated derivative securities whose 'notional value' can help fabricate losses that don't actually exist. Which is where Cassano came in -- only, obviously, the losses existed.

“This has the potential to be another several hundred billion dollars. If the auto companies go under, they have huge unfunded liabilities” in pension plans that would be passed on to the agency."

Pump and Dump Swindle Used Employee Retirement Funds

Via: Boston Globe:

Just months before the start of last year's stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

The agency refused to say how much of the new investment strategy has been implemented or how the fund has fared during the downturn. The agency would only say that its fund was down 6.5 percent - and all of its stock-related investments were down 23 percent - as of last Sept. 30, the end of its fiscal year. But that was before most of the recent stock market decline and just before the investment switch was scheduled to begin in earnest.

No statistics on the fund's subsequent performance were released.

Nonetheless, analysts expressed concern that large portions of the trust fund might have been lost at a time when many private pension plans are suffering major losses. The guarantee fund would be the only way to cover the plans if their companies go into bankruptcy.

"The truth is, this could be huge," said Zvi Bodie, a Boston University finance professor who in 2002 advised the agency to rely almost entirely on bonds. "This has the potential to be another several hundred billion dollars. If the auto companies go under, they have huge unfunded liabilities" in pension plans that would be passed on to the agency.

In addition, Peter Orszag, head of the White House Office of Management and Budget, has "serious concerns" about the agency, according to an Obama administration spokesman.

Last year, as director of the Congressional Budget Office, Orszag expressed alarm that the agency was "investing a greater share of its assets in risky securities," which he said would make it "more likely to experience a decline in the value of its portfolio during an economic downturn the point at which it is most likely to have to assume responsibility for a larger number of underfunded pension plans."

However, Charles E.F. Millard, the former agency director who implemented the strategy until the Bush administration departed on Jan. 20, dismissed such concerns. Millard, a former managing director of Lehman Brothers, said flatly that "the new investment policy is not riskier than the old one."



Financial Rescue Nears GDP as Pledges Top $12.8 Trillion


This isn't a rescue. It's a shakedown.

Via: Bloomberg:

The U.S. government and the Federal Reserve have spent, lent or committed $12.8 trillion, an amount that approaches the value of everything produced in the country last year, to stem the longest recession since the 1930s.

New pledges from the Fed, the Treasury Department and the Federal Deposit Insurance Corp. include $1 trillion for the Public-Private Investment Program, designed to help investors buy distressed loans and other assets from U.S. banks. The money works out to $42,105 for every man, woman and child in the U.S. and 14 times the $899.8 billion of currency in circulation. The nation's gross domestic product was $14.2 trillion in 2008.

President Barack Obama and Treasury Secretary Timothy Geithner met with the chief executives of the nation's 12 biggest banks on March 27 at the White House to enlist their support to thaw a 20-month freeze in bank lending.

"The president and Treasury Secretary Geithner have said they will do what it takes," Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said after the meeting. "If it is enough, that will be great. If it is not enough, they will have to do more."




Today on As the World Economy Burns. . . . from Firedoglake

from http://firedoglake.com/2009/04/01/today-on-as-the-world-economy-burns/

• Rob Johnson and I talk about Timothy Geithner's Private/Public Plan (YouTube).

Stiglitz: "Treasury hopes to get us out of the mess by replicating the flawed system that the private sector used to bring the world crashing down, with a proposal marked by overleveraging in the public sector, excessive complexity, poor incentives and a lack of transparency."

• Jamie Galbraith's testimony on Lessons From the New Deal (PDF): "Social insurance addressed a fundamental problem of capitalism: unregulated private markets are unstable. They cannot be relied on to provide an adequate minimum living standard for the working population. They cannot be relied on to provide a secure repository for savings. They cannot be relied upon to provide decent incomes in retirement. The problem of the Depression was perhaps above all a problem of insecurity, or as Roosevelt put it, of 'fear itself."

• Sarkozy threatens to walk out of G20 if Obama doesn't agree to tighter global financial regulation, saying "the crisis is too serious for us to hold a summit for nothing. . . . If things don't advance in London there will be an empty chair. I'll get up and leave."

• Simon Johnson applauds Obama's push for more open governance of the IMF: "The masterstroke is simple and also brilliant. The US is pushing for - and likely to get - the Managing Director (known as the MD) of the IMF to be selected through an open, competitive and merit-based selection process."

• The GAO says that there is only $32 billion left in the TARP fund, contra Tim Geithner who insists there is $135 billion left. Turbotax error perhaps?

"So in the United States, unemployment is skyrocketing. The uninsured is skyrocketing. The social fabric is coming unglued."

from http://cryptogon.com/?p=7796

You guys will love this.

Via: Solari:

Max Keiser: ….they (Goldman Sachs, JP Morgan et al) are systematically undermining the entire system. They are creating a mechanism to carve out equity and capital for themselves at the expense of society at large.

So in the United States, unemployment is skyrocketing. The uninsured is skyrocketing. The social fabric is coming unglued. You have riots all over the world…in Iceland and other countries due to this financial terrorism that was pre-meditated, on purpose and should be addressed as such.

There is a double standard. Why is the US pursuing so-called terrorists in nations like Afghanistan when they let these guys roam free on Wall Street? They're the worst criminals of all – they do far more damage.

Interviewer: Let's leave Afghanistan out of this…

Max Keiser: But why? It's a great source of poppy and heroin which fuels a lot of these bankers bonuses. Let's be frank about that.

More: maxkeiser.com




AIG Crisis Could be the Tip of an Insurance Iceberg from cryptogon.com by Kevin

from http://cryptogon.com/?p=7802

Via: Los Angeles Times:

The company's situation reflects problems throughout the life insurance industry as investments suffer. Further strain could bring about a second financial crisis.

When insurance giant American International Group Inc. imploded last fall, the firm's problems were quickly blamed not on its core insurance business but on an obscure operation that traded exotic mortgage securities.

But as the economic crisis deepens, it has become clear that AIG's problems extend across most of its business lines, including its massive life insurance and retirement services operations, which reported a staggering $18-billion quarterly loss this month.

Rep. Paul Ryan (R-WI): Our Budget Last Week Was Just A ‘Marketing Document’ from Think Progress

from http://thinkprogress.org/2009/04/01/not-a-budget/

Last week, President Obama complained during a prime-time press conference that Congressional Republicans were failing to offer concrete alternatives to his budget, opting instead to simply obstruct and delay his own. In response, House Minority Leader John Boehner (R-OH) hurriedly assembled a news conference to introduce the House Republican's alternative "budget" (the one without any numbers). "Well, that's not true because here it is, Mr. President," Boehner said, brandishing a shiny 19-page document in his hand.

But reporters refused to fall for their stunt, pointing out that budgets need to be more than a "glossy pamphlet" without any numbers. During the same press conference, one reporter asked, "Are you going to have any further details on this today?" Another went further, asking, "What about some numbers? What about the out-year deficit? What about balancing the budget? How are you going to do it?" Boehner and others defended the pamphlet, calling it a "detailed road-to-recovery plan."

In face of all this criticism, Rep. Paul Ryan (R-WI) is now backtracking and admitting that last week's budget was just a "marketing" stunt. Asked by Morning Joe co-host Mika Brzezinski if the budget legislation he's introducing in the House today is "a little bit more clear than the one we saw last week," Ryan responded by claiming last week's budget wasn't a budget at all, but rather just a "marketing document":

RYAN: Yes. The thing you saw last week was not the alternative budget. This is our alternative budget we're bringing to the floor today. […]

What was released last week was more of a marketing document. Not a budget. This is our budget.

Watch a compilation:

http://www.youtube.com/watch?v=JHTHouJQtP4

Despite his admission, Ryan's budget proposal doesn't appear to make any more economic sense than it did last week. Indeed, despite the growing recession, Ryan is calling for a five-year spending freeze which, as Pat Garofalo explains, would "negate the stimulus, while betting economic recovery will occur thanks to an abundance of supply-side tax cuts."

Geithner Gone? from Dealbreaker

from http://dealbreaker.com/2009/04/geithner-gone.php
Despite assurances to the contrary, President Obama has personally asked Treasury Secretary Timothy Geithner to step down, sources told HousingWire early Wednesday morning. Geithner, who has seen a whipsaw of public opinion over his handling of bonuses at American International Group and the introduction of a so-called public-private investment program designed to clear bad assets off of bank balance sheets, has been the subject of strong criticism from Republicans and even a few prominent Democrats.

The stunning move comes after Geithner's popularity on Wall Street has gained momentum in the past week, as investors have largely cheered a proposal to see the Treasury, Federal Reserve, and FDIC partner with private investors to clear toxic assets off of of the hands of troubled banks.

"It's being done quietly, but the President has asked Geithner to step aside," said a source close to the Cabinet with knowledge of the decision. "He feels there is too much of a lack of trust, and he was frankly expecting more of a bounce in financial markets from the PPIP than what's been seen so far."

Geithner Out at the Treasury: Source [Housing Wire]


20 Steps To Armageddon

from http://ashizashiz.blogspot.com/2009/04/20-steps-to-armageddon.html


Stunning is the best word to describe it. Like, halted-in-your-tracks there's no way they really believe what they're saying stunning. Recovery? RECOVERY???? Consumer spending??? What??? WHAT???!?!? Look, it's really so very simple. Here's the 20-step road to Armageddon. Virtually guaranteed by the actions of our leaders beginning in the early 1970s and culminating with the Obama-Summers-Geithner bailout mania:
  1. Consumers are tapped out
  2. Consumers are in debt
  3. Consumers want to get out of debt
  4. Consumer's cannot get credit
  5. Consmer's don't want credit
  6. Consumer purchasing power is gone
  7. Businesses are not selling stuff
  8. Businesses raise prices to make up for poor sales
  9. Consumers cannot pay higher prices
  10. Consumers cannot get out of debt
  11. Stimulus monies are hoarded
  12. Stimulus monies are used to pay down debt
  13. Stimulus monies create NO new jobs
  14. The velocity of money crashes
  15. Deflation accelerates
  16. Prices crash
  17. Businesses close en masse
  18. Unemployment explodes
  19. Consumers starve
  20. Civil War erupts

laughable: GOP budget missing at press conference

GOP budget missing at press conference

GOP budget missing at press conference

from http://rawstory.com/blog/2009/04/republicans-have-no-budget-at-press-conference/

At a press conference Wednesday, the two top Congressional Republicans -- House Minority Leader John Boehner (R-OH) and Senate House Minority Leader Mitch McConnell (R-KY) addressed a crowd of some 50 Republicans and their colleagues and ripped Obama's multi-trillion-dollar budget as too expensive. But they didn't, apparently, have a copy of their own budget, according to reporter Sam Stein.

"Do you guys have a formal budget yet?" asked a reporter.

"Mr. Ryan will outline the Republican budget at 10:30 this morning. And yes we do have it," replied Boehner, referring to Rep. Paul Ryan (R-Wisc.).

A silence followed, with reporters apparently unsure what to ask next.

Democrats mocked the GOP budget, details of which appear fully in the Wall Street Journal.

"If you expected a GOP alternative to the failed policies of the past that got our country into the worst economic crisis since the Great Depression, then I have two words for you: April Fool's," Kenneth Baer, the Obama Office of Management and Budget communications director, said.

"Well, look, I thought it was most appropriate that this thing came out on April Fools' Day because this thing is the biggest April Fools' Joke and cruelest that we have had in years," Huffington's Sam Stein quoted Obama's Austan Goolsbee as saying. "If you look at what they are doing...they are calling for putting in a multi-trillion dollar additional tax cut for the highest income Americans, they are now talking about privatizing Medicare turning it into a voucher so that they can cut it substantially. That's not the reform of an entitlement -- it is the gutting of a program."

Earlier this month, Raw Story noted that Republicans were mocked for introducing a budget that contained no specific budget -- or plan for government spending.

The Republican Road to Recovery, as the 19-page document is titled, is a three-part outline of where congressional Republicans stand on Obama's budget plan. Curbing government spending, creating jobs and lowering taxes, and controlling the debt are the foundations of the Republican's argument. Much of the "Road to Recovery" is specific criticisms of the Democrat budget and policies, like energy and health care reform.

However, it is not a budget. There is no plan for government spending, nor are there tables illustrating how money will be allocated. When reporters received copies of the document, they realized that an alternative Republican budget wasn't going to be announced, even though the press conference was supposed to be the announcement of that budget.

According to the Huffington Post, reporters began questioning Boehner on specifics. "Are you going to have any further details on this today?" one reporter asked. "On what?" responded Boehner. "There's no detail in here," the reporter explained.

White House spokesman Robert Gibbs was visibly pleased by the lack of detail in the Republican's budget. "It's interesting to have a budget that doesn't contain any numbers. I think the 'Party of No' has become the party of no new ideas."

-John Byrne


"Bush environment chairman now coal cheerleader..."

Exclusive: Bush environment chairman now coal cheerleader...

Exclusive: Bush environment chairman now coal cheerleader...

from http://rawstory.com/news/2008/Former_Bush_official_proclaims_Coal_clean_0401.html

You can't teach an old dog new tricks. That saying stands true for one former Bush official, who has tried to reinvent himself as an ally of clean, renewable energy proponents while still touting the virtues of "clean coal."

Even though the hurdles to achieving carbon emissions capture on a mass scale have been well documented and even though no new nuclear power plant has been built in the U.S. in 30 years, James Connaughton, former chairman of the White House Council on Environmental Quality is preaching the virtues of clean coal and nuclear power as the best solutions to domestic energy needs.

"Coal is clean now," proclaimed Connaughton, Tuesday night during the taping of the premier episode of PBS's"Planet Forward," where he was a guest panelist. He argued in favor of a host of energy alternatives to foreign oil but advocated the most in favor of building new coal and nuclear power plants.

As chairman of the Council on Environmental Quality, Connaughton argued in favor of "aspirational goals" for industries to reduce their green house gas emissions rather than binding commitments. A former lobbyist for utilities, mining and chemical companies, he has been criticized for weakening government standards on the amount of arsenic allowed in drinking water and, more generally, for advising President Bush to ignore calls for government-mandated reductions in industrial greenhouse gas emissions.

Connaughton now works in the private sector as executive vice president of Constellation Energy, a Fortune 500 company that sells electricity and natural gas.

Pollution control improvements made to coal plants as a result of The Clean Air Act, have made coal much cleaner as an energy source, Connaughton said, adding "we shouldn't give it up as an option" in the county's energy future.

Writing on the clean coal myth, The Washington Post's Steve Mufson says, "The phrase 'clean coal' is polluting the energy debate. The phrase is an oxymoron. We can come up with ways to clean up after coal - many of them very expensive and, in the case of coal's greenhouse gas emissions, untried. And we can use coal more efficiently than in the past. But coal itself is not clean and never will be. That is a matter of chemistry and geology."

Connaughton's promotion of coal during the show's filming did not go unchallenged. His co-panelist, L. Hunter Lovins, president of the nonprofit sustainability group, Natural Capitalism Solutions, objected to his painting of coal as an environmentally-friendly energy source.

"I will never speak against research [into carbon sequestration of coal plant emissions]," Lovins said. "I don't think there is a future is in the commercialization of it."

Lovins said the U.S. would be best served by immediately putting resources into improving energy efficiency. She applauded the decision to assign $3.2 billion from the 2009 stimulus bill towards energy efficiency and conservation projects. Weatherizing preexisting buildings and reforming the nation's energy grid should take precedence over developing new solar and wind technologies because the energy savings from efficiency gains will be more immediate, she said.

Connaughton, whose company does sell power produced from coal plants, said with half of the country's electricity already being produced from coal, it is unavoidable that coal will play a long-term role in the U.S.' energy future. When pressed, however, he did admit that no scientist has yet figured out a way to scale up carbon sequestration so it can be used to capture the emissions of coal plants.

"It's going to take at least 10 to 15 years," he said of where the technology stands now.

Lovins pointed out that one of the positives of coal energy, it's low price, goes away when you add in carbon capture technology, which doubles the price of it.

Connaughton responded that Moore's Law, which describes the exponential increases in computer technology efficiency over time, would eventually bring the price of carbon capture down as it is already bringing down the cost of solar technology.

He also argued in favor of building more nuclear power plants, saying that they are the cleanest of all energy technologies and that the U.S. could reuse nuclear material as is done in France.

The show's third panelist, Shai Agassi, founder and CEO of Better Place, a company that is building the first national electric vehicle network in Israel, said if nuclear power was turned to as the solution to the planet's energy needs, it would require the construction of a new nuclear power plant every 18 hours. While China has plans to build nuclear power plants, Agassi said the country had already decided to limit the number of plants to only 40 because of the country's lack of uranium resources.

"That won't be the backbone of our strategy," Agassi said of nuclear power's future in America.

Agassi argued in favor of solar technology, saying it was the only energy source that could scale up to meet all of the energy needs of the developing and industrial world.

Planet Forward, which focuses on climate change and energy policy with a large emphasis on viewer interaction through the Web, will begin airing on PBS in mid-April. It is filmed at the George Washington University and hosted by Frank Sesno, a professor of media affairs at the university.

Joe The Plumber Confronted By Union Workers, Gets Stumped On Policy (VIDEO)

from http://www.huffingtonpost.com/2009/04/01/joe-the-plumber-speaks-ou_n_181696.html

"Horny" attention-monger Samuel J. "Joe the 'Plumber'" Wurzelbacher has been asked by Americans For Prosperity to serve as the group's labor-busting shill in the campaign against the Employee Free Choice Act, which would allow labor unions to form through both a secret ballot or by card-check -- a choice that would reduce instances of anti-union intimidation common to the formative stages of organizing. And, as with almost all things related to Joe The Plumber -- like war reporting and taxes and probably plumbing -- ol' Joe just walks in front of cameras and flaunts the fact that he doesn't know a blessed thing about what he's talking about and doesn't plan to change. (I say "almost all things" because I had hoped that he had found his true calling as a digital teevee conversion spokesmodel, which he was actually okay at.)

Anyway, via Greg Sargent, here's a video of a reporter from Keystone Progress attempting to divine what, if anything, Wurzelbacher knows about the labor law issues he's spokesmodeling for now. SPOILER ALERT: HE DOES NOT KNOW A BLESSED THING, GAH. What Joe knows how to do, apparently, is dodge questions, say the word "brother" over and over again like he's Desmond from Lost, and bleat senselessly about how "it's all about America." It's no wonder that actual plumbers hate this phony like he was feline leukemia.

[WATCH.]

http://www.youtube.com/watch?v=kR9lhvAE1gQ


GOP budget: "Democrats, in contrast, had plenty to say, with Obama officials mocking the Republican document as a sad April Fools prank. "

from http://www.huffingtonpost.com/2009/04/01/white-house-house-gop-bud_n_181687.html

House and Senate Republicans emerged from an early morning meeting in a closed House chamber Wednesday morning to unveil their much-awaited budget alternative.

Roughly a hundred GOP men and women descended the East Capitol steps in a light drizzle to announce their product to the American people.

House Minority Leader John Boehner (R-Ohio) and Senate Minority Leader Mitch McConnell joined their colleagues, entering from the side, and addressed the gathered reporters.

After ripping the Democratic budget as too expensive, Boehner said that "Republicans in the House will offer a better solution that'll be less on spending, less on taxes and a lot less on debt for our kids and grandkids."

But there was no budget. "Do you guys have a formal budget yet?" asked a reporter.

"Mr. Ryan will outline the Republican budget at 10:30 this morning. And yes we do have it," replied Boehner, referring to Rep. Paul Ryan (R-Wisc.).

A silence followed, with reporters apparently unsure what to ask next.

Democrats, in contrast, had plenty to say, with Obama officials mocking the Republican document as a sad April Fools prank.

"If you expected a GOP alternative to the failed policies of the past that got our country into the worst economic crisis since the Great Depression, then I have two words for you: April Fool's," said Kenneth Baer, OMB communications director.

Another administration official added on background: "We read the Ryan budget alternative -- or what we know of it -- in the Wall Street Journal. It appears that this is more of the same failed policies that got us into this mess."

Meanwhile, Austan Goolsbee, an economic adviser to the president and increasingly active administration spokesman, told MSNBC: "Well, look, I thought it was most appropriate that this thing came out on April Fools' Day because this thing is the biggest April Fools' Joke and cruelest that we have had in years. If you look at what they are doing...they are calling for putting in a multi-trillion dollar additional tax cut for the highest income Americans, they are now talking about privatizing Medicare turning it into a voucher so that they can cut it substantially. That's not the reform of an entitlement -- it is the gutting of a program."

Baer's and Goolsbee's remarks are far sharper than the generally inclusive approach the Obama White House took with the House GOP during the crafting of the stimulus. The change in tone may be owed to the fact that the president was unable to persuade a single Republican in the House to vote for that recovery package. Mainly, however, the alternatives that the GOP is offering for the budget -- entitlement reform, $4 million in tax cuts primarily for the wealthy, a freeze on discretionary spending for five years on everything except national defense and veterans health care -- are diametrically at odds with where the president stands.

That said, Goolsbee pivoted from his condemnation of the GOP to note potential points of agreement, telling MSNBC: "There are a few areas where they seem to be looking in the correct direction. And that is following some of the reforms that [OMB Director] Peter Orszag and others in the administration have been putting forward and some health care reforms. But in a lot of areas it is problematic."