Permanent link to MTA daily media news

A faraway people, of whom we know nothing (by Michael J. Smith at Stop Me Before I Vote Again)

US blames Hamas for Gaza attacks (The Australian)
THE United States has blamed the Islamist group Hamas for breaking a cease-fire and urged the Jewish state to avoid civilian casualties after Israeli air strikes killed more than 200 people in Gaza… There was no immediate comment on the Israeli air strikes from Mr Obama, who is vacationing with his family in Hawaii, or his staff. [Emphasis added.]

PEBO Speaks to Rice (by Jake Tapper at Political Punch, ABC News)
An Obama transition aide tells ABC News that President-elect Obama spoke by phone today with Secretary of State Condoleezza Rice to discuss the situations in Gaza and in South Asia. The call lasted approximately eight minutes and was initiated by the president-elect, who is vacationing in Hawaii with his family. The president-elect appreciated the call and the information from Secretary Rice, the transition aide says, adding that Obama will continue to closely monitor these and other global events.

Obama’s Hawaii retreat loses power for 11 hours (AP)
HONOLULU – President-elect Barack Obama’s Hawaiian vacation was darkened for 11 hours Friday night and early Saturday when a power outage enveloped the island of Oahu… Honolulu Mayor Mufi Hannemann said three generators had been installed earlier for Obama’s rented compound. A fourth generator sent by Hawaiian Electric Co. was turned away, he said… Transition officials would not say if generators had been installed, but an aide said no generators were used and the Obamas spent the evening in the dark.

Hope Chest (by David Shribman)
[A]mid the seaspray on his Hawaiian holiday and his Blackberry conversations with friends and advisers, Obama surely recognizes that hope is both a tool and a burden. He is well-versed in the use of that tool; more even than Franklin Delano Roosevelt he used it with brilliance and effectiveness in his presidential campaign… The conventional wisdom is that Obama’s first chores are to prepare for national-security challenges and to deal with the economy… But the truth is that Obama’s first chore is not to manage diplomacy or the economy. His first chore is to manage hope… [N]ow that we have put aside “A Christmas Carol” for another year and while we move from Bleak House to Great Expectations, Obama is facing the question of how to satisfy all those expectations, great and small…

One of the things he must indicate, on Jan. 20 and beyond, is that hope may be the overture for the Obama years, but it cannot provide the lyrics.
I think Obama’s success with the hopey-changey message is closely related to the syndrome that gave us the dot com bubble.  And the housing bubble.  And all the other bubbles.  Don’t forget Granny Bee’s commentary from last January, Bubbleheads. But can Americans overcome their predilection for bubble-iciousness?  See below.

Boom, Bust, Repeat (by Daniel Gross)
[Panic: The Story of Modern Financial Insanity, edited by Michael Lewis] is to a large degree a chronicle of the capacity of highly paid professionals for self-delusion. This volume could just as easily have been titled “Complacency.” As Lewis shows, there’s something distinctly Ameri can in our propensity to blow bubbles until they pop, spend a few months licking our wounds and then hit replay. “Yuppies’ Last Rites Readied,” declared the headline on a New York Times article of Oct. 21, 1987, which documented how the stock market crash was causing materialist, money-soaked urban dwellers to reduce conspicuous consumption and focus more on human relationships. Of course, that moral awakening lasted only as long as the downturn. And the same business publications that do such a great job of dissecting the bubbles once they’ve popped are the same ones that help promote and sustain the next one. What drives this? It’s not simply greed, or stupidity, but a kind of learned naïveté. We convince ourselves, over and over again, that nothing can go wrong, and that even if it does the smart ones among us will be insulated from any ill effects.

Missing Minsky (by John Tepper Marlin , thanks to Economist’s View)
Martin Wolf, at FT.com, wrote on December 24 that Keynes offers us the best way to think about the financial crisis: “The ghost of John Maynard Keynes, the father of macroeconomics, has returned [and] that of his most interesting disciple, Hyman Minsky.” I first heard Hy Minsky talk in the 1960s. His main message I summarize as follows:

1. Financial systems have a built-in tendency to euphoria. The financial market does not tend toward stability. The opposite is true. Bankers and other financial actors borrow more and more heavily, making the system increasingly vulnerable to panic. Lenders start after a scare by being conservative, hedging their bets. But eventually confidence returns and speculation takes hold again. Then investors get to the Ponzi phase – manic use of credit, a euphoria or bubble.
2. The credit cycle tends to manic, ends with panic. The Ponzi phase continues until some investors exit with their profits, or the central bank raises interest rates to reduce investor euphoria, and then a financial institution runs into difficulty. The failure causes a bankers’ panic. Turning points in the five stages of the cycle are called “Minsky moments”.
3. The system tends to instability and must be regulated. Fashions in monetary theory have moved from a belief that Keynesian sophisticates could “fine-tune” the economy, to fear that the Fed had lost control of the ability to contain inflation, to a belief that markets work best with minimal interference. Hy rejected all these ideas, preaching consistently about the need for regulation and the importance of leaning against the excesses of what Keynes called the animal spirits of investors.

Economics learns a thing or two from evolutionary biology (by Massimo Pigliucci, thanks to Economist’s View)
[H]ow it is possible that so many smart people in the financial sector made irrational decisions over a period of years, despite clear data showing there was a problem, and eventually leading to a worldwide economic crisis that is at the least poking at, if not shaking, the foundations of capitalism itself. Part of the answer is to be found in the persistent idea in economics that “markets” work because people are rational agents who act in their own self-interest and have perfect, instantaneous access to relevant information about the businesses they are considering investing in…

But now there is a new kid on the block: “behavioral finance” takes seriously the idea that people act somewhat rationally some of the time but can spiral into downright panic at other times… The old “efficient markets hypothesis” underlying classical models is being replaced by the “adaptive markets hypothesis,” where Adam Smith’s invisible hand becomes more directly analogous to natural selection. As evolutionary biologists have found out, natural selection is not an optimizing process, but a satisficying one, meaning that it produces whatever outcome happened to be achievable at a particular historical moment and that works “well enough” for the problem at hand. Moreover, it does so while “wasting” a lot of resources and often marching straight into dead ends (just think that over 99% of the species that ever existed went extinct). The emerging picture is much more realistic than the rationalist paradigm, but it sure is a lot more messy too.

You’re not even likable enough, Frank Rich (by heidiliofpotpourri at The Confluence)
Frank Rich, an entrenched New York Times columnist, finally decided to publish a wee bit of criticism directed a President Elect Obama… I wholeheartedly agree that the decision to have Rick Warren bless his inauguration is no Bay of Pigs. But Frank Rich … calls the Warren invitation and Warren’s role in the event an “asterisk to the joyous inaugural of our first black President.” Having a bigoted, homophophic, misogynistic cleric headline your inaugural is likely to render the event anything but joyous for millions of Americans. What Rich regards as an asterisk, they recognize as the sharp elbow to the ribs… Precisely because this is no Bay of Pigs, Mr. Obama can do something about the situation before he goes through with a bad choice.

Hillary Remains Most Admired Woman – Gallup (by campskunk at Alegre’s Corner)
Hillary won again, as she has every year since 2001, when Laura Bush won. Prior to that, Hillary won every year from 1993 to 2000. Prior to that, it was often won by the First Lady… So why has Hillary practically retired the trophy, regardless of who’s First Lady? Maybe it’s all those people who hold the values of the first and second generation feminists, that what matters is what you DO, not what you’re a symbol of.

SWEET CAROLINE: I’M SET TO SERVE (New York Post)
Caroline Kennedy broke her silence with the start of a media blitz yesterday, defending her qualifications to replace Sen. Hillary Rodham Clinton and confidently saying she’s up to the job. Kennedy sat for half-hour interviews with The Associated Press and NY1 after two weeks in which the controlled rollout of her candidacy raised questions about her credentials… Kennedy … said the 9/11 attacks and her work stumping for President-elect Barack Obama were motivating factors in asking Gov. Paterson, who has sole power to fill the Senate seat, to consider her. Paterson has made clear he doesn’t consider Kennedy the front-runner for the job and with criticism of her effort mounting, the Camelot scion is under pressure to demonstrate publicly why she wants – and should get – the job.

Kennedy Will Work Twice as Hard (by Lady Boomer NYC at The Confluence)
December 26, 2008 — Today, NY Senatorial bidder, Caroline Kennedy, has stated in an AP interview that she knows she’ll have to work twice as hard in her job if appointed by Governor David Paterson… [L]ike Caroline Kennedy … [I’m] a firm believer in and product of lifelong learning, and have had many careers… [L]ately I’ve been reconsidering my career choices. and have decided that I want to be a surgeon. In fact, I’m going for the on-the-job training program. So, if I work twice as hard, will you let me operate on your broken leg? No wait, I think I’ll be a mechanic. Can I rebuild your engine? I think I can, I think I can. After all, reality TV, and this past year, have taught me that anybody can do just about anything they want to, and I mean that in every way.
All you have to do is sleep at a Holiday Inn Express.  EVERYONE knows that.

Send Caroline Kennedy to Court of St. James (by Steve Clemons at The Washington Note)
Caroline Kennedy’s first efforts to sell herself to New Yorkers — but also to make herself look like a compelling choice other than having a good “brand name” to Americans at large — has not gone well. Barack Obama should stop this grilling and torment that is being prepared for Kennedy and all who helped push her candidacy for “appointment” by offering Kennedy the Court of St. James, the U.S. Ambassadorship to Great Britain. Kennedy has an outstanding record of public service to those in need, and she is savvy about the who’s who of the political world. In fact, she’s playing the role of Ambassador on behalf of her father’s memory and her clan for a long time — while maintaining a tight lid on her private affairs. She’s incredibly “ambassadorial” already.
What a great idea, Steve!  And to those who say she should get the senate seat because it once belonged to her uncle Bobby, let me remind the history challenged that the ambassadorship to Great Britain was once held by her grandfather Joe.

Minn. court blocks Coleman on double recount votes (AP)
ST. PAUL, Minn. – Minnesota’s highest court on Wednesday ruled against Republican Sen. Norm Coleman’s attempt to keep dozens of possible double votes from Democratic-heavy precincts out of the long-running U.S. Senate recount, but left the door open for a lawsuit.

Blago Busted – Chicago Sun-Times

‘Wrong planet’ if he is guilty
Gov. Blagojevich said Friday that if what he has done as governor is an impeachable offense, he’s living on the “wrong planet” and is in the “wrong place.”

Corruption crisis creates confusion in Illinois
SPRINGFIELD, Ill. — Embattled Illinois Gov. Rod Blagojevich has made a point of regularly going to work at his office in Chicago. He has signed legislation and issued pardons. He has sent out press releases about predatory lending and fighting poverty.

Fitzgerald asks panel not to subpoena Obama aides
The Illinois House committee investigating a possible impeachment of Gov. Rod Blagojevich said Saturday that members won’t subpoena two incoming White House advisers as the governor’s attorney requested.

Blago: Help me figure this one out (by Joseph Cannon at Cannonfire)
As you know, impeachment proceedings against Governor Blagojevich are afoot. Blago’s lawyer, Ed Genson, wants some notable figures to testify, including Rahm Emanuel, Valerie Jarrett and JJJ. But Patrick Fitzgerald’s office doesn’t want them to testify… Why is Fitz keeping these witnesses under wraps? The only explanation that makes sense to me is that he is making deals with them: “If you help us, we’ll try to make sure that the public never finds about XYZ…” Deals for what purpose? For testimony against Blagojevich — or against someone else?

RNC Chair Candidate Distributes ‘Barack The Magic Negro’ As His Christmas Greeting (Think Progress)
Last year, Rush Limbaugh came under intense criticism for repeatedly airing a parody song called “Barack the Magic Negro” by conservative satirist Paul Shanklin. The song, which dealt with Obama’s popularity amongst white voters, was widely attacked as being racist. Doing an Al Sharpton impersonation, Shanklin sings the song to the tune of “Puff the Magic Dragon.” Limbaugh, however, tried to defend it as “creative” and “funny.”
Click through for a link to the song.  McCain refrained from racist attacks.  The right wing is only just getting started.

America can’t wait for Bush to leave. (Think Progress)
A new CNN/Opinion Research Corp. poll finds that 75 percent of Americans are glad President Bush is leaving office; just 23 percent indicated that they will miss him. CNN notes that when Clinton left office, more Americans — 45 percent — said they would miss him. Twenty-eight percent also believe that Bush is the worst president ever.

Australia may take Guantanamo detainees. (Think Progress)
Australian Prime Minister Kevin Rudd’s office has said that his country may accept Guantanamo Bay detainees, which could “make it easier for Obama to fulfill his campaign pledge to shut the prison.” Australia joins Germany and Portugal in expressing a willingness to take some of the detainees. 

Bush’s $1 Trillion War on Terror: Even Costlier Than Expected (Time)
A trio of recent reports – none by the Bush Administration - suggests that sometime early in the Obama presidency, spending on the wars started since 9/11 will pass the trillion-dollar mark. Even after adjusting for inflation, that’s four times more than America spent fighting World War I, and more than 10 times the cost of 1991’s Persian Gulf War (90 percent of which was paid for by U.S. allies). The war on terror looks set to surpass the cost the Korean and Vietnam wars combined, to be topped only by World War II’s price tag of $3.5 trillion.

The Influence Game: Unlikely groups seek job funds (AP)
WASHINGTON – Zoos, the bicycle industry and advocates of beach replenishment share something this holiday season: They’re all hoping for a slice of the mammoth economic stimulus package President-elect Barack Obama and Congress hope to pass early next year.

Like Many States, Ohio Reaches for A Lifeline (Washington Post)
As the economy sputters and tax revenue plummets, governors and mayors across the United States are lining up to ask President-elect Barack Obama and the new Congress for hundreds of billions of dollars to plug holes in their budgets, arguing that services will suffer and joblessness will rise if Washington does not come to the rescue.

Protectionist dominoes are beginning to tumble across the world (The Telegraph, U.K.)
The riots have begun. Civil protest is breaking out in cities across Russia, China, and beyond. Greece has been in turmoil for 11 days. The mood seems to have turned “pre-insurrectionary” in parts of Athens – to borrow from the Marxist handbook. This is a foretaste of what the world may face as the “crisis of capitalism” – another Marxist phase making a comeback – starts to turn two hundred million lives upside down. We are advancing to the political stage of this global train wreck. Regimes are being tested. Those relying on perma-boom to mask a lack of democratic or ancestral legitimacy may try to gain time by the usual methods: trade barriers, sabre-rattling, and barbed wire.
The Telegraph is a conservative newspaper, so of course any attempt by countries protect their citizens’ ability to earn a living must be seen as oh-so-scary Marxism.

Chinese Savings Helped Inflate American Bubble (New York Times)
In the past decade, China has invested upward of $1 trillion, mostly earnings from manufacturing exports, into American government bonds and government-backed mortgage debt. That has lowered interest rates and helped fuel a historic consumption binge and housing bubble in the United States. China, some economists say, lulled American consumers, and their leaders, into complacency about their spendthrift ways.
Because it can’t possibly be OUR fault.

Why does your health insurance cost so much? (by DCblogger at Corrente)
Data from the Institute for Health and Socio-Economic Policy show that:
1. The top seven U.S. health insurers earned a combined $10 billion dollars – nearly triple their profits of 5 years earlier (Wall Street Journal, August 2006).
2. In 2004 top executives of the 11 largest health insurers made a combined $85 million per year in one year (Weiss Reports).
3. The 20 largest HMOs in the U.S. made $10.8 billion in profits in the fiscal year 2005. 12 top HMO executives pocketed $222.6 million in direct compensation in the fiscal year 2005.

Tennessee coal ash disaster three times larger than originally estimated. (Think Progress)
On Monday, toxic coal sludge burst through a retention wall in eastern Tennessee, causing massive property and environmental damage. Federal studies have shown that coal ash contains “significant quantities of heavy metals like arsenic, lead and selenium, which can cause cancer and neurological problems.” The incident — already being called the “largest environmental disaster of its kind in the United States” — may now be even worse than originally anticipated. Tennessee Valley Authority officials “initially said that about 1.7 million cubic yards of wet coal ash had spilled” in the disaster. Yesterday, however, they “released the results of an aerial survey that showed the actual amount was 5.4 million cubic yards, or enough to flood more than 3,000 acres one foot deep.”

The Perfect Test That the Chicago Tribune Failed (by Henryk A. Kowalczyk at the Huffington Post)
It has been barely one year since the new owners took over the Tribune, so it would be unrealistic to expect that they finalized the implementation of whatever concepts they have. And, obviously, the current recession has put an extra burden on the turn-around venture. On the other hand, how much time should they really need to convert the Chicago Tribune into a profitable media company? Two years? Maybe three. Excuses aside, by the end of the first year the concept should show signs of working. “The perfect storm” could be seen as a perfect test, proof that Sam Zell’s vision for the Tribune is working. But it isn’t working…

During the first year, Sam Zell has run the Chicago Tribune with the same — if not greater — disrespect for readers as his predecessors did. One year ago, Mr. Zell was full of lofty talk about creative ventures and cross-media initiatives. All of this boiled down to skimming the milk and repackaging it. Sam Zell said it best himself: “I’ve reformatted all eight newspapers–they’re much louder; they’ve got more pictures; they have more color; they have easier navigation.” As if people buy products for packaging rather than content, especially when cash is in short supply.
Packaging, rather than content, is exactly how America bought Barack Obama.  Why couldn’t it work for newspapers?