Check Out the New 2010 Budget Chart Book!
The recently enacted health care law appears to likely add to the federal budget's unustainable course, with red ink as far as the eye can see. With that kind of fiscal path, it's an especially important time for Americans to understand spending, taxes and debt.
The Heritage Foundation's Budget Chart Book is a user-friendly way to learn about the federal budget in pictures. As Federal Spending Chart 1 shows, spending has been on the rise — even before the recession, stimulus bill and Obamacare — and will continue to climb steeply under President Obama.
The Scoop
Washington is planning to pay for this and more spending with tax hikes, but as Federal Revenue Charts 1 and 9 reveal, taxes are already a hefty burden and will reach unprecedented levels in the future.
Yet spending continues to grow far faster than revenues, creating record deficits. President Obama's annual deficits will add more to the federal debt than every other president before him combined, causing the debt to skyrocket as Debt and Deficits Chart 3 illustrates. The main reason America finds itself on a precipice of disastrous deficits is from spending on the three major entitlements — Social Security, Medicare, and Medicaid.
As Entitlements Chart 2 shows, these programs will double in size in a few decades. But Chart 10 explains spending cuts alone can't pay for entitlements, and the level of taxes, shown in Chart 8, required to pay for the programs would devastate the economy.
Tough policy choices and strong entitlement reforms are necessary to get the budget back on track. The Budget Chart Book will help you appreciate the size and scope of the decisions policymakers must enact to protect America's fiscal future.
Visit today to view the federal budget in pictures, download copies, view interactive charts, and share charts on your blog or social networks.
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The White House has launched a taxpayer-funded Web site to "reality check" credible criticisms and arguments. Problem is the Obama administration's videos "debunking" each "myth" are low on facts. Click here to see our response.
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Thursday, April 29, 2010
Fwd: Check Out the New 2010 Budget Chart Book!
Fwd: Justice Department: Border Patrol Agents Assaulted Daily, Kidnappings Every 35 Hours in Phoenix, 1 in 5 Teens using Drugs Supplied by Mexican Traffickers
Today's Headlines Thursday, April 29, 2010
Justice Department: Border Patrol Agents Assaulted Daily, Kidnappings Every 35 Hours in Phoenix, 1 in 5 Teens using Drugs Supplied by Mexican Traffickers
(CNSNews.com) - Three Border Patrol agents are assaulted on the average day at or near the U.S. border. Someone is kidnapped every 35 hours in Phoenix, Ariz., often by agents of alien smuggling organizations. And one-in-five American teenagers last year used some type of illegal drug, many of which were imported across the unsecured U.S.-Mexico border. These facts are reported in the recently released National Drug Threat Assessment for 2010, published by the National Drug Intelligence Center, a division of the U.S. Justice Department.
Napolitano: U.S.- Mexico Border 'As Secure Now As It Has Ever Been'
(CNSNews.com) - Homeland Security Secretary Janet Napolitano, the former governor of Arizona, told a Senate panel Wednesday that she knows the U.S.-Mexico border "as well as anyone," and "I will tell you it is as secure now as it has ever been."
Some Democrats See Drugs and Border Security As 'Distraction' to Comprehensive Immigration Reform
Washington (CNSNews.com) – Some congressional Democrats say concern about drug traffickers crossing the U.S.-Mexico border is distracting attention from the main issue of comprehensive immigration reform. "Sealing the border is not the entire issue," Rep. Mike Honda (D-Calif.) told CNSNews.com. Other Democrats declined to discuss drugs or border security. "Got to go, sorry," one Democrat told CNSNews.com. Another Democrat told a CNSNews.com reporter who asked about drugs and border security it was a "punkish" question.
House Committee Questions Legality of Drone Strikes against Terrorists
(CNSNews.com) – The House National Security and Foreign Affairs subcommittee held a hearing on Wednesday to question whether using drones (unmanned military aircraft) to kill terrorists violates international law. The panel, comprised of four international law experts, was largely in agreement that the use of drones by both CIA and military personnel to kill terrorists is legal.
Military is Muzzling Chaplains and Others Who Support 'Don't Ask, Don't Tell' Policy, Former Chaplains Say
(CNSNews.com) – Arthur Schultz, a former Army chaplain who now is legal counsel to the National Conference of Evangelical Chaplain Endorsers, told reporters that servicemen overseas have been told not to speak in support of "Don't Ask, Don't Tell."
White House Says President 'May Not' Break Tax Pledge in Effort to Reduce Deficit
(CNSNews.com) – Everything must be on the table to reduce the massive federal deficit, President Barack Obama on said Tuesday. However, Obama did not address his campaign pledge to avoid raising taxes on households earning less than $250,000, and White House Press Secretary Robert Gibbs said the president "may not" break that pledge.
Iran Hopes to Shift Focus to Israel at U.N. Nuclear Conference
(CNSNews.com) – As President Mahmoud Ahmadinejad awaits a visa to attend next week's nuclear Non-Proliferation Treaty review conference in New York, Iran's fellow Non-Aligned Movement members are finalizing plans to use the event to focus on Israel, not on Iran. Egypt is leading the drive to force Israel to come clean and dismantle a nuclear weapons arsenal whose existence it neither confirms nor denies.
CNSNEWS.COM VIDEO
Harrison Ford to Green Critics: 'I'll Walk Everywhere When They Walk Everywhere'
(CNSNews.com) - Actor, environmental activist and pilot Harrison Ford, who owns seven airplanes, told his environmental critics that he will "start walking everywhere when they start walking everywhere." Ford spoke on Capitol Hill Tuesday at an event sponsored by the Aircraft Owners and Pilots Association.
OTHER CNSNEWS.COM HEADLINES
Obama Says Congress May Not Have 'Appetite' for Immigration After Tough Year
Democrats, Eyeing Midterm Elections, Want Border Security Before Legalization
Millions of Seniors Are Not Choosing Quality Health Plans
Republicans Relent on Bringing Financial Regulation Bill to Senate Floor
Gunmen Attack Human Rights Caravan in Remote Southern Mexico, Killing Foreign Activists
Lawsuit Seeks to Bar Enforcement of Arizona's New Immigration Law
Obama Administration Approves Wind-Farm Project Off Nantucket; Lawsuits Coming
BP Would Welcome U.S. Military Help in Containing Gulf Oil Leak
Lawmakers Call for Restrictions on Political Ads
Navy to Allow Women to Serve on Submarines
Egypt Rejects Claims That It Gassed Gaza Smuggling Tunnels
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NEWSPAPER ROUNDUP:
Mass. bill to block public benefits for illegal immigrants fails by narrow margin
White House seeks to soften Iran sanctions; Wants exemption for Chinese, Russian firms
Insurance-plan coverage for infertility urged
Classes of 35 may violate fire code, Chicago teachers union says
Cape Wind OK'd in a first for the nation
Cape Wind decision could mean more renewable-energy projects along Atlantic coast
Six out of 10 Central American women raped while passing through Mexico to U.S.
N.H. Senate keeps 200-year-old adultery law on the books
Bill Clinton on immigration: New talent, tax money needed for aging America
Women with suntans will be arrested, Iran police chief warns
Boy Scouts offer new merit badge -- for video gaming
Women seeking abortions could face forced ultrasounds in Florida
Catholic bishop bans RI hospitals from pro-health reform group
Republican Gov. McDonnell lets Va. troopers refer to Jesus in public prayer
Federal court ruling gives boost to victims of Chinese drywall
COMMENTARY
Salt Tyrants
By Walter E. Williams
What the anti-tobacco zealots established is that government had the right to forcibly control our lives if it was done in the name of protecting our health. America's tyrants have now turned their attention to salt.
DOJ Intel Report Downplays Terror Threat at Border
By Terence P. Jeffrey
A recent report by the National Drug Intelligence Center (NDIC), a division of the U.S. Justice Department, downplays the threat of terrorists crossing the U.S.-Mexico border even as it paints a picture of a border wide open to the smuggling activities of Mexican drug trafficking organizations. The NDIC's National Drug Threat Assessment for 2010, released on March 25, twice appears to assert that there have been no documented cases of terrorists illegally entering the United States across the Mexican border, an assertion contradicted by a 2009 Government Accountability Office (GAO) report, a 2007 statement to the El Paso Times by then-Director of National Intelligence Mike McConnell and 2005 testimony to the Senate Select Committee on Intelligence by FBI Director Robert Mueller.
Fwd: MRC Alert: Couric Touts San Francisco as Proof of 'Backlash Against Arizona's New Immigration Law'
A daily compilation edited by Brent H. Baker, CyberAlert items are drawn from daily BiasAlert posts and distributed by the Media Research Center's News Analysis Division, the leader since 1987 in documenting, exposing and neutralizing liberal media bias.
Tracking Liberal Media Bias Since 1996
Thursday April 29, 2010 @ 09:44 AM EDT1. Couric Touts San Francisco as Proof of 'Backlash Against Arizona's New Immigration Law'
A night after ABC and NBC championed the supposed "growing national backlash" against Arizona's new anti-illegal alien law, the CBS Evening News caught up as anchor Katie Couric teased her Wednesday newscast by trumpeting a move by a far-left enclave: "The backlash against Arizona's new immigration law. San Francisco bans official travel to that state as pressure grows for a national immigration reform law." After Couric noted "a new travel warning today. This time it's Mexico warning its citizens to be careful if they visit Arizona," reporter Nancy Cordes saw controversy "spreading to all corners of the country" as evidenced by how "San Francisco's Mayor just banned official travel to Arizona. City councils in Washington, D.C., and Los Angeles are considering similar measures."2. MSNBC's Tamron Hall Frets Over Arizona Becoming 'the Most Conservative State' in the U.S.
MSNBC's Tamron Hall on Wednesday worried that Arizona may be turning into the "most conservative state in the nation." A graphic on the liberal cable network chided, "Arizona Too Conservative?"3. NYT Editor Sam Tanenhaus: 'Extremist,' Know Nothing Tea Partiers Like Birchers
In a friendly chat with left-wing MSNBC host Rachel Maddow, New York Times Book Review/Week in Review editor Sam Tanenhaus compares the Tea Party movement to the John Birch Society, proclaims "there are no serious ideas left on the right," and says today's conservatives are led by extremists: "We see who the great idea people are, the ones who pretend to be - Glenn Beck and Rush Limbaugh and all the rest. This is about as good as it's getting now..."4. CBS Touts Democratic Strategy Labeling GOP 'Party of Wall Street'
On Wednesday's CBS Early Show, co-host Harry Smith lamented Republican opposition to the Democrats' financial reform legislation: "The Senate is expected to vote for a third time on financial reform. Republicans blocked the previous two attempts. President Obama says he can't understand why, and plans to make his case once again later today." n the report that followed, White House correspondent Chip Reid described the Democratic strategy against Republicans: "Democrats are doing everything in their power to portray Republicans as the party of Wall Street."5. Lauer and Dem Levin Gang Up on GOP Senator on Today
On Wednesday's Today show, NBC's Matt Lauer invited on Democratic Senator Carl Levin and Republican Senator Susan Collins to have what was, ostensibly, a bipartisan discussion about the Goldman Sachs hearings, but the Today co-anchor tilted the balance of that discussion when he accused the Republicans of trying to have it both ways by claiming they wanted to fix the problems on Wall Street, but kept blocking debate. Lauer even asked Levin, with Collins standing right beside him, "I don't mean this as a personal comment but Senator Levin, it sounds a bit schizophrenic to me. Does it sound that way to you?"6. Today Warns About Ads Geared To Kids...Then Breaks for Ad Geared To Kids
NBC's Matt Lauer, on Wednesday's Today show, previewed a segment about an FTC campaign to urge teachers to warn their tween-aged students about the evils of marketing, (something apparently parents are ill-equipped to do themselves) as he alerted viewers: "Plus the barrage of ads our kids see every day and what's being done to protect them from the urge to buy, buy, buy!" Amusingly that teaser, over a video clip of an Apple Jacks ad featuring animated characters, came right before the Today show broke for an actual cereal commercial featuring -- you guessed it -- animated characters.
Fwd: Morning Bell: The Ahmadinejad Victory Tour
04/29/2010
Yesterday, State Department spokesman P.J. Crowley confirmed Iranian President Mahmoud Ahmadinejad had submitted an application for a visa to attend the United Nations nuclear Non-Proliferation Treaty conference in New York next month. Since Crowley also confirmed that Ahmadinejad is likely to be awarded the visa, the Iranian President can now look forward to witnessing first hand the failure of President Barack Obama's Iran policy.
At first the White House believed that President Barack Obama's sheer power of personality and persuasion would be enough to convince the Iranian regime to give up their nuclear program. So the President gave a conciliatory speech in Cairo, sent a direct message to Iran's Supreme Leader Ayatollah Ali Khamenei, and opened up direct talks with the Iranian regime. The results have been crystal clear: the Iranian regime has only accelerated its nuclear program, accelerated its ballistic missile program, and further crushed internal dissent, all while the Obama administration remained silent as the Green Revolution was brutally crushed.
Now the Obama administration is seeking "crippling" sanctions on Iran through the U.N. Security Council. This is another Obama fantasy that plays right into Iran's "cheat, retreat, and delay" nuclear strategy. Whatever goodwill the Obama administration hoped to get from Russia by caving into their New START demands has not paid off. With help from Turkey, China and now Egypt, Iran's rope-a-dope U.N. diplomacy will render any U.N. sanctions regime completely toothless.
Wednesday, April 28, 2010
Fwd: MyHeritage.org: More Bailouts?
FEATURED VIDEO
Billie Tucker, an organizer of The First Coast Tea Party, speaks at The Heritage Foundation's Resource Bank in Miami, FL. More videos »April 28, 2010 | By Amanda Reinecker
More Bailouts?
Leading up to the vote on Senator Chris Dodd's 1,408 page financial reform bill, lobbyists from big labor and big finance joined forces to make sure the legislation was a Wall Street Bailout Bill. And that's exactly what it was.
This is perhaps why the bill failed its first test in the Senate on Monday in a vote of 57-41. And then again on Tuesday. But the solid dissent could also be because the Congressional Budget Office found that the costs of this permanent bailout fund created in the bill would fall on the American taxpayers.
In fact, there a quite a few reasons why lawmakers ought to have been skeptical of the plan. In a new Heritage Foundation publication, senior research fellow James Gattuso details 14 "fatal flaws" in Senator Dodd's regulation plan. Each of these flaws would pave the way for a bigger government with broader powers and a bleaker economic future.
Among the 14 fatal flaws Gattuso points out are:
- Bigger Government and More Bailouts. A new federal council, the Financial Stability Oversight Council, to determine which firms are "too big to fail." Qualifying firms will only be encouraged to take on undue risk because they'll know with certainty that the government will bail them out.
- Vast New Powers for the Secretary of the Treasury. The Treasury Secretary will have the power to order seizure, without meaningful judicial review, of any firm he deems "in danger of default." This seizure must be upheld if the government produces any evidence to support it.
- Permanent Bailout Authority. The Federal Deposit Insurance Corporation will have the ability to set aside funds for the liquidation of covered financial institutions. This is similar to the AIG bailout that cost taxpayers tens of billions of dollars. Creditors, not shareholders, would be eligible for a cash bailout.
- $50 Billion Bailout Fund. This "Orderly Resolution Fund" is a clear indication of future bailouts. It is funded by taxes on financial firms, a cost that, as the CBO reports, will ultimately fall on the firm's customers, employees and investors.
- Bailouts Not Limited to Failing Firms. Bailout authority can also apply to firms the FDIC determines are "solvent depository institutions." And the additional costs will be funded by the Treasury's newly established "line of credit" to the FDIC, which will, of course, be footed by taxpayers.
- Imposes One-Size-Fits-All Reform in Derivative Markets. The Senate bill would require virtually all derivative contracts, which help markets manage risk, to be settled through a clearinghouse rather than directly between the parties. This would make financial derivatives more costly, more difficult to customize, and, consequently, less widely used—which would increase overall risk in the economy.
While lawmakers who support the bill consider various compromises, they should consider the points above and how they do nothing to reduce the systemic risk offered by "too big to fail" firms. These firms will continue to take risks because the federal government has promised to clean up the mess--on the taxpayers' dime.
Congress should instead establish accountability by creating a modernized bankruptcy procedure for these large institutions. Heritage senior fellow David John explains that "this would ensure that regulators cannot revert to politically motivated bailouts and other forms of government intervention."
The consequences of allowing the government to direct the economy are always doubtful and disastrous. Warding off a future economic crisis should not be in the hands of the government. Instead, the government's approach should be much more hands-off.
> Other Heritage Work of Note
- "America, we've been conned," writes Heritage fellow and former Congressman Ernest Istook. Now that Obamacare is law, Americans are beginning to see it for what it is: a scam. Istook calls this a classic "bait-and-switch." One example of this sales tactic is a recent finding from government actuaries that "more Americans will be covered, but costs are also going up," as the Associated Press summarized it.
- Innocent people are being charged with federal crimes they never knew were crimes, Heritage fellow and former U.S. Attorney General Edwin Meese argues. He profiles a new Heritage publication, "One Nation Under Arrest," which cites a number of these cases. "We are making and enforcing far too many criminal laws that create traps for the innocent but unwary - and threaten to turn otherwise respectable, law-abiding citizens into criminals," he writes.
- Earlier this week, Arizona Governor Jan Brewer signed into law a bill that would make it a state crime to be in the U.S. illegally and would allow state law enforcement to require individuals to produce proof of their citizenship. Though critics fear the bill condones racial profiling, Heritage's Jena Baker McNeil defends the bill as a "major stepping stone" toward controlling immigration at the lower levels of government.
More importantly, the bill is constitutional. "The Tenth Amendment," she explains, "preserves the traditional police powers of the states to control their own jurisdictions."> In Other News
- Conservatives may be poised for an electoral comeback in 2010. Even staunch liberals, like Rep. David Obey, may encounter something new this election cycle: serious competition. Obey, author of the trillion-dollar "stimulus" legislation, has won 21 consecutive races.
- Worried that the high-risk insurance pools created by Obamacare are woefully underfunded, many states are balking at participating in one of the first policies to be implemented under the left's new law.
- Texas Gov. Rick Perry reports he shot and killed a coyote during a February jog.
- Politico reports that President Obama and the DNC are "rallying the troops" in preparation for the 2010 elections. The President appears in a video calling "young people, African-Americans, Latinos, and women who powered our victory in 2008 [to] stand together once again."
Amanda Reinecker is a writer for MyHeritage.org—a website for members and supporters of The Heritage Foundation. Nathaniel Ward, the Editor of MyHeritage.org, contributed to this report.
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Fwd: Government Report Says Global Warming May Cause Cancer, Mental Illness
Today's Headlines Wednesday, April 28, 2010
Government Report Says Global Warming May Cause Cancer, Mental Illness
(CNSNews.com) – A new government report says global warming could lead to an increase in both cancer and mental illness worldwide, and it calls for more federally funded research to determine how that might happen. The report was published by an inter-agency group comprised of scientists from the CDC, NIH, State Department, National Oceanic and Atmospheric Administration, Agriculture Department, EPA, and the Department of Health and Human Services.
FEMA Saving Millions of Dollars by Turning Off Unused Cell Phones, Internet Lines
(CNSNews.com) – FEMA Administrator Craig Fugate told a House subcommittee on Tuesday that his agency has ended "bad business" practices by turning off cell phones and shutting down Internet lines that have gone unused for years.
Hoyer Says Arizona Immigration Enforcement Law 'Inconsistent' with Civil Liberties
(CNSNews.com) - House Majority Leader Steny Hoyer (D-Md.) said that Arizona's new immigration enforcement law is "inconsistent" with American legal traditions and civil liberties. Hoyer said that such active enforcement policies should not be included in upcoming federal immigration reform.
Chinese Naval Maneuvers Unsettle Its Neighbors
(CNSNews.com) – A series of Chinese naval movements beyond its coastal waters this month has set off alarm bells in the region, prompting the Taiwanese military on Tuesday to hold a drill testing its response to an imaginary Chinese attack against its air bases.
Japan also has watched warily as Chinese war ships passed through international waters in the southern Okinawa island chain.
Ukraine's Shift on Black Sea Fleet Is A Boost for Moscow
(CNSNews.com) – Russian lawmakers on Tuesday quickly approved an agreement allowing the Black Sea Fleet to use a port in Ukraine for another 25 years, sealing a deal that caused an uproar in Ukraine while marking another strategic victory for the Kremlin in the region it once dominated.
CNSNEWS.COM VIDEO
Actress Janine Turner: New Health Care Law Not 'A Vision' of Our Founding Fathers
Washington (CNSNews.com) – Actress Janine Turner, who runs a group designed to inspire young people to study the U.S. Constitution, said that the new health care law and how it was crafted were "not based on what a true Republic represents or what our Founding Fathers would have liked." She also predicted there will be "some payback" in the November elections because of the health care law.
Janine Turner: Being a Conservative in Hollywood Can Jeopardize Career
(CNSNews.com) - Actress Janine Turner said conservatives in the entertainment industry are "afraid to step out," because doing so can affect their careers. At a press conference in Washington, D.C., to announce her new organization, Constituting America, CNSNews.com asked Turner if she would "elaborate a little bit more on the environment in Hollywood for conservative actors and actresses such as yourself."
Sigourney Weaver: 'The Oceans Are Not Prospering'
(CNSNews.com) – Because the oceans are "not prospering," people "cannot prosper," said actress Sigourney Weaver, narrator of the new documentary "Acid Test," which examines ocean acidification.
OTHER CNSNEWS.COM HEADLINES
Supreme Court Says Mojave Cross Can Stay Where It Is
Republicans Hope to Retake Some New England House Seats
Republicans Block Financial Regulations Because of Concerns About 'Consumer Protections'
China Lifts Travel Ban Against People With HIV
Obama Blasts Republicans on His Latest Campaign Swing
Obama Pleads for Bipartisan Immigration Reform
Texas Lawmaker to Introduce Immigration Bill Like Arizona's
U.S. Soldier Killed in Northern Iraq
Rights Group Says Torture Is Routine in Secret Iraqi Prison
PM Gordon Brown Calls Voter 'Bigoted' in UK Election Flub
Nearly 2 Feet of Snow Falls in NY, New England
Terrorist Attacks Spike in Pakistan, Afghanistan
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Make a contribution to CNSNews.com today. It's fast, simple and secure.
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NEWSPAPER ROUNDUP:
N.J. court to rule whether hospitals may refuse life support in some cases
Mentally disabled get job training on Capitol Hill
Politico: 'Why reporters are down on Obama'
Jeb Bush speaks out against Ariz. immigration law
Need for dental care overwhelms free clinic in Los Angeles
Groups raise alarm over Social Security tampering as debt panel starts work
Justice Department's anti-gang units not meshing; Streets grow more violent
Judge Says Univ. of Wyo. must allow Ayers' speech
Ford posts $2.1B 1Q profit on strong sales
Mass. clinic offers free health care to Latino immigrants
COMMENTARY
DOJ Intel Report Downplays Terror Threat at Border
By Terence P. Jeffrey
A recent report by the National Drug Intelligence Center (NDIC), a division of the U.S. Justice Department, downplays the threat of terrorists crossing the U.S.-Mexico border even as it paints a picture of a border wide open to the smuggling activities of Mexican drug trafficking organizations. The NDIC's National Drug Threat Assessment for 2010, released on March 25, twice appears to assert that there have been no documented cases of terrorists illegally entering the United States across the Mexican border, an assertion contradicted by a 2009 Government Accountability Office (GAO) report, a 2007 statement to the El Paso Times by then-Director of National Intelligence Mike McConnell and 2005 testimony to the Senate Select Committee on Intelligence by FBI Director Robert Mueller.
An Open Letter to American Jews
By Ben Shapiro
I write to you as a charter member of the tribe. I'm not only Jewish, I'm religious, and I have one request of you: please pull your heads out of your posteriors. Your continued support for Democrats and an administration that is openly anti-Semitic is a disgrace. Your embrace of a party that seeks to hamstring Israel in the name of a wholly fictitious Middle East peace process is contemptible. Your loyalty to a president who consistently sides with Palestinian and Iranian mass murder-supporters is disgusting.
How Mexico Treats Illegal Aliens
By Michelle Malkin
Mexican President Felipe Calderon has accused Arizona of opening the door "to intolerance, hate, discrimination and abuse in law enforcement." But Arizona has nothing on Mexico when it comes to cracking down on illegal aliens. The Mexican government will bar foreigners if they upset "the equilibrium of the national demographics." How's that for racial and ethnic profiling? And if outsiders do not enhance the country's "economic or national interests" or are "not found to be physically or mentally healthy," they are not welcome.
Let's Make a Deal, Senor Presidente Calderon
By Rich Galen
Felipe Calderon is whining about the way we are treating immigrants in the U.S. because they may be asked to produce documents proving they are here legally, while immigrants in his very own country are being kidnapped, robbed, raped, and murdered by the tens of thousands, according to reports.
Fwd: Enterprise Update: In the Dodd Bill, “Bank” Could Mean Anyone
In the Dodd Bill, "Bank" Could Mean Anyone
By David John
The Dodd financial reform bill is beginning to scare executives. However, it is not necessarily scaring bankers or Wall Street fat cats. It is scaring motor cycle manufacturers, college presidents, retailers, car dealers, and even coffee shop executives. All of these people and more are waking up to the Dodd bill's threat to their businesses.
If you read the Dodd financial reform bill carefully, the words "bank" or "financial" could refer to many more people than just bankers. Those words apply to any provider of "financial products" even if the major business of the company is something completely different. On page 131, the summary of the bill's section creating a new Consumer Financial Protection Bureau says that the section "makes clear that financial products or services defined in the Act that are offered or provided for use by consumers primarily for personal, family, or household purposes are considered to be "consumer financial products or services" for purposes of this Act. In addition, other key financial activities that are central to consumers are also included in this definition.
>> Click here to read the full report
For more information, visit Heritage's Enterprise and Free Markets webpage, which features research, commentary, blog posts, charts and additional policy resources.
The regulatory burden on Americans continued to surge during 2009, with record increases in costs thanks to both the Bush and Obama Administrations. Given ongoing regulatory initiatives at several agencies, it is very likely that this surge will continue.
Click here for more information
The Heritage Foundation | 214 Massachusetts Ave NE, Washington, DC 20002 | 202.546.4400
Fwd: MRC Alert: ABC and NBC Champion ‘Growing National Backlash' Against 'Laughing Stock' Arizona
A daily compilation edited by Brent H. Baker, CyberAlert items are drawn from daily BiasAlert posts and distributed by the Media Research Center's News Analysis Division, the leader since 1987 in documenting, exposing and neutralizing liberal media bias.
Tracking Liberal Media Bias Since 1996
Wednesday April 28, 2010 @ 09:56 AM EDT1. ABC and NBC Champion 'Growing National Backlash' Against 'Laughing Stock' Arizona
Extending the kind of respect they never provided the Tea Party activists, ABC and NBC on Tuesday night promoted what NBC anchor Brian Williams embraced as "the growing national backlash against the state of Arizona over its tough new immigration law that says police can stop people just on the suspicion they might be there illegally." ABC's Barbara Pinto touted how "the call for an economic boycott here has caught fire on the Internet" while NBC's Andrea Mitchell trumpeted how "anger over the law has gone viral," as both pointed to how the American Immigration Lawyers Association had canceled a conference – of a mere 400 attendees - scheduled for the state. NBC's Mitchell played clips from two left-wing comedians, as she asserted: "It's now gone beyond protest to threats of a boycott, as Arizona becomes a laughing stock to some." Viewers then heard a joke from Saturday Night Live about "fascism" followed by The Daily Show's Jon Stewart: "It's not unprecedented, having to carry around your papers. It's the same thing free black people had to do in 1863." After showcasing a Facebook page ("Arizona, the Grand Canyon State, welcomes you unless you're a Mexican or look like one"), Mitchell cited "a slap in the face" from Mexico which, ironically, warned its citizens about traveling to Arizona.
2. NYT Former Reporter Greenhouse Fires on Arizona's 'Police State,' Makes Nazi Comparison
Former New York Times Supreme Court reporter Linda Greenhouse retains her fairness and balance: "I'm glad I've already seen the Grand Canyon. Because I'm not going back to Arizona as long as it remains a police state, which is what the appalling anti-immigrant bill that Gov. Jan Brewer signed into law last week has turned it into."
3. CBS's Smith: Hispanics See Arizona Law as 'Purely Discriminatory'
Near the end of an interview with Arizona Senator John McCain on Tuesday's CBS Early Show, co-host Harry Smith turned to the subject of illegal immigration and the new Arizona law to combat it: "a very tough immigration reform bill which basically makes it illegal for you to be in the state without some sort of documentation. Is this law the answer to the immigration crisis?" Smith followed up by wondering: "And for the millions of Hispanic Americans who live in Arizona, what do you say to them who feel like this bill is purely discriminatory?"
4. CBS's Smith to McCain: 'How Are You Going to Dismantle' Financial Institutions?
Hitting from the left in an interview with Republican Senator John McCain on Tuesday's CBS Early Show, co-host Harry Smith worried about the ability of financial reform legislation to expand government control over Wall Street: "How are you going to dis – how does any of this dismantle these giant financial institutions?" At the top of the show, co-host Maggie Rodriguez put the GOP on the defensive: "Democrats continue to push for Wall Street reform. But are Republicans on board?"
ABC and NBC Champion 'Growing National Backlash' Against 'Laughing Stock' Arizona
Extending the kind of respect they never provided the Tea Party activists, ABC and NBC on Tuesday night promoted what NBC anchor Brian Williams embraced as "the growing national backlash against the state of Arizona over its tough new immigration law that says police can stop people just on the suspicion they might be there illegally."
ABC's Barbara Pinto touted how "the call for an economic boycott here has caught fire on the Internet" while NBC's Andrea Mitchell trumpeted how "anger over the law has gone viral," as both pointed to how the American Immigration Lawyers Association had canceled a conference – of a mere 400 attendees -- scheduled for the state.
NBC's Mitchell played clips from two left-wing comedians, as she asserted: "It's now gone beyond protest to threats of a boycott, as Arizona becomes a laughing stock to some." Viewers then heard a joke from Saturday Night Live about "fascism" followed by The Daily Show's Jon Stewart: "It's not unprecedented, having to carry around your papers. It's the same thing free black people had to do in 1863." After showcasing a Facebook page ("Arizona, the Grand Canyon State, welcomes you unless you're a Mexican or look like one"), Mitchell cited "a slap in the face" from Mexico which, ironically, warned its citizens about traveling to Arizona.
Mitchell gave a soundbite to Senator John McCain, but countered him with a clip from Homeland Security Secretary Janet Napolitano, before she added: "Today the Attorney General called the law 'unfortunate.'" On ABC's World News, Pinto reported "the anger over this law spread to cities like Chicago, and L.A." as "the call for an economic boycott here has caught fire on the Internet and even from an Arizona State Representative warning conventioneers to stay away."
Pinto forwarded a comparison to Arizona's failure to enact a MLK holiday and highlighted Meghan McCain's denunciation:
Only at the very end of her piece did Pinto bother to mention: "Still, most Arizona residents – 70 percent – support this new law."This has happened before. Arizona's decision two decades ago not to honor the Martin Luther King, Jr., holiday cost the state 170 conventions and a Superbowl – a grand total of $360 million – and Arizona was forced to reverse its stance. The new law has even split families. Senator John McCain has taken a hardline stance in favor of the law, but his daughter Meghan blogged her disagreement, saying, "I believe it gives the state police a license to discriminate."
The MRC's Brad Wilmouth corrected the closed-captioning against the video to provide these transcripts of the Tuesday, April 27 stories:
ABC's World News:
DIANE SAWYER: And we move on now to the raging argument about illegal immigration in this country and the move afoot tonight to boycott the state of Arizona because of the new law on stopping anyone suspected of being an illegal immigrant. Grand Canyon tours, business conventions, even the Arizona Diamondbacks baseball team are being targeted. And Barbara Pinto is in Phoenix for reaction.NBC Nightly News:BARBARA PINTO: For the first time since he opened his restaurant nine years ago, Dylan Bethke is worried.
DYLAN BETHKE: You'd take about a quarter of our business away if we lost some big conventions.
PINTO: The restaurant operates in the shadow of the Phoenix Convention Center, and in the bull's eye of the growing fury over Arizona's tough new immigration law. Today, the anger over this law spread to cities like Chicago, and L.A. Governor Jan Brewer signed the bill into law on Friday.
GOVERNOR JAN BREWER (R-AZ): I do not know what an illegal immigrant looks like.
PINTO: And police will have to try to figure that out. The new law forces them to stop and arrest anyone who appears to be illegal. The call for an economic boycott here has caught fire on the Internet and even from an Arizona State Representative warning conventioners to stay away.
STATE REP. RAUL GRIJALVA (D-AZ): The governor basically codified into state law racial profiling, violation of civil rights.
PINTO: The first to cancel their plans, 400 members of the American Immigration Lawyers Association, who will lose their $92,000 deposit.
CRYSTAL WILLIAMS, AMERICAN IMMIGRATION LAWYERS ASSOCIATION: We just cannot in good conscience be in a state and be supporting the economy of a state that will do something like this to its people.
PINTO: This has happened before. Arizona's decision two decades ago not to honor the Martin Luther King, Jr., holiday cost the state 170 conventions and a Superbowl – a grand total of $360 million – and Arizona was forced to reverse its stance. The new law has even split families. Senator John McCain has taken a hardline stance in favor of the law, but his daughter Meghan blogged her disagreement, saying, "I believe it gives the state police a license to discriminate." Still, most Arizona residents – 70 percent – support this new law. Their fears about crime seem to outweigh any worries about the economy. Barbara Pinto, ABC News, Phoenix.
SAWYER: And we'd like to know what you think about the boycott, so weigh in on the debate at our Web site, ABCNews.com.
BRIAN WILLIAMS: Now to the growing national backlash against the state of Arizona over its tough new immigration law that says police can stop people just on the suspicion they might be there illegally. NBC's Andrea Mitchell reports on the movement to punish Arizona now by hurting the state's economy.— Brent Baker is Vice President for Research and Publications at the Media Research Center. Click here to follow him on Twitter.
ANDREA MITCHELL: It's now gone beyond protest to threats of a boycott, as Arizona becomes a laughing stock to some.
SETH MYERS ON SATURDAY NIGHT LIVE, CLIP #1: Can we all agree that there's nothing more Nazi than saying, "Show me your papers"? There's never been a World War II movie that didn't include the line, "Show me your papers." It's their catch phrase.
MYERS CLIP #2: So heads up, Arizona. That's fascism. I know, I know, it's a dry fascism, but it's still fascism.
JON STEWART, THE DAILY SHOW: That's tough. It's not unprecedented, having to carry around your papers. It's the same thing free black people had to do in 1863.
MITCHELL: Anger over the law has gone viral. On Facebook today, pages like this one: "Arizona, the Grand Canyon State, welcomes you unless you're a Mexican or look like one." Calls for an economic boycott. Already a conference of immigration lawyers at a swanky Scottsdale hotel canceled.
BEN BETHEL, PHOENIX HOTEL OWNER: I really feel that this is one of the biggest anti-business things that the state could have done.
MITCHELL: From across the border, a slap in the face. Mexico's government issued an official travel warning that their citizens "could be bothered and questioned without much cause at any time in Arizona." Mexico's President said the Arizona law could hurt relations with the U.S. Still, the law is wildly popular with many Arizonans, especially Republicans in tough races.
SENATOR JOHN MCCAIN (R-AZ): The people in southern Arizona have had their rights violated by the unending and constant flow of drug smugglers and human traffickers across their property.
MITCHELL: Homeland Security Secretary and former Arizona Governor Janet Napolitano:
JANET NAPOLITANO, HOMELAND SECURITY SECRETARY: It will detract from some of the efforts that are already under way to really focus on the most serious offenders, the most serious criminals, the ones that not only have crossed the border illegally, but are committing other crimes.
MITCHELL: Today the Attorney General called the law "unfortunate." And tonight, Justice Department lawyers are still deciding whether to challenge it in court. Andrea Mitchell, NBC News, Washington.
NYT Former Reporter Greenhouse Fires on Arizona's 'Police State,' Makes Nazi Comparison
Linda Greenhouse, the New York Times former Supreme Court reporter, now writes a twice-monthly column for nytimes.com. But the paper's editors must have found her latest rant on Arizona's tough new immigration law particularly powerful, because it made it into Tuesday's print edition: "Breathing While Undocumented."
Greenhouse, who caused controversy while still a Times reporter when she made her hard-left views on abortion and Guantanamo Bay public at a Harvard commencement address in the summer of 2006, really let it out on Tuesday, with visions of police states and a seemingly inevitable comparison to Nazism.
I'm glad I've already seen the Grand Canyon.
Because I'm not going back to Arizona as long as it remains a police state, which is what the appalling anti-immigrant bill that Gov. Jan Brewer signed into law last week has turned it into.
What would Arizona's revered libertarian icon, Barry Goldwater, say about a law that requires the police to demand proof of legal residency from any person with whom they have made "any lawful contact" and about whom they have "reasonable suspicion" that "the person is an alien who is unlawfully present in the United States?" Wasn't the system of internal passports one of the most distasteful features of life in the Soviet Union and apartheid-era South Africa?
Greenhouse summarized the recent history of "anti-immigrant spasms" and recommended the federal government get involved in Arizona:
Indeed, federal pre-emption would appear to be the most promising route for attacking the Arizona law. Supreme Court precedents make clear that immigration is a federal matter and that the Constitution does not authorize the states to conduct their own foreign policies.
My confidence about the law's fate in the court's hands is not boundless, however. In 1982, hours after the court decided the Texas case, a young assistant to Attorney General William French Smith analyzed the decision and complained in a memo: "This is a case in which our supposed litigation program to encourage judicial restraint did not get off the ground, and should have." That memo's author was John G. Roberts Jr.
After introducing the "police state" idea at the beginning, Greenhouse fires that weapon in the third act of her column, bringing up the Nazis:
So what to do in the meantime? Here's a modest proposal. Everyone remembers the wartime Danish king who drove through Copenhagen wearing a Star of David in support of his Jewish subjects. It's an apocryphal story, actually, but an inspiring one. Let the good people of Arizona -- and anyone passing through -- walk the streets of Tucson and Phoenix wearing buttons that say: I Could Be Illegal.You can follow Times Watch on Twitter.
CBS's Smith: Hispanics See Arizona Law as 'Purely Discriminatory'
Near the end of an interview with Arizona Senator John McCain on Tuesday's CBS Early Show, co-host Harry Smith turned to the subject of illegal immigration and the new Arizona law to combat it: "a very tough immigration reform bill which basically makes it illegal for you to be in the state without some sort of documentation. Is this law the answer to the immigration crisis?"
McCain noted the number of illegal immigrants entering Arizona and the level of drug trafficking taking place: "Across the Tucson sector of Arizona last year, there was 241,000 apprehensions of illegal immigrants....1.3 million pounds of marijuana intercepted on the Tucson border just last year." Smith followed up by wondering: "And for the millions of Hispanic Americans who live in Arizona, what do you say to them who feel like this bill is purely discriminatory?"
In a news brief on the topic at the top of the 8AM ET hour, fill-in news reader Betty Nguyen described how: "The Obama administration and activists are considering legal challenges to Arizona's new immigration enforcement law, which has reignited a national debate." A series of signs from an immigration protest in San Francisco appeared on screen: "Latinos Today, Who's Next? Shame on Arizona;" "Boycott Arizona;" "Brown Is Not A Crime."As footage of the protest rolled, Nguyen explained: "The law makes it a crime to be an illegal immigrant." On Monday, an MSNBC headline made the same odd statement.
On Monday's CBS Evening News, correspondent John Blackstone argued: "many feel the sting of racism in the new law."
The Saturday Early Show also covered the passage of the Arizona immigration law, as co-host Chris Wragge declared at the show's opening: "Border War. Arizona's governor signs the nation's toughest law against illegal immigration. Will the new legislation help secure the nation's borders or expand racial profiling?"
Moments later, White House correspondent Bill Plante reported: "The bill makes it a crime to be in Arizona illegally....Brewer said that she would not tolerate racial profiling, but that's what federal officials fear. President Obama called the Arizona law 'misguided' and urged lawmakers to get going on immigration reform. 'Failure to act,' he said, 'opens the door to irresponsibility.'" A headline on screen read: "Arizona Crackdown; New Law Makes Illegal Immigration A Crime" Apparently neither MSNBC nor CBS seem capable of seeing the irony in that declaration.
Following Plante's report, Wragge moderated a debate on the issue between Republican strategist Bay Buchanan and Democratic strategist Maria Cardona. Wragge wondered: "Does Arizona's new immigration law go too far?" He then asked Buchanan: "Do you find it in any way unconstitutional?"
Turning to Cardona, Wragge continued his negative tone: "Why is this bad for the people of Arizona, in your eyes?" That gave Cardona the opportunity to rant: "It is not only horrendous policy, it is even worse politics. This is an insidious law that will actually make, not just all undocumented immigrants, but all legal and U.S. citizen Latinos, many of which, whose families have been in Arizona even before Arizona was part of the United States. It makes them under suspicion."
Following up, Wragge did challenge Cardona to present an alternative solution to the immigration problem: "$3 billion a year to educate, medicate, and incarcerate illegals in the state of Arizona. You're not in favor of this law, so what could have been done differently?" Cardona called for a "comprehensive" federal approach and again attacked the Arizona law: "The only thing this law will do is to make it open season for any immigrant, anybody who does not look Anglo, and it will make actually racial profiling legal in Arizona. It's insidious and it's wrongheaded."
Here is a full transcript of Wragge's discussion with Buchanan and Cardona:
—Kyle Drennen is a news analyst at the Media Research Center. You can follow him on Twitter here.CHRIS WRAGGE: So, does Arizona's new immigration law go too far? Let's get two points of view this morning. Bay Buchanan is a Republican strategist, who supports the measure. Maria Cardona is a Democratic strategist, opposed to it. Both are in our Washington bureau this morning. Ladies, good morning to the both of you. BAY BUCHANAN: Good morning to you.
MARIA CARDONA: Good morning.
[ON-SCREEN HEADLINE: The Great Immigration Debate; Does Arizona's New Law Go Too Far?]
WRAGGE: Bay, I'm going to start with you. I know you fully support this bill, but do you-
BUCHANAN: Absolutely.
WRAGGE: -do you find it in any way unconstitutional?
BUCHANAN: Oh not – not whatsoever. You know what they're giving is the tools to the law enforcement officers of Arizona. The same tools that we now have given to the border agents. They have the ability to ask people about their legal status. And the key was what Russell Pearce, the Senator who's behind this bill, did. See he went to the police officers and the law enforcement officers, the prosecutors in Arizona and said, 'what can we do? What do you need to finally take care of this issue here in the state?' And they said, 'we need greater tools, we need these abilities,' and that's what they did, is they have now put it into law, given the law enforcement officers of Arizona the ability to secure the welfare and the safety of the people of Arizona.
WRAGGE: Lots of responsibility for local law enforcement in Arizona. Maria, why is this bad for the people of Arizona, in your eyes?
CARDONA: It is not only horrendous policy, it is even worse politics. This is an insidious law that will actually make, not just all undocumented immigrants, but all legal and U.S. citizen Latinos, many of which, whose families have been in Arizona even before Arizona was part of the United States. It makes them under suspicion. They become people of interest under this law. They could be speaking Spanish on a corner. Who knows what 'reasonable suspicion' means. The Governor herself could not answer the question yesterday about what an illegal immigrant looks like. So, law enforcement officers, a lot of – a lot of law enforcement officers in Arizona don't want this law. They understand that they need community policing and in order to be effective law enforcement officers, they need the trust of the Hispanic community, which will absolutely evaporate under this law.
BUCHANAN: But-
WRAGGE: Yeah, go ahead, Bay.
BUCHANAN: But you know, Chris, the law, as it stands before this was written, has not done the job. Arizona is a target for human and drug smuggling. It's the number one place, the number one state in the country where that's coming through, that's the target of the drug cartels to take them right through that state. And, as a result, Phoenix is the kidnapping capital of the country and it's one of the top kidnapping capitals of the world now.
CARDONA: But, the-
BUCHANAN: The crime in Arizona is outrageous. People are being murdered, the crime is high. The schools are overloaded. This – laws have not worked and so now they're given the tools. They're taking the handcuffs off the police officers and they're going to be putting them on those who are violating the laws of this country.
WRAGGE: Alright. Maria, let me ask you this. $3 billion a year along the lines of what Bay is saying here, $3 billion a year to educate, medicate, and incarcerate illegals in the state of Arizona. You're not in favor of this law, so what could have been done differently?
CARDONA: Look, what we need, clearly, is comprehensive immigration reform. I absolutely understand the frustration of the folks in Arizona, of all of our leaders in the border states who – who look at this problem and have – and have had this problem for many, many, many years. It is an issue that we need to deal with at a federal level, which is why the President said yesterday that we need to deal with this by passing comprehensive immigration reform.
The law in Arizona is not the way to go. I agree with Bay that there is a huge problem with undocumented immigrants who are actually drug traffickers and – and all of the crime is clearly an issue. This law does nothing to address this. The only thing this law will do is to make it open season for any immigrant, anybody who does not look Anglo, and it will make actually racial profiling legal in Arizona.
WRAGGE: Bay, last word to you, Bay-
CARDONA: It's insidious and it's wrongheaded.
WRAGGE: Bay, last word to you. How do you apply this law without racially discriminating against people or profiling?
BUCHANAN: You know, our border agents do it every day. So, this is nothing new. And, so-
CARDONA: They are trained.
BUCHANAN: -what they're saying is – they are trained – and that is what the governor of Arizona said, she's going to train her police officers. The key here is this is what the people of Arizona want. They've had it with federal government. They have refused to do the job, and the answer is not amnesty for the 15 to 20 million illegals here. That's what Obama wants. That's what the Democrats want. It is not – that just increases the number of people coming into the country illegal. The people of Arizona on the front lines that are paying the price, they've had it. This will clean up the problem in Arizona. That's what it'll do.
WRAGGE: Ladies, I got to leave it there.
CARDONA: It'll do nothing to do that.
WRAGGE: Got to leave it there. Thank you both very much. We could probably spend the next two hours on this topic.
BUCHANAN: We could.
WRAGGE: It is a hot topic. Alright. Republican strategist Bay Buchanan, Democratic strategist Maria Cardona. Thank you both, ladies, we do appreciate you getting up early with us this morning.
BUCHANAN: Sure, thank you.
CARDONA: Thank you very much.
CBS's Smith to McCain: 'How Are You Going to Dismantle' Financial Institutions?
Hitting from the left in an interview with Republican Senator John McCain on Tuesday's CBS Early Show, co-host Harry Smith worried about the ability of financial reform legislation to expand government control over Wall Street: "How are you going to dis – how does any of this dismantle these giant financial institutions?"
On April 22, ABC Good Morning America co-host George Stephanopoulos asked Treasury Secretary Tim Geithner a similar question: "Why shouldn't those big banks be broken up?"
At the top of Tuesday's Early Show, co-host Maggie Rodriguez put the GOP on the defensive: "Democrats continue to push for Wall Street reform. But are Republicans on board?" Smith later introduced the segment by portraying Democrats as fighting for reform: "Democrats refuse to give up on reforming Wall Street. Yesterday Republicans put the brakes on, but another vote could happen today."
In a report that followed, correspondent Nancy Cordes declared: "Senate Republicans voted last night against moving forward with debate on the massive financial reform bill. That drew angry recriminations from Democrats." A clip was played of Democratic Virginia Senator Mark Warner slamming Republican opposition: "I never got the memo that said our job wasn't actually to get stuff done."
Smith asked McCain about the bill's effectiveness in preventing another financial crisis: "will Americans be immune from the same kind of cataclysm that almost took the country off the economic edge two years ago?" McCain responded by pointing out problems with the legislation: "The bill, as it's constituted, I certainly couldn't give that guarantee....Fannie Mae and Freddie Mac are not included in any way in this legislation. They were the major catalyst behind this meltdown."
Smith went on to fret: "these giant financial institutions make most of their money now, not by mergers and acquisitions, not by investment banking, but by trading. They don't want to get out of the trading business. How are you going to dis – how does any of this dismantle these giant financial institutions?"
Here is a full transcript of the segment:
7:00AM TEASE—Kyle Drennen is a news analyst at the Media Research Center. You can follow him on Twitter here.
MAGGIE RODRIGUEZ: Goldman Sachs executives get grilled on Capitol Hill today as Democrats continue to push for Wall Street reform. But are Republicans on board? We'll talk exclusively with Senator John McCain.
7:01AM SEGMENT
HARRY SMITH: First, Democrats refuse to give up on reforming Wall Street. Yesterday Republicans put the brakes on, but another vote could happen today. And in the hot seat this morning, the embattled head of Goldman Sachs. CBS News congressional correspondent Nancy Cordes has more from Capitol Hill. Nancy, good morning.
NANCY CORDES: Good morning, Harry. This is the first time that the CEO of Goldman Sachs will testify here on Capitol Hill since his company was accused of fraud. Now, the Senators have been conducting their own investigation here. They say the company was making huge bets against the mortgage market, hastening its decline. According to his prepared testimony, Lloyd Blankfein, the embattled CEO of investment banking giant Goldman Sachs, will tell senators today, quote, 'we certainly did not bet against our clients.'
CARL LEVIN: I don't think they've been forthcoming with the public.
CORDES: The Securities and Exchange Commission has accused Goldman of knowingly deceiving clients, not telling them that one of its mortgage related investments called 'Abacus' was designed to fail. Internal company e-mails just released by congressional investigators suggest Goldman was having trouble finding an outside manager to vouch for Abacus, with one trader writing that one manager, quote, 'declined given their negative views on most of the credits. Senator Carl Levin of Michigan will lead the questioning today. What is it that your investigation has uncovered that has troubled you the most?
LEVIN: I think what troubles me, probably the most, is the conflicts of interest which are fundamentally inherent.
UNIDENTIFIED WOMAN: The motion is not agreed to.
CORDES: Meanwhile, Senate Republicans voted last night against moving forward with debate on the massive financial reform bill. That drew angry recriminations from Democrats.
MARK WARNER: I never got the memo that said our job wasn't actually to get stuff done.
CORDES: Republicans say they want to get stuff done, too. They just have problems with the bill, the two sides are still at the bargaining table. They say those talks are going well and the Democrats could schedule another vote in the next few days. Harry.
SMITH: Nancy Cordes on Capitol Hill this morning. Thank you very much. Joining us exclusively from Washington is Arizona senator and former Republican presidential nominee John McCain. Senator, good morning.
JOHN MCCAIN: Good morning, Harry.
SMITH: Finance reform bill. Dead, alive, comatose, how would you describe it?
[ON-SCREEN HEADLINE: Financial Reform; McCain, GOP Take on Obama Plan]
MCCAIN: I'd say alive. I think that there's been significant progress made. I think there's more progress that needs to be made. There's a lot of complexities here, a lot of members frankly don't understand all aspects of the bill. But I think there is a common desire to achieve a goal here.
SMITH: In the end, will Americans – if this gets passed – in the end, will Americans be immune from the same kind of cataclysm that almost took the country off the economic edge two years ago?
MCCAIN: The bill, as it's constituted, I certainly couldn't give that guarantee. For example, Fannie and Freddie are not – Fannie Mae and Freddie Mac are not included in any way in this legislation. They were the major catalyst behind this meltdown.
SMITH: The big mortgage lenders, yeah.
MCCAIN: Exactly. I'm very worried about the fact that these – if financial institutions that are big have gotten bigger. So there's a lot of concern here. But I think there is a good faith effort being made to reach an agreement.
SMITH: One of the things that was talked about was this whole notion of 'too big to fail,' these giant financial institutions make most of their money now, not by mergers and acquisitions, not by investment banking, but by trading. They don't want to get out of the trading business. How are you going to dis – how does any of this dismantle these giant financial institutions?
MCCAIN: Well, I think that there are regulations over so-called derivatives and there's other measures. But what bothers me is that why not – don't we just, as I, Senator Cantwell and I recommended, just go back to the point where banks that do the traditional banking things, making loans to people so they can buy their homes and all of that, just make them separate from these financial institutions. As we'll find out today in the hearing with Mr. Blankfein, that they do a lot of other things. In fact, there is compelling evidence, as was just reported, that the kind of activity that Goldman was in hastened the – and deepened the crisis.
SMITH: Yeah. Do you feel like – or from what you understand of it anyway – that Goldman Sachs was literally betting against itself?
MCCAIN: I don't think they were betting against themselves. I think they were trying to hedge their bets the same way if you go to it Las Vegas, the sports book, and the sports book balances the bets. But it had the effect of worsening and deepening the housing crisis, in my view.
