Irony: Wiretaps and Goldman

Combining my two most favorite subjects lately...

"The successful prosecution of Raj Rajaratnam suggests the difficulty prosecutors would have against Goldman Sachs. At this point, the big question for prosecutors is less about what they know to be true and more about what they can prove. And "to make a criminal case out of the mortgage activities, prosecutors would need at least one credible witness from inside the firm to point the finger at Goldman and its executives to show the company's culpability, proving that it was more than just a sharp operator."

Investigators do not have that one credible witness from the inside, and it's doubtful it will find one. Omerta will likely hold.  Unfortunately, investigators do not have wiretap evidence--something that would prove superior to a bunch of suggestive but not definitive emails."

The Obama Administration seems hellbent on renewing PATRIOT and violating the rights of average Americans even more than the Bush Adminstration.

Now there's a scenario this constant surveillance might have actually been very useful, and we've hit a wall. Instead of trying to catch a bunch of lunatics who leave other very obvious intelligence signs, we could have been wiretapping the banks, and getting enough evidence to stop what amounted to something terrorists have always aimed to do---bringing the American economy down with clandestine activities.

I guess that's irony, folks. 

Terrorist or freedom fighter?

A historical precedent: a robot signs PATRIOT Act extension into law.

With President Obama in Europe, an "autopen" has been assigned the dubious task of continuing the legacy of constitutional excesses of law, and civil rights violations.

While most of the provisions of the PATRIOT Act are permanent law (a sad fact indeed), the most controversial facets, and the ones most vulnerable to abuse and violation of the Constitution, are subject to periodic review. This includes the following three provisions: roving wiretaps that follow targets within US borders and may pick up civilian information, searches of business records, and conducting surveillance on "lone wolves"; individuals suspected of terrorist-related activities but not officially affiliated with any extremist group.  

All three provisions have been re-approved by the autopen. 

This appears to be the first time that a robot has been used to sign a law into application, and it appears to set a precedent that is still in a legal gray zone.

I for one do not welcome our new civil-rights, warrentless wiretapping overlords.

Get Palestine to Peace Talks-Mission Failed.

"Prime Minister Benjamin Netanyahu of Israel returned from Washington on Wednesday to a nearly unanimous assessment among Israelis that despite his forceful defense of Israel’s security interests, hopes were dashed that his visit might advance peace negotiations with the Palestinians.

One of the widely articulated goals of his trip, where he met with President Obama and addressed Congress, was to find a way to lure the Palestinians back to direct negotiations, thereby preempting their plan to approach the United Nations in September for recognition of statehood within the pre-1967 lines.

Instead, the Palestinians now say, Mr. Netanyahu’s speeches persuaded them that they had no negotiating partner. They plan to intensify their United Nations efforts, leaving Israelis worried about increasing international isolation and pressure, especially in light of the popular uprisings across the Arab world. "

Score one for oratory rhetoric.

Score negative one for Middle East peace.

Efficiency with Aid Money

Picked up a really good article on one of the most efficient ways to give aid. I like donating money to charity, but as an economist, the question of efficiency and whether or not this money actually makes a difference always sadly passes through my mind.

Now with at least some field-tested studies, my mind feels a whole lot better.

maybe you'll feel a whole lot better too

The Dark Side of the N.S.A

Binney expressed terrible remorse over the way some of his algorithms were used after 9/11. ThinThread, the “little program” that he invented to track enemies outside the U.S., “got twisted,” and was used for both foreign and domestic spying: “I should apologize to the American people. It’s violated everyone’s rights. It can be used to eavesdrop on the whole world.”

 

Goldman Sachs: How They Fleeced America and Why They're Gonna Get Away With It.

 "[Goldman Sachs] weren't murderers or anything; they had merely stolen more money than most people can rationally conceive of, from their own customers, in a few blinks of an eye. But then they went one step further. They came to Washington, took an oath before Congress, and lied about it.

The legal definition of financial fraud may be murky and complex, but everybody knows you can't lie to Congress. The punishment is up to five years in federal prison.

Former MLB pitching great Roger Clemens is indicted for almost the exact same thing.

Will it happen again, this time to the "1100-pound medical emergency" that is Goldman?

Notable Recipients of Goldman Sachs political donations (2008)

D-Barack Obama ($995,745)

D-Hilary Clinton ($401,950)

R-Mitt Romney ($235,275)

R-John McCain ($234,695)

R-Rudolph Giuliani ($111,725)

D-John Edwards ($71,650)

D-Rahm Emanuel ($42,350)

Notable Recipients of Goldman Sachs political donations (2010) 

D-Senate Majority Leader Harry Reid ($44,300)
R-House Majority Leader Eric Cantor ($27,650)
R-House Speaker John Boehner ($15,000)

R-Senator Roy Blunt ($51,692)
D-Congressman Jim Himes ($40,750)
R-Senator Marco Rubio ($35,092)
R-Senator Richard Shelby ($34,600)
D-Senator Charles E. Schumer ($31,900)
R-Congressman Robert Dold ($23,800)

Notable Past Donations
Former President George W. Bush (R)---(2004, $390,675---2000, $137,499)
Former President Bill Clinton (D)---(1996, $43,384---1992, $99,275)
Presidential Candidate John Kerry (D) (2004, $304,750)
Presidential Candidate Al Gore (D) (2000, $97,050)
Former President George Bush (R) (1992, $68,250)

Former and current Treasury secretaries previously employed by Goldman or with substantial links to Goldman Appointed by Clinton (D), Robert Rubin (1995-1999)---former co-chairman of Goldman Sachs Appointed by Clinton (D), Lawrence Summers (1999-2001)---paid $135,000 for a speaking engagement for Goldman Sachs in 2008, appointed Obama Adminastration's Director of the White House National Economic Council. Appointed by Bush (R), Henry Paulson (2006-2009)---former CEO of Goldman Sachs Appointed by Obama (D), Timothy Geithner (2009-present)---former head of the Federal Reserve Bank of New York. American taxpayers deserve better. It is clear that the banks cannot be trusted to regulate themselves, and that the unchecked power and influence such firms as Goldman have in Washington have come at the cost of graft and perjury that has cost American children the opportunity to live debt-free, and American workers the chance at a secure and prosperous job. I sincerely hope for justice, but I know there probably won't be any because...

 Goldman Sachs-the most bipartisan organization in America

The Deep Cut---Republicans Cutting Away All The Way To Clinton

http://www.politico.com/news/stories/0511/55088.html

"After campaigning on the promise to roll back spending to Bush-era levels, House Republicans have overshot their mark and landed in the last years of the Clinton administration — at least in the case of cuts from labor, health and education appropriations important to poor and working-class families."

Would asking for a reversion to Clinton-era tax rates not be reasonable now?