Archive for the ‘Czars’ Category

A bank that recieved more than $2 billion in bailout assistance last year is officially filing bankruptcy to absolve itself of more than $10 billion worth of debt. Government officials, who proffered the bailout funds a year ago on the insistence that the bank could not be allowed to fail, are now apparently okay with it failing and have conceded the American taxpayers will not recoup the lost money.

mugBloomberg reported on the plight of one CIT Group Inc. that filed in bankruptcy court last week. The firm owes money to approximately one bazillion creditors and attempted to pull off a debt exchange in bankruptcy court, but the creditors, led by Bank of America, are favoring the traditional process.

Here is why this story matters: first, it exposes the stupidity of the bailout, but more importantly, it’s one more dent in Bank of America’s pocket. The more of these smaller banks that continue to fold, the more BOA sees another debtor go “poof.”

BOA cannot afford to absorb many more of them. And if BOA goes bankrupt, get ready for the end of the world.


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Promises, Promises

How much transparency do we really want from Obama?   Ω

By Christopher BeamPosted Wednesday, Nov. 12, 2008, at 8:15 PM ET

During a presidential campaign, there’s no such thing as over-sharing. Barack Obama promised to run the most transparent White House in history—disclosing donations, shunning lobbyists, and broadcasting important meetings on C-SPAN. Transition captain John Podesta reiterated the point Tuesday when he said Obama’s would be “the most open and transparent transition in history.”

Senate Holds Second Hearing On Obama’s ‘Czars’   Ω

Last Updated: Thu, 10/22/2009

Aside from the clear problems of how to achieve effective governance in the absence of any clear lines of accountability, policy-czars also violate the fundamental spirit of the Constitution. This is a problem because White House czars are able to circumvent Congressional authority by the President delegating authority that already is in the purview of other officials (which is arguably the case with Paul Volcker, Nancy Ann deParle and Carol Browner whose duties greatly overlap those of Secretaries). In a deliberate non-partisan effort, Senator Collins specifically pointed to both the Bush and Obama Administrations’ appointments of ‘WMD Czars’ (Gary Samore currently) as a complete circumvention of a statutory position that was created by Congress in 2007. The congressionally created WMD Officer is “To provide for the implementation of the recommendations of the National Commission on Terrorist Attacks Upon the United States. “ However, this Officer requires the same oversight required of all statutory officers. To avoid this pesky check on the presidency, the Obama Administration simply neglected to fill the congressionally created office, and created its own — “Special Assistant to the President and White House Coordinator for Arms Control and Weapons of Mass Destruction, Proliferation, and Terrorism.” For Obama to leave a statutory office vacant and instead announce his own Czar — who is to carry out the exact same duties –is a clear circumvention of Congressional oversight.


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