Obama and the Bradley effect

Will attempts by the McCain camp to paint Obama as some kind of sinister and dangerous figure work?

Analysts seem to feel that such smear campaigns can be effective at times. Recall the absurd situation in 2004 where John Kerry’s actual service in Vietnam was ridiculed and called into question by the supporters of Bush and Cheney, both of whom were draft dodgers. Recall also the anti-gay marriage sentiment that seemingly played an important role in that same election.

So far, the normal hot-button issues of sexual orientation and abortion and guns have not played prominent roles in the campaign. This leaves race as the emotional issue that can be exploited. And rest assured it will be, along with all kinds of attempts to impugn the character of Obama using guilt by association.

In trying to run a smear campaign, the McCain campaign is hampered by its own baggage. For every attempt to paint Obama as an elitist, we have the McCains’ dozen (?) homes, thirteen cars, and private plane, and the fact that the outfit that Cindy McCain wore at the Republican convention allegedly cost around $300,000.
[Read more…]

Brace yourself

Breaking news: Barack Obama is black.

It is quite remarkable how little salience that fact has had in the race so far considering that if he wins, the election of the first non-white president of the United States is an event of major historic significance. While his ethnicity is a complex one, he cannot escape (and has in fact wisely embraced) the shorthand description of being black. For his campaign to have insisted on accuracy would have been to draw attention to trivial questions of race and ethnicity that are at best distractions and at worst would make race too important an issue.

When Obama speaks in a debate or gives speeches or is interviewed, the fact that he is black is not the most prominent impression he makes, at least for me. It is just an incidental item that registers in the background, like that he is tall or slim. Obama is on his way to becoming the Tiger Woods of politics. Just as the latter is no longer ‘the black golfer’, Barack Obama has almost, but not quite, reached the stage of not being ‘the black presidential candidate’. That is quite an achievement.

But the next month will see if he has made the complete transition to Tigerness. We are now entering the last stages of the presidential campaign, something I have been long dreading. With the McCain candidacy declining steadily in the polls and on a direct path to losing despite the Hail Marys thrown by them (selecting Sarah Palin and ‘suspending’ his campaign because of the financial crisis), you can expect them to now do desperate things.

By this I mean going well beyond the standard negative campaigning tactics of distorting your opponent’s record, taking their statements out of context, impugning motives, and focusing on style in order to give misleading impressions. Those things have always been part of politics.

No, I expect them to go nuclear, throwing everything at Obama to make him into the stereotype of the dangerous black man, to seek to change his image from that of a Tiger Woods to more of a Dennis Rodman, to transform him in the eyes of white people from someone whom you would welcome into your home to the kind of person you cross the street to avoid.

The McCain camp has already telegraphed their disgusting strategy and Sarah Palin has started the process:

Republican vice presidential candidate Sarah Palin on Saturday accused Democrat Barack Obama of “palling around with terrorists” because of his association with a former 1960s radical, stepping up the campaign’s effort to portray Obama as unacceptable to American voters.
. . .
Falling behind Obama in polls, the Republican campaign plans to make attacks on Obama’s character a centerpiece of candidate John McCain’s message in the final weeks of the presidential race.
. . .
Palin’s remark about Obama “palling around with terrorists” comes as e-mails circulate on the Internet with suggestions that the Democratic candidate is secretly a radical, foreign-born Muslim with designs against the U.S. — even though Obama is a native of Hawaii, a Christian and has no connections to Muslim extremists.

McCain’s campaign manager Rick Davis (himself now under a cloud because of revelations of his lobbying links to Fannie Mae and Freddie Mac) spelled out how such character assassinations are done.

The premise of any smear campaign rests on a central truth of politics: Most of us will vote for a candidate we like and respect, even if we don’t agree with him on every issue. But if you can cripple a voter’s basic trust in a candidate, you can probably turn his vote. The idea is to find some piece of personal information that is tawdry enough to raise doubts, repelling a candidate’s natural supporters.
. . .
It’s not necessary, however, for a smear to be true to be effective. The most effective smears are based on a kernel of truth and applied in a way that exploits a candidate’s political weakness.

(Thanks to BarbinMD for the link.)

Ironically, when Davis wrote the above, he was accusing those in favor of George W. Bush of using those very same dirty tactics against McCain in the 2000 Republican primary campaign when Bush was losing to McCain. Bush went on to win. Since McCain has now hired many of those very same Bush operatives to run his 2008 campaign, we should not be surprised to see a reprise of those tactics, now used by McCain against Obama.

One important factor in a successful smear campaign is the ability to create an ‘echo chamber’ for these slurs, to get it widely circulated in the media. The current financial crisis has been getting banner headlines and has been used to scare people into voting for this huge bailout. Given that financial issues are using up so much media airtime, it may be harder to get traction for this strategy. I suspect that people are more likely to be swayed by extraneous things when there are no major issues gripping their attention.

So will the McCain-Palin attempt at raising so-called character issues at such a time work? Or will it be seen as fiddling while Rome burns?

Frankly, I am not a good judge of whether raising extraneous issues will succeed. I don’t have a good feel for the pulse of the people. I really should get out more.

While I am very cynical of the way the government serves mainly the interests of the rich and powerful and influential, I am usually more hopeful about the good nature and good sense of people in general over the long term. Each election time I think that people will not be swayed by trivialities and will vote on the basis of what truly will affect their lives. And while most are like that, unfortunately there do seem to be some people who can be swayed by such appeals to their fears and intolerance.

Whether those numbers will be enough to sway the outcome of this election is something I cannot gauge.

Tomorrow: More on racial politics

POST SCRIPT: And now, live, the vice presidential debate!

Saturday Night Live had its by now obligatory Sarah Palin parody with Tina Fey, with the bonus of Queen Latifah playing moderator Gwen Ifill.

<!–

Government of the Dow, by the Dow, for the Dow

The recent financial crisis and the frantic (and finally successful) attempt by the government and Wall Street to strong-arm the public to provide immediate relief to the very institutions that caused the crisis is striking evidence, if anyone needed it, of exactly for whose benefit the government is run: Wall Street. You can ignore all the blather about how this bailout was needed to prevent ordinary people from financial ruin. That may or may not be true. What is indubitable is that if Wall Street interests were not at stake, nothing would have been done.

As was clearly evident in the past week, while the government can drag its feet for decades, say it is too expensive, and take no action to solve urgent problems like health care, when it comes to giving away nearly a trillion dollars to the financial industry, it can act with lightning speed. And you can be sure that when this money runs out (as it surely will as Wall Street institutions get their greedy hands on it) and next financial ‘crisis’ appears, we will be asked to cough up even more, and told that otherwise the sacrifices we have already made will be ‘wasted’. This is the same argument given for continuing the war in Iraq.
[Read more…]

Crisis? What crisis? Which crisis? Whose crisis?

In the midst of all this panic about a financial meltdown, it is hard to get a sense of how to actually measure if there is a crisis or not. Clearly there are various measures that can be used: the number of houses foreclosed, the number of personal bankruptcies, the number of banks going under, the amount of credit available, the state of the stock market, and so on. While they are all connected in some way, which ones should we be paying most attention to?

Deciding which measures are being used to say there is a crisis is important because that will drive the efforts to resolve it. Clearly what is concerning the political leadership is the state of the financial market, and the current bailout efforts seemed to be aimed at reassuring the banking, insurance, and other financial sectors and propping up the stock market. People are being scared and told that if the stock market declines their retirement savings will go down the tubes.
[Read more…]

Sarah Palin, a river of babble-on*

Tonight the nation finally gets to see Sarah Palin live and unplugged, presumably speaking unscripted.

The last three weeks have been mixed for her. On the one hand, she has drawn large and adoring crowds to rallies and meetings, being a bigger attraction than John McCain or Joe Biden. But despite this, her campaign has gone to extraordinary lengths to shield her from reporters. The two interviews she gave to Charles Gibson of ABC News and Katie Couric of CBS News were excruciatingly painful to watch, as you can judge for yourself from these excerpts from the latter.
[Read more…]

Gambling John McCain

John McCain is known as a lifelong gambler relishing visits to casinos. I have written before that I thought John McCain is also hot-headed and reckless. All these are not signs of the temperament required for a head of state. But his performance last week was extraordinary, even by his own standards.

His week started poorly when the headlines were blaring about a financial crisis and he had to backtrack from his earlier statement that the fundamentals of the economy are strong. He may actually be correct (I am not one who equates the health of Wall Street financial institutions and the stock market with the general economy, although the two are undoubtedly linked) but it was a poor choice of words and timing and he had to immediately retract and explain away, not a good thing to have to do for someone already being portrayed as being out of touch and ignorant on the economy.
[Read more…]

Why the Wall Street bail out plan is bad-6: The credit ratings agencies scandal

In voting down the bailout proposal 228-205 yesterday, the House of Representatives struck a small blow for democracy. They refused to be steamrolled by Wall Street and its agents in Congress and the administration.

As usual, in the run up to the vote, the administration met in secret with the Congressional leadership, worked out some vague plan, gave the House members just a few hours to see the bill, and then ordered the House members to vote for it or else, saying “Trust us, we know what is best. If you immediately don’t do what we say, the world will come to an end.”
[Read more…]

Why the Wall Street bail out plan is bad-5: Rewarding greed

In this next-to-last post in this series (but probably not on this topic), I want to look at how senior Wall Street executives saw their profession as some sort of game in which the goal was to extract more personal benefit than the next executive, leading to a leap-frogging of various forms of compensation packages that would leave ordinary people gasping.

These executives were taking risks with other people’s money that left many ordinary people ruined while they themselves were benefiting:

The chairman of Lehman Brothers, Richard Fuld, still has his mansion in Greenwich, CT, his oceanfront estate on Jupiter Island in FL, and his Park Avenue co-op in Manhattan.

Many at Lehman blame Fuld for dallying while his investment bank went bust, taking risks with other people’s money while he cleared over $40 million in salary and stock in the last year alone.
. . .
Fuld isn’t the only top executive who remains well-off despite his firm’s collapse. Former Bear Stearns CEO Alan Schwartz collected more than $38 million in salary and bonuses in the last three years for which figures are available.

[Read more…]

Why the Wall Street bail out plan is bad-4

A large number of economists were quick to express their dislike of the Paulson plan and have been vociferous in urging Congress to not be stampeded by the administration but to use this opportunity to put back into place some of the regulations that were dismantled over the last three decades.

Meanwhile on NPR this morning, Allan Meltzer, a former Fed economist and a professor at Carnegie Mellon University says that he does not see that this ‘crisis’ hurts anyone other than a few major players on Wall Street and that all the scaremongering about a global financial catastrophe if nothing is done are nor warranted.

Meanwhile a group of 150 economists have also weighed in, saying that there is no need for this mad rush and we should think things through carefully before committing ourselves to the Paulson plan or some minor variation of it.

As economists, we want to express to Congress our great concern for the plan proposed by Treasury Secretary Paulson to deal with the financial crisis. We are well aware of the difficulty of the current financial situation and we agree with the need for bold action to ensure that the financial system continues to function. We see three fatal pitfalls in the currently proposed plan:
1) Its fairness. . . .
2) Its ambiguity. . . .

3) Its long-term effects. . . .
For these reasons we ask Congress not to rush, to hold appropriate hearings, and to carefully consider the right course of action, and to wisely determine the future of the financial industry and the U.S. economy for years to come.

I am not optimistic that these cautions will be heeded. The administration and Congressional leadership is deep in the pockets of Wall Street and will find some face-saving way to give them everything they want.

Alexander Cockburn walks us through some of the highlights of the bipartisan deregulation that resulted in Wall Street firms playing fast and loose with other people’s money for their own benefit. One key person who appears repeatedly in this sordid story is Phil Gramm, the former Senator from Texas who is now economics advisor to John McCain and reportedly his preferred choice to be Treasury Secretary. As US senator from Texas, he pushed through some of the key legislation that resulted in this mess.

In 1999 John McCain’s friend and now his closest economic counselor, then a senator from Texas, was the prime Republican force pushing through the Gramm-Leach-Bliley Act. It repealed the old Glass-Steagall Act, passed in the Great Depression, which prohibited a commercial bank from being in the investment and insurance business. President Bill Clinton cheerfully signed it into law.

A year later Gramm, chairman of the Senate Banking Committee, attached a 262-page amendment to an omnibus appropriations bill, voted on by Congress right before a recess. The amendment received no scrutiny and duly became the Commodity Futures Modernization Act which okayed deregulation of investment banks, exempting most over the counter derivatives, credit derivatives, credit defaults, and swaps from regulatory scrutiny. Thus were born the scams that produced the debacle of Enron, a company on whose board sat Gramm’s wife Wendy. She had served on the Commodity Futures Trading Commission from 1983 to 1993 and devised many of the rules coded into law by her husband in 2000.

Somewhat stained by the Enron debacle Gramm quit the senate in 2002 and began to enjoy the fruits of his own deregulatory efforts. He became a vice chairman of the giant Swiss bank UBS’ new investment arm in the US, lobbying Congress, the Federal Reserve and the Treasury Department about banking and mortgage issues in 2005 and 2006, urging Congress to roll back strong state rules trying to crimp the predatory tactics of the subprime mortgage industry.

Cockburn points out that the enabling of Wall Street shenanigans has always been a bipartisan affair.

But is [Gramm} Exhibit A? No. That honor should surely go to Robert Rubin and to the economic course he set for his boss, the eagerly complicit Bill Clinton. Gramm has been the hireling of the banking industry. Rubin is at the beating heart of Wall Street finance, and he and Lawrence Summers at Clinton’s Treasury, were the guiding forces for financial deregulation.

Obviously the Republicans hoped that the roof wouldn’t fall in on their watch, and the crisis could be deferred to 2008 and then blamed on the Democrats. But their insurance policy was that if the roof did cave, as it has now, the rescue policy would be identical in both cases. That’s why Obama has collected more money than McCain from the big Wall Street houses.

The gang that successfully got out of Dodge in time was the Clinton-Rubin-Summers gang, just before the last bubble -–the stock market bubble — burst in March of 2001. They knew what was coming.

Rubin is one of Obama’s advisors, Gramm is McCain’s so whoever becomes president, as usual Wall Street has its friends in high places. They make money from public investments when the going is good and make money directly from the taxpayers when the going is bad. The only way their hands can be taken out of the till is if the public angrily tell their representatives that there should be no bailout until massive reforms and regulations are put into place so that people’s money is safeguarded from these rapacious predators.

This episode illustrates better than any civics class exactly who runs the country and for whose benefit.

POST SCRIPT: Jon Stewart on the Paulson plan

Why the Wall Street bail out plan is bad-3: More doubts

I have described before how the subprime mortgage debacle lies at the root of this mess. But how did it come about that mortgage lending, once the most conservative and transparent and regulated of banking practices, became the basis of a massive shadow economy in which trillions of dollars flowed around, free from any oversight? And what is the government bailout meant to do?

The foundations of the mess lies with the neoliberal deregulation policies that began under the Carter administration and was enthusiastically followed by every subsequent administration of both parties. The driving idea behind all this loosening was that the banking and investment sector was being shackled by too many regulations and too much oversight. The protective firewalls that had been put up between banks and investment houses following the excesses that led to the Great Depression were targeted. It was argued that if the banks were freed from these onerous restrictions, capitalism would bloom.
[Read more…]