The Commentariat -- Sept. 16, 2013
President Obama on the fifth anniversary of the collapse of Lehman Brothers:
Buh-Bye, Larry!
** Annie Lowrey & Michael Shear of the New York Times: "Lawrence H. Summers, one of President Obama’s closest economic confidantes and a former Treasury secretary, has withdrawn his name from consideration for the position of chairman of the Federal Reserve amid rising opposition from Mr. Obama's own Democratic allies on Capitol Hill. In a statement released by the White House on Sunday afternoon, Mr. Obama said he had accepted the decision by his friend even as he praised him for helping to rescue the country from economic disaster early in the president's term." Thanks to contributor MAG for the heads-up. Update. The Times has since expanded its story & added Binyamin Appelbaum to the byline. ...
... Zachary Goldfarb of the Washington Post has much more: "... amid an intensifying uproar of liberal Democrats and left-wing groups opposed to his nomination, Summers decided to withdraw his name on Sunday, telephoning the president to tell him his decision. When word of Summers's candidacy first circulated, liberals erupted, furious at what they said was his record of supporting deregulation in the Clinton administration. Obama took to defending him when questioned on Capitol Hill.... In order to buy time and cool tensions, the White House announced that no decision would be made until the fall. But that gave only space for Summers's opponents to strengthen the opposition to his candidacy, with four of the 12 Democrats on the Senate Banking Committee, which would confirm Summers, signaling opposition." Here's Summers' letter to the President. ...
... CW: According to a Reuters report, published Friday, the four Democratic Senators on the banking committee who opposed Summers were Sherrod Brown (Ohio), Jeff Merkeley (Oregon), Jon Tester (Montana), AND "Colleagues of [Elizabeth] Warren, a Democrat of Massachusetts, expect her to vote against Summers if he is nominated.... Sources said she has expressed concerns about Summers to her colleagues and had raised them with people in the White House. She has stayed silent out of respect for Obama." CW: Maybe Sen. Warren, out of respect for her former Harvard colleague, told Larry there was no way in hell she would vote for his nomination. ...
... Update. Ben White of Politico: "During their [phone] call, Summers told Obama he believed there was now too much political opposition to his nomination to move forward, a person familiar with the phone call said. Summers told Obama that his nomination now would create too much political uncertainty for the Fed and could thus be damaging to the economy. Obama accepted Summers' rationale and did not attempt to convince him to continue as a candidate for the Fed job, the person said." ...
... Charles Pierce: "Senator Professor Warren was one of the driving forces behind a genuine populist uprising of liberal Democratic senators ... and that uprising has kicked Larry Summers to the curb. She has quietly carved out a leadership role in the one area in which she is an acknowledged expert.... Quite simply, she is doing what she said she would do when she was running for the Senate. She has enough allies to get done a lot of what she wants to get done. Anything this president -- or his successor -- wants to do as far as national economic policy now has to go through her, and through the coalition to which she belongs." ...
... Here's Elizabeth Warren's "thwacking speech" (September 9) to the AFL-CIO to which Pierce refers:
... ** John Cassidy of the New Yorker: "In recent weeks, numerous stories appeared that quoted White House and Treasury Department insiders saying how much the President respected Summers ... and how much he valued his advice. But we already knew that. The key question was ... how much political capital [Obama] would be willing to invest in landing him at the Fed. If you looked at the issue in terms of cold political calculus, which is how Presidential aides look at most things, it was pretty clear which way the cost-benefit analysis would come out.... It's only reasonable to speculate that the White House political shop prevailed upon the President to give up on nominating Summers, that he reluctantly agreed, and that somebody told Big Larry the news and gave him the option of withdrawing gracefully before another name was announced." ...
... Scott Lemieux in Lawyers, Guns & Money: "Now one has to hope that Obama will do the right thing and nominate Yellen rather than spitefully picking a white guy worse than Summers (such as Donald Kohn.)" ...
... Kathleen Geier of Washington Monthly: "Members of the Fed are mostly drawn from the pool of distinguished economists, so given women's agonizingly slow progress within the econ, it may be a long time before another woman is as well-positioned as Yellen to break the Fed's glass ceiling." ...
... CW: I agree with Steve M. of NMMNB in his assessment of why Larry dropped out (and with contributor Kate M. who doesn't let us forget all the millions Larry will make "consulting" Wall Street firms), but I'm not sure President Obama will pass over Yellen for Alan Greenspan acolyte Donald Kohn, as Steve M. fears. As we found out this week, Obama is not afraid of "looking weak," & I don't want to think he would sink the economy just so his economic team could keep that "No Girls Allowed" sign on their club door. We'll see. ...
... Evan McMorris-Santoro: "... the end of Summers’ bid isn’t the end of progressive pressure on Obama. [Women's and] progressive leaders won't be happy until current Fed vice chair Janet Yellen has the Fed job."
NEW. Rick Gladstone & Nick Cumming-Bruce of the New York Times: "Rockets armed with the banned chemical nerve agent sarin were used in a mass killing near Damascus on Aug. 21, United Nations chemical weapons inspectors reported Monday in the first official confirmation by nonpartisan scientific experts that such munitions had been deployed in the Syria conflict.... The widely awaited report did not ascribe blame for the attack...." ...
... Reuters: "France, Britain and the US have agreed to seek a 'strong and robust' UN resolution that sets precise and binding deadlines on the removal of Syria's chemical weapons, the office of the French president, François Hollande, said, emerging from talks with John Kerry and William Hague in Paris." ...
... Karen DeYoung of the Washington Post: "According to a State Department official's account of the negotiations [between the U.S. & Russia] that began Thursday evening and ended Saturday afternoon with a framework accord to secure and eliminate Syria's chemical weapons, it was a deal that almost did not happen. In the end, the deal was written entirely by the U.S. side. The Russians agreed to it in an impromptu poolside conversation between Kerry, Lavrov and their deputies, who dragged over chairs to join them. Kerry made final edits to the draft on an iPad in his hotel room." ...
... Liz Sly of the Washington Post: "At the close of a week hailed in Moscow and Washington as a triumph of diplomacy over war, more than 1,000 people died in the fighting in Syria, the latest casualties in a conflict that has killed more than 100,000 people and can be expected to claim many more." ...
... Jason Easley of PoliticusUSA: "The notion that [Russian President Vladamir] Putin saved [President] Obama is political spin by his critics who are trying to tarnish his diplomatic victory in any way that they can. It is a display of how deeply Republicans hate this president that they are so willing to label Putin a hero, not even a year after their presidential nominee called Russia our biggest rival.... Making Russia shift from denying the existence of Syria's chemical weapons and Assad's responsibility for the attack in less than a week is a sign of presidential strength. To Republicans, diplomacy equals weakness. The right is trying to turn Obama's strength into a shortcoming, and sacrificing facts, the truth, and consistency while trying to score cheap political points." ...
... Anne Barnard of the New York Times: "Both sides in Syria's civil war see the deal to dismantle President Bashar al-Assad's chemical weapons stockpiles as a major turning point. It left rebels deflated and government supporters jubilant. And both sides say it means the United States knows Mr. Assad is not going anywhere anytime soon.... Rebels and analysts critical of Mr. Assad's government say he has a well-established pattern of agreeing to diplomatic initiatives to buy time, only to go on escalating the fighting."
If we continue to set a precedent in which a president ... is in a situation in which each time the United States is called upon to pay its bills, the other party can simply sit there and say, 'Well, we're not going to ... pay the bills unless you give us ... what we want,' that changes the constitutional structure of this government entirely. -- Barack Obama, in an ABC News interview aired Sunday (see full interview in yesterday's Commentariat)
It has taken our President the Constitutional Scholar a full two years to figure that out. -- Constant Weader
Benghaaaazi! Karen DeYoung: "House Republicans will begin their promised fall assault on the Obama administration's conduct before, during and after the Sept. 11, 2012, terrorist attack in Benghazi, Libya, with the publication Monday of a report updating their investigation of the incident and a hearing Wednesday with testimony from a high-ranking State Department official. The report, prepared by majority staff for House Oversight and Government Reform Committee Chairman Darrell Issa (R-Calif.), focuses on what it calls 'shortcomings' in the Accountability Review Board investigation of the attack...."
Food Fight. David Rogers of Politico: "The farm bill is back....The final text of House Majority Leader Eric Cantor's proposed cuts from nutrition spending is due out Monday. Floor votes could come this week in what remains a closely fought battle. Fox News has jumped in, distributing scores of videos to Capitol offices of last month's report featuring the surfer deadbeat [buying lobster with his monthly food stamps benefit]." ...
... Samantha Wyatt of Media Matters: "In reality, Greenslate [the surfer dude] bears no resemblance to the overwhelming majority of SNAP recipients, many of whom are elderly, children, or rely on the program for a short time while looking for work.... Fox's attempt to demonize food stamp recipients as a caricature of willful dependency ignores the fact that SNAP kept 4.7 million people out of poverty in 2011, many of whom are children or the elderly. Unlike Greenslate, the majority of these individuals relied on the program not because of laziness, but necessity."
Paul Krugman: "... while there is legitimate uncertainty about what the Fed should be doing, the costs of being too harsh vastly exceed the costs of being too lenient. To err is human; to err on the side of growth is wise." ...
... Emily Alpert of the Los Angeles Times: A "small but surging share of Americans ... identify themselves as 'lower class.' Last year, a record 8.4% of Americans put themselves in that category -- more than at any other time in the four decades that the question has been asked on the General Social Survey...."
Glenn Greenwald: NSA Director Gen. Keith Alexander is an insane trekkie who, when he ran the Army Intelligence and Security Command, employed a Hollywood set designer to create (at taxpayer expense) an "Information Dominance Center" modeled after the bridge of the Starship Enterprise. CW: Greenwald's sourcing seems unimpeachable. Alexander strikes me as creepy, not someone you want to put in charge of anything.
Gubernatorial Race
Beth Reinhard of the National Journal assesses the Virginia race for governor: "Terrible candidates, awful campaign take Virginia from bellwether to sideshow." ...
... James Hohmann of Politico on why Ken Cuccinelli is losing to Terry McAuliffe. CW: The election is almost two months away. That gives Cuccinelli plenty of time to catch up. If Virginians care about policy, they'll vote for McAuliffe (though McAuliffe's performance before the Northern Virginia Technology Council, which Hohmann covers, doesn't speak well for McAuliffe in this area). If they care about ethics, they'll probably vote for Cuccinelli, the lesser of two evils.
Local News
Azi Paybarah of Capital New York: "Gov. Andrew Cuomo will hold an event with Bill de Blasio and Bill Thompson later this morning to help bring an end to the Democratic mayoral primary, according to multiple sources. De Blasio won Tuesday's primary with just over 40 percent of the vote, the threshold needed to avoid a run-off with the second-place finisher, pending a count of outstanding ballots." Via Joe Coscarelli of New York.
Photo below relevant to a comment I made in today's Comments:
News Ledes
Washington Post: "Police now believe two shooters, including one in fatigues, have killed four people and wounded eight others at the Washington, [D.C.,] Navy Yard on Monday, throwing the region into fear and chaos during the morning commute. At least one of the shooters is 'down,' police said mid-morning, but it was unclear whether that means the suspect has been arrested or shot. They said the other suspect remains at large, and police believe they have pinned down one between the third and fourth floors of one of the buildings on the installation in Southeast Washington." ...
... Here's the Post's liveblog of developments....
The Nation: Charlotte, North Carolina, police shot and killed "Jonathan Ferrell, a 24-year-old former football player at Florida A&M University [after he] crashed his car in Charlotte, North Carolina" & went to a nearby house for help. Officer Randall Kerrick has since been charged with "voluntary manslaughter." A CNN story is here.