Molly Ball, a reporter who interviewed me at the very first Yearly Kos when she was at the Las Vegas Review-Journal, and who now writes for The Atlantic, decides to make giant pronouncements about the “hard right” and “hard left” positions in the housing debate.
In the politics of housing, “On the one hand, there is some of that Rick Santelli rage,” said Matt Bennett of the center-left think tank Third Way, a former Clinton administration official. “There’s real discontent over the idea that people who acted irresponsibly are getting a bailout or a break, while people who are struggling to manage their underwater mortgage while paying their bills aren’t.
“On the other hand, there’s the idea that the government had better do something, because this crisis is destroying property values, destroying neighborhoods, and greatly dragging down the economy generally.”
There’s a hard-right position — that government should stay out and let markets take their course, without trying to mitigate the collateral damage. And there’s a hard-left position — that the government should just bail out homeowners the way it bailed out banks, regardless of whether they “deserve” it. Both are broadly unpalatable.
Set aside the pants-wetting fear that elites like Matt Bennett make a pose at, as if fear of Rick Santelli is to blame for allowing the banks to get away with systemic fraud. But let me correct Molly Ball’s impression. The “hard-left position” is that entities who break the law should pay the price. I know it’s a real inconvenient point these days, but it happens to be the fact.
You can see Eric Schneiderman, above, in his first national TV interview in months, expressing a form of this with Rachel Maddow. “I’m a prosecutor,” Schneiderman says, explaining that he and his allies like Beau Biden, Delaware’s AG, felt they needed to do an actual investigation on the misdeeds of the mortgage lending industry during the bubble years.
“It’s really not all that obtuse… this was a man-made crisis, it was caused by regulatory neglect and greed… we think we’re going to be able to obtain real, meaningful relief… we think we have to hold accountable the people who caused this disaster, and just as important, we gotta get this out in the open so they can’t rewrite history.”
That’s a pretty good nutshell summary of the alleged “hard left” case. There are people who broke the largest market in the world, the US residential housing market. We know who they are. We can investigate them to learn the extent of what they did. And then they can, by way of a penalty, provide the relief that millions of homeowners need. Unless you consider the criminal justice system to be “hard left,” there’s nothing remotely ideological about that position.
The hard right position, the counterpoint to this belief in the rule of law, comes from Larry Summers:
Fifth, there were clearly substantial abuses by financial institutions and most everyone in the mortgage industry during the bubble. Just compensation to the victims is a legitimate objective. But allowing negotiation over past actions to be the dominant thrust of policy creates overhangs of uncertainty that impose huge costs on the financial system and inhibit lending. A rapid resolution of disputes is equally in the interests of bank shareholders and the housing market. The FHFA should be striving to rapidly conclude this period of uncertainty.
That’s the “hard right” position, that crimes should be wiped away in the name of reducing uncertainty. I know where I stand.




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Ms. Ball lost me at `center-left think tank Third Way’.
That’s like describing Jamie Dimon as a `shareholder rights activist’.
Or Eric Holder as `the chief law enforcement officer of the United States’.
And I love the way that Larry is now spouting the U-word.
OWS Atlanta,53 99ers arrested last night because there was a man with a Rifle in Woodruff Park Yesterday.
1 man with a Rifle and the Mayor orders the Arrest of Peaceful Protesters and the shutdown of Woodruff Park.
In 1990+- a year I was on my way to work driveing thru a black neighborhood there was a black man 30+- years old walking not running with a rifle before I traveled half a block there were 3 Atlanta Police cars blocking his path.Exiting there cars weapons drawned.
Rule Of Law and how it’s applyed.
now you have to be a teabagger with snakes on your flag.
Rachel is still an 0bot quisling working for GE/Comcast.
Not a syllable about holder and/or cuomo and their lack of prosecutions, in this interview or with Glen Greenwald following this.
That lack of activity was mother’s milk for the teabag origin of the teabaggers before their innerbigot’s were herded with a kochspoon.
I had the same reaction to the “Third Way” comment.
Moving past the crimes and resolving this issue quickly doesn’t accomplish anything but making it easier in the future for the MOTU to do this again. There is no hesitation to commit a crime if there is no fear of consequences for commiting that crime. This is part and parcel of the attitude among the powerful that they are not subject to the consequences of their actions, so no surprise there.
If we could just convince the MSM to put down the crack pipe of false equivalency and actaully report what is true and what is not then we might see some sanity return to the world.
Yeah, right.
Besides the high profile perps Keating and Milken how many bad actors actually went to jail for the Savings and Loan collapse?
All the enforcers at the SEC will work at Goldman someday so no one will go to jail for this collapse.
I’ve been really dissappointed with Rachel lately. Barely a word about OWS and last night during the “Interview” it seemed she couldn’t get Glenn off fast enough. Many of her interviews go on for several minutes. Sometimes even going on after a break but not last night. Three or four questions and it was “hit the door”.
We totally agree about the Greenwald segment. I said to my honey, he seemed to be biting his tongue, and was surprised she didn’t ask his impressions about the legalities and what Schneiderman is doing.
Glenn looked a bit slighted. I felt he got the bum’s rush.
I guess that why I took supplies to the 99ers Saturday.Really
Thnx for including the video of Schneidermann, David. He kept hitting a key concept: equal justice for all, equally applied.
Maddow will only come on board fully when it is safe. Understandably she wants to keep what she has but it would be nice if some of these millionaire newspeople “came out” for the cause, got fired and went to Democracy Now or Alternet that would be a game changer for media coverage in the future.
How did we manage to degrade our ideals to the point where “serious” people can openly question whether the rule of law is or is not a good idea? Rhetorical question.
Apparently rule of law is a good idea when discussing the enforcement of permits in a park but not when discussing fraud or gross negligence and breach of fiduciary duty.
If all you have is a hammer you say the job needs your hammer – esp. if it gets the hedge funds on your side.
Rule of law sounds good – but as always it is being used to make the rich richer.
My diary points discusses the study showing how the rich interconnections control the world – without any problem from the law because they are above the law. http://my.firedoglake.com/papau/2011/10/25/the-capitalist-network-that-runs-the-world-revealed/
Exactly.
Someone’s getting their signals crossed. The “hard left” demands the authorities arrest people who break the law, the authorities arrest OWS types. Was it Obama who said neglect and greed might be bad but they’re not against the law? But apparently he thinks trespassing, disorderly conduct, and resisting arrest are? Which side is he on?
He is on the side of the people…who can afford a $38000 a plate dinner.
Thanks for posting the interview. I really liked what Schneiderman had to say about the rule of law and about OWS, across the street from his office in New York City, being the tip of the iceberg, that he’s hearing people from all over the state and all walks of life who are just as angry about unequal justice and the economic devastation.
Well done, dd. I especially like the way you juxtaposed positions and who you chose to represent the hard right.
Schneiderman is completely correct.
A two-tier system of justice is NO system of justice.
The brazen impunity of Wall Street criminals is fueling a level of outrage in the citizenry that’s going to be hard to contain, unpredictable and destablizing.
alan1tx, your running theme is that OWS are lawbreakers, correct? The false equivalency is just plain silly of you. At least you are doing better to hide it, that’s something I guess.
Over a thousand executives were convicted of felonies in the S&L debacle.
http://www.creditwritedowns.com/2011/02/an-informal-history-of-the-savings-and-loan-crisis.html
Agreed, and is used as an excuse to transition to total surveillance information awareness and a complete end to personal privacy?
Yes, often. And as an excuse for excessive use of force by police and military and as an excuse for curtailment of other civil liberties.
We need to expect to see the whole classic roster of bad-behavior-by-establishments-under-attack before this thing is over.
No, not really.
Only a small percentage of OWS are law breakers. Some are just rule breakers. For example if the rules of the park are “No overnight sleeping” and some people clearly do, that’s just not obeying the rules, no biggie.
Also, I don’t imagine we should call OWS “hard left”, maybe left leaning. I just find irony in the side that Delivers Eloquent Defense of the Rule of Law has hundreds of it’s followers arrested daily.
Thanks, Watt4; I was about set to go digging some William Black column to show what he and his team accomplished. And how simple it would be again now, as there are clearly existing laws against…fraud.
So, you are law enforcement, judge and jury now? Is there any point at which you would consider breaking the law one’s duty?
I don’t think you understand the meaning and responsibility to civil disobedience.
No one is calling them “hard left” except you are implying it. DD specifically refers to it as the alleged hard left position. But words lose their meaning don’t they?
Of course, you find irony, traitors to their class often do, don’t they?
While you sh-t on them, they fight for you. How’s that for irony?
The Best Way to Rob a Bank Is to Own One
How Corporate Executives and Politicians Looted the S&L Industry
http://www.amazon.com/Best-Way-Rob-Bank-Own/dp/0292706383
about $50 for hard copy
review: http://www.utexas.edu/utpress/books/blabes.html
As I recall over a thousand convicted – but in the much worse derivative disaster of 2008, all we do is try to destroy institutions crying rule of law as we try to make the crooks that have now bought ht the heavily discounted MBSs richer – paying them at 100 cents on the dollar. – and allow those crooks to keep their money and freedom as they become the good guys who were cheated on those MBSs in our punish the banks for fraud push. Alice in Wonderland comes to mind.
I sent thanks to AG Schneiderman and his office staff responded very kindly and with appreciation. Contact him and thank him. Congress critters and presidents won’t respect rule of law, you know what forces are aligned against him and the few AG’s standing with us.
And the best way to rob WE the People is to own the government.
I don’t watch Rachel any more but happened to be channel surfing and caught the Schneiderman segment part way through. My first reaction: sorry to see him on that show. Made me think that a sellout is coming. Hope I’m wrong but just the association with Obot Rachel gives me that hinky feeling. Also watched the Greenwald segment later on a re-run and agree; it was all very perfunctory.
Rachel Maddow: from national treasure to national disgrace.
The communist position is that those who break the law should pay the price? Ho ho, communism and conservatism confused. No, the hard-left position is that the law serves class interests. The liberal position is that the law should serve class interest. The liberal position is shattering.
And yet, Black did and here we are. Eternal vigilance must be the answer, hmmm? And who might that answer serve?
Effective deception is an excuse for lack of prosecution. Once exposed, illegality is a blockade to revolt.
It is most peculiar that there should be any discussion over the fraud that was perpetrated by the bundlers who used the MERS website or whatever it is to transfer all the properties into, because the taxes that were dur for all the transfers were avoided that way, and that is what caused for the foreclosures to be deemed illegal. Why, because the paperwork, including the taxes that were due for the transfers of the porperty did not establish exactly who the owner of each property was at each juncture of the bundling and rebundling of the mortgages. The Justice Department together with the Treasury are not anxious to cut to the chase, and declare a moritorium on the bundled morgages, or to get relief to the dispossed ex house owners. Their priorities lie elsewhere. Human life diesn’t mean anything to them, and the adrenaline rush they experience by getting away with murder is what they crave, unless by now, the thrill is gone, and the fear of being arrested and put on trial, and spending the rest of their lives in jail, like Bernie Madoff is keeping them on their toes, coming up with more and more ludicrous ideas and propositions by the day. The latest idea to make it legal for the Obama Administration to lie to the public or those investigators looking for answers in a public probe of an Administrative blunder, is so arrogant and insulting that the citizens of the USA have to revolt. They must demand justic, and that would be to remove the occupant of the WH and vacate the head post of the DOJ and get down to the business of restoring the economy. We will never beable to make progress with this couple of hard headed villains at the helm of our ship. They deny that the Titanic is sinking and are sitting in their lifeboats watching the rest of us jump into the icy brink. LEt’s roll this clip back and avoid the iceberg in the next take please.
As people are gauging whether to read or listen to you, alicewolf, it would be helpful if you would announce that you’re with LaRouche.