Mormons Win in California, For Now

Anyone who has been following the 2008/2009 contest of California's Proposition 8 (constitutional prohibition of marriage between people of the same sexual preference or same sexual identity) knows that it was submitted and promoted by Salt Lake City. The paper trail is clear. Arguably, Salt Lake City isn't even in California. But that was not the issue, because the Utah money did persuade California voters. Recently, the California Supreme Court upheld the amendment. But Friendly Atheist Hemant Mehta posted Am I a Bad Person If I Think The Prop 8 Ruling Was Correct?. His point is that this ruling will make it harder for anti-gay activists the next time around. States are beginning to domino into accepting marriage between those of same gender much like they did for those of different races in the mid 20th century. Conservatives have a valuable role to play; they fear and resist change. They function as a drag anchor to force those who would move ahead to work out iron-clad methods before change is implemented. Our legal system therefore resists implementing anything new from the grass roots direction until it is acceptable to at least half of the voting population. Very frustrating, but a historical necessity. When the process is short-circuited, we get embarrassments such as the 18th and 23rd amendments to our Federal Constitution.

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How to really reform the SEC

Dan Smolin asks a good question: Why should we assume that the SEC's Mary Schapiro will make a U-turn in 2009, given that Schapiro has spent her entire career inviting brokerages to "self-regulate" and doing everything in her power to keep consumers at bay when they are ripped off and kept in the dark by brokerages? The easy answer is that we shouldn't assume that Schapiro will all of a sudden go to bat for the consumers. After all, Schapiro "has been at the very center of a failed regulatory process for the past two decades." We know where her loyalties lie, just like we know that Tim Geithner will never turn hard against Wall Street to clean up the corruption (see here for more details on Geithner--and here). Truly, years of actions speak much more loudly than months of words for both Schapiro and Geithner. I am convinced that Obama doesn't have the horses he needs to clean up Wall Street corruption. It's a typical modern conundrum where you need a highly motivated powerful outsider to get the job down, but there simply aren't enough highly motivated powerful outsiders. If Mary Schapiro had even an iota of interest in protecting consumers, Smolin wouldn't be needing to advocate for the following changes he is now pushing--they would have been a reality years ago:

1. Abolish the mandatory arbitration system and give investors back their constitutional rights;

2. Abolish "self regulation" by FINRA, which is a sham. The brokerage industry should be regulated by a governmental authority with the power to do so effectively. The SEC would be the likely agency to do so, with the right leadership;

3. Require brokerage statements to:

(a) Disclose the risk of every portfolio, as measured by standard deviation; (b) Compare the returns of every portfolio to a portfolio indexed to benchmarks of comparable risk; and (c) Disclose the "cost equity" of the portfolio, which is the amount the investor must make to break even, after payment of commissions, fees and margin interest. Common sense, right? Why aren't these reforms a reality? Good question. And why is a terribly motivated person like Mary Schapiro still sitting there pretending to be a reformer?

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Held Hostage by Health Care

A physician friend of mine sent me a link to a piece written by Dr. Marcia Angell about why Congress should consider a single-payer system and suggestions as to how it could be implemented. Dr. Angell is a senior lecturer in social medicine at Harvard Medical School and a former editor-in-chief of the New England Journal of Medicine. I can only hope that, even though she was not invited to speak in front of Congress, Pres. Obama and the Congress see her words and incorporate this into their discussion.

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McClatchy calls out Cheney on his lies

Good for McClatchy, publishing an article detailing Dick Cheney's recent lies regarding torture conducted by the United States.

Former Vice President Dick Cheney's defense Thursday of the Bush administration's policies for interrogating suspected terrorists contained omissions, exaggerations and misstatements.

If Cheney really wants to claim that the U.S. mistreatment of prisoners produced information that "prevented the violent death of thousands, if not hundreds of thousands, of innocent people." OK, Cheney. If that really were true (it isn't) tell us what information was obtained and how it saved thousands of people. Just give us one example of how that information saved any lives at all. It's hard to believe that this clown was theVP of the United States. He could never gotten his way invading Iraq in the first place if all the media had been as diligent as McClatchy has been over the years. Note that the article doesn't limit itself to Cheney's speech, but reviews many of the lies and distortions of the Bush Administration.

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Who’s watching the Federal Reserve? Not the Inspector General of the Federal Reserve.

Who's watching the Federal Reserve? Not the Inspector General of the Federal Reserve. This video shows a May 5, 2009 hearing where Rep. Alan Grayson asks Elizabeth Coleman, the Federal Reserve Inspector General, about the trillions of dollars lent or spent by the Federal Reserve and where it went, and the trillions of off balance sheet obligations. As you can see, she is clueless and/or full of bullshit. So much for public accountability. It's time for a real investigation of the Federal Reserve.

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