The Trouble With Harry.

“Mr. Ford spoke about his childhood in Memphis, describing a grandmother who used the extension cords from living room lamps to discipline him and his brother. ‘I am always amazed when I meet parents who say they can’t get their kids to go to church, ’cause I didn’t know kids had options like that…Later, he returned to the subject: ‘We as a nation need to be disciplined. If there were ever a day in which an electric cord ought to be used on all of us to remind us of what’s good, what’s bad, what’s right and what’s wrong, it’s on the King holiday.'”

Speaking of exactly the direction Dems don’t need to go after yesterday’s’ Massachusetts thumping, consider Harold Ford, who (with some not-insubstantial Wall Street prodding) has up and decided he wants to be the Senator from New York, and who, among his many, many other faults, cannot seem to wrap his mind around either the basic fundamentals of capitalism or Dr. King’s doctrine of non-violence.

As I said on Twitter the other day, Harold Ford may not represent *everything* that’s wrong with the Dems, because we’ve got lots of problems right now. But he’s darn close.

Regulators, Mount Up.

“Unfortunately, there are some in the financial industry who are misreading this moment. Instead of learning the lessons of Lehman and the crisis from which we are still recovering, they are choosing to ignore them. They do so not just at their own peril, but at our nation’s. So I want them to hear my words: We will not go back to the days of reckless behavior and unchecked excess at the heart of this crisis, where too many were motivated only by the appetite for quick kills and bloated bonuses. Those on Wall Street cannot resume taking risks without regard for consequences, and expect that next time, American taxpayers will be there to break their fall.

In the bowels of Wall Street and one year after the collapse of Lehman Brothers, President Obama outlines his vision for financial regulatory reform, including a new Consumer Financial Protection Agency and stronger accountability and oversight in the existing regulatory regime. [Transcript.]

But — see also health care — some wonder if the President is going far enough: “The problem with concentrating on the banking system is that it allows the administration to present an overly optimistic assessment of its actions…Taking credit for stabilizing the financial system after feeding it with massive amounts of federal money is like a teacher bragging about turning around the academic performance of a failing student after handing them all the answers to the big tests.

Continues economist Nomi Prins, in an analysis that dovetails quite tellingly with the health-care situation:”A strong CFPA is a sensible plan…This proposal has drawn the most ire from the banking community, so you know it’s good…But Obama’s reforms do not strike deeply enough. The banking crisis has been subdued, not fixed, because of enormous amounts of government assistance. Ignoring that fact, and failing to overhaul the sector, leaves us open to another crisis. And the next round will be worse, because there is now so much more federal money invested in the banks.

Stuck in the Middle with You.

“That large-heartedness – that concern and regard for the plight of others – is not a partisan feeling. It is not a Republican or a Democratic feeling. It, too, is part of the American character. Our ability to stand in other people’s shoes. A recognition that we are all in this together; that when fortune turns against one of us, others are there to lend a helping hand. A belief that in this country, hard work and responsibility should be rewarded by some measure of security and fair play; and an acknowledgment that sometimes government has to step in to help deliver on that promise.

As I’m sure you know, President Obama delivered his health care reform address to Congress last night. [Transcript.] My thoughts on it are mixed.

On one hand, speaking in terms of rhetoric, style, and delivery, this was an amazing speech, his best since the campaign days. While it’s an open question how long its effects will linger, the address clearly and decisively helped move the reform ball forward. And the emotional closer, featuring Ted Kennedy’s heartfelt final words to the President, was incredibly moving. In sum, it’s the exemplary address we knew Obama had in him on this issue, and he brought it home perfectly.

But, all that being said, I can’t shake the nagging feeling that [a] the policy being outlined last night didn’t quite jibe with the wonderful speech, and, as all too common of late, [b] the president far too readily threw his left flank — the very people who sweat blood and tears to get him elected — under the bus.

To take the second part first, Obama early on indulged in an irritating and textbook case of Beltway false equivalence by setting himself up as the sensible middle between those cuh-rrrrazy single-payer types on the left and the free market fundies on the right. (“There are those on the left who believe that the only way to fix the system is through a single-payer system like Canada’s…“) Uh, yes, and not so long ago, Mr. President, you were among them. I feel like I’ve said this several times recently, but painting the left as dingbats to shore up one’s centrist bona fides is a pretty tired parlor trick at this point, and it never gets any less insulting.

As an aside, on the way into work yesterday, I — and everyone else around the Metro — was accosted by guys in Grim Reaper costumes and bullhorns, telling us all, basically, that violence will erupt and we will all die if this health care bill passes. Y’know, there’s a term for telling people they’ll be killed if a political event happens — We call it terrorism. (As it turns out, there’s a term for wearing a hood while telling people they’ll be killed too.) Well, imagine my surprise to hear — from the president I’ve vocally supported for two years now — that me and my fellow clowns on the left are just as part of the health care problem as these jokers are on the right. I have to admit, it kinda tempers the enthusiasm.

And then there was the discussion of the public option. Yes, the President did make a case for the public option in last night’s remarks: “[A]n additional step we can take to keep insurance companies honest is by making a not-for-profit public option available in the insurance exchange…It would also keep pressure on private insurers to keep their policies affordable and treat their customers better.” In addition, the President correctly pointed out, “It’s worth noting that a strong majority of Americans still favor a public insurance option of the sort I’ve proposed tonight.

But what the President giveth, the President also taketh away. The public option was clearly brought up in the speech after the non-negotiable section. (“While there remain some significant details to be ironed out, I believe a broad consensus exists for the aspects of the plan I just outlined.“)

Indeed, in case we missed the point, President Obama later made it clear: “To my progressive friends, I would remind you that…[t]he public option is only a means to [an] end – and we should remain open to other ideas that accomplish our ultimate goal.

He then went on to float two “compromise” ideas that, for all intent and purposes, are public option killers: (1) a trigger and (2) co-ops. (“For example, some have suggested that that the public option go into effect only in those markets where insurance companies are not providing affordable policies. Others propose a co-op or another non-profit entity to administer the plan.“)

The trigger notion — the idea that if the insurance companies don’t fix the problem themselves, a public option would then be “triggered” into existence — is in effect, as one progressive well put it, a threat made with an unloaded gun. It’s kabuki theater, pure and simple, because everyone knows that Congress never pulls the trigger in question. (See also the cost of prescription drugs in Medicare Part D.) As Slate‘s Tim Noah recently ably pointed out, triggers are used all the time as “compromise” fodder, and what they really mean is we’re going to pretend to have addressed the problem and let things go on as they have. And, really, how much worse would insurance companies have to fail before this trigger kicked in? We’re talking about health care reform right now because the system is already broken.

As for co-ops, there’s a good reason they are the compromise that the insurance industry tends to favor. Most likely, they’ll be too small, weak, and scattered to bring real competition to the market.

So, granted, we don’t have a final bill yet, and there are many strong advocates of a public option in the House who will continue to fight for it. But, if the public option is as expendable to the administration as it seemed last night, then we may have some problems.

To wit, if a health care reform bill passes that has an individual mandate (i.e. everyone has to buy insurance), limited subsidies (to keep costs down), and no public option, than what’s basically happening is this: People are being forced to buy insurance they likely still can’t afford from the very private companies that are making vast amounts of coin from the current, broken system. If this sounds like a huge boon for private insurance companies, it is. (One might even start to think they had a hand in writing the legislation.) Yes, a larger risk pool should make health insurance cheaper — but without a public option keeping rates honest, what guarantee do we have that these savings would be passed on to the consumer?

Along those lines, President Obama also made the case last night for a tax on premium plans to help pay for reform. (“This reform will charge insurance companies a fee for their most expensive policies, which will encourage them to provide greater value for the money – an idea which has the support of Democratic and Republican experts.“) But, again, without a robust public option holding the private industry’s feet to the fire, what will stop said insurance companies from just passing these costs down the line, in the form of higher premiums across the board?

(I’ll confess to being confused about this element of the plan anyway. The article I just linked on this premium plan tax says: “The hope is that employers would buy cheaper, less generous coverage for employees, thereby reducing the overuse of medical services.” Uh…cheaper, less generous coverage for employees? That’s a good thing? And I’m by no means an expert on these matters — far from it — but is “the overuse of medical services” really the main problem afflicting our health care system? It sounds a bit to me like “too many notes.”)

All of which is to say that I really hope the substance of the final plan matches the beauty of last night’s rhetoric. Now, I understand the counter-arguments: As Paul Begala recently reminded us, the Social Security Act of 1935 had serious problems too, and look how that turned out. The great is the enemy of the good. Politics is the art of the possible, etc. etc.

I don’t disagree with any of that. But I also believe that leadership is the art of expanding the horizons of the possible. (Cue RFK: “Some men see things as they are and say why. I dream things that never were and say why not.“) We always knew that the President is a master of oratory, and that he would move us all with his eloquence when the time came. But, in setting their sights so low on this bill, the administration, in my view, have come close to squandering both the historical moment and the president’s once-in-a-generation gift.

A historical puzzle lingers over the entire health care reform enterprise at the moment: How is it, with a Democratic House, a filibuster-proof Democratic Senate, and a Democratic president, that the proposal for health care reform on the table basically remains to the right of Richard Nixon? (See also: The Family Assistance Plan.)

Well, the short answer, imho, is lack of meaningful campaign finance and lobbying restrictions. (A key problem that’s about to get a whole lot worse.) But I would also argue in favor of another cause. For decades now, Democrats have tried to find that safe happy moderate middle, while Republicans — flaks, representatives and presidents alike — have willfully and consistently pushed that center to the right. The president’s address, however magnificent and even moving at times, felt like another step in the same old vicious cycle. And at this crucial historical moment, I strongly believe it would be a better demonstration of “our American character” if we Dems — and this administration — showed the courage of our convictions in words and deed.

Blue Sky Mining.

“One of the bill’s co-sponsors, Rep. Edward J. Markey (D-Mass.), said: ‘The American people wanted change in our energy and climate policy. And this is the change that the people are overwhelmingly asking for.’ He called it ‘the most important energy and environment bill in the history of our country.‘” After much wrangling and a half-hearted GOP attempt at filibuster (which is only a prerogative of the Senate), the House passes the Waxman-Markey climate bill, 219-212. (Eight Republicans voted for it, 44 Dems opposed.) The “cap-and-trade” bill “would establish national limits on greenhouse gases, create a complex trading system for emission permits and provide incentives to alter how individuals and corporations use energy.” [Key provisions.]

There is some concern that the bill has been watered down too much out of political necessity: “While the bill’s targets may seem dramatic, they are in fact less than what the science tells us is required to avoid catastrophic warming. The 2020 target in particular is far too weak and quite easy and cheap for the country to meet with efficiency, conservation, renewables and fuel-switching from coal to natural gas.

Still, environmentalists remain hopeful. “It is worth noting that the original Clean Air Act — first passed in 1963 — also didn’t do enough and was subsequently strengthened many times.” And, while the bill — which (sigh) gives away 85% of the new emission allowances (the heart of the “cap-and-trade” market hopefully soon to emerge) to interested parties — looks to “set off a lobbying feeding frenzy,” groups like the NRDC seem to agree that “[t]his is the best bill that can actually get through committee.”

Of course, now the bill has to get through the Senate, where the usual lions lie in wait. “”Senator Inhofe of Oklahoma said ‘It doesn’t matter,’ he declared flatly, ‘because we’ll kill it in the Senate anyway.'” And even some Dems are fatalistic about its prospects. “Mississippi Rep. Gene Taylor (D) voted against the measure that he says will die in the Senate. ‘A lot of people walked the plank on a bill that will never become law,’ Taylor told The Hill after the gavel came down.” Looks like Sen. Reid has his work cut out for him.

Atlas Hemmed and Hawed.

“Somewhere in literary-character hell, John Galt is spending an eternity getting beat down by Tom Joad & his pick handle.” Ah, Ayn Rand…come for the vaguely kinky sex, stay for the self-serving, thoroughly reprehensible philosophy. Salon‘s Andrew Leonard asks if the recent economic downturn has discredited Rand’s Objectivism once and for all, prompting — as you might expect — a war in the comments section between the true believers and the gleeful cynics.

Among the many funny comments, this one, reposted from here: “There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.

The Final Frontier.

“The future is here and we are not too far off a new age of space. It is not just about private astronauts going up, it is about bringing the cost structure down and about new medicines, solar power in space and the entire range of scientific benefits that can come from it.” After many years of discussion and planning, ground is broken on Spaceport America in New Mexico, “the world’s first purpose-built commercial spaceport.” Any and all donations to GitM for one of the $200,000 spaceshots soon to commence from there will be greatly appreciated.

42 Doin’ Work.

“If there is part of him that secretly covets Obama’s job, he is burying it inside. ‘I like my life now,’ he said. ‘I loved being president and it’s a good thing we had a constitutional limit or I’d have made the people take me out in a pine box, probably. But we had a constitutional limit and I knew that in the beginning. And so when I left, I had to go out and create another life. And I did it, and I love doing it.’

In a wide-ranging piece in the NYT Magazine, Peter Baker checks in on the post-presidency of William Jefferson Clinton. Among the topics discussed: Election 2008 fallout — Obama is forgiven, Kennedy and Richardson are not — and Clinton’s retrospective view of his own administration’s economic policy in light of the “Great Recession.” “He added: ‘If you ask me to write the indictment, I’d say: “I wish Bill Clinton had said more about derivatives. The Republicans probably would have stopped him from doing it, but at least he should have sounded the alarm bell.”‘

A Consumers’ Republic.

“The Federal Reserve was supposed to do this, but they were asleep at the switch.” In light of recent shenanigans, the Obama administration contemplates creating a new regulatory commission for the financial services industry. “Responsibility for regulation of consumer financial products is currently distributed among a patchwork of federal agencies. Some of these regulators regard consumer protection as a low priority. And some financial products are not regulated at all. The proposal could centralize enforcement of existing laws and create a vehicle for imposing tougher rules.” Sounds alright by me.

Plastic Surgery.

“‘This is landmark legislation that is going to make the credit card marketplace more transparent and more fair for millions of consumers,’ said Travis B. Plunkett, legislative director for the Consumer Federation of America. ‘In particular, it’s going to prevent credit card companies from suddenly and unjustly increasing interest rates which is pushing many consumers with credit card debt into bankruptcy.’” The Senate passes legislation aimed at reining in the more blatant and arbitrary instances of credit card usury by a vote of 90-5, with a bill expected on President Obama’s desk by Memorial Day.

This sounds like a clear step in the right direction…but funny how times change, isn’t it? It doesn’t seem like all that long ago that many of these same Senators passed the 2005 bankruptcy bill, which dug the financial hole deeper for millions of Americans in the name of an easy buck for the credit card industry. Better late than never, I suppose.

Hedge of No Return.

But while many stakeholders made sacrifices, some did not. In particular, a group of investment firms and hedge funds that hoped to hold out for a taxpayer-funded bailout. I don’t stand with them. I stand with Chrysler’s employees, management and suppliers. I don’t with stand with those who held out when everybody else made sacrifices.” President Obama announces that Chrysler will file for bankruptcy, and lays the blame squarely at the feet of hedge funds who rejected an 11th-hour deal to save the company, apparently in the hopes of garnering more bailout cash.

The hedge funds in question have fired back, of course. Apparently, they’re all for the “rule of law” and upholding our “world-leading bankruptcy code.” I’d probably be more inclined to take them seriously on these matters if they weren’t also trying to spike regulation of their industry that is long overdue. At it is, i’m thinking profit is more of a motivator here than principled civil disobedience.

At any rate, I think Salon‘s Andrew Leonard is exactly right about where public opinion will come down on this one. Says one observer (cited by Leonard) of what happened today: “The banksters are eagerly, shamelessly, and openly harvesting their pound of flesh from financially stressed average taxpayers, and setting off a chain reaction in the auto industry which has the very real risk of creating even larger scale unemployment than the economy already faces. It’s reckless, utterly irresponsible, over-the-top greed.” From my admittedly limited vantage, that sounds like a plausible reading.