Bailout 2: BoA Boogaloo.

“This move reflects either criminal incompetence or abject corruption by the Fed. Even though I’ve expressed my doubts as to whether Dodd Frank resolutions will work, dumping derivatives into depositaries pretty much guarantees a Dodd Frank resolution will fail.“

Along the same lines, Naked Capitalism‘s Yves Smith responds to the disclosure that repeat offender Bank of America is trying — with the Fed’s help — to foist their more toxic assets into FDIC-backed accounts (meaning that taxpayers will eat the losses.) “[T]his move amounts to a direct transfer from derivatives counterparties of Merrill to the taxpayer, via the FDIC, which would have to make depositors whole after derivatives counterparties grabbed collateral.“

Continues Smith: “The FDIC is understandably ripshit…Bill Black said that the Bloomberg editors toned down his remarks considerably. He said, ‘Any competent regulator would respond: ‘No, Hell NO!’ It’s time that the public also say no, and loudly, to yet another route for running a drip feed from taxpayers to banksters.‘” (Cartoon via here.)

Ten Years After.

You know what the world really doesn’t need right now? Another 9/11 retrospective. So, in terms of my thoughts on the recent tenth anniversary, I’ll just point you to the blog entries from that time, the 9/11 category here, and Paul Simon’s haunting, Dylanesque rendition of “The Sound of Silence” from the anniversary memorial.

It was a terrible day ten years ago, to be sure. But, I’m with Paul Krugman and The Onion. The horrors of that day can’t justifiy away torture, wars-of-choice, or any of the other ugly facets of the the low, dishonest decade that has followed.

Riled at Heart.

“To ‘direct’ something implies more to me than weighing in on the sad state of current affairs with a still shot of the United States Capitol and some sound effects, but the gesture is there.” Director David Lynch briefly weighs in on recent events in Washington. “‘Has Lynch ever before offered something so overtly political? Or is this actually post-political — a means of saying, ‘The system isn’t broken, it’s finished, who’s up for a song?‘”

Superman Gonna Learn Ya.

Speaking of Supes and via OsborneInk, the Man of Steel dresses down the Tea Party mentality, circa 1952. Where have you gone, Kal-El? Our nation turns its lowly eyes to you.

The Wisdom of the Deficit Owl.

“What fiscal crisis? The great unasked question in this summer of sound-and-fury is ‘why?’ The United States has many problems at the moment: a high-and-stubborn unemployment rate, a foreclosure catastrophe, a slowing economy that has not recovered and will not recover…and the ongoing challenges of infrastructure, energy and climate change. Fiscal crisis? The entire thing is a figment, made up of wise-men’s warnings repeated endlessly.“

James K. Galbraith, who warned of the deficit witchhunt a year ago, weighs in on the debt ceiling endgame currently playing out in Washington, as well as Obama’s role in it:

“[W]hat do we have, from a President who claims to be a member of the Democratic Party? First, there is the claim that we face a fiscal crisis, which is a big untruth. Second, a concession in principle that we should deal with that crisis by enacting massive cuts in public services on one hand and in vital social insurance programs on the other. This is an arbitrary cruelty. Third, a refusal to stand on the strong ground of the Constitution, against those whose open and declared purpose is tear that document and the public credit to shreds.“

Yep, that’s about it. When it became clear that Obama had fully inhaled voodoo economics and was once again going to give away the store in these needless negotiations, I said on Twitter: ““I’ll take [Boehner/Cantor/Lannisters/Littlefinger] at his word!” I just realized: Obama negotiates like Ned Stark. Now, winter is coming.“

But, really, that gives this president too much credit. He’s not a nobly deluded sap. He’s getting exactly what he wants: a Third Way-approved Grand Bargain that takes money out of a sputtering economy and needlessly slashes our social insurance system, all in response to a problem that is basically imaginary.

But, of course, the chatterers and the Serious People™ will applaud this bargain as being wise, centrist, and independent no matter what damage it causes — hey, only Nixon can go to China! And all the while the economy and labor market will continue to tank. What a fucking fiasco. [Rorschcat via here.]

There’s Money in the Memory Hole.

“The contrast in fortunes between those on top of the economic heap and those buried in the rubble couldn’t be starker. The 10 biggest banks now control more than three-quarters of the country’s banking assets. Profits have bounced back, while compensation at publicly traded Wall Street firms hit a record $135 billion in 2010. Meanwhile, more than 24 million Americans are out of work or can’t find full-time work, and nearly $9 trillion in household wealth has vanished. There seems to be no correlation between who drove the crisis and who is paying the price.“

As Bank of America pays a pittance to other banks for its malfeasance, former chair of the Financial Crisis Inquiry Commission Phil Angelides looks into how the winners are now rewriting the history of the 2008 financial collapse. “So, how do you revise the historical narrative when the evidence of what led to economic catastrophe is so overwhelming and the events at issue so recent? You and your political allies just do it. And you bet on the old axiom that a lie is halfway around the world before the truth can tie its shoes.” Attorney General Schneiderman, our nation turns its lowly eyes to you.

The fields are under lock and key.

“After enactment of House Bill 87, a law designed to drive illegal immigrants out of Georgia, state officials appear shocked to discover that HB 87 is, well, driving a lot of illegal immigrants out of Georgia…The resulting manpower shortage has forced state farmers to leave millions of dollars’ worth of blueberries, onions and other crops unharvested and rotting in the fields. It has also put state officials into something of a panic at the damage they’ve done to Georgia’s largest industry.“

As the AJC’s Jay Bookman puts it, “it might almost be funny if it wasn’t so sad.” In Georgia, indulging in xenophobia has backfired mightily for Nathan Deal, the state’s Republican governor, who is now desperately trying to get probationers to fill the agricultural labor gap his draconian anti-immigrant bill has created.

“The pain this is causing is real. People are going to lose their crops, and in some cases their farms. The small-town businesses that supply those farms with goods and services are going to suffer as well. For economically embattled rural Georgia, this could be a major blow.” And sadly, when it comes to deep, self-inflicted, and totally unnecessary economic wounds wrought by Republican idiocy, the Peach State here is just the canary in the coalmine.

Sixty hours, and what do you get?

“Just counting work that’s on the books (never mind those 11 p.m. emails), Americans now put in an average of 122 more hours per year than Brits, and 378 hours (nearly 10 weeks!) more than Germans. The differential isn’t solely accounted for by longer hours, of course–worldwide, almost everyone except us has…a right to weekends off, paid vacation time, and paid maternity leave. (The only other countries that don’t mandate paid time off for new moms are Papua New Guinea, Sierra Leone, Liberia, Samoa, and Swaziland. U-S…A?)“

It used to be a central tenet of progressivism was working to shorten the work week. Now, even unemployment-soothing innovations like workshare go nowhere, and, as Mother Jones‘s Monika Bauerlein and Claira Jeffrey explain (with handy graphs), we are all victims of the Great Speedup…but not the beneficiaries. “For 90 percent of American workers, incomes have stagnated or fallen for the past three decades, while they’ve ballooned at the top, and exploded at the very tippy-top…In other words, all that extra work you’ve taken on — the late nights, the skipped lunch hours, the missed soccer games — paid off. For them.”

It’s Time for the Brown Bag.

“The Attorney-General’s kind remarks are noted and appreciated. I’ve spoken to Ed Burns and we are prepared to go to work on season six of The Wire if the Department of Justice is equally ready to reconsider and address its continuing prosecution of our misguided, destructive and dehumanising drug prohibition.“

I saw this a few weeks ago, and Follow me Here reminded me of it: As we pass the fortieth anniversary of the failed war on drugs, Wire creator David Simon makes a deal with Attorney General Eric Holder: End the drug war for a Wire season six. As if there weren’t already enough good reasons to do so, S6 would be the cherry on top.

This is Why We Can’t Have Nice Things.

“There is a dignity in the Hoover Dam, a massiveness that speaks to a grand national purpose. A country — our country — decided to build it…Great works of infrastructure provided jobs and returned an incredible social investment. It is inconceivable to imagine the modern economy without the vast investments in infrastructure made by preceding generations — everything from rural electrification to developing the Internet.“

Ex-Grayson staffer (and friend) Matt Stoller dissects the lack of political will for infrastructure reinvestment in today’s political climate. “Ultimately, of course, we will have no choice but to rebuild our infrastructure or risk social collapse…Meanwhile, the ideological fight is not over whether to spend more on infrastructure. It’s whether we should privatize what’s left.“

Proving Matt’s point is this thoroughly sad column by ex-Biden Chief of Staff Ron Klain, a man who until very recently was a senior advisor to the president. (Now, he works for a “private investment firm,” natch.). Says Klain: “Hoover Dam nostalgia is misguided…[I]t’s time to let go of the idea that a handful of marquee construction projects, even majestic and lasting ones, can solve our employment problem. Such endeavors alone didn’t bring us out of the Depression in the 1930s, and they won’t end our current predicament.“

Uh, is anyone actually saying that we should only do “a handful of marquee construction projects“? No, no, they’re not. They’re saying we should build big things, build small things, rebuild and repair things big and small, and otherwise put people back to work in any way possible. Where’s the vision? It’s going to take something a mite bigger and more audacious to get the economy moving again than an employer-side payroll tax cut.