The Lost Generation.

“The outlook isn’t sunshine and roses: Rick Raymond, of the College Parents of America, notes, ‘Graduates are not the first to be hired when the job markets begins to improve. We’re seeing shocking numbers of people with undergraduates degrees who can’t get work.'”

According to a new poll conducted by Twentysomething, a whopping 85% of college grads are moving back in with their parents after graduation. They’re also facing the worst job market on record and holding a record amount of college debt.

In other words, it’s crisis time. Should we ramp up government spending and fashion 21st-century versions of jobs programs like the CCC, WPA, and NYA? Or should we cut public sector jobs and just concentrate on lowering corporate taxes? hey, Win the Future™ and all that.

Neutral No Longer.

“The message: the FCC Chairman caved to the most powerful interests and is adopting a rule that may end the Internet’s historic openness to all software and content as a level playing field. This will undermine the Internet’s role in as an engine of economic innovation and democratic participation. The rule was written by and for the giants like AT&T, Verizon, and Comcast, who are cheering the rule. And the FCC Chairman is trying to fool the public into believing they should thank him.“

After earlier explaining why the FCC’s compromise(d) stance was “garbage”, Marvin Ammori laments Julius Genachowski’s sad sell-out on net neutrality. While the president is claiming victory here — it does, after all, follow the “solomonic or moronic” splitting-the-baby approach he likes to bring to every issue — everything you need to know about it is summed up in one sentence in Wired: “There was one group, however, which seemed content with the new rules: the nation’s cable and telecommunications companies, including AT&T, Comcast and Verizon.“

The Wheedle and the Damage Done.

“The Fed accepted a total of $1.31 trillion in junk-rated collateral between Sept. 15, 2008 and May 12, 2009 through the Primary Dealer Credit Facility. TARP was nothing compared to this.” (Also, $500 billion of that junk was rated CCC or below, which — given the rampant grade inflation going on at all the rating agencies — means it was really garbage.)

So, yeah, Wikileaks isn’t the only document dump in town this week. As mandated by the Dodd-Frank Act (after much pushing from below), the Federal Reserve today released information about some of its dealings from December 2007 to July 2010. And, while folks are just now delving into the intel, it already seems that some of the bodies buried during the financial crisis are now floating to the surface: “A quick analysis…indicates that Citigroup was the greatest beneficiary, drawing on a total of $1.8 trillion in loans, followed by Merrill Lynch, which used $1.5 trillion; Morgan Stanley, which drew $1.4 trillion; and Bear Stearns, which used $960 billion.“

In very related news, former Alan Grayson staffer (and a Hill friend of mine) Matthew Stoller lays out a compelling case for a harder stance against the Fed from the Left from now on. Some brief excerpts:

“It is good that this debate is happening. It means that we will be able to examine the real power structure of the American order, rather than the minor food fights allowable in our current political system. This will bring deep disagreements, profound ones, but also remarkable possibility. Modern American industrial policy is to push capital into housing, move manufacturing abroad, build a massive defense establishment, and maintain an oligarchic financial sector. This system isn’t a structural inevitability. People built it, and people are unbuilding it…

Like most American institutions, the Fed has shrouded itself in myth, with self-serving officials discussing the immaculate design of the central bank as untouchable, secretive, an autocratic and technocratic adult in the world of democratic children. But the Fed, and specifically the people who run it, are responsible for declining wages, for de-industrialization, for bubbles, and for the systemic corruption of American capital markets.”

Also on this topic, it comes out today that Bank of America was given a break by the SEC on a securities fraud settlement “‘because of the nation’s perilous economic situation at the time’ and the fact that it had received billions of dollars in taxpayer aid, according to the report by the SEC’s inspector general…Specifically, during settlement negotiations, Bank of America won relief from sanctions that could have hurt its investment banking business.“

To tie this back to the top, according to Bloomberg’s Lizzie O’Leary, who’s also been parsing the new Fed data, “52% of the collateral Bank of America pledged to the #Fed’s PDCF was rated Ba/BB or lower, or didn’t have available ratings.” (And, let’s keep in mind, PDCF was only one of several emergency programs.)

So, in other words, the government kept banks like BoA alive by buying up trillions in toxic assets and looking askance at their illegal activity. They repaid us with record bonuses for themselves and an epidemic of foreclosure fraud — the “getaway car for the financial crisis,” as a friend well put it — that’s screwing over millions of American families. And in terms of fixing bad behavior on the Street, nothing changed whatsoever. Boy, that’s some deal.

Mr. Wendell.

“With this history, you can rest assured that the insurance industry is up to the same dirty tricks, using the same devious PR practices it has used for many years, to kill reform this year, or even better, to shape it so that it benefits insurance companies and their Wall Street investors far more than average Americans.” Former head of corporate communications at CIGNA, Wendell Potter, the health insurance industry equivalent of Russell Crowe in The Insider, explains in Salon what his former employers are up to, and why our republic appears to be in a spot of trouble:

“During my 20 years in corporate communications and public affairs, I participated in the steady growth and influence of largely invisible persuasion — and at a time when newsrooms are shrinking and investigative journalism seems to be vanishing. The number of PR people long ago surpassed the number of working journalists in this country…The clear winners as this shift occurs are big, rich corporations and other special interests. The losers are average Americans, most of whom are completely unaware how their thoughts and actions are being manipulated to achieve corporate goals on Capitol Hill.“

Help: Need Money for Cadre of Lobbyists.

“‘Taxpayers are subsidizing a legislative agenda that is inimical to their interests and offensive to what the whole TARP program is about,; said William Patterson, executive director of CtW Investment Group, an activist group affiliated with a coalition of labor unions. ‘It’s business as usual with taxpayers picking up the bill.” Sigh. The WP’s Dan Eggen reports on GM and a host of financial firms using bailout money to lobby for the status quo. “Major recipients of federal bailout money spent more than $10 million to lobby lawmakers in the first three months of 2009, including arguing against pay limits for corporate executives, according to newly filed disclosure records.“

No Better Investment.

“In a remarkable illustration of the power of lobbying in Washington, a study released last week found that a single tax break in 2004 earned companies $220 for every dollar they spent on the issue — a 22,000 percent rate of return on their investment.” A new study by three University of Kansas profs tries to quantify exactly the amount of lucre generated by the lobbyists and influence-peddlers aswarm in Washington for their employers. And the answer? A whole lot. “The paper…examined the impact of a one-time tax break approved by Congress in 2004 that allowed multinational corporations to ‘repatriate’ profits earned overseas, effectively reducing their tax rate on the money from 35 percent to 5.25 percent. More than 800 companies took advantage of the legislation, saving an estimated $100 billion in the process.” [Hattip: Tim C. and Marginal Revolution.]

Fighting “Fighting the Last War.”

“After Gates was confirmed as George W. Bush’s defense secretary in December 2006, he gave several speeches outlining major reforms that his successor should undertake–in weapons procurement, promotion policy, and the whole careerist culture inside the Pentagon. (With only two years in office, combined with a plateful of crises in Iraq and elsewhere, he knew he wouldn’t have time to take those steps himself.) When he stayed on at Barack Obama’s request, and thus became his own successor, many wondered whether he would turn his words into action. With this budget, he has begun to do just that.“

A holdover from the bookmarks of last week: Slate‘s Fred Kaplan offers a concise overview of the proposed Obama-Gates military spending reforms. (These are not spending cuts, by the way, despite what you may have heard — just some much-needed and long-overdue reprioritizing over at the Pentagon. I also like the idea of phasing out defense contractors in favor of presumably much more cost-conscious civil servants.) “This budget will not go down easily in the Pentagon or in Congress. The F-22, the DDG-1000, and the Future Combat Systems are the favored systems by much of the Air Force, Navy, and Army brass, respectively…The F-22 in particular is also a favorite of many legislators — the result of politically shrewd subcontracting that spread out production of the plane to key districts in 46 states.”

Obama: Give Peace a Chance.

“‘I’m here tonight to say a few words about an American hero I have come to know very well and admire very much — Sen. John McCain. And then, according to the rules agreed to by both parties, John will have approximately 30 seconds to make a rebuttal.'” Now here’s a prez worth hugging…On the eve of his inauguration, Sen. Obama publicly makes nice with his former adversary, John McCain.

And, apparently it’s not just for show: According to the NYT, the president-elect has been trying to forge a bond with McCain (and his No. 2, Lindsey Graham) since soon after the election. “Mr. Obama arrived for their Chicago meeting on Nov. 16 with several well-researched proposals to collaborate on involving some of Mr. McCain’s favorite causes, including a commission to cut ‘corporate welfare,’ curbing waste in military procurement and an overhaul of immigration rules.“

Hey, rapprochement is good, bipartisanship is good. And working Senators McCain and Graham (and, I’d presume Maine’s moderates, Snowe and Collins) is simply smart politics. Still, when push inevitably comes to shove on Iraq, health care, and a host of other issues, hopefully the president-elect will remember to dance with who brung him.

McCain the (Bull) Moose-Hunter?

“When T.R. spoke of ‘swollen fortunes’ and ‘malefactors of great wealth,’ socialism was a genuine force in American politics, perceived by many to pose a serious threat to the social order. When T.R. first called for a ‘graduated income tax’ in his 1907 State of the Union, he was proposing a measure that the Supreme Court had ruled unconstitutional. Indeed, the federal income tax struck down by the Court wasn’t even ‘graduated,’ or progressive; it was a flat-rate tax.” One from a few days ago that Ted at The Late Adopter just reminded me of: As Slate‘s Tim Noah aptly points out, John McCain can either continue to decry Obama’s purported “socialist” tendencies, or he can continue to claim Teddy Roosevelt is his hero, but he cannot plausibly continue to do both.

At the very least, it would seem McCain, what with his coterie of lobbyist attendants, has either never read — or is flagrantly ignoring — TR’s “New Nationalism” speech: “There can be no effective control of corporations while their political activity remains. To put an end to it will be neither a short nor an easy task, but it can be done” (See also one of my favorites: “The prime problem of our nation is to get the right type of good citizenship, and, to get it, we must have progress, and our public men must be genuinely progressive.)”

Bare Stearns. | We are all NOLA?

“The Wall Street titans have turned into a bunch of welfare clients. They are desperate to be bailed out by government from their own incompetence, and from the deregulatory regime for which they lobbied so hard…It’s just fine to make it harder for the average Joe to file for bankruptcy, as did that wretched bankruptcy bill passed by Congress in 2005 at the request of the credit card industry. But the big guys are ‘too big to fail’ because they could bring us all down with them.” After the Bear Stearns deal and all it would seem to portent about the condition of the Dubya economy, E.J. Dionne reads the riot act to free market fundies.

In related news, WP’s Dan Froomkin’s notes how Dubya’s handling of the economy is now being compared to the aftermath of Katrina. ‘As the storm clouds gathered, was President Bush once again asleep at the wheel? A consistent theme in today’s political and economic coverage is that Bush’s failure to recognize the severity of the ongoing financial crisis and act accordingly is reminiscent of his disastrously slow and inept response to Hurricane Katrina….’As with the war in Afghanistan, the Iraqi war aftermath, the Hurricane Katrina disaster and current efforts at Mideast peace, investors are concerned that the president is responding too late and with inadequate understanding, resources and creativity.'”