Archive for the ‘Barack Obama’ Category

The end of the combat mission

Tuesday, August 31st, 2010

I got an email from the White House yesterday about the end of the combat mission in Iraq:

We are at a truly historic moment in our nation’s history. After more than seven years, our combat mission in Iraq will end tomorrow.

As both a candidate and President, I promised to bring the war in Iraq to a responsible end. Now, we are taking an important step forward in delivering on that promise. Since I took office, we’ve brought nearly 100,000 U.S. troops home from Iraq, millions of pieces of equipment have been removed, and hundreds of bases have been closed or transferred to Iraqi Security Forces.

Our combat mission in Iraq is ending, but our commitment to an Iraq that is sovereign, stable and self-reliant continues. As our mission in Iraq changes, 50,000 U.S. troops will remain in Iraq to advise and assist the Iraqi Security Forces as they assume full responsibility for the security of their country on September 1. We will forge a strong partnership with an Iraq that still faces enduring challenges.

I am glad for the lives of soldiers still serving that the combat mission is over, but what a terrible, terrible terrible waste of lives and resources it was. What the hell did it accomplish?

And what happens to the Iraqi people now? Are we going to better for our friends there than we did for the Hmong people after the Vietnam War?

Wow! Feds finally get it!

Thursday, June 3rd, 2010

It’s amazing, but perhaps true: the importance of transit is beginning to dawn on federal officials an d.

This isn’t about high-speed rail or big new capital projects. Someone’s actually paying serious attention to the nuts and bolts of buses and (existing)  urban rail lines!

From the Dedham Transcript:

BOSTON — Federal funding to help operate cash-strapped transit systems like the MBTA will likely be on the table as billions of dollars of transportation spending are meted out by Congress, a top Obama administration transportation official said Wednesday.

“It’s been a challenge for mid-size systems in Cleveland to rural systems in the Dakotas to the big systems in the urban areas,” Therese McMillan, second in command of the Federal Transit Administration, told the News Service after delivering remarks at a meeting of the Metropolitan Area Planning Council. “Everyone is really struggling.”

McMillan cited the national recession as a cause for stress of transit systems nationwide, and she noted that the American Recovery and Reinvestment Act of 2009 permitted 10 percent of capital transportation spending to be used for operating expenses, such as running trains and paying employees.

But McMillan remained mum on a proposal that would permit large urban transit systems to regularly spend more federal dollars on transportation operations, acknowledging the proposal, supported by Rep. Michael Capuano, but saying the Obama administration has yet to take a position.

On the other hand, McMillan pointed to a transportation authorization bill pending in Congress that would provide $2 billion to cover operating costs for transit systems, a proposal supporters say would stave off fare increases and service cuts. According to the bill’s preamble, 84 percent of federal transit systems have raised fares, cut services or have considered one of those actions since January 2009.

Under the bill, sponsored by Sen. Chris Dodd (D-Conn.), federal transportation funds may be used to transit systems’ operating expenses in order to “restore a reduction in public transportation service and related workforce reductions” or to “rescind all or a portion of a fare increase.”

Improvements to the mortgage relief plan

Friday, March 26th, 2010

President Obama is going to unveil a real mortgage relief plan, about three years after he should have.

It’s got some very good elements, but it is crying out for some income limits.

Here are the major elements of the plan, according to the Washington Post:

  • Banks and other lenders would have to reduce the payments to no more than 31 percent of a borrower’s income, which would typically be the amount of unemployment insurance, for three to six months. In some cases, administration officials said, a lender could allow a borrower to skip payments altogether.
  • The government will provide financial incentives to lenders that cut the balance of a borrower’s mortgage. Banks and other lenders will be asked to reduce the principal owed on a loan if the amount is 15 percent more than their home is worth. The reduced amount would be set aside and forgiven by the lender over three years, as long as the homeowner remained current on the loan.
  • The government will double the amount it pays to lenders that help modify second mortgages, such as piggyback loans, which enabled home buyers to put little or no money down, and home equity lines of credit.
  • More incentives will be paid to those lenders that find a way to avoid foreclosing on delinquent borrowers even if they can’t qualify for mortgage relief. For example, the administration is scheduled to launch a program next month encouraging lenders to have borrowers sell their homes for less than the mortgage balance in what is known as a short sale.
  • The FHA will offer incentives to lenders that reduce the amount borrowers owe on their primary mortgages by at least 10 percent.

All of those are much-needed measures, but should be limited. There is a fundamental difference between a family of four living on in a 1,500-square-foot house and a twosome living in a 3,500-square-foot monstrosity. Even if layoffs equalize the two households incomes, the former should simply be given more consideration. The couple in the bigger house has more options — like downsizing.

This proposed measure will provide a little relief, but probably less than will be hyped. A six-month mortgage grace period, in the form of lower payments, may really benefit those who can find a job within six months, but will only delay the inevitable for those who can’t and will cost taxpayers a tidy sum even for those not ultimately helped.

It also would be nice for the government to include a “stupid choices” factor that would disqualify homeowners who can’t make their mortgage payments because they made stupid choices — fancy car debt over a savings account, for example, or a $600,000 house on a $100,000 income.

It is, alas, unlikely that the federal government, which often moves with the grace of a large bulldozer, will make those fine distinctions. And this bailout will cause resentment, too.

CBO on Obama budget

Sunday, March 7th, 2010

Those who say the deficit is nothing to worry about are probably wrong. Maybe we shouldn’t worry today about squashing it today, when we are trying to climb out of a huge recession, but we should worry today about squashing it someday.

The Congressional Budget Office just released its analysis of President Obama’s 2011 budget, and its not totally reassuring.

The deficit would be $1.5 trillion this year and $1.3 trillion next year. There is a bit of good news — if one defines that term very, very loosely — buried in there. The deficit would be 10.3 percent of gross domestic product this year, but then tumble to 8.9% next year. The 2009 deficit was 9.9% of GDP.

Here’s the really scary thing: government debt would increase from 53 percent of GDP last year to 90 percent of GDP in 2020. Interest payments would increase dramatically.

The president also piles up some BS about the costs of the wars in Iraq and Afghanistan, estimating them at $50 billion after next year. CBO instead keeps them at the current $130 billion.

The best news, though, is the president’s health care reform would reduce the deficit by $.2 trillion.

Let’s do it, for reasons related both to ethics and economics.

Obama’s budget, explained

Tuesday, February 9th, 2010

A really nice, non-technical synopsis of President Obama’s budget proposal is available from the National Priorities Project, which also offers a Wisconsin perspective. Obama has proposed freezing discretionary funding, which translates into a $74.8 million, 0r 51%, cut in the state’s Community Development Block Grant allocation for FY11. Much of the reduction likely is due to the expiration of stimulus funding, but with the economy still on the brink and jobs still disappearing, this state and this community is in for a world of hurt unless something changes.

More pain: the state’s share of low-income heating assistance declines $60.5 million,or 47%,  in 2011.