Who mourns for Dayton?
Posted inPolitics: National

Who mourns for Dayton?

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When I moved to Dayton, Ohio, in 1986, it was the first time I lived in a real city. It was far smaller than Phoenix or San Diego, the then sleepy but populous places I'd been, but it seemed bigger. I lived in a leafy city neighborhood of old houses and took the bus to work. The downtown was a compact mass of skyscrapers held in a bend of the Great Miami River. The newspaper was there, in a lovely old building enchanted by history, with a newspaper bar right next door and a bustling historic domed arcade across the street. Two department stores were a block away. Across the square was the old courthouse where Lincoln had spoken. Nearby, a jazz club.

The economy was robust. The "Rust Belt" was reinventing itself as an innovative superpower and Dayton was no exception. While National Cash Register had shut manufacturing of the old machines — a trauma affecting thousands — it had become a successful global computer giant. Mead, the paper company, was headquartered in a downtown tower and starting a data operation that became LexisNexis. Dayton had the second largest concentration of General Motors employees in the world, and its factories were being retooled and reinvented, often with UAW bosses as leading innovators. Hundreds of suppliers provided well-paid, high-skilled jobs that were as productive as any in the world. The airport hosted an airline passenger hub for the best-run carrier in America, Piedmont, as well as a freight hub for Emery Worldwide. For a kid from the West, this introduction to the Midwest was a heartland epiphany.

Those assets are almost all gone now. And when I wonder why Ohio seems so crazy — how it could have voted for Bush in 2004, if indeed it did; why it fell for Hillary's Wellesley girl Norma Jean routine; why it could now be a tossup for McCain (?!). When I wonder all these things, I think about Dayton.

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Posted inPolitics: National

The mess we’re in

The FDIC, one of those "liberal" "socialist" things foisted on free-market America by Franklin Roosevelt, had to step in Friday to avoid a major bank run. More failures are expected and — dirty little secret — only about $2.5 trillion of the $7 trillion deposited in U.S. banks are actually federally insured.

Seven trillion sounds like a lot. But Americans are in hock to $12 trillion in mortgage debt as housing prices have collapsed, the last big factory of America (making houses) has all but shut down, and foreclosures are reaching records. The Iraq war will cost another $3 trillion. The U.S. national debt is $10 trillion (nearly double from 2001). That ought to tell you something about the mess we’re in.

What’s being little reported about the seizure of IndyMac "Bank" is that the institution is a bastard child of Countrywide, Angelo Mozilo’s death star of subprime calamity (now a boulder around the neck of Bank of America). IndyMac was spun off because it was collatoralizing mortgages too big to be sold to Fannie Mae and Freddie Mac, now on federal life support. The bubble was so huge, fed by so much fraud and bad policy, that the barons had to find "innovative" ways to keep it going.  And all that time, the regulators waved it on. This is the mess we’re in.

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Posted inPolitics: National

Is the ‘nation of whiners’ also a nation of suckers?

Let’s get this straight at the outset: Phil Gramm, President-elect McCain’s chief economics adviser, did not misspeak when he said the only thing wrong now is a "mental recession" and America is a "nation of whiners." The corporate media, to the extent they are covering the story at all, are leading with McCain’s disavowal of Gramm. McCain has said the same kinds of things. He also said Social Security is "an absolute disgrace." This is what Republicans believe. Imagine if Obama had said such things?

While McCain is again showing his fundamental dishonesty, and the media are continuing to cover for him, Gramm unambiguously showed the mindset of today’s Republican Party. "Creative destruction" is their mantra, "free markets" their religion. And if you lived Gramm’s life, you might well wonder, "why are people complaining?" The former senator from Texas championed tax cuts for the wealthy, breaks for corporation and deregulation. He was repaid handsomely, most recently with his ties to the giant bank UBS.

Most Americans have paid a huge price. Median incomes have actually fallen in recent years, millions have lost their health insurance, and most average workers are losing the foundation of the middle class: secure jobs at good wages with benefits and pensions. This was partially concealed by the scam of the housing bubble, and now that’s gone. The Republican leaders, who have become wealthy from tax cuts, outsourcing, union busting and community-destroying mergers say, "stop whining."

But will they pay a price in November? I’m not convinced.

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Posted inPhoenix

Is Phoenix really such a sleepy little Mayberry for news?

Today the Republic changed the online pages that contain the day’s newspaper to the uniform template that Azcentral.com recently adopted. The site looks very quiet now, even compared to some other big Gannett papers. It certainly lacks the production values, much less the substance, that make the Online Wall Street Journal, Washington Post or New York Times such eyeball grabbers (if only online ads paid the same rates as print). Nor is it any competition for such online successes as Huffington Post.

It’s almost as if they are trying not to attract attention. Saying: Nothing to see here. There is a certain numbing repetition to the news cycle in Phoenix: the latest outrages of Sheriff Joe and the Legislature (written with a straight face); traffic and freeway news; illegal immigration; Maryvale crime and the lurid stuff that happens out in the ‘burbs "where this kind of thing just doesn’t happen"; kids left in hot cars; weather stories; did I say freeway and traffic news?; those embarrassing reports on serious local issues that surface from time to time; the well-meaning white papers that will never be implemented; the drearily predictable right-wing voices, lacking in grace or even humor, and an unending vomitus of features, rewritten press releases and boosterism, especially about Glendale!, Chandler!, Gilbert!, and, especially, Scottsdale!! Until lately, there was much "growth" news — the latest sprawl crap to be built. Now it’s foreclosures.

Some members of the staff are still capable of fine work. It’s rare they are allowed to do it. But the truth is, not much happens in Phoenix for a city of such size. By that I mean the level of commerce, decision-making, world connections and newsmaking one would expect from "the nation’s fifth largest city." Reality flows like underground magma: the place is unsustainable. Otherwise, same stuff, day after day. That’s not to say there’s no news agenda to be had.

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Posted inPolitics: National

Jesse Helms, RIP

Former Sen. Jesse Helms died on July 4, and the first inclination might be to ask, "He was still alive?," for he seems so removed from our times. This former television commentator who served 30 years in the Senate, was known mostly for his uncompromising and untelegenic opposition to nearly everything, especially communism and liberalism.

Surely National Review Online, the child of Bill Buckley, would bring some deeper perspectives, or so I thought. He was, the editors wrote, "one of the most consequential conservatives of his generation." They went on:

It is easy to rattle off a long list of what Senator No opposed. First
and foremost was Communism. As a member of the Senate Foreign Relations
Committee, he was an aggressive and outspoken critic of the Soviet
Union. He refused to overlook the evils of Fidel Castro’s regime in
Cuba. During the 1980s, he led efforts to support Nicaragua’s contra
rebels against the Sandinistas and their incipient totalitarianism.

He
was against many other things as well: federal funding of obscene art,
ineffective aid to foreign governments, and the continual encroachments
of Big Government on everyday life. One of the things he was against in
the 1960s was, alas, civil rights. His defense of segregation was of
course deeply misguided. But is it fair for this error to have been
placed in the first sentence of the New York Times’s obituary of him? Certainly liberals have forgiven the pasts of other segregationists, from Sam Ervin to William Fulbright…

One might ask, who in either party was for communism? Also, Ervin and Fulbright went on to do heroic service in saving the Constitution from imperial presidents, and in any case, their early positions on civil rights have been well documented. But Helms was a generation or more younger than these men yet had learned nothing. He became a Republican representing North Carolina and helped turn the white South to the GOP with both subtle and overt calls to racism. He succeeded beautifully. But even here, he would have failed had not Lyndon Johnson championed civil rights, handing the South to the Republicans for, in his formula, "a generation." Or more.

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Posted inPhoenix Politics: National

John McCain, you’re no Barry Goldwater

I’m probably the wrong one to ask for an objective comparison between Barry Goldwater and John McCain. I’ll always love Barry, despite the flaws and misjudgments that were as big as his accomplishments. Attending Kenilworth School in Phoenix — where Barry himself had gone years before — I remember being one of only two kids with the guts to wear Goldwater buttons in 1964. Such was the power of LBJ. But I loved Barry, even at age seven.

Nearly everyone attests to, at best, an arm’s length relationship between the aging Goldwater and the newcomer McCain. John Dean and Barry Goldwater Jr. have a new book that looks at a true "maverick from Arizona." Although McCain brags about being a "Goldwater Republican," younger Goldwater family members are having none of it. Granddaughter Alison Goldwater told the Huffington Post, that Barry felt "deceived" by McCain. She says,  "I’m sure if we were to raise his ashes from the Colorado River…he would be going, ‘What? This is not my vision. This is not my party.’ "

McCain is an opportunist where Barry never was. McCain lands in scandals — from the Keating Five to the latest property tax oops — that Barry never would have contemplated. If McCain has principles aside from orthodox 1990s right-wing politics, with an occasional tilt to please the national press, I can’t find them. Most of all, Barry was an Arizonan. He loved Arizona deeply, personally. Starting as a Phoenix City Councilman, he supported every bond issue to make the city better (his name used to be on the plaque at the old library, simply listed as a city council member). He was a true conservationist.

Yet McCain-as-Goldwater isn’t another campaign distraction. It’s a topic worth debate and contemplation, one that says much about the trajectory of America over the past 45 years.

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Posted inPhoenix

Sustaining denial as the old world collapses

The Arizona Republic spent a week writing articles about "sustainability." This was obviously Gannett top-down: the series was relentlessly "positive," aimed at "the average reader" and ultimately useless. Which is too bad, because reporter Shaun McKinnon is as close to an expert on water issues as you’ll find at major newspapers — when he’s allowed to write on them.

This was followed, equally predictably, by the kind of anodyne editorial the Republic has written hundreds of times before. This one had such deep renderings as:

Sustainability: The word is everywhere. Companies from Wal-Mart to Ford
are trumpeting their commitment to it. There are indexes to measure it,
including a Dow Jones corporate yardstick. Bloggers have seized on it.

And, after gently laying out some challenges, then offering soothing praise for the state:

But more needs to happen on the ground. While Gov. Janet Napolitano,
Phoenix Mayor Phil Gordon and other leaders have certainly supported
sustainability, Arizona still seems in the minor leagues. The efforts
need to be bigger, better, faster.

"Seems"? Here’s what was not covered, as far as I can tell:

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Posted inPolitics: National

On the Second Amendment ruling: unlock, unload

Forgive me if I take a holiday from some of the liberal and progressive hysteria over the Supreme Court’s ruling that the Second Amendment protects an individual’s right to own a firearm. But, then, I am a Westerner and a gun owner.

The Bill of Rights is all about restraining government and specifying some of the rights of individuals (indeed, some of the Framers opposed the Bill of Rights because they feared individual rights would be seen as limited to those amendments). If the Framers intended to discuss state militias, the Bill of Rights seems an odd place to do it. It’s meaningful that the amendment is No. 2 behind that wellspring of recognizing individual rights, the First Amendment. One could see how the Framers said, the people have these rights, and here’s how will they be ensured of protecting them.

Remember, these men rebelled against the most powerful empire in the world, and many believed the people should always have the unalienable right to take up arms against a tyrannical government or leave a voluntary union of sovereign states. The Whiskey Rebellion and, most cataclysmically, the Civil War, settled some of those issues. Others were left to the courts.

Yet the ambiguity of the amendment has long been contested. And extreme measures on both sides brought matters to a head, and make the future even more contentious.

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Posted inUncategorized

Charlotte faces its moment of truth

Around 1996, when I was the business editor of the Charlotte Observer, I provoked the ire of the president of the chamber of commerce — as I so often do with such caudillos — by pointing out an inconvenient truth: the city’s economy was too dependent on two big banks. Charlotte was in the middle of a historic boom that turned a sleepy, mid-sized Southern city into the nation’s second-largest banking center.

An Oz-like skyline shoots up dramatically from the flat treeline of the Carolina Piedmont. Signs of fabulous wealth are everywhere, from the expensive cars on the street to the beautiful people shopping at Dean & Deluca. It’s an amazing testmony to what money can do — to what being positioned at the heart of the capital markets can do. And it’s mostly because of the two money center banks, what are now Bank of America and Wachovia, that are improbably headquartered there.

Then came the subprime and credit crises, partly authored by the smartest people in the room in Charlotte. Now, as the Wall Street Journal put it, "Charlotte is fretting over whether it can remain the last great U.S. banking center outside of New York." It should be fretting over more than that.

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Posted inUncategorized

Speculators and oil prices: an idea running on empty

Some Democrats and even Republicans would have us believe that speculators are to blame for higher gasoline prices. A bill has been introduced to close the so-called Enron loophole that allowed some energy trading on unregulated "dark" markets. That and other "dark market" loopholes should be closed. But the affect on gas prices will be minimal.

Americans have often railed against speculators — the Revolution and Civil War come to mind — and sometimes with good reason. Unfortunately, you can’t have capitalism without speculation. The key is sound regulation. But the idea that speculation is the major cause of higher oil prices is evidence of the magical thinking going on in much of America. It’s deep denial about the real reasons for more expensive oil.

Thus, a war against speculators will be useless at best and could do real harm, both by gumming up the efficient mechanisms of the market — of which speculators are an important part — and distracting us from the real tasks at hand.

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