Spitting on a Gift Horse.

They’re not accustomed to being engaged in politics this way,” says a private-equity investor. ‘Their skin isn’t toughened. They actually take [the attacks by Obama] personally. This is a profession with a lot of smart people, but who aren’t necessarily terribly introspective. They think they actually deserve to make all this money. So any attack on their livelihood is, ahem, unpleasant.’

In the wake of the Senate’s 59-39 passage of financial reform last week (not to mention increasing evidence of rampant and pervasive fraud at Goldman, Morgan, and elsewhere), New York‘s John Heilemann surveys the bruised egos of Wall Street’s would-be robber barons. (In very related news, Paul Krugman and the WP note that Wall Street is now betting heavily on the GOP again.)

Keep in mind: Wall Street is angry with the administration despite the fact that “Geithner’s team spent much of its time during the debate over the Senate bill helping…kill off or modify amendments being offered by more-progressive Democrats.” [Change we can believe in!] Heilemann writes: “Whatever the effects of the bill, among them will be neither an end to the too-big-too-fail doctrine nor any curb on what the sharpest Wall Streeters see as the central threat to the system’s stability: excessive financial leverage. Geithner, Summers, and Obama had little interest in tackling those matters, not because they are indentured servants to Wall Street but because at heart they are all technocrats who believe the system doesn’t need to be rebooted or downsized, merely better supervised.

Still, on the bright side and despite the ambivalence (or open opposition) from folks in high places, this bill did get significantly stronger on the Senate floor, and in some ways is now stronger than the House version passed last year. Let’s hope this welcome progressive trend continues in conference.

The Ballad of Casino Jack.

The festival was over and the boys were all planning for a fall.
The cabaret was quiet except for the drilling in the wall.
The curfew had been lifted and the gambling wheel shut down.
Anyone with any sense had already left town.
He was standing in the doorway looking like the Jack of Hearts.


Thanks, Bob, I got it from here. As the links above attest, the sordid dealings of “Casino Jack” Abramoff and his GOP associates — most notably Tom DeLay and Bob Ney — made for solid blog fodder here at GitM for several years. So, between that and my current place of work, I probably had more interest than most in Alex Gibney’s Casino Jack and the United States of Money, a documentary recounting Abramoff’s rise-and-fall. And…well, it’s not bad. But, unfortunately, it’s not great either. And in terms of making the points he wants to make, I don’t get the sense Gibney really stuck the landing.

Part of the problem is Casino Jack is a maddeningly mercurial sort — and unlike the recently-released Ney, the soon to trial DeLay, chastened aide Neil Volz, and others, he and “Gimme Five” kickback co-conspirator Michael Scanlon choose not to go on the record here. So, right away, there is a cipher at the center of this ostensibly biographical story. And even more problematic for the film’s narrative and structure: Casino Jack had his fingers in a lot of pies, and if there was any way to game the political system somehow to make money, he was on the case. In short, this is one long, twisted, and convoluted story.

And thus, Gibney is left with the ungainly task of trying to explain how Abramoff turned Northern Marianas sweatshops into a bribe farm for GOP congressmen, and how his shady, playing-both-sides kickback operation gamed Native American casinos. Not to mention how his phantom think-tank on the Delaware coast was in fact a money-laundering outfit. Or how the seemingly Mob-connected takeover of a fleet of Suncruz casino ships — and the murder of its former owner — went down. And, amidst all this, how Abramoff managed to move up the GOP food chain by throwing his money around, and was depressingly successful at it. This is all not even withstanding weird tangents like Red Scorpion. So, while Gibney does an admirable job explaining the details of these various operations, he has to jump through so many hoops to get it all down that the Big Picture often gets lost.

I’m probably being a little too hard on this doc, if only because I went in with very high expectations. I was hoping Casino Jack would be more of a concise and devastating prosecutorial brief about the plague of unfettered money in politics, but it’s more broad and meandering than that. (And, to be fair, whenever you take a subject this broad, there will be some meandering — See also Why We Fight.) Still, as I said, even if the high-level connections aren’t quite nailed down, Gibney does a good job of nailing the specifics of each particular grift — the sweatshops and casinos and whatnot. And, coming across with the nerdy charm of a more buttoned-down, politically-minded version of R.E.M.’s Mike Mills, author and ex-Republican Thomas Frank (The Wrecking Crew, What’s the Matter with Kansas) is an appealing interviewee throughout, and he enlivens the discussion considerably.

Speaking of Frank’s ex-GOP years: If you already knew the contours of this Abramoff story (and I suspect most of the people who bother to see this film will), perhaps the most interesting part of Casino Jack is the first half-hour, which chronicles the old College Republican days of friends Abramoff, Grover Norquist, and Ralph Reed. And from Reed’s penchant for outlandish stunts at campus protests, to Norquist’s unabashed admiration for Leninist tactics, to Abramoff et al’s abortive attempt to engage the Third World in their free-market fundie ways, it’s seem as if the young Reagan Right of the ’80s were mainly just a cracked-funhouse-mirror version of the ’60’s New Left they so despise. (This is also in keeping with what you might expect from books like Rick Perlstein’s Before the Storm, about the ’64 Goldwater campaign.)

Still, as we move into the present day and these young conservatives fan out into the political system, Casino Jack and the United States of Money unfortunately gets its overarching message muddled. Is this movie about the former (Abramoff) or the latter (the U.S.M.)? Is Casino Jack a uniquely well-connected criminal mastermind, or, worse, the clearest expression of a political system overwhelmed by cold, hard cash? It’s true the answer to this question may just be “yes,” but the documentary can’t seem to decide at times if it wants to skewer Abramoff (and, by extension, his “unindicted co-conspirators”) or catch bigger game — the whole rotten system — and as a result, both sorta end up writhing off the hook.

At one point, Casino Jack gets caught up recounting the exceptionally douchey e-mail traffic between Abramoff and Scanlon, which is fun and all. (The best laugh in the movie is when the beach bum lifeguard running their Delaware front operation turns out to be savvier than these two would-be Masters of the Universe: “Uh, you’ve been putting this all in e-mails?”) But, even as we delve into these sordid details, the scarier implications of the Abramoff story feel shortchanged — that not only does this pay-to-play stuff seem business as usual for the Dubya White House and DeLay ring, but worse, that this monied corruption festering at the heart of our republic is both legal and even institutionalized.

And so, when the Citizens United fiasco comes up at the end, it unfortunately feels like a bit of a non-sequitur, rather than the sad culmination of the story we’ve been told for two hours. Casino Jack and the United States of Money is an able attempt at muckraking, but, to my mind, it fails to capture the true horror unfolding here: Jack Abramoff may be languishing in prison right now, and for many, many good reasons. But the mess of a system he thrived in is still right here with us — and if anything, after Citizens United, it might soon be getting worse.

The Government We Paid For.

“‘This is the earliest that the Center has ever offered an estimate,’ Krumholz said. ‘As election observers across the political spectrum work to assess the impact of Citizens United, this prediction offers a solid baseline to compare new spending levels against.'” Before even taking the torrents of campaign cash expected in the wake of the Citizens United decision into consideration, the Center of Responsive Politics estimates that the 2010 midterms will cost over $3.7 billion. (FWIW, the year 2006 clocked in at $2.85 billion.) Sigh…fasten your seat belts — It’s going to be a bumpy ride.

“I’m a Scorpion, It’s My Nature.”

From the California Nurses Assoc., the largest nurses union in the country: ‘Our legislators should respond to this bullying and stop coddling a useless industry whose sole function is to make enormous profits from the pain and suffering of patients while providing little in return.’ From the AARP: The AHIP report is not ‘worth the paper it’s written on.'”

Wow, who saw this coming? The insurance industry turns against health care reform — even the middling Senate Finance Committee version put forth by Max Baucus — by publishing an obviously bogus report that prophesies of impending rate-increase doomsday should reform pass. Hmm, well. I’m just gonna throw this out here, but I think it can be reasonably assumed from the start that any industry making money hand-over-fist from a broken system would eventually turn against meaningful reform of that system. So, maybe next time we shouldn’t give away the store to keep these swine at the negotiating table? Just a thought.

Anyway, the insurance industry isnt the only strange bedfellow (inadvertently) making the case for the public option of late. Both Bill O’Reilly and FOX’s Shepard Smith have made impassioned pleas for the public option recently. And — though they’ve been backpedaling like mad ever since — both Bill Frist and Bob Dole have called out their party for desperate and heedless obstructionism in recent days. So, even though we’ve taken the long way to get here for no particularly good reason, I feel confident right now that the public option is very much back in play.

Outrage, Bought and Paid for.

“The two primary groups — Americans for Prosperity and FreedomWorks — actually grew out of the 2003 breakup of an outfit called Citizens for a Sound Economy that had been integral in the fight against Hillarycare. Indeed, the same ‘Tobacco Strategy’ memo in which Philip Morris boasts of shaping McCaughey’s writings also reveals that the tobacco giant paid Citizens for a Sound Economy to engineer a “grassroots” revolt against health care reform by staging demonstrations in the home districts of key congressmen.

In Rolling Stone, Tim Dickinson follows the money to expose the Republicans’ recent astro-turfing campaign against health care reform. In short, it’s the “Brooks Brothers Riot” all over again. In fact, “Americans for Prosperity, which has taken the lead in the current fight against reform, is a front group for oil billionaires David and Charles Koch, co-owners of the world’s largest private oil and gas conglomerate…Matt Schlapp, one of the original ‘Brooks Brothers rioters’…now serves as director of federal affairs for Koch Industries, orchestrating the firm’s political efforts in Washington.

The Trouble With Bazookas.

“The congressional legislation intended to defund ACORN, passed with broad bipartisan support, is written so broadly that it applies to ‘any organization’ that has been charged with breaking federal or state election laws, lobbying disclosure laws, campaign finance laws or filing fraudulent paperwork with any federal or state agency. It also applies to any of the employees, contractors or other folks affiliated with a group charged with any of those things. In other words, the bill could plausibly defund the entire military-industrial complex. Whoops.

D’oh! As it turns out, the GOP’s ridiculous act of political gamesmanship last week may well cause some severe blowback for government-as-usual in Washington. “Rep. Alan Grayson (D-Fla.) picked up on the legislative overreach and asked the Project on Government Oversight (POGO) to sift through its database to find which contractors might be caught in the ACORN net. Lockheed Martin and Northrop Grumman both popped up quickly, with 20 fraud cases between them, and the longer list is a Who’s Who of weapons manufacturers and defense contractors.

What this probably means is that the ACORN ban will be found unconstitutional sooner rather than later. After all, the spice must flow.

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.

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.

Where’s Waldo (the Lobbyist)?

“When 22 senators started working over the first health care overhaul bill on June 17, the news cameras were pointed at them — except for NPR’s photographer, who turned his lens on the lobbyists. Whatever bill emerges from Congress will affect one-sixth of the economy, and stakeholders have mobilized. We’ve begun to identify some of the faces in the hearing room, and we want to keep the process going.” Clever, clever: Also on the health care front, an NPR photographer initiates a game of find-the-health-care-lobbyist. “Know someone in these photos? Let us know who that someone is.

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.