Radical Avenue

In the Laurel and Hardy movies of the 1930s, Oliver Hardy often attempted to blame his cohort and fellow nincompoop Stan Laurel for all of their foul ups with this classic line: “Well Stanley, this is another fine mess you’ve gotten us into.” When left to their own devices, Laurel and Hardy were good at making messes, not so good at cleaning them up.

A bunch of mortgage financiers here in the US have apparently learned something from the masters of farce. The adjustable rate mortgages and credit default swaps they’ve been foisting on their unsuspecting customers are straight out of the Laurel and Hardy playbook.

The mortgage industry doesn’t regulate itself well. Lending institutions need help from the public to identify standards which will allow them to operate successfully in good times and avoid massive government bailouts during recessionary periods. Anything goes doesn’t cut it anymore.

Exotic repayment terms won’t transform a person who can’t afford a home into a worthy credit risk. The old fashioned 10% down, excellent credit rating and proof of income requirements for home loan applicants worked much better for the health of our communities.

Fixed rate loans give homeowners terms which they can understand and plan for. Adjustable interest rates might work with credit cards and small unsecured loans, but average homeowners can’t keep up with monthly mortgage payments that increase by a third or more in less than a year.

Now that Congress has finished debating the economic stimulus package, perhaps they can decide on how to regulate the home mortgage industry more effectively going forward. That wouldn’t cost taxpayers a dime.

Hold those pink slips! The California legislature has finally passed a budget in the same way that anxious people pass kidney stones – painfully. Now state offices can stay open, at least for another week or two.

I guess keeping the Senate in session around the clock for three days in a row finally did the trick. That sort of thing annoys staffers, who can’t go home until all the paperwork is done. There must have been more than a few mutinies plotted in the capitol corridors over the past few weeks.

Going forward, the legislature should plan on pulling a few more allnighters. Lock a bunch of antagonistic people in a room together and see who cracks. You have to figure one or two politicians would sign anything just to get away.

Of course nobody likes the new budget. It raises taxes, cuts spending on education and puts the state further into debt. In other words, it’s business as usual in California.

Who left all the No Haggling signs up on Capital Hill? I guess Senators Snowe, Collins and Specter still deal with the Democrats on economic stimulus legislation because there are no Republicans left in New England who care enough to complain about it.

Zero Sum Games
Two dimensional politics no longer suits our three dimensional world. When Democrats and Republicans can’t settle their differences, neither side has anyone else to negotiate with. Every issue becomes part of an ongoing attempt to portray the other side as dangerously out of touch with the American people.

Lately Democrats and Republicans see themselves more as political opponents in a never ending sporting event, rather than as lawmaking partners. Under these circumstances, compromise is portrayed as capitulation. Most disagreements end up in a stalemate.

Rigged Voting Districts
The two parties currently in power do work closely together to deprive other political organizations of adequate legislative representation. At least once every ten years, voting districts are carefully drawn to maintain the status quo. We end up with an overwhelming number of uncompetitive elections, where incumbents are assured of re-election for as long as they continue to run for office.

All of these rigged elections turn citizens off. People don’t believe that their vote counts. Voter apathy then plays right into the hands of the incumbents, who dominate low turnout elections. John Dingell has represented his Michigan district since the Eisenhower administration.

Politicians who have no concerns about getting re-elected have no incentive to respond to the needs of their constituents, so they refuse to compromise on any legislation. Cronyism rules the day. The whole country loses when lawmakers get too comfortable in their seats.

Just say no. The Federal Treasury already smells like a dumping ground. Four months ago the US government gave an outrageous amount of cash to the reckless leaders of failed institutions. That investment was wasted. Throwing money at wolves won’t save the livestock.

Fools Get Fooled Again
Wall Street didn’t care for Treasury Secretary Timothy Geithner’s proposal to spend $2 trillion in public funds to fix the tanking economy. The Dow Jones industrial average immediately dropped 5 percent. Perhaps Secretary Geithner should have offered up his proposals on a golden platter.

When the legislature spends money on roads, bridges and infrastructure, at least taxpayers can see a tangible return on their investment. Money handed over to insolvent banks just disappears into thin air. Funny how that works…

Keeping the Mint Busy
Apparently, the government still has plenty of good jobs available. Foreclosures need to be processed. The bankruptcy courts are hiring. I understand that the US Mint just received an order to print up another trillion dollars or so. Better get a few extra bodies for the late shift.

Hospitals have undergone a radical makeover for the 21st century. Mausoleum like interiors and fluorescent bulbs are out. Indoor foliage and skylights are in. Patients can feel the difference.

Alabama
The new Children’s hospital in Birmingham will be the first care facility in Alabama to receive a LEED certification, awarded by the U.S. Green Buildings Council. LEED stands for Leadership in Energy and Environmental Design.

The hospital is designed to maximize the use of natural light. A green roof will provide insulation and capture storm water runoff. Construction waste will be recycled. All of these innovations save money on maintenance costs while improving health care for kids in the state.

Massachusetts
In Massachusetts, public health officials hope to promote healing by enhancing hospital air quality. The use of non toxic building materials, safe cleaning products and fresh air ventilation systems all help.

Environmentally friendly hospitals are a boon to local communities. These buildings use less energy and release fewer pollutants into the air and water. Older facilities can’t compete.

All signs point to a big victory for Prime Minister Nouri al-Maliki’s Dawa party in Iraq’s provincial elections. Dawa enjoyed strong support in Basra, Baghdad and towns along the Tigris river.

Peace and Participation
Not all provinces voted, and many Kurds living in northern Iraq would rather declare their independence. However participation in al-Anbar province was high and the overall level of violence was low. These developments must encourage Iraqi voters. They are creating a vibrant post-Saddam democracy in a diverse, complicated country.

Blackwater Out
Prime Minister al-Maliki undoubtedly benefited from the sharp decrease in bombings and assassinations in Iraq over the past few months. But he also exercised sound political judgment by not renewing the operating license of Blackwater Worldwide. Blackwater Worldwide is currently providing security for US and Iraqi public officials.

Cutting Blackwater loose demonstrates to Iraqis that their prime minister is willing to act independently of the US when it comes to the security of Iraq.

Blackwater’s exit also helps the US cause. It shows that we are on our way out and that representatives of our country in Iraq will be subject to US laws and the US military code of conduct.