Finance

Comment of the Day #3 on “Ethics Dunces: The Senate and House Leadership”

/ Jack Marshall / 1 Comment

Come back, Ross! We need your charts!

The third Comment of the Day on this “Comment of the Day Friday” is an epic from Michael, expanding on the theme of my original post.

“I hate the fact that no one is talking facts, only ideology. In such an atmosphere, these selections make sense. The S&P statement said our downgrade was because we failed to tacked long-term indebtedness especially the main drivers of long-term debt: Medicare and SS, but no one really wants to deal with that. To talk facts, you really need some tables, figures, and analysis. I’m not just talking about politicians, here. Isn’t this the reason we tolerate the media? Aren’t they supposed to keep us informed of about things like this so we can then get outraged by such a stupid selection of people to ‘fix’ our problem.

“Why can’t we find a news outlet that will break things down like this?” Continue reading →

Ethics Dunces: The Senate and House Leadership

/ Jack Marshall / 2 Comments

The names are in.

As part of the pathetic, cynical and inadequate budget deal to raise the nation’s debt ceiling, Republicans and Democrats were called upon to assemble a bi-partisan “super committee” of twelve House members and Senators, chosen by the respective leaders from both parties, to come up with a way to close the deficit. Now that the S&P ratings downgrade has embarrassed the nation, destabilized foreign markets and sent an unambiguous message that the United States has to get serious about balancing the books and fast, have our political leaders responded to the challenge by choosing elected representatives of states and districts who have track records of collaboration, political courage, truthtelling and placing the best interests of the nation over narrow electoral fundraising and ideological objectives?

Naaa.

What, are you surprised? The leaders of the House and Senate have met our lowest expectations, and have chosen a hyper-partisan group to make up the super committee, guaranteeing that it will be super-contentious and super-ineffective. The degree to which this represents an abdication of their duties of leadership and responsible government is impossible to exaggerate. Continue reading →

Unethical Quote of the Week: House Minority Leader Nancy Pelosi

/ Jack Marshall / 17 Comments

A symptom and a cause

“You name it, they’re there to diminish it, destroy it.”

—-House Minority Leader Nancy Pelosi (D-Cal.), quoted in the Washington Post today, describing the Republican Party.

If you listen to talk radio, as I, unfortunately, must, you hear statements like Pelosi’s all the time. Conservative talk show host Mark Levin, for example, will say, every day, usually more than once, loudly, that liberals/Democrats/ Obama “want to destroy America.” (Then he plugs his book. Or says, “Just like identity thieves want to destroy your credit!” and does an ad for “Lifelock.”)  It is irresponsible, hateful and ignorant for Levine (and Rush, and Monica Crowley, and lots of others) to make this and similar statements, though in Levine’s case, at least, not insincere, for he clearly believes every bit of it.

These are just talk show hosts, however. They are at least 50% entertainers, and 100% partisans, though they still have ethical duties of honesty, fairness, civility and responsibility which they regularly toss to the winds in the interest of ratings. They don’t meet their profession’s ethical standards, even though those standards are  low.

Pelosi’s are much, much higher, for she is an elected official of the United States of America. Continue reading →

Ethics Dunce, Ethics Hero: Name Calling and One-Way Civility On the Left

/ Jack Marshall / 5 Comments

John Boehner was just like this during debt ceiling negotiations. Well, sort-of. OK, he really wasn't like this at all, but I don't like him, so it's not uncivil for me to say he was.

The popular Democratic, progressive, liberal and news media (I know I’m being redundant here) slur for the Republican House and its Tea Party warriors during and after the budget ceiling debate was “terrorists,” suggesting an analogy between the GOP insisting on major expenditure cuts in the budget as a condition for raising the debt ceiling, and political and religious extremists who threaten to kill people if they don’t get their way. Needless to say, it’s a disgraceful, dishonest, illogical and slanderous comparison. Whether the GOP’s negotiating stance was fair, reasonable or right can be debated; that the intent of the strategy was to strengthen the nation’s financial health is not.

To many of the Republicans involved, incurring more debt without a guarantee of serious deficit and debt reduction in the future was more dangerous than allowing the nation to default on its obligations. Add to that the fact that many in the Tea Party  leadership believe that the consequences of not raising the debt ceiling was overblown, and it is clear: the Republicans were using their control over the immediate fate of something progressives  wanted more than conservatives as a bargaining chip in a political disagreement. It may have been irresponsible; it may have been a risk; it may have been a bluff. But it was not terrorism. It was politics. Hardball politics no doubt, but well within accepted standards

Oh, I forgot: there is another reason the Republicans weren’t acting like terrorists. They weren’t threatening to kill anybody, and they didn’t kill anybody. Continue reading →

“Congratulations! Here’s a Bonus for Doing Such An Outstanding Job Investigating That Fiasco That Happened Because You Screwed-Up In The First Place!”

/ Jack Marshall / 6 Comments

"Iolanthe's" Lord Chancellor has nothing on me: his nightmare* was only "love unrequited." Mine is the SEC.

[  I read about the following outrage before going to bed last night, and vowed to write a post on it in the morning. It literally gave me nightmares and an upset stomach, so disrupting my repose that I gave up and headed to the keyboard. I am writing this at 4:30 AM. I have never written anything at 4:30 AM before, but I have learned something useful for future reference: I’m not in a good mood then.]

And here we have a prime example of why 1) many people don’t trust the Federal government and 2) why they are 100% right to feel this way.

I’ll take “Incompetence, Failure of Accountability and the Appearance of Impropriety” for a thousand, Alex!

SEC  Inspector General H. David Kotz has issued a thorough report on the U.S. Securities and Exchange Commission, revealing that an employee who investigated Bernie Madoff in 2005 and 2006 and failed to notice that he was running a $50 billion Ponzi scheme was later rewarded by the agency with a cash bonus…for his fine work on the Madoff scandal after it was discovered, the lives ruined, the damage done. Continue reading →

A Radical Suggestion to Foster Tax Fairness

/ Jack Marshall / 20 Comments

Maybe it should be more. But it is far from "unfair." That 99%, however...

The interminable and depressing negotiations over raising the debt limit have recently featured unseemly demagoguery from the President about making “millionaires and billionaires” pay their “fair share” in taxes. I have no ideological objection to raising tax rates on the richest Americans and even Americans like me; after all, as Willy Sutton pointed out when explaining why he robbed banks, “that’s where the money is,” and we have to pay our bills somehow. The fairness argument, however, is dishonest, and blatantly unfair.

It is unfair because the richest 1% of Americans pay close to 40% of the total tax revenue. Now, that 1% also have a lot of money, but they use a lot of that money to run businesses, create new products and services and hire employees. Maybe they should pay even more, and maybe they get too many tax breaks. To say that paying 40% of the total tax revenue is something to be ashamed of, however, is dishonest. Continue reading →

We Know Enough about Ethics Already

/ Jack Marshall / 3 Comments

If Shakespeare understood ethics so well, why are we still pretending to be ignorant about it?

I awoke to read about a breathlessly announced new work on ethics, a book called “Blind Spots: Why We Fail to do What’s Right and What to do About it.” Business Professor  Ann Tenbrunsel and co-author Max Bazerman write that we are unaware of the “ethical blind spots” that keep us from recognizing how we engage in unethical actions. The book cites tests and new research showing behavior that the authors call “ethical fading” and “motivated blindness.” They examine such case studies as Enron and the Madoff scam to show how people “believe they will behave ethically in a given situation, but they don’t. Then they believe they behaved ethically when they didn’t. It’s no surprise, then, that most individuals erroneously believe they are more ethical than the majority of their peers.”

Stop the presses! Conflicts of interest make us ignore core values and act in our own best interests, and we rationalize our actions to avoid confronting the true nature of our conduct!

Oops! I just stated the entire thesis of the book. I’m sorry, Ann! Apologies, Max! Continue reading →

Fact Checker Ethics: Alibis For Obama, Part I

/ Jack Marshall / 3 Comments

The Washington Post “Fact Checker,” Glenn Kessler, is among the most biased of the breed. On the issue of the Obama Administration’s outright dishonesty on Social Security, however, he is embarrassing his paper and the entire Fact-Check community.

Lately, his strategy has been to bury obvious dishonesty by the Obama Administration and Democrats regarding Social Security in technical details, excusing straightforward misrepresentation (how’s that for an oxymoron?) and encouraging readers to shrug, give up, and move on

How nice for the President to have political allies posing as objective truth-tellers. Continue reading →

Incompetent Elected Official of the Week: Rep. John Conyers (D-Mich)

/ Jack Marshall / 6 Comments

Is he the dumbest Representative? Let's hope so.This is perhaps the ethical equivalent of shooting fish in a barrel (which, come to think of it, isn’t very ethical), since Rep. Conyers has been displaying his rank incompetence in word and deed for decades (he was first elected in 1964). It was Conyers, after all, who during the health care reform bill debate last year not only admitted that he hadn’t read the bill, but ridiculed the notion that anyone would expect a House member to read such a complex, wide-reaching piece of legislation before voting for it. I might suggest that the Congressman is suffering the mental ravages of age, but  a) that would be age discrimination and 2) he doesn’t deserve an excuse. He’s always been like this.

Conyers is also a powerful and high-ranking member, so his special brand of cluelessness is neither harmless nor cute. It is useful, however, at least to Republicans looking for the perfect example of the proverbial Democratic Congressman who only knows one way to govern: spend as much money as possible in ways that will line the pockets of constituents and thus guarantee re-election. The Republicans would like the public to believe that all Democrats are like this, which isn’t true. The fact that at least one Democrat is like this, however—not only like this, but candid and proud about it—makes the stereotype much more credible.

Here is what Conyers said this week: Continue reading →

Ethics Dunce: Bernie Madoff, Now and Forever

/ Jack Marshall / 48 Comments

Would I rather have Charlie or Bernie on the loose? Tough call...

Bernie Madoff, reports the New York Times, is feeling mistreated.

Two years into his 150 year sentence for defrauding hundreds of investors, destroying dozens of charities, and crushing the financial security of people who trusted him with their future, Madoff thinks it was unfair for Judge Denny Chin, who sentenced him, to make certain that he would die in prison. Accusing Chin of having “zero understanding of the industry”—meaning what, I wonder; that it was normal for the investment industry to set out to ruin people?—-and saying that he was being made a scapegoat while Wall Street firms and government officials “walk away free,” Madoff told reporter Ben Weiser, “Remember, they caused the recession, not me.”

Yes, and the Crusades started the chain of events that led to 9-11, and Teddy Roosevelt’s Asian policies lit the fuse for Pearl Harbor. Continue reading →