Saturday, September 27, 2008

A Leader Speaks

On March 27 at Cooper Union in New York, Barack Obama gave a major address on the economy. Below is a transcript of that speech, with only the introductions edited out...
"Renewing the American Economy’"

In a city of landmarks, we meet at Cooper Union, just uptown from Federal Hall, where George Washington took the oath of office as the first president of the United States. With all history that's passed through the narrow canyons of Lower Manhattan, it's worth taking a moment to reflect on the role that the market has played in the development of the American story.

The great task before our founders was putting into practice the ideal that government could simultaneously serve liberty and advance the common good. For Alexander Hamilton, the young secretary of the treasury, that task was bound to the vigor of the American economy. Hamilton had a strong belief in the power of the market, but he balanced that belief with a conviction that human enterprise, and I quote, "may be beneficially stimulated by prudent aids and encouragements on the part of the government."

Government, he believed, had an important role to play in advancing our common prosperity. So he nationalized the state Revolutionary War debts, weaving together the economies of the states and creating an American system of credit and capital markets. And he encouraged manufacturing and infrastructure, so products could be moved to market.

Hamilton met fierce opposition from Thomas Jefferson, who worried that this brand of capitalism would favor the interests of the few over the many. Jefferson preferred an agrarian economy, because he believed that it would give individual landowners freedom and that this freedom would nurture our democratic institutions.

But despite their differences, there was one thing that Jefferson and Hamilton agreed on: that economic growth depended upon the talent and ingenuity of the American people; that in order to harness that talent, opportunity had to remain open to all; and that through education in particular, every American could climb the ladder of social and economic mobility and achieve the American dream.

In the more than two centuries since then, we've struggled to balance the same forces that confronted Hamilton and Jefferson -- self-interest and community, markets and democracy, the concentration of wealth and power and the necessity of transparency and opportunity for each and every citizen.

Throughout this saga, Americans have pursued their dreams within a free market that has been the engine of America's progress. It's a market that's created a prosperity that is the envy of the world, and opportunity for generations of Americans; a market that has provided great rewards to innovators and risk-takers who've made America a beacon for science and technology and discovery.

But the American experiment has worked in large part because we guided the market's invisible hand with a higher principle. A free market was never meant to be a free license to take whatever you can get, however you can get it. That's why we've put in place rules of the road: to make competition fair and open, and honest. We've done this not to stifle but rather to advance prosperity and liberty.

As I said at Nasdaq last September, the core of our economic success is the fundamental truth that each American does better when all Americans do better; that the well-being of American business, its capital markets and the American people are aligned.

I think that all of us here today would acknowledge that we've lost some of that sense of shared prosperity. Now, this loss has not happened by accident. It's because of decisions made in board rooms, on trading floors and in Washington. Under Republican and Democratic administrations, we've failed to guard against practices that all too often rewarded financial manipulation instead of productivity and sound business practice. We let the special interests put their thumbs on the economic scales.

The result has been a distorted market that creates bubbles instead of steady, sustainable growth; a market that favors Wall Street over Main Street, but ends up hurting both. Nor is this trend new. The concentrations of economic power and the failures of our political system to protect the American economy and American consumers from its worst excesses have been a staple of our past: most famously in the 1920s, when such excesses ultimately plunged the country into the Great Depression.

That is when government stepped in to create a series of regulatory structures, from FDIC to the Glass-Steagall Act, to serve as a corrective, to protect the American people and American business.

Ironically, it was in reaction to the high taxes and some of the outmoded structures of the New Deal that both individuals and institutions in the '80s and '90s began pushing for changes to this regulatory structure. But instead of sensible reform that rewarded success and freed the creative forces of the market, too often we've excused and even embraced an ethic of greed, corner cutting, insider dealing, things that have always threatened the long-term stability of our economic system. Too often we've lost that common stake in each other's prosperity.

Now, let me be clear. The American economy does not stand still and neither should the rules that govern it. The evolution of industries often warrants regulatory reform to foster competition, lower prices or replace outdated oversight structures. Old institutions cannot adequately oversee new practices. Old rules may not fit the roads where our economy is leading.

So there were good arguments for changing the rules of the road in the 1990s. Our economy was undergoing a fundamental shift, carried along by the swift currents of technological change and globalization. For the sake of our common prosperity, we needed to adapt to keep markets competitive and fair.

Unfortunately, instead of establishing a 21st century regulatory framework, we simply dismantled the old one, aided by a legal but corrupt bargain in which campaign money all too often shaped policy and watered down oversight. In doing so we encouraged a winner-take-all, anything-goes environment that helped foster devastating dislocations in our economy. Deregulation of the telecommunications sector, for example, fostered competition, but also contributed to massive over-investment.

Partial deregulation of the electricity sector enabled (inaudible). Companies like Enron and WorldCom took advantage of the new regulatory environment to push the envelope, pump up earnings, disguise losses and otherwise engage in accounting fraud to make their profits look better, a practice that led investors to question the balance sheets of all companies and severely damaged public trust in capital markets.

This was not the invisible hand at work. Instead, it was the hand of industry lobbyists tilting the playing field in Washington as well as an accounting industry that had developed powerful conflicts of interest and a financial sector that had fueled over-investment.

A decade later we have deregulated the financial sector and we face another crisis. A regulatory structure set up for banks in the 1930s needed to change, because the nature of business had changed. But by the time the Glass-Steagall Act was repealed in 1999, the $300 million lobbying effort that drove deregulation was more about facilitating mergers than creating an efficient regulatory framework.

And since then we've overseen 21st century innovation, including the aggressive introduction of new and complex financial instruments like hedge funds and non-bank financial companies, with outdated 20th century regulatory tools. New conflicts of interest recalled the worst excesses of the past, like the outrageous news that we learned just yesterday of KPMG allowing a lender to report profits instead of losses so that both parties could make a quick buck.

Not surprisingly, the regulatory environment failed to keep pace. When subprime mortgage lending took a reckless and unsustainable turn, a patchwork of regulators were unable or unwilling to protect the American people. Now, the policies of the Bush administration threw the economy further out of balance. Tax cuts without end for the wealthiest Americans. A trillion dollar war in Iraq that didn't need to be fought, paid for with deficit spending and borrowing from foreign creditors like China. A complete...


A complete disdain for pay-as-you-go budgeting, coupled with a generally scornful attitude toward oversight and enforcement, allowed far too many to put short-term gain ahead of long-term consequences. The American economy was bound to suffer a painful correction, and policy-makers found themselves with fewer resources to deal with the consequences.

Today those consequences are clear. I see them in every corner of our great country as families face foreclosure and rising costs. I see them in towns across America, where a credit crisis threatens the ability of students to get loans and states can't finance infrastructure projects. I see them here in Manhattan, where one of our biggest investment banks had to be bailed out and the Fed opened its discount window to a host of new institutions with unprecedented implications that we have yet to appreciate. When all is said and done, losses will be in the many hundreds of billions. What was bad for Main Street turned out to be bad for Wall Street. Pain trickled up. And that...


... and that's why -- that's why the principle that I spoke about at NASDAQ last September is even more urgently true today. In our 21st century economy, there is no dividing line between Main Street and Wall Street.

The decisions made in New York's high rises have consequences for Americans across the country. And whether those Americans can make their house payments, whether they keep their jobs or spend confidently without falling into debt, that has consequences for the entire market. The future cannot be shaped by the best-connected lobbyists with the best record of raising money for campaigns. This...


This thinking is wrong for the financial sector and it's wrong for our country. I do not believe the government should stand in the way of innovation or turn back the clock on an older era of regulation. But I do believe that government has a role to play in advancing our common prosperity, by providing stable macroeconomic and financial conditions for sustained growth, by demanding transparency and by ensuring fair competition in the marketplace.

Our history should give us confidence that we don't have to choose between an oppressive government-run economy and a chaotic, unforgiving capitalism. It tells us we can emerge from great economic upheavals stronger, not weaker. But we can only do so if we restore confidence in our markets, only if we rebuild trust between investors and lenders, and only if we renew that common interest between Wall Street and Main Street that is the key to our long-term success.

Now, as most experts agree, our economy is in a recession. To renew our economy and to ensure that we are not doomed to repeat a cycle of bubble and bust again and again and again, we need to address not only the immediate crisis in the housing market, we also need to create a 21st-century regulatory framework and we need to pursue a bold opportunity agenda for the American people.

Most urgently, we have to confront the housing crisis. After months of inaction, the president spoke here in New York and warned against doing too much. His main proposal, extending tax cuts for the wealthiest Americans, is completely divorced from reality, the reality that people are facing around the country.


John McCain recently announced his own plan. And, unfortunately, it amounts to little more than watching this crisis unfold.


While this is consistent with Senator McCain's determination to run for George Bush's third term...



... it won't help families that are suffering and it won't help lift our economy out of recession. Over 2 million households are at risk of foreclosure. Millions more have seen their home values plunge. Many Americans are walking away from their homes, which hurts property values for entire neighborhoods and aggravates the credit crisis. To stabilize the housing market and to help bring the foreclosure crisis to an end, I've sponsored Senator Chris Dodd's legislation creating a new FHA housing security program, which will provide meaningful incentives for lenders to buy or refinance existing mortgages.

This will allow Americans facing foreclosure to keep their homes at rates that they can afford. Now, Senator McCain argues that government should do nothing to protect borrowers and lenders who've made bad decisions or taken on excessive risk.

And on this point I agree. But the Dodd-Frank package is not a bailout for lenders or investors who gambled recklessly; they will take their losses. It's not a windfall for borrowers, as they will have to share any capital gain. Instead, it offers a responsible and fair way to help bring an end to the foreclosure crisis. It asks both sides to sacrifice, while preventing a long-term collapse that could have enormous ramifications for the most responsible lenders and borrowers, as well as the American people as a whole.

That's what Senator McCain ignores. For homeowners who are victims of fraud, I've also proposed a $10 billion foreclosure prevention fund that would help them sell a home that is beyond their means or modify their loan to avoid foreclosure or bankruptcy. It's also time to amend our bankruptcy laws so families aren't forced to stick to the terms of a home loan that was predatory or unfair.


To prevent fraud in the future, I've proposed tough new penalties on fraudulent lenders and a home-score system that will allow consumers to find out more about mortgage offers and whether they'll be able to make payments. To help low- and middle-income families, I proposed a 10 percent mortgage interest tax credit that will allow homeowners who don't itemize their taxes to access incentives for homeownership.

And to expand homeownership, we must do more to help communities turn abandoned properties into affordable housing. The government can't do this alone, nor should it. As I said last September, lenders must get ahead of the curve rather than just react to the crisis. They should actively look at all borrowers, offer workouts and reduce the principal on mortgages in trouble.

Not only can this prevent the larger losses associated with foreclosure and resale, but it can reduce the extent of government intervention and taxpayer exposure. But beyond dealing with the immediate housing crisis, it is time for the federal government to revamp the regulatory framework dealing with our financial markets.


Our capital markets have helped us build the strongest economy in the world. They are the source of competitive advantage for our country.

But they cannot succeed without the public's trust. The details of regulatory reform should be developed through sound analysis and public debate. And so I won't try to cross every "t" and dot every "i" in this speech. But there are several core principles for reform that I intend to pursue as president. First, if you can borrow from the government, you should be subject to government oversight and supervision.


Secretary Paulson admitted this in his remarks yesterday. The Federal Reserve should have basic supervisory authority over any institution to which it may make credit available as a lender of last resort. When the Fed steps in, it is providing lenders an insurance policy underwritten by the American taxpayer. In return, taxpayers have every right to expect that these institutions are not taking excessive risks.

Now, the nature of regulation should depend on the degree and extent of the Fed's exposure. But, at the very least, these new regulations should include liquidity and capital requirements. Second, there needs to be general reform of the requirements to which all regulated financial institutions are subjected. Capital requirements should be strengthened, particularly for complex financial instruments like some of the mortgage securities that led to our current crisis.

We must develop and rigorously manage liquidity risks. We must investigate ratings agencies and potential conflicts of interest with the people that they are rating. And transparency requirements must demand full disclosure by financial institutions to shareholders and counter parties. As we reform our regulatory system at home, we should work with international arrangements, like the Basel Committee on Banking Supervision, the International Accounting Standards Board, and the Financial Stability Forum, to address the same problems abroad.

The goal should be to ensure that financial institutions around the world are subject to similar rules of the road, both to make the system more stable and to keep our financial institutions competitive. Third, we need to streamline a framework of overlapping and competing regulatory agencies.

Reshuffling bureaucracies should not be an end in itself. But the large, complex institutions that dominate the financial landscape don't fit into categories created decades ago. Different institutions compete in multiple markets. Our regulatory system should not pretend otherwise. A streamlined system will provide better oversight and be less costly for regulated institutions.

Fourth, we need to regulate institutions for what they do, not what they are. Over the last few years, commercial banks and thrift institutions were subject to guidelines on subprime mortgages that did not apply to mortgage brokers and companies. Now, it makes no sense for the Fed to tighten mortgage guidelines for banks when two-thirds of subprime mortgages don't originate from banks. This regulatory framework...


This regulatory framework has failed to protect homeowners and it is now clear that it made no sense for our financial system. When it comes to protecting the American people, it should make no difference what kind of institution they are dealing with. Fifth, we must remain vigilant and crack down on trading activity that crosses the line to market manipulation.

On recent days, reports have circulated that some traders may have intentionally spread rumors that Bear Stearns was in financial distress while making market bets against the country. The SEC should investigate and punish this kind of market manipulation and report its conclusions to Congress. Sixth, we need a process that identifies systemic risks to the financial system.

Too often we deal with threats to the financial system that weren't anticipated by regulators. That's why we should create a financial market oversight commission, which would meet regularly and provide advice to the president, Congress and regulators on the state of our financial markets and the risks that face them. These experts' views could help anticipate risks before they erupt into a crisis.

These six principles should guide the legal reforms needed to establish a 21st-century regulatory system, but the changes we need goes beyond the laws and regulation. We need a shift in the cultures of our financial institutions and our regulatory agencies. Financial institutions have to do a better job at managing risk. There is something wrong when board of directors or senior managers don't understand the implications of the risks assumed by their own institutions.

It's time to realign incentives and the compensation packages so that both high-level executives and employees better serve the interests of shareholders. And it's time to confront the risks that come with excessive complexity. Even the best government regulation cannot fully substitute for internal risk management. For supervisory agencies, oversight has to keep pace with innovation. As the subprime crisis unfolded, tough questions about new and complex financial instruments were not asked. As a result, the public interest was not protected.

We do American business and the American people no favors when we turn a blind eye to excessive leverage and dangerous risks. And finally, the American people must be able to trust that their government is looking out for all of us, not just those who donate to political campaigns. I...


I fought in the Senate for the most extensive ethics reforms since Watergate, and we got those passed.


I've refused contributions from federal lobbyists and PACs. I have laid out far-reaching plans that I intend to sign into law as president to bring transparency to government and to end the revolving door between industries and the federal agencies that oversee them.



Once we deal with the immediate crisis in housing and strengthen the regulatory system governing our financial markets, we have to make government responsive once again to all of the American people. And our final task, in fact, is to make sure that opportunity is available to all Americans. You know, the bedrock of our economic success is the American dream. It's a dream shared in big cities and small towns, across races, regions and religions, that, if you work hard, you can support a family; that if you get sick, there will be health care that you can afford; that you can retire...


... that you can retire with the dignity and security and respect that you've earned; and that your children can get a good education and young people can go to college, even if they don't come from a wealthy family. That's our common hope.


That's our common hope across this country. That's the essence of the American dream. But today, for far too many Americans, this dream is slipping away. Wall Street has been recently gripped by gloom over our economic situation. But for many Americans, the economy has effectively been in recession for the past seven years. We have just come through...


We have just come through the first sustained period of economic growth since World War II that was not accompanied by a growth in incomes for typical families. Americans are working harder for less.

Costs are rising, and it's not clear that we'll leave a legacy of opportunity to our children and our grandchildren. And that's why throughout this campaign I've put forward a series of proposals that will foster economic growth from the bottom up and not just from the top down. And that's why the last time I spoke on the economy here in New York, I talked about the need to put the policies of George W. Bush behind us, policies that have essentially said...


... policies that have essentially said to the American people, "You are on your own."

We need policies that once again recognize that we are in this together. And we need the most powerful, the wealthiest among us -- those who are in attendance here today, we need you to get behind that agenda.

It's an agenda that starts with providing a stimulus that will reach the most vulnerable Americans, including immediate relief to areas hardest hit by the housing crisis and a significant extension of unemployment insurance for those who are out of work.


If we can extend a hand to banks on Wall Street when they get into trouble, we can extend a hand to Americans who are struggling, often through no fault of their own.


Beyond these short-term measure, as president, I will be committed to putting the American dream on a firmer footing. To reward work and make retirement secure, we'll provide an income tax (sic) of up to $1,000 for a working family and eliminate income taxes altogether for any retiree bringing in less than $50,000 per year.


To make health care affordable for all Americans, we'll cut costs and provide coverage to all who need it. To put Americans to work, we'll create millions of new green jobs and invest in rebuilding our nation's infrastructure.


To extend opportunity, we'll invest in our schools and our teachers and make college affordable for every American. And to ensure...


And to ensure that America stays on the cutting edge, we'll expand broadband access, expand funding for basic scientific research, and pass comprehensive immigration reform so that we continue to attract the best and the brightest to our shores.


I know that making these changes won't be easy. I will not pretend that this will come without costs, although I have presented ways we can achieve these changes in a fiscally responsible way. I believe in PAYGO. If I start a new program I will pay for it. If I intend to cut taxes for the middle class, then we're going to close some of the tax loopholes for corporations and the wealthy that are not working for shared prosperity.


So we're going to have fiscal discipline. I know that we'll have to overcome our doubts and divisions and the determined opposition of powerful special interests before we can truly advance opportunity and prosperity for all Americans. But I would not be running for president if I did not think that this was a defining moment in our history.

If we fail to overcome our divisions and continue to let special interests set the agenda, then America will fall behind, short-term gains will continue to yield long-term costs, opportunity will slip away on Main Street, and prosperity will suffer here on Wall Street.

But if we unite this country around a common purpose, if we act on the responsibilities that we have to each other and to our country, then we can launch a new era of opportunity and prosperity.

I know we can do this because Americans have done this before. Time and again we've recognized that common stake that we have in each other's success. It's how people as different as Hamilton and Jefferson came together to launch the world's greatest experiment in democracy. That's why our economy hasn't just been the world's greatest wealth creator, it's bound America together, it's created jobs and it's made the dream of opportunity a reality for generations.

Now it falls to us. We have as our inheritance the greatest economy the world has ever known. We have the responsibility to continue the work that began on that spring day over two centuries ago right here in Manhattan, to renew our common purpose for a new century and to write the next chapter in the story of America's success.

We can do this, and we can begin this work today.

Thank you very much.



Friday, September 26, 2008

The First Debate in Real Time

Watching tonight's debate, here are my conclusions:

* Obama has improved his debating style from the primary season. His answers are crisp, direct, and comprehensible.

* McCain appears uncomfortable, a bit inarticulate, and resorting to personal attacks against Obama, and is repeating himself over and over. He can't make eye contact with Obama, which is a sign of personal weakness.

* McCain attempted to exploit the sad news that Sen. Ted Kennedy went to the hospital today after a 911 call. But, Kennedy is already back home, and the trip to the ER is attributed to a mixup in medications.

* Obama's voice is clear and strong. McCain's is weak and faltering.

* Obama still is not conveying enough substance, for my taste, but neither is McCain.

* Obama is making strong points about the Iraq War, cutting into McCain's supposed advantage on national security issues. Obama is actually beating McCain on the war, which is a surprise.

* Wow, Obama is winning the debate over national security and military strategy! This cuts McCain's "advantage" away to nothing.

* McCain is condescending toward Obama. I do not know whether this is working or not. McCain is older, more experienced, and has his true military hero and long-time Senatorial credentials. My guess is that McCain is scoring points with conservatives when he does this.

* How will the so-called "Independents" interpret this debate? McCain appears to be joined at the hip with G.W. Bush, which should not be a good thing. But McCain is doing a credible job of establishing his bona fides on the Afghan-Pakistani issues.

* If anyone thought Obama would not be able to hold his own next to McCain, they were sadly mistaken.

* McCain is still one of the most impressive Republican candidates in my memory. His ability to connect with people on the very emotional issue of a mother losing her son in war is impressive.

* Obama rejoined McCain effectively. They both have bracelets memorializing dead fighters in Iraq. A McCain advantage was neutralized.

* Iran. Wow, this was a turning point. Obama trumped McCain by explaining how the concept of negotiating with Iran will make America (and Israel) safer. McCain countered with a hard-line, right-wing attack, but Obama slam-dunked him by citing Henry Kissinger's agreement that negotiation, without preconditions, is the proper strategy going forward.

* Obama won the debate. McCain blew it. The judgment will be rendered by polls not by me. Maybe McCain will get a bounce, but I doubt it. Obama won the debate.


Wednesday, September 24, 2008

What is Happening Here, Really?

George W. Bush gave a pretty good speech tonight, one that reminded us that he is the first President ever who actually holds an MBA. He deconstructed the current financial crisis in terms that the 95% of Americans who didn't study economics could probably understand. He sounded like a smart doctor with a good grasp of the diagnosis, explaining what has happened and what kind of danger we now are in.

But, what he didn't do convincingly was to suggest a cure. Why? Well, to understand we have to roll back to the days when this President sold his decision to invade Iraq. He essentially said, "Trust me," while exploiting the credibility of his Secretary of State, Colin Powell, among others, that (in the wake of 9/11, lest we forget) Sadaam Hussein had WMDs.

He knew better, but he allowed himself to be propelled ahead, cynically, by a small core of advisers led by one of the most evil men of our time, his own Vice-President. Thus, he squandered the political capital he needs now, when our country faces a real crisis (apparently).

Anyway, this is the context for the skepticism that has greeted the President's bailout plan. We have lots of folk tales to describe this moment, e.g. "The sky is falling!"

Perhaps the sky is falling, and not just on the heads of those greedy, arrogant Wall Street traders who for so long have acted as if they are better than all of the rest of us, here in Middle America, struggling to pay our monthly bills.

But, if so, my guess is that ordinary Americans will reject this Bush plan anyway. The President simply is not trusted by anyone any longer; sadly, even when he perhaps should be.


How Bad Will It Get?

So, the Treasury Department and the Federal Reserve Bank are freaked out. They see the U.S. financial system, interlocked as it is with every other economy in the world, as teetering on the verge of a depression, the likes of which we have never seen before.

To stave off this fate, they want to bail out the Wall Street firms at the center of the storm. They want around $800 billion. Where would they get it? The Fed just has it printed, that's where.

Hoping for a fast, bipartisan coalition to approve their plan, the Bush administration officials instead have run into a bipartisan coalition opposing it. Both Democrats and Republicans have questions for the officials that they cannot answer.

Adding to the pressure; it's an election year. Accordingly, all other issues have faded -- the weakness of the economy and what to do about it is the only political issue that matters right now.

This couldn't have been scripted better. The trouble is that it isn't a movie. And it won't necessarily have a happy ending...


Tuesday, September 23, 2008

Obama Back on Top

The polls have swung back to the Democratic ticket. The average of the polls have Obama up by 3 points now. The electoral votes still look to be extremely close. On Yahoo's election site, if you do all of the math, it is a 269-269 dead heat. The RCP average has Obama winning it, 273-265. CNN is the most cautious, saying that Obama is ahead 223-200, with 115 electoral votes still in play.

What to make of all of this? Not much. It's still early. The first debate is this Friday. That may make a difference. The biggest factor by far is the economic meltdown, which appears to be developing into a much worse and long-term recession than was even imaginable a few months ago.

Signs of panic abound. People are withdrawing their savings from banks, and stashing cash under their beds. Major firms are teetering on the verge of collapse. Unfortunately, for John McCain, his legislative track record reveals he is perhaps the political leader most directly responsible for the fatal deregulation decisions that have yielded this financial catastrophe.

As voters come to understand this, his chances to win the White House are likely to fade.

But, anything can happen in a political race, especially one so closely contested.


Today, Sarah Palin banned the press from covering her meetings with foreign leaders at the U.N. This is one of the darkest days in American democracy. We have a candidate who is pandering to the worst impulses of the most ignorant segment of our population. She blames the press for her problems!

Hello? Who in the press impregnated her daughter? Who in the press advised her to abuse her power as governor in the simmering Troopergate scandal? Who in the press is responsible for all the basic things about our world that she most obviously does not comprehend?

Even if I thought McCain was a legitimate candidate for President. which I do not, I could never support someone who picked a demagogic fool for his running mate. If this is an example of McCain's judgment, we will pass, thank you.

For the good of our nation, let's all hope and pray that Obama-Biden will prevail in November. Then we can get down to the hard work of reversing this economic decline, getting out of Iraq, where we never should have been in the first place, and joining the world community in fighting climate change before it destroys us all.

Nothing less than the future of our children and grandchildren is at stake on November 4th. I ask all of my friends and relatives to boycott the election unless you can do the right thing, which of course is to vote for Barack Obama as President. Let go of your prejudice, let go of yor fear, let go of your suspicion.

Embrace hope that we can all evolve into a better people and that our descendants will have the chance to live life more or less as we have known it, as opposed to what is happening to polar bears, facing extinction, and now resorting to cannibalism. As crazy as it sounds, that could be our own fate, as humans, within a century, if we do not find the courage to embrace leadership that will stop our inexorable march toward extinction and reverse the death march that is inevitable if voters choose the GOP's agenda of know-nothingness.


Monday, September 22, 2008

It's Fall & We're Falling

As the sun slips down behind Twin Peaks to my West, it's painfully obvious that those long, sensual summer nights are coming to a close. On the other hand, with seasonally adjusted weak breezes and very little fog, our September nights are warm enough for one to sit in the backyard in a T-shirt and feel comfortably warm.

Yesterday morning, I took an hour-long walk through this end of town. Just around the corner, a very large red-tailed hawk broke out of one small tree to fly into another. That is something I've never seen before.

The evangelistas were out in force, of course. This is a Latino neighborhood, and gaggles of nicely dressed men and women are always walking the streets on weekends, hoping to convert the sinners among us. I do not mind these pious folk, as long as they leave and my family alone. We do not choose to participate in religious activities of any sort, as is our Constitutional right.

The separation of church and state is probably the most important principle of American democracy. Whatever you may or may not believe, understand this much -- your faith has no place in our politics. Forget your views on abortion, gay marriage, or sex education. These are your business, no our business.

It is virtually unimaginable that in 2008 we still have a large bloc of ignorant voters who believe these private, spiritual matters are what the rest of us should use to evaluate candidates, but there you have it.

The Dark Ages are threatening to return, in this regard. The Age of Ignorance, despite all of our knowledge. This country has slipped backward, and now is teetering on a precipice that, should we fall, will seal our fate as a civilization.

I do not want to offend anyone, but here is what I think: Forget "God," consider your fellow men and women. If you do so, the right person will be the next President of the U.S. and his first name will not be John.


Sunday, September 21, 2008

The One "R" in This Election

It's the ugliest word in the English language, describing a trait none of us want to admit to. Yet, for white people growing up in the U.S. the past half-century+, as well as all times that went before, it is an inevitability.


Because the worst thing about racism is how badly everyone turns out.

Not just whites, but blacks. How many of us have witnessed the terrible behavior of some of the young black men among us?

I have. Most of my most cherished possessions were stolen by a black man, who broke into my van parked outside the SunDance office one night soon after we moved to San Francisco.

My friend was picked up by several black men and raped in their van.

On it goes. I could tell you horror story after horror story. The problem is what conclusion we draw from these experiences. Is it race that causes these problems?

Let me suggest a way to think about such things. If you are born into a privileged group, as every white American is, you can be forgiven for overlooking your advantages. Why? Because the life of the average working class or "middle class" white American is a life of constant stress.

You work hard, you try to keep your job, you pay your taxes, you don't break the law. Meanwhile, all around you, are the detritus of our former slave-holding society. Black people on the poor side of town, in rundown houses, old cars, and actively pursuing lifestyles based on drugs, prostitution, violence, and anger.

The music that emerges from thees communities is scary, to white ears -- rap, hip-hop, the violent poetry of the street. It all makes a decent, church-going, white person shrink away with disgust.

So that is our America. And this is the political price for our reality:

Poll: Racial views steer some white Dems away from Obama
By RON FOURNIER and TREVOR TOMPSON, Associated Press Writers

WASHINGTON (AP) — Deep-seated racial misgivings could cost Barack Obama the White House if the election is close, according to an AP-Yahoo News poll that found one-third of white Democrats harbor negative views toward blacks — many calling them "lazy," "violent," responsible for their own troubles.

The poll, conducted with Stanford University, suggests that the percentage of voters who may turn away from Obama because of his race could easily be larger than the final difference between the candidates in 2004 — about two and one-half percentage points.

I ask all of my white relatives and friends to look deeply into your hearts, and make sure you are not voting the "r" card in this election, because if you are, you must realize that you are perpetuating the ugliest thing about America. It is time to move beyond our weak parts, our awful past, our internalized hatreds. Barack Obama is not the kind of dangerous black man you fear; he is a decent, hard-working human being, a family man, an intelligent leader who just happens to be half-African.

For whites, he is a gift from heaven. If he becomes our President, the doors will finally open throughout this society for those who once were in chains, and we all can shed the awful burdens of our collective past. This will actually feel better to white people than any others. Finally, we too will be free, as in the words of the great gospel, "Amazing Grace." And our black brothers and sisters will have to clean up the parts of their acts that so disgust all of the rest of us.

Thus, my plea, for the good of all of us, is to vote for him this year, this time, in this place. We may never again get a chance to put our fetid past behind us. And I, for one, am sick of witnessing the ugly outcomes in the poor side of town. I want to live to see the day that Martin Luther King, Jr.*, envisioned, the day when the color of our skin does not determine our fate.

We, as a people, must be better than that.


* (In the words of the old Negro spiritual, we will be "free at last, free at last, thank God Almighty, we are free at last.")