Running down the press:
What’s better news, especially on the brink of a depression, than reading about the mortification of a Wall Street investment banker? John Marzulli writes:
Joshua Spitz, a vice president at Lehman Brothers, is begging a federal judge to show mercy to his disgraced wife, Magdalena Sanchez, who is facing up to six months in jail for lying to investigators about the illicit sex romps in her office at the Metropolitan Detention Center in Brooklyn.
In a letter to Federal Judge Allyne Ross, he writes that Sanchez “was the perfect picture portrait of an ideal citizen.”
In explaining her “loss of judgment,” Spitz said his wife was grieving over the death of her brother and that he was unavailable to her due to working long hours at the office.
Or maybe Spitz is so forgiving because, like Spitzer, he likes to picture others having sex.
This story is of national importance: The economy’s so bad that even the wives of investment bankers are finally going down.
New Yorker: ‘Let It Rain’
Clever hed, once you start reading Hendrik “Rick” Hertzberg‘s provocative piece about John McCain‘s use of the blood of Christ to try to wash away his previous sinning against the religious right. The mag’s promo helps draw you in:
Don’t blame reporter Brendan Scott for the ludicrous photoshopped Sheldon-Silver-as-Dracula photo accompanying this piece. The Post editors were simply trying to make a feast out of a story that was nothing but a morsel:
NY Observer: ‘Palin and the Charlie Gibson Strategy’
While we wait to see whether Sarah Palin will become either the next vice president of the United States or the next spokeswoman for LensCrafters (see Adweek), Steve Kornacki has an interesting take about the involvement of another lightweight, Charlie Gibson, in this heavyweight decision. Kornacki’s first three (long) grafs:
The ABC newsman, who scored the first of what will surely be scant few major media sit-downs with John McCain’s running mate, could very easily do what a mischievous Boston television reporter did to George W. Bush in 1999 and spring a pop quiz on the unseasoned politician, measuring her knowledge (or lack thereof) of some elementary facts about global hotspots.
There’s no shortage of possible questions that could be asked, and while the ethics and relevancy of playing gotcha would be debated endlessly after the fact, the sight of Mrs. Palin flailing to answer such a basic question — or even providing an incorrect response — would instantly and powerfully drive home to millions of voters the Democrats’ contention that a person who has been governor of Alaska for 20 months (and, before that, mayor of a town with fewer people than the average Arena Football League game attracts) is frighteningly ill-prepared to assume the presidency of the United States.
In a shocking development, the Times conjured up the best headline of the morning — even if it didn’t match the story’s namby-pamby lede. Just think about the above headline. Think about it, as the first thing you see over your morning Diet Coke. But you can’t tell what the hell’s up when you read the lede graf by John F. Burns and Elaine Sciolino:
Huh? Then you read the next two grafs and you understand why there was a seemingly no-news headline when you first spotted it:
The failure to obtain convictions on the plane-bombing charge was a blow to counterterrorism officials in London and Washington, who had described the scheme as potentially the most devastating act of terrorism since the Sept. 11 attacks seven years ago this week. British and American experts had said that the plot had all the signs of an operation by Al Qaeda, and that it was conceived and organized in Pakistan.
Just think: If the Cheney-Bush-Rumsfeld troika hadn’t diverted U.S. troops from Afghanistan in 2002 in order to unjustifiably invade Iraq in 2003 — and if practically all Democrats except now-dead Paul Wellstone hadn’t gone along with that scheme — those troops might very well have captured Osama bin Laden or other Al Qaeda bigwigs who actually did carry out a terror plot involving planes.
Instead, almost exactly seven years after 9/11 we have a headline that banners, “No one convicted!”
I’ll read any story labeled “analysis” that contains the word “ain’t.” Though all this poll talk is generally only news because it leads to self-fulfilling prophecies, Thomas DeFrank does pretty well:
That’s what some breathless Republicans – and even a few jittery Democrats – whispered Monday after new polls showed McCain has vaulted past Barack Obama and leads by as much as 10 points among likely voters.
It’s time to take a very deep breath. The only thing right about conventional wisdom is that every four years, it’s usually wrong. Ask President Henry Clay, President Dewey, President Muskie, President Romney (George, not Mitt) or President Hillary.
Once again, as on yesterday, you’re better off reading McClatchy‘s Kevin G. Hall, because the Times‘s Sheryl Gay Stolberg, pursuing the great-man theory of history-making that’s typical for her paper, ledes with:
First mistake: Future historians might conclude that George W. Bush was smart, or his MBA wouldn’t have been mentioned. As if Bush could even conceive of or carry out a bailout plan, regardless of his business degree.
Then Stolberg again ignores reality by making the Fannie/Freddie bailout seem like another unilateral U.S. move (like the Iraq invasion) by blindly extending her great-man approach of writing instant history:
It was Mr. Paulson who, in that Oval Office meeting, plotted the weekend introduction of the plan so as not to rattle financial markets. And it was Mr. Paulson, not the president, who met with Fannie Mae and Freddie Mac executives on Saturday to deliver the unpleasant news that they were now out of jobs.
Just in case you don’t believe her, she gets confirmation from one of Bush’s flacks:
McClatchy’s Hall gets it right, and the following excerpt (his first five grafs), though necessarily lengthy, should explain who really has clout (hint: it ain’t Paulson):
What he didn’t say publicly is that foreigners, among other big institutional investors, had lost confidence in one of the most vital and plain-vanilla U.S. investments. In a sense, they were losing confidence in the world’s largest economy, and he needed to reverse matters.
“That’s the unstated objective,” said Vincent Reinhart, a former chief economist of the Federal Reserve’s rate-setting Open Market Committee.
That underscores how interdependent U.S. finance has become with the global marketplace. Although they underwrote much of America’s growth in the early 19th century, in more recent times foreigners hadn’t been large holders of U.S. agency debt until about 1999, and the trend grew through much of President Bush’s term in parallel with the nation’s housing boom.
Foreigners hold an estimated 20 percent of Fannie and Freddie debt, commonly called agency debt. Since that debt is backed by U.S. mortgages, keeping foreigners buying this debt is vital if the housing market is to recover.
Note, especially, the last two grafs cited above. If Joseph H. “Joe” Blow had been Treasury secretary, he would have had to take the same step. If the Bush regime hadn’t brainlessly let the economy tumble out of control and thus heedlessly allow foreign governments to continue seizing control of our record-setting debt, we might not be in such a pickle. There goes that great-man theory of history.
Also note that the first person Hall quotes is a real person, not an Administration flack.
The Wall Street Journal, which always works hard to produce realistic business news — its target audience demands the straight scoop on how fellow goniffs are making out — has even more detail that makes Paulson out to be more of just another re-actor than an actor.
After noting that investors’ “relief” (yesterday’s report from the ER) has turned into “cheers” (today’s health news), the paper reports:
Among those expressing concern were Asian investors, including the Chinese, say two people familiar with the matter. Foreign banks’ concerns were among the factors that helped prompt the government’s move on Sunday to take over Fannie and Freddie, these people say.