The 4th of Awry

When I grew up in a suburb south of Boston in the Sixties, the Fourth of July was distinctly the greatest day of summer. Preparations would begin well in advance. First, a trip to Chinatown where we’d pay ten times the fair price for a brick of firecrackers and as many cherry bombs or M-80s as we could afford. The night before, one of our gang’s parents would drive us down to the shore to watch the magnificent fireworks displays, while AM car radios would play patriotic tunes like the Star Spangled Banner. I can still smell the gunpowder that would waft in clouds around us. The next night, we’d conjure up our own smaller version in our backyards, occasionally evading the police when our displays raised the neighbors’ ire.

The times were contentious – the Vietnam War had engendered a national divide – but at the peak of our youth the future seemed limitless. We were about to land a man on the moon! The red glare of the Saturn V rocket as it heaved its gargantuan frame into space symbolized to us kids all that was great about America. Freedom was such a powerful force that it could break the bonds of gravity. As a nation, we would not be restrained.

That all seems like dim myth now. Savaged by the financial collapse and the cost of endless wars on the other side of our planet, there is no budget for fireworks here in Southern California, though some towns have lifted the ban on private sales of firecrackers to grab a little extra tax revenue. Our dreams of pressing the boundaries of space have likewise been downsized. Next Friday, the space shuttle will make its last journey, and “after that, there is little glory to look forward to,” the New York Times notes this morning. The universe has receded from our grasp.

Something has gone profoundly awry in America. Our Supreme Court has defined freedom to mean the ability of big corporations to spend unlimited amounts of money in behalf of their private political agendas, while the rest of us wield our personal freedom in obscurity and servitude.  Awash in money from the powerful and wealthy, our elected officials have abandoned the majority of us. We are left to contend with rising health insurance premiums, disappearing jobs, $4.00 a gallon gasoline, a collapse of social services, and the deeply disturbing prospect that we are leaving our kids with fewer options and worse prospects than we enjoyed.

And fear has set in. Around a third or more of all Americans now fear for the basics: their ability to start a family, buy a home, put their kids through college, and retire.  Through the tyranny of greed, we have lost our liberty to make a better future for ourselves. We have been robbed not merely of our savings, but of our personal and national sense of possibility.

We can recover these – we must. But we cannot do so alone. We can no longer hope to be led. We must, ourselves, lead.

Around the Web: Will the Dodd Abide?

The fight for financial reform enters a new stage this week when Sen. Chris Dodd launches his latest version of his proposal. The New York Times highlights the senator’s weak nods in the direction of granting shareholders more power: giving them “advisory” votes on executive pay and the ability to nominate board members.

Dodd’s earlier proposal was considered stronger than the House reform bill, which was strongly supported by consumer advocates and opposed by bankers and the Obama administration. Dodd is a long-time ally of financial and insurance industries who have backed him over the years. But those close ties were undermining him politically after the financial crisis, so he was attempting to forge the appropriate image of a tough politician. Then Dodd dropped out of his tough reelection bid and he began to back off from some of his positions, like support for a strong and independent Consumer Financial Protection Agency. His effort to negotiate a bipartisan bill broke down and now some are reporting that Dodd has returned to some of the tough positions he had advocated. Here’s Calculated Risk’s breakdown of the proposal Dodd is about to unveil. Though it’s hard to imagine the push for financial reform going any slower, that’s what Republicans want, the Washington Post reports.

At the same time, the American Bankers Association meets in Washington this week, Business Week reports. They are ready to battle any attempt at greater consumer financial protections. They’ll defeat it outright if they can, and fight to water it down if they can’t kill it.

Around the Web: Declaring Independence on Consumer Protection

Read Reuters’ economic blogger Felix Salmon’s intriguing takeaway from the weekend’s depressing news that Repubs have rejected even Chris Dodd’s watered-down, weakened version of the financial consumer protection agency. Salmon’s prescription: the Dems should accept whatever the key Republican senators, Richard Shelby and Bob Corker, want. It won’t be that much worse than Dodd’s current “toothless” proposal is now.

Then, consumer advocate Elizabeth Warren should team up with a non-governmental organization like the Center for Responsible Lending and perform the function of a real independent consumer financial protection agency, warning people about particularly bad loans or institutions that are rip-offs, and commending good ones.

Are the Republicans really thwarting the Democrats? Or do Democrats not get anything done by design? Salon’s Glenn Greenwald tells you how and why the Democrats have perfected ineffectiveness and timidity into a high art. Read it and weep.

Meanwhile, the old dinosaur print media isn’t dead yet. New York Times’ columnist Gretchen Morgenstern has a scathing take on the naiveté of Fed chair Ben Bernanke’s takes on Goldman and their Greek default swaps. As for Bernanke’s “quaint” insight that the SEC will probably be interested in looking into the matter, Morgenstern writes: “If the past is prologue we might see a case or two emerge from the inquiry five years from now. The fact is that credit default swaps and other complex derivatives that have proved to be instruments of mass destruction still remain entrenched in our financial system three years after our financial system was almost brought to its knees.”