Budget/Fiscal

The effectiveness of Davis’ effort at the recent Capitol-to-Capitol event will not be known for some time.  Early reports are promising, however, that Davis, long considered a sleeping giant in the region because of its proximity to UC Davis and its access to world class scholars and a highly-skilled workforce, has gotten the attention of many, both in the region and in Washington.

One leader clearly paying attention to these developments is Congressman John Garamendi, who not only praised the efforts of Davis, but continues to promote them.

Representative John Garamendi last week reintroduced his Make It In America: Create Clean Energy Manufacturing Jobs in America Act, H.R. 1524.  The legislation would require that clean energy goods and equipment used in projects purchased or paid for by federal taxpayer dollars contain 85 percent American-made content.

The legislation represents another major proposal that invests in high tech and clean energy technology, to boost the economy while helping the environment.  The bill sets a three-year phase-in schedule for the policy, with American content requirements set at 50 percent in the first fiscal year after enactment, and 60 percent in the second.

Late last night,or technically early this morning in Washington, the Senate, after intense last minute negotiations between Vice President Joe Biden and Senate Minority Leader Mitch McConnell, emerged with a compromise that passed a reluctant Senate by an 89-8 margin.

The news that leaked out this morning is that Senate Republican Leader Mitch McConnell and Vice President Joe Biden made significant progress toward perhaps a deal that would prevent the so-called fiscal cliff.

While Dozens Were Arrested for Trespassing, No Violence is Reported

While thousands of protesters and demonstrators gathered around the Capitol on Monday, a small group stayed inside of the building and achieved their goal of getting arrested.  About 68 arrests occurred when the protesters refused to exit the building at the close of business hours.

But spokespeople for law enforcement called the day a success, as there was no violence, no tear gas, no batons.

Today, thousands of students and workers will converge on the Capitol in Sacramento, where students and others will call for the one percent to pay to re-fund higher education.  The day is about building on the victories of the fall and holding off future tuition increases in the UC system.

By E. Roberts Musser

The Justice Department just announced a $335 billion settlement with Countrywide Financial, now part of Bank of America.  It is the largest fair lending suit ever, and includes allegations that qualified black and Hispanic borrowers were systematically discriminated against.  Supposedly these folks were charged higher fees and interest rates than other borrowers in retail and wholesale lending. This is a practice known as “reverse redlining”.  The higher fees charged were based not on creditworthiness, but on the person’s race or national origin.

These homeowners were steered into much riskier subprime loans (option pay adjustable rate mortgages), even though they qualified for prime loans (fixed rate mortgages).  U.S. Assistant Attorney General Thomas Perez of the Civil Rights Division strongly criticized the practice by saying, “[The banks] understood marketing.  They understood how to build trust… This is discrimination with a smile.”  However, Perez conceded that the settlement was more about the principle than the money, since effected homeowners stand to only receive somewhere between several hundred to several thousand dollars each.  The legal community is particularly critical of the settlement, noting it is an “agreement in principle”, but not in any way a final agreement.  Critics believe the announcement of the settlement was nothing more than acceding to the Administration’s wish to build on its State of the Union PR.  More importantly, the settlement would give up any bargaining leverage the state Attorneys General have over how this deal turns out.

Yolo County Will Get 74.6 Million Under the Terms of the Agreement

It was a landmark decision that will see California homeowners receive compensation for the mortgage meltdown.  Attorney General Kamala Harris had rejected an earlier agreement that would have given inadequate relief to homeowners.

California’s Attorney General announced on Thursday what she called “an historic commitment to California of up to 18 billion dollars that will benefit hundreds of thousands of homeowners in the state hardest hit by the mortgage crisis.”

For a number of years, I would get up early with my father and brother-in-law, and trek to the local Staples in San Luis Obispo on the Friday after Thanksgiving, hoping to time it just right so that we arrived right around 6 am at the store’s opening and hoping that we would snatch up some deal.

Among my biggest pet peeves in politics are those politicians who argue that we need to run government like a business.  I understand the sentiment and the desire to be fiscally prudent, but at the same time, government is not a business.

Sacramento City Manager Contract Shows Us Business As Usual Continues –

The numbers were stunning.  And they come as a stark reminder that business as usual is not over, that the arms race top to bottom has not been thwarted by the economic downturn nearly as much as we would like to believe.  That even as Wall Street and, indeed, Washington sway under the pressure of a potential new downturn, the message has not been reached on Main Street any more than it has on Wall Street.

I really dislike writing about national politics, as it is too polarizing and tends to induce meaningless partisan debate.  Sometimes though, you just cannot avoid it, and this week really is about the national calamity that faces this nation.