January 2012

Today is the fourth working day of the new year. The Federal Register is already over 1,000 pages long.

At this rate, the 2010 Federal Register will hit 63,187 pages. This is an improvement over 2009, when it reached 69,676 pages. In 2008, it was 79,435 pages.

Earlier, the Washington Post reported on how the Obama administration pressured Freddie Mac not to disclose to investors and the SEC the $30 billion in losses it was incurring as a result of Obama’s mortgage bailouts for undeserving (including high-income) borrowers.

Now, Bloomberg News reports that then-Federal Reserve Bank head (and now Treasury Secretary) “Timothy Geithner, told American International Group Inc. to withhold details from the public about the bailed-out insurer’s payments to banks during the depths of the financial crisis,” and to hide them from the SEC in its SEC filings.  Such conduct is not too surprising coming from Geithner, a sanctimonious and hypocritical tax cheat.  Geithner also used the government’s bailout of AIG to pay billions of dollars to the wealthy Wall Street investment firm of Goldman Sachs, money that it neither needed to stay afloat, nor was legally entitled to.

Earlier this year, Freddie Mac’s CFO killed himself amidst a sea of red ink, as the administration forced Freddie to run up losses on mortgage bailouts, even though economists and real estate experts have criticized those bailouts as harmful to the economy.  Now, the Obama administration is making Freddie Mac and Fannie Mae deliberately run up losses on bailouts and buying up risky loans, even though the government took over Fannie and Freddie in 2008 in the name of ending their risky practices.  It is rewarding their executives for carrying out such terrible policies by showering them with multimillion dollar pay.

The mortgage crisis was caused partly by the reckless government-sponsored mortgage giants Fannie Mae and Freddie Mac, and partly by the affordable-housing mandates imposed on them.

But Obama’s proposed financial rules overhaul does absolutely nothing about the risky practices of Fannie Mae and Freddie Mac, admits Obama’s Treasury Secretary, Timothy Geithner, even though he admits that “Fannie and Freddie were a core part of what went wrong in our system.”

Instead, it pressures banks to make even more risky loans.  The House has approved Obama’s proposal to create a politically-correct entity called the Consumer Financial Protection Agency. “The agency would be in charge of enforcing the Community Reinvestment Act, a law that prods banks to make loans in low-income communities.”  The Community Reinvestment Act was a key contributor to the financial crisis.  But the administration’s proposal would direct the new agency to enforce the Community Reinvestment Act without regard for banks’ financial safety and soundness.

Accuweather’s meteorologist Joe Bastardi has a new video titled “Worldwide Cold not Seen Since 70s Ice Age Scare.” Bastardi points out that the frigid conditions affecting significant parts of the world today – North America, Europe, and Asia – are very similar to the patterns in the 1970s, when fears of a new Ice Age were hyped by the media. He repeatedly compares maps of the cold spots from January 1-10, 1977 and current ones and notes the strong similarities:

Here’s what we had then, here’s what we have now.  Then, now.  Then, now.

In referring to the current global warming alarms, Bastardi asks:

How could this be global warming, but 34 years ago, that was an Ice Age coming?

Good question.

Sometimes, when two regulations love each other very much, they get together and have little baby regulations. This is happening right now in Britain.

Full body scans are coming into use at many UK airport security checkpoints. Since screeners essentially see all passengers naked, the scans run afoul of child protection laws for passengers under 18.

The thought of pedophiles using the body scan images for their own sick ends is decidedly creepy. So the British government is taking steps to keep that from happening. Those steps include:

-Exempting everyone under 18 from being scanned. This defeats the security purpose of the scanners.

-Moving the scanner operators out of sight of passengers. That keeps the scanner images anonymous. But it doesn’t prevent perverts from seeing things they shouldn’t.

There is an easier way: don’t do full body scans. They do more to make people feel safe than to actually make them safe.

Reinforced cockpit doors, proactive passengers, and checked baggage screening are much more effective. And they’re already in place. Besides, terrorist attacks are rare. Full-body scans are an over-reaction. The resources spent on them have other, better uses.

The D.C. government sometimes has more empathy for criminals than for their victims.   In December 2007, the D.C. Council voted to turn ex-cons into a protected class.

Now, it turns out that serial rapists are roaming free in the District of Columbia, since “Three thousand untested rape kits are sitting in a warehouse,” and D.C. has not even set up its own crime lab to nab rapists and other criminals using their DNA.

The D.C. Council hasn’t done anything about that.  But in December 2007, it voted to curtail employers’ and landlord’s freedom of association by banning job and housing discrimination against ex-cons, even though there’s a huge difference between discriminating based on someone’s skin color, and judging them based on the “content of their character.”  Even the Washington Post opposed the bill, noting that it “would undermine public safety.”

A Washington, D.C. law called the D.C. Human Rights Act also bans employers, including ideological and political organizations, from using political affiliation as a hiring criterion, or even adopting neutral policies that have an inadvertent “disparate impact” based on such criteria (with a completely different, and radically broader, definition of “disparate impact” than federal law).  Such mandates are of dubious constitutionality.  Contrary to the D.C. Council’s apparent belief, the government’s power to ban employers from engaging in reasonable job-related “discrimination” is not infinite.  See Nelson v. McClatchy Newspapers, 936 P.2d 1123 (Wash. 1997) (First Amendment barred application of state law holding newspaper liable for discharging reporter based on political activities).

Married parents don’t have any legal obligation to pay for their adult children’s college education or living expenses. But a bill just introduced in Virginia’s legislature would require divorced parents to pay for such expenses.

HB 146 would extend child support beyond age 18 to age 23 when the “child” is attending college. Right now, child support in Virginia usually ends soon after the child reaches the age of majority.

The Pennsylvania Supreme Court struck down a similar provision mandating post-majority support as a violation of the Constitution’s Equal Protection Clause. It reasoned that since married parents do not have to support their adult children, it was discriminatory to force divorced parents to do so. See Curtis v. Kline, 666 A.2d 265 (Pa. 1995) (Courts have apparently split over the constitutionality of such requirements).

I agree with the Pennsylvania Supreme Court’s reasoning, on principle. Married parents in Virginia generally have no duty to support their college-age children. Thus, neither should divorced parents.

But I also oppose this requirement based on my experience as a lawyer. (I should note, by the way, that I am not divorced, and have no child support obligations.)
As an intake lawyer for a non-profit law firm for over 6 years, I saw cases of aging divorced parents forced to pay the college bills of ungrateful offspring with whom they had an acrimonious relationship, even though they could ill-afford to do so – like a father dying of incurable liver disease forced to pay his estranged daughter’s graduate school expenses, under a state law permitting child support to be awarded for adult children. (We did not handle family-law cases in state court and I thus had no choice but to reject these people’s pleas for legal assistance.)

Divorced parents, like married parents, should have the right not to pay for their adult children’s living expenses or college costs — for example, if the child engages in conduct or a field of study that is objectionable to the parent.

It is an unfortunate reality that courts are likely to apply this bill, if it is enacted and not struck down, in a way that results in support obligations that are inequitable to some aging parents. Virginia courts have sometimes awarded support even in situations where statutory language would appear to bar any support. For example, in Calvin v. Calvin, 31 Va. App. 181 (1999), the Virginia Court of Appeals awarded spousal support, even though the recipient had engaged in adultery and been “vindictive and cruel” in the court’s own words, and even though Virginia’s statutes expressly bar support to adulterous spouses absent a finding of “manifest injustice” under both economic and fault-based factors. Additional examples are given here.

Certain influential forces in the environmental movement – most notably James Hansen of NASA – have expressed disquiet with the inability of democracies to deal with their imagined “climate crisis,” leading to sentiments like this one from Australian authors David Shearman and Joseph Wayne Smith:

We need an authoritarian form of government in order to implement the scientific consensus on greenhouse gas emissions

Climatologists Nico Stehr and Hans von Storch discuss this argument at Roger Pielke Jr’s blog.  Thankfully, the demands for an “Ecologocracy,” for want of a better term, are not yet universal in the environmental movement.  They conclude:

Finally, the growing impatience of prominent climate researchers constitutes an implicit embrace of now popular social theories. We think in this context especially of Jared Diamond’s theories on the fate of human societies. Diamond argues that only those societies have a chance of survival which practice sustainable lifestyles. Climate researchers have evidently been impressed by Diamond’s deterministic social theory. However, they have drawn the wrong conclusion, namely that only authoritarian political states guided by scientists make effective and correct decisions on the climate issue. History teaches us that the opposite is the case.

Therefore, today’s China cannot serve as a model. Climate policy must be compatible with democracy, otherwise the threat to civilization will be much more than just changes to our physical environment.

Indeed.  In fact, there may be another reason for those who despise greenhouse gas emissions also to despise democracy. and it is precisely linked to the threat to civilization.  We know that the best indicator of low greenhouse gas emissions is poverty.  As Daron Acemoglu shows, rejecting Diamond, poverty is strongly linked to the lack of market institutions that democracy protects:

People need incentives to invest and prosper; they need to know that if they work hard, they can make money and actually keep that money. And the key to ensuring those incentives is sound institutions — the rule of law and security and a governing system that offers opportunities to achieve and innovate. That’s what determines the haves from the have-nots — not geography or weather or technology or disease or ethnicity.
Put simply: Fix incentives and you will fix poverty. And if you wish to fix institutions, you have to fix governments.

To put it another way, the authoritarian solution to the global warming problem, in so far as it exists, is the imposition of poverty, for that is the inevitable result of the restriction of energy use that is the authoritarians’ sine qua non. Those of us who are trying to think of alternative solutions to the problem, however, are convinced that it is the same institutions that have delivered us from poverty that will deliver us from whatever ills a warmer world might impose. To see more on this, check out Marlo Lewis’ film Policy Peril, in particular this segment.

In his Forbes.com column, University of Chicago law professor Richard Epstein offers a simple proposal for reviving the economy: “Deregulation Now.” His proposals are all sound. I found especially welcome his focus on labor law reform, especially on collective bargaining by government employees — a problem which, as I noted here yesterday, is getting some overdue and needed attention.

On labor, state and local governments have to junk the progressive mindset in both the public and the private sector. State and local governments should never, repeat never, be forced to negotiate with local unions. The huge pensions garnered by prison guards in California or transportation workers in New York present the intolerable spectacle of requiring ordinary citizens to pay huge subsidies to union workers far richer than themselves. On the private side, don’t force developers to hire union workers on construction sites or to block the construction of new facilities that hire nonunion labor. If unions are really efficient–and they aren’t–let them compete like everyone else.

Also, at Reason’s Hit & Run, Nick Gillespie cites the pay gap between private and public sector workers, and Matt Welch cites Epstein.

For more on public sector unions, see here and here. (Thanks to Iain Murray for the Forbes.com link.)

“Anybody who ever built an empire, or changed the world, sat where you are now,” says George Clooney’s “termination engineer” to just-fired employees in the comedy Up in the Air. Satire? Hardly. “We Got Fired! … And It’s the Best Thing that Ever Happened to Us!” declares one book title. There’s a cottage industry built around convincing canned workers that they just won the lottery.

A whole chapter is devoted to it in Barbara Ehrenreich’s brilliant exposé of our smiley-faced culture in Bright-Sided: How the Relentless Promotion of Positive Thinking Has Undermined America. It’s “an ideological force in American culture,” she says, “that encourages us to deny reality, submit cheerfully to misfortune, and blame only ourselves for our fate.”

Read my Forbes Online review of Ehrenreich’s provocative and powerful book.

The state of Maine and the city of San Francisco are considering requiring warning labels for cell phones.

Perhaps some warning labels are in order. After all, few things are more annoying than people SPEAKING AS LOUDLY AS POSSIBLE INTO THEIR PHONE ABOUT WHAT’S FOR DINNER when a normal tone of voice will do.

But these warning labels have nothing to do with letting people know that their phones can make them look like jackasses.

No, the labels warn the credulous that their phones emit electromagnetic radiation. Otherwise known as light waves. Some people believe that this causes brain cancer.

Brain atrophy, maybe. But cancer? Most studies have found no correlation, let alone causation.

Something else to consider: the demographic group far and away most prone to brain cancer is also far and away the least likely to use cell phones – the elderly.

Hmm.