MoDo, who is in Los Angeles, asks: “I Ponied Up for Sheryl Crow?” She wonders why Northern Trust of Chicago, if it’s not solvent, is using her tax dollars to party at a golf tournament. The Moustache of Wisdom, in “Paging Uncle Sam,” says at no time in the last 50 years has America ever felt weaker, and at no time in the last 50 years has the world ever seen America as more important. Here’s MoDo:
Talk about being teed off.
The economy is croaking and bankers are still partying at a golf tournament here on our dime.
It’s a good argument for nationalization, or better yet, internationalization. Outsource the jobs of these perfidious, oblivious bank executives to Bangalore; Bollywood bashes have to cost less than Hollywood ones.
The entertainment Web site TMZ broke the story Tuesday that Northern Trust of Chicago, which got $1.5 billion in bailout money and then laid off 450 workers, flew hundreds of clients and employees to Los Angeles last week and treated them to four days of posh hotel rooms, salmon and filet mignon dinners, music concerts, a PGA golf tournament at the Riviera Country Club with Mercedes shuttle rides and Tiffany swag bags.
“A rep from the PGA told us Northern Trust wrote one big, fat check in order to sponsor the event,” TMZ reported.
Northern No Trust had a lavish dinner at the Ritz Carlton on Wednesday with a concert by Chicago (at a $100,000 fee); rented a private hangar at the Santa Monica Airport on Thursday for another big dinner with a gig by Earth, Wind & Fire, and closed down the House of Blues on Sunset Strip on Saturday (at a cost of $50,000) for a dinner and serenade by Sheryl Crow.
In the ignoble tradition of rockers who sing for huge sums to sketchy people when we’re not looking, Crow — in her stint as a federal employee — warbled these lyrics to the oblivious revelers:
“Slow down, you’re gonna crash,
Baby, you’re a-screaming it’s a blast, blast, blast
Look out babe, you’ve got your blinders on …
But there’s a new cat in town
He’s got high payin’ friends
Thinks he’s gonna change history.”Northern Untrustworthy even offered junketeers the chance to attend a seminar on the credit crunch where they could no doubt learn that the U.S. government is just the latest way to finance your deals and keep your office swathed in $87,000 area rugs.
In what is now an established idiotic ritual of rationalization, the bank put out a letter noting that it “did not seek the government’s investment” even though it took it, and that it had raised $3 million for the Los Angeles Junior Chamber of Commerce Charity Foundation and other nonprofits. They riposted that they have a contract to do it every year for five years; but this isn’t every year.
The bank cloaks itself in a philanthropic glow while wasting our money, acting like the American Cancer Society when in fact it’s a cancer on American society.
It asserted that it earned an operating net income of $641 million last year and acted as though it did Americans a favor by taking federal cash.
I would ask Northern No Trust: If you’re totally solvent, why are you taking my tax dollars? If you’re not totally solvent, why are you giving my tax dollars to Sheryl Crow?
Coming in a moment when skeptical and angry Americans watched A.I.G., Citigroup, General Motors and Chrysler — firms that had already been given a federal steroid injection — get back in line for more billions, the golf scandal was just one more sign that the bailed-out rich are different from you and me: their appetites are unquenchable and their culture is uneducable.
President Obama served them notice on Tuesday night in his Congressional address, saying: “This time, C.E.O.’s won’t be able to use taxpayer money to pad their paychecks or buy fancy drapes or disappear on a private jet. Those days are over.”
But will they notice?
John “Antique Commode” Thain had to be ordered by a judge to tell Andrew Cuomo’s investigators which Merrill Lynch employees got those $3.6 billion in bonuses that Thain illicitly shoved through as his firm was failing and being taken over by Bank of America with the help of a $45 billion bailout. Kenneth Lewis, the Bank of America C.E.O., made the absurd assertion to Congress that his bank had “no authority” to stop the bonuses, even though he knew about them beforehand.
“They find out they’re $7 billion off on the estimate of losses for the fourth quarter and they never think maybe we should go back and adjust these bonuses?” Cuomo told me, as Thain was finally responding to investigators on Tuesday at the New York attorney general’s office. “He refused to answer questions on the basis that ‘the Bank of America didn’t want me to.’ You can take the Fifth Amendment or you can answer questions. But there’s no Bank of America privilege. The Bank of America doesn’t substitute for the Constitution. And who’s the Bank of America, by the way?”
He gets incensed about how ingrained, indoctrinated and insensitive the ex-masters of the universe are. “They think of themselves as kings and queens,” he said. And they’re not ready to abdicate.
Here’s Friedman, writing from Seoul:
It is very useful to come to Asia to be reminded about America’s standing in the world these days. For all the talk in recent years about America’s inevitable decline, all eyes are not now on Tokyo, Beijing, Brussels or Moscow — nor on any other pretenders to the world heavyweight crown. All eyes are on Washington to pull the world out of its economic tailspin. At no time in the last 50 years have we ever felt weaker, and at no time in the last 50 years has the world ever seen us as more important.
While it is true that since the end of the cold war global leaders and intellectuals often complained about a world of too much American power, one doesn’t hear much of that grumbling today when most people recognize that only an economically revitalized America has the power to prevent the world economy from going into a global depression. It was always easy to complain about a world of too much American power as long as you didn’t have to live in a world of too little American power. And right now, that is the danger: a world of too little American power.
Somewhere in the back of their minds, a lot of people seem to be realizing that the alternative to a U.S.-dominated world is not a world dominated by someone else or someone better. It is a leaderless world. Neither Russia nor China has the will or the way to provide the global public goods that America — at its best — consistently has. The European Union right now is so split that it cannot even agree on an effective stimulus package.
No wonder then that even though this economic crisis began in America, with American bad borrowing and bad lending practices, people have nevertheless fled to the U.S. dollar. Case in point: South Korea’s currency has lost roughly 40 percent against the dollar in just the last six months.
“No other country can substitute for the U.S.,” a senior Korean official remarked to me. “The U.S. is still No. 1 in military, No. 1 in economy, No. 1 in promoting human rights and No. 1 in idealism. Only the U.S. can lead the world. No other country can. China can’t. The E.U. is too divided, and Europe is militarily far behind the U.S. So it is only the United States … We have never had a more unipolar world than we have today.”
Yes, many Asians resent the fact that Americans scolded them about their banking crisis in the 1990s, and now we’ve made many of the same mistakes. But that schadenfreude doesn’t last long. In random conversations here in Seoul with Korean and Asian thinkers, journalists and business executives, I found people really worried: Could it be, they ask, that the Americans don’t know what they are doing, or, worse, that they know what they are doing but the problem is just so much bigger than anything we’ve ever seen?
This is a region where Western brands carry great weight, and for people to see giant U.S. financial brands like Citigroup and A.I.G. teetering is deeply unnerving.
The big trading nations, like South Korea, are particularly nervous that America will succumb to economic protectionism, which would undermine the global trading system.
“There is no one who can replace America. Without American leadership, there is no leadership,” said Lee Hong-koo, South Korea’s former ambassador to Washington. “That puts a tremendous burden on the American people to do something positive. You can’t be tempted by the usual nationalism. When things don’t go well, most people become nationalistic. And in the economic world, that is protectionism … We are pleased to see President Obama is not doing that. Americans, as a people, should realize how many hopes and expectations other people are putting on their shoulders.”
And that’s just on economics. President Obama’s first big security test could come here — and soon. North Korea has gotten crazier than ever; it has been made even poorer by the global economic crisis and by the withdrawal of aid by the new South Korean government. Now the North is threatening to test one of its Taepodong-2 long-range missiles, which may have the capacity to hit Hawaii, Alaska or beyond.
The North last tried such a test in 2006, but the rocket exploded 40 seconds after its launch. If the North does test such an intercontinental ballistic missile again, American forces will have to consider blowing it up on the launch pad or shooting it out of the sky. We never should have allowed the North to get a nuclear warhead; we certainly don’t want it testing a long-range missile that could deliver that nuclear warhead to our shores, or anywhere else.
Never more inward-looking, never more in demand: that’s America today. This moment recalls a point raised by the Johns Hopkins University foreign policy expert Michael Mandelbaum in his book, “The Case for Goliath.” When it comes to the way other countries view America’s pre-eminent role in the world, he wrote, “whatever its life span, three things can be safely predicted: they will not pay for it; they will continue to criticize it; and they will miss it when it is gone.”
