What did Walker know? And when did he Know it?

A world gone Madoff

Paul Krugman writes:

"The financial services industry has claimed an ever-growing share of the nation’s income over the past generation, making the people who run the industry incredibly rich. Yet, at this point, it looks as if much of the industry has been destroying value, not creating it. And it’s not just a matter of money: the vast riches achieved by those who managed other people’s money have had a corrupting effect on our society as a whole.

Let’s start with those paychecks. Last year, the average salary of employees in “securities, commodity contracts, and investments” was more than four times the average salary in the rest of the economy. Earning a million dollars was nothing special, and even incomes of $20 million or more were fairly common. The incomes of the richest Americans have exploded over the past generation, even as wages of ordinary workers have stagnated; high pay on Wall Street was a major cause of that divergence.

But surely those financial superstars must have been earning their millions, right? No, not necessarily. The pay system on Wall Street lavishly rewards the appearance of profit, even if that appearance later turns out to have been an illusion...

We’re talking about a lot of money here. In recent years the finance sector accounted for 8 percent of America’s G.D.P., up from less than 5 percent a generation earlier. If that extra 3 percent was money for nothing — and it probably was — we’re talking about $400 billion a year in waste, fraud and abuse."

Bush's legacy: cronyism, corruption & partisanship

“What you’ve got is everything — and I mean everything — being run by the political arm. It’s the reign of the Mayberry Machiavellis.” John DiIulio, Bush appointee and former Director of the Office of Faith-Based and Community Initiatives

In his Sunday column, Frank Rich brilliantly discusses the Bush administration's pervasive corruption, cronyism, political manipulation and mismanagement, asserting that:

"Wrongdoing of this magnitude does not happen by accident... When corruption is this pervasive, it can also be a byproduct of a governing philosophy....

By my rough, conservative calculation — feel free to add — there have been corruption, incompetence, and contracting or cronyism scandals in these cabinet departments: Defense, Education, Justice, Interior, Homeland Security, Veterans Affairs, Health and Human Services, and Housing and Urban Development. I am not counting State, whose deputy secretary, a champion of abstinence-based international AIDS funding, resigned last month in a prostitution scandal, or the General Services Administration, now being investigated for possibly steering federal favors to Republican Congressional candidates in 2006. Or the Office of Management and Budget, whose chief procurement officer was sentenced to prison in the Abramoff fallout. I will, however, toss in a figure that reveals the sheer depth of the overall malfeasance: no fewer than four inspectors general, the official watchdogs charged with investigating improprieties in each department, are themselves under investigation simultaneously — an all-time record.

The corruption grew out of the White House’s insistence that partisanship — the maintenance of that 51 percent — dictate every governmental action no matter what the effect on the common good... Loyal ideologues or flunkies were put in crucial positions regardless of their ethics or competence. Government business was outsourced to campaign contributors regardless of their ethics or competence. Even orthodox Republican fiscal prudence was tossed aside so Congressional allies could be bought off with bridges to nowhere."

Read the entire column.