B and B

Lilly Ledbetter Fair Pay Restoration Act

Here is a bill I've been keeping a close eye on for nearly a year:

Under a measure sponsored by Senator Edward M. Kennedy, Democrat of Massachusetts, the court’s ruling that Ms. [Lilly] Ledbetter [of Alabama] failed to file a timely challenge to pay practices at a Goodyear Tire and Rubber Co. plant in Gadsden would effectively be overturned, though Ms. Ledbetter would not benefit directly.

Ms. Ledbetter, who earned thousands of dollars less than male colleagues doing similar supervisory work, was found by the court to have failed to make her claim within 180 days of the company’s pay policy decision. The sponsors of the bill want to clear up that requirement and straighten out what they see as a flawed ruling.

“Never mind that Ms. Ledbetter didn’t know about the discrimination when it first began,” Mr. Kennedy said. “Never mind that she had no means to learn of the discrimination because Goodyear kept salary information confidential. Never mind that Goodyear’s discrimination against Ms. Ledbetter continued each and every time it gave her a smaller paycheck than it gave her male colleagues.”

The House passed a similar bill last year soon after the court decision, but its backers have encountered resistance in the Senate and from the Bush administration, which argues it could spark a wave of lawsuits. Some Senate Republicans have reservations about the measure, but they intend to be careful in their opposition to avoid being portrayed as backing pay discrimination.

New corporate giveaway under guise of "fixing" the mortgage crisis

I am of mixed opinions of how or even whether to assist people and banks that got involved in the overinflated housing market over the last few years.  But one thing I am clear about is that giving out billions of dollars of taxpayers' money to the housing industry that reaped in mega-profits during those years is profoundly wrong.

Daniel Gross wrote in Slate last Monday (emphasis added):

The proposed tax break [now passed by the Senate] is hard to justify for several reasons. It does nothing for slow and steady companies that keep their heads and simply rack up profits year after year—and pay their taxes accordingly. Rather, it rewards the most reckless participants in the bubble. If you borrowed a ton of money to build spec houses in Miami and reported $2 billion in profits between 2002 and 2007 but gave up all those profits by notching a $2 billion loss this year, the extended carryback has a great deal of value. If you've been building affordable housing in Wichita, Kan., and booked $300 million in profits in those years, and then, through careful management of costs, managed to eke out a $5 million profit this year, it has no value. The big public homebuilders, whose shares rallied on the news of this potential tax break, didn't pay any windfall taxes on the bubble-era earnings. Why should they get an extraordinary post-bubble windfall?

Homebuilders argue that they need relief because their sector, which provides a great deal of domestic employment, is on the ropes, and they're finding it more difficult to raise capital. Which is as it should be. After bubbles pop, those who screwed up really badly fail and get taken over by creditors or opportunistic investors. Those who have sound underlying franchises but merely got a little carried away can survive if they take painful restructuring moves. This is what is known as market capitalism. For all the talk of a credit crunch, capital is still available—it's just not available on the easy terms managers had come to expect during the late Greenspan years. Citigroup, Merrill Lynch, and plenty of other firms tied to the mortgage/finance complex have taken steps to shore up their balance sheets and replenish lost capital. But investors, having been burned, demand more downside protection and better guaranteed returns. Thornburg Mortgage was forced to pay 18 percent interest for an emergency round of capital raising that allowed it to stave off bankruptcy. This is also what is known as market capitalism.

...

The proposal to give new tax breaks to homebuilders and banks is yet another example of the pernicious trend of privatizing profit and socializing losses, which is gnawing away at faith in the system. Dilute the shareholders, not the taxpayers.

Thankfully, the House of Representatives may take a far more sensible route, according to the Washington Post (emphasis added):

On Wednesday, the House Ways and Means Committee approved an $11 billion tax package that rejects help for home builders and offers a $7,500 tax credit to first-time home buyers rather than buyers of foreclosed properties.

Please keep paying attention so that we all do not get swindled in the end.

Cachao

Since I last posted here, the world lost one of our greatest musical influences of the last century. 

Israel Cachao López, the Cuban bassist and composer who was a pioneer of the mambo, died on Saturday in Coral Gables, Fla. He was 89 and lived in Coral Gables.

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Cachao, as he was universally known, transformed the rhythm of Cuban music when he and his brother, the pianist and cellist Orestes López, extended and accelerated the final section of the stately Cuban danzón into the mambo. “My brother and I would say to each other, ‘Mambea, mambea ahí,’ which meant to add swing to that part,” he said in a 2006 interview with The Miami Herald. The springy mambo bass lines Cachao created in the late 1930’s — simultaneously driving and playful — became a foundation of modern Cuban music, of the salsa that grew out of it, and also of Latin-influenced rock ’n’ roll and rhythm-and-blues. For much of the 20th century, Cachao’s innovations set the world dancing.

In the late 1950’s, he brought another breakthrough to Latin music with descargas: late-night Havana jam sessions that merged Afro-Cuban rhythms, Cuban songs and the convolutions of jazz. The mixture of propulsion and exploration in those recordings has influenced salsa and jazz musicians ever since.

Here is a YouTube tribute, from CCSFMusic25.  The music is Cachao on bass and Paquito D'Rivera on clarinet:

And  Cachao - Ahora Si, courtesy of  winplayer86.