It was clear from the start that the White House understood that information was power as they carefully choreographed every message with visual images or slogans such as “Clear Skies” that moderated the actual substance being conveyed. With David Suskind’s 2002 interview with a White House aide, however, we discovered that in the Bush administration basing policy on a “discernible reality” was a thing of the past. “[W]e create our own reality. And while you’re studying that reality . . . we’ll act again, creating other new realities.”
Indeed they did. Like no administration before it, the Bush administration has worked diligently at creating new realities by concealing, distorting and manufacturing information on a broad range of issues aided by a once timid media and docile Congress.
Last month’s “Initial Benchmark Assessment Report” on the effectiveness of the surge in Iraq report was the administration’s latest pièce de résistance. Despite the fact that the report’s claim of success on eight of the 18 benchmarks set by Congress was pure spin and contrary to testimony by the Chairman of the National Intelligence Council that there have been “few appreciable gains,” the press ran with the report’s glass half-full assessment.
Daily Archives: August 3, 2007
We haven’t even gotten to the worst part yet, and home lenders are falling like flies. American Home Mortgage is the latest. What about Countrywide, and others?
Numerous mortgage lenders have gone out of business in recent months, but American Home Mortgage is one of the largest to be hit by problems. It minted 59 billion dollars in loans last year, up from 45 billion in 2005.
In a statement late Thursday, the home loan giant said it had stopped taking new mortgage applications and had told most of its employees they would be laid off Friday.
“The company employee base will be reduced from over 7,000 to approximately 750,” the distressed firm said.
Another big firm, Countrywide Financial, reported a steep drop in its latest quarterly profit last month. The lender said coming months were likely to be “increasingly challenging.”
Countrywide Financial’s shares were down over six percent at 25.03 dollars in morning trading amid wider market losses.
The ripple effect is huge. But we have only seen the tip of the iceberg. If Countrywide is already in trouble, you can imagine what it will be like by Christmas. These bad loans are going to continue going sour for at least three more years. Three freakin years.