President Obama wants to try principal reduction as a way to help home owners and the economy. The problem for Obama is Ed DeMarco, acting director of the Federal Housing Finance Agency, which would be responsible for implementing a key part of this policy, doesn’t like principal reduction. As acting director of FHFA, DeMarco has decided that gives him the right to set government policy based on his personal preferences. This prompted Paul Krugman to call for DeMarco to be fired:
In any case, however, deciding whether debt relief is a good policy for the nation as a whole is not DeMarco’s job. His job — as long as he keeps it, which I hope is a very short period of time — is to run his agency. If the Secretary of the Treasury, acting on behalf of the president, believes that it is in the national interest to spend some taxpayer funds on debt relief, in a way that actually improves the FHFA’s budget position, the agency’s director has no business deciding on his own that he prefers not to act.
I don’t know what DeMarco’s specific legal mandate is. But there is simply no way that it makes sense for an agency director to use his position to block implementation of the president’s economic policy, not because it would hurt his agency’s operations, but simply because he disagrees with that policy.
This guy needs to go.
Whether you agree with the policy or not, this is a debacle. A part of the executive branch basically refusing to carry out the policy decision set by the duly elected executive of the country is a problem for President Obama. It goes to the heart of his administration’s unquestionably bigger failures.
Often debates about the grade President Obama deserves for his first term focus on what he could and didn’t do on the legislative front. The decision often hinges on theoretical arguments about what a divided Congress would or would not accept. Less focus, though, is put on the fact that Obama simply didn’t put enough effort into using his authority to put into critical positions people that agree with his vision and would help carry out his policies.
Almost no real effort was spent trying to replace DeMarco with an Obama pick, and now it is hurting his ability to govern. Ed DeMarco, though, is not even the most important example of this failure. There is a shocking number of judicial vacancies. In addition not only did Obama reappoint Ben Bernanke, instead of choosing someone of his own to run the Federal Reserve, but Obama effectively left two seats on the board vacant for his first two years.
Leaders can’t lead effectively if they don’t first get their people into key positions to implement their policies.




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Don’t I remember the Bush administration and their purge of the Attorney Generals throughout the country and “They serve at the pleasure of the President”?
In a heartbeat the guy should be gone.
What the heck is wrong with Obama?
You are so right, this guy should be gone in a heartbeat and I mean that quick.
If Obama keeps him with his obstructionist ways, that is truly Obama’s fault. This is not the first time I have heard of this guy’s obstruction that would help out the housing market.
President Predator Drone tries so hard to help us, and it just never works.
Principle reduction should take place for moral reasons. The banks drove the housing bubble through fraud (rigged appraisals, lying about the credit worthiness of borrowers, purchasing fraudulent AAA ratings for mortgage bundles) and now it is long past due for them to pay the price for their fraud.
True. Ed DeMarco is probably doing his real bidding, just like Joe Lieberman killed the public option at O’Bomber’s request.
Whenever I hear trad-Dem voters *defending* Obomba because poor poor poor pathetically abused Barry just simply canNOT get anything done bc of the mean old nasty-wasty Weepublicans who are so mean & obstructionist blah blah blah… I just wanna stick my fingers down my throat and puke.
Ed DeMarco is working at the BEHEST of Barry Zero who continues the W Admin, Part III.
Obama and his entire crew are placeholders. The real actors come on stage any time now.
This seems like a fairly easy thing: Congress is about to go on recess for 5 weeks. Make a recess appointment.
It’s not complicated. Congress sat on Obama’s nominee for 3+ years. Just get it done.
My sentiment exactly. I read the start of the first sentence, “President Obama wants to try principal reduction…” and stopped reading. That phony will say anything at this point. He has spent three and a half years proving what a complete tool he is.
I try not to judge people on appearances.
Ahhh, that’s a load o’ crap. I judge propel principally on appearances.
THis guy looks like a insolent little shit.
Sorry, my Paxil prescription is being held up by Canadian customs.
Why do people keep asking that?????
Oh…….now I remember.
I told you I like the way you think, didn’t I????
That only really helps is you wanna be a supermodel. Hey….not that you’re not attractive enough to be one, don;t you know.
I don;t think Obama ever really learned how to BE president, ‘cepting for those predator drone extra-judicial execuitions which he seems to have learnt fairly well.
Quick, somebody find me a carrier pigeon.
Now if this guy was a whistleblower, would the Obama administration be all squishy and soft with him?
Jeepbus — this is on par with a Rear Admiral refusing to follow orders from the JCS. Is this what we have come to?
Yup. Has Obama never heard of the Truman-MacArthur thing? It sorta smacks (just a bit) of that incident to me…
The Army has a rule that if an officer in the field serves as acting commander for 30 days, he’s officially the unit commander. Considering that DeMarco has been acting director for 3 years, might as well acknowledge that the job is his. :o)
The real problem here is the whole idiotic idea of an independent federal agency. Since FHFA is one, DeMarco can’t be fired without cause (Obama could recess appoint a successor, but DeMarco could make a strong case he’s been there there so long the directorship isn’t actually vacant).
The Team Scalia unitary executive folks are absolutely right that since the Constitution vests all executive power in the President, he should have the power to fire any govt official exercising executive power (looking at you Ben Bernanke!).
That issue came up in a Nuclear Regulatory Commission case last year. Sooner or later, the Supreme Court is going to upset the applecart by putting all agencies under the thumb of the President. Can’t happen soon enough.
http://www.volokh.com/2011/07/01/a-thought-provoking-look-at-independent-agencies/
I’;m sure he is aware of the Truman-MacArthur dust up.
It was in all the papers.
I began to suspect that Obama would be playing for a one term president when he didn’t get the republicans out.
Get ready for Mitt, by hook or by crook(s)
Yep, just remember Blanche Lincoln and Bill Halter. Old meanie Blanche wouldn’t let widdle Barry-warry have a public option. Poor Bill (like me) was naive enough to think the President would want someone in the Senate who supported Obama’s public positions. Meanwhile, Obama and Rahm were celebrating and giving each other high fives when Blanche won her primary.
Fuck Obama, he’s got the people he wants.
and the U.S. public is in for a very rude awakening that they so richly deserve. The rest of the world will celebrate the final collapse of the U.S. Empire.
Bush’s words were pretty much straight forward and inline with what his admin was doing, but now in order for Obama to carry on with the same neocon agenda, he has to pander to his base while his admin does the dirty work. Classic bait and switch.
I like this part:
This is where you are a bit confused. Fact is he has got neither the VISION nor the POLICIES. He is like a hostage to a bunch of knuckle head crooks who have infiltrated his staff and administration. His economic policies are dictated to him by a bunch of crooks from wall street and his foreign policies are ordered to him form Israel. It is too painful even to think about his pathetic performance.
I agree that his policies are dictated to him as you describe. I think he’s a tool, not a hostage, though. He’s too good at this deception to be a simple hostage.
Just a lying tool.
Yves Smith at nakedcapitalism has an entirely different take: http://www.nakedcapitalism.com/2012/07/why-firing-ed-demarco-is-no-solution-to-fhfa-refusal-to-engage-in-principal-modifications.html
My expertise, here, is non existent. Smith seems to me the better experienced and I’m going to support her conclusions until I see something that convinces me otherwise. I have to add: who says Obama’s people don’t carry out his policies and God help us if the people in place are insufficiently attentive to his policies and he replaces them with people more rigorous in application. Think about it, Jon.
Why is he “acting”?
Because Congress wants an anti-Obama right-winger to replace him.
And Obama for proposing moderates for positions requiring Congressional approval has been branded far and wide as the most divisive radical leftist president ever.
And so the public elects Republicans to check Obama.
How is it that Obama is the only one branded as radical and divisive?
Why is Obama the only one attacked by all factions?
Why isn’t Mitch McConnell and John Boehner and Eric Canter and Paul Ryan discussed daily in the press as anti-American, radical, crony capitalists who are the jack boots of Wall Street stomping on workers to impoverish the 99% by cutting pay below living wage, forcing workers to buy on credit from the company store, and turn over all the assets to Wall Street traders and the wealthy conservative elites who want a return to share cropping and slavery.