Wednesday, October 6, 2010

Fannie Mae to introduce new home ownership program for sub-prime borrowers

UpsideDown News Release

October 06, 2010

Fannie Mae CEO Mike Williams Announces New Housing Finance Program for Sub-prime Homeowner Wannabes

Calling it the No Money Upside Down program, Fannie Mae CEO Mike Williams announced an innovative new program designed to help sub-prime homebuyers grab their share of the American Dream.

The No Money Upside Down Program allows almost anyone to borrow up to 150% of a new home’s value.  Borrowers with lousy credit, no discernible source of regular income and a history of defaulting on credit cards and installment loans are eligible, Williams told reporters.

“Today, millions of low income, no account Americans are suffering from the inability to participate in the American Dream of home ownership. Just because they have struggled to pay their bills in the past and have walked away from debt before, they should still have a shot to grab their fair share.

“This program lets them do just that,” he said.

“This program is exactly what he had in mind when we passed the banking regulation bill,” said reigning Banking Queen, Representative Barney Frank.  Frank, who is in a surprisingly competitive race for reelection, was eager to offer support for the new program. 

“This doesn’t have to be about improving the liquidity and health of the financial sector.  This has to be about making sure people can borrow way more money than they can afford to pay back and buy the same kinds of houses that their rich neighbors buy."

(h/t @JosephAGallant for the image)

Report: White House blocked official oil spill estimates UPDATE: Report excerpt added

IdioBama

Via Reuters Breaking Politics feed:

 

 


(Reuters) - The White House in the spring blocked release of government estimates on the worst-case scenario of the amount of oil that was spewing from BP's well in the Gulf of Mexico, the presidential commission looking into the accident said on Wednesday.

The commission said its staff was told that in late April or early May that the National Oceanic and Atmospheric Administration wanted to make public some of its long-term, worst-case spill models for the Deepwater Horizon accident and requested approval from the White House's Office of Management and Budget to make the information public.

"Staff was told that the Office of Management and Budget denied NOAA's request," the commission said in a draft report on the amount of oil spilled and what happened to it.


This should put an end to the mainstream media meme that BP’s “initial estimates” were horribly underestimated.  In fact, as shown in the Timeline, BP never publicly provided an estimate of flow from the busted well.  The first estimates came from the US Coast Guard, and every other official flow estimate given to the media came from either the Coasties or the Flow Rate Technical Group, headed by a US Geological Survey team.

BP would have been crazy to stand behind an official estimate of oil flow, for legal and technical reasons.

But don’t hold your breath.  The media bent over backwards to make the Obama White House appear on top of things “from day one.”  The White House didn’t realize it had a serious problem until nine days after the rig exploded and sank.  Obama didn’t appoint an incident commander until 12 days afterwards.  By that time, they were in full damage control mode.

But it wasn’t spill damage they were worried about.  It was political damage.

Had the White House not played politics with the numbers, perhaps private, local and state responders could have been more prepared for the onslaught of crude.  How do you fight a fire without knowing how much of the structure is engaged?  Similarly, how do you fight an oil spill without knowing how much of the stuff is coming at you?

Instead of letting the Coasties and NOAA responders be open and honest with the public, the White House instead moved to create even more economic damage by fabricating a justification for the Deepwater Drilling Moratorium.

UPDATE: via the New York Times:


“By initially underestimating the amount of oil flow and then, at the end of the summer, appearing to underestimate the amount of oil remaining in the gulf, the federal government created the impression that it was either not fully competent to handle the spill or not fully candid with the American people about the scope of the problem.”

And from the Commission Website:

Commission Issues Four New Staff Draft Working Papers

The National Oil Spill Commission today is releasing four new draft working papers prepared by its staff.  Commission staff prepares draft working papers to inform the Commissioners’ on-going examination of the root causes of the Gulf spill and options to guard against and mitigate the impacts of future spills.  The Commissioners’ decisions regarding these matters will be contained in the Commission’s final report, expected to be issued on Jan. 11, 2011.

Topics of the attached staff draft working papers are: 

  • Decision-Making within the Unified Command
  • The Amount and Fate of the Oil
  • The Use of Surface and Subsea Dispersants during the BP Deepwater Horizon Oil Spill
  • The Challenges of Oil Spill Response in the Arctic


The report on the use of dispersants ought to be interesting.

ADP National Employment Report shows slowing economy

ADP has released its analysis for the month of September, and the news is not good.  Consensus forecasts were for anywhere from a zero gain to a slight increase (around 10,000), which economists believe would be cancelled out by the release of temporary Census workers.

  Instead:


Private-sector employment decreased by 39,000 from August to September on a seasonally adjusted basis, according to the latest ADP National Employment Report® released today. The estimated change of employment from July to August was revised up from the previously reported decline of 10,000 to an increase of 10,000.

The decline in private employment in September confirms a pause in the economic recovery already evident in other data. A deceleration of employment occurred in all the major sectors shown in The ADP Report and for all sizes of payroll. The September decline in employment followed seven monthly increases from February through August. However, over those seven months, the average monthly gain in employment was 34,000. There simply is no momentum in employment.

Unlike the estimate of total establishment employment to be released on Friday by the Bureau of Labor Statistics (BLS), today’s ADP National Employment Report does not include the effects of federal hiring — and now firing — for the 2010 Census. Hiring for the census peaked in May and is still tapering down slightly.


This means that if the Census did indeed lay off the several thousands expected, then Friday’s Bureau of Labor Statistics report could be very bad news.  If private sector employers didn’t add jobs in September—and the ADP figures indicate that they didn’t—then expect the Friday figures to be “unexpected.”

Whether or not ADP’s figures presage the flavor of Friday’s BLS report, the data clearly show that the economy is not gaining strength and will struggle to stay above zero net growth in Q4 2010 and Q1 2011.  Q4 is the strongest quarter of the year for retail sales, and if people are concerned about job security and employment prospects, a dismal holiday shopping season is in store.

ADP is a company that handles payroll management for companies across the United States. 

Rush Limbaugh: Captain Kickass is really a Jackass

image I’m not sure why this is news. 

It may become news, should the notoriously thin-skinned Narcissist in Chief decide to respond again.  Limbaugh has joked repeatedly about “living rent-free in Obama’s head,” and has managed to knock the President off of his message more than once in the past.

So it’s entirely likely that the next few days of an ever shortening pre-election clock could be occupied by yet another parry and thrust between America’s favorite lovable little fuzzball and Captain Kickass the economic Jackass.


Obama, Limbaugh says, is an "economic ignoramus" for not understanding how a "tax increase" on the wealthy won't stimulate growth.

Quoting an AP article from yesterday, Limbaugh pointed out Obama’s remarks at a meeting of his Economic Recovery Advisory Board that the wealthy would “take our ball and go home” if their tax cuts aren’t extended.

Limbaugh then addressed the following line to the president directly:

“Mr. Obama, our imam-child, they have already taken their trillion dollar ball home, and they’re sitting on it, you jackass.”

(Limbaugh’s been calling the president “Imam Obama” for several months now.)

"Extend the tax cut to everybody, and you'll inspire confidence," Limbaugh argued, saying that added degree of certainty would free business to spend some of the capital they’re holding onto and hire people, “which, once upon a time, we were told, was Obama’s top priority.”

For not getting this, "He's a jackass.  He's an economic illiterate.  He's an economic ignoramus.” 
“And that's being charitable,” Limbaugh said.


There are rumors that the International Brotherhood of Jackasses are preparing a statement, objecting to Mr. Limbaugh’s insulting comparison between the Worst Economic President in the History of the Republic and their honorable membership.

Film at 11:00.

Tuesday, October 5, 2010

EXCLUSIVE: What’s really going on with Project Gulf Impact?

UPDATE: Story continues here.
Last week, this blog introduced you to Project Gulf Impact, an organization putatively set up to raise money for providing information about the Gulf of Mexico Oil Spill and humanitarian assistance to the spill’s victims.  The group’s videos and interviews have become favorites of conspiracy theorists and they are exemplified by the story linked in my original post. The conspiracy nuts love PGI’s dispatches because they routinely suggest a massive coverup of environmental and health effects related to the spill.  New evidence suggests that PGI may not be the humanitarian foundation its principals claim it to be.  Instead, the evidence shows that the organization has strong left-wing and environmentalist ties and may not be a legitimate non-profit organization at all.
The principal director of the group was a featured speaker at Netroots Nation 2010 convention, is connected with a NOAA-funded climate change videographer, and is directly tied with a former Barack Obama political operative.

In last week’s post, I identified one of the organization’s founders as Gavin Garrison, a graduate student and filmmaker at the University of Southern California.  Mr. Garrison was the individual who registered the organization’s domain name and established its website.

Mr. Garrison’s work includes a NOAA-sponsored film on the climate change debate, called Proof or Propaganda.  Climate change skeptics should probably avoid watching it.

Additional research has revealed that the organization’s co-founders are Matt Smith, a 22-year old aspiring actor; and Richard Virgen, a self-described “freelance celebrity” (warning: obscene gesture imagery at the link).  Virgen has also been listed as the “Producer” on a number of the organizations videos hosted on its site and at YouTube.

UPDATE: Independent investigation and subsequent corroboration have determined that Mr. Virgen is no longer associated with PGI.

Reading Mr. Smith’s blog indicates that his motives for beginning the organization were purely driven by concern over what he perceived as a human tragedy unfolding in the Gulf of Mexico. It gives the distinct impression that Project Gulf Impact was formed as a noble and worthy humanitarian cause.

However, judging from the content and tone of his interviews with Intel Hub and the videos posted on his organization’s site, combined with his organization’s intense drive for contributions, it looks doubtful that humanitarian goodwill is the only motivation.  Further, we could substantiate no information that confirms Project Gulf Impact is a legitimate non-profit organization, and the organization itself did not respond to a request for information regarding its status.  Further still, we did substantiate the organization’s leftist ties. 

The radio interviews, some conducted as late as September 20, make unsubstantiated claims that massive amounts of oil are still floating around in the Gulf of Mexico; that dispersant chemicals—including conspiracy theorist boogeyman Corexit 9500—are still being sprayed by BP and/or the United States Government; and that there are scores of people suffering from mysterious ailments.

These allegations are difficult to corroborate.

Spokesmen for the Unified Command Center in Mobile, AL and BP North America in Houston, TX both stated that for weeks they have received no reports of significant quantities of oil on the surface of the Gulf of Mexico and that both aerial and subsurface applications of dispersant were halted weeks ago.  The USCG official noted that the government was no longer publishing oil spill slick trajectory maps because no significant surface oil could be found just weeks after the successful July 15 capping of the well. Neither spokesman had heard reports of large-scale illnesses among Gulf Coast residents. Without prompting, both spokesmen provided hotline numbers for anyone to call and report such problems.  For oil at sea or on land, people are encouraged to call 1-866-448-5816.  For medical emergencies related to oil-related sickness or poison control, people are encouraged to call (800) 222-1222.

SmithTweet01 So why would Project Gulf Impact’s principals still be reporting that things are getting worse rather than better, and that people are still getting sick? Despite every credible and reasonable source stating unequivocally that the oil is virtually gone and that the Gulf’s healing is occurring more rapidly than expected, these people are still claiming that the disaster is getting worse.  Why?

Could there be a financial motivation?

The organization’s website has a donation page, snapshot here:
image

The text from the page (emphasis mine):

Your contributions to Project Gulf Impact will help get back down to the Gulf to report the truth and get people out of the area to avoid the growing health risks.
Register for The Spill Was Just The Beginning: Project Gulf Impact Online Awareness Fundraiser in Plaquemine, LA  on Eventbrite
Project Gulf Impact is currently working under the CA non-profit organization status of “Law of the Oceans” as it files for its own non-profit corporation and for 501(c)(3) status. Currently, we are seeking a fiscal sponsor for the organization to ensure that donations are properly tax-exempt. This is a common situation for start up non-profits, especially one that’s genesis was under a month and a half ago.
The funds will be going to two [sic] places:
1) To get Project Gulf Impact back down to the Gulf in order to continue filming and updating the world on what is happening in the Gulf. The team has already received over 250,000 YouTube views and is focused on telling the truth and exposing the human health hazards in the area.
2) The funding will also be used in relief efforts in the Gulf. The group is specifically focused on the human health hazards in the Gulf. They will be setting up a campaign headquarters to provide teach-ins and workshops on health-related issues, to act as a clearinghouse for information and resources in the Gulf (a huge missing piece of the relief efforts currently going on in the Gulf) and to provide aid in the way of supplies, gas cards and other necessary materials for Gulf residents. Health hazards and prevention will be the primary focus as many residents are currently breathing and being poisoned by toxic elements with no means of protecting themselves.
3) The funding will also be used towards independent air and water testing.
The team is connected with doctors and experts who are ready to chip in and start getting this going as soon as the team gets back down to the Gulf.
Project Gulf Impact’s video page contains a variety of videos filmed by the team that are heartbreaking testaments to the health and financial troubles being faced by Gulf residents.

On its website, PGI lists Coffee Party USA as one if its partners.  The Coffee Party is a cheap, astroturfed response to the Tea Party movement, a real grassroots organization that is still growing in influence and political punch. The Coffee Party founder, Annabel Park, is a former Barack Obama political operative with a specialty in documentary filmmaking.
 
And, fundraising.

SmithTweet02 Using social media such as Facebook and Twitter, Project Gulf Impact conducted an intense and coordinated fundraising effort through much of July and August. 

Principals and activist volunteers furiously hammered out tweets and facebook messages requesting small donations.  The organization’s website, twitterfeeds and facebook posts specifically mention plans for the organization to return to Louisiana.

That fundraising effort appears to have culminated with Smith’s speech to the Netroots Nation 2010 Convention.  In his address, Smith lays the schmooze on hard and thick.  In it, he says “people are dying.”  That’s violin music to netroots’ ears. 

Netroots2010
There are no documents describing how much money was raised, but Mr. Garrison is a filmmaker and grad student at USC and Mr. Smith’s primary residence is in Hollywood’s backyard.  Mr. Garrison has already made one left-leaning documentary, and Mr. Smith has already made two single-episode appearances in a pair of popular TV series. It’s fair to speculate that the pair’s Hollywood connections, the speech before the Netroots Nation Convention and the “partnership” with Coffee Party astroturfers makes for an attractive fundraising base.

But what would they do with the money?

Shortly after the netroots speech, the urgent requests for funding stopped and at some point in early September, the crew reassembled in Plaquemines Parish, ostensibly traveling using the charitable donations solicited by the group and raised during the June-August push.

However, research conducted in preparation for this story was unable to locate a non-profit or charitable organization registered in either the state of California or with the IRS.  Initial research consisted of searches of the California Attorney General’s Registry of Charitable Trusts using various search terms, including Law of the Oceans; starts-with Law; starts-with Project; and includes Project Impact.  The searches, conducted October 3 and 4, 2010, produced no filings consistent with Project Impact’s alleged founder in 2010 or putative status.

Additional research conducted on October 4 and 5, 2010 consisted of queries to the IRS’ Search for Charities database.  Queries included search terms identical to the ones used on the California Attorney General’s website.  The queries again produced no results consistent with the organization’s founders or putative status.

Similar queries were used on the Louisiana Secretary of State’s website, also with zero results.

Project Gulf Impact did not respond to an email request sent to the website’s contact address regarding the organization’s status.

Without access to these filings, and in the absence of financial reports detailing the organization’s sources and uses of funds, it is nearly impossible to determine whether Project Gulf Impact is honorably and legally conducting a charitable, humanitarian effort on the Gulf Coast.  How does a donor know where their money is being spent?  Is it on charitable, humanitarian efforts?

image Do these efforts include a party and BBQ in Port Sulphur, LA?  The snapshot on the right shows a public invitation on Facebook for an event that was held on September 10.  The invitation page shows that as many as 43 people were in attendance.  While a “potluck” party in Port Sulphur is certainly no gala extravagance, an event like that is still not free.  One wonders if fresh Gulf Seafood was part of the menu. One also wonders whether well-meaning donors in faraway places like Ohio and Nevada would approve of their charitable donations being used to entertain a few dozen young adults on a Friday night.

During my online investigations and interviews with residents, officials and knowledgeable sources in the Gulf of Mexico area, including local government, law enforcement and military contacts in Port Sulphur, New Orleans, and Jesuit Bend in Louisiana; Mobile in Alabama and Pensacola/Gulf Breeze in Florida, two other names popped up in connection with Project Gulf Impact:  Casey Nunez of New Orleans and Gregg Hall of Pensacola Beach.  I can find no principal or financial connection between PGI and these two individuals.  Though the two gentlemen were described to me as “colorful” and might be considered unconventional, they appear to be bit players or volunteers whose interests and circle of friends intersected coincidentally with those of PGI. 

In fact, it appears that a lot of people have been caught up in a new truther conspiracy, cooked up by the usual conspiracy hawking suspects and perpetuated by a group of very slick, polished actors through the well-meaning largesse of charitable contributions from the public.  PGI has strong left-leaning connections, including the Coffee Party and the Netroots organization.

It is very difficult to conclude that PGI is a non-partisan, non-political organization with purely humanitarian goals.  Indeed, it appears to be another astroturfing effort organized by the environmental left, with questionable credentials as a non-profit organization.

Again, Project Gulf Impact was contacted prior to publication, and did not respond to a request for information regarding their charitable status.

Page linked by Doug Ross @ Journal.  Thanks!
Page linked by Dan Riehl @ Carnivorous Conservative. Thanks!
The story continues here…

Christine O’Donnell Ad: “I’m not a witch. I’m you.”

I don’t know if this ad is playing in Delaware TV markets, but it should be.  It looks like all the money flowing into her campaign following the September 15 primary upset is being well spent.



This is a positive, issues-oriented ad intended to reach out and conversationally engage the viewer.  Focus groups consistently rate such ads as the most positive.  Incidentally, one of the reasons why Dingy Harry Reid is still in the Nevada Senate race is that he’s been running similarly conversational advertising.

Pay attention to what works, candidates.

Wall Street Journal Report: Up to 23,000 retirees to lose healthcare coverage

The Wall Street Journal isn’t making many friends at Health and Human Services or the White House: in a week’s time, they’ve dropped two bombshells regarding the impacts of Obamacare.  Last week was the revelation that McDonald’s would likely drop its Mini-Med plans due to the new law’s cost ratio requirements.

This week, another shoe drops.  3M says it would be forced to stop offering health insurance plans to its retirees.


image The St. Paul, Minn., manufacturing conglomerate notified employees on Friday that it would change retiree benefits both for those who are too young to qualify for Medicare and for those who qualify for the Medicare program. Both groups will get an unspecified health reimbursement instead of having access to a company-sponsored health plan.

The maker of Post-it notes and Scotch tape said it made the announcement now to give retirees a chance to explore different options during this year's benefit-enrollment period, according to a 3M memo reviewed by The Wall Street Journal. A 3M spokeswoman, Jacqueline Berry, confirmed the contents of the memo.

"As you know, the recently enacted health care reform law has fundamentally changed the health care insurance market," the memo said. "Health care options in the marketplace have improved, and readily available individual insurance plans in the Medicare marketplace provide benefits more tailored to retirees' personal needs often at lower costs than what they pay for retiree medical coverage through 3M.

"In addition, health care reform has made it more difficult for employers like 3M to provide a plan that will remain competitive."


This is not 3M’s first major announcement regarding Obamacare.  In the days following the passage and signing of the law, dozens of publicly traded companies were forced by accounting and SEC rules to announce charges on quarterly earnings because of the tax implications the law imposed. 

3M was forced to announce a $90 million charge against earnings because accounting rules require them to disclose information that could negatively affect earnings in the fiscal quarter they learn about them.  Remember—Obamacare was supposed to “bend the cost curve” down.  Instead, it has already cost US companies billions of dollars in earnings and there is certainly much more of that in store.

This week’s story demonstrates another falsehood used to foist this abomination on the American people:  “If you like your healthcare plan, you can keep it.”

No wonder Democrats are running as far away from Obama and Obamacare as they can get.

Monday, October 4, 2010

Megyn “The Megynator” Kelly delivers another smackdown to Gloria Allred

The MegynatorTM strikes again, this time over the highly questionable motivation and timing behind Allred’s suit alleging that California Gubernatorial candidate knowingly hired an illegal alien as a domestic servant then underpaid her and failed to reimburse her for legitimate expenses.

The MegynatorTM  takes no prisoners, as she exposes Allred’s “left flank.”



Federal probe results in indictments, arrests of key Alabama political figures – UPDATE: Ron Sparks questions timing?

image Federal investigators are holding a 10:00 am news conference today, announcing that a Federal Grand Jury has handed down a basketload of indictments alleging corruption in connection with efforts to pass gambling legislation during the 2010 legislative session.

The probe began last Spring, and federal investigators began notifying potential targets of their status in July.

Arrests are underway today, statewide.

Al.com has the story:


FBI agents swept across Alabama this morning arresting state lawmakers and lobbyists as part of a federal probe into efforts to pass gambling legislation last spring.

The biggest name arrested so far has been VictoryLand owner Milton McGregor, who was arrested at his Montgomery home this morning. 

Also arrested today have been state senators Jim Preuitt, R-Talladega, Quinton Ross, D-Montgomery, Larry Means, D-Attalla, Harri Anne Smith, I -- Slocomb and Montgomery lobbyist Jerrod Massey.

Assistant Attorney General Lanny Breuer and FBI Assistant Director Kevin Perkins are holding a press conference at 10 am central time at Department of Justice headquarters in downtown Washington D.C., where details are expected about the public corruption investigation in Alabama.


Harri Anne Smith was apparently the first arrested.  FBI agents were visiting searching MacGregor’s home at about the same time (approximately 8:00 am CDT).  MacGregor was then arrested.

This is still breaking.  I’ll update as more comes in.

Update I: In response to reader email:  None of the Alabama gubernatorial, congressional or senatorial candidates are involved in this probe.  The probe focused only on attempts to influence voting in the state legislature.

Update II: The full DOJ press release is here.

Eleven have been charged:

  • Milton E. MacGregor (casino owner/gambling proponent)
  • Ronald E. Gilley (casino owner/gambling proponent)
  • Larry P. Means (State Senator, D-Attala)
  • James E. Preuitt (State Senator, R-Talladega)
  • Quinton T. Ross Jr. (State Senator, D-Montgomery)
  • Harri Anne H. Smith (State Senator, I-Slocomb)
  • Jarrod D. Massey (lobbyist)
  • Robert B. Geddie Jr. (lobbyist)
  • Thomas E. Coker (lobbyist)
  • Jarrell W. Walker, Jr. (lobbyist)
  • Joseph R. Crosby (lobbyist)

Update III: Statement emailed by Alabama GOP Chairman Mike Hubbard:

"The ongoing investigation and subsequent arrests should serve as a referendum on the culture of corruption that has been prevalent in Montgomery for far too long. It is our hope that today’s action by the Obama Justice Department will lead to a systematic change in the Alabama Legislature, and one that will put transparency back into the people’s government."

Irony of ironies that the Alabama GOP chair would pair the terms “culture of corruption” and “Obama Justice Department” in the same paragraph and not have one referring to the other.

Update IV: And in another jaw-dropping, WTF moment, Democrat gubernatorial candidate Ron Sparks released the following statement:

“Anyone who loves democracy and freedom should be concerned with the timing of these indictments. Waiting to announce indictments after the election would have had no impact on the cause of justice. The timing of this, regardless of how you feel about it, is suspicious and must be questioned.”

Um, Mr. Sparks…  the Obama Justice Department obtained these indictments from the Grand Jury.  Surely, you aren’t suggesting that Bob Riley somehow controls Eric Holder, too?

Seriously?

UPDATE V: Governor Bob Riley’s office released the following statement:

“An independent federal investigation by the Obama Justice Department has resulted in indictments and arrests surrounding the corrupting influence organized gambling has on the Legislature.

"This is disappointing, but hardly surprising. For many months, Gov. Riley has warned Alabamians that organized gambling is a threat to our state because of its corrupting influence. That’s exactly why Governor Riley has consistently fought the illegal gambling interests."

UPDATE VI: Dr. Robert Bentley, GOP Candidate for Governor, releases his statement:

"Following the announcement today by The Justice Department we must now allow the justice system to take its course. I have been a champion for transparency in government. The indictments handed down today are an example of exactly what is wrong with Montgomery politics. As Governor, I will be a vigilant force against corruption of any kind, regardless of party affiliation. Today's announcement bruises Alabama's reputation. I believe maintaining a clean and open government are the only ways to prevent such things from happening again."

Defeated Democrat offers warning to fellow party members

image Let me preface this by saying that Artur Davis is everything Barack Hussein Obama has pretended to be.  Davis was born in Montgomery, Alabama and raised by two women:  His mother and grandmother.  He excelled in school, earned a scholarship at Harvard University and graduated magna cum laude.  He later earned his J.D. at Harvard and returned to Alabama to practice law.

Davis is a black, centrist Democrat with principled, if often flawed views on policy matters. But he voted against Obama’s landmark healthcare reform act and stood by his vote despite withering criticism from within his own party, especially the Congressional Black Caucus.  Davis was the only member of that Caucus to vote against the bill.

Davis was first elected to represent the 7th Congressional District of Alabama in 2002, defeating long-serving Earl Hilliard in a brutally contested primary.  Hilliard’s chief campaign issue:  That Davis wasn’t “black enough” to represent the 7th District (a heavily Democratic, majority black District in central Alabama). Davis and Hilliard were forced into a runoff, which Davis then won going away.

Davis’ defeat of Hilliard, his centrist positions and his votes on Capitol Hill strained relationships with Alabama and national black Democrat leaders. Those tensions boiled to the top of the 2010 Alabama Gubernatorial Democrat Primary.  Davis’ campaign was a two-headed disaster.  Poor leadership, combined with a determined effort among state Democrats to defeat him, transformed him from a 30-point favorite in the primary into a 24-point loser at the polls.

In a story that ran yesterday in the Birmingham News, Davis says he is closing the door on Alabama politics, but he has a parting shot for his former “allies:”


Davis, on what could be his last functional day as a member of Congress, did not give a 90-minute farewell interview, because that would imply he was leaving with the good-natured hope that others would fare well in his absence.

Instead, Davis, who went from national rising star to the losing end of a landslide back home, said hyper-partisanship in Washington and open hostility from fellow Democrats in Alabama have left him aggrieved and politically homeless.

Davis now says he ran into racism in a primary that is dominated by black voters. He said he lost black votes because black political leaders -- who disliked Davis' centrist record and go-it-alone style -- successfully convinced black voters that a black couldn't win, and this black in particular shouldn't win.

"The narrative caught hold in the black community that a guy who is not going to get white support is vainly trying to receive white votes and is overlooking the interests of blacks to get votes he'll never get," Davis said.

The state's black political organizations, which he beat in 2002 to win the congressional seat and has been adversarial with ever since, also out-maneuvered him. They used his vote against Obama's health care reform legislation as an example of how Davis neglected his black constituents.

Davis described the second "untold" story of his loss. After Obama won the White House, those organizations and the Alabama Democratic Party wanted a role in deciding whom to recommend for federal appointments around the state, the classic patronage spoil for the victor. Davis, however, came up with his own selection process, one that was not based inside the party. And then Davis' picks were more often heeded by the White House than the party's.

"For the U.S. attorney position in Montgomery, there were some in the Democratic Party who wanted that to be filled by someone who would lay hands off the Democratic Party," Davis said. "I was agnostic about who filled the positions but I wanted a process in place to produce candidates who were Democrats but who were merit-based, selected based on their legal ability."

Washington was increasingly less friendly for Davis, too. Political polarization around the country has both parties catering to their extremes, and moderates become pariahs, he said.

"The greatest disappointment these last two years has been that a country that was seemingly coming closer together is now further apart," Davis said.


Democrats in Alabama—and nationally—will be quick to cast Davis’ disillusionment as a case of sour grapes from a sore loser. But I think his warnings about the hyper-partisanship on the left side of the spectrum should have been heeded long ago.

Davis said that his vote against Obamacare was cast based on what he thought was best for the country, and that his process for selecting merit-based appointees to federal offices were meant to find the best qualified Democrats rather than the best connected political hacks.

This is a constitutional republic with a center-right electorate.  In order to accomplish Reaganesque ideals of limited government and spending restraint—ideals that are supported by consistent majorities in public opinion surveys—Republicans will have to reach out to Democrats like Davis.  These are matters of principle, and principled men like Davis are becoming increasingly rare.

Furthermore, while Barack Obama has proven to be an empty suit and an empty promise of Democrat moderation and leadership, Artur Davis exemplifies the kind of substance and principle that once got Democrats elected even in conservative-leaning states and Districts.  You may not agree with them all of the time, but you’re confident that votes and positions are taken based on principle rather than partisanship.

For the record, Davis predicts that Ron Sparks—the Democrat nominee for Governor—will lose to Republican Robert Bentley, ensuring a third four-year term of GOP control of the office.