Democratic Disconnect

Noonan article:

The first thing I learned in journalism is that every story has a name. At WEEI News Radio in Boston, the editor would label each story with one word, called a "slug," and assign a writer to write it for air. This week's devastating earthquake would be slugged "Haiti." A story about a gruesome murder might be "Nightmare."

We're at the first anniversary of the inauguration of President Barack Obama, and the slug, the word that captures its essence, is "Disconnect."

This is, still, a surprising word to use about the canny operatives who so perfectly judged the public mood in 2008. But they haven't connected since.

There is a disconnect, a detachment, a distance between the president's preoccupations and the concerns of the people. There's a disconnect between his policy proposals and the people's sense, as expressed in polls, of what the immediate problems are.

I'm not referring to what is being called the president's rhetorical disconnect. In this criticism, he is not emotional enough when he speaks, he doesn't wear his heart on his sleeve, he is aloof, like a lab technician observing the movements within a petri dish called America. It may be true that this doesn't help him, but so what? In a successful presidency, his cool demeanor would be called an interesting facet, not a problem. And we don't really need presidents to move us, when you think about it. We need them to lead, and in the right direction.

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Barbara Kelley
.Nor am I referring to an iconic disconnect. In this criticism, the president refuses to or is unable to act as a paternal figure. "A president is a father," say these critics. "He must comfort us." But, actually, your father is your father. Voters didn't hire Mr. Obama to play the old dad in the MGM movie. In any case he always seemed like the bright older brother, not the father. At the end of the day you, being a grownup, don't need him to be your daddy, do you?

You want a competent chief executive with a deep and shrewd sense of the people. Americans want him to be on the same page as they are. But he's on a different page, and he may in fact be reading a different book. Thus the latest Quinnipiac poll, which puts his approval/disapproval at a descending 45% to 45%. Pure hunch: The approval number is probably slightly high because people don't want to disapprove of their new president—the stakes are so high!—and don't like telling pollsters they disapprove of him.

The real story is that his rhetorical and iconic detachment are harped on because they reflect a deeper disconnect, the truly problematic one, and that is over policy. It doesn't really matter how he sounds. It matters, in a time of crisis, what he does. That's where the lack of connection comes in.

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.The people are here, and he is there. The popularity of his health-care plan is very low, at 35% support. Someone on television the other day noted it is as low as George Bush's popularity ratings in 2008.

Yet—and this is the key part—the president does not seem to see or hear. He does not respond. He is not supple, able to hear reservations and see opposition and change tack. He has a grim determination to bull this thing through. He negotiates each day with Congress, not with the people. But the people hate Congress! Has he not noticed?

The people have come alive on the issue of spending—it's too high, it threatens us! He spends more. Everywhere I go, I hear talk of "hidden taxes" and a certainty that state and federal levies will go up, putting a squeeze on a middle and upper-middle classes that have been squeezed like oranges and are beginning to see themselves as tired old rinds. Mr. Obama seems at best disconnected from this anxiety.

The disconnect harms him politically, but more important it suggests a deepening gulf between the people and their government, which only adds to growling, chafing national discontent. It also put the president in the position, only one year in, only 12 months into a brand-new glistening presidency, of seeming like the same old same old. There's something tired in all this disconnect, something old-fashioned, something sclerotic and 1970's about it.

And of course the public is reacting. All politicians are canaries in coal mines, they're always the first to feel the political atmosphere. It was significant when the Democrats lost the governorships of Virginia and New Jersey two months ago. It is significant that a handful of House and Senate Democrats have decided not to run this year. And it is deeply significant that a Republican state senator in Massachusetts, Scott Brown, may topple the Democratic nominee to fill Ted Kennedy's former seat, Martha Coakley. In a way, the Republicans have already won—it's a real race, it's close, and in "Don't blame me, I'm from Massachusetts"!

Mr. Brown's whole story right now is not about disconnect but connect. Massachusetts has an 8.8% unemployment rate, and graduates of the commonwealth's great universities can't find work. An old Boston Republican hand said of the race, "It's 100% about policies—health care, taxes, what's the plan on the economy?" Mr. Brown charges that Ms. Coakley's support for cap and trade and health care will amount to $2 trillion in taxes in the next five years.

Ms. Coakley has the advantage—Massachusetts is the heart of blue-state America—but in a way her advantage is her curse. Because she is the candidate of a party that for 40 years has been used to winning, reigning and winning again, she looks like the same old same old, a standard old-line liberal, the frontwoman for a machine, a yes woman for the Obama-Pelosi era.

It is interesting that Ms. Coakley, too, has been told by pundits the past week that her problem is that she's not emotional enough. She should show passion and fire! She should cry like Hillary!

This comes not only from pundits but normal people, and if you contemplate the meaning it is, weirdly: You're not good enough at manipulating us! We want more theatrics!

Both national parties are trying to pour in money and resources, but the most obnoxious intrusion must have been the fund-raising letter this week from New York's Sen. Charles Schumer, who tried to rouse the troops by calling Mr. Brown a "far-right teabagger." Does that kind of thing even work anymore? Doesn't name calling put off anyone not already predisposed to agree with it?

In a time when the people of Massachusetts have real concerns about their ability to make a living, stuff like the Schumer letter is just more evidence of a party's disconnect.

Politics is about policy. It's not about who's emotional and who cries or makes you cry. It's not about big political parties and the victories they need in order to rule. It's not about going on some ideological toot, which is what the health-care bill is, hoping the people will someday see and appreciate your higher wisdom.

In a way, Mr. Obama's disconnection is a sign of the times. We are living in the age of breakup, with so many of the ties that held us together loosening and fraying. If the president wants to lead toward something better, he should try listening. If you can't connect through the words you speak, at least you can do it through your ability to hear.

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Recent Columns.Noonan: Slug the Obama Story 'Disconnect'
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Peggy Noonan is a columnist for The Wall Street Journal whose work appears weekly in the Journal's Weekend Edition and on OpinionJournal.com.

She is the author of eight books on American politics and culture. The most recent, "Patriotic Grace," was published in October 2008. Her first book, the bestseller "What I Saw at the Revolution: A Political Life in the Reagan Era," was published in 1990.

She was a special assistant to the president in the White House of Ronald Reagan. Before that she was a producer at CBS News in New York. In 1978 and 1979 she was an adjunct professor of journalism at New York University.
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FD HIDDEN DIV

This Government can't get it right

U.S. Loan Effort Is Seen as Adding to Housing Woes
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LinkedinDiggFacebookMixxMySpaceYahoo! BuzzPermalink By PETER S. GOODMAN
Published: January 1, 2010
The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.

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Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly argue that the program, Making Home Affordable, has raised false hopes among people who simply cannot afford their homes.

As a result, desperate homeowners have sent payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.

Some experts argue the program has impeded economic recovery by delaying a wrenching yet cleansing process through which borrowers give up unaffordable homes and banks fully reckon with their disastrous bets on real estate, enabling money to flow more freely through the financial system.

“The choice we appear to be making is trying to modify our way out of this, which has the effect of lengthening the crisis,” said Kevin Katari, managing member of Watershed Asset Management, a San Francisco-based hedge fund. “We have simply slowed the foreclosure pipeline, with people staying in houses they are ultimately not going to be able to afford anyway.”

Mr. Katari contends that banks have been using temporary loan modifications under the Obama plan as justification to avoid an honest accounting of the mortgage losses still on their books. Only after banks are forced to acknowledge losses and the real estate market absorbs a now pent-up surge of foreclosed properties will housing prices drop to levels at which enough Americans can afford to buy, he argues.

“Then the carpenters can go back to work,” Mr. Katari said. “The roofers can go back to work, and we start building housing again. If this drips out over the next few years, that whole sector of the economy isn’t going to recover.”

The Treasury Department publicly maintains that its program is on track. “The program is meeting its intended goal of providing immediate relief to homeowners across the country,” a department spokeswoman, Meg Reilly, wrote in an e-mail message.

But behind the scenes, Treasury officials appear to have concluded that growing numbers of delinquent borrowers simply lack enough income to afford their homes and must be eased out.

In late November, with scant public disclosure, the Treasury Department started the Foreclosure Alternatives Program, through which it will encourage arrangements that result in distressed borrowers surrendering their homes. The program will pay incentives to mortgage companies that allow homeowners to sell properties for less than they owe on their mortgages — short sales, in real estate parlance. The government will also pay incentives to mortgage companies that allow delinquent borrowers to hand over their deeds in lieu of foreclosing.

Ms. Reilly, the Treasury spokeswoman, said the foreclosure alternatives program did not represent a new policy. “We have said from the start that modifications will not be the solution for all homeowners and will not solve the housing crisis alone,” Ms. Reilly said by e-mail. “This has always been a multi-pronged effort.”

Whatever the merits of its plans, the administration has clearly failed to reverse the foreclosure crisis.

In 2008, more than 1.7 million homes were “lost” through foreclosures, short sales or deeds in lieu of foreclosure, according to Moody’s Economy.com. Last year, more than two million homes were lost, and Economy.com expects that this year’s number will swell to 2.4 million.

“I don’t think there’s any way for Treasury to tweak their plan, or to cajole, pressure or entice servicers to do more to address the crisis,” said Mark Zandi, chief economist at Moody’s Economy.com. “For some folks, it is doing more harm than good, because ultimately, at the end of the day, they are going back into the foreclosure morass.”

Mr. Zandi argues that the administration needs a new initiative that attacks a primary source of foreclosures: the roughly 15 million American homeowners who are underwater, meaning they owe the bank more than their home is worth.

Increasingly, such borrowers are inclined to walk away and accept foreclosure, rather than continuing to make payments on properties in which they own no equity. A paper by researchers at the Amherst Securities Group suggests that being underwater “is a far more important predictor of defaults than unemployment.”