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archived: 18 - 24 Mar, 2007 Back Next UPDATED: March 21, 2007 GONZALES MUST GO The Raleigh News and Observer pens a good editorial calling for Bush to demand Attorney General Gonzales’ resignation: Supporters of Gonzales have cited the fact that to be a U.S. attorney is to serve at the president's pleasure in a political appointment. It's true that other presidents, upon taking office, have removed U.S. attorneys of different political parties. But the politics apparently involved in this round of firings raises serious concerns about what the White House's intentions were -- namely, that the dismissals had more to do with gaining political leverage than, as claimed by those around Gonzales, addressing issues of competence. Did the president's political advisers figure to seek all the advantages they could find, even if it met messing around in the Justice Department? That's surely what it looks like, and the White House has built a shaky explanation that is fair game for careful scrutiny by Congress. Lawmakers from both parties have expressed understandable frustration with both the administration's conduct and its initial failure to present an accurate account of how the prosecutors came to be axed. Gonzales should have protected the public's interest first and last, though he himself might have fallen out of favor on Pennsylvania Ave. Instead, he has looked more like a political hack trying to get the job done for his friend the president. Bush is known to value loyalty, but here loyalty was excessive and misplaced. Considering the sorry litany of missteps that have occurred on Gonzales' watch at a department with crucially important powers and responsibilities, Bush should seek his resignation immediately. Bush continues his support for Gonzales and by invoking executive privilege, he attempts to thwart proper investigation of the “shaky explanation” for the firings that the N&O rightfully believes is “fair game for careful scrutiny by Congress.” The News and Observer’s rationale should be the case that North Carolina Democrats make to our fellow citizens – every day. FORECLOSURE Bush’s economic policies impact North Carolinians. As the housing market declines nationally, North Carolina does not escape the effects: In North Carolina, 2.31 percent of all first mortgage loans were in foreclosure, while foreclosure proceedings were started on 0.56 percent of loans in the fourth quarter, and 1.19 percent were past due 90 days or more in the same period. Delinquency and foreclosure rates were considerably higher for higher-risk "subprime" borrowers, especially those with adjustable-rate mortgages, in both North Carolina and the nation. Lenders to subprime borrowers - people with blemished credit histories - have been battered. Rising interest rates and weak home prices have made it increasingly difficult for these borrowers - especially those with adjustable-rate mortgages - to keep up with their mortgage payments. Delinquencies and foreclosures in the subprime mortgage market are spiking. The late-payment rate for all subprime loans jumped to 13.33 percent in the fourth quarter, up from 12.56 percent in the prior period and the highest in four years. The delinquency rate for subprime borrowers with adjustable-rate mortgages was even higher - 14.44 percent, also the highest in four years. In North Carolina, 4.18 percent of all subprime loans were in foreclosure in the fourth quarter and 7.97 percent were seriously delinquent, or in the foreclosure inventory for at least 90 days, according to the survey. That compares with 0.57 percent of prime loans in foreclosure and 1 percent seriously delinquent. For FHA loans, 2.34 percent were in foreclosure at the end of the fourth quarter and 6.9 percent were seriously delinquent. For VA loans, 0.94 percent were in foreclosure and 2.49 percent were seriously delinquent. For all loans in North Carolina, 1.19 percent were at least 90 days past due but not in foreclosure, the survey found. The association's report comes as mounting worries about risky mortgages are making investors jittery. Those fears also contributed to a worldwide stock meltdown on Feb. 27, when the Dow Jones plunged 416 points. The message is quite simple; thousands of hard working North Carolinians are losing the American dream. At the heart of their loss is Republican economic policy. _____________________________________________ UPDATED: March 17, 2007 ‘08 North Carolina Democrats are still without a 1st tier candidate to challenge Sen. Dole. Back in February, Public Policy Polling (PPP), surveyed North Carolinians and reached these conclusions: Senator Elizabeth Dole’s approval rating stands at 43%, while 31% disapprove. This is up from 36% approval last month. An association with President Bush’s unpopular troop surge proposal may have hurt her approval last month. Nevertheless, a 43% percent approval rating is still relatively low for a Senator. . . . Dole versus Etheridge? Last month PPP tested a hypothetical Senate race between Senator Dole and Governor Mike Easley. Easley led Dole 44% to 41%. This month we tested Congressman Bob Etheridge against Senator Dole. Right now Dole holds a 45% to 30% lead over Congressman Etheridge. Etheridge clearly does not enjoy the same statewide recognition and popularity as Governor Easley. If he were to enter the Senate race he would start off as an underdog. However, the numbers may not be as rosy for Dole as it may first appear. Conventional wisdom states that an incumbent whose numbers are below 50% is in danger. That is the reality for Senator Dole who is at 45%. Time may also be on the Democrats’ side. During the course of the campaign when the opposing candidate has time to introduce himself to voters across the state, the race will naturally narrow. Etheridge does lead Dole in the one area of the state in which he is well-known and is the base for his congressional district, the Triangle. In the 919 area code Etheridge leads 42% to 41%. Etheridge can also count on more support from the black community. He outpaced Dole among blacks 47% to 12%, but 41% were undecided. If he were to jump in the race, by Election Day, Etheridge should count on a much higher percentage from this traditionally Democratic demographic. Recent history also suggests that a 15% lead this far out from Election Day is not safe. Senator Jim Webb of Virginia trailed Senator George Allen by as much as 25 percentage points only 8 months out from Election Day in 2006 (see Rasmussen Reports monthly tracking poll). We are currently 20 months from Election Day 2008. A Garin-Hart-Yang poll pegs Sen. Dole’s approval rating at 49 percent (either "excellent" or "good") and a 46 disapproval rating ("fair" or "poor" ). Her reelect numbers are 35 percent, 23 percent would consider another candidate and 23 percent would definitely vote for someone else. This thoughtful evaluation by Congressional Quarterly recently appeared in the New York Times: [A]s Dole prepares for a re-election campaign in 2008, she faces a dramatically altered political landscape, colored by strong public disapproval of Bush and the war in Iraq that he launched early in Dole’s Senate term. And Dole’s own political savvy has been under question, even from some Republicans, since what appeared to be a plum job — overseeing the 2006 GOP Senate campaign as chairwoman of the National Republican Senatorial Committee (NRSC) — left her at the scene of a party debacle in which Democrats scored a net gain of six seats and took control of the chamber. None of this means Dole is on the ropes as she prepares to seek a second term. . . . Dole’s biggest immediate chore going into 2008 may be refurbishing her reputation for fundraising prowess that she established in her 2002 campaign, when she spent $13.6 million to defeat Democrat Bowles (who spent $13.3 million). Dole, after spending the past two years mainly trying to raise money for other candidates, has some catching up to do for her own campaign: She raised a modest $1.4 million during the 2005-06 cycle and had just $245,000 in remaining cash on hand as of Dec. 31. And while the Republican National Committee and the party’s House campaign unit, the National Republican Congressional Committee, far outdistanced their Democratic competitors at fundraising for the 2006 campaign, the NRSC ran behind the Democratic Senatorial Campaign Committee, headed by New York senator and money-raising mastermind Charles E. Schumer. Dole, however, is unlikely to incur direct political damage in her North Carolina race from her NRSC stint. The campaign chairmanship is largely of interest to political insiders and probably did not draw much attention from her home state voters. And Dole’s efforts to forestall Republican losses in a year in which events and public sentiment worked so strongly to the party’s disadvantage was akin to trying to hold back the tide. . . . A Survey USA poll conducted just after the elections in November showed Dole with a decent if not stellar job rating: 52 percent approval and 40 percent disapproval. But two more recent polls, by the North Carolina-based Public Policy Institute, suggest signs of vulnerability. A survey released in January showed Dole trailing Easley in a hypothetical matchup by 44 percent to 41 percent. Another poll by the same group showed her leading Etheridge, 45 percent to 30 percent; incumbents polling below 50 percent early in a campaign cycle are often viewed as vulnerable. . . . Thad Beyle, a professor of political science at the University of North Carolina-Chapel Hill, said he would regard Dole as “slightly favored” to win re-election at this early stage in the campaign. He said, though, that says either Etheridge, who has a center-right posture, or Miller, who has a support base among more liberal voters, would make a credible challenger. “That would be an interesting fight,” he said of those potential matchups. The Senate race likely will be affected by sharing the ballot with next year’s presidential election and the high-profile open seat race for governor: Easley is barred by state law from seeking a third consecutive term. Beyle also indicated that Dole’s fortunes could hinge on Bush’s ability to stage a rebound of his own, a factor inevitably intertwined with prospects for success in Iraq. And Dole could face political consequences for her steadfast support of the president’s policies concerning the controversial war. “Iraq is a big problem in this state,” Beyle said. Both CQ and PPP suggest that Sen. Dole can be beat – an assessment in which TPJ concurs. So, where’s the candidate? Gov. Easley has rejected the proposition at every opportunity, but is still being recruited by the Democratic Senatorial Campaign Committee. Rep. Miller recently told a gathering of political “bloggers” that he would not consider running without assurances of $20 Million Dollars, the sum he believes it would take to mount a winning campaign. Rep. Etheridge has expressed interest in the Senate before, but never mounted a bid. Democrats are now in the majority in the US House and are likely to retain majority status in 2008. Rep. Etheridge could decline to run based on his rising seniority in the US House. At the moment, the situation remains unchanged. Democrats have a critical Senate race they might win; but no candidate moving forward. Strange times indeed.
NC GOOD FOR BUSINESS
There's
just too much good news about North Carolina's business climate coming
out in the
Triangle Business Journal.
Apparently we're very competitive
when it comes to attracting business. Don't tell the John Locke
Foundation until Monday - let them enjoy the weekend. Businesses in North Carolina enjoy the lowest tax burden in the United States, according to a study prepared for the Council on State Taxation. The
report, prepared by tax experts at Ernst & Young, found that combined
local and state taxes paid by North Carolina businesses amount to 3.9
percent of the gross state product. That rate tied North Carolina with
four other states - Connecticut, Delaware, Oregon and Virginia - as
having the lowest U.S. business tax burden. North Carolina is the fourth most business-friendly state in the country, according to a new study. Virginia
took the top spot in the study, done by Pollina Corporate Real Estate
Inc., a site-relocation company. The results were based on 28
measurements including taxes, human resources, right-to-work
legislation, energy costs and jobs lost or gained. Site
Selection cited North Carolina's clusters of biotechnology, banking and
tourism, along with what one consultant termed an "outstanding quality
of life." THE ONE THAT GOT AWAY U.S. Attorney Gretchen C.F. Shappert in Charlotte was on Bush’s Federal Prosecutor “hit list,” but in the end she was not discharged. In documents released as a part of the Congressional probe into the firing of eight Federal prosecutors Shappert: was among the attorneys whom federal Justice Department officials wanted removed as part of a sweeping housecleaning this winter, according to e-mail messages released this week to the House and Senate judiciary committees. Shappert, a Republican who has been on the job since May 2004, was on a list under the category, "USAs [U.S. attorneys] We Now Should Consider Pushing Out," according to the e-mail messages. In the end, she was allowed to stay on. It is unclear why Shappert was under scrutiny. But among her prosecutions in the past year was that of Sam Currin, a top figure in North Carolina Republican circles. Currin and two co-defendants were indicted in April. Currin was charged with seven felonies, including tax fraud conspiracy, perjury, obstruction of justice and witness tampering in a fraud case involving offshore investments. He pleaded guilty to three charges in November and is awaiting sentencing. Currin is a former U.S. attorney who worked in the Raleigh office covering the Eastern District. He also is a former Superior Court judge and former chairman of the state Republican Party. . . . This week, the agency released more than 150 pages of e-mail messages and documents to the House and Senate judiciary committees investigating the firings. They include e-mail discussions of which attorneys to remove and how to deal with repercussions. Shappert said Thursday evening that she had no idea she was on the agency's list. "I have received no political pressure on anything," she said. "This office has had outstanding success under my leadership. And I am not concerned about losing my job." Shappert wouldn't comment on the Currin case. In the e-mail messages, Kyle Sampson, chief of staff to U.S. Attorney General Alberto Gonzales, detailed a list of attorneys who could be removed from their posts. In a Sept. 13 e-mail message to White House counsel Harriet Miers, Sampson broke down the names into several categories, including those who were leaving on their own, those already being "pushed out," and those who should be next to go. Shappert's name was in the last group, "Section V." Her name was whited-out from e-mail messages released to the committees. But another e-mail message makes reference to the list: "I recommend removing W.D.N.C. from Section V," responded Monica Goodling, the Justice Department's liaison to the White House. Those initials stand for Western District of North Carolina, where Shappert is the U.S. attorney. "There are plenty of others there to start with," Goodling continued, "and I don't think she merits being included in that group at this time." While Shappert was not ultimately dismissed, the News and Observer article picks up on the probable explanation for her inclusion on the list to begin with – prosecuting a high level Republican. This fits into the pattern that is emerging from the Congressional hearings; Bush acolytes were lining up to discharge Federal prosecutors who they perceived were not sufficiently aggressive towards Democrat suspects or were too aggressive in prosecuting Republicans. Obviously, some in the administration tried to restrain the reach of Bush’s politicization of the administration of justice and Shappert was removed. North Carolinians should not forget the Republican effort to tilt the justice system in North Carolina.
Last Update: 03/25/2007 |
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