Writing for the Daily Beast Tonight.


The sudden running away of Judd Gregg ("Oops, I made a mistake...") from the Commerce nomination is one of those Washington stories that makes for fun speculation. I passed the

evening happily writing my thoughts and will post them tomorrow or soon enough, however what is left over is the puzzle as to what a strange ceremony we have with regard the executive branch. Congress doesn't make that much sense, but the idea that you get to elect (and reelect) a human to represent a region at least stands up to logic. Representative government. But when it comes to the executive branch, what is the thinking of Cabinet posts? We have to pretend that the secretary is well-educated for the job? And that his or her appointment demonstrates a thoughtful result? These are patronage jobs, everyone of them. Not about civil service, but rather about civil plunder. Commerce and HHS are the two big plumbs, but Homeland has become a sinkhole of favoritism. This was less obviously a problem during the Wall Street boom 1988-2008, when the Dow went from 1900 to 13,000, and a civil service job in the hilariously sweaty and traffic-choked District was regarded as a booby prize or, for the homegrown, as going to work at the plant. But now, with the global downturn, with what I now routinely call the Great Depression, the Remake, the patronage jobs in Washington look miraculous. Healthcare, vacations, low workload, much opportunity to move to other departments and up, long breaks for retraining and seminars, and opportunity to moonlight and consult either during or after you network to the right budget line. There will be demands on the jobs. The layoffs among the elite are just starting. We are shedding 500k jobs per month and accelerating. The Wall Street Journal features a bulletin that the economist warlocks who were heretofore projecting recovery in the third quarter are now hedging that there may not be recovery until 2010. At the present rate, we will be down another four million jobs. Overmuch? Let's kitchensink the crisis. We are accelerating downward at the same rate as in the gritty recession of 1974-75. That decline stopped suddenly. We shall see. Soon.
All The Lawyers.
Why those Washington patronage jobs may suddenly be fought for is the news that Thursday was Black Thursday with massive layoffs at many famous firms and lots of medium and
small firms. Lawyers and staff. Sweeping. And positions are being eliminated for summer interns. These are the well-educated, the jumbo mortgages, the private school bills and vacation travelers and new car buyers. Grapes of Wrath time for them, heaping the kids and the Macbooks into the SUV and heading like the Joads to DC to call on Commerce, HHS, and Homeland. Maybe bunk in with the brother's family or a rented house. Job search. Those Commerce jobs have great healthcare, and there are fewer cars on the road now, no one driving aimlessly, no shopping or hank-panky. The lawyers in search of a place to hide out during the storm. Maybe they can try politics (Gregg's job looks easy, just say yes and no goofily and randomly and make statements that you don't believe), I hear there are openings every two years and that the competition is hodge-podge. The sharpest observation I found today was again posted on the Calculated Risk site, a lawyer watching for the reaper:
Josh writes:
I'm in this hated profession and monitoring this stuff for my firm.
The layoffs and salary freezes and bonus reductions all started last year, so today was just a really bad day in the profession among many merely bad days.
The real news in my mind today was that a Philly firm (Wolf Block) reduced associate salaries by 10%.
There were freezes up to now, but no affirmative reductions that I know of.
I check Calculated Risk and Mish and Naked Capitalism and Minyanville a few times a day at work, and feel much better for it. Our firm (150 or so employees total) is determined to roll with the punches for the clients who pay us. They have budget problems, we have budget problems.
We'll see if other firms follow suit with the salary cuts. I suspect quite a few will.
Like everything else in this country, the biggest problem in the dynamic is debt. Law students often take on huge debts for school, and then have to go to private practice regardless of their original intent in order to earn enough to pay their debts.
Probably about the same problem as every other area in the U.S. where kids are lured into debt with false promises of riches and happiness.
Josh | 02.12.09 - 11:31 pm | #


BANKERS BEFORE CONGRESS
The show trial in Washington would have made some sense if one Representative had asked each banker: How would you solve the problem of toxic assets? And could you have your staff send us a more detailed plan later in the week?
Regardless of how you think the bankers did, they are some of the brightest people on Wall Street -- and anyone of them is certainly as capable, or more capable, than Geithner.
By the idiocy of the questions, clearly our representatives don't have a clue about what needs to be done.
Gregg's flip flop seems admirable in light of the Oval Office's census grab.
Gregg's departure is not astounding to me... After i had heard a tale of General Zini and the callous way in which the Obama administration demised him from the potential ambassador post for Iraq.
I concur with Mike - Geitner's appointment was/is a horror show in pre-production. The only saving grace is he(Geitner) is not Hank Paulson... the man who scared a tired president into over reaction.
May I just add that the crushing "Fear-Mongering" factor that is now being preformed to near perfection by our politicians is going to came back to haunt them all if ever a real alarm needs to come through.
Pat - You're referencing the "boy who called wolf" of course. Honestly, with this bunch one never knows. If you follow the signs to New York, you'll end up in New York. I don't think they'll be satisfied just getting to New York. What lies beyond communism? Staten Island?
-Peter- Communism is the ultimate destination true ...but I am probably more concern the fall out of unintended consequences... Evidently a true event shall threaten the nation and/or it's interest in a very significant way and we will have become so accustomed to the alarms and sirens that DC crowd rattle... we will fail to rally and thus fail to stem whatever the event will bring... and it may be to great a cost to conceive