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For Immediate Release
September, 15 2008, 03:00pm EDT
Contact:
Sam Husseini, (202) 347-0020, (202) 421-6858;
or David Zupan, (541) 484-9167
Wall Street and Politics
JAMES K. GALBRAITH
Galbraith is Lloyd M. Bentsen Jr. chair in government/business
relations at the Lyndon B. Johnson School of Public Affairs at the
University of Texas at Austin. His latest book is The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too.
WASHINGTON
JAMES K. GALBRAITH
Galbraith is Lloyd M. Bentsen Jr. chair in government/business
relations at the Lyndon B. Johnson School of Public Affairs at the
University of Texas at Austin. His latest book is The Predator State: How Conservatives Abandoned the Free Market and Why Liberals Should Too.
Galbraith said today: "Revolutions devour their children. Deregulation
has been the public faith of the financial sector since Reagan. Under
Bush II, waves of predatory finance in housing were aggressively
promoted by Alan Greenspan, by McCain's closest economic adviser Phil
Gramm, and by so-called regulators who systematically subverted the
public interest. For a year, the Fed and Treasury have been propping up
the markets in the hope that this system would recover on its own. It
will not, and today's [Lehman] collapse should mark the end of that
mindset."
A recent interview with Galbraith is at The Real News.
MAX FRAAD WOLFF
An economist and writer, Wolff is an instructor at the Graduate Program
in International Affairs at the New School University. He is a frequent
contributor to Huffington Post, Asia Times and The Indypendent.
Wolff says that the decision to not bail out Lehman is a political and
public relations one; he also states that a Federal Reserve rate cut
tomorrow -- widely rumored on Wall Street -- would amount to a massive
subsidy.
A recent interview with Wolff is at Democracy Now.
DOUG HENWOOD
Henwood is author of the book Wall Street and editor of Left Business Observer.
He said today: "The weekend's financial emergency and Wall Street's
Monday morning swoon in reaction to it are further proof that the
housing bust and its fallout just won't go away. Every time it looks
like there's been a resolution -- Bear Stearns, Freddie and Fannie --
there's only more to come. This melodrama has more false endings than a
bad horror movie. The authorities are scrambling for solutions,
improvising as they go along. My guess is that this has more to run,
and the structural problems of the U.S. economy (maldistribution of
income, excessive borrowing, energy profligacy, etc.) are the
underlying causes. Until those are addressed, we're going to face years
of financial problems, economic stagnation, an eroding job market, and
strains on living standards. And it looks like we're exporting these
problems to the rest of the world. But our political system seems
unable to discuss these issues seriously."
SHEILA KRUMHOLZ
MASSIE RITSCH
Krumholz is executive director and Ritsch is communication director of the Center for Responsive Politics, which operates the OpenSecrets.org
web page featuring in-depth information on money in politics. According
to OpenSecrets.org, the top recipients from PACs and individuals
associated with parts of the financial sector for the 2007-2008
election cycle are:
Commercial Banks:
Barack Obama: $1,884,358
John McCain: $1,703,678
Hillary Clinton: $1,572,508
Mitt Romney: $798,401
Rudolph Giuliani: $765,001
Insurance Companies:
John McCain: $1,312,155
Hillary Clinton: $1,262,409
Barack Obama: $1,147,886
Rudolph Giuliani: $887,750
Christopher Dodd: $829,106
A nationwide consortium, the Institute for Public Accuracy (IPA) represents an unprecedented effort to bring other voices to the mass-media table often dominated by a few major think tanks. IPA works to broaden public discourse in mainstream media, while building communication with alternative media outlets and grassroots activists.
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Scale of Musk's DOGE Conflicts of Interest 'Should Alarm Every American'
"The wealthiest man in the world is working to dismantle the very same federal departments and agencies tasked with overseeing and placing checks on his businesses," says Public Citizen in a new analysis.
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Elon Musk, the world's richest person and de facto head of the Trump administration's so-called Department of Government Efficiency, "has had a direct business interest in over 70% of the agencies and departments targeted by DOGE since its inception," according to an analysis published Thursday by a leading U.S. consumer advocacy group.
The Public Citizen report, titled Duplicitous Oligarchy Grifting Endlessly, "maps out the entities DOGE has targeted and identifies which ones carry a known conflict of interest for Elon Musk's business entanglements" as the executive office leads the Trump administration's purge of federal agencies.
"The wealthiest man in the world is working to dismantle the very same federal departments and agencies tasked with overseeing and placing checks on his businesses," the report states. "He also now is adjacent to and could potentially access sensitive and potentially proprietary information from his biggest competitors in the various industries that have made him wealthy. He also has personal business interests that could shape what his DOGE project considers ripe for cuts."
Elon Musk's DOGE has spent the last several months dismantling the departments & agencies that regulate HIS businesses. Our report found that Musk has a direct business interest in over 70% of the agencies & departments DOGE targeted. The conflicts of interest are endless.
— Public Citizen (@publiccitizen.bsky.social) May 8, 2025 at 11:46 AM
Elizabeth Beavers, director of Public Citizen's Congress Watch, said in a statement that "it should alarm every American that the wealthiest man in the world has spent the last several months dismantling the same departments and agencies tasked with regulating his businesses."
"Musk's role as the most powerful person in government makes it highly unlikely that any regulator will crack down on his corporations and surely will make agency leaders look more favorably at Musk companies as potential government contractors," Beavers added.
The report considers Musk—who has signaled he will leave DOGE—to have a conflict of interest with a federal agency when one of his companies has received contracts or grants from the department, has an interest in its proprietary data, and is subject to its regulation or enforcement regime.
Public Citizen's analysis highlights interests with federal agencies including:
- Consumer Financial Protection Bureau, which Musk wants to abolish, would be in charge of regulating a proposed payments processing partnership between Visa and Musk's social media platform X;
- Department of Justice, which is investigating electric automaker Tesla and possibly Musk as its CEO;
- Federal Aviation Administration, which regulates Musk's SpaceX;
- Food and Drug Administration, where some of the more than 1,000 fired staffers were reviewing Musk's Nueralink brain implants;
- National Aeronautics and Space Administration, which has awarded SpaceX approximately $15 billion in contracts;
- National Highway Traffic Safety Administration, which regulates Teslas, was hit with a 10% workforce reduction since President Donald Trump took office;
- Securities and Exchange Commission, which has ongoing enforcement actions against Musk, including fines as high as $150 million for failing to file disclosure forms regarding shares of Twitter, which he bought in 2022; and
- United States Agency for International Development, which was investigating whether Russia had improperly gained access to Musk's Starlink satellite internet system.
Musk—whose companies have tens of billions of dollars worth of government contracts—also has conflicts of interest with the departments of Defense, Agriculture, and Energy. SpaceX, for example, holds Pentagon contracts worth around $8 billion, including nearly $6 billion for the National Security Space Launch Phase 3 Lane 2 program.
Critics have laughed off the White House's assertion that Musk would self-police his conflicts of interest by recusing himself when DOGE and his business interests overlap.
"The report's findings make clear that this approach is deeply and incurably flawed—and that urgent action by Congress is required to safeguard the government from Musk's self-dealing and grift," Public Citizen said.
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As of Thursday, the Billion Dollar Weather and Climate Disasters database on the National Oceanic and Atmospheric Administration's (NOAA) website was replaced with a message saying there have been no such events in 2025 through April 8.
That flies in the face of an analysis by the National Centers for Environmental Information, which has maintained the database and said before it was taken down that six to eight billion-dollar climate disasters have happened so far this year, including the wildfires that devastated parts of Los Angeles in January and caused an estimated $150 billion in damage.
The World Weather Attribution said in late January that planetary heating, fueled by greenhouse gas emissions, caused weather conditions in Southern California that made the fires 35% more likely.
Hundreds of people have been laid off from NOAA in recent weeks as the so-called Department of Government Efficiency, led by billionaire tech CEO Elon Musk, has pushed to slash government spending, and those who have lost their jobs include scientists who helped maintain the database.
NOAA spokesperson Kim Doster toldThe Washington Post that in addition to staff changes, "evolving priorities" were also partially behind the retiring of the database, which will now show disasters that occurred only between 1980-2024.
Between 2020-24, the number of billion-dollar disasters averaged 23 per year, compared to just a few per year in the 1980s.
"This Trump administration move is the dumbest magic trick possible: covering their eyes and pretending the problem will go away if they just stop counting the costs. Households across the country already have to count these costs at their kitchen table as they budget for higher insurance costs and home repairs. Families and retirees dipping into their savings or going bankrupt to recover from wildfires and hurricanes know what disasters cost," said Carly Fabian, senior insurance policy advocate with Public Citizen's Climate Program. "Hiding the national tallies will only undermine our ability to prepare and respond to the climate crisis. Deleting the data will exacerbate the devastating delays in acting to slow climate change, and the impacts it is having on property insurance and housing costs."
NOAA's "evolving priorities" have also included decommissioning other datasets, including one tracking marine environments and one tracking ocean currents.
Without NOAA's Billion Dollar Weather and Climate Disasters database, Jeremy Porter, co-founder of the climate risk financial modeling firm First Street, toldCNN that "replicating or extending damage trend analyses, especially at regional scales or across hazard types, is nearly impossible without significant funding or institutional access to commercial catastrophe models."
"What makes this resource uniquely valuable is not just its standardized methodology across decades, but the fact that it draws from proprietary and nonpublic data sources (such as reinsurance loss estimates, localized government reports, and private claims databases) that are otherwise inaccessible to most researchers," he said.
Chris Gloninger, a meteorologist who resigned from an Iowa news station after receiving threats for his frank, science-based coverage of climate disasters, said the retiring of the database suggests the Trump administration is "okay with spending billions of dollars on disasters."
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Following reporting about the behavior of U.S. Sen. John Fetterman—including concerns voiced by current and former staff have concerns about the mental wellbeing of the Democratic lawmaker from Pennsylvania—a growing number of political observers are openly questioning his ability to serve in public office.
A story in New York Magazine last week featuring the concern by staffwas followed by new Associated Pressreporting Thursday, which recounted a recent meeting between Fetterman and representatives from a teachers union that went awry when Fetterman began shouting and asking why "everybody is mad at me."
"Why does everyone hate me, what did I ever do," Fetterman reportedly said, according to someone who was briefed on what had taken place, the AP reported. A staff member ended the meeting and ushered the visitors out, and then broke down crying in the hallway.
Fetterman bested Mehmet Oz, the current head of the Centers for Medicare & Medicaid Services, in a race for the U.S. Senate in 2022, despite suffering a stroke while on the campaign trail. In 2023, after being sworn into the Senate, Fetterman checked himself into the hospital to seek treatment for clinical depression, and drew praise for being open about his diagnosis and seeking care.
His standing among progressive supporters has also soured over the past year and a half in part due to his unwavering support for Israel during the country's deadly military campaign in Gaza.
Fetterman was also the only senate Democrat to fly down to Mar-a-Lago and meet with U.S. President Donald Trump following Trump's victory in 2024.
Jeet Heer, the national affairs correspondent for The Nation, reacted to the AP's reporting with expressions of concern and suggested it may be time for the Democrat to step aside.
"We can agree or disagree on Fetterman's politics (I'm not a fan of his shift)," wrote Heer, "but I don't see how anyone can look at what's happening on a human level, to this man and his family, and not think that the best thing for him would be to resign so he can look after himself better."
According to New York Magazine, 14 months after Fetterman's discharge from the hospital, his former chief of staff Adam Jentleson, sent a long email to the medical director who had overseen Fetterman's care, writing that he thought Fetterman was on a "bad trajectory" and sharing concerns that if nothing changed, Fetterman "won't be with us for much longer."
In the email, Jentleson said he was concerned that Fetterman appeared not to be taking his meds, that he was displaying megalomania and conspiratorial thinking, "lying in ways that are painfully, awkwardly obvious to everyone in the room," and engaging in "repetitive and self centered monologues."
To the medical director, Jentleson also detailed that Fetterman had purchased a gun, engaged in a pattern of self isolation, and that he drove his car recklessly to the point that staff would not ride in the car with him.
"Former and current staffers paint a picture of an erratic senator who has become almost impossible to work for and whose mental-health situation is more serious and complicated than previously reported," the magazine reported.
"Jesus," wrote Aaron Regunberg, a progressive policy advocate wrote on social media in response to the reporting," John Fetterman should not be a U.S. Senator."
Jonathan Cohn, another progressive activist, commented on his personal X account that Fetterman was "creating an unsafe environment for his staff and constituents, and that makes him unfit for office."
On Tuesday, speaking to CNN, Fetterman called the article in New York Magazine a "one-source hit piece, and it involved maybe two or three and anonymous disgruntled staffers saying just absolute false things."
Few Democrats have come to Fetterman's aid in the wake of the reporting. There's been increased private talks about primary challenges to Fetterman, perPolitico, and according to the outlet "some Pennsylvania Democrats have begun to quietly review the rules about what would happen if he stepped down and whispered about potential replacements."
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