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Good Thing the Democrats Forced That Vote on the Ryan Plan

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Most of what I have to say about Mitt Romney’s pick of Paul Ryan I said on Virtually Speaking Sunday. I think the Ryan pick will hurt Mitt, and I think it opens up an opportunity for progressives to even box Obama in.

But I am enjoying the response from Republicans, who almost immediately started bad-mouthing the pick. First there was the BuzzFeed story–less than 48 hours after the pick!–describing how the political pros in Mitt’s staff opposed the pick. And now Politico describes the opinions of some three dozen Republican operatives, all of whom except Mary Matalin are queasy about the choice. (The Hill has a similar story.)

In more than three dozen interviews with Republican strategists and campaign operatives — old hands and rising next-generation conservatives alike — the most common reactions to Ryan ranged from gnawing apprehension to hair-on-fire anger that Romney has practically ceded the election.

It is not that the public professions of excitement about the Ryan selection are totally insincere. It is that many of the most optimistic Republican operatives will privately acknowledge that their views are being shaped more by fingers-crossed hope than by a hard-headed appraisal of what’s most likely to happen.

And the more pessimistic strategists don’t even feign good cheer: They think the Ryan pick is a disaster for the GOP. Many of these people don’t care that much about Romney — they always felt he faced an improbable path to victory — but are worried that Ryan’s vocal views about overhauling Medicare will be a millstone for other GOP candidates in critical House and Senate races.

One big reason the operatives don’t like this choice is it makes their job–getting down-ticket Republicans elected–harder.

And that’s just what it does to the Romney-Ryan ticket. Forget how it plays in close House and Senate races.

“Very not helpful down ballot — very,” said one top Republican consultant.

“This is the day the music died,” one Republican operative involved in 2012 races said after the rollout. The operative said that every House candidate now is racing to get ahead of this issue.

And what Politico doesn’t dwell on–but what Crooks & Liars noted the other day–is that it’s already too late for most of the Republicans running for reelection to separate themselves from Ryan’s signature policy. Because they already voted for it.

Even as Mitt Romney was introducing Wisconsin Rep. Paul Ryan as his running mate, his campaign was preparing a defense of the House Budget Chairman’s draconian Medicare proposals. With good reason. After all, in April 2011 the nonpartisan Congressional Budget Office forecast that Ryan’s scheme to convert today’s guaranteed Medicare insurance program into an underfunded voucher system would dramatically shift the health care costs onto America’s seniors. And in February 2010, Ryan acknowledged his privatization plan for millions of future elderly constituted rationing.

But it’s not just Team Romney that should be concerned about being caught red-handed with the proverbial gun pointed at the wildly popular program. Last year, 235 House Republicans and 40 GOP Senators–98 percent of all Republicans in Congress–voted for Paul Ryan’s budget and its blueprint to rationing Medicare.

What’s particularly remarkable about the Politico piece is that, in spite of widely expressed admiration for Ryan, just about all the anonymous sources admit that people hate his plan. The plan their bosses have already voted for.

I don’t think any of the geniuses in DC–whether Republican or Democratic–planned for this. I don’t think they intended to turn Mitt Romney into the poster child for the elites who have been looting our country. I don’t think Mitt realized that by picking Ryan, he would make the problem worse, not better.

But this election has now crystalized into a referendum on the austerity, oligarchy, and looting the Republicans (and more recently, the Democrats too) have been gradually introducing into our country.

Obama may still screw up the election. The economy may recrash, the drought may bring a price spike that makes people desperate enough to vote for Mitt, or there may be an October surprise.

And I’m sure Obama didn’t want to be running this election, pointing out how unpopular and disastrous are Ryan’s policies–policies which are not that different from some of his own.

But that seems to be where we’re heading. A referendum, from the top of the ticket on down, on the unpopular elitist policies that both parties in DC have been pushing for the last decade or so.

If Mitt Had Had His Way, San Diego Would Have Had to Lay Off Another Teacher So He Could Send More $$ Overseas

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Had Mitt Romney gotten his way when he asked to have his La Jolla home tax assessment lowered in the wake of the financial crash, San Diego County would have lost enough money to hire a teacher, at a time when the district has been laying off teachers and deferring raises.

At least that’s my rough calculation based on the numbers included in this LAT article describing Mitt’s efforts to have his home reassessed the year after he purchased it in 2008.

As the LAT describes it, Mitt submitted one proposed reassessment, claiming their home on the beach in La Jolla had lost almost 45% of its value. After that didn’t work, they got a lawyer to submit a new appeal; he came up with a more modest claim that the house had lost 27% of its value in the first year, or 39% over two years. San Diego County responded by assessing the home had lost 7% of its value. And only after two more years of declining home prices did the county agree with Mitt’s lawyers amended appeal of a 27-29% loss.

All told, $250 million Mitt has saved $109,357 on his property taxes.

But I want to look at Mitt’s original claim–that his house had lost almost 45% of its value in less than a year. That claim was higher even than the property decline all the houses in his zip code experienced in the two years after he bought the house.

Working for the Romneys, Streb concluded that the entire 92037 ZIP Code had suffered a 41% decline in average sales prices between the first six months of 2008 and the six months preceding his appraisal in October 2010. He settled on a value of $7.5 million for the Romney home.

Had Mitt’s outrageous claim been successful, he would have saved something like $75,000 a year. This amounts to Mitt, buying a pricey home at a time when any half-witted being knew home values were crashing, turning around almost immediately and asking for a discount for buying at a time of falling values. But for a county struggling with the effects of banksters ruining the wealth of its much more average residents, it amounts to a real churlishness about the common good.

The LAT ends by justifying Mitt’s efforts to save what amount to a few pennies on property taxes.

“I would think it’s foolish not to request a decline in value if you are entitled,” said Paul Habibi, who teaches real estate finance and development in the UCLA Anderson Graduate School of Management. “That’s like saying a rich man should not bend over to pick up a hundred dollar bill.”

Or you could look it another way. Most rich men, standing over a hundred dollar bill next to a poor kid, would let the kid take the bill. Not Mitt. He’s gonna hire a lawyer to elbow the kid away from the cash so he can pocket it himself.

When One Mormon Gossips about Another Mormon Not Paying His Taxes

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For the record, I think Mitt has multiple reasons to hide his tax returns. I think it’s largely about what his returns would say about his business practices, it’s partly about his tax shelters, and, one way or another, it’s about his relative loyalty to his church and his country.

But here’s a thought.

Harry Reid, Mormon, and Senator from Nevada, is the one leading the charge to return attention to Mitt’s tax returns.

He attributes his claim that Mitt paid no taxes for ten years to someone who invested with Bain. Now he may know his purported Bain-related source because he travels the halls of power. But Bain has very close cultural ties to the Mormon Church–according to some, improperly so. Moreover, because Mitt and other Bain execs have given so much to the Mormon Church in the form of Bain stocks, high ranking Mormon insiders may have a better idea of what Bain Capital actually does–and how Mitt valued his holdings before he gave them to the Church–than most others.

So Reid may be calling out Mitt not just as a former boxer, but as someone who shares a very wealth-based and close knit faith with Mitt.

Add in the practice–which even an outsider like me saw when I lived in UT and worked for a predominantly Mormon company in the 1990s–of gossip about tithing, notably whether Mormon colleagues tithed pre- or post-tax. That’s another reason why Reid may have a better sense of what Mitt’s tax practices look like than DC pundits might guess on face value.

Finally, though, there’s this. If one of the reasons Mitt is hiding his tax returns does have to do with under-tithing (as the returns Mitt released may suggest), and not just his business practices and tax shelters, remember that both CO (2.15%) and especially NV (over 5%) have larger Mormon populations than average. Nate Silver considers NV the state with the biggest return on investment per voter (CO is 6th). These are lean Democratic states that Mitt might need to win if Obama’s attacks on Bain outsourcing continue to turn the race in the manufacturing swing states (though if Mitt doesn’t win FL and VA, it may be moot anyway). Driving down the Mormon enthusiasm for Mitt might be one way to boost Obama’s chances.

This is obviously all speculation, as all discussions about Mitt’s taxes are. But this comment, stated by one Mormon about another, could have different connotations among Mormon listeners than non-Mormon ones.

A month or so ago, [Harry Reid] said, a person who had invested with Bain Capital called his office.

“Harry, he didn’t pay any taxes for 10 years,” Reid recounted the person as saying.

“He didn’t pay taxes for 10 years! Now, do I know that that’s true? Well, I’m not certain,” said Reid. “But obviously he can’t release those tax returns. How would it look?

This sounds like the kind of gossip even I would hear in UT. Was Mitt’s source talking taxes? Or tithes?

“They Were Suspending My Credit Line”

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[youtube]pf7Cxj5BZw8[/youtube]

So Mitt is still trying to dig himself out of the hole he created when he declared, “Let Detroit go bankrupt”?

I suspect most of the commentary on this ad will focus on the irony that, had Mitt had his way, all of GM’s dealers would have gone under, and without the buyout deals they ultimately got.

Me, I’m a bit surprised that Mitt didn’t choose an IN Chrysler dealer. Not only did Chrysler offer its dealers a much stingier package, but some dealers from IN fought losing their franchises all the way to SCOTUS, and some are still suing over “takings.”

But I’m most surprised by the sparse language used here to portray a dealer closure: “I received a letter from General Motors: they were suspending my credit line.”

Credit lines?!?!? Mitt wants to tug at heart strings and hit Obama with an attack akin to the Bain attacks that are working so well in swing states by invoking credit lines?!?!? Really?

Yes, it is true that at the heart of any car dealer is a credit line. But by including that in this ad, it seems to me, Mitt does several things. It reminds everyone who knows what role a credit line plays in a car dealer that the precipitating cause of the auto crash was the credit crash. It reminds viewers that the banksters, in killing their own industry, also killed the car industry. And not just any banksters, either. In GM’s case, the bankster in question was 51% owned by Cerberus Capital, a bunch of high profile Republicans (Dan Quayle and John Snow, among others) who were trying to do what Mitt got rich off: looting companies (in Cerberus’ case, including Chrysler) while profiting from the financialization that such looting offered. Only they were so bad at it, they effectively had to be bailed out by the taxpayers along with GM and Chrysler.

Thus, the villain in this ad–at least as described by the dealer–is someone just like Mitt, only stupider. The villain in the ad is not Obama–not to people who know how the auto industry works. It’s Mitt’s stupid Republican friends.

Has Mitt Been Reading “Why Nations Fail”?

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Mitt Romney’s latest overseas outrage is asserting that Palestinians are so much poorer than Israelis because of their culture.

“As you come here and you see the GDP per capita, for instance, in Israel which is about $21,000 dollars, and compare that with the GDP per capita just across the areas managed by the Palestinian Authority, which is more like $10,000 per capita, you notice such a dramatically stark difference in economic vitality,” the Republican presidential candidate told about 40 wealthy donors who breakfasted around a U-shaped table at the luxurious King David Hotel.

[snip]

Romney, seated next to billionaire casino owner Sheldon Adelson at the head of the table, told donors at his fundraiser that he had read books and relied on his own business experience to understand why the difference is so great.

“And as I come here and I look out over this city and consider the accomplishments of the people of this nation, I recognize the power of at least culture and a few other things,” Romney said, citing an innovative business climate, the Jewish history of thriving in difficult circumstances and the “hand of providence.”

While some outraged responses have focused on Mitt’s ignorance of the true extent of Palestinian poverty and others have decried Mitt’s racism, all I could think is that Mitt is voicing a misreading (but not an extreme one) of the latest fad book among policy elites of both parties: Daren Acemoglu and James Robinson’s Why Nations Fail.

Why Nations Fail purports to explain why some areas are rich and some poor (it adopts economic success as its measure of success and failure with no questioning of whether that’s the correct measure) by pointing to what it deems the relative extractive characteristic of a particular state. In states where the elite share the wealth via relatively open political systems, wealth grows. In states where the elites keep the wealth to themselves with the help of political repression, wealth stagnates.

The reason I think Mitt’s comment comes from having read or been briefed on Why Nations Fail (aside from his comment attributing the opinion, in part, to books he has read) is because his comment basically repeats the book’s key gimmick: the authors compare Nogales, Mexico with Nogales, AZ, North and South Korea, and South and North America and with each claim the wealthier of the geographically contiguous pair is wealthy because of its relative freedom. Mitt is making the same comparison–explaining why people in contiguous geographic areas have dramatically different outcomes.

In both the book’s gimmick and what I suspect is Mitt’s appropriation of it, there’s something missing. Why Nations Fail claims that everyone in Nogales, AZ enjoys great political rights; it doesn’t consider the important economic role played in the Southwest by undocumented workers who enjoy no political rights. Nor does it consider the way the drug war strips money and viable economic growth out of the rest of Latin America. Similarly, while the book admits that the US has provided a lot of aid to South Korea since the Korean war–not to mention paid for its defense–it doesn’t consider how important that outside relationship has been in determining South Korea’s path since the war. And somewhere in the discussion of how the US evolved in a less extractive fashion than Latin America–which includes a discussion of genocide in Latin American–the authors state something to the effect of “the Native Americans [in the US] were sidelined” (I listened to the book, so I can’t give you the exact quote). “Sidelined” (if that’s the word the authors used) is the politically correct–and almost unremarked term–for extraction that democrats later go on to whitewash.

And all that’s before you get to the inter-state power dynamics that lie behind the success or failure of a lot of smaller client states, which itself tends to tolerate a lot of extraction the authors barely mentioned.

Now, if Mitt got his little theory from Why Nations Fail, it is a misreading of the book, though not a big one. Mitt attributed the difference to culture, not politics. But in a policy world where people uncritically say Israel is the only democracy in the Middle East (ignoring Iran and Turkey, but also ignoring that Arabs in Israel–to say nothing of the occupied territories–don’t enjoy the same rights as other Israelis), Mitt really is just replicating Why Nations Fail‘s gimmick, pointing to democracy and innovation as a way to ignore the oppression that democratic regimes exert over others and instead celebrate that difference.

In which case, if I’m right, the whole flap should focus not just on the comment itself, but on what it says about Mitt’s cognitive ability (his slight misreading of the book), but also the policy elites’ fetishization of a book that engages in the same kind of whitewashing, to serve virtually the same end, a sort of blind self-congratulation.

Update: NYT’s Michael Barbaro, who has read Romney’s No Apology, says he cites David Landes’ The Wealth and Poverty of Nations in the book. IIRC, Why Nations Fail bills itself as a critique of Landes (though perhaps more his earlier technological determinism).

As Mitt Heads to Sheldon Adelson’s Country, CIA Exposes Israel’s Treachery

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After visiting his bankster donors in London, Mitt is on his way to visit megadonor Sheldon Adelson’s other country, Israel. Perhaps in a bid to butter up Adelson, Mitt’s staffers put up an Israeli flag on the plane before they remembered he’s running to be President of the United States.

And just as Mitt prepares to suck up to Israel, leak witch hunt targets Matt Apuzzo and Adam Goldman have a piece cataloging how much Israel spies on us. They describe:

  • Someone tampering with the CIA station chief’s secure phone on at least two occasions
  • Someone rearranging the food in a CIA officer’s fridge
  • Leaking details from a key Syrian chem and bioweapons scientist working for the US, which led to his disappearance and presumed death

It also reveals that after it gave up its nuke program, the CIA considered Libya a better counter-terrorism partner than Israel.

During the Bush administration, the CIA ranked some of the world’s intelligence agencies in order of their willingness to help in the U.S.-led fight against terrorism. One former U.S. intelligence official who saw the completed list said Israel, which hadn’t been directly targeted in attacks by al-Qaida, fell below Libya, which recently had agreed to abandon its nuclear weapons program.

Now, it’s not just Mitt who sucks up to the Israelis. Goldman and Apuzzo note the US has given Israel $60 billion since we nabbed Jonathan Pollard and Obama just released an additional $70 million of military aid.

But as Mitt tries to appear less obtuse in Israel than he did in UK, remember that the Israelis are probably stealing our secrets even as he unfurls their flag.

Cheney’s Thugs Win the Prize for Leak Hypocrisy

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I wasn’t much interested in Mitt Romney’s latest efforts to change the narrative from the evil things he profited off of at Bain Capital and the tax havens he stashed the money he got as a result. Not only don’t I think journalists will be all that interested in Mitt’s claim that Obama’s White House is a leaky sieve. But I’m not about to defend the Most Fucking Transparent™ White House in Fucking History against such accusations.

Until Cheney’s thugs start leading the attack.

Such as Eric Edelman, who says we need “change” because Obama’s Administration leaked details of the Osama bin Laden raid.

Eric Edelman is this guy:

Shortly after publication of the article in The New Republic, LIBBY spoke by telephone with his then Principal Deputy [Edelman] and discussed the article. That official asked LIBBY whether information about Wilson’s trip could be shared with the press to rebut the allegations that the Vice President had sent Wilson. LIBBY responded that there would be complications at the CIA in disclosing that information publicly, and that he could not discuss the matter on a non-secure telephone line

Four days after Edelman made the suggestion to leak information about Joe Wilson’s trip, Scooter Libby first revealed to Judy Miller that Valerie Plame worked at the CIA.

But Edelman is not the only one of Cheney’s thugs bewailing leakers: (h/t Laura Rozen, who follows BabyDick so I don’t have to)

Romney today at VFW on contemptible conduct of Obama White House leaking classified info for political gain. Must read. http://tinyurl.com/bw4s4lt

Now, to be fair to dear BabyDick, unlike Edelman she has not been directly implicated in her father’s deliberate exposure of a US CIA officer working to stop nuclear proliferation. Unlike Edelman, she was not protected from legal jeopardy by Scooter Libby’s lies.

But she did co-author her father’s book, which was a whitewash of his treachery (even if it did reveal that Cheney had a second interview with Pat Fitzgerald, one treated as a grand jury appearance, just around the time Fitzgerald subpoenaed Judy Miller. BabyDick Cheney is complicit in the lies the Cheney thugs have used to hide what a contemptible leak for political gain the Plame leak was.

And now she thinks she should lecture others about far less treacherous leaks?

Mitt and His Buddies Looted Almost $10 Trillion from Real Economy

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The Tax Justice Network just released an updated version of a report showing how much money gets siphoned out of the real economy into tax shelters: conservatively, $21 Trillion, and possibly as much as $32 Trillion.

I’ll have more to say about what the report says about the how the super wealthy have done in the last decade and which banks have been helping to loot the real economy.

But for now, consider where Mitt Romney fits into this picture. TJN shows that it’s really just the richest of the rich–those 91,186 people who make up the top .001%–that account for the biggest chunk ($9.8 Trillion) of this looting.

Not only is Mitt a member of that tiny club. But his net worth–commonly reported to be $250 Million but, given all the secrecy, possibly much more–puts him well above the mean $183 Million that members of this club enjoy.

And Mitt and his buddies in this very elite club have stashed 18% of the total liquid net worth of the world in places where not only can’t potential presidential voters know about it, but it also remains outside the kind of circulation that would really contribute to real economic growth.

Last week, Obama released an ad that said Mitt is the problem. TJN shows just what a big problem Mitt and his buddies really are.

Do Republicans Wish They Retroactively Had Let Newt Sustain His Bain Attacks?

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[youtube]BLWnB9FGmWE[/youtube]

Two soundbites from the Sunday shows have made a big stink: Mitt Romney’s former Bain partner, Ed Conard, admitting that Mitt was legally CEO of Bain until 2002. And GOP fixer Ed Gillespie, distancing Mitt from the outsourcing Bain did by insisting Mitt had “retroactively retired” before all the bad stuff happened but while (Conard confirmed) he was legally CEO.

All that’s on top of the fact that Mitt was profiting mightily from this vulture capitalism and siphoning the money to his offshore havens in Bermuda and Cayman Islands, which we’re not yet really talking about.

More telling, though, is the list of Republicans now calling on Mitt to release more his tax returns:

  • Columnist Bill Kristol
  • AL Governor Robert Bentley
  • Lobbyist and former MS Governor Haley Barbour
  • Columnist George Will
  • Strategist Matt Dowd
  • Strategist Ana Navarro
  • Strategist John Weaver

Now, none of these people–with the possible exception of Barbour–are big insiders who have any leverage over Mitt. Moreover, I can’t think of any way that any of them would definitely know the content of Mitt’s tax returns.

But what if they do? What if they know or suspect that those tax returns would expose not just Mitt’s role in Bain (including how much they paid him in salary in 2001 and 2002 to do, Mitt claims, absolutely nothing), but how much money he siphoned away to tax havens so as to avoid paying his fair share to the country he now wants to lead? What if they know the tax returns will doom his campaign, and want to force him to release them now, while they can still replace him with Chris Christie or someone else? (To be fair, with such a diverse mix of GOPers, I suspect they’ve got different motives for their comments, including–some of them–good faith belief releasing the forms would be best.)

Which makes me think back to the week in January when the GOP had the chance to fully expose what Mitt did at Bain–with the video Newt’s SuperPAC released above–but backed off that chance. (h/t ZachBeauchamp for finding a working copy)

Newt released the video on January 7. By January 10, Newt accused Mitt of undermining capitalism. But then, on January 11, he reversed himself, claiming he overstepped and asking his SuperPAC to edit the video, using the same claims of inaccuracy advanced by fact checkers that have foundered on the obvious facts included in SEC filings now. But by January 17, he was calling on Mitt to release his tax returns. Newt won the South Carolina primary on January 21. On January 24, Mitt released a single tax return, showing he paid very little in taxes and had tax shelters in Switzerland (now closed), Bermuda, and Cayman Islands, but revealing nothing about what he did in the key years in 2001 and 2002. Since Mitt won the nomination, Newt has even warned Democrats not to attack Mitt on the same terrible Bain record he himself did.

I sort of get the feeling Newt knows what’s in Mitt’s tax returns. Indeed, I’ve seen oblique tweets from a few Republicans this weekend saying “I told you so” and paying off debts, leading me to believe more than a few Republicans tried to warn their party that this Bain thing would blow up and are now being vindicated.

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Glenn Kessler Didn’t USED to Treat SEC Filings as Boilerplate

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As gobsmacked as I am that no one can seem to find the people running Bain Capital from 1999 to 2002, when Mitt Romney was officially listed as its CEO, Chairman, and President, I’m equally shocked by Glenn Kessler’s claims that SEC documents are not to be trusted.

Kessler’s scarequoted SEC documents

On Thursday, Kessler suggested SEC filings don’t mean what they say.

There appears to be some confusion about how partnerships are structured and managed, or what SEC documents mean. (Just because you are listed as an owner of shares does not mean you have a managerial role.)

Then on Friday, he mocked the journalistic convention that treated “SEC documents” (his scarequotes) as factual.

There is a journalistic convention that appears to place great weight on “SEC documents.” But these are public filings by companies, which usually means there are not great secrets hidden in them. The Fact Checker, in an earlier life covering Wall Street, spent many hours looking for jewels in SEC filings.

[snip]

We had examined many SEC documents related to Romney and Bain in January, and concluded that much of the language saying Romney was “sole stockholder, chairman of the board, chief executive officer, and president” was boilerplate that did not reveal whether he was actually managing Bain at the time. (For instance, there is no standard definition of a “chief executive,” securities law experts say, and there is no requirement for anyone to have any responsibilities even if they have that title.)

Trillions of dollars are traded based on what these documents say, but a purportedly respectable journalist who used to cover Wall Street says they’re just boilerplate.

Only, he didn’t used to say that.

As Kessler reminds his readers, he used to cover finance. So to see how he, as a finance reporter, treated SEC documents, I thought I’d review what he wrote during precisely the period Mitt’s corporate whereabouts are in such dispute, 1999 to 2002. Kessler covered finance at the WaPo from the time he moved there in 1998 until about May 2, 2002, when he started covering foreign affairs. Thus, Kessler stopped covering finance just weeks after the time Mitt resigned from the boards of Marriott and Staples (presumably Mitt’s severance deal with Bain was around the same time).

SEC filings, more SEC filings, and no boilerplate

It was an interesting time to cover finance, too. In addition to a slew of articles engaged in one-side, other-side journalism citing experts warning that Bush’s tax cuts might bring back deficit spending but Pete Domenici and Ari Flesicher saying they wouldn’t so he couldn’t really be sure, Kessler covered growing awareness about tax havens, the end of the Dot-Com bubble, the AOL Time-Warner merger, and Enron. And in a number of those stories he treated earnings reports and other SEC documents as transparent truth.

Kessler pointed to corporate earnings reports for a January 29,1999 story predicting the economy would begin to slow.

Corporate earnings are closely watched on Wall Street because, in a world of dreams, deals and wild bets, earnings are real; they are the equivalent of batting averages for baseball addicts. Corporate earnings also provide hints on the general direction of the economy, which is why some analysts remain downbeat about the economy in the coming year despite the string of positive earnings reports. [my emphasis]

And he looked at them in very close detail.

Individual corporate earnings reports also turn up nuggets of how companies have boosted their profits. Compaq Computer Corp., the world’s number two computer maker, said Wednesday that fourth-quarter earnings rose a better-than-expected 2.2 percent. Profits rose to 43 cents a share, compared with 42 cents in the same period of 1997. But tax credits from Compaq’s purchase of Digital Equipment Corp. last year significantly cut the company’s tax rate, boosting net income about 5 cents a share.

In a January 13, 2000 story explaining different estimates for the value of the AOL Time-Warner deal, Kessler reveals the WaPo was the only paper to look beyond stock price in its calculations; it included Time-Warner’s debt, presumably gleaned from SEC documents.

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