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Month: March 2009

Foreclosure Waves

by digby

There are more ahead. And it’s got some ugly consequences:

According to Robinson, those victims of foreclosure who do wind up being pushed out of their homes can be roughly divided into two waves.

The first wave consists of those who lost their homes because they were unable to keep up with payments on poor mortgages, often with cripplingly high interest rates. There’s no hard research as yet, but anecdotal evidence indicates that, although these people didn’t have the financial resources to keep up with their mortgage payments, most were able to rent apartments or even homes in their same communities.

But for the second wave, the transition hasn’t been nearly so seamless. These are the people who are unable to make mortgage payments because they’ve lost their jobs. They no longer have the incomes to afford rentals.

This second wave is creating a strong demand for social services, including homeless shelters — a demand that far exceeds supply. Again, as yet there is no hard data, but anecdotal evidence indicates a far higher percentage of these people are winding up in hotel rooms, with friends and relatives, in shelters, or even sleeping in cars or on the street.

Here in California, the effects of this are going to be huge:

California’s unemployment rate will soar to between 12 percent and 15 percent by next spring and remain in the double digits until at least the beginning of 2012, according to forecasts released by two teams of University of California economists.

The state’s unemployment rate has not reached those heights since the Great Depression.

And California isn’t alone.

I’m sure the fiscal scolds will be putting the hammer down on anyone who wants the government to step up with direct aid — and the GOP presidential hopeful club will be posturing and preening on this. But even if the economy were to turn around tomorrow (and it doesn’t look hopeful) the displacement from all this is going to be felt for some time to come.

Play Money

by dday

From the Boston Globe, a terrifying report about how the Pension Benefit Guaranty Corporation, the agency that insures retirement funds, decided to play in the stock market at precisely the wrong time:

WASHINGTON – Just months before the start of last year’s stock market collapse, the federal agency that insures the retirement funds of 44 million Americans departed from its conservative investment strategy and decided to put much of its $64 billion insurance fund into stocks.

Switching from a heavy reliance on bonds, the Pension Benefit Guaranty Corporation decided to pour billions of dollars into speculative investments such as stocks in emerging foreign markets, real estate, and private equity funds.

The agency refused to say how much of the new investment strategy has been implemented or how the fund has fared during the downturn. The agency would only say that its fund was down 6.5 percent – and all of its stock-related investments were down 23 percent – as of last Sept. 30, the end of its fiscal year. But that was before most of the recent stock market decline and just before the investment switch was scheduled to begin in earnest.

The PBGC is a backstop against major losses by private pension funds and the parent companies slipping into bankruptcy. Especially at this time, with the economy struggling, the PBGC could be called on more than ever to help protect pensioners. Just as an example, a structured bankruptcy by GM or Chrysler would mean that huge liabilities would be passed on to this agency. Which apparently gambled and lost tons of money. That’s exactly the opposite investment strategy that should be taken by what amounts to an insurer.

David Kurtz is blunt and right on the money.

A finance professor who had previously advised the agency not to make the switch away from bonds compared the move to an insurance company writing policies to cover hurricane damage and then investing the premiums in beachfront property.

Bush was able to do for the PBGC what he tried and failed to do for Social Security.

Josh Marshall concurs. These were Bush Administration officials who, in the wake of losing their battle to privatize Social Security, had this big pot of money – close to $64 billion – that they sunk into stocks, providing more money to Wall Street for them to keep pushing asset values higher. The timing of it happening just at the time before the market began to crash suggests that the Administration viewed this as perhaps a last-ditch effort to prop up Wall Street. The director of the PBGC, who advised and directed this strategy, is Charles E.F. Millard, a former managing director at LEHMAN BROTHERS, just to give you some more assurance. In the article he practically admits that he was just taking a whirl at the casino with public money:

He said the previous strategy of relying mostly on bonds would never garner enough money to eliminate the agency’s deficit. “The prior policy virtually guaranteed that some day a multibillion-dollar bailout would be required from Congress,” Millard said.

He said he believed the new policy – which includes such potentially higher-growth investments as foreign stocks and private real estate – would lessen, but not eliminate, the possibility that a bailout is needed.

Asked whether the strategy was a mistake, given the subsequent declines in stocks and real estate, Millard said, “Ask me in 20 years. The question is whether policymakers will have the fortitude to stick with it.”

I don’t think policymakers will be sticking with it, because there’s probably almost no money left in that portfolio. Money that was designed to insure pensions.

This is a crime.

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Escape Artist

by digby

Yesterday I referred to Chrysler chief Nardelli in passing as an example of the failed CEO who consistently fails up. Today, I read in the NY Times that the Obama administration is insisting that GM CEO Rick Wagoner step down before the taxpayers agree to give GM another dime. But Nardelli, whose record of failure is at least as great over the years as Wagoner’s, stays.

According to the NY Times:

In deciding to urge Mr. Wagoner to step down, the Obama administration seemed mindful of the public’s growing outrage over bailouts of private companies, as well as the bonuses paid to employees of A.I.G.Mr. Obama is well aware that he cannot afford to give the appearance of using tax dollars to reward executives who have done a poor job, and he began signaling as early as last week that he would take a tough stance with the automakers.In a question and answer session at the White House on Thursday, the president said there had been “a lot of mismanagement of the auto industry over the past several years,” and declared that more government help would be contingent on the companies’ “willingness to make some pretty drastic changes.”

They’d certainly better watch the taxpayers wallet with Nardelli in the room:

Nardelli will be on a very short leash, and look for Congress to question his every move.

You see, he has a compensation problem.

When Nardelli resigned as CEO of Home Depot in 2007, he was essentially run out as a result of his pay. Not only that, he was criticized by shareholder activists for ignoring investor concerns about his pay. Indeed, at a May 2006 annual meeting, he refused to answer questions from shareholders and gaveled the meeting to a quick close, ignoring shareholders who wanted to exercise their rights by asking questions and making comments to the board. Nardelli and Home Depot would later apologize for the spectacle.

When Nardelli quit Home Depot in 2007, he drew more ire by walking away with a $210 million golden parachute – even though his tenure did little to boost Home Depot’s stock price.

In fact, House Financial Services chairman Barney Frank, D-Mass., was critical Nardelli back then, calling the severance package “out of control.”

Frank’s words back then echo now in the controversy over bonuses paid to AIG executives and any compensation going to CEOs of financial-services companies that have taken federal bailout dollars.

Perhaps Nardelli has learned from the experience. He was, after all, the first of the Big Three auto execs to agree to take just $1 in pay.

How Nardelli structures his future compensation will judge how hard a time the government gives him – and Chrysler – in the coming months.

If the administration were to make an example of someone, this would seem to me to be the logical guy. Or if Wagoner really needed to go for other reasons, it’s hard to see why Nardelli escapes the guillotine as well.

This man has more lives than an alley cat. Then again, maybe Nardelli just has friends in high places who are protecting him. As Julia reminded me, Nardelli is a long time Big Money Boy who, along with other Home Depot execs, did everything in his power to pay back Eliot Spitzer for his attempts to clean up Wall Street as NY Attorney General:

New York Attorney General Eliot Spitzer’s challenger for the state’s Democratic gubernatorial nomination received hundreds of thousands of dollars from people with ties to Home Depot Inc. founder Kenneth Langone, a registered Republican and target of a Spitzer lawsuit.

Langone, a defendant in Spitzer’s suit over ousted New York Stock Exchange Chairman Richard Grasso’s retirement pay, supports Nassau County Executive Thomas Suozzi for governor. Suozzi’s campaign received at least $300,000 from Langone, his wife, Elaine, and two adult sons, and present and former business and charity group associates, Suozzi campaign records on the state Board of Election Web site showed.

“I’ve found a substantial number in the business community inside and outside New York who feel that Spitzer as governor wouldn’t be friendly to business,” Langone said in a Jan. 12 interview. Earlier that day, he had a lunch with 15 business associates, nine of whom promised to help Suozzi, Langone said.

[…]

He also has said Spitzer sought “headlines, not justice,” when he named Langone a defendant in a May 2004 suit over his role heading the stock exchange compensation committee that awarded Grasso a $187 million retirement package.

[…]

An examination of campaign records found Suozzi’s donors include Home Depot Chairman and Chief Executive Officer Richard Nardelli, who gave $16,200. Walter Buckley, an original Home Depot shareholder and his wife, Marjorie, contributed $32,000. Home Depot co-founder Bernard Marcus and his wife, Billi, gave $32,000, while Steven Holzman, who Langone named in 2001 as chief executive of his Invemed Associates LLC, donated $16,000.

Why Wagoner and not Nardelli? Who knows.
Maybe he’s got some pals protecting him. But it seems to me that if they wanted to “send a message” Nardelli is the poster boy for worthless, overcompensated losers.

Update: Fergawdsake.

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French Dread

by digby

Boo hoo:

“I must say I’m disappointed,” Senate Minority Mitch McConnell of Kentucky said Sunday on CNN’s State of the Union. “After two months, the president has not governed in the middle as I had hoped he would. But it’s not too late. He’s only been in office a couple of months. Still before him are the opportunities to deal with us on a truly bipartisan basis,” the Republican told CNN Chief National Correspondent John King.

Bipartisanship is a one way street, dontcha know.
McConnell is also afraid that we are going to turn into a banana republic. Oh wait, sorry, he supports turning us into a banana republic. Obviously. He’s a laissez faire, K-Street lackey after all. It’s the US turning into France that has him petrified:

Obama’s administration “is going to be the furthest to the left of any government . . . certainly in my lifetime,” McConnell also told King. “I’m not sure that’s what people voted for. I mean they were angry with President Bush. They were not happy with the economy…. Whether they intended to see America kind of turned into a Western European country as a result of an explosion of spending and debt and regulation is another matter.”

Quelle horreur!

via Blue Texan at FDL

Beavis And Butthead Republicans

by digby

I’m beginning to think that Limbaugh is doing this in order to make clowns like Cantor and Steele look statesmanlike by comparison. It’s working.

h/t to bill

Too Rich To Fail

by digby

What a racket:

The financial giant Goldman Sachs spent tens of millions of dollars to bail out two senior executives last fall who were short on cash, according to the bank’s proxy statement filed on Friday. In an unusual move, Goldman bought back stakes in some internal investment funds from Jon Winkelried, the bank’s co-chief operating officer, and Gregory K. Palm, its general counsel. Both executives are among the largest shareholders in the bank, owning more than a million shares each, and directors were concerned that a large sale of Goldman shares by the two men would alarm investors during a period of market turmoil, according to a person briefed on the matter. To avoid the stock sales, Goldman paid Mr. Winkelried, who retired last month, $19.7 million to purchase about 30 percent of his investments in internal hedge funds and private equity investments. The bank paid $38.3 million to Mr. Palm for about a quarter of his investments. Soon after the bank aided the two executives, Warren E. Buffett invested $5 billion in Goldman, and the bank’s top four executives agreed not to sell more than 10 percent of their stock for three years. […]

Goldman was the last Wall Street firm to go public, and many partners there, current and former, have held onto their stock since the offering 10 years ago because they did not want to pay the large tax bills attached to the profits that would accrue from sales of their shares. Some partners and other employees there borrowed against their stock for living expenses or to make other investments in areas like hedge funds and private equity funds. In a much-noticed sign of the times, Mr. Winkelried, a former investment banker, put his estate in Nantucket on the market last fall for $55 million. He has since lowered the price. He also owns a home in Short Hills, N.J., and a horse farm in Colorado. Mr. Winkelried spent 27 years at the bank, working in areas like leveraged finance and rates and commodities before being named a senior executive. Mr. Palm still works at Goldman, where he has been head or co-head of the legal department since 1992, when he joined the bank from the law firm Sullivan & Cromwell. In 2007, he endowed a professorship in economics at his alma mater, the Massachusetts Institute of Technology. Last fall, he represented Goldman before a Senate panel that focused in part on bank compensation.

What a great business for the guys at the top. No matter what happens they always wind up getting bailed out to the tune of millions of dollars.

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The Bucks Stop There

by digby

Via Atrios, I read this little tale of “bonuses”, a story which is happening in different businesses all over the country:

Though the company teetered on the verge of bankruptcy at the time, this past December Philadelphia Media Holdings awarded bonuses to CEO Brian P. Tierney, vice president of finance Richard Thayer and Daily News publisher Mark Frisby. PMH board chair Bruce Toll confirmed bonuses of $350,000 for Tierney and $150,000 each for Thayer and Frisby in a phone conversation on Friday. Reached by phone, Frisby told Philadelphia, “The numbers are wrong. But I’m not going to give you a number.”[…]“I forgot,” he said. “I’m involved with something like 20 companies, and [when Philadelphia first called] you were asking me to remember what happened in December. But when I asked around, some other board members reminded me we had approved the bonuses.” PMH filed for bankruptcy in February. Toll, of the homebuilding Toll Brothers company, confirmed that the PMH board knew the company¹s fiscal situation was dire. “The financial condition of the papers was obviously not good,” said Toll. “We knew what was going to happen sooner or later.” So why give out $650,000 in bonuses? “We thought it was deserved,” he said. “But we can’t get into the details because we’re involved in bankruptcy proceedings.” It had earlier been revealed that Tierney received a raise in December, just before Christmas, boosting his pay roughly 40 percent to $850,000. The company initially defended the raise, which was revealed in its bankruptcy filing, by saying that Tierney had taken on extra responsibilities since his initial deal had been struck. [He later gave back the raise when it was publicly revealed.]

The boyz take care of each other. That’s what the club is for. There’s nothing particularly unusual about rewarding failure like this and it’s certainly not unique to this period in time:

Embattled Home Depot Chief Executive Robert L. Nardelli, under fire from stockholders for earning hundreds of millions at the same time the company’s stock fell and market share dropped, resigned suddenly today and will walk away with a severance package of $210 million, the company announced….During his tenure, Nardelli earned $240 million in salary, bonuses and stock options. ….During his leadership of the nation’s second largest retail chain after Wal-Mart, Home Depot lost market share to home-improvement rival Lowe’s Cos. and its stock price declined almost 8 percent.

In the case of the auto companies (GM and Chrysler) or the behemoth financial and insurance companies we now have the taxpayers footing the bills for this nonsense, which makes it a matter for public debate and scrutiny. In the past, the excuse was that if the shareholders of public corporations don’t mind getting repeatedly taken to the cleaners by a bunch of incompetents, it’s not really a public problem. And hey, a high tide lifts all boats, so if these guys skim a nice, huge dollop of the cream for themselves, there’s no harm in it if the economy is growing strong.
Except there is, if you care at all about justice. Even in the best of times, wages were rising for average workers at a snails pace and the only thing keeping them from actually losing pace was easy credit. All that’s gone now and businesses of all kinds are in distress and trying to cut costs. And yet the fat cats are still giving each other big bonuses.
Meanwhile, back in Philadelphia:

Now comes news of the bonuses, which were awarded just two months after the company’s unions voted to postpone $25-a-week raises for each of its members at the request of PMH.

This is the behavior that brings out the pitchforks.
People are being asked to make all kinds of concessions these days. They are being asked to cut back hours and pay and forego raises and benefits. They are taking on extra work because the companies aren’t replacing employees who leave. Reports of mistreatment in the workplace are way up. They are trapped in jobs they hate, with houses they can’t afford, desperately afraid to get sick because if they lose their jobs they lose their health care. And yet highly paid executives are insisting that they are entitled to huge sums of money.This attitude of entitlement is what’s infuriating average citizens and legitimately so. These people are supposed to be masterful leaders and they are instead acting like pampered Chinese princes cloistered from the rest of the world behind the darkened windows of their limousines and the walls of their gated communities. They honestly don'[t understand just how angry people are at this display of arrogance and aristocratic privilege. It’s astonishing. .

Creating Jobs

by digby

So this morning David Gregory, in the great tradition of his forebear Tim Russert, was just a regular workin’ dude interviewin’ the big wigs about the troubles of average Murikins jess like him:

MR. GREGORY: My mother out in California, I presume, is watching this morning. She’s like a lot of Americans, worried about her job and wondering why not just bank lending, but something called nonbank lending, securitization–what is that, and why does that matter to her?

Just like Joe and Jane American everywhere, Dave’s mom is fearing for her financial future and would like an explanation for why she finds herself feeling so insecure.
I have an idea. Maybe Dave could get his wife, the former General Counsel for Fannie Mae, to explain all this high flying financial mumbo jumbo to her mother-in-law. And if worse comes to worse and Ma Gregory loses her job, maybe Dave could hire her to clean his multi-million dollar Nantucket vacation home.

Torture Metrics

by digby

Dick Cheney is going to hell. But we knew that. And so are Bush and Rice and all the rest who insisted on torturing Abu Zubaida, a brain damaged man who was so desperate that he made up fantastical terrorist plots just to make the torture stop. They not only committed a war crime, they made us all less safe by sending investigators all over the world on wild goose chases.

This story was always pooh-poohed by administration officials, who insisted that the information this man with serious memory problems gave under torture was vital in stopping many terrorist attacks. But they lied. The Washington Post provides some new details in this story in today’s paper:

When CIA officials subjected their first high-value captive, Abu Zubaida, to waterboarding and other harsh interrogation methods, they were convinced that they had in their custody an al-Qaeda leader who knew details of operations yet to be unleashed, and they were facing increasing pressure from the White House to get those secrets out of him. The methods succeeded in breaking him, and the stories he told of al-Qaeda terrorism plots sent CIA officers around the globe chasing leads. In the end, though, not a single significant plot was foiled as a result of Abu Zubaida’s tortured confessions, according to former senior government officials who closely followed the interrogations. Nearly all of the leads attained through the harsh measures quickly evaporated, while most of the useful information from Abu Zubaida — chiefly names of al-Qaeda members and associates — was obtained before waterboarding was introduced, they said. Moreover, within weeks of his capture, U.S. officials had gained evidence that made clear they had misjudged Abu Zubaida. President George W. Bush had publicly described him as “al-Qaeda’s chief of operations,” and other top officials called him a “trusted associate” of al-Qaeda leader Osama bin Laden and a major figure in the planning of the Sept. 11, 2001, terrorist attacks. None of that was accurate, the new evidence showed. Abu Zubaida was not even an official member of al-Qaeda, according to a portrait of the man that emerges from court documents and interviews with current and former intelligence, law enforcement and military sources. Rather, he was a “fixer” for radical Muslim ideologues, and he ended up working directly with al-Qaeda only after Sept. 11 — and that was because the United States stood ready to invade Afghanistan.

It goes on to lay out Zubaida’s story in detail, and although it features one counterterrorism official who clings to the idea that the torture was effective, it quotes other high level officeials unequivocally saying the torture was counter-productive and wasted many valuable resources. Read the whole thing.
It highlights something that I haven’t seen discussed much, but which interests me as we try to get a handle on how something like this gets approves and becomes instutionalized. They report:

As weeks passed after the capture without significant new confessions, the Bush White House and some at the CIA became convinced that tougher measures had to be tried. The pressure from upper levels of the government was “tremendous,” driven in part by the routine of daily meetings in which policymakers would press for updates, one official remembered. “They couldn’t stand the idea that there wasn’t anything new,” the official said. “They’d say, ‘You aren’t working hard enough.’ There was both a disbelief in what he was saying and also a desire for retribution — a feeling that ‘He’s going to talk, and if he doesn’t talk, we’ll do whatever.’ ” The application of techniques such as waterboarding — a form of simulated drowning that U.S. officials had previously deemed a crime — prompted a sudden torrent of names and facts. Abu Zubaida began unspooling the details of various al-Qaeda plots, including plans to unleash weapons of mass destruction

This isn’t the first time I’ve heard that the Bush administration was obsessed with getting a volume of information, caring little about the quality or reliability of it. neither is it the first time that we’ve heard that this pressure came from the highest reaches of the administration itself. Back in 2005, I posted this:

Last week I wrote a post featuring Lt. Col Stephen Jordan and his testimony that the White House had been “impressed” with the “flow of information” coming out of Abu Ghraib. Today, Spencer Ackerman, pinch hitting for Josh Marshall at Talking Points, references this USA Today article about the same fellow, connecting many of the same dots and more.

There seems to be a great deal of emphasis placed on the numbers game. From the USA Today article:

Sergeant First Class Roger Brokaw, told the paper. “How many raids did you do last week? How many prisoners were arrested? How many interrogations were conducted? How many [intelligence] reports were written? It was incredibly frustrating.”

From the Christian Science Monitor article I referenced in my earlier post:

Specialist Monath and others say they were frustrated by intense pressure from Colonel Pappas and his superiors – Lt. Gen Ricardo Sanchez and his intelligence officer, Maj. Gen. Barbara Fast – to churn out a high quantity of intelligence reports, regardless of the quality. “It was all about numbers. We needed to send out more intelligence documents whether they were finished or not just to get the numbers up,” he said. Pappas was seen as demanding – waking up officers in the middle of the night to get information – but unfocused, ordering analysts to send out rough, uncorroborated interrogation notes. “We were scandalized,” Monath said. “We all fought very hard to counter that pressure” including holding up reports in editing until the information could be vetted.

General Ripper, as well, seems to have been mighty impressed with the quantity of intelligence he got from prisoners in Guantanamo after he “took the gloves off.” From January’s issue of Vanity Fair:

According to General Miller, Gitmo’s importance is growing with amazing rapidity: “Last month we gained six times as much intelligence as we did in January 2003. I’m talking about high-value intelligence here, distributed round the world.”

Daily success or failure in guerilla wars is notoriously difficult to assess. Unlike a war for territory you cannot say that you took a certain hill or town. Political types are always looking for some measurement, some sign that they are succeeding (or failing.)

Billmon noted this back in October in an interesting post on Rumsfeld’s angst at being unable to assess success or failure in the WOT:

Above all, Rumsfeld cries out for “metrics” that can be used to measure progress in such a war:

“Today, we lack metrics to know if we are winning or losing the global war on terror,” he wrote. “Are we capturing, killing or deterring and dissuading more terrorists every day than the madrassas and the radical clerics are recruiting, training and deploying against us?”

Billmon makes the obvious comparison between Rummy and the most recent war criminal sec-def, Robert McNamara, concluding:

The same mindset also spawned McNamara’s preferred metric: the infamous “body count.” In that earlier, more naive, era, it hadn’t yet occurred to management theorists that numeric targets can quickly become bureaucratic substitutes for real objectives, such as winning wars. So McNamara (and the military) had to learn it the hard way, as industrious field officers dispatched soldiers to count graves in Vietnamese civilian cemetaries in order to hit their weekly numbers.

I’m not sure what the equivalent might be today, although Rumsfeld’s memo points in a possible direction when it suggests the creation of a private foundation that could fund “moderate” madrassas (Islamic schools) to counteract the radical ones. Perhaps someday we’ll have a “moderate student count,” in which hard-pressed CIA officers dispatch agents to count child laborers in Pakistani sweat shops in order to hit their weekly numbers.

It looks to me as if they found a simpler metric than that. Like the mediocre, hack bureaucrats they are, they decided that they would guage success or failure — certainly they would report to the White House success or failure — based upon the sheer numbers of raids, arrests, interrogations, reports, confessions and breakdowns achieved, regardless of whether any of it resulted in good intel or enhanced security anywhere.

This was the only metric they could conceive of and in order to get those numbers up they had to detain large numbers of innocent people and torture them for false information to fill the endless reports of success on the ground in Afghanistan, Gitmo and Iraq. They could hoist up a huge pile of paper in a meeting with their president and say, “look at how much intelligence we’re getting. We’re really getting somewhere.”

McNamara quotes TS Eliot at the end of The Fog Of War:

We shall not cease from exploration
And the end of all our exploring
Will be to arrive where we started
And know the place for the first time

Well, not everybody apparently. Thirty years after the hell of Vietnam, it’s the same shit, different fools. Lyndon Johnson is laughing his ass off in hell.

In the case of Zubayda there seems to be another element as well. They were desperate to keep up the fiction that Al Qaeda was the outsized foe they’d built them up to be. If they were merely a dangerous little gang of criminals rather than a deadly global army of supervillians, it would be hard to justify the spending of trillions on unnecessary wars and suspending inconvenient portions of the constitution. These Vietnam chickenhawks didn’t want to hear anything that would imply that they weren’t fighting the war of all wars.

They knew these were false confessions and fictional plots and cynically used them to keep up the sense of panic — even among themselves — that fueled their global ambitions and fed their damaged egos. Ultimately they failed in that, not because they actually did anything that kept the babies safe, but because the American people just don’t have the attention span to stay panicked about anything for very long. Once the spell broke, there was nothing left but the metrics.

Saturday Night At The Movies

Flowers of bro-mance

By Dennis Hartley


Oh, bloody hell…not another Rush tribute band

Humorist Matt Groening once observed: “Sex is funny. The French are a funny people. Then why is it that no French sex comedies are funny?” On the other hand, you have Roger Ebert, who once lamented about “a trend in which Hollywood buys French comedies and experiments on them to see if they can be made into English with all the humor taken out.” I generally concur with both those sentiments, but I think I have found the exception to Groening’s and Ebert’s rules- in the guise of a smart, funny and warm French comedy, that has inspired an equally smart, funny and warm American remake.

Okay, so Patrice Leconte’s Mon Meilleur Ami (which I reviewed here) was not a “sex” comedy, nor was it a huge hit with critics or audiences (I caught flak from some readers for including it in my Top 10 films list for 2007). I’m not here to gloat-but obviously, “someone” grokked Leconte’s film to be worthy of a Hollywood makeover, and as a vehicle for Paul Rudd, who has become the “go to” guy to portray wry romantic comedy leads. I’m here to tell you that I Love You, Man is all that (and a large orange soda).

Rudd is Peter Klaven, a somewhat self-effacing yet amiably good-natured Los Angeles real estate agent who has decided to pop the question to his ladylove, Zooey (Rashida Jones). The bubbly Zooey immediately begins enthusiastically phoning up a bevy of close girlfriends to share the happy news. When she asks her new fiancé why he isn’t jumping right on the horn to tell all his pals as well, he mumbles some vague excuse and appears eager to change the subject. It turns out that while Peter is adept at meeting women, he is more diffident when it comes to interacting with other guys; he can’t readily name anyone who qualifies as a “bro”, nor can he seem to cough up a candidate to be Best Man at their wedding. Someone is going to have to come up with an Action Plan.

Desperate to find himself a good bud on such short notice, Peter seeks assistance from his gay brother (SNL’s Andy Samberg), who encourages him to try some “man dates”. Zooey pitches in as well, helpfully brokering a “poker night” invite for Peter from her best friend’s reluctant husband (a skulking Jon Favreau, hilariously effective here playing a supreme dickweed). Most of these intros and invites end in embarrassment and/or some form of social disaster. Just when all seems lost, a Dude ex Machina arrives in the form of a free-spirited man child named Sydney Fife (Jason Segel). Teach me to dance, Zorba.

In its best moments (and this is high praise), I was reminded of Barry Levinson’s Diner, which I consider the granddaddy of all modern “bro-mantic” comedies, as well as one of the most keenly perceptive observations about male friendship ever put on screen. I think it’s interesting to note that screenwriter Larry Levin (who co-scripted with director John Hamburg) also wrote a classic 2-part Seinfeld episode called “The Boyfriend”, in which Jerry develops a “man crush” on one of the N.Y. Mets (this film could be seen as an extrapolation on that theme). In its worst moments, the film threatens to lean on that tiresome crutch of cheap gross-out humor that has largely put me off of contemporary “comedies”, but thankfully, the reins are judiciously pulled in (Woody Allen has managed to make tons of funny films over a 40 year period without one scene involving projectile vomiting-so why can’t the current crop of comedy directors learn from this?).

Rudd and Segel (who previously teamed up in Forgetting Sarah Marshall ) play off each other extremely well, and are obviously developing a solid comedy duo franchise (I think it would be a real kick to see them remake one of the Hope-Crosby “Road” movies-or perhaps that’s just me). Rudd continues to perfect an onscreen persona as the quintessential post-modern comic Everyman. I thought Segel’s performance strongly recalled Donal Logue’s slovenly yet endearing self-styled hipster saint wannabe in The Tao of Steve. Thomas Lennon (best known as “Lieutenant Dangle” from the wonderfully twisted comedy series, Reno 911) is a riot as a love struck stalker (no spoilers, please). Lou Ferrigno (as himself) is an unexpected delight, unveiling some previously hidden comic chops, and air guitar geeks will swoon at the cameo appearance by the Holy Trinity of Canadian prog-rock. If you have to ask who that is-you ain’t my bro, man!