Fresh Loaf

As published in the Columbia Journalism Review.

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A Nation investigative report focuses almost entirely on the loss of black wealth in Atlanta due to unscrupulous tactics by lenders and their vassals at the Gold Dome. The article states:

Nearly 18,000 homes faced foreclosure in the Atlanta area during the first quarter of 2008, an almost 40 percent jump from the first quarter of 2007. In Fulton County, which encompasses most of the city’s core and is heavily African-American, one in 122 homes was in foreclosure in the first week of April. …

… for black America, the “mortgage meltdown” looks less like a market hiccup than a massive strip mining of hard-won wealth, a devastating loss that will betray the promise of class mobility for tens of thousands of black families. As the mortgage crisis unfolded, observers of all political stripes repeated a boilerplate line: the “affordability products” that have flooded the lending market in recent years — from subprime to interest-only loans — have done more good than bad by fueling a surge in black and Latino homeownership. But while minority homeownership may have grown in the short term, the long-term outlook promises quite the opposite, as southwest Atlanta painfully illustrates.

First-time homebuyers have originated less than a tenth of all subprime loans since 1998, according to a 2007 Center for Responsible Lending analysis. As recently as 2006, just over half of all subprime loans were refinances of existing home loans. The expected foreclosure toll from these loans will outpace the ownership gains by nearly a million families, the center estimates.

(more…)

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The Alternet news service has a great column by Rick Perlstein of Blog for Our Future on Georgia’s water calamity. “The colossal mismanagement of water in Georgia has produced an urban crisis with no clear solution other than a return to smart government,” the column states. Smart government? Georgia? Hahahaha.

Perlstein gets it right — assigning the blame to Sonny Perdue, the low-performing goofball in the gubna’s mansion: “Roy Barnes, the guy who actually stuck his neck out to solve the problem, was a Democrat, and the man who replaced him was the Confederate Flag-baiting Republican.”

Perlstein’s column was motivated by this month’s Atlanta magazine. He gives Atlanta pretty high marks — although repeatedly chiding the magazine for what it is, a city lifestyle magazine whose content, especially advertising, is targeted to the upper crust. A more perceptive comment might have been that Atlanta had some guts in challenging the Republican establishment in its reporting.

Although misplacing the Gold Dome in Augusta, Perlstein nonetheless nails down Georgia politics: “the cry of the ‘enlightened’ business-boosterism class against the bubbas at the State Capitol.”

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Forbes has an article today on the Top 10 Recession-Proof Cities. Don’t look for Atlanta on the list, but our arch rival, Charlotte ranks No. 5.

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Although it’s fun to watch Mayor Shirley Franklin and AJC Editorial Page Editor Cynthia Tucker lob rhetorical grenades at each other, one thing is clear: Tucker was entirely right in describing Atlanta’s “sorry financial shape” as Franklin enters the final months of her regime. If anything, the AJC editor was too polite.

One thing is also clear. Criticize the mayor, even mildly, and you’ll get a blast of vitriol from her office. One public official, for example, had the temerity to tell me that she doubted the mayor’s commitment to the transportation component of the Beltline. After all, other cities — Charlotte (which is quickly stealing Atlanta’s title of “Business Capital of the South”) and Denver come to mind — have actually greatly expanded transit systems while we have, um, drawn pretty maps. That official told me that the “mayor came after me like a low-flying missile” for daring to express an opinion, a very well-founded opinion.

Last year, I became curious about the mayor’s travel records. She is almost always on a trip, it seems. There were two things that I learned from my curiosity: First, in City Hall, ethics are relative (you could also call this “Franklin Exceptionalism”), and the city’s financial management was awful.

(more…)

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Nope, that’s not a joke.

Jay Smith, president of Cox Newspapers — that tentacle of the Coxtopus that runs the AJC, 16 other dailies and a gaggle of non-dailies — is retiring.

Smith has presided over the dramatic circulation declines and editorial deterioration in Atlanta and most other Cox cities. The internal statement obtained by CL calls those accomplishments “distinguished service.”

However, Cox sources say that the company’s potentate, James Cox Kennedy, has told the group’s editors that the AJC is on track to lose $17 million this year, and that Smith’s retirement was forced. “Rather abruptly,” one Cox employee said.

But whatever else, Smith was a solid news guy, widely respected by other newspaper editors.

The new boss, however, isn’t the same as the old boss. Sandy Schwartz, the new president of Cox Newspapers, will also remain as president of Cox Auto Trader. Those are the little publications available at service stations. Other than the fact that they’re published on newsprint, it’s a little difficult to see the relationship to journalism. To be fair, Schwartz also has a background in journalism. But, it’s telling about the newspaper industry that Cox feels its future lies in the direction of publications that have no content other than advertising. Who needs all of those grouchy journalists, anyway?

(Cox previously owned 25 percent of CL, and Smith served on our board. We felt Cox was using its stake to gain inside information on CL, which Cox then used to launch its faux alternative newspaper, AccessAtlanta. We subsequently bought back our stock from Cox.)

Here’s the entire statement from Cox:

After 37 years of distinguished service with Cox Newspapers, Jay Smith has announced his decision to retire on May 1.

Succeeding Jay will be Sandy Schwartz who will become president of Cox Newspapers while retaining his current position as president of Cox Auto Trader. Over the next few months, Jay will work closely with Sandy and with Brian Cooper, executive vice president of Cox Newspapers, to ensure a smooth transition.

Jay has done a tremendous job of leading Cox Newspapers aggressively through a number of transformations to respond to a rapidly evolving media environment, and Cox is grateful for his talent, courage, leadership and dedication. In 1971, he joined Cox as a reporter for the Dayton Daily News, where he also worked as assistant city editor, assistant managing editor, business manager and eventually, publisher. He spent seven years as publisher of the Atlanta newspapers, and also headed the Austin American-Statesman. In 1994 he was named president of Cox Newspapers. Jay leaves behind an impressive tradition of excellence in newspaper publishing and is past chairman of the board for the Newspaper Association of America. He also serves as a board member of the Associated Press.

As the newspaper landscape continues to shift rapidly, Sandy is uniquely positioned to meet the challenge head on as our business evolves.

Eighteen of Sandy’s 23 years with the company have been with Cox Newspapers. He joined Cox in 1985 as a features editor of the Tribune Newspapers in Mesa, Arizona and rose through the ranks to become editor and was later named president and publisher in 1995. He then served as vice president and general manager at both The Atlanta Journal-Constitution and the Austin-American Statesman, and later as executive vice president of Cox Newspapers. Since 2003, he has complemented his print journalism background with significant digital media experience, first serving as vice president of business development for Cox Enterprises, from 2003-2006, and then moving to his current role, leading AutoTrader.com, AutoTrader Publishing, and Auto Mart.

While we are ever appreciative of Jay’s years of service and the unparalleled standard he has set for the industry, Sandy’s experience and success at Cox during times of unprecedented change make him a natural fit to ensure that Cox Newspapers continues to deliver the quality content to readers when, where, and how they want it.

Our company is graced with many who share a commitment to the Cox Values, our employees, audiences, shareholders and the communities we serve – and you would be pressed to find better examples of leaders than Jay and Sandy. I know you will join me in wishing Jay all the best on his retirement, which I know will be filled with friends, family and his first grandchild this summer. Please join me too in congratulating Sandy and in giving him your full support on his new responsibilities.

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In a way it’s the same old, same old on this fifth anniversary of our invasion of a largely defenseless nation for no reason other than lies concocted by the Bush regime. Dick Cheney (who dodged the draft during Vietnam, explaining he had “other priorities“) was in Iraq repeating the same old lies about 9/11 having something to do with our regime’s attack on Saddam Hussein’s regime. John McCain, one of the few neocon leaders who was not a draft or combat evader, was in Jordan, where he claimed Iran was training Al-Qaeda — and most networks (not all: MSNBC deserves a little applause) studiously downplayed his awful ignorance — the sort of stupidity that should resolve the question about whether he’s qualified to get the “3 a.m. phone call” (answer: no). And, of course, George Bush (who most certainly did go AWOL from his Air National Guard playboy squadron, a gig his dad’s friends engineered for him so he wouldn’t risk facing combat in Vietnam while John Kerry was most certainly deservedly earning medals for valor in the conflict), was claiming the war was really swell. Even our own neocon toady, Saxby Chambliss (who dodged the draft claiming bad knees, although that didn’t seem to deter him from playing football) was blustering that he’d be glad to face Democrat Jim Martin (who served as an Army lieutenant during Vietnam) in a debate on the war.

But at least there were some new voices — although the media went to great lengths to ignore them. Last month, I spoke to a group of veterans in Buckhead — Vets for Peace, Vietnam Vets Against the War, Iraq Veterans Against the War. The event was to promote the Iraq Winter Soldier hearings this week. My co-speaker was Doug Ament, from this generation of veterans that, as I and my fellow veterans did 40 years ago, learned imperial wars benefit no one except the powerful profiteers. Ament was an aide to the top U.S. political people in Baghdad — and was so horrified by what he saw that he resigned his officer’s commission and went back as a civilian to try to rebuild what he had helped destroy. He’s now a grad student at Emory.

The first Winter Soldier hearings were in 1971 and dispelled any illusions about the nobility of the Vietnam conflict. The second Winter Soldier event took place earlier this month. Nope, don’t bother looking for stories in the AJC. But you can find reports here and here.

(Photo by Joeff Davis)

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In my column this week, I make a point midway that’s worth repeating:

You may have heard [Gov. Sonny] Perdue beating his chest, proclaiming he is pushing a constitutional amendment to eliminate a tiny 0.25 mil property tax that goes to the state. Is Perdue doing this, as he boasts, for beleaguered homeowners? Hardly. The real reason is that the small tax empowers the state Department of Revenue to ensure counties assess property at fair market value. Without the tax, the department has no role in assuring fair assessments. Thus, politically powerful industries — my bet is the timber business and/or utilities — pushed the amendment. If passed, these corporations will be able to lean on local officials to get sweetheart assessments — sticking common folks with the taxes the industries dodge.

The mainstream press — especially the AJC — needs to stop treating this as some sort of predictable Republican chop-away-at-taxes plan. It ain’t. The Republicans will certainly use the proposal to bolster their anti-tax mantra. But even some of the dimmer bulbs under the Gold Dome know the score. Perdue’s purpose is to take away state enforcement that property assessments be fair. In rural counties, and some urban ones, where industries can snap their fingers and watch local officials jump, assessments will be manipulated so corporations can avoid taxes. Common citizens — you — will pay.

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The Democrats, a big party without many big-name candidates for the U.S. Senate seat currently held by Saxby Chambliss, may have found their man: former state representative (for almost two decades), former commissioner of Human Resources (under both Govs. Roy Barnes and Sonny Perdue) and former lieutenant governor candidate Jim Martin.

Martin is well-liked and well-known around the state. On the other hand, his lite guv race, won by Republican Casey Cagle, wasn’t one that will be studied in future decades as an example of excitement and innovation.

The Dems have been searching for a candidate after a Zogby poll earlier this year showed Chambliss with remarkably low ratings — in large part because he is so entwined with the disastrous regime of George Bush. The poll showed only 38 percent of those surveyed felt Chambliss deserved another term. In a hypothetical match-up with an unnamed Democrat, Chambliss lost.

Currently running for Chambliss’ seat as Democrats are DeKalb County CEO Vernon Jones; Army veteran and ex-congressional staffer Josh Lanier; and Dale Cardwell, former investigative reporter for WSB-TV/Channel 2. None of those three is seen as a strong candidate. Jones’ personal life and affinity for Republicans raise big questions about his viability. Lanier and Cardwell are political novices.

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Insurance commissioner is one of those state jobs that doesn’t normally generate a lot of attention. In part, that’s because the incumbent, Republican John Oxendine, is happy to quietly pocket insurance companies’ campaign cash as he waits for a shot at the governor’s office — a long shot.

The race could get really, really interesting, however, if consumer hero, maximum penny pincher and all-around swell radio guy Clark Howard decides to run. Howard, we can be sure, would turn the office into a watchdog agency, a prospect that likely scares the bejesus out of those who are supposedly regulated by the insurance commissioner.

When last heard from, Howard was considering a run for Atlanta mayor. That race, however, is now crowded with candidates.

The news of Howard’s interest comes from three prominent local Democrats. Howard’s office didn’t return calls.

The Democrats might have their best chance in years to recapture statewide offices. A Zogby poll in January showed that U.S. Sen. Saxby Chambliss, R-BushToady, has low approval ratings and would be in a statistical dead heat with a Democrat. The carnival show at the state Capitol has revealed that the Republicans are incompetent at serious governing, and more interested in buffoonery over abortion than confronting critical state problems.

The Democrats need only one commodity to win back some seats: candidates. Howard is just the sort of wild card — a true crusader for average citizens — who would attract voters.

More later …

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The Jan. 30 Georgia Democrats’ Jefferson-Jackson Dinner at the World Congress Center was, well, predictable. Congressman John Lewis was honored, and brought along U.S. Rep. Charles Rangel of New York, chairman of the powerful Ways and Means Committee.

And former Sen. Max Cleland was honored. With a pointed quip at Republicans — especially Saxby Chambliss, the military evader who hoisted war hero Cleland’s picture up alongside Saddam Hussein and Osama bin Laden to win the Senate seat – Cleland noted that “not all enemies of democracy are from foreign countries.”

But if there was a surprise, it was the average age of the crowd. In past years youth attended, but in relatively small numbers. Not so this year, where the average age plunged a decade or so.

One group of college women – calling themselves “Hillary’s Green Team” – labored for their candidate. They’ve been helped along by City Councilmember Kwanza Hall. “Our goal is to reach out to young women,” said Erin O’Neil, 26, (no surprise) from Boston. She’s now a grad student at Georgia State. Despite all of the excitement, she was a little perplexed at the paradigm shift from Massachusetts to Georgia.

“People who run here as Democrats could run in Boston as Republicans,” she said.

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About 20 years ago, I had an epiphany about pro sports. I worked for a Miami business newspaper, and we began wondering about Dolphins’ owner Joe Robbie’s claims that his new stadium was entirely privately funded. By today’s standards, it was. But our investigation revealed there were tons of public costs.

Whatever else you can say about Robbie, and he could be a sonofabitch, he was just about the last capitalist to own a pro sports team. Since Joe Robbie Stadium was built, the team owners have converted to the creed of socialism for the very rich.

Sports stadiums nowadays are giant palaces built for the affluent and paid for largely — and some entirely — by working- and middle-class taxpayers. I covered two initiatives in Tampa. When Malcolm Glazer purchased the Buccaneers in 1995, he used the standard pout of team owners: Build me a new stadium or I’ll move. As I detailed in a series of reports, Glazer lied about what he planned to contribute. To pass a referendum worth more than $1 billion over 30 years to Glazer, the Bucs’ owner had his political lackeys combine the stadium funding with new school construction. If parents wanted decent schools, they had to give Glazer his stadium.

The Tampa Bay Lightning NHL team, meanwhile, had taxpayers pay for its coliseum based in part on assertions that the owners were a wealthy Japanese golf course company. I won awards for exposing the lie — the owners were deadbeats with virtually no assets. The sources of the money the owners did have were never explained, but former associates accused the owners in a federal lawsuit of being “gangsters.”

In reporting these stories, I got to know a number of sports consultants. One of them gave me the game plan he uses when a client wants a new stadium. Among the recommendations: Keep details secret until it’s too late for the public to act, avoid public discussion, enlist the major newspapers and TV stations with sweetheart deals (for example, the Tampa Tribune never questioned Glazer’s stadium deal because the newspaper had become a “Pewter Partner” of the team), and at all cost, don’t let the taxpayers vote on the deal.

What has happened in Gwinnett County follows that plan. Every man, woman and tyke in Gwinnett is being robbed of about $50 to make the owners of the Braves’ minor league team wealthier than they are. The Atlanta Journal-Constitution is dutifully boosterish about the whole thing, hardly noting that not all residents are overjoyed at being taxed to enrich already-rich team owners, not to mention that residents will have to pay for more costs, such as road and infrastructure improvements.

At least among my neighbors and friends in Lilburn, the mood is angry at the politicians who concocted the high-handed and secret deal — especially Commissioner Bert Nasuti and County Administrator Jock Connell. The details still haven’t been made public — Connell, with the arrogance of Marie Antoinette or Leona Helmsley, contends the scheme is too complicated for the little people to understand.

But the little people will be asked to pay. And pay. And pay some more.

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Mayors Shirley Franklin of Atlanta and Ken Steele of Fayetteville told the Atlanta Press Club today that Georgia House Speaker Glenn Richardson’s tax plan for the state spells disaster for cities, counties and schools.

Franklin was the headliner at the club’s luncheon, but she relinquished most of her time to Steele, who spoke on behalf of the Georgia Municipal Association, which, along with counties and school districts, is doggedly opposed to Richardson’s scheme. The speaker would scrap property taxes — the most stable tax source — and replace them with a greatly increased state sales tax. Sales taxes are notoriously volatile, especially in economic downturns.

“Here’s what our expenses are,” said Steele, holding his thumb and index finger far apart. “What happens when the sales tax produces this?” He narrowed the gap between digits. “I don’t think the state is going to reduce its spending.”

Steele wondered why Richardson is proposing his House Resolution 900 at a time when the state is confronting many real problems — the water crisis, congestion, the always-second-rate education system. “Why would we want to send all of the money to the state Capitol to redistribute?” Steele pondered.

He didn’t answer, but I’d bet most in the audience at the Commerce Club could guess. It’s all about power. Ending property taxes would help the wealthiest Georgians and corporations. And the sales tax would dump the tax burden onto groups such as the elderly, renters and the poor.

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Atlanta is going backward with crime statistics. The just released FBI semiannual report