PEROT: BACK DOOR MAN Pg. 9 A JOURNAL OF FREE VOICES JULY 24, 1992 • $1.50 Remaking the Democrats MICHAEL ALEXANDER DIALOGUE No Peace in Middle East mise failed. Skaff, who maintains a Houston THE TEXAS residence and is a Democratic National I am a longtime subscriber and reader of Committee member from Texas, said the The Texas Observer and have always been Arab-American Democrats believed they impressed with the accuracy of your report- abided with the substance of the agreement. JOURNALs OF rverREE VOICES ing. I must, however, take exception to the We will serve no group or party but will hew hard to article entitled "Peace Talks Falter" in the the truth as we find it and the right as we see it. We are On Perot's Myth dedicated to. the whole truth, to human values above all June 19 1992, issue. The article was not only interests, to the rights of human-kind as the foundation inaccurate, but it was also unfairly slanted. James Cullen's piece on Perot ("Henry of democracy: we will take orders front none but our own As chairman of Texans for Justice and Ross Perot: Hit or Myth," TO 6/5/92) is by conscience, and never will we overlook or misrepresent Freedom, an organization supporting the far the best of the current round. I've xerox- the truth to serve the interests of the powedid or cater ed it liberally and passed it around. There is to the ignoble in the human spirit. U.S.-Israel relationship, I negotiated an Writers are responsible for their own work, but not agreement on platform language with Chair- a kind of Perot sickness in Dallas, and appar- for anything they have not themselves written, and in pub- man Bob Slagle of the Texas Democratic ently everywhere, waiting for Jesus, Rapture, lishing them we do not necessarily imply that we agree Party and Ruth Ann Skaff (of Memphis, Final Solution, Purity, etc. Essentially a very with them, because this is a journal of free voices. Tenn., not Houston as you report), represent- .outrageous moment in history. Keep up the SINCE 1954 ing the Arab-American community. The lan- deconstruction; the myth has a lot of technol- guage we agreed upon with regard to the ogy and dinero this time. Publisher: Ronnie Dugger Middle East was almost word for word the Rod Davis, Dallas Editor: Louis Dubose language Texans for Justice and Freedom Associate Editor: James Cullen Layout and Design: Diana Paciocco, Peter Szymczak drafted. We never discussed inclusion or Copy Editor: Roxanne Bogucka exclusion of language expressing the special No Cake Walk Mexico City Correspondent: Barbara Belejack relationship between the U.S. and Israel, as Ann Richards', Gib Lewis', and Bob Editorial Interns: Jubilee Barton, Jay Brida, Paula you mistakenly report. George, Lorri J. Legge, Kate McConnico Bullock's recent message to Texas public Contributing Writers: Bill Adler, Betty Brink, Warren The agreements we reached contained a schools, in which they reneged on promised Burnett, Jo Clifton, Terry FitzPatrick, Gregg Franzwa, certain code of conduct. After several viola- school funding, taught students across the James Harrington, Bill Helmer, Ellen Hosmer, Steven tions of the agreement by Arab-American state a whole new meaning to "The Turn of Kellman, Michael King, Deborah Lutterbeck, Tom delegates, Chairman Slagle declared that the McClellan, Bryce Milligan, Greg Moses, Debbie Nathan, the Screw." Great lesson, gang. Gary Pomerantz, Lawrence Walsh. - Arab-American delegates had breached the Carol Countryman, Athens Editorial Advisory Board: David Anderson, Austin; agreement and that the agreement was null Frances Barton, Austin; Elroy Bode, El Paso; Chandler and void. Since there was no agreement on P.S.: Coming soon: Bake Sale and Car Davidson, Houston; Dave Denison, Cambridge, Mass; platform language, the Platform Committee, Bob Eckhardt, Washington, D.C.; Sissy Farenthold, Wash (proceeds to pay for public education). Houston; Ruperto Garcia, Austin; John Kenneth Galbraith, in its wisdom, and not as retribution for the Cambridge, Mass.; Lawrence Goodwyn, Durham, N.C.; breach, adopted platform language which George Hendrick, Urbana, Ill.; Molly Ivins, Austin; Larry mirrored previous platform language recog- Persistence Rewarded L. King, Washington, D.C.; Maury Maverick, Jr., San nizing the special relationship between the Just a few comments regarding your paper. Antonio; Willie Morris, Oxford, Miss.; Kaye Northcott, Austin; James Presley, Texarkana; Susan Reid, Austin; United States and Israel, the only democracy First, I do appreciate your renewal letters Tor- Geoffrey Rips, Austin; A.R. (Babe) Schwartz, Galveston; in the Middle East. The platform also added mat. Second, I feel it is essential to have your Fred Schmidt, Fredericksburg. the language earlier agreed upon with the paper this year what with a Native Son possi- Arab-American delegates. The Arab- bly being a presidential candidate. Third, I Poetry Consultant: Thomas B. Whitbread American delegates attempted to offer a wish you had Molly [Ivins] as a more fre- Contributing Photographers: Bill Albrecht, Vic Hin- minority report of the Platform Committee quent contributor. terlang, Alan Pogue. Contributing Artists: Michael Alexander, Eric Avery, on the floor of the convention and that report I had wanted to see your publication for Tom Ballenger, Richard Bartholomew, Jeff Danziger, was voted down by 2 to 1 according to several years, but never was able to track it Beth Epstein, Dan Hubig, Pat Johnson, Kevin Kreneck, Democratic Party officials. down. Finally, our youngest daughter, who is Michael Krone, Carlos Lowry, Ben Sargent, Dan Your Associate Editor, James Cullen, a Business Librarian at the University of Thibodeau, Gail Woods, Matt Wuerker. apparently decided not to interview members Missouri (Columbia), gave me the original of Texans for Justice and Freedom or Chair- subscription and I have enjoyed having it. Managing Publisher: Cliff Olofson Lee Gray, Aledo, Ill. Subscription Manager: Stefan Wanstrom man Slagle. Had he done so, he would have Executive Assistant: Gail Woods learned that the "factual scenario" he re- Special Projects Director: Bill Simmons ceived from the briefing party was incorrect. P.S.: I wish we, in Illinois, had a similar Development Consultant: Fiances Barton Finally, we agree with Ms. Skaff that the check on our state government. Democratic Party should continue to work SUBSCRIPTIONS: One year $27. two years $48, three years $69. Full-time students $15 per year. Back issues $3 prepaid. Airmail. foreign. group, and with Arab-Americans. Our primary goal, bulk rates on request. Microfilm editions available from University Microfilms Intl.. 300 N. Zeeb Road. Ann Arbor. MI 48106. Any current subscriber who however, is to elect Bill Clinton to the finds the price a burden should say so at renewal time: no one need forgo White House and not to engage in the reading the Observer simply because of the cost. unpleasantness attendant with the breach Write THE TEXAS OBSERVER (ISSN 0040-4519/USPS 541300), entire contents copyrighted. 01992. ispublished biweekly except for a three-week interval of an agreement. between issues in January and July (25 issues per year) by the Texas Observer Marc R. Stanley, Chairman, Dialogue. Publishing Co.. 307 West 7th Street. Austin. Texas 78701. Telephone: (512) 477-0746. Second-class postage paid at Austin. Texas. Texans for Justice and Freedom, Austin POSTMASTER: Send address changes to THE TEXAS OBSERVER. 307 West 7th Street. Austin. Texas 78701. 307 West 7th Street, A Member of the Editor's Note: Cullen attended the Platform Association of Committee hearing at which the alleged Austin, Texas 78701 Alternative Newsweeklies breach of the agreement was discussed and observed as attempts to preserve the compro- 2 • JULY 24, 1992 T HE TEXAS EDITORIALS server VOLUME 84, No. 14 Deja Voodoo Economics FEATURES Remaking the Democrats By Dave Denison ONE OF THE DEMOCRATIC Con- Public Citizen's Congress Watch director 5 N vention speakers I listened to mentioned Michael Waldman wrote in the June 29 issue GOP Dry Run it. Ross Perot alluded to it once, telling a talk- of The New Republic. Waldman explained that By Kate McConnico 7 show host that one of the largest banks in failing financial firms often nose-dive into the country (read: Citicorp) is insolvent. But "insolvency spirals," gambling on riskier loans Almost Elvis other than Ross' moment of candor, no one is and paying extra-high interest rates to attract By Allan Freedman 8 discussing one of the most important issues new customers. Having seen the effect of the of this election year. Only if you read and S&L policy of forbearance, financial advisers Perot: Backdoor Man listen, paying careful attention to writers now agree that it is better to take control of a By James Cullen 9 and thinkers like William Greider, Lawrence bank as soon as it becomes insolvent. Waldman Goodwyn, Tom Ferguson, Jim Hightower, and points to the one-year delay in last year's Pampa and Woody Guthrie Tom Schlesinger of the Campaign for takeover of the Bank of New England, which By Richard Hughes • 15 Financial Democracy, will you begin to have increased bailout costs to $2.5 billion. some idea of what's waiting for you after Though prompt and fiscally responsive action DEPARTMENTS the election. by the Bush Administration now could help turn 3 Henry B. Gonzalez knows. The San the tide and save billions in taxpayer dollars, Editorials Antonio congressman has known for a long don't count on it. "When regulators seize a bank, Las Americas time, probably even before June 22, 1990, it means bad headlines, consumer jitters, and when, obviously concerned about the odd economic dislocation," Waldman wrote. Not Quiet Election in 0-J By Jack McNamara arithmetic by which the FDIC guarantees bank the sort of thing that George Bush has much 12 deposits, he questioned then-Comptroller of stomach for.