Wednesday, September 07, 2011
Two For Two
Follow Up
Color Me Surprised
Shoes For Industry!
Dire Straits
School's In. Lie Carefully
Tom Crone, News Group's former legal manager, and Colin Myler, former News of the World editor, told MPs on Tuesday that Mr Murdoch was told of the email, in which a junior reporter transcribed hacked messages from Mr Taylor's voicemail, in a 15-minute meeting in 2008.
Mr Crone said Mr Murdoch had to be told of the email as it was the reason the company had to settle rather than fight Mr Taylor's claim. Mr Murdoch's authorisation was needed for that, he said.
Mr Myler told MPs it was ''inconceivable'' that Mr Murdoch was unaware that the email indicated hacking was more widespread. ''I think everybody perfectly understood the seriousness and significance of what we were discussing. There was no ambiguity about the significance of that document,'' he said.
Buh-bye! Don't let the door hit you on the way out.
Meh. It's A Start
Diacritical Marx
Yet some of our top university professors, winners of Nobel prizes, and central bankers who are the subjects of adoring books, still preach the hyper-efficiency of self-correcting markets. They demonize the actions of policy makers who try to intervene to help offset demand contractions (as in the Recovery Act), impose regulatory structure on key markets (financial regulatory reform), strengthen social insurance (health care reform), invest in public goods (infrastructure spending), or pursue industrial policies to better position our national economy (President Obama's clean energy agenda).
The intellectual actions of these extreme free marketeers do not take place in a vacuum. They interact with a political structure comprised of lobbies and pseudo think-tanks to promote policies that, while wrapped in the cloak of promoting free markets, ultimately serve to redistribute growth to the top of the wealth scale. "Efficient market hypotheses" and "rational expectations"--the idea that absent government interference, market participants will make optimally efficient decisions--leads directly to supply-side tax cuts, deregulation of financial markets, the formation of financial bubbles, the acceptance of income stagnation, and disinvestment in public goods. And these measures, in turn, have delivered levels of income and wealth inequality not seen since the late 1920s, along with policy handcuffs that today have us arguing about how to reduce, rather than strengthen, regulations.
Shorter Jared Bernstein: "Braaaaaaaaaaaaaanes bad but good food."
Economics has been called "the dismal science" for good reason. It's bad science and usually gets the answer wrong (I'm aware of Carlyle's original meaning.) Economics, because it is so intertwined in the human experience, cannot make accurate predictions on its own. For example, it presupposes conditions that simply do not exist: rationality, perfect knowledge, perfect elasticity, free markets (or not.)
You can't theoretically test economics the way you can, say, physics or global environmental science. You can make limited predictions that might demonstrate some useful bits of information, but the application of that information becomes unwieldly, inaccurate, and ultimately self-defeating.
In many ways, the Heisenberg uncertainty principle applies first and foremost to the science of economics. Observing the phenomenon immediately voids the theoretical constructs involved.
This is not to suggest the economics has no value. For example, it's very good at helping us get a general understanding of how the world works from a commercial point of view. If you pull back the lens to a wide focus, you see a general application of principles, and they work pretty well: demand for a product does drive the price of the product up until supply catches up. Run a surplus of production and you have to lower prices to sell off the inventory.
Even socialism has value, as one of the few economic theories that tries to incorporate the human factor (it fails on other merits, to-wit the quality of that human factor. At least capitalism acknowledges greed as a motivator.) To each according to his needs, from each according to his abilities, that makes a lot of sense. On a limited scale, it works rather nicely, too.
But I digress.
The simple fact is, economics has become so divorced from the real world mechanics its supposed to describe, as Bernstein points out, that we cannot rely on it to be accurate. For example, it's not unusual for a stock market to go into decline when the economy is bad. It is unusual for the market to go into decline when companies are reporting record profits and projecting decent growth into the future.
That's a disconnect. There's something manipulating either the market or the economy, or both. Bernstein points out the intransigence of the "marketeers" which explains a lot. Even gravity will be suspended if you flap your arms fast enough. The trouble is, eventually, gravity sucks.
Tuesday, September 06, 2011
More Moore, More
“I don’t understand why he’s chosen the path he’s chosen, why he did not come in fighting for the working people of this country,” Moore tells Newsweek. “He could have been a great president. He could have pulled us back from the abyss.” Instead, “he came in more as Neville Chamberlain, wanting to appease Republicans.” Moore hasn’t even decided whether he’ll vote for Obama again in 2012; he likes Jon Huntsman on the Republican side, saying “it’s crazy time over there” and Huntsman is the only “sane candidate.” “If the Republicans were smart, they would nominate [him].”
Torn By A Huntsman's Pack
Fab Jive, Freddie
Ripe For A Gaffe
M-I-C...See You Real Soon! K-E-Y...Why?
Between His Rock And A Hot Place
A New Hope?
The Lost Decade
Friday, September 02, 2011
Nobody Asked Me, But...
Hubbard is proposing with colleagues Christopher Mayer and Alan Boyce a national refinancing of mortgage debt for the estimated 37 million federally guaranteed loans Americans have with government mortgage issuers like Fannie Mae and Freddie Mac. The issuers would send borrowers an application to refinance at current low mortgage rates; the borrowers would have to be current or become so for at least three months; no down payment would be required; and the government would guarantee the new loans just as it chose in 2008 to guarantee the existing ones, meaning taxpayers would not be taking on any new risk.A national refinancing effort could slow the number of foreclosures by making mortgage payments more manageable for borrowers who can stay in their homes if they get a few thousand dollars a year in interest savings. It might also stimulate consumer spending — Hubbard estimates $50 billion to $70 billion worth — as homeowners wouldn't feel quite so pinched. "A national refinancing would be like a large, permanent tax cut which would have a very big effect on the economy," says Hubbard, who has briefed the Obama Administration since he introduced the idea.
8) Please. Get involved.
9) Maybe Mother Nature is trying to tell us something.
10) Finally...this story appears to be serious.
Wednesday, August 31, 2011
Public Service Announcement
Pop Quiz
Grain Of Salt
It's Both Embarassing And Funny
It was there, on Saturday morning, that @ElBloombito was born. Hurricane Irene was bearing down on New York City, and Ms. Figueroa-Levin was chuckling about Mayor Michael R. Bloomberg’s heavy American accent and prolific mispronunciations when he delivered warnings in Spanish about the storm during a news conference the previous night.
So she took to Twitter, and began to type.
“Hola Newo Yorko! El stormo grande is mucho dangeroso!” she wrote. And then the Twitter messages began to flow — from the living room computer, from a laptop in her bedroom and from the iPhone she carries everywhere, having mastered the skill of typing on it with one hand while holding her daughter in her other arm.
“Fill los bathtub con agua por preparando el no agua,” read one post. “Los floodwaters!” exclaimed another.
Sadly, she's not exaggerating by half (only a little). He really does sound like Archie Bunker.
Thinning The Herd
Great Healthcare System We Got Here
I Had A Dream
A Leap Forward
Now scientists from the University of Kentucky and the University of Louisville have found an inexpensive semiconductor material that can split water solely using sunlight as its energy source. Their findings were published in the journal Physical Review B.
Not to worry, because researchers at the University of Southern California (USC) have come up with a way to safely store hydrogen in a harmless chemical material. Their research was published in the Journal of the American Chemical Society.
Oh Great! Now They're Blackmailing us With Jobs?
Tuesday, August 30, 2011
SASQ
Oath, Shmoath
Irene Is Mostly Behind Us
The Day The Earth Stood Still
Queen Of Denial
In an exclusive live interview on TODAY Tuesday, former Vice President Dick Cheney disputed the notion that the invasion of Iraq has weakened America’s standing in the global community.
“I don’t think that it damaged our reputation around the world,’’ he told Matt Lauer. “I just don’t believe that. I think the critics at home want to argue that. In fact, I think it was sound policy that dealt with a very serious problem and eliminated Saddam Hussein from the kind of problem he presented before.
Lemme see...we unilaterally invaded a sovereign nation under false pretenses, then changed those false pretenses to yet another set of false pretenses, then changed THOSE pretenses to a justification that wouldn't have passed the smell test with Neville Chamberlain, then rounded up suspects among an innocent people and tortured them, and all we managed to accomplish was to eliminate a pathetically inept dictator of a fourth rate military power who had already been contained by our massive air superiority in conjunction with our allies under the auspices of a recognized international peacekeeping body, all while inflaming a region that already had reason to hate us.
So, um, what WOULD weaken our standard in the international community, Dick?
Why We Are In For More Trouble Before We Get Less
[John] Taylor is the chairman and CEO of FX Concepts, a hedge fund that specializes in currency speculation. It's the largest hedge fund of its kind worldwide, which is why Taylor is held partly responsible for the crash of the euro. Critics accuse Taylor and others like him of having exacerbated the government crisis in Greece and accelerated the collapse in Ireland.People like Taylor are "like a pack of wolves" that seeks to tear entire countries to pieces, said Swedish Finance Minister Anders Borg. For that reason, they should be fought "without mercy," French President Nicolas Sarkozy raged. Andrew Cuomo, the former attorney general and current governor of New York, once likened short-sellers to "looters after a hurricane."
The German tabloid newspaper Bild sharply criticized Taylor on its website, writing: "This man is betting against the euro." If that is what he is doing, he is certainly successful. While Greece is threatened with bankruptcy, Taylor is listed among the world's 25 highest-paid hedge fund managers.
Markets serve a purpose. They do whittle the fat out of inefficiencies. If a firm spends more than it should, for example, the markets respond by bidding the price of the stock down, based on the theory that lower earnings means lower value in the future. This is not a bad thing. It's in many ways a healthy measure of company's health.
Even currency speculation, in and of itself, is not a bad thing, necessarily. There's nothing wrong with profiting off a country's inability to rein in a fiscal problem. They are, after all, supposed to be run by knowledgable people.
Where it gets ugly, both on the private and public side of the equation, is when the speculators can control the game.
Ideally, markets are supposed to operate in a vacuum: everyone has equal and perfect knowledge of the future. This is why the SEC exists, along with any number of industry-standard self-regulators. They're supposed to keep the game honest, because everyone is supposed to have a fair roll of the dice.
In practice, as we've seen, things don't work that way. Investment bankers become politicians and more and more often, politicians become investment bankers. This means not only is information imperfect, it's gamed and massaged to benefit those in the know over those out of the loop.
Speculators are the worst. Not only will they game the information, they'll interpret every single development like it's a Talmudic passage.
Think of the birthers and the Obama flap, and now add trillions of dollars to the mix, and you'll see how dangerous this game can be.
But hey, the rules are the rules, and these idiots think they're playing by them!
"The big problem is that in some cases these politicians are looking for the easy way out and want to blame somebody else and say speculators are taking Europe apart, taking the euro down and ruining the prosperity of our country," he says, characterizing such charges against hedge fund managers as "nonsense." "My capital isn't the capital of the Rothschilds," he says, insisting that he is working with the "capital of the people," and that his goal is to protect and increase this capital. Taylor points out that no one from any of the German pension funds that invest their money with him has ever called him on the phone to tell him not to bet against the euro.
Don't blame him because politicians have to scramble to fix the problem! After all, it's only people's lives, fortunes and sacred honor involved!
Sexual Transmissions
Monday, August 29, 2011
Ever Wonder What It Would Have Been Like To Be The Last Person Out?
How Fast Does Rain Fall?
What Did You Think Was Going To Happen, Shithead?
Dumbest. Republican. Of The Week.
This Is Your Lord, Jesus....
False Start On False Starts
The End Of Ron Paul's Aspirations
Even as hurricane Irene was roaring up the East Coast, Ron Paul was asking why the federal government has any role in disaster management and relief.
Drunk and stupid is no way to go through life, Congressman.
Thoughts On Irene
The Right Move
Oh, Micky! You're So Fine, You Blow My Mind!
Equal Rights For The Ugly
Zev Chafets Needs An Enema
President Obama has largely adopted the Cheney playbook on combating terrorism, from keeping Gitmo open to trying suspected enemies of the state in military tribunals. Obama’s drone war, which has quadrupled the number of attacks in the past two years, reflects Cheney’s whatever-it-takes approach. The leftist wrath once trained on Bush’s veep is aimed at the Democratic incumbent these days. Even the Bush-Cheney pro-democracy doctrine, born as a substitute rationale for the Iraq War after the failure to find WMD, is bearing fruit, toppling dictators from Cairo to Tripoli. The dirty little secret of the last few years is that the man George Bush called “Big Time” won. We’re all Cheneyites now.
“After I finished,” he writes, “the president asked, ‘Does anyone here agree with the vice president?’ Not a single hand went up around the room.”
A room full of blood-thirsty, pro-Israel necons unanimously voted him down. There's the Bush administration in a nutshell: too little, too late, and too stupd.
Zev Chafets Needs An Enema
President Obama has largely adopted the Cheney playbook on combating terrorism, from keeping Gitmo open to trying suspected enemies of the state in military tribunals. Obama’s drone war, which has quadrupled the number of attacks in the past two years, reflects Cheney’s whatever-it-takes approach. The leftist wrath once trained on Bush’s veep is aimed at the Democratic incumbent these days. Even the Bush-Cheney pro-democracy doctrine, born as a substitute rationale for the Iraq War after the failure to find WMD, is bearing fruit, toppling dictators from Cairo to Tripoli. The dirty little secret of the last few years is that the man George Bush called “Big Time” won. We’re all Cheneyites now.
“After I finished,” he writes, “the president asked, ‘Does anyone here agree with the vice president?’ Not a single hand went up around the room.”
A room full of blood-thirsty, pro-Israel necons unanimously voted him down. There's the Bush administration in a nutshell: too little, too late, and too stupd.



