Friday, March 16, 2012
Nobody Asked Me, But...
Thursday, March 15, 2012
Fallout Boy
Goldman Sachs Group Inc. (GS) saw $2.15 billion of its market value wiped out after an employee assailed Chief Executive Officer Lloyd C. Blankfein’s management and the firm’s treatment of clients, sparking debate across Wall Street.
The shares dropped 3.4 percent in New York trading yesterday, the third-biggest decline in the 81-company Standard & Poor’s 500 Financials Index, after London-based Greg Smith made the accusations in a New York Times op-ed piece.
Not that it couldn't happen to a nicer firm, mind you.
Flipping Burghers
WASHINGTON — Mitt Romney told the Chicago Sun-Times on Wednesday he does not want to close Planned Parenthood, just strip it of federal money. Romney’s comments were the subject of Democratic attacks after he said he wanted to “get rid” of the organization.
“Planned Parenthood is a private organization. What I want to get rid of is the federal funding of Planned Parenthood,” Romney said in an interview.
[...] Discussing reducing the debt in a St. Louis TV interview {Tuesday}, Romney said, “Is the program so critical, it’s worth borrowing money from China to pay for it? And on that basis of course you get rid of Obamacare, that’s the easy one. Planned Parenthood, we’re going to get rid of that. The subsidy for Amtrak, I’d eliminate that. The National Endowment for the Arts, the National Endowment for the Humanities.”
You know, that's a fair criterion for judging whether a program is worth it or not: can we afford it? Is it worth borrowing from China (and owing them indefinitely) to fund a program?
It's not the criterion I would choose to judge programs that don't necessarily fall into line in a cost-benefit analysis matrix, like any social program like the NEA or Constitutional mandate like voter rights or interstate trade, but it's a platform that has some logic to it and at least allows us to have a debate that goes beyond "Well, what are you basing this judgement on?"
But that's a digression and a different column, allowing another nation to dictate domestic policy. I want to look more closely at this Planned Parenthood flip-flop.
His initial comment in the Tuesday interview, where he says he'll "get rid of" Planned Parenthood, some have said, was a dog-whistle to the evangelical right, which of course views Planned Parenthood as an abortion vehicle only.
I don't agree with this assessment. I think ol' Mitt just got caught up in his elocution lessons and tried to come up with a trifecta of get-rid-ofs in the time honored tradition of reinforcing the message with repetition. His mouth got ahead of his mind (admittedly, not a hard thing to do.)
His walk-back yesterday will have genuine repercussions in that same evanglical community, of course, those who misinterpreted the gaffe as a sign Mitt was moving closer to their views.
If Mitt was capable of such subtlety, we would have seen signs of it long ago. His walk-back comments suggest to me he either genuinely made a gaffe in the first place, or realized he had pandered to the wrong audience. Since evangelicals are not, have not been and never will be his base, this seems to be an unlikely situation. He clearly intended this for the general electorate.
Of course, the logic of de-funding Planned Parenthood has its own complications, if you're looking to stop borrowing money from the Chinese who have their own rather liberal birth control & abortion policies as they try to limit their burgeoning population with their "One Child Policy."
If you can call forced sterlizations and forced abortions "liberal."
Indeed, it strikes me that China would be less likely to loan us a lot money for healthcare for babies born out of wedlock than a few bucks to prevent those pregnancies in the first place.
Wednesday, March 14, 2012
Atlantis Is About To Blow Up. Again.
The Medium Is The Massage
Possible Future Headline
A departing Goldman Sachs Group Inc. (GS) employee mounted an unprecedented public attack on its “toxic and destructive” culture in a New York Times opinion piece, becoming the first serving insider to openly criticize the firm.
Greg Smith, identified by the newspaper as an executive director and head of the firm’s U.S. equity derivatives business in Europe, will leave the firm after 12 years, blaming Chief Executive Officer Lloyd Blankfein and President Gary Cohn for losing hold over the firm’s culture. Executive directors are junior to managing directors and partners, the most senior rank.
His op-ed piece can be found here (surprisingly, not behind the paywall), and let me pull some quotes for you.
To put the problem in the simplest terms, the interests of the client continue to be sidelined in the way the firm operates and thinks about making money. Goldman Sachs is one of the world’s largest and most important investment banks and it is too integral to global finance to continue to act this way. The firm has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify with what it stands for.
[...] For more than a decade I recruited and mentored candidates through our grueling interview process. I was selected as one of 10 people (out of a firm of more than 30,000) to appear on our recruiting video, which is played on every college campus we visit around the world. In 2006 I managed the summer intern program in sales and trading in New York for the 80 college students who made the cut, out of the thousands who applied.
[...] What are three quick ways to become a leader? a) Execute on the firm’s “axes,” which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit. b) “Hunt Elephants.” In English: get your clients — some of whom are sophisticated, and some of whom aren’t — to trade whatever will bring the biggest profit to Goldman. Call me old-fashioned, but I don’t like selling my clients a product that is wrong for them. c) Find yourself sitting in a seat where your job is to trade any illiquid, opaque product with a three-letter acronym.
Smith would be about 35 at this point (assuming he joined out of his MBA program: he's younger if it was straight out of college), so he's not wet behind the ears and has seen first hand the toxic nature of money. Lots and lots of money.
I suppose it was inevitable that the housing bubble would make more money for Wall Street than nearly every other bubble combined. And that it would turn Wall Street sharks into megalodons, supersharks with no remorse and no thought about anything besides the eyes on the prize.
After all, these same folks grew up in an America that valued money above all else, that put television programs like Lifestyles of the Rich and Famous front and center during their formative years. We minimized the collective aspect of what made America great, the clasped hands, the men and women working side by side on the factory floor to make affordable quality products, not necessarily the cheapest, but the best value, the best your money could buy.
We lost sight of that in the rush to profits, egged on by an investor class more and more out of touch with America. Indeed, it's no surprise to me that trading is done by software now, not human beings.
After all, it's a war, and in war it's much easier to kill someone by pressing a button miles away than walking up to them, knife in hand.
I don't envy Smith the backlash he'll receive here, and I offer my services to defend him as best as I can in any way I can, because telling the truth in finance is a rare commodity, and one that there ought to be a trading floor opened for.
The Political Nature Of Television
Time travel TV series have come under fire since two schoolgirls in East China's Fujian province killed themselves on Thursday after leaving notes saying the suicides could help them travel back to ancient times.
The two girls, Xiao Mei and Xiao Hua (not their real names), were fifth-grade classmates at a primary school in Zhangpu county, Zhangzhou.
On Thursday afternoon, Xiao Hua realized she lost the remote control for a rolling door at her house. She was worried and told her friend Xiao Mei.
At 4 pm, the girls each wrote suicide notes and hid them in a closet at Xiao Hua's home. Then they jumped into a pool and drowned themselves.
According to a media report in February, a 19-year-old Liaoning province woman, Xiao Dan (not her real name), told police she had paid 1,800 yuan ($285) to a Net friend who claimed she could help her travel to the ancient past but disappeared after receiving the money.
Because of several stories along these lines emerging, the State Administration of Radio, Film and Television banned prime time - 7 to 9 pm - broadcasts of this kind of TV series at the beginning of this year.
Update
Tuesday, March 13, 2012
Freedom
Monday, March 12, 2012
Even I Think It's Too Much
It's So Cute You Think That, Rick
WASHINGTON (AP) — Rick Santorum predicted Monday that he would get the Republican presidential nomination if the race remains undecided by the time the party holds its nominating convention this summer.
Though former Massachusetts Gov. Mitt Romney has a commanding lead in the crucial race for delegates, Santorum said the race is about to enter a period where he will face fewer disadvantages. To date, Romney has outspent Santorum and had stronger campaign organizations working for him.
"They are not going to nominate a moderate Massachusetts governor who's been outspending his opponent 10-1 and can't win the election outright," Santorum said on NBC's "Today" show. "What chance do we have in a general election if he can't, with an overwhelming money advantage, be able to deliver any kind of knockout blow to other candidates?"
Sure they will, and I'll tell you why: in a general election, you aren't going to win with a fucking religious loon who somehow believes himself superior to the very people whose votes he's trying to win.
Now, that would apply to both Mitt and you, with one glaring difference: Mitt isn't trying to stuff Mormonism down people's throats.
While he hasn't exactly been moderating the tone of the Republican campaign or its many minions and overlords (e.g. Rush Limbaugh) Mitt has at least stopped from all-but claiming women who don't want to be pregnant are an enemy of the state.
Do you honestly think that there's a mainline Republican alive who doesn't privately cringe each and every time you open your mouth and spew forth such seage-like froth? How incredibly egoistical of you to think you are somehow better than the people who will have to live with the consequences of your hate-filled tirades after you've long devolved into the muck to which you have consigned yourself.
Look, I'm a liberal of the most liberal stripe: I make Michael Moore blush. But I'm also painfully aware that my viewpoint and dreams for this nation are premature. We have a significant part of the population that's terrified of things that work: Healthcare. Equality. Opportunity. Fair taxation. Color- and faith-blindness. My POV needs an opposing viewpoint, but as they used to qualify under the Fairness Doctrine, a responsible one.
No country can move forward without someone carefully, sobering tugging on the reins. You want to stop the nation on a dime in a panic, emergency-brake slide, when all we need is to tap the brakes every so often to make sure we're doing the right thing.
We're only human, after all.
You, apparently, believe you are more.