Saturday, April 30, 2011
Not Exactly a Resounding Success
Terry Jones came back to Dearborn yesterday and led his protest against Islamists. He's also added the President to his list of people he doesn't like. Jones did have trouble being heard as the crowd was quite vocal and they also threw stuff at him. Jones cut the rally short; he probably thought he had gotten enough publicity. He says he will return to Dearborn to continue his battle.
Friday, April 29, 2011
Elizabeth Warren on The Daily Show
It is a long interview, but she is leading the effort to regulate the financial industry so that you and I will have a fair chance. Of course, the financial industry thinks they played a small part in causing the Great Recession and, being good citizens, are fighting to ensure that the Consumer Financial Protection Bureau (CFPB) does not get off the ground or, if it does, that it has little power. The bureau is not an ideal by any means, but we need to ensure that the CFPB does get off the ground however imperfect it may be.
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Exclusive - Elizabeth Warren Extended Interview Pt. 1 | ||||
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| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Exclusive - Elizabeth Warren Extended Interview Pt. 2 | ||||
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| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| Exclusive - Elizabeth Warren Extended Interview Pt. 3 | ||||
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Wednesday, April 27, 2011
Cutting the Defense Budget
Foreign Policy has an article by Col. Douglas MacGregor who proposes the following steps to reduce the Pentagon budget:
Estimated annualized savings resulting from withdrawals from overseas garrisons and restructuring the United States' forward military presence: $239 billion
Estimated annualized savings from reorganizing the Army and Marine Corps: $18 billion
Estimated annualized savings from reductions in naval surface forces and Marine fixed-wing aviation: $10 billion
Estimated annualized savings from eliminating the F-35B: $2.5 billion
Estimated annualized savings from reducing the number of unified commands and single service headquarters: $1 billion
Estimated annualized savings from eliminating the Department of Homeland Security and restructuring national intelligence and the Army National Guard: $7 billion
I am far from really knowledgeable about the details of the defense budget, but it makes a heck of a lot of sense for us to really scale back our presence in the rest of the world. It probably also makes sense to do something about DHS. And MacGregor makes a good case for his other projected cuts. All in all it seemed to make sense for me to post my reaction to this article. However as is my wont, before doing so, I thought I should learn something about the colonel.
Google showed that he is truly an iconoclast; he was shunted off the promotion track because of his unconventional ideas. But many have experienced the same reaction for being unconventional. Google also led me to the colonel's web site, which is clearly unconventional. Being a military man, he has a mission statement, which is really a brief resume. Being a marketer, he provides a sample of his speaker's letter, which is a direct mail pitch to hire him as a speaker for $4,000 - $10,000 a speech. Being a 21st century guy, he has a YouTube Video Channel; I was especially struck by "Lunch-on-Libya" a video which advertised an upcoming speech to the Northern Virgina Tea Party. You'll find other interesting videos on his channel.
Does the fact that he is on the opposite political spectrum from me invalidate his argument re the defense budget? I think not.
Google showed that he is truly an iconoclast; he was shunted off the promotion track because of his unconventional ideas. But many have experienced the same reaction for being unconventional. Google also led me to the colonel's web site, which is clearly unconventional. Being a military man, he has a mission statement, which is really a brief resume. Being a marketer, he provides a sample of his speaker's letter, which is a direct mail pitch to hire him as a speaker for $4,000 - $10,000 a speech. Being a 21st century guy, he has a YouTube Video Channel; I was especially struck by "Lunch-on-Libya" a video which advertised an upcoming speech to the Northern Virgina Tea Party. You'll find other interesting videos on his channel.
Does the fact that he is on the opposite political spectrum from me invalidate his argument re the defense budget? I think not.
Profitable Panic
It was only two years ago that Tamiflu was the word of the day for many days and for many people. It was the days of the H1N1 virus. Mexico practically shut down for a few weeks. China quarantined travelers. Egypt killed all the pigs in Cairo. And WHO officially announced a pandemic emergency and urged the world to buy Tamiflu, as it was the drug you needed to fight the virus. Fortunately, there was not a pandemic as fewer people died from influenza than in a 'normal' year. However, many countries did stockpile the drug, which was not given away by the manufacturers, and the stockpiles were not depleted in any fashion. Having spent hundreds of millions of euros on this drug, some European countries started asking questions about WHO.
One question was the need for a declaration of a pandemic emergency when the H1N1 virus was known to be mild. The second question concerned the influence of drug companies on WHO's declaration. It is this latter question that Helen Epstein explores in this article from the NY Review of Books. Her conclusion: the drug companies play a very large role in the pronouncements of public health agency, both foreign (WHO) and domestic (FDA).
Roche and GlaxoSmithKline helped develop WHO's "pandemic preparedness" programs. They helped create the documents for the H1N1 program, which documents advised the stockpiling of drugs they made. They had their people as part of the committee that declared the pandemic. The International Federation of Pharmaceutical Manufacturers Association has awarded grants to our Centers for Disease Control. A good part of the FDA's budget comes from fees it collects from the drug manufacturers they 'regulate'.
The article goes on at great length questioning the validity of the clinical trials for Tamiflu, the most serious question being why Roche will not supply the basic clinical data to independent researchers who are trying to validate the conclusions described in journal articles.
One question was the need for a declaration of a pandemic emergency when the H1N1 virus was known to be mild. The second question concerned the influence of drug companies on WHO's declaration. It is this latter question that Helen Epstein explores in this article from the NY Review of Books. Her conclusion: the drug companies play a very large role in the pronouncements of public health agency, both foreign (WHO) and domestic (FDA).
Roche and GlaxoSmithKline helped develop WHO's "pandemic preparedness" programs. They helped create the documents for the H1N1 program, which documents advised the stockpiling of drugs they made. They had their people as part of the committee that declared the pandemic. The International Federation of Pharmaceutical Manufacturers Association has awarded grants to our Centers for Disease Control. A good part of the FDA's budget comes from fees it collects from the drug manufacturers they 'regulate'.
The article goes on at great length questioning the validity of the clinical trials for Tamiflu, the most serious question being why Roche will not supply the basic clinical data to independent researchers who are trying to validate the conclusions described in journal articles.
India or Bangladesh?
Before I read this article by Amartya Sen, I thought that the average Indian was much better off than his counterpart in Bangladesh. I was right if I looked only at GNP per capita; India at $1,170 is almost double the $590 of Bangladesh. But money isn't everything. For example
- Indians die sooner (66.4 vs. 66.9 years)
- More of their children are underweight (43.5% vs 41.3%)
- They have less schooling on average (4.4 vs. 4.8 years)
- Infant mortality is higher (50/1000 vs. 41/1000)
- Fewer children are vaccinated (66% vs. 94%).
Tuesday, April 26, 2011
Masters of the Game
If the game is complying with Title IX, many colleges, including such household names as Cornell, Duke, UCal, Texas A&M, certainly play the game well. Basically, Title IX says that colleges that receive money from the federal government must provide equal opportunity to all members of either sex who wish to participate in educational programs or activities. But the rules to comply are not as straightforward as they should be.
For example, colleges can count men as women if they practice with female teams. Cornell has 15 men practicing with the 34 person fencing team. Ergo, Cornell adds 34 to the total number of women participants. Texas A&M and Duke do the same with their women's basketball teams.
Some colleges include as team members 'athletes' who never compete. That's the strategy the University of South Florida used; only 28 of their 71 member cross country team actually entered a race. In fact, some members of the team claimed they did not know that they were members. Track is an especially good sport to help meet the regulations, as one person who competes in indoor, outdoor and cross country is counted three times.
The more you read about colleges playing games like Title IX, paying outrageous salaries to coaches and presidents, accepting people who just about graduate from a crummy high school, offering special courses for athletes, etc. ad nauseam, the more you wonder how low we have sunk.
For example, colleges can count men as women if they practice with female teams. Cornell has 15 men practicing with the 34 person fencing team. Ergo, Cornell adds 34 to the total number of women participants. Texas A&M and Duke do the same with their women's basketball teams.
Some colleges include as team members 'athletes' who never compete. That's the strategy the University of South Florida used; only 28 of their 71 member cross country team actually entered a race. In fact, some members of the team claimed they did not know that they were members. Track is an especially good sport to help meet the regulations, as one person who competes in indoor, outdoor and cross country is counted three times.
The more you read about colleges playing games like Title IX, paying outrageous salaries to coaches and presidents, accepting people who just about graduate from a crummy high school, offering special courses for athletes, etc. ad nauseam, the more you wonder how low we have sunk.
Monday, April 25, 2011
Another Posting About A College Education
I think that it was in my youth that the nation began thinking of college as a way to a better job, rather than a way to become better educated about life and living. In my old age going to the right college has become the be-all and end-all for many American parents of the 21st century. They spend a lot of money and time trying to get their children into the right school. They are willing to go into debt to make sure their child gets a proper education.
And, on the seller's side of the fence, colleges spend more and more money and time trying to convince people to come to their school. There is fierce competition to be listed high up in US News annual college surveys. It has become so important to be successful in athletics that college coaches are paid in six and seven figures; many are paid more than university presidents. Of course, I'm only talking about what we consider regular colleges, not places like the University of Phoenix which are in it for the almighty dollar. Interestingly, the for-profit places do not have sports teams.
The preceding is by way of introducing you to "Bad Education", an article by one Malcolm Harris, a writer from San Francisco. Harris disputes the notions that a college education is a good investment and an unmitigated social good. He argues that tuitions have increased 900% since 1978 but the quality of education has not. In fact, there are more courses taught "by someone who has started a degree but not finished it; was hired by a manager, not professional peers; may never publish in the field she is teaching; got into the pool of persons being considered for the job because she was willing to work for wages around the official poverty line (often under the delusion that she could ‘work her way into’ a tenurable position); and does not plan to be working at your institution three years from now". He attributes much of the problem to the fact that colleges have really become businesses and they pour money into administration and marketing rather than education.
A very interesting article.
And, on the seller's side of the fence, colleges spend more and more money and time trying to convince people to come to their school. There is fierce competition to be listed high up in US News annual college surveys. It has become so important to be successful in athletics that college coaches are paid in six and seven figures; many are paid more than university presidents. Of course, I'm only talking about what we consider regular colleges, not places like the University of Phoenix which are in it for the almighty dollar. Interestingly, the for-profit places do not have sports teams.
The preceding is by way of introducing you to "Bad Education", an article by one Malcolm Harris, a writer from San Francisco. Harris disputes the notions that a college education is a good investment and an unmitigated social good. He argues that tuitions have increased 900% since 1978 but the quality of education has not. In fact, there are more courses taught "by someone who has started a degree but not finished it; was hired by a manager, not professional peers; may never publish in the field she is teaching; got into the pool of persons being considered for the job because she was willing to work for wages around the official poverty line (often under the delusion that she could ‘work her way into’ a tenurable position); and does not plan to be working at your institution three years from now". He attributes much of the problem to the fact that colleges have really become businesses and they pour money into administration and marketing rather than education.
A very interesting article.
Saturday, April 23, 2011
Holy Saturday
I'm not sure why but this day, at least in the East Cambridge of the 1940s and 1950s, was not as bound up with religion as were Holy Thursday and Good Friday. The big deal was the evening Mass, which is usually the only Mass said on Holy Saturday. It was a big deal because of the unveiling of the statues. Let me explain.
On Passion Sunday, which was the Sunday before Palm Sunday, the statues in the church were covered with purple cloths. I suppose that this was to make us think more about the upcoming crucifixion. At the Alleluia of Holy Saturday's Mass the cloths were removed to signify the upcoming Resurrection. Lent was now over. Christ was about to prove he was divine and the Roman Catholic Church was the one true church.
On Passion Sunday, which was the Sunday before Palm Sunday, the statues in the church were covered with purple cloths. I suppose that this was to make us think more about the upcoming crucifixion. At the Alleluia of Holy Saturday's Mass the cloths were removed to signify the upcoming Resurrection. Lent was now over. Christ was about to prove he was divine and the Roman Catholic Church was the one true church.
A Bad Day for Terry Jones
First, he was found guilty of breaching the peace and had to pay the huge bond of $1. However, I do think that his right to free speech was violated and he should not have been brought to court.
Then, he 'accidentally' discharged his gun..
The rally has been postponed a week. I wonder whether Mr. Jones will be quiet until the rally. It's possible that he has satiated his recent need to be in the news.
Then, he 'accidentally' discharged his gun..
The rally has been postponed a week. I wonder whether Mr. Jones will be quiet until the rally. It's possible that he has satiated his recent need to be in the news.
Friday, April 22, 2011
Good Friday
It was a quiet day at my parents' house even though it was a day off from school. Why it's called 'good' I could not understand as we were commemorating Christ's crucifixion; perhaps it's because he couldn't be resurrected unless he died and the Resurrection is the church's 'proof' of his divinity.
A couple of memories from my youth:
Good Friday is the only day of the year when Mass is not said.
We made the Stations of the Cross.
We tried to stay silent between noon and three, as this was the time when Christ was on the cross.
Thursday, April 21, 2011
"A Modest Contribution"
Gates' term for the decision by Obama to use drones to convince Gaddafi to throw in the towel. US boots on the ground by June? How much would you bet?
Holy Thursday
In the Roman Catholic Church this week is the most important. It began with Palm Sunday which commemorates Jesus' triumphal march into Jerusalem. Today is what Catholics call Holy Thursday and Protestants call Maundy Thursday. Today we remember the Last Supper at which Jesus washed the feet of his disciples.
The previous paragraph should indicate to you that I was raised Roman Catholic and, for those who read this blog, this was in the 20th century and much water has passed under the bridge. I am no longer a Roman Catholic. My children have little knowledge of the Catholic religion and my grandchildren have none. No matter, the Church was a big factor in my youth.
In the East Cambridge in which I grew up, this was a special week. Today, Holy Thursday, we made the "Seven Churches". I never knew the origin of either the term or the practice but, thanks to the web, I've learned that the term refers to the seven churches mentioned in the Book of Revelation. What we practiced on this day was a visit to seven churches, at each of which we would pray. When I was a young lad, I could not roam far from home, so we visited 3 churches a total of seven times. As I grew older and could roam as far as Inman Square, I was able to visit seven unique churches, for the lower middle class section where we lived was predominately Catholic and there was a church for every nationality.
Those days are long gone. Whether anybody still visits seven churches I know not. But the practice - and the week - was an important part of my childhood.
The previous paragraph should indicate to you that I was raised Roman Catholic and, for those who read this blog, this was in the 20th century and much water has passed under the bridge. I am no longer a Roman Catholic. My children have little knowledge of the Catholic religion and my grandchildren have none. No matter, the Church was a big factor in my youth.
In the East Cambridge in which I grew up, this was a special week. Today, Holy Thursday, we made the "Seven Churches". I never knew the origin of either the term or the practice but, thanks to the web, I've learned that the term refers to the seven churches mentioned in the Book of Revelation. What we practiced on this day was a visit to seven churches, at each of which we would pray. When I was a young lad, I could not roam far from home, so we visited 3 churches a total of seven times. As I grew older and could roam as far as Inman Square, I was able to visit seven unique churches, for the lower middle class section where we lived was predominately Catholic and there was a church for every nationality.
Those days are long gone. Whether anybody still visits seven churches I know not. But the practice - and the week - was an important part of my childhood.
Somethings to Think About Libya and Related Follies
Adam Martin in Aid Watch has some quite interesting thoughts about our work in Libya:
I wish I knew why, this time, we should expect foreign intervention to succeed at regime change. But I don’t.
I wish I knew why, this time, we should expect foreign intervention to bring democracy. But I don’t.
I wish I knew why, this time, we should expect foreign intervention to save more lives than it costs. But I don’t.
I wish I knew why, this time, we should expect foreign leaders to know what’s best for Libyans. But I don’t.
I wish I knew why, this time, we should expect we’re not training and supporting thugs. But I don’t.
I wish I knew why, this time, we should expect we won’t inspire future outrage and violence. But I don’t.
I wish I knew why, this time, the long history of disastrous foreign military intervention will find an exception. But I don’t.
I wish I knew why, this time, procedural safeguards on grave decisions are not important. But I don’t.
Human Trafficking in America
The EEOC has just filed its largest farm workers human trafficking suit. It's against a company called Global Horizons Inc., a California labor recruiter that claims to be setting "a powerful new standard in Twenty-First Century recruiting". The EEOC would dispute that claim if you define recruiting as acting in a humane way.
This is not the first time Global Horizons Inc. has been charged with human trafficking. In this particular case they enticed Thai farm workers to Hawaii. Of course the workers had to pay the company a considerable sum for this move. Then when they actually began work on the farms with which Global Horizons had contracted they really got the shaft.
In the words of the EEOC they "were forced to live in dilapidated housing infested with rats and insects, with dozens sleeping in the same room, many with no beds. They were forbidden from leaving the premises. On the job, they endured screaming, threats and physical assaults on the part of supervisors, and were isolated from non-Thai farm workers who appeared to be working under more tolerable conditions, says the EEOC. Bound by their debts, stripped of their identification and silenced by the perpetrators, the Thai workers had little recourse until the Thai Community Development Center in Los Angeles brought victims to the EEOC to file charges of discrimination."
This is not the first time Global Horizons Inc. has been charged with human trafficking. In this particular case they enticed Thai farm workers to Hawaii. Of course the workers had to pay the company a considerable sum for this move. Then when they actually began work on the farms with which Global Horizons had contracted they really got the shaft.
In the words of the EEOC they "were forced to live in dilapidated housing infested with rats and insects, with dozens sleeping in the same room, many with no beds. They were forbidden from leaving the premises. On the job, they endured screaming, threats and physical assaults on the part of supervisors, and were isolated from non-Thai farm workers who appeared to be working under more tolerable conditions, says the EEOC. Bound by their debts, stripped of their identification and silenced by the perpetrators, the Thai workers had little recourse until the Thai Community Development Center in Los Angeles brought victims to the EEOC to file charges of discrimination."
Wednesday, April 20, 2011
More Boots on the Ground
France and Italy are sending 'advisers' to help the Libyan rebels. What will next month bring?
Increasing Federal Revenue
In 2009 we collected about $9 billion in royalty payments from oil and gas companies working on federal land and water. That's a good piece of change. And it can and should be increased not by more drilling and extracting but by our improving our ability to collect what is due us.
The GAO and the Inspector General for the Interior have been telling us for years that Interior's system of collecting royalties is flawed. The GAO has not been able to figure out how much money we have lost as the record keeping of the Interior sucks. Part of the problem is due to the companies telling Interior how much they owe and Interior not being able to validate the amounts.
If Interior collected only 5% more, we'd have $450,000,000 in our pocket. Not exactly chickenfeed.
The GAO and the Inspector General for the Interior have been telling us for years that Interior's system of collecting royalties is flawed. The GAO has not been able to figure out how much money we have lost as the record keeping of the Interior sucks. Part of the problem is due to the companies telling Interior how much they owe and Interior not being able to validate the amounts.
If Interior collected only 5% more, we'd have $450,000,000 in our pocket. Not exactly chickenfeed.
Very Large Pockets, Very Small Gun
How else does a 6-year-old take a gun to school? That's what happened in Texas yesterday when the gun fell out of the kid's pocket and wounded three children. Lots of questions about the parents in my mind.
Tuesday, April 19, 2011
Time to Make the News
It's been almost a month since the Reverend Terry Jones made the news by burning the Koran, which gave the Taliban and disgruntled Afghans an opportunity to protest and kill innocent people. A month is a long time when you are addicted to being in the news. So, now he plans to rally his troops outside what is the largest mosque in the U.S. (Incidentally, there was a mysterious fire there on April 1.)
He seems to have a need to be considered a macho man; he's a peaceful guy but does carry a gun. And, naturally, he is only protesting against radical Muslims, not all Muslims. I wonder what the ratio of radical and non-radical Muslims in America is, particularly at the mosque at which he will be protesting.
Detroit is trying to prevent Jones from protesting at the Mosque itself. Authorities want him to use "free speech zones" which the city has established and which Jones - and I - think are unconstitutional.
I think the residents should take the matter into their own hands as they did in Oklahoma and Kansas.
He seems to have a need to be considered a macho man; he's a peaceful guy but does carry a gun. And, naturally, he is only protesting against radical Muslims, not all Muslims. I wonder what the ratio of radical and non-radical Muslims in America is, particularly at the mosque at which he will be protesting.
Detroit is trying to prevent Jones from protesting at the Mosque itself. Authorities want him to use "free speech zones" which the city has established and which Jones - and I - think are unconstitutional.
I think the residents should take the matter into their own hands as they did in Oklahoma and Kansas.
Boots on The Ground
England is sending 10 military officers to Libya " to support and advise the NTC [opposition National Transitional Council] on how to better protect civilians." Part of this support will be teaching the rebels "how to improve their military organisational structures, communications and logistics".
You want to tell me how we became involved in Vietnam?
You want to tell me how we became involved in Vietnam?
You're Too Close
That's part of the message Oklahoma is sending to the Westboro Baptist Church. The state has just passed a law prohibiting protests within two hours of a funeral and also restricting the protesters to no closer than 1,000 feet.
The other part of the message was given by residents of the state five months ago.
Monday, April 18, 2011
Someone Agrees With Me
Steven Thomma of McClaatchy Newspapers thinks that Barack is morphing into George How many more of us have the same opinion?
Obama will probably cite S&P's questioning of our willingness to control the deficit as another reason he should join the GOP. These are truly sad times. He forgets that S&P and the other rating agencies played a large part in creating the Great Recession.
Obama will probably cite S&P's questioning of our willingness to control the deficit as another reason he should join the GOP. These are truly sad times. He forgets that S&P and the other rating agencies played a large part in creating the Great Recession.
A Biased Abacus
That's what Goldman Sachs sold some of its customers: a CDO called Abacus 2007-AC1. Abacus was touted as a good deal. But customers were not told that it was a good deal for John Paulson, a very, very good customer of Goldman Sachs. In fact, Paulson had selected the securities that made up Abacus 2007-AC1 and he had selected securities that he thought would fall quite far and soon. Goldman neglected to tell its more average customers that they were buying securities picked to fail. Paulson made $1 billion on the deal and the other customers lost about the same.
Surprisingly, the SEC is going after Goldman; they have charged the firm with fraud. How far will the SEC take this case?
Surprisingly, the SEC is going after Goldman; they have charged the firm with fraud. How far will the SEC take this case?
Society At A Glance 2011
The OECD has published its biennial edition of how societies in in constituent countries compare in a variety of areas from cooking through fertility, health and social cohesion. There is a raft of data available. A couple of items that stand out:
- We have the second highest household income but that income is distributed very unevenly.
- Our life expectancy is lower than the OECD average although we spend the most on healthcare.
- We are a generous nation when it comes to volunteering; we lead the OECD.
- We put a lot more people in jail than any other OECD country.
Sunday, April 17, 2011
Saturday, April 16, 2011
Outsourced to the U.S.
And you and I thought that we were doing the outsourcing. Well, Sweden, in the person of Ikea is also outsourcing and they are outsourcing to us because our wages and benefits are less. Ikea has a plant in Danville, Va., which makes bookcases and tables. Employees here start at $8/hour and get 12 vacation days, 8 of which are scheduled by Ikea. The comparable Swedish plant pays $19/hour and provides 5 weeks of vacation. Given these discrepancies the workers are trying to unionize and Ikea is fighting them all the way.
Ikea explains the difference in pay and benefits as follows, "That is related to the standard of living and general conditions in the different countries."
April 20, 2010
Wednesday will be the first anniversary of the Gulf Oil Disaster. Antonia Juhasz has some questions for BP. She tried to raise some of them at BP's annual meeting a few days ago and did not get very far. Interestingly, BP would not admit five people who had proxies to the meeting; it so happened that these five were Glf community leaders who had come to protest BP's actions over the past year.
Juhasz argues that BP and the rest of the oil industry is still not ready to deal with another spill similar to Deep Horizon. She makes a strong case.
Juhasz argues that BP and the rest of the oil industry is still not ready to deal with another spill similar to Deep Horizon. She makes a strong case.
Levin and Coburn Agree
A Senate committee headed by Carl Levin and Tom Coburn has issued its report on the financial crisis. As you can imagine, it's not pretty. They looked at high risk lending in the person of Washington Mutual, regulatory failures as exemplified by the Office of Thrift Supervision (OTS), inflated credit ratings issued by Moody's and S&P, and the schemes of investment banks such as Deutsche Bank and Goldman Sacks.
WaMu, like so many of its ilk, was basically greedy. Some executives argued that the housing market was in "a bubble” with risks that “will come back to haunt us.” Yet, WaMu issued hundreds of billions in mortgages that really should not have been issued.
Who was supposed to be watching WaMu? The Office of Thrift Supervision. Their peons recorded almost 500 serious deficiencies in WaMu's lending practices from 2003 to 2008. When did OTS act? A week after WaMu went belly up.
And then we have probably the major culprit in this fiasco, the credit agencies. As we know, they believed in Lake Woebegone and rated almost everybody as A or better. Again, employees there knew what was going on and warned management, which preferred to get the checks from their customers.
With Goldman it's the old matter of crappy CDOs being sold as solid investments. The investments were so solid that Goldman bet against them.
Oy vey!
WaMu, like so many of its ilk, was basically greedy. Some executives argued that the housing market was in "a bubble” with risks that “will come back to haunt us.” Yet, WaMu issued hundreds of billions in mortgages that really should not have been issued.
Who was supposed to be watching WaMu? The Office of Thrift Supervision. Their peons recorded almost 500 serious deficiencies in WaMu's lending practices from 2003 to 2008. When did OTS act? A week after WaMu went belly up.
And then we have probably the major culprit in this fiasco, the credit agencies. As we know, they believed in Lake Woebegone and rated almost everybody as A or better. Again, employees there knew what was going on and warned management, which preferred to get the checks from their customers.
With Goldman it's the old matter of crappy CDOs being sold as solid investments. The investments were so solid that Goldman bet against them.
Oy vey!
Friday, April 15, 2011
Libya's Pathway to Peace
That's what Obama, Cameron and Sarkozy have charted in a letter that has appeared in major publications around the world. The pathway, as you would expect, begins with Gaddafi losing power. As the leaders write, "Gaddafi must go and go for good." Howsomever, they also write, "Our duty and our mandate under U.N. Security Council Resolution 1973 is to protect civilians, and we are doing that. It is not to remove Gaddafi by force. But it is impossible to imagine a future for Libya with Gaddafi in power."
So, how do you think Gaddafi will go since he will not be removed "by force"? Here is a clue.
So, how do you think Gaddafi will go since he will not be removed "by force"? Here is a clue.
Thursday, April 14, 2011
A Few More Planes, Please
The Secretary General of NATO is asking for a few more planes to attack Libya. No one has answered his request. Is that because France and England feel that they are doing enough and it's time for the other members of NATO to start contributing weapons and people to the war? Apparently, the U.S. is not being asked to contribute more as we have contributed the NATO Supreme Commander.
Who's Paying The Piper?
Hardly anyone who helped create the Great Recession has been charged with anything, not even jaywalking. Contrast this with the aftermath of the Savings & Loan Scandal when 800 bankers spent more than a few nights in jail. Could this be because the government prosecuted 1,000 cases relative to the S&Ls and our 21st century government hasn't prosecuted 50? Bill Black, who was a major force in the S&L prosecutions, comments as to our 21st financial scandal, "There were no criminal referrals from the regulators. No fraud working groups. No national task force. There has been no effective punishment of the elites here.” Basically, our government said, "Tough shit. We will not seek to ferret out and try potential criminals."
Syracuse University keeps track of the cases bank regulators refer to the Justice Department. Their database "indicates that in 1995, bank regulators referred 1,837 cases to the Justice Department. In 2006, that number had fallen to 75. In the four subsequent years, a period encompassing the worst of the crisis, an average of only 72 a year have been referred for criminal prosecution."
For more items to make your blood boil, read this article by Gretchen Morgenson and Louise Story.
Syracuse University keeps track of the cases bank regulators refer to the Justice Department. Their database "indicates that in 1995, bank regulators referred 1,837 cases to the Justice Department. In 2006, that number had fallen to 75. In the four subsequent years, a period encompassing the worst of the crisis, an average of only 72 a year have been referred for criminal prosecution."
For more items to make your blood boil, read this article by Gretchen Morgenson and Louise Story.
A Primer on Taxes
Expect the volume to increase substantially as our leaders 'debate' our financial future. The volume with regard to taxes will be especially loud. It would be nice if our leaders read this article by David Cay Johnston, but we know they won't read anything which may cause them to have second thoughts about their statements and actions. Hopefully, you will read the article after you read my summary.
1. Poor Americans do pay taxes. It is true that many of the truly impoverished do not pay federal income taxes. However, they do pay federal payroll taxes, gas taxes, sales taxes, utility taxes and other taxes.
2. The wealthiest Americans don’t carry the burden. Again, income taxes are not the only federal tax. Payroll taxes (social security, Medicare, unemployment) stop at $106,800 in income, which means that those earning more than that pay a smaller share of their income in payroll taxes.
3. The wealthy are paying less taxes. In 2007 the wealthiest 400 taxpayers paid 16.6% of their income in federal incomes taxes, the average Joe 22.5%
4. Many of the very richest pay no current income taxes at all. Many hedge fund managers can defer their taxes for years.
5. And (surprise!) since Reagan, only the wealthy have gained significant income. Since 1980, the average income of average Joe has increased 1%. Those at the top of the income pyramid have seen their income double in that time.
6. When it comes to corporations, the story is much the same: less taxes, 15.2% in 2000, 12.6% in 2008.
7. Other countries do it better. We need "a tax system that benefits the vast majority, reduces risks, provides universal health care and focuses on diplomacy rather than militarism abroad (and at home)".
1. Poor Americans do pay taxes. It is true that many of the truly impoverished do not pay federal income taxes. However, they do pay federal payroll taxes, gas taxes, sales taxes, utility taxes and other taxes.
2. The wealthiest Americans don’t carry the burden. Again, income taxes are not the only federal tax. Payroll taxes (social security, Medicare, unemployment) stop at $106,800 in income, which means that those earning more than that pay a smaller share of their income in payroll taxes.
3. The wealthy are paying less taxes. In 2007 the wealthiest 400 taxpayers paid 16.6% of their income in federal incomes taxes, the average Joe 22.5%
4. Many of the very richest pay no current income taxes at all. Many hedge fund managers can defer their taxes for years.
5. And (surprise!) since Reagan, only the wealthy have gained significant income. Since 1980, the average income of average Joe has increased 1%. Those at the top of the income pyramid have seen their income double in that time.
6. When it comes to corporations, the story is much the same: less taxes, 15.2% in 2000, 12.6% in 2008.
7. Other countries do it better. We need "a tax system that benefits the vast majority, reduces risks, provides universal health care and focuses on diplomacy rather than militarism abroad (and at home)".
Obama's WMDs?
We were told that we went into Libya to prevent a bloodbath in Benghazi. Slowly, we're hearing more and more that Gadafi's forces are not conducting a bloodbath. True, they have violated international law and innocent people have suffered. But what has happened in Libya to date is very far from what happened in Rwanda, Darfur and Bosnia. Gadaffi has not engaged in wholesale slaughter of the civilians in the towns he has recaptured.
More and more we are seeing a repeat of Bush2.
More and more we are seeing a repeat of Bush2.
Tuesday, April 12, 2011
How to Lose a Negotiation
The Wall Street Journal reports that Obama is "open to deal on debt cap". In January Goulsbee was saying that Republicans were "playing chicken with the debt ceiling and playing games potentially with the full faith and credit of the United States." Obama's press secretary this past week said "To hold hostage a vote…in return for an exchange for some proposal that one party wants is not the way to treat this issue. It's too dangerous to do it that way." Presumably, these guys are speaking for our President. Now that the debt ceiling is on center stage Obama is already conceding. What is wrong with the guy?
Monday, April 11, 2011
Get Serious
The Congressional Progressives Caucus has introduced "The People's Budget".This three-page document proposes a balanced budget through revenue increases primarily; spending is cut only for defense. I wonder how much time they spent on this kids document. These are people we elected to help lead us? I'd be embarrassed if I were a member of this caucus. At least Ryan went to some trouble to present his 'plan'.
I never thought I'd be saying this
We lived through and survived the Bush2 years but our nation suffered under what was, until then, the worst presidency in my lifetime, which dates back to pre-World-War-II. I'm beginning to wonder whether Mr.Obama may take the title away from W.
One admirable trait that W had was his willingness to stand up and be counted, to say what he thought and to fight for what he wanted. I disagreed with most of what he wanted but at least W didn't continue Clinton policies he had inveighed against in his 2000 campaign. He didn't go into a negotiation already ceding a good part of his policies. He didn't sound like a member of the opposing party. He didn't appoint a raft of people who believed in Democratic ideas to his team. I can't say the same things about Mr. Obama. I don't see him getting better. My fundamental question - what does he believe in. Is there anything he would really fight for other than reelection?
Obama may be the last president I live under. I was born when we had a president, FDR, who cared about the world and fought for his beliefs. I'd like to see one of these presidents again before I shuffle off. Clearly, Obama is not such a president.
I have often said that the smartest person in the room does not necessarily make the best leader. Obama proves my point.
What we need is leadership by people who really care about this country. We don't have it now and have not had it for several years. This brouhaha about the deficit and government spending epitomizes our current state. How you can evaluate government spending without considering the benefits of that spending is beyond my ken. Ditto about revenue when crafting a budget. And why don't our leaders read the GSA reports on the waste and mismanagement in the government? Yes, we have financial - and many other - problems. But our leaders are not on a road to solve problems. They are on the road to win elections so that they can continue to live very well and soothe their egos. Is this the kind of leadership we want? I'm glad I'm old and will not be here in the final days of the American empire.
One admirable trait that W had was his willingness to stand up and be counted, to say what he thought and to fight for what he wanted. I disagreed with most of what he wanted but at least W didn't continue Clinton policies he had inveighed against in his 2000 campaign. He didn't go into a negotiation already ceding a good part of his policies. He didn't sound like a member of the opposing party. He didn't appoint a raft of people who believed in Democratic ideas to his team. I can't say the same things about Mr. Obama. I don't see him getting better. My fundamental question - what does he believe in. Is there anything he would really fight for other than reelection?
Obama may be the last president I live under. I was born when we had a president, FDR, who cared about the world and fought for his beliefs. I'd like to see one of these presidents again before I shuffle off. Clearly, Obama is not such a president.
I have often said that the smartest person in the room does not necessarily make the best leader. Obama proves my point.
What we need is leadership by people who really care about this country. We don't have it now and have not had it for several years. This brouhaha about the deficit and government spending epitomizes our current state. How you can evaluate government spending without considering the benefits of that spending is beyond my ken. Ditto about revenue when crafting a budget. And why don't our leaders read the GSA reports on the waste and mismanagement in the government? Yes, we have financial - and many other - problems. But our leaders are not on a road to solve problems. They are on the road to win elections so that they can continue to live very well and soothe their egos. Is this the kind of leadership we want? I'm glad I'm old and will not be here in the final days of the American empire.
Sunday, April 10, 2011
NCAA Rules Are Strange
Money has always been the raison d'etre of the NCAA. Do you disagree? But, since, the NCAA is supposedly run by colleges could one not argue that money is the raison d'etre of many American colleges? By money I mean the salaries the 'leaders' of these organizations take home. A few years ago Suffolk University was in the news when it was revealed that its president was being paid almost $3,000,000 a year. Have you heard of Suffolk? Somehow the president of this little-known university made more than the president of any of the Ivy schools.
But, let's stick with the sports aspect for awhile. Basketball is really big in my new home state of Connecticut. Both the men's and women's teams of UConn have done very well over the past few years. But should this mean that the men's basketball coach is the highest paid state employee; his salary of $2,300,000 is many times that of the governor.
However, not only does the coach do well financially, he gets to elect when to serve whatever punishments the NCAA may give him for violating NCAA rules re recruiting players. Recently the NCAA ruled that he was suspended for three games. Well, the team was involved in March Madness so the coach will serve his suspension next season.
Contrast this with the suspension of a player, Perry Jones of Baylor. He had to serve his suspension immediately. And what was he guilty of? His mother borrowed rent money from Jones' AAU coach. She paid it back quickly. Yet obtaining the rent money violated the rules. Jones had to be punished.
But the NCAA rules don't seem very firm. The Auburn quarterback was not suspended although his father tried to auction him off to the highest bidder.
Strange.
But, let's stick with the sports aspect for awhile. Basketball is really big in my new home state of Connecticut. Both the men's and women's teams of UConn have done very well over the past few years. But should this mean that the men's basketball coach is the highest paid state employee; his salary of $2,300,000 is many times that of the governor.
However, not only does the coach do well financially, he gets to elect when to serve whatever punishments the NCAA may give him for violating NCAA rules re recruiting players. Recently the NCAA ruled that he was suspended for three games. Well, the team was involved in March Madness so the coach will serve his suspension next season.
Contrast this with the suspension of a player, Perry Jones of Baylor. He had to serve his suspension immediately. And what was he guilty of? His mother borrowed rent money from Jones' AAU coach. She paid it back quickly. Yet obtaining the rent money violated the rules. Jones had to be punished.
But the NCAA rules don't seem very firm. The Auburn quarterback was not suspended although his father tried to auction him off to the highest bidder.
Strange.
Friday, April 08, 2011
Sickening
The following chart was developed by the Center on Budget and Policy Priorities. How things have changed in 30 years.
Thursday, April 07, 2011
Making Homes Affordable
Today is GAO day. Here's a little summary of how well the Treasury has been implementing the Making Homes Affordable Progam
| Program | Date announced | Implementation date | Funding allocation | Reported activity as of 12/31/2010 |
|---|---|---|---|---|
| Second-lien Modification | March 2009 | March 2010 | Nearly $133 million | $2.9 million in incentives paid |
| Home Affordable Foreclosure Alternatives | March 2009 | April 5, 2010 | $4.1 billion | $9.5 million in incentives paid |
| Principal Reduction Alternative | March 2010 | October 1, 2010 | $2.0 billion | Activity not yet reported |
A Little Duplication Can Be A Good Thing
But the federal government has taken it to extremes. In March the GAO published a lengthy report detailing some of the duplication we are paying for. Now they have provided summary information of the duplicated functions. Here they are:
- 80 economic development programs
- 100 surface transportation programs
- 17 different Department of Homeland Security grant programs FEMA manages and provides funding information for these programs
- 18 domestic food nutrition and assistance programs
- 20 federal programs across seven different departments that provide shelter or housing assistance.
- 80 programs across eight different departments that GAO identified as providing transportation services to transportation-disadvantaged persons
- 47 federal employment and training programs GAO identified—44 overlap with at least one other program in that they provide at least one similar service to a similar population.
- 82 federal programs supporting teacher quality improvement.
- 56 federal financial literacy programs identified by federal agencies.
If our leaders were serious about budget-cutting, they might look at this list.
Wednesday, April 06, 2011
Gaming the System
Candie's, Inc. sells clothes to teenage girls. Judging from this home page, sex seems to be part of the sales technique. This company history makes it evident that sex is their primary marketing approach. However, the company has established a non-profit foundation whose mission is to "educate America's youth about the devastating consequences of teen pregnancy through celebrity PSA campaigns and initiatives."
One of the celebrities is Bristol Palin. She was paid $262,5000 in 2009 to participate in the 'celebrity PSA campaigns and initiatives'. In the same year the foundation donated a total of $35,000 to organizations working in the area. Do you detect a slight imbalance here?
One of the celebrities is Bristol Palin. She was paid $262,5000 in 2009 to participate in the 'celebrity PSA campaigns and initiatives'. In the same year the foundation donated a total of $35,000 to organizations working in the area. Do you detect a slight imbalance here?
Tuesday, April 05, 2011
Defining Safety
For the executives of Transocean Ltd. it is meeting or exceeding "targets concerning the frequency and severity of its accidents". And, since they did this in 2010, certain of the company's executives got a small bonus; the CEO got $374,062.
How would you define safety if one accident in which your company was involved resulted in 11 people being killed and 200,000,000 gallons of oil being dumped in the ocean? That was the experience of Transocean, the owner of the Deep Horizon oil rig that was in the news a year ago.
How would you define safety if one accident in which your company was involved resulted in 11 people being killed and 200,000,000 gallons of oil being dumped in the ocean? That was the experience of Transocean, the owner of the Deep Horizon oil rig that was in the news a year ago.
Are we addicted to war?
You really have to wonder. It certainly seems that way in this 21st century - three wars in eleven years. Since 1900 we have been in almost a dozen wars, both here and abroad. That's about one war every ten years. Why are we so bellicose and seemingly growing more so? Stephen Walt presents what he thinks are the major reasons for our addiction:
1. Because We Can.
2. The U.S. Has No Serious Enemies.
3. The All-Volunteer Force.
4. It's the Establishment, Stupid.
5. Congress Has Checked Out.
I wish that there were a possibility of intervention as there is with our personal addictions. But it's looking less and less likely. Obama seemed like he was going to do something about the addiction, but he's sucking on the drug himself.
Monday, April 04, 2011
What's Going On In Maine?
Directing that a mural depicting labor history in Maine be removed, the newly elected governor, Paul LePage, said, “I’m trying to send a message to everyone in the state that the state of Maine looks at employees and employers equally, neutrally and on balance.” Well, that's going to cost Maine $37,800, the amount of a federal grant it received to buy the mural. The grant agreement with the Feds requires the state to display the mural or return the money.
Item 2 - the governor has ordered that the names of conference rooms at the Department of Labor be changed. The Cesar Chavez and Frances Perkins rooms apparently were too pro-labor for the governor.
Item 3 - The legislature apparently feels that business is paying too much for labor. So, they are trying to change the laws so that employers can hire kids to work an unlimited number of hours and be paid quite a bit less than adults.
Cutting the Workforce
I think that many of us believe that most government workers don't work very hard. We have all met such workers. The Deficit Commission seems to be on the same wavelength and has proposed cutting the federal staff by 10% and also freezing their salaries, which is something Mr. Obama is pushing. However, we have met these 'slow' workers in private industry as well. Yet we do not kibitz about how wasteful the activities of these people are.
Cutting the federal workforce may not be such a good thing. Clearly, those who really don't want to be in the government should not be, just as those who don't really want to be with Company X should not be.
I have written fairly often of the growth in private contractors for the military. These contractors have taken over many of the jobs soldiers used to do. So, the military claims that it is getting the job done with fewer soldiers. Other government agencies can claim that they have fewer staff but they can't easily claim that they are getting the job done. John Gravois lists some of these agencies and documents what the low staffing regimen has meant to the country; it hasn't meant good times.
One of the issues Gravois raises is the need for federal agencies to comply with the law. The law says doctors should be paid for their Medicare patients within thirty days, Social Security recipients should receive their monthly check on time. Soldiers in our three wars need to have adequate supplies delivered on time. If we cut the staff, we will not be able to meet the mandates laid out in our laws. And, in fact, we are having a fair degree of trouble meeting these mandates; hence, the rise of the private contractor in other federal agencies.
By cutting staff or freezing salaries we have wound up paying a big price. The Defense Department's procurement activities are a constant complaint of the GSA; systems are late and quite a bit over budget. The Special Inspector Generals for Iraq and Afghanistan have reported on the lack of management of private contractors in those war zones. The FBI can't build a modern computer system. The Coast Guard has no one to monitor the activities of their contractors. The Minerals Management Service could do nothing about the BP oil spill because it was understaffed in both the number and quality of staff. The SEC let companies run wild.
We need good people working for us. Arbitrarily cutting the federal workforce is not a smart thing to do.
Cutting the federal workforce may not be such a good thing. Clearly, those who really don't want to be in the government should not be, just as those who don't really want to be with Company X should not be.
I have written fairly often of the growth in private contractors for the military. These contractors have taken over many of the jobs soldiers used to do. So, the military claims that it is getting the job done with fewer soldiers. Other government agencies can claim that they have fewer staff but they can't easily claim that they are getting the job done. John Gravois lists some of these agencies and documents what the low staffing regimen has meant to the country; it hasn't meant good times.
One of the issues Gravois raises is the need for federal agencies to comply with the law. The law says doctors should be paid for their Medicare patients within thirty days, Social Security recipients should receive their monthly check on time. Soldiers in our three wars need to have adequate supplies delivered on time. If we cut the staff, we will not be able to meet the mandates laid out in our laws. And, in fact, we are having a fair degree of trouble meeting these mandates; hence, the rise of the private contractor in other federal agencies.
By cutting staff or freezing salaries we have wound up paying a big price. The Defense Department's procurement activities are a constant complaint of the GSA; systems are late and quite a bit over budget. The Special Inspector Generals for Iraq and Afghanistan have reported on the lack of management of private contractors in those war zones. The FBI can't build a modern computer system. The Coast Guard has no one to monitor the activities of their contractors. The Minerals Management Service could do nothing about the BP oil spill because it was understaffed in both the number and quality of staff. The SEC let companies run wild.
We need good people working for us. Arbitrarily cutting the federal workforce is not a smart thing to do.
Sunday, April 03, 2011
Petraeus Doesn't Think Highly of Burning the Koran
He calls the action "hateful, extremely disrespectful and enormously intolerant." Thus far, it's resulted in three days of violent protest in Afghanistan. Clearly, much of this is sparked by the Taliban, who are simply taking advantage of the stupidity and arrogance of Jones and Sapp. And, it also appears that Mr. Karzai is using the incident for his own purposes; he was the one who informed his countrymen of the burning.
Friday, April 01, 2011
Wayne Sapp and Terry Jones: Guilty of Murder?
Eight UN workers were killed today by Afghans who were protesting the burning of the Koran by Messrs. Sapp and Jones. I'm not saying the Afghans were innocents, but clearly Sapp and Jones had been warned about the negative effect their actions denigrating the Koran could have.
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