Blog on the Run: Reloaded

Tuesday, January 26, 2010 12:17 am

Odds and ends for 1/25

Enron may be dead, but its ghost continues to mess with us: “White House and Congressional Democratic leaders say they now believe that they have the 60 votes needed to block a filibuster of Mr. Bernanke’s reappointment.” … “… strategy on the Bernanke confirmation was being led by former Enron lobbyist Linda Robertson, who is viewed as an effective advocate for the banking chief on Capitol Hill.” But don’t worry — the president’s going on TV Wednesday night to assure us he feels our pain.

Heckuva job, Bernanke: The Fed is required by law  (12 U.S.C. § 225a) to manage monetary policy so as to create jobs for as many people as possible. True story. It also is required to report semiannually on what steps it has taken to comply with this and other requirements. What did its most recent report say about creating jobs? Not bloody much. So explain to me again why this guy should get another four years in the job.

You can pay me now or pay me (a lot more) later: Cutting early-childhood programs hurts jobs now, costs society more later, research shows. My experience covering politics leads me to believe that the kind of people who oppose this sort of spending are not, in general, the type who tend to be convinced by science/research, but, what the hell, I’ll post it anyway.

Yo, Pat, it wasn’t the devil who cursed Haiti. It was Thomas Jefferson. (h/t: Jill)

How could we help Haiti long-term? Cancel its debt, for one thing.

If anything more progressive than the Senate health-care bill is politically dangerous for Democrats, then why is the guy charged with getting Democrats elected to Congress telling Obama and the Senate to shove it?: Maybe because he has seen this polling. Retiring Rep. Marion Berry, D-Ark., on the other hand, clearly has not.

Memo to HuffPo: Your games are no fun when you let the irony-impaired play. (h/t: Beau)

Holy crap: December existing-home sales, expected to be down 10% (or, per Goldman, 15% at worst), were in fact down 16.7% from November, the biggest one-month decline in history.

Speaking of real estate, the biggest real-estate transaction in history has gone into default. Corollary: Apparently it’s OK for real-estate giant Tishman Speyer to walk away from its debts, but don’t try this with your underwater home, kids.

Prisoner’s dilemma, in that everyone who doesn’t work for Goldman Sachs is kind of a prisoner of everyone who does: Goldman Sachs’s chief bull, Jim O’Neill, has gotten somewhat ursine. So does that mean that they know the economy’s going to get worse because they’re running it, or does it mean they want us to think they think it’s getting worse so that they can bet on improvements, engineer those improvements, and win? Decisions, decisions.

Priorities in a post-peak-oil reality, from James Kunstler: “The money that went into propping up the automobile companies could have been used to rebuild the entire railroad system between Boston and the Great Lakes, and the capital squandered on AIG and its offshoot claimants could have rebuilt everything else the rest of the way to Seattle. Is it really so hard to imagine what history requires of you?”

Classifying information to cover up a crime is, itself, a crime. So it makes me very curious to know not only what about the New York Fed’s plans to bail out AIG was kept secret from the SEC on “national-security” grounds, but also why that was done.

Health-care reform: a pictorial timeline (w/generous dollops of snark).

Shorter Michael Barone: How DARE we let the people who actually know what they’re doing decide things? Bonus Stoopid: He talks about knowing how to “manipulate words” like it’s a BAD thing.

We are a polarized nation, and because that’s the case, anyone hoping to prevail in an off-year election probably needs to forget about trying to appeal to the “broad middle” because there ain’t one.

Question for Sen. Bill Nelson: What, exactly, does “the left” control? Because it sure ain’t the White House, Congress or the Supreme Court.

Memo to Andrew Breitbart: Insisting that your questions are serious is no substitute for asking serious questions.

Memo to Harold Ford: Hell, no, we’re not going to cut taxes for you and your rich friends. In fact, jackhole, you’re lucky this country does not tax Stoopid. Hey, do me a favor, dude: PLEASE run for Senate from New York with that platform. I could do with a laugh.

The stimulus saved 1.2 million jobs, but the government needs to do even more, according to a USA Today survey of 50 economists.

They say hope is not a plan, but apparently, for the Obama administration (shorter WaPo), hope was a plan. Oy.

Which is more of a plan than Congressional Democrats have on finance reform.

If you’re going to believe Hitler was a leftist, then you also have to believe … Oh, the places you’ll go!

How to steal a trillion (and a half): John Hussman explains how it’s done.

Pity the rich and their oh, so difficult lives.

Prince Charles is part switchblade. Almost literally.

Tuesday, April 7, 2009 9:18 pm

“Becoming a banana republic”

Filed under: We're so screwed — Lex @ 9:18 pm
Tags: ,

Simon Johnson, a former chief economist of the International Monetary Fund, says that where oligarchy is concerned, there’s no such thing as American exceptionalism:

In its depth and suddenness, the U.S. economic and financial crisis is shockingly reminiscent of moments we have recently seen in emerging markets (and only in emerging markets): South Korea (1997), Malaysia (1998), Russia and Argentina (time and again). In each of those cases, global investors, afraid that the country or its financial sector wouldn’t be able to pay off mountainous debt, suddenly stopped lending. And in each case, that fear became self-fulfilling, as banks that couldn’t roll over their debt did, in fact, become unable to pay. This is precisely what drove Lehman Brothers into bankruptcy on September 15, causing all sources of funding to the U.S. financial sector to dry up overnight. Just as in emerging-market crises, the weakness in the banking system has quickly rippled out into the rest of the economy, causing a severe economic contraction and hardship for millions of people.

But there’s a deeper and more disturbing similarity: elite business interests—financiers, in the case of the U.S.—played a central role in creating the crisis, making ever-larger gambles, with the implicit backing of the government, until the inevitable collapse. More alarming, they are now using their influence to prevent precisely the sorts of reforms that are needed, and fast, to pull the economy out of its nosedive. The government seems helpless, or unwilling, to act against them.

The former chief economist of the International Monetary Fund may seem an unlikely person to be suggesting that the U.S. financial system be overhauled and its influence weakened … but then he has seen that work in other countries, so who knows?

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