I have moved this site to a new server. Please use the email link at the top of the page to tell me of any broken links, missing pictures, or anything else whifty. Please include a link to the specific post or page in your email so I can fix it quickly.

Paul Myners in the Guardian:

Saving the world’s financial system was unquestionably the right thing to do. But in the process of saving it, we protected those very market fundamentalists whose actions caused the crisis.

The risk is now that their confidence has not been sufficiently dented; that they have not truly learned their lesson. And the danger with this moral hazard is that they could put us all at risk again.

This is why a central part of restoring true market discipline to the world financial system must be major reform globally to the way banks and financial firms are governed and regulated.

Meanwhile . . .

German Chancellor Angela Merkel and Luxembourg Prime Minister Jean-Claude Juncker called for urgent regulation of credit-default swaps to shore up the euro area and prevent a rerun of the Greek financial crisis.

The “financial industry” has demonstrated that it is incapable of learning from experience and that, in a conflict between greed and responsibility, greed wins.

Check the history of the US in the 1800s. There was a recession depression panic almost exactly every 20 years.

The only period in US history without regular recessions depressions panics was the period during which Glass-Steagel was in effect. Sure there were ups and downs, but those were hills and dales, not mountains and canyons.

Banksters gotta be watched. Carefully. Even in their little bankster hideouts.

My father loved Fred Allen’s humor.

Now I can listen to it also.

Too much is not enough.

In Germany, a bank goes under and gets taken over by another bank. The new bank decides not the reward employees of the failed bank for their failure with bonuses.

Now bankers from the failed bank are suing for their bonuses.

Commerzbank faces lawsuits filed by more than a hundred bankers over unpaid compensation following its January 2009 takeover of Dresdner. The bank, Germany’s second-largest, said last month it isn’t paying investment bankers bonuses for 2009 after a net loss of 4.5 billion euros.

Dresdner “was entitled to take the actions it did in relation to Dresdner Kleinwort employees’ discretionary bonuses in light of the market deterioration in the investment bank’s performance,” according to a spokesman at Commerzbank, who declined to be identified citing company policy. “The bank will be defending any claims vigorously in the courts.”

You can’t make this stuff up.

Country club memberships (emphasis added):

(President) Obama citied recent massive rate hikes by major insurers, and the advice of investment consultants at Goldman Sachs that customers should buy stock in health insurers because it’s easy money – no competition and no price restraints.

“You see, these insurance companies have made a calculation,” Obama said in prepared remarks released by the White House. “They’re OK with people being priced out of health insurance because they’ll still make more by raising premiums on the customers they have. And they will keep doing this for as long as they can get away with it.”

A veteran UPS driver, with a 25-year safety record, reflects:

From his elevated perch, McAllister . . . is appalled by what he sees – people driving while chatting on cell phones, texting, eating, applying makeup, fiddling with radios or CD players, typing on laptops propped against the steering wheel.

“Distractions are the big culprit,” McAllister says, “and it’s definitely gotten worse.”

He is constantly amazed by “the blatant violations of traffic laws as well as the laws of physics and common sense.”

It’s the electronic age. They used to prop books and memos on the steering wheel. Now it’s laptops.

Furrfu.

Commence Operation Scapegoat (emphasis added):

Newly released documents show Blackwater workers and their supervisors in Afghanistan running amok – drinking heavily, using weapons without permission and ignoring Army protocol, all adding to an environment that may have contributed to the killings of unarmed civilians.

After two workers, including a Virginia Beach man, shot and killed two Afghan civilians last year, the Moyock, N.C.-based Blackwater was thrown off its $25 million subcontract, but not without a fight, the documents reveal.

The supervisor of the two men was specifically identified in e-mails and letters as fostering such an environment. And even after the killings last May, Blackwater – which now calls itself Xe Services – tried to keep him on the job and distance itself from the shootings.

The functions in question should have been performed by United States employees beholden and subject to the United States, not by mercenaries.

The outsourcing of military functions is bogus. It makes the official military budget look a little smaller (or more accurately not as big), while funneling money into private hands not beholden to the United States except on payday to perform the same functions with less efficiency, less effectiveness, undoubtedly less discipline, but at much greater expense.

It’s the hand-in-the-pocket thingee again.

A degree does not an education equal.

See the Booman.

February sunset:

clouds

(more…)

Because all politics is economics. Anything else is a red herring.

The magician prattles on about magic powers and beautiful assistants so you don’t watch his hands in his pockets.

The Republicans prattle on about family values for the same reason. The difference is that their hands are in the country’s pockets.

That is, an unwholesome fixation on one thing, like ladies’ shoes.

Joseph Stiglitz on “deficit cut fetishism”:

Most economists also agree that it is a mistake to look at only one side of a balance sheet (whether for the public or private sector). One has to look not only at what a country or firm owes, but also at its assets. This should help answer those financial sector hawks who are raising alarms about government spending. After all, even deficit hawks acknowledge that we should be focusing not on today’s deficit, but on the long-term national debt. Spending, especially on investments in education, technology, and infrastructure, can actually lead to lower long-term deficits. Banks’ short-sightedness helped create the crisis; we cannot let government short-sightedness – prodded by the financial sector – prolong it.

Read the whole thing, particularly the paragraph towards the end in which he points out

America’s financial industry polluted the world with toxic mortgages, and, in line with the well established “polluter pays” principle, taxes should be imposed on it.

America’s financial industry has shown that it subtracts, rather than adding value and that incompetence is not its own reward; rather, incompetence deserves ginormous bonuses. And country club memberships.

Its advice should be discounted.

One of the myths treasured by the rightwing is that private industry always does a better job than government “bureaucrats.”*

It just ain’t so, but it does funnel a lot of government money in private hands:

Consider the bomb-sniffing dogs: The Navy contracted out their training. The dogs failed the tests after training (they couldn’t sniff bombs); after thinking about it a while, the Navy decided to buy the dogs and train them itself:

The task probably seemed innocuous enough when a small team of U.S. Navy personnel accepted it last fall. They would trek out to a private security contractor in Chicago to pick up 49 dogs, then transport them to a nearby military base.

But what they found when they arrived was shocking, according to internal Navy e-mails: dirty, weak animals so thin that their ribs and hip bones jutted out.

(snip)

In fact, the Navy said later, at least two of the dogs did not survive. Several others were deemed too sick to ever be of use. Nearly a year after they were supposed to have begun working, the remaining K-9s still are not patrolling Navy installations as intended.

The contractor says the Navy owes it $6,000,000.00.

I hope the guv’mint protected itself by including in the contract a performance bond.

_______________

*As if large private companies somehow do not qualify as “bureaucracies”; case in point: try calling Verizon for a telephone repair and see how long it takes to reach a real live human being.

It took me an hour and six phone calls–Verizon dropped two of them and three others ended up in Menu Hell. Once I got to them, the real live human beings were polite, knowledgeable, and efficient (afterthought: probably because they were hungry for human interaction), but Verizon’s 800-number horror show is one of the reasons I would not contract with Verizon for anything other than basic land line service.

See it all here:

Via Unqualified Offerings.

Like flies:

Four more banks gone, nada, kaput.

Details on how mastery of the universe at the link.

Odds bodkins!

2 B R No B=?

Via TPM.

For two years, in between carpools, I transferred between the bus and the subway at the Pentagon subway station in Arlington, Va., where yesterday some yahoo with a gun cut loose.

Just to be clear, I am against prohibiting firearms. I like shooting and I’m pretty good when I’m in practice. Guns are neither inherently good nor bad. At the same time . . . .

(more…)

Honest to Pete, someone has a real problem, and it’s not the family that sculpted the snowwoman.

Words fail me, because this is too stupid for words.

Special orders don’t upset us.

Cramming is back:

Increasingly complex bills for cell phones and conventional phones have made it more tempting to try to slip in charges that customers might not notice.

This week, the FTC filed charges against two San Francisco brothers, accusing them of fraudulently billing people for services supposedly provided by numerous companies with names such as GoFaxer.com, Global YP and Inc21. A federal judge issued an injunction halting operations by the businesses while the men await trial.

Crammers use a wide variety of ways to stick consumers with charges they never approved.

More of that fee hand of the market that righties are so fond of talking about.

She divorced her husband of over 40 years because he had Alzheimer’s.

It was the only way, after running through all the family’s savings, to make care affordable for him.

Heath care reform is a matter of morality, not a matter of country club memberships for executives.

Our present system is immoral and forces good people to do immoral things to stay alive.

Meanwhile, back in Massachusetts, Roberta still wrestles with her agonizing decision to divorce her husband so he could qualify for Medicaid. “Married couples risk losing nearly everything when one spouse needs long-term care,” explains Hyman Darling, Roberta’s attorney, “and it shouldn’t be that way.”

Roberta has found some peace in the realization that “marriage means more than a piece of paper.” Her love and devotion to Alex have not diminished; she visits him every day in the nursing home, giving him the latest news about their children and sometimes bringing flowers. Totally incapacitated now, both physically and mentally, Alex will never improve or return home. But Roberta is grateful for the time they do have, as well as the peace of mind that comes with knowing her own future is secure. “I’m grateful I still have my home and enough savings so I won’t be dependent on my children,” she says. “But the real question is, why should health care have to end up in the divorce courts? What kind of a system is that?”

(Poor taste alert)

(more…)

Souls are lined up to enter Heaven. As each one enters, St. Peter gives the soul a harp.

On the other side of things, other souls are lined up to enter Hell. Each one receives an accordion . . . .

(more…)

From the Guardian:

“Already there are signs of … violence emanating from the radical right. Since the installation of Barack Obama, rightwing extremists have murdered six law enforcement officers. Racist skinheads and others have been arrested in alleged plots to assassinate the nation’s first black president. One man from Brockton, Massachusetts – who told police he had learned on white supremacist websites that a genocide was under way against whites – is charged with murdering two black people and planning to kill as many Jews as possible on the day after Obama’s inauguration. Most recently, a rash of individuals with anti-government, survivalist or racist views have been arrested in a series of bomb cases.”

And the Republican Party is quietly encouraging this stuff while acting all proper in public with it’s “socialism” rhetoric.

Read the whole thing.

A little better:

Initial claims for state unemployment benefits dropped 29,000 to a seasonally adjusted 469,000 in the week ended February 27, down from an upwardly revised 498,000 the prior week, the Labor Department said. * Analysts polled by Reuters had expected claims to drop to 470,000 from a previously reported 496,000 the prior week. * Initial claims data in recent weeks has been distorted by bad weather, making it difficult to gauge the labor market trend. * The four-week moving average of new claims, which irons out week-to-week volatility, fell 3,500 to 470,750, the Labor Department said. * The number of people still receiving benefits after an initial week of aid dropped 134,000 to 4.5 million in the week ended February 20, the lowest since early January 2009. * The insured unemployment rate, which measures the percentage of the insured labor force that is jobless, slipped to 3.5 percent in the week ended February 20 from 3.6 percent.

Analysis and commentary at the link.

Medical tort reform:

The health-care debate has been marred by the distortions, demagoguery, and outright lies that are typical of modern American political discourse. For example, lacking any substantive ideas of their own, reform opponents have seized on tort reform – taking away the rights of injured patients – as their solution to America’s health-care problems, despite ample evidence that it’s no solution at all.

Let’s call this tort-reform fixation what it is: a sign that many Republicans are bereft of ideas and obsessed with an issue that will do nothing to lower care costs or cover the uninsured. Medical malpractice is a political crutch that opponents of the health-care bills lean on time and time again to justify their efforts to derail reform.

The author of the column is a trial lawyer. Nevertheless, that does not keep him from being right. There may need to be some reform medical malpractice law in the interest of justice and good medical practice, but the effects of malpractice insurance, suits, and settlements on costs are minimal:

“It’s really just a distraction,” said Tom Baker, a professor at the University of Pennsylvania Law School and author of “The Medical Malpractice Myth.” “If you were to eliminate medical malpractice liability, even forgetting the negative consequences that would have for safety, accountability, and responsiveness, maybe we’d be talking about 1.5 percent of health care costs. So we’re not talking about real money. It’s small relative to the out-of-control cost of health care.”

Auth

Next Page »