Saturday, February 28, 2009
Tales of Big Shitpile
This article does a good job of explaining what AIG and its enablers were up to.
Fight The Power
I've long thought the general libertarian preference for state/local versus federal power to be somewhat weird. It isn't that there aren't some good arguments for local control, it's that those arguments aren't especially libertarian unless you see Tiebout-style local government as sort of indistinguishable from the magical free market in action.
I'd cheer on my libertarian pals if they focused more attention on the abuses and bad policies of state and local governments, which really do impact the "economic freedom" they obsess about far more than does the federal minimum wage law.
I'd cheer on my libertarian pals if they focused more attention on the abuses and bad policies of state and local governments, which really do impact the "economic freedom" they obsess about far more than does the federal minimum wage law.
Stupid, Ugly, Disliked
Gosh, CPAC seems so cutting edge and fun, it's so hard to see why the kids don't want to be Republicans anymore.
The Mall Is Flat
Stories like this everywhere.
- Lawsuits and debt continue to pile up against General Growth Properties Inc., the developer of the unfinished mall whose promise and money gave Elk Grove a push from bedroom community to incorporation in 2000. As recently as two years ago, General Growth appeared ready to deliver on its promise. Confident City Council members debated whether stores such as Target and JCPenney would be good enough for the upscale mall they envisioned.
Shambles
Sadly I think that Buffett is correct. It's also important to remember that Geithner is putting his trust in the Banksters, the people who created the problem and who were in denial about it for so long. Crazy people on blogs like me have, for some time, been pointing out that the real problem is that they lost a lot of fucking money as the Banksters were pretending that this was just some temporary liquidity thing which could be fixed by the government giving them trillions in free money.
If our elites had acted over a year ago the economy might not be in such a mess. But, hey, nobody could have predicted...
If our elites had acted over a year ago the economy might not be in such a mess. But, hey, nobody could have predicted...
Water
It seems like US regions regularly get very close to having a major water emergency but then luckily manage to avoid it. Curious what will happen when it actually happens.
Too Late
One of the bits of wrong conventional wisdom going into 2008 was that at some point the Republican presidential candidate and conservatives generally would break up with Bush somehow. I never believed this because for 8 years the entire identity of the conservative movement was George Bush. There was no way to do it.
I'm not sure why they're bothering to try now.
I'm not sure why they're bothering to try now.
EATED
Security Savings Bank, Henderson, NV and Heritage Community Bank, Glenwood, IL get EATED by the FDIC.
Crap I Read
Mac from Portastatic & Superchunk I read because he often has good recs for offbeat music listening and because I admire how he's made a career out of being an artist. Eschaton comments regular Phila I read because he writes very well. Steve M I read because he annoys me by being there first, usually, with what I was going to say.
And you?
And you?
Friday, February 27, 2009
Friday Evening Thread
Haloscan seems to be sorta working. I've got stuff to do, so you're on your own!
Comment Hell
I haven't been able to find a fix, temporary or otherwise, and I don't have time at the moment to find one. So hopefully haloscan returns! If not, hopefully I can fix it over the weekend...
Marginal Cost
I think it is true that people often don't properly perceive the marginal cost of driving and related (parking). Making parking costs explicit and having pay-at-the-pump pay as you go insurance would help do this without increasing the actual cost in any way, and of course increasing costs so that drivers would internalize certain external costs would as well.
That still leaves vehicle depreciation which I don't think people really factor in either.
That still leaves vehicle depreciation which I don't think people really factor in either.
Shame
Illinois might get rid of free ride for seniors.
The free rides offered to seniors using public transit—the brainstorm of former Gov. Rod Blagojevich—would end under a measure being considered by the state legislature.
With the freebies for those 65 and older costing Chicago area transit agencies an estimated $58 million this year, some legislators in Springfield want to ensure that only the truly needy get free trips on buses and trains.
Dilution
At first pass, the Citi plan sounds better than expected (not good, but better). The government is going to convert preferred shares into common in a kind of matching program, to the extent that Citi can convince other preferred shareholders to do the same. The US will end up owning about 36% of Citi.
This doesn't, at the moment, add any more government money. It does make the investment more risky, though to the extent that you believe Citi's dead anyway it doesn't make all that much difference.
Basically it's just a continuation of "let's make it up as we go along" which isn't really a good way to handle this stuff. I think I heard a snippet of Pandit claiming that Citi's all better now. I doubt it.
...Their CFO says they don't know if they'll need more capital, and tries to blame regulatory uncertainty.
This doesn't, at the moment, add any more government money. It does make the investment more risky, though to the extent that you believe Citi's dead anyway it doesn't make all that much difference.
Basically it's just a continuation of "let's make it up as we go along" which isn't really a good way to handle this stuff. I think I heard a snippet of Pandit claiming that Citi's all better now. I doubt it.
...Their CFO says they don't know if they'll need more capital, and tries to blame regulatory uncertainty.
Big Shitpile: It's Really Really Shitty
It shouldn't be of any surprise to people who read this blog, but, no, it's never been a liquidity problem it's been a solvency problem. They bet on big shitpile, and it was a really really bad bet.
4Q GDP
-6.2% (annualized).
ouch.
...more
ouch.
...more
The Commerce Department said gross domestic product, which measures the total output of goods and services within U.S. borders, fell at an annual rate of 6.2 percent in the October-December quarter, the deepest slide since the first quarter of 1982. The government last month estimated the drop in fourth-quarter GDP at 3.8 percent.
The weaker GDP estimate reflected downward revisions to inventories and exports by the department.
The decline was worse than analysts' expectations for a 5.4 percent contraction in fourth-quarter GDP. The economy expanded 1.1 percent in 2008, the slowest pace since 2001, the department said.
Thursday, February 26, 2009
A Very Hungry FDIC
And these are just the banks that don't employ Geithner's pals!
The Federal Deposit Insurance Corp. said Thursday that U.S. banks and thrifts also more than doubled the amount they set aside to cover potential loan losses, to $69.3 billion in the fourth quarter from $32.1 billion a year earlier.
Regulators said there were 252 banks in trouble at the end of 2008, up from 171 in the third quarter.
...
The FDIC now believes U.S. bank failures will cost the deposit insurance fund more than $40 billion over the next four years amid the ravages of rising unemployment and falling home prices that have sent loan defaults soaring.
Revenue And Income
Not actually the same thing. That knowledge makes me too intelligent to be a CNBC host.
"These Institutions"
I know they're your pals, Geithner, but in case you haven't noticed these institutions fucked everything up.
The Wanker Caucus
They're very serious.
mmmmm...moderatey goodness...
House Democratic leaders have abruptly canceled votes on legislation to let bankruptcy judges reduce the principal and interest rate on mortgages for debt-strapped homeowners.
...
It hit a snag after a group of moderates expressed concerns in a closed-door meeting of House Democrats about how the bill would affect homeowners who are still struggling to make their mortgage payments.
The banking industry has lobbied hard against the measure, mounting a successful multimillion-dollar effort last year to kill it. The House is debating the measure and leaders hope to reschedule votes for next week.
mmmmm...moderatey goodness...
Cunning Plan
I wanted to believe, as some have, that Geithner/Summers/Obama/Bernanke were just slow-walking the process of EATING the big financial institutions. Increasingly, however, it just looks like Bernanke doesn't want his beautiful mind disturbed and Geithner doesn' want to make his pals cry.
Very depressing.
Very depressing.
Does Not Compute
Read this story from the NYT about Accountability Now and then read the Sam Stein story on the same subject. The latter is much more accurate.
There's a difference between Democrats from more conservative districts who, while not representing my political views, do manage to represent their constituents' views, and Democrats who engage in "centrist" wankery despite representing liberal districts, or Democrats who use the conservative tilt of their district as an excuse to get on board with anything the Chamber of Commerce supports.
There's a difference between Democrats from more conservative districts who, while not representing my political views, do manage to represent their constituents' views, and Democrats who engage in "centrist" wankery despite representing liberal districts, or Democrats who use the conservative tilt of their district as an excuse to get on board with anything the Chamber of Commerce supports.
Volcano Monitoring: Public Good
This Krugman post is worth reading to understand just how absurd Jindal's random attack against volcano monitoring was. It isn't simply that volcano monitoring might be a somewhat reasonable thing to do, it's also something that the private sector is not going to do because volcano monitoring is a public good, something with a precise definition in the world of economics (as opposed to a publicly provided good, which is just anything the government happens to fund).
Deep Thought
Was a little disappointed that Barack Obama failed to mention Manimal in his speech the other day.
And Speaking Of Lighting Money On Fire
Burn, baby, burn!
Feb. 26 (Bloomberg) -- President Barack Obama’s first budget request would provide as much as $750 billion in new aid to the financial industry, as well as overhaul the U.S. health-care system and launch a program to cut carbon-dioxide emissions.
...
The official said the aid would appear in the budget as about $250 billion because the rules require policy makers to record the plan’s net cost to taxpayers. The government anticipates it would eventually recoup some, though not all, of the money expended to help financial companies.
Lighting A Pile Of Money On Fie
UK has seen how much fun we're having doing it, so they're getting in on the action.
LONDON — Reporting the biggest annual loss in British corporate history, the Royal Bank of Scotland on Thursday became the first bank to sign up to the British government’s asset protection plan, intended to repair the economy and revive lending by helping banks to set aside illiquid assets.
The bank, which is up to 70 percent owned by the British government, said it would insure assets worth £325 billion, or $462 billion, with the government as it created a separate division. In exchange, the bank will pay a fee of £6.5 billion, or $9.23 billion, in preference shares to the government and commit to increase lending. Lloyds Banking Group and Barclays might also join the scheme.
Under the agreement, R.B.S. would bear the first loss on the insured assets of up to £19.5 billion, or $27.69 billion. Any loss after that would be borne 90 percent by the taxpayer and 10 percent by R.B.S., the bank said in a statement. The Treasury will also buy £13 billion, or $18.46 billion, of the preference shares. R.B.S. plans to run off or dispose the assets in the next three to five years.
Thursday Is New Jobless Day
Holy crap:
Jobless Claims Rise 36,000 to 667,000; Durable Goods Orders Fall More Than Expected Down 5.2% (story developing)
Stupid Dumb II: The Dumbening
Here is the advice of a Serious and Indeed Cutting-Edge Young Conservative Thinker on the Issue of Making Conservatism Once More Relevant.
This stuff is coming pre-parodied. The last sentence especially is not fair, as it could not be made up.
In these serious times, conservatives need to get serious and ditch the gimmicks and the self-referential credentializing and talk to the entire country. If the average apolitical American walked into CPAC or any movement conservative gathering would they feel like they learned something new or that we presented a vision compelling to them in their daily lives? Or would it all be talk of a President from 25 years ago and Adam Smith lapel pins? This is why I love Newt's emphasis on finding 80/20 issues and defining them in completely non-ideological terms.
This stuff is coming pre-parodied. The last sentence especially is not fair, as it could not be made up.
Wednesday, February 25, 2009
I Hope The Baby Has AIDS So The Mother Feels Guilty
The Lord Saletans of the world think we're crazy when we try to explain to them that the pro-life movement (not all pro-lifers, but the movement) is all about punishing women who have sex they disapprove of. Not much about life when you're bestowing a death sentence.
(ht SPO)
- "What I'm hoping is that, yes, that person may have AIDS, have it seriously as a baby and when they grow up, but the mother will begin to feel guilt as a result of that," he said. "The family will see the negative consequences of that promiscuity and it may make a number of people over the coming years begin to realize that there are negative consequences and maybe they should adjust their behavior."
(ht SPO)
Negative Consequences
I don't think there's anything intrinsically wrong with sexual promiscuity, but if I did I'd be a tremendous tool for thinking that "negative consequences" of it should include a stronger likelihood of mother-to-child HIV transmission. Schultheis is, unsurprisingly, "pro-life," which just means he wants women (and their children) to suffer "negative consequences" if they have sex.
Time Passes
Students who are going to begin college this fall after graduating high school were about 10 years old on September 11, 2001.
Geithner's Cunning Plan
Taxpayers eat Big Shitpile without even a scoop of ice cream to accompany it.
Regulation
Making the right noises.
WASHINGTON (AP) -- President Barack Obama is calling on Congress to pass strong financial sector regulation and oversight to prevent future crises and restore "accountability, transparency and trust in our financial markets."
In remarks prepared for delivery Wednesday afternoon, the president offers no specific regulatory framework, but calls for "core principles." Among them are consumer protections, accountability for executives and a regulatory plan that covers a broad series of financial transactions that have escaped regulation in the past.
Wingnut Mythology
I've written before that I think part of the problem that conservatives/Republicans face is that their mythology has become a bit too complex for mere mortals (people who don't listen to Limbaugh and read The Corner obsessively) to comprehend. They reference rogues' gallery of enemies and various "bad things" that most people have never heard of. Simply trying to navigate through the various wingnutty minefields while throwing out the appropriate red meat has become difficult to do, and the result is incomprehensible to most of the country.
Volcano monitoring! High speed rail!
Volcano monitoring! High speed rail!
Ha Ha Ha Ha Ha Ha Ha
The sad part is that I bet that even after last night's performance by Jindal, Gerson feels no regret about this absurd column.
...Athenae has more.
...Athenae has more.
Volcanoes Are Kinda Scary
What struck me about Jindal's complaint about spending money monitoring volcanoes was that it was really the best they can come up with. As he was.
Early threading
I worry about this stuff. There's no place in the Constitution that says the United States government can ignore anyone's inalienable rights.
Signed,
Not Atrios
Signed,
Not Atrios
Tuesday, February 24, 2009
Really Weird
Watching the speech on MSNBC at the bar I was joking all night about how the Republican viewer response graph red line was usually above the Democratic one and frequently literally off the chart. Very strange times. From email, CNN/ORC poll of people who watched speech.
- 1. What was your overall reaction to President Obama’s speech tonight – very positive, somewhat positive, somewhat negative or very negative?Feb. 242009Very positive 68%Somewhat positive 24%Somewhat negative 6%Very negative 2%Both/mixed *No opinion *
2010 Or Later
Gonna be a long recession.
Two years or more.
“If actions taken by the administration, the Congress, and the Federal Reserve are successful in restoring some measure of financial stability — and only if that is the case, in my view — there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery,” Mr. Bernanke said.
Two years or more.
Great Moments on CNBC
Rick Santelli:
I'm not saying I'm right, I'm not saying I'm wrong. It's just my opinion.
Privileging Horseshit
I do not know why editors apparently feel the need to pass on Republican horseshit without any challenge.
Mortgage Interest Deduction
I've long been sorta against getting rid of the mortgage interest deduction on the basis that it's the one real gift that middle class people get. Still, it is a bad deduction. I'd definitely support reducing the amount you can deduct over time. Long run, we should replace it, along with lots of other little potential deductions, with a big increase in the standard deduction.
Sprinkles Sidoti Strikes Again
And speaking of absurd Villagers.
In a February 23 Associated Press article, Liz Sidoti falsely reported that at his fiscal responsibility summit, President Obama "called the long-term solvency of Social Security 'the single most pressing fiscal challenge we face by far.' " In fact, as blogger Kovie at OpenLeft.com has noted, Obama did not call the long-term solvency of Social Security "the single most pressing fiscal challenge we face by far"; rather, in delivering the summit's opening remarks, Obama made that comment in reference to "the rising cost of health care":
Nobody Could Have Predicted
That Rick Santelli doesn't have his finger on the pulse of America.
Only our utterly absurd Villagers could've thought his rant represented some sort of "populist uprising."
Only our utterly absurd Villagers could've thought his rant represented some sort of "populist uprising."
Heckuva Job
Our system continues to reward failures.
As the parent company of The Philadelphia Inquirer and Daily News slid toward the Chapter 11 bankruptcy filing it made over the weekend, one employee did well on the pay front: CEO Brian P. Tierney.
Documents filed Sunday by Philadelphia Newspapers LLC and seven affiliates said that the pay of Tierney, a public relations executive who put together the investment group that bought the paper from McClatchy (nyse: MNI - news - people ) in June 2006 for $562 million, was boosted just two months ago by 38% to $850,000.
Article Controls
But an affidavit by Richard R. Thayer, executive vice president, finance, said the company was still saving money because Tierney "without an increase in compensation" became publisher of both papers in the fall of 2006 after the $565,000-a-year incumbent resigned. Even though Tierney in January 2008 demanded a 10% cost concession from workers, his own pay was bumped up 3% in May 2008 to $618,000. Then came the big boost around Christmas.
Simple Answers To Simple Questions
Glennzilla asks:
Sadly, yes.
This has been another edition of simple answers to simple questions.
Is it even theoretically possible to have a worse, more deceitful and more moronic press than the one we have?
Sadly, yes.
This has been another edition of simple answers to simple questions.
Deep Thought
You know who's really worth listening to? People who spend all day on blogs who complain about people who spend all day on Facebook.
Still Falling
Nobody could have predicted...
Feb. 24 (Bloomberg) -- Home prices in 20 U.S. cities declined 18.5 percent in December from a year earlier, the fastest drop on record, as foreclosures climbed and sales sank.
The decrease in the S&P/Case-Shiller index was more than forecast and followed an 18.2 percent drop in November. The gauge has fallen every month since January 2007, and year-over- year records began in 2001.
Monday, February 23, 2009
They're Really Bad At What They're Supposed To Do
We can debate the various reasons why - poor regulation, messed up incentive structures, etc... - but the fact is that the Banksters fucked everything up. Geithner's gang seems to think preserving the banking system means preserving the Banksters' jobs. But right now we have a really horrible banking system that has proven itself incapable of fulfilling its role properly.
WHEEEEEEEEEEEEEEE
WHEEEEEEEEEEEEEEE
Missing the Point
CNBC guy just asked why Obama didn't embrace PayGo before passing the stimulus package.
Our discourse is so stupid.
Our discourse is so stupid.
Cramdown
I don't know what the chances of this getting through the Senate are. Obama supports it, though I'm not sure how much he'll push for it to pass. It really is the best "solution" for the foreclosure crisis. It isn't painless for either side, and it gets around concerns by mortgage servicers about how much authority they have to renegotiate loan terms.
WASHINGTON, Feb 23 (Reuters) - U.S. House Speaker Nancy Pelosi said on Monday Democratic leaders hoped to bring mortgage bankruptcy legislation known as the "cramdown" bill to the House floor on Thursday.
They Still Don't Get It
Some Dems think that if they can just tweak Social Security they can take it off the table 4evah. It doesn't work like that. The Republicans and Fred Hiatt's gang will screech about it anyway, especially once the general fund starts repaying all the money it has borrowed from the Social Security Trust Fund. Remember, it's just a file cabinet!
Clueless.
Clueless.
Well Managed
This might be true, but there's a wee problem.
Obviously the Banksters didn't run their banks well. The same clowns are running the show. There's little reason to imagine that this state of affairs will change.
The Capital Assistance Program aims to ensure that they have sufficient capital to support economic recovery, even if conditions worsen.
"Because our economy functions better when financial institutions are well managed in the private sector, the strong presumption of the Capital Assistance Program is that banks should remain in private hands," the regulators said.
Obviously the Banksters didn't run their banks well. The same clowns are running the show. There's little reason to imagine that this state of affairs will change.
Mix
I'm glad it's been shelved, but this just isn't true.
I don't know who this mystery "budget analysts" are, but if you really thought it was important to have some budget model make Social Security be "solvent" for all eternity, it could easily be accomplished with a payroll tax increase. No mix necessary.
Mr. Obama considered announcing the formation of a Social Security task force at a White House “fiscal responsibility summit” that he will convene on Monday. But several Democrats said that idea had been shelved, partly because of objections from House and Senate leaders.
The president signaled in his campaign that he would support addressing the retirement system’s looming financing shortfall, in part by applying payroll taxes to incomes above $250,000. But that would ignite intense opposition from Republicans, especially with the economy deep in recession.
Liberal Democrats are already serving notice that they will be equally vehement in opposing any reductions in scheduled benefits for future retirees. But any solution, budget analysts said, must include a mix of both approaches, though current beneficiaries would see no change.
I don't know who this mystery "budget analysts" are, but if you really thought it was important to have some budget model make Social Security be "solvent" for all eternity, it could easily be accomplished with a payroll tax increase. No mix necessary.
Lied To
I've found journalists, and those like Joe who pretend to play them on teevee, have this weird belief that sources won't lie to them because if they do they'll reveal them as liars to the world and that would so totally destroy them. But of course they never actually do that. So they get lied to.
Eating Shitpile
Pay it back? Nah, just give us common stock instead.
Not enough details, but this sounds like we're just overpaying for shitpile.
In exchange for its investments, the government required the banks to issue preferred shares that pay interest and are designed to encourage repayment after a few years. Under the changes announced this morning, companies instead can give the government preferred shares that can be converted into shares of the company's common stock.
Not enough details, but this sounds like we're just overpaying for shitpile.
Wake up call
This is right, except for one thing. Baby-Boomers didn't just pay for their parents' retirement during their working lives, but also for their own, thanks to Ronald Reagan giving us the biggest tax hike in American history - on payroll taxes.
Signed,
Not Atrios
Signed,
Not Atrios
Sunday, February 22, 2009
SUPERTRAINS
I really don't understand why this story buys into the notion that there would be something wrong with a train from SoCal to Las Vegas. They're population centers with substantial traffic between them and they're the right distance apart.
UNDESERVING!!!!
It is, of course, true that any government program may provide a benefit to someone who "we" think is "undeserving." That could be because of corruption, poor program design, mistake, gaming of the system, etc. But as Hilzoy suggests, setting up some elaborate system to weed out undesirables is costly and intrusive and often more trouble than it's worth. Even simple means testing, very common of course, sets up perverse incentives for people.
But one day I hope this country grows up and recognizes that the fear that maybe someone is getting something I'm not and they don't deserve shouldn't be the primary philosophy of governance.
But one day I hope this country grows up and recognizes that the fear that maybe someone is getting something I'm not and they don't deserve shouldn't be the primary philosophy of governance.
Prudes
I'm a bit morbidly fascinated by people who are freaked out by people having sex just...well, you know, because (comments section, not post).
Sunday Bobbleheads
Document the atrocities.
9 Republican spots, 7 Democratic spots. Makes sense.
- ABC's "This Week" — Gov. Arnold Schwarzenegger, R-Calif.
CBS' "Face the Nation" — Housing Secretary Shaun Donovan; Govs. Jon S. Corzine, D-N.J., Mitch Daniels, R-Ind., and Ted Strickland, D-Ohio.
NBC's "Meet the Press" — Govs. Bobby Jindal, R-La., and Charlie Crist, R-Fla.
CNN's "State of the Union" — Govs. Haley Barbour, R-Miss., Deval Patrick, D-Mass., and Schwarzenegger; Sen. Mitch McConnell, R-Ky.; Donovan.
"Fox News Sunday" Govs. Ed Rendell, D-Pa., Jennifer Granholm, D-Mich., Mark Sanford, R-S.C., and Tim Pawlenty, R-Minn.
9 Republican spots, 7 Democratic spots. Makes sense.
Thread again
Have I mentioned lately that the only danger facing Social Security is politicians who want to "reform" it?
Signed,
Not Atrios
Signed,
Not Atrios
The Summer of the Shark
It really was the best summer ever. I'm so glad we get to relive a bit of it on cable news now.
Deep Thought
I bet a post which not-so-subtly suggests that everyone in the blogosphere except for me is a clueless asshole would be a pretty good way to drum up traffic.
Nobody Could've Predicted
That idiots with no business model would act like idiots with no business model.
I Can't Stop Crying
I feel so bad for these people.
"This is not a great time for anyone to be job hunting, including numerous former political appointees," said Carlos M. Gutierrez, Mr. Bush's commerce secretary. Previously chief executive of cereal maker Kellogg Co., he hopes to run a company again because "I have a lot of energy."
Only 25% to 30% of ex-Bush officials seeking full-time jobs have succeeded, estimated Eric Vautour, a Washington recruiter at Russell Reynolds Associates Inc. That "is much, much worse" than when Ronald Reagan, George H.W. Bush and Bill Clinton left the White House, he said. At least half those presidents' senior staffers landed employment within a month after the administration ended, Mr. Vautour recalled.
Lunchtime Thread
by Molly Ivors
Took the boy out for lunch after he opened his first bank account. We didn't eat any banks, however.
Took the boy out for lunch after he opened his first bank account. We didn't eat any banks, however.
Friday, February 20, 2009
Kinda Dumb
I appreciate that no one, including Gibbs, should be suggesting that nationalization for Citi, etc., is imminent, but anyone who thinks that his discussion of the issue rules it out is a bit dumb. We are going to continue to have a private banking system, and that will be the case after the FDIC likely gobbles up a few banks this evening. It would also be the case if they gobbled up Citi.
...by no one, I mean no one who is in the position to do so.
"This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government," White House spokesman Robert Gibbs said Friday. "That's been our belief for quite some time, and we continue to have that."
...by no one, I mean no one who is in the position to do so.
And Dodd and Schumer
Something tells me the FDIC might have a very big meal soon.
Like Josh (and Schumer) I don't think "nationalization" is the best word to use, but it's also the word that is being used. It isn't about taking over the banking system permanently, it's about wiping out the shareholders, temporarily taking control, and either selling off the assets or selling what's left to another entity.
I see chatter about how it's one thing to do it to some small town bank and another to do it to these large banks. Remember, they did it to Washington Mutual not all that long ago...
Like Josh (and Schumer) I don't think "nationalization" is the best word to use, but it's also the word that is being used. It isn't about taking over the banking system permanently, it's about wiping out the shareholders, temporarily taking control, and either selling off the assets or selling what's left to another entity.
I see chatter about how it's one thing to do it to some small town bank and another to do it to these large banks. Remember, they did it to Washington Mutual not all that long ago...
Turn The Machines Back On!
CNBC Chyron, discussing speech by Paul Volcker:
In CNBC world all of this somehow seems to be the fault of Obama's mortgage foreclosure amelioration plan, announced a couple of days ago.
PACE OF GLOBAL DETERIORATION MAY BE GREATER THAN THAT IN GREAT DEPRESSION
In CNBC world all of this somehow seems to be the fault of Obama's mortgage foreclosure amelioration plan, announced a couple of days ago.
SUPERTRAINS
If you're a tremendous train geek you can watch this simulation of the Philadelphia train system.
Though it's missing the 101&102 and the 6 trolley lines.
(via Septa Watch)
Though it's missing the 101&102 and the 6 trolley lines.
(via Septa Watch)
How Many Banks Will We Nationalize Today?
Once again, it's bank failure Friday, which provides us with an opportunity to restate the somewhat obvious point that the FDIC has been, one way or another, seizing banks and selling them off or taking control quite a bit lately. They aren't doing that because they're commies, they're doing it because they have determined that the banks are insolvent and having a special system to deal with such things makes sense.
Things I Learn On The TeeVee
Larry Kudlow just told me that the Obama mortgage plan "only benefits Freddie and Fannie" which are, you know, wholly owned subsidiaries of the US government.
Mileage Tax
I've written about this before, but just to restate my objections...
The gas tax is already an approximation of a mileage tax. To the extent that it isn't a perfect mileage tax... great! It's also tax on heavy cars, which cause more road damage, and a tax on gas guzzlers, which are, you know, bad.
As for the politics... I don't get why people think that "well, it's politically infeasible to raise the gas tax, but voters will just love it if we set up a costly system to track all of their driving habits and send them a bill for how much they've driven." Just weird.
The gas tax is already an approximation of a mileage tax. To the extent that it isn't a perfect mileage tax... great! It's also tax on heavy cars, which cause more road damage, and a tax on gas guzzlers, which are, you know, bad.
As for the politics... I don't get why people think that "well, it's politically infeasible to raise the gas tax, but voters will just love it if we set up a costly system to track all of their driving habits and send them a bill for how much they've driven." Just weird.
Things I Learn From The TeeVee
If Rihanna was a victim of domestic abuse, then she would suffer from the stigma of being a victim and would be remembered for that rather than her recording career.
Please kill me.
Please kill me.
Really Stupid Ideas
I really don't know why so many people have broken brains and think taxing mileage using some sort of complicated GPS-based tracking system is preferable from either a policy or political perspective to just raising the damn gas tax.
Mornin'
I don't know, maybe the whole thing was just a fake-out to make sure Bush didn't pardon anyone before they could be investigated.
I wish I believed that.
Signed,
Not Atrios
I wish I believed that.
Signed,
Not Atrios
Coatesville is Burning
And hopefully this arrest will make it stop.
...apparently he's confessed to 10 fires.
A 19-year-old Downingtown man has been arrested and charged with setting nine of the 23 arsons that have terrorized the Coatesville area this year, the Coatesville Arson Task Force announced today.
Roger Leon Barlow Jr., of the 200 block of W. Pennsylvania Avenue, was charged today. Among the fires he is accused of setting is one that destroyed 15 homes Jan. 24 in the 300 block of Fleetwood Street.
...apparently he's confessed to 10 fires.
Things I Learn On TeeVee
Democratic politicians who travel on the government dime are big hypocrites because they criticized CEOs receiving bailout money for flying on company owned corporate jets.
No this makes no sense.
No this makes no sense.
Politico And Similar
I think all discussions about contemporary journalism are somewhat problematic because news organizations are profit making businesses that also convey the impression that they are important civic institutions that live up to a variety of ethical standards and norms of journalistic responsibility. The thing is, you just have to be a significantly large and important enough organization and you can effectively declare that you embrace these norms without ever being entirely clear about what they are or bothering to try to live up to them. So Politico becomes a serious responsible news outlet simply because it says it is.
Greed is a defense, but it doesn't mean the rest of us have to treat them with any respect.
Greed is a defense, but it doesn't mean the rest of us have to treat them with any respect.
Actually, I Don't Read Any Of Those Things
Unless someone brings something specific to my attention.
A Very Hungry FDIC
I guess it's okay to push back on the word "nationalization," as I don't think many people who are using it really imagine that the government is going to start running all the major banks for any length of time.
The FDIC is gobbling up 3 banks per week. The fundamental ways the "big banks" differ are their size and the degree of their political influence. I don't really see how size really matters, so that leaves influence.
If Geithner and the gang really think that putting these institutions in receivership is some sort hideous commie plot, they should call up the FDIC and tell it to stop doing just that.
The FDIC is gobbling up 3 banks per week. The fundamental ways the "big banks" differ are their size and the degree of their political influence. I don't really see how size really matters, so that leaves influence.
If Geithner and the gang really think that putting these institutions in receivership is some sort hideous commie plot, they should call up the FDIC and tell it to stop doing just that.
Entitlements
I appreciate that people get twitchy whenever "entitlement reform" comes up, but I haven't been too worried about the administration's plans in this area. Hope I'm correct!
Time For Another Blogger Ethics Panel
To me the mystery has long been...just what is the Washington Post Op-Ed page for? Or, more specifically, what does Fred Hiatt think it's for?
Informing readers isn't on the list, obviously.
Informing readers isn't on the list, obviously.
The Worst Person In The World
Jamie Dimon.
Chase CEO Jamie Dimon, whose bank received $25 billion in bailout funds from the government, refused to tell CNBC anchor Melissa Francis how the bank is performing this quarter.
...
"I don't think just because someone's underwater they say I don't have to stay there. But they're supposed to pay the mortgage, and we should teach the American people, you're supposed to meet your obligations, not run from them. Because you have a mortgage doesn't mean you should run away as it goes down."
Thursday Is New Jobless Day
Holy crap.
Initial claims for state unemployment insurance benefits were a seasonally adjusted 627,000 in the week ended Feb. 14 unchanged from an upwardly revised 627,000 the previous week.
According to department data, new claims hovered close to a 26-year high.
Analysts polled by Reuters had forecast 620,000 new claims versus a previously reported figure of 623,000 the week before.
The number of people remaining on the benefits rolls after drawing an initial week of aid surged 170,000 to 4.987 million in the week ended Feb 7, the most recent week for which the data is available. That was the highest reading on records dating back to 1967.
Please Remain Calm
This is more observation than criticism, but clicking on the LA Times website you really don't get any sense that California is in seriously deep doo-doo. I'm not saying that no reporter or columnist or op-ed has pointed that fact out, just that it isn't screaming in 48 pt font on the front page.
Deep Thought
The fact that I don't actually live in Illinois should be no barrier to me being appointed to a Senate seat there.
Inevitable
Roubini and Richardson.
They're more optimistic than I am about Geithner's ultimate plans. I hope they're correct.
And by the way, if banks want Uncle Sam to buy all those "toxic" assets, the government is now going to do it alongside private capital. These investors aren't going to overpay, so that game is up as well.
Since Mr. Geithner's plan has been unveiled, the stock prices of the financial sector are off about 19%. This is not necessarily a bad thing. The banks were expecting another handout.
While it was not his intention, the reality is that Mr. Geithner is going to confirm the insolvency of the financial system. Once we face this truth, there really isn't much left to do but nationalize.
They're more optimistic than I am about Geithner's ultimate plans. I hope they're correct.
Housing Plan
At first pass it looks ok. Basically it tells Fannie and Freddie to refinance loans they have for certain borrowers at a lower rate, and uses various carrots to encourage other lenders to also do so. I still think bankruptcy cramdowns, which Obama supports but requires Congress to change the law, are necessary and desirable.
Tripling Down On Crazy
California Republicans are all in.
SACRAMENTO, Calif. (AP) -- A delicate budget fix crafted by Gov. Arnold Schwarzenegger and legislative leaders was on the brink of collapse early Wednesday after Republicans in the Senate ousted their leader. The late-night coup could derail already strained budget talks by requiring them to renegotiate with a new Republican leader.
...
Republicans replaced Cogdill with Sen. Dennis Hollingsworth, R-Murietta, whom they saw as more capable of resisting tax increases.
Not Over
Housing starts plunge.
Feb. 18 (Bloomberg) -- U.S. builders broke ground in January on the fewest houses on record as a lack of credit and plunging sales exacerbated the worst real-estate slump since the Great Depression.
Housing starts plunged 17 percent last month to an annual rate of 466,000, lower than projected, according to figures from the Commerce Department today in Washington. A report from the Federal Reserve showed industrial output sank in January for the sixth time in seven months.
Tuesday, February 17, 2009
Geithner's World
I don't know if it took Geithner a long time to realize his plan was a bad idea, or if it just took him a long time to realize that other people knew that it was a bad plan.
Not sure which is better, either.
Not sure which is better, either.
Choices
The point in the post below about automobile cost/ownership was not that everyone, no matter what your neighborhood is like, can live without a car. The point is that many people see one car per adult member of housing as an inevitable expense, when in fact in many (not all) places, even pretty automobile-centric ones, you can make choices which can reduce your car dependency. Reducing car dependency is not the same thing as living without a car, it means living in places where a car is less necessary and therefore it's reasonable to consider reducing the number of cars/household. And if you factor in the savings from reducing the number of cars you have your potential location options might expand as you can therefore afford to pay a bit more for rent/mortgage.
For those who perpetually misunderstand, I don't care if you reduce the number of cars you have! I'm for policies (and undoing existing ones) which in various ways reduce car dependency in more places, but live your life however you want!
For those who perpetually misunderstand, I don't care if you reduce the number of cars you have! I'm for policies (and undoing existing ones) which in various ways reduce car dependency in more places, but live your life however you want!
Can't Make Super Shitpile Work
I'm glad Geithner finally figured that out, although whether he's gotten around to figuring out that there probably isn't any sane way to bail the banksters out is another question.
There was a time when maybe it was reasonable to think that there were at least some liquidity issues with big shitpile, that the assets were actually worth more than the "market" would recognize. But now it's pretty obvious that the financial institutions aren't willing to sell them at market prices because doing so would force them to acknowledge that they're insolvent.
There was a time when maybe it was reasonable to think that there were at least some liquidity issues with big shitpile, that the assets were actually worth more than the "market" would recognize. But now it's pretty obvious that the financial institutions aren't willing to sell them at market prices because doing so would force them to acknowledge that they're insolvent.
Be An Environmentalist, Move To An Urban Hellhole
This article by Ed Glaeser, who presented some of this stuff at the conference I went to, is worth reading.
Key points: carbon footprints generally lower in cities, though of course carbon footprints depend heavily on local weather. Places with low carbon footprints, such as the San Francisco area, tend to have stringent land use restrictions which restrict environmentally friendly higher density living.
...adding, such places are fairly dense but could be denser is the point.
(via bunch)
Key points: carbon footprints generally lower in cities, though of course carbon footprints depend heavily on local weather. Places with low carbon footprints, such as the San Francisco area, tend to have stringent land use restrictions which restrict environmentally friendly higher density living.
...adding, such places are fairly dense but could be denser is the point.
(via bunch)
While We're On My Favorite Topic
It costs a lot of money to own and operate a car. AAA pegs it at about 7 grand per year (.pdf). That's close to $600 per month. Living in a place where you can reduce the number of cars per household provides significant savings. Minor changes to development patterns which would open up that up as an affordable possibility for more people would be a good thing.
Many people see owning a car as an inevitable expense. It isn't.
Many people see owning a car as an inevitable expense. It isn't.
Stranded
Some crazy person in the Phoenix area wants to be able to walk to things.
This family has violated the "one car per driving age member" rule, presumably because of expense. And it's expensive!
Phoenix grew into the nation's fifth-largest city through a reliable pattern: Build affordable homes on the metro area's edges, welcome waves of new buyers, and then roads, schools and retail centers follow.
Home buyers relied on that pattern. Buy an affordable home on the edge, watch it quickly appreciate, then sell at a good profit and move again to a bigger home in an established area.
...
Karen Madison lives in the neighborhood. She shares a car with her husband, who works during the day.
"I feel stranded most days because there's nothing close enough for me to walk to," said Madison, who sometimes walks a few miles, pushing her daughter in a stroller, to fill prescriptions. "We were so excited when we saw the shopping center go up just a few blocks away. But there's nothing there."
This family has violated the "one car per driving age member" rule, presumably because of expense. And it's expensive!
Deep Thoughts From Bristol Palin
Teen pregnancy is the best thing that ever happened to her and she hopes to devote her life to preventing teen pregnancy.
(she was on the teevee)
(she was on the teevee)
Morning Thread
Every village has an idiot -- but what if the entire village is rife with them?
Apparently, their names go into Fred Hiatt's speed dial directory.
Apparently, their names go into Fred Hiatt's speed dial directory.
Monday, February 16, 2009
Heckuva Job
Terminated!
Hasta la vista, babies!
Reporting from Sacramento -- In an apparent effort to increase pressure on lawmakers negotiating an end to California's fiscal crisis, Gov. Arnold Schwarzenegger is preparing to send pink slips to 20,000 state workers.
Hasta la vista, babies!
Your Modern Fiscal Conservatives
Because of the Republicans in California, the state is going to spend a lot of money to shut down public works projects and then, presumably, some time in the future spend a lot of money to start them up again.
Responsible!!
Responsible!!
Nobody Could Have Predicted
That a column which begins by invoking the name of Gregg Easterbrook would end up being utterly full of shit.
Lost the Plot
I didn't think this SNL skit was especially funny, but it was written by someone who gets, more than most pundits, what's going on with the contemporary GOP.
Shrinkage
Japan's economy isn't doing very well either.
Locally I haven't really seen signs of downturn, aside from maybe a few more empty retail establishments than usual. Philly usually sort of moves along at its own pace, however, not especially tied to the national economy.
Locally I haven't really seen signs of downturn, aside from maybe a few more empty retail establishments than usual. Philly usually sort of moves along at its own pace, however, not especially tied to the national economy.
EATED
One point that seems to be largely lost in the discussions about what to do about the banking system is that every week the FDIC is "nationalizing" banks, or more specifically putting them into receivership. This "socialism" is happening regularly. Sometimes the FDIC swoops in and hands off the assets to another bank immediately, sometimes the bank they EATED sits in their belly for awhile. So the question is why, other than the fact that they're very politically connected, the "big" banks like Citi and Bank of AMERICA, are exempt from this standard process.
Deep Thought
I do wish President McCain and Vice President Graham were on my teevee a bit more often.
G'mornin'.
My brain is empty right now, so have some music I haven't listened to.
[It's so early I didn't even scroll down to make sure that was true, and it isn't.]
Signed,
Not Atrios
[It's so early I didn't even scroll down to make sure that was true, and it isn't.]
Signed,
Not Atrios
Sunday, February 15, 2009
But Cokie's Friends - Real America - Don't Agree
The time is now. (.pdf)
CBS/NYT poll. 49% say gov't health care should cover all medical issues, with an additional 10% saying gov't should handle all emergency health care.
Only 32% say "private enterprise."
CBS/NYT poll. 49% say gov't health care should cover all medical issues, with an additional 10% saying gov't should handle all emergency health care.
Only 32% say "private enterprise."
Just Say No To Czars
Not sure a panel is necessarily better than one person, but I never did like the One Great Man vision of how to get things done.
DETROIT — The Obama administration has dropped the idea of appointing a “car czar” to oversee the revamping of General Motors and Chrysler and will instead put the politically delicate task in the hands of a presidential panel, a senior administration official with knowledge of the plan said Sunday night.
President Obama is designating the Treasury secretary, Timothy F. Geithner, and the chairman of the National Economic Council, Lawrence H. Summers, to oversee the group. Mr. Geithner will also supervise the $17.4 billion in loan agreements already in place with G.M. and Chrysler, said the official, who insisted on anonymity.
The official also said that Ron Bloom, a restructuring expert who has advised the labor unions in the troubled steel and airline industries, would be named a senior adviser to Treasury on the auto crisis.
Raising Home Values
Except for ameliorating the negative externalities caused by foreclosures on neighboring properties, "raising home values" really shouldn't be a policy goal.
Another Way To Do It
And just what way is that?
The hang-up came in trying to reach the required two-thirds majority in each house, where three Republican votes are needed. The Assembly appeared to have sufficient votes lined up, but the Senate was falling one short.
Debate halted after Republican Sen. Dave Cox told reporters he was against tax increases and would not support the two-year budget fix. Before the Legislature convened on Saturday, it was thought that Cox might have supported the plan.
''You can't help the economy of the state of California by raising taxes. Yes, there's a big deficit. But in the final analysis, you're going to have to find another way to do it,'' Cox said. ''My answer is no, and I'm not looking for additional information. I've made my decision.''
Silly Yglesias
You can only be real reporter if you ask the really important questions. You know, about A-Rod and stuff.
McCainiac
Mark Zandi was on team McCain during the campaign.
The plan includes tax cuts and government spending worth nearly $800 billion, including about $300 billion in tax cuts for individuals and businesses; $250 billion in aid to fiscally strapped state and local governments; $150 billion in various kinds of infrastructure spending; and $100 billion in income support for workers who lose jobs. By my calculations, the plan will add more than two million jobs by the end of 2010 to the number that would exist without a stimulus, and the unemployment rate will be more than a full percentage point lower.
Income support and aid to state and local governments will provide quick help to the economy. Without this relief, workers losing jobs have little choice but to immediately slash spending, costing the economy even more jobs. State and local governments struggling with falling tax revenues must in most cases balance their budgets by cutting payrolls and programs and raising taxes, adding to the economy's burdens. Federal help for the unemployed and for state and local governments will thus prevent even worse job losses.
Sunday Bobbleheads
So many Republicans.
- ABC's "This Week" — Sens. Chuck Schumer, D-N.Y., and Lindsey Graham, R-S.C.; Reps. Maxine Waters, D-Calif., and Peter King, R-N.Y.
CBS' "Face the Nation" — White House spokesman Robert Gibbs; Sen. Richard Shelby, R-Ala.; Rep. Barney Frank, D-Mass.
NBC's "Meet the Press" — David Axelrod, senior White House adviser.
CNN's "State of the Union" — Sen. John McCain, R-Ariz.; Gibbs.
"Fox News Sunday" _ Axelrod; Eric Schmidt, CEO of Google; Mark Zandi, Moody's Economy.com
Saturday, February 14, 2009
EATED
Missed a few on Friday.
Riverside Bank of the Gulf Coast, Cape Coral, FL gets EATED.
Corn Belt Bank and Trust Company, Pittsfield, IL gets EATED
Pinnacle Bank of Oregon, Beaverton, OR gets EATED.
We have a very hungry FDIC!
Riverside Bank of the Gulf Coast, Cape Coral, FL gets EATED.
Corn Belt Bank and Trust Company, Pittsfield, IL gets EATED
Pinnacle Bank of Oregon, Beaverton, OR gets EATED.
We have a very hungry FDIC!
Disconnect
I really do wonder what it would take for the Villagers to realize people don't like Republicans and their stupid shit anymore.
But That's Fine!
I don't have a problem with Republicans who, on balance, wanted the bill to pass but still voted against it. I don't really think it's "cowardice" or whatever, they're simply making it clear that they're the opposition party. And that's a good thing! It's only in bizarro Broderville, combined with the annoying supermajority bits of the Senate, that anyone really thinks differently.
...to be clear, I don't think the opposition party should always oppose everything. But this was a lot of money. A Republican bill would have been very different! There's nothing wrong with making that point.
...to be clear, I don't think the opposition party should always oppose everything. But this was a lot of money. A Republican bill would have been very different! There's nothing wrong with making that point.
Friday, February 13, 2009
Unquestioned Value
Uncle Alan:
Well, I question it. I have nothing against homeownership, but it isn't right for everyone. Obviously it isn't right for people who can't afford their mortgages after the teaser rate expires. It isn't right for people who need more geographic mobility due to the nature of their jobs or other reasons. It isn't right for people who don't want to invest time in being the "super" of their own building; houses require significant upkeep to main a roughly constant level of quality.
As for Greenspan's ability to anything... if nothing else he shouldn't have encouraged lenders to provide "greater mortgage product alternatives to the traditional fixed-rate mortgage. "
(ht reader a)
- While Mr. Greenspan acknowledges that he could have done something to avert the housing crisis, he contends his hands were tied.
“If we tried to suppress the expansion of the subprime market, do you think that would have gone over very well with the Congress?” Mr. Greenspan said. “When it looked as though we were dealing with a major increase in home ownership, which is of unquestioned value to this society — would we have been able to do that? I doubt it.”
Well, I question it. I have nothing against homeownership, but it isn't right for everyone. Obviously it isn't right for people who can't afford their mortgages after the teaser rate expires. It isn't right for people who need more geographic mobility due to the nature of their jobs or other reasons. It isn't right for people who don't want to invest time in being the "super" of their own building; houses require significant upkeep to main a roughly constant level of quality.
As for Greenspan's ability to anything... if nothing else he shouldn't have encouraged lenders to provide "greater mortgage product alternatives to the traditional fixed-rate mortgage. "
(ht reader a)
Critics Question
The AP could basically just re-write this article for every line in the stimulus bill.
Bipartisanship And Comity
You'd think in that backslapping love nest known as the US Senate, a Republican or two might tell Sherrod Brown that he doesn't have to rush back from his mother's funeral.
Is It A Problem?
What do you, readers, think about requiring an 80% LTV (20% downpayment) on primary residence mortgages? Don't think about it terms how it would impact the current crisis if a policy were implemented, whether it's a good idea right now, but if it were to happen in more "normal" times.
Discuss.
Discuss.
Deep Thought From Austan Goolsbee
Paraphrased:
Who had the crazy idea to create mortgage products for people who are in the habit of not paying their bills.
So What If He Did?
HSR between LA and Las Vegas makes sense. It's the right distance, there's a lot of traffic between the two, and right-of-way assembly is presumably (this is just a blog post) easier than it would be between a lot of places.
That Sounded Pretty Interesting
Email subject line read:
But email program had just cut off:
White House to Host Media Conference Call with Secret
But email program had just cut off:
ary of Education Arne Duncan
Meanwhile
Over there.
BAGHDAD — A female suicide bomber with explosives hidden under flowing black garments blew herself up in a crowd of Shiite pilgrims including many women and children south of Baghdad on Friday, killing at least 30 people and injuring dozens more, according to initial reports from Iraqi security officials.
Thursday, February 12, 2009
They Have Conferences
Atrios doesn't get to go to the really entertaining conferences.
Cutting. Edge. Stuff.
Visionary thinkers discuss New Media Empowering Conservative Messages:
Mary Katherine Ham, writer, Weekly Standard (invited)
Alfonzo Rachel, advocate of right-minded ideas on new media
Patrick Ruffini, online and new media strategist (invited)
with moderator Bill Whittle, PJTV
Cutting. Edge. Stuff.
Falling
Haven't reached the bottom yet.
Feb. 12 (Bloomberg) -- Home prices dropped the most on record in the fourth quarter as foreclosures dragged down values and the recession pushed buyers out of the market.
The median price of a U.S. home declined 12 percent to $180,100 from a year earlier and sales of properties with mortgages in default accounted for 45 percent of all transactions, the Chicago-based National Association of Realtors said today. Prices declined in almost nine out of every 10 cities.
Crunch Time
My guess is Republican solidarity against the stimulus bill mostly holds up. As it should! They're the opposition party. It isn't their bill.
We don't have to live in David Broder's world.
We don't have to live in David Broder's world.
Pretty Absurd
If NPR doesn't want to be associated with Juan Williams, they shouldn't, you know, associate with him. Reducing transparency doesn't really seem to conform to any journalistic ideal I'm aware of.
People In Suits
I'm at NYU for this conference which I'll be covering for The Next American City over here. Never quite got into the whole liveblogging thing, but hopefully the conference be interesting and I will have interesting things to say about it.
So, posting, cross-posting, linking, blogging will be happening shortly.
So, posting, cross-posting, linking, blogging will be happening shortly.
"Service Extension In The Urban Core"
While I'm certainly for building supertrains everywhere in an abstract sense, given limited resources it makes sense to improve transit in places which already have "transit oriented development" but maybe not quite as much transit as they should. Or, thinking about it from the other direction, a lot of improvements in "transit" can actually be achieved through improvements in land use, by creating transit oriented development around places which are actually well-served by mass transit, but don't have the appropriate density around the stations.
The point is that there are places which have high density and walkability but don't have as good mass transit access as they should, and places which have pretty good transit but don't have the appropriate level of density.
The point is that there are places which have high density and walkability but don't have as good mass transit access as they should, and places which have pretty good transit but don't have the appropriate level of density.
I believe this is what we in the professional blogging biz call "trolling," but I'll bite. The Left, including yours truly, will create an epic 360 degree shitstorm if Obama and the Dems decide that cutting Social Security benefits is a good idea.
Straightforward
Indeed it is. The FDIC is EATING (in various ways) 3 banks per week. People know how to do this.
Wednesday, February 11, 2009
Cleaning Up The Banking System
It's true that this is necessary, but simply giving them more money and hoping for the best won't do it. Instead of allocating capital efficiently as a good banking system is supposed to do, they decided to put it all down on Big Shitpile. That didn't work out so well. And the idiots are still in charge.
I Try To Love My Local Transit Authority
But they do make it so hard sometimes.
Though, credit where credit is due, $9 all day travel good for all trains/buses/trolleys is a pretty good deal.
PHILADELPHIA - Philadelphia's largest transit agency is embarrassed about a pass it sold that features a picture of the New York City skyline.
The pass marked with the Philly Beer Week logo is sold to discourage people from driving from one event to another during the beer festival.
Though, credit where credit is due, $9 all day travel good for all trains/buses/trolleys is a pretty good deal.
Stay Outta Da Burbs
It's dangerous out there.
A Bucks County lawyer was fatally shot by an unidentified assailant this morning as he arrived for work at his office in Northampton Township.
Eric Birnbaum, 51, a divorced father of two, was shot once in the back of the head at point-blank range, and was pronounced dead at St. Mary Medical Center, officials said.
Deep Thought
A bit weird telling the operator that the company sponsoring the conference call I'm trying to get on is "The White House."
Looks Like A Win
Haven't gotten all the details yet, and it certainly isn't perfect, but it is pretty much what Obama wanted.
A Bit Better
It's smaller, but it looks like they're adding at least some of the smart stuff (school funds, state aid) and taking out at least a bit of the dumb stuff (at least reducing tax breaks for home and car purchases).
Hope...Not A Plan
The hope isn't simply that "vultures" will buy up big shitpile, the hope is that vultures will buy up big shitpile at high enough prices that it won't force an appraisal of bank assets that will show that they're insolvent.
Some sort of nationalization is inevitable. Why the Obama team thinks it's a good idea to light a pile of money on fire first is beyond me.
With its plan to shore up banks that was announced on Tuesday, the Obama administration hopes to entice investors like Mr. Marks, who has $55 billion at his command, to buy troubled assets from the nation’s banks and enable them to make the loans needed to jump-start the economy.
The administration hopes, in short, to counterbalance some of the fear gripping the financial world with a bit of old-fashioned greed.
To combat the bust, Washington wants to marshal some of the same financiers who grew rich during the boom: hedge fund managers and corporate buyout specialists.
Some sort of nationalization is inevitable. Why the Obama team thinks it's a good idea to light a pile of money on fire first is beyond me.
Entitled
If Ana Marie Cox's twitters are to be believed, many in the elite press corps were horrified that Sam Stein was allowed to ask Obama a question. This has nothing to do with whether it was a good or interesting question, but simply about where in the pecking order he's supposed to be.
Already Insolvent
There are various ways to tell this story, but the punchline is always the same. The financial institutions are insolvent. For some time many of the people in them perhaps honestly believed that it was a temporary liquidity issue, that the assets were worth more than they could sell them for. That time has long passed. They bet it all on Big Shitpile and lost. And they know it.
Keep shoveling!
Keep shoveling!
Corridors
I don't know if it's the future of suburbs everywhere, but it's basically what my cunning plan to make you all live in Manhattan is like. Walkable areas around transit stations, walkable corridors between transit stations, and your basic suburbs surrounding them.
Tuesday, February 10, 2009
WHEEEEEEEEEEEE
The Fed has decided it can do whatever it wants. Just in case you didn't know.
Yes, it can do that.
WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
WASHINGTON — The White House plan to rescue the nation’s financial system, announced on Tuesday by Timothy F. Geithner, the Treasury secretary, is far bigger than anyone predicted and envisions a far greater government role in markets and banks than at any time since the 1930s.
Administration officials committed to flood the financial system with as much as $2.5 trillion — $350 billion of that coming from the bailout fund and the rest from private investors and the Federal Reserve, making use of its ability to print money.
Yes, it can do that.
WHEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Nationalize Them
So sez Roubini (can click through to watch video).
Or we can just light a pile of money on fire and then... nationalize them.
Feb. 9 (Bloomberg) -- Nouriel Roubini, a professor at New York University, talks with Bloomberg's Kathleen Hays about the banking industry and housing market.
Roubini, who forecast the U.S. recession two years ago, says the U.S. government will have to nationalize some of the biggest banks because they are now "effectively insolvent." (Source: Bloomberg)
Or we can just light a pile of money on fire and then... nationalize them.
Confrontation From The Left
It is what is almost entirely missing from our political discourse. Poor Ben Nelson (don't really pity him) just had no idea how to deal with Rachel Maddow because he never gets questions from that direction.
If You're Wondering Why The Market Is Tanking
It's basically this.
It was expected that even if they came up with a shitty plan, they'd at least look like they knew what they were doing. They have no idea.
Administration officials were greeted with sarcasm and laughter Monday night when they briefed lawmakers and congressional staff on Treasury Secretary Tim Geithner's new financial-sector bailout project, according to people who were in the room.
The laughter was at its height when Obama officials explained that the White House planned to guarantee a wide swath of toxic assets -- which they referred to as "legacy assets" -- but wouldn't be asking Congress for money. Rep. Brad Sherman (D-CA), a bailout opponent in the fall, asked the officials to give Congress the total dollar figure for which they were on the hook. The officials said that they couldn't provide a number, a response met by chuckling that was bipartisan, but tilted toward the GOP side. By guaranteeing the assets, Geithner hopes he can persuade the private sector to purchase a portion of them.
It was expected that even if they came up with a shitty plan, they'd at least look like they knew what they were doing. They have no idea.
Cunning Plan
This seem to be the key new bit.
They're going to subsidize leveraged bets on leveraged bets. High comedy!
“Together with the Fed, FDIC and private sector, we will establish a Public Private Investment Fund. This program will provide government capital and government financing to help leverage private capital to help get private markets working again for the legacy loans and assets that are now burdening the entire financial system.”
“By providing the financing the private markets cannot now provide, this will help start a process of providing a market for the real estate related assets that are at the center of the this crisis. Our objective is to use private capital and private asset managers to help provide a market mechanism for valuing the assets.”
They're going to subsidize leveraged bets on leveraged bets. High comedy!
On A Slightly More Serious Note
I do miss the days when we'd sanctimoniously lecture Japan and other countries about how horrible they were for propping up their failing financial institutions. We'd never do anything that stupid!
Fiasco
Aside from the fact that it's all about bailing out Tim's friends, it's pretty clear that they still have no idea what they're doing. It's just throwing good money after bad. Should've just left Paulson in charge.
2012
Can't wait.
If Joe Lieberman decides to run for a fifth term in 2012, a new Quinnipiac poll suggests that it may be a lost cause.
The new poll tests Lieberman as an independent against Democratic Attorney General Richard Blumenthal. The numbers: Blumenthal 58%, Lieberman 30%. Yikes.
Saving Tim's Friends
This is bullshit.
Call the White House.
Comments: 202-456-1111
WASHINGTON— The Obama administration’s new plan to bail out the nation’s banks was fashioned after a spirited internal debate that pitted the Treasury secretary, Timothy F. Geithner, against some of the president’s top political hands.
In the end, Mr. Geithner largely prevailed in opposing tougher conditions on financial institutions that were sought by presidential aides, including David Axelrod, a senior adviser to the president, according to administration and Congressional officials.
Mr. Geithner, who will announce the broad outlines of the plan on Tuesday morning, successfully fought against more severe limits on executive pay for companies receiving government aid.
Call the White House.
Comments: 202-456-1111
Monday, February 09, 2009
Funny
Warning: lots of bad words.
Sony Releases New Stupid Piece Of Shit That Doesn't Fucking Work
(ht baratunde)
Sony Releases New Stupid Piece Of Shit That Doesn't Fucking Work
(ht baratunde)
Super Shitpile Fails Again
Good news, though it's a bit sad that it took them this long to figure out that maybe:
1) Buy a bunch of shitpile at inflated prices
2) ...
3) Profit!
wasn't such a hot idea.
1) Buy a bunch of shitpile at inflated prices
2) ...
3) Profit!
wasn't such a hot idea.
The Awesomeness Of Norm
That's a mighty odd supreme deity you've got there, Norm.
When asked about the recount and how it is affecting him personally, Coleman said he starts every day with a prayer and that he knows “God wants me to serve.”
Please Stop It
I actually think it's kind of important that people have some general level of respect for government and the people who run it, though of course that respect needs to be earned. A tremendous barrier to that is, well, the idiotic ways that senators behave. This isn't just about the general high wankery level of Joe Lieberman, it's about people who spend all day praising each other for their awesomeness. They do it in the media, they do it on the Senate floor, they do it in committee meetings, they do it when giving other sorts of presentations. Really, just stop it.
Civility
I don't know how old this guy is, but I've long been amused by the number of people who, unlike me, actually lived through the 60s and still imagine that our politics is somehow extra nasty because lots of people say mean things on the internets now.
Bankruptcy Cramdowns
I actually don't remember if Obama had come out for this before, but in any case it was good to hear today.
It really is the best, cleanest, fairest, most common sense way to deal with the foreclosure crisis, ensuring that the Wanker Caucus in the Senate won't let it happen.
President Barak Obama said on Monday that he supported changing the rules to let judges modify first mortgages to prevent home foreclosures. Obama told a townhall meeting in Elkhart Indiana, as he campaigned for an $800 billion economic stimulus package being debated by lawmakers.
"If you are like most people, including me, and you've got one house ... it turns out that under current law you can't modify that mortgage if you are in bankruptcy," Obama told a townhall meeting as he campaigned for an $800 billion economic stimulus package being debated by lawmakers.
It really is the best, cleanest, fairest, most common sense way to deal with the foreclosure crisis, ensuring that the Wanker Caucus in the Senate won't let it happen.