News watchers- get your binoculars NOW...

Oh, my, my, my.  There's a really nice chunk of news going on, right this very second- and there's a free education also being offered to all serious citizens in the "reality" of how "news" reaches us.

The Washington Post, this morning, featured as its Front Page Top Headline- a story - and audio recording- apparently stemming from Bob Woodward (remember Watergate?  yeah; him.)  In the "Style" section.

The recording is of a very, very private conversation - in Afghanistan; in the office of General Petraeus.  You can hear them say "are your ears off?"  They weren't off.  It's a flat offer from Rupert Murdoch to "bankroll" a Presidential candidacy by Petraeus.  Run by the current head of Fox News.

Yep.  Read all about it.  Woodward's story here.  Also in "Style"; but a featured top headline.  For a few hours.

If you go to The Washington Post website right this minute- not one word of all this is in any headline- it's been removed.  At least- they haven't removed the links; but you have to search for them.

Are you hearing about it elsewhere?  Only if you search.  Yes, ABC and CBS have picked it up- but you won't find it on their headlines.

I think- tomorrow - you will.  But at the moment- someone is VERY very ticked off- and pressure has been brought to bear, to bury it.  For a while.  But this one is SO not going to go away.

Oh, so many questions.  Why is Fox News advising our top General?  Why are they asking him to write their headlines?  (They did.)  Why is Rupert Murdoch offering to "bankroll" our politicians?

Why is General Petraeus unaware that someone is making recordings of his conversations, in his office??  The guy who was most recently- the head of the CIA?

Oh, this one is going to be fun.  Take a look!  My guess is- they'll keep it wrapped up a little while; but not forever.  It's just way too much stinky fish.

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Update; Feb. 20, 2013.    Wow.  I guess even week old stinky fish can be wrapped up so tight it won't smell.  This story; as of now, has disappeared completely.  If you didn't pick up on it within that 3 day window- you're out of luck.  Right now; all the links still work.  Send them around so they can't totally disappear.  And learn- yes; your news is controlled.

Grab this one quick!

The rumors today that the US Justice Dept. is preparing CRIMINAL! charges for some folks over the Libor fixing scandal - has got the folks on Wall Street seriously spooked!  (What!  Golly!!  You mean- you were expecting us to follow the rules!??  We had no idea!!)  And we've got the proof right here!

Bloomberg News feed is currently (but not, I bet, for long) running THIS headline:

http://www.bloomberg.com/news/2012-07-15/libor-probe-may-yield-u-s-charges-by-sepetmeber.html

Yep, that's right.  There may be charges- in Sepetmeber!

LOL!!!  For a news service that certainly strives for cool and correct- Sepetmeber is just a really huge whoopsie.  Only accountable as- oh, some nerves, maybe?  Or, maybe that's how you spell it, in Amercia?
------------------------------
UPDATE; next day, the URL is still working, to my amazement- but they DID change the resulting headline, to something quite different, and spelled correctly.  Tres amusant.

It ain't that there's nothing else to talk about...

And it's far from my favorite topic; but I just don't see anyone else really passing this information, and a couple of you guys have said you appreciate it- so; from NHK; again:


S.Korea nuclear plant officials indicted for graft

"South Korean prosecutors say they have indicted dozens of senior officials at a state-run utility for taking bribes in return for business favors. The Ulsan District Prosecutors' Office said on Tuesday it indicted 22 officials at Korea Hydro and Nuclear Power, along with 9 others who worked for suppliers or as brokers.

"Prosecutors said the bribes amounted to about 1.9 million dollars in total.  They said officials at the utility's nuclear plant in Gori in the southern region received bribes in return for tolerating delivery of supplies that did not meet safety standards.  They said other officials instructed suppliers to pad their bills and then pocketed some of the excess.

"The safety of nuclear power plants has drawn attention in South Korea following the explosion at the Fukushima nuclear power plant in Japan last year.

"The revelation of systemic corruption while compromising nuclear safety could severely undermine public trust in South Korea in nuclear power generation.
Jul. 11, 2012 - Updated 07:03 UTC (16:03 JST)"
----------------------------------------------------------------------

Yeah, I think that's news.  And powerful ammunition for those combating nukes around the world.  Anybody wanna bet what's hiding under the rug in France?  Maybe the new proprietors there will take a look now; after this incident of "dozens" of "senior officials" taking bribes for installing sub-standard materials- in a nuclear facility.

It will not turn out well.  There will be another Fukushima event in our future, of course.  My guess is, we'll see little real action on shutting down nukes until that happens.  My best two candidates- France, which is incredibly arrogant about their nuclear technology, inspite of their actual record not being that good, and the USA- likewise.  Plenty of chances for things to go wrong, in both places.  And- do you think the chances of corruption are increasing, or decreasing, as the years go by?  It's been a long time since I've seen a headline saying "Investigators find (x) to be squeaky clean."
----------------------------

UPDATE: Roz, in the comments, pointed out the NHK link no longer works (which is why I quote it in toto; they usually quit working in 24 hrs.)  But- doing a little Google search, I was able to find the story again.  Not on any big international news feeds; of course.  On a South Korean news feed.  I haven't been to that site before, so not sure how long it will work, but longer than NHK, apparently.  Do take a look; there are more details.  And isn't it just amazing that no one else in the journalistic world has picked this up?  My, my.

A whisper of hope from Japan.

More than a whisper, perhaps, though one needs to be careful, hoping, these days.

The former Prime Minster of Japan, the man who was in power when the Fukushima reactors melted through, and who lost power partly because of that- has come out publicly and clearly to say: Japan should end all use of nuclear power.  It's simply impossible to make it safe, in his opinion.  (Mine too, as you know.)

And, this is being repeated via the Japanese news feed; here's the NHK story today:

"Former PM calls for Japan to end nuclear power

"Former Japanese prime minister Naoto Kan says the nuclear accident at Fukushima convinced him that, for safety's sake, Japan must end its dependence on nuclear energy.

"Kan on Monday attended a hearing of a panel appointed by the Diet to investigate the accident at the Fukushima Daiichi nuclear plant that began on March 11th of last year.
He blamed the government for promoting nuclear power as a national policy. He apologized for failing to prevent the accident as the head of government at the time.

"Kan said a nuclear safety agency said nothing about what would happen in such an accident, nor did the government receive information from other sources. He added that he feared the situation could get out of control.  Kan acknowledged that the plant operator, Tokyo Electric Power Company, consulted the government about evacuating plant workers.

"He said that when the industry minister informed him of the workers' possible withdrawal, he thought it was out of the question.

"Kan said that he told Tokyo Electric President Masataka Shimizu that the government would not allow the workers to leave, and Shimizu complied.

"The former prime minister criticized what he calls an inner circle of nuclear policymakers, experts and businesses for trying to hold on to their power without doing any soul-searching after the accident.

"He said disbanding the circle is the first step in a comprehensive reform of nuclear policy.

"He also said the accident could have jeopardized state functions, and that he is convinced that the safest way forward for Japan is to end its nuclear power generation.

"The panel plans to compile a report on its investigation by next month at the earliest, and submit it to the heads of both chambers of the Diet.
May 28, 2012 - Updated 10:23 UTC (19:23 JST)"
------------------------------------------------------

You have to think- "wow!", reading that.  Absolutely extraordinary for the top politician to - change his mind, and speak straight out like that.  Hopeful, I would have to say.

It will be interesting to see how much that statement penetrates in Japan.  It's getting coverage internationally, at least; the NYT has picked it up.

The NYT article adds several points not covered by the NHK; perhaps as a matter of differing translations.  My favorites:

"the country should discard nuclear power as too dangerous, saying the Fukushima accident had pushed Japan to the brink of 'national collapse.' "

"In his testimony, Mr. Kan said that Japan’s plant safety was inadequate because energy policy had been hijacked by the “nuclear village” — a term for the power companies and pro-nuclear regulators and researchers that worked closely together to promote the industry."

“It is impossible to ensure safety sufficiently to prevent the risk of a national collapse,” Mr. Kan said. “Experiencing the accident convinced me that the best way to make nuclear plants safe is not to rely on them, but rather to get rid of them.”

The current Prime Minister is still intending to restart the now 100% off-line nuclear plants, and keeps pushing.  The people of Japan are resisting- but that "nuclear village" has huge power.  Perhaps Mr. Kan's speaking out so clearly can help.  There is international momentum now that the people of Japan can point to - Switzerland and Germany are now committed to total shutdown of their nuclear generators.  So the voices of sanity in Japan don't have to go it alone.

A little more nuclear, alas

Hi folks; I'm actually away from the farm at the moment; doing "meetings" stuff; making things more hectic.

So- not very thoughtful material here; but by way of keeping the news channels open re: Fukushima; two bits from NHK, in toto:

"Why containment vessels must be examined

"An examination of the reactor containment vessels is essential for decommissioning the Fukushima Daiichi nuclear plant.

"The biggest challenge in the decommissioning process is finding a way to remove the melted nuclear fuel inside the reactors and on the floor of the containment vessels.

"Melted nuclear fuel is too radioactive even for robots to handle. So workers are considering filling the containment vessels with water, which shuts in the radiation.

"But highly radioactive wastewater continues to leak out of the No.1 to No.3 reactor containment vessels.

"Wednesday's examination aimed to pinpoint damages to the No 2. vessel for repair.

The No.2 unit was the first to be inspected because its reactor building is less damaged compared to that of the No.1 and No.3 units, and workers have been able to open the door leading to the suppression chamber at the bottom of the containment vessel.

"That door on the No.3 unit had been damaged by an explosion. Inspection at the No.1 unit is being hampered by high levels of radioactive wastewater.

"Wednesday, April 18, 2012 21:41 +0900 (JST)"

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We had earlier bits indicating how incredibly radioactive #2 is; and here they tell is- it's the least damaged of them. Oy.

-------------------------------------------------

"PM names lawyer Tokyo Electric's new chairman

"The chairmanship of the troubled Tokyo Electric Power Company will be taken over by a lawyer brought in from outside the utility. Kazuhiko Shimokobe will formulate a plan to rescue the utility, which has been limping since last year's Fukushima nuclear disaster.

"Prime Minister Yoshihiko Noda asked Shimokobe to take the job. The government had been struggling to fill the post for months.

"Shimokobe, who currently chairs the steering committee of a state-backed nuclear compensation fund, said he will do all he can to lead the company with its employees.

"A former vice president of the federation of bar associations, Shimokobe is an expert in corporate compliance issues. In 2006, he helped investigate a high-profile window dressing case involving Internet firm Livedoor.

"He later headed a third-party panel vetting TEPCO's management and finance after the nuclear accident.

"The new chairman will play a crucial role in drawing up TEPCO's business turnaround plan by mid-May. The plan comes with an injection of 12 billion dollars in public funds.

"After the nomination, Shimokobe said he will first replace TEPCO's president to give the company a fresh start.

"Thursday, April 19, 2012 20:11 +0900 (JST)"

---------------------------------------------------------------

The not quite obvious bits: TEPCO was unable to find anyone who would take the job of chairman. They'd been trying for months; no one would take it. So- the Prime Minister of Japan has appointed one; along with putting in $12,000,000,000 in public funds- to pay off the public fines and compensations... um, how's that? "We're fining you a billion dollars! Here; use this billion, that'll work."

TEPCO, as a private corporation, is toast; which ought to be a warning of sorts to other companies wanting to get into nuclear power- but- the real accountability thing is mostly being bypassed, again.

So; the problem is...

   That, actually, is what I spend most of my time trying to see.  Exactly what is - the problem?

   I can tell you this; 9 times out of 10, in our world, "the problem" is misidentified or unrecognized.  Or even more frequently, denied.  What problem?

   There is an excellent bit of investigative reporting in the New York Times today (alas, not all that common).  It details how one determined man uncovered virtually all the abuses in the mortgage industry, years ago- reported it to all the various relevant authorities - and was ignored completely.

   It's an excellent study in the powerlessness of the individual, these days.  And to my mind- the reporter, well buried in the story, entirely misses her own point.

   She thinks this is a story about corruption in the mortgage and financial industries.  But it isn't.

   It's a wonderful, excellent, exhaustively documented story about how "truth", clearly and authoritatively presented, fails to penetrate our cultural apparatus to bring about corrections and change.  Systemically.

   This is "the problem" I'm talking about in the blog title.  Here on this blog, and on the various companions we all tend to peruse, we have an unusual collection of highly intelligent folks, able to see through the various cultural smoke screens, and see, really, truly, how this or that societal practice is inadequate to our needs, and we can recommend excellent possibilities for how it could, really, be made to work better.  We do it all the time.

  But The Truth -whichever one we're talking about at the moment - has no traction.  Systemically.

  The problem about this problem is- we believe otherwise.  The true religion of Academia, in particular, is the belief that discovering truth will bring change, progress, justice - good.  You just have to discover it.  Then, magically, Truth brings good.

  Manifestly- this is not so.  The present article in the Times documents that, in detail- and yet, still ends on the hopeful note that now, at last, these truths will bring change for the better.  100% of experience to the contrary notwithstanding.  Faith - not reason - claiming that reason will prevail.

  Personally- my own religion is - action.

   Now that I know The Truth Has No Traction - what do I do about that?

   First, tell you.

   Second - ask you: ok, so- from the cultural standpoint- how can we systemically give tank treads to Truth?

No, the economy isn't fixed.

In the spirit of trying to help folks understand what's hitting them; I'll share a metaphor that hit me, today, as I was attempting to respond to yet another bit of absolute nonsense in the mainstream media "financial chatter" pages.

So! The Eurozone leaders have reached an agreement! Hallelujah!! Hot Diggety! Man, now I can get some sleep; Happy Times Are Here Again!

I desperately need to find some more boggles, somewhere; I've gone through my entire supply at this point, the mind can't boggle any more; I've just used them all up. Here was my reply to one of the professional pundits, pontificating about "well, except for a few details" all is now, clearly, perfectly well.

"Nope. Fantasy is just not enough, anymore.

"Let's see if I can put this in terms the "econoastrologers" can actually understand.



"What they've just done is put more gasoline into the Automobile of Europe; which is stalled, engine dead, on the side of the road.

"Thing is; gasoline is not the problem. The problem: the engine has a cracked block; cracked wide open. It's broke- and dead; and all the gasoline in the world, will not fix it.

 Folks will hop back in the driver's seat; turn the key a few times- and the engine will not catch. Once again, they'll be out on the road trying to flag down help. But the engine block will remain cracked."

If you're reading all those financial sector headlines, and shaking your head a bit, mumbling to yourself; "but, that really doesn't make sense..." you're entirely correct.

It's the "Real Economy" that is truly broken. That's the phrase the econo-astrologers themselves use for it. Jobs? Work? Value creation? We ain't got none; can't see any in the pipeline, either; not here, not in Europe, not in China.

Eventually, the Real Economy has to pay ALL the bills for the debt; principle, and interest. And nobody has fixed it. The block is cracked; we're going to need a new engine- and nobody currently on the world radar has any clue of where to find one. And just maybe; there isn't one.

Quite possibly, that's why they avoid talking about the Real Economy. They have no idea what to say; and it's too depressing to dwell on. Bad for the markets, dude.

Oh, and incidentally, Big Oil is loudly announcing that they've siphoned another huge block of real money out of the Real Economy; $20 billion in the first quarter, just for Exxon and Shell. That'll help; as that money moves from Joe Lunchbox's savings into the stockholders' portfolios. And; of course, it's not Big Oil's fault; they just can't help it when prices go up.

Now if that doesn't cheer you up! I just don't know what will!!

:-)

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Update; next day; CNN Money headline: European Rescue Sugar Rush Wears Off.

Fancy that. It's dawned on them that "this may not be enough." To succeed, there must be economic "growth" - and there is none, they know. So, are they now addressing the real problem? Don't be silly!

"Prime minister Silvio Berlusconi (Italy) has pledged to enact broad reforms to cut spending and boost economic competitiveness. But analysts say implementing those reforms could be difficult given the current political climate in Italy."

In our automotive metaphor, he's saying "We're going to install a new high efficiency fuel injector!"

You can put new wax on the car, too- but the cracked block is still not going to work.

Peanut alert.

Really. If you eat peanut butter; stock up today.

A CNN Business story today details the coming peanut butter apocalypse. Last year at this time, the commodity price for a ton of US peanuts was around $750. Today; it's about $1,200.

The reason they give: severe drought and intense heat in the peanut belt last summer, so the crop is down some 13% from last year. Ok. Yes, climate change/climate chaos is upon us, and the economic impacts are already hitting us quite hard. I can easily understand why a 13% decrease in the crop would result in a ~40% increase in the price.

Soon after giving the cheery statistics, they go on to point out what a great opportunity this is for money changers to make a little more profit: Safe Havens; Gold, Yen, & Peanut Butter.

It is, of course, perfectly all right to make all the money you can, any way you can. It's your guaranteed right, actually. Never mind that peanut butter is often the last source of quality protein the poor can afford, and that it's a critical component of the new famine medications urgently needed in Haiti and Africa. Fascinating that the story praising the heroes of Haiti is covered by CNN also.

Here's the math on "investing" in food. Take peanuts, for an excellent example. World production is around 34 million metric tons. In the process of buying the crop from farmers, getting it to the people who process it, store it, and sell it to consumers, the peanuts change hands quite a few times. To facilitate that, and to let processors be certain they will have nuts to process next year, there is a "futures market"; where contracts to deliver peanuts at a certain time, say next July, are bought and sold.

Inside the peanut world, let's just say there are $50 billion worth of peanuts (a made up number with likely not relation to reality.) The peanut processors have, let us say, $40 billion in contracts on the books. Then- after that lovely article in CNN, a billionaire or two, from Argentina, Iraq, India, China- take their money out of oil, which is looking very risky; and use it instead to buy peanut futures. Now, let's say, there are $60 billion in the futures market- all chasing what used to be $50 billion worth of peanuts. The contracts are bought and sold daily- if you can sell the one you bought yesterday at $3/share, and you can sell it today for $3.10 a share- why wouldn't you? And here I am, with $500 million in my pocket I just took out of oil, and I need to buy peanuts- will I pay $3.15? Why yes, I will. The price is going to go up, yes? Everybody says so.

More money in a market, chasing a fixed quantity of commodity, will drive the price up. It's a law of physics that could have been written by Newton. The speculators doing this shriek, when you point at them, and swear they are providing a desperately needed service; more "liquidity" to the markets. It's a transparent self serving lie, of course; the markets functioned just fine a few years ago, when speculative money in those markets was legally restricted. But we believe a great many of those these days, one more won't hurt.

Guess who eventually pays the real money, to pay for all the profits? It's the end user, of course, that's the entire idea. In this case- it's the poor and starving. Literally; the starving.

Nice place we have here. So; better buy yours now. Of course.

It strikes me that getting speculators out of agricultural commodity markets would be a good thing to put on the list, for the Occupy Everything folks. The math is just really clear.

Greenpa's Rules of Real Economics.

Gee whiz, everybody is talking about the price of oil, the price of gas at the pump, and how we're all helpless in the hands of foreign oil producers.

Here's a comment I made over on the NYT Green Blogs

#1. When they tell you, "Sorry, but this is simply too complex for untrained people to understand." - they are lying. If you managed a B in 5th Grade addition and subtraction, you CAN understand it.

#2. When Joe Sixpack looks at the prices at the gas station, and says, "That just doesn't make sense." he is 100% correct, and he only got a C+ in 5th Grade.

#3. When Big Oil reports record profits - of billions - and they say "Look, we couldn't help it, these prices are set by the international markets-" they are lying.

#4 Could Big Oil cut the prices they charge the gas stations - and still make exactly the same profits they did last quarter? Why, yes, they could.

#5. But they don't.

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Of course, immediately after I hit the "post" button, a few more occurred to me...

#6. Does that mean Big Oil is ripping off the public - and they know it? Yes, it does.

#7. Does that mean Joe Sixpack's Aunt Ruth, the retired, pensionless, Kindergarten teacher, will finally go bankrupt, fail to pay her mortgage, become homeless, and die of exposure on the street? Yes, it does.

#8. Does that mean that when Aunt Ruth's bank can't sell her foreclosed house, loses money and gets sold to Bank of America for 10¢ on the dollar, and there is no one in town who will loan money to local businesses, some of them will have to close? Why, yes, it does.

#9. Wouldn't the Homeland Security Administration consider anyone causing such widespread economic damage as a threat to National Security, guilty of murder, and possibly guilty of Treason? Only if they're not a large multinational corporation.

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Ok, yes, I have this bad habit of thinking that something obvious to me is of course obvious to everyone. Yes, that makes me an idiot.

:-)

As first commenter Eric pointed out; maybe it's not instantly obvious. So here was my answer to him; this is the simple math:

Here's how! Remember - it's their PROFIT that is UP. Are they making ENOUGH profit already? They certainly said so in their last stockholder's letter. They make more, automatically, because they've rigged it so their profits are figured as a PERCENTAGE of the price. Price goes up; profits go up. Making the exact same profit wouldn't hurt them a tiny bit.

And- seriously - do businesses have an ethical responsibility to NOT HURT their customers? Every business ethics class in the world would say so. Are their customers being hurt? Ask them. Millions have had to quit marginal jobs because they can no longer afford the commute; I know some of them; some of them have had to quit working for me.

Here's the math (I'm making these numbers up):

Overhead costs $80/bbl. Profits are figured in automatically at, say 20% of that; $16, so cost at the pump is now $96/bbl.

Ok; so; the price goes to $100/bb. Now, the automatic profit margin is $20. Price at the pump; now $120/bbl. And their PROFITS just jumped from $16 to $20, on every barrel.

Exactly what did they do to EARN an increased profit? Not one damn thing. But they still take more money out of YOUR pocket; and put it into theirs.

Could they??? Gosh?? Just continue to harvest a profit of $16/barrel? Yes, the cost at the pump would still go up. To $116/bbl. Yes, it would still hurt me, and my workers; but just a little less. Maybe Aunt Martha could squeak by.

nah. why bother?

More to be pitied, than scorned.

For you infants, that's an old put down for a young lady who got herself knocked up without benefit of matrimony.

But it's also a shoe that fits many MBAs and businessmen. They're in a sociopathic culture; and indeed many have been sucked in and indoctrinated in it, without being, at their cores, actual sociopaths.

There are real, genetic, natural sociopaths on Wall Street, to be sure. But if you'll check the definitions there, sociopaths love to manipulate people; it gives them big warm fuzzies down in their iceberg hearts. They love to be admired. Worshiped.

Emulated. So indeed, one good born sociopath thriving as a successful hedge fund CEO (for example) will spawn dozens more; the weak, easily led, who follow in the shining footsteps, and, of course, often will strive to "out Herod Herod", as they seek their idol's praise.

Nasty little positive feedback loops, all over, in this mess.

But. Before the entire business community descends on me in fury, explaining they are not sociopaths, at all, but "good people"; who kiss their children good night, and give money to the United Way once a year -

Sure. Not all businessmen and women are sociopaths - by nature.

But. Take a good look at what you do, every day. And. How many times a week do you find yourself justifying some hurtful, harmful activity with "Look, this is business."

Yes it is. Blind pure self-interest, all others be damned.

So, if, dear businessman, you're feeling wounded that the entire world (it's not just me, you know) is starting to actually speak up and say we all loathe you- keep in mind that like the pregnant 15 year-old, many of us out here can see your problem, and we do feel compassion.

It's a sad place to be, no doubt.

What we need, obviously, is a good Twelve Step Program; to become a "Recovering Business-Sociopath."

And don't I wish I were joking.

explanation and new ACTION!-

 Since around 20% of all Boswash now knows I have an icky tummy, I figured I'd best just go ahead and tell all you guys.  And it's Crunchy Chicken's fault, of course, that I haven't already.

  Some days ago I sent this comment in to Mark Bitten's "Minimalist" column on the NYT.  I really didn't think he'd post it- but he did.  (The column it was in response to is worth reading if you're a burger fan- he's a heck of a writer.)

  My tummy has been giving me a bad time since September.  Whatever it is acts like "stomach flu", but at this point, I'm pretty sure it isn't.  At kind of random intervals, I'll throw up thoroughly; for no apparent reason; which is followed by about 2 days of 23 hours of sleep, a couple wobbly days, then a week or so of slight nausea, low energy, and an IQ of 78.

  That's the real reason I'm so quiet here.  I keep thinking it has to go away, but it doesn't.  Next step is the doctor, I guess, which I'm dreading; having spent months in doctors' offices and labs being tested for weird symptoms; almost never with any resolution.

  And the "it's Crunchy's fault" part- it's incredibly embarrassing for me to mumble about tummy aches, when she is dealing; literally heroically, with real illness.  I feel like an ass even mentioning my piddly stuff.  So, I've been quiet about it.
-------------------------------------------------------------
  Meanwhile.  I spend a fair number of hours perusing the web, and I sometimes have enough functioning brain cells that I can respond well, when appropriately stimulated.

  Here is the ACTION part.

  Anybody out there pissed at BP?  Like to do something about it besides t-shirts?

  I made this comment over on TAE yesterday:  (Incidentally, the opening essay is really worth reading, though it will not cheer you up.)
 

Greenpa said...

Carpe- you know what would be VASTLY more effective and valuable than a simple "boycott"?

A community response. The owners of BP gas stations are already loudly explaining that the boycott doesn't hurt BP - but it really hurts the small-guy owner.

This is likely very true. So-

Get all the potential boycotters together- sign them up- then send a good committee of 3 very friendly and diplomatic community people to meet with each and every BP station owner.

I guarantee they ain't happy with BP neither.

Tell them- "If you dump your BP franchise- we'll bring the local TV crews, and help you tear down your BP signs. And everybody on this list will promise on TV to buy their gas from YOU, from now on- and ask their neighbors, friends, and family to do the same.

"We want BP OUT of our community- but we really want you to stay part of it."

Now THAT would make headlines. And communities.

  The reader response has been good; and after thinking it over, I still think it's good.  Somebody should, like- do it.

  And I thought of something to add to the scenario- the communities could help the ExBP stations- form a new chain; recognizable as Ex BP.  Should get them even more customers.  Finding a new supplier for gasoline is not a problem; it just has to be done.

  And a positive outcome, instead of many many unhappy people, and ruined small businesses.

  Ok, now.  My readers here have a higher propensity for ACTION than many.  Make my tummy happy- and somebody do this.

  :-)

overload

Once again I find myself looking at way too many urgent things; both to write about here, and to do on the farm.  Winter really really has arrived; we've got 5 inches of snow, and the temperature dropped to -3°F last night (-20°C).

So, firewood probably being more urgent than theoretical discussions about Life, The Universe, and Everything, I'm going to just do a quickie here and try to get out and get in some fuel, before the snow gets deeper.  Back seems to be essentially functional, and not feeling fragile, usually a reliable indication.

I have two cartoons for you here, and hope I am not breaking any copyright laws.  These are from "Tom the Dancing Bug" by Reuben Bolling.

They are so exactly spot on as to be scary.  How is it our humorists have more solid understanding of economics than our economists?  Really?  Don't you think that should tell us something?

The first one here predated the announcement that the Federal Reserve Bank was going to start - buying US Treasury Bonds... to prop up the market- by a full week, I think.  (click on pic for full size, if it's working.)

And this second one is from this week, and illustrates what to me is an obvious truth; that "economics" is a religion; not a science.  Really- not kidding.

Just good stuff to chew on for a while.

Coming soon:  "The Walls of The Erlenmyer Flask", and "Why 30 years is not forever."

---------------------------------------------

Update 12/3; just a little more quick fun; Stuart Carlson today.  Read the banner on the bottom...

So long, Sam's.

I turned in my Sam's Club card on Monday.

There could be many reasons to do that, of course, but the straw that broke this camel's back was pure business- I have lost faith in the management of Sam's Club.  They are doing business according to known failed practices.  Which, incidentally, are stupid on the face, and even stupider in today's business climate.

Is all the business world contracting at the moment?  Yes.  Then why, pray tell, would you want to actively insult and drive away customers who have a long record of always paying bills on time?  Hm?  

The answer to the obvious "What ARE they thinking??"  is: they're not thinking at all.

Here's the whole story.  I signed up as a Sam's Club member years ago, as soon as one opened where I could sensibly reach it.  It's a "Business Membership"- because, duh, I have a business, and we intended to actually use some of the price breaks that are possible there.

The whole fantasy that Sam's sells "wholesale" is a big fib, of course; they do sell some stuff aimed at small businesses, but mostly they make money by selling great big packages of stuff; at a slightly lower price per pound or whatever; but you have to buy four times as much- so they still come out ahead.  If you can buy carefully from them, and have storage space- you can save some pennies.  But you also have to keep your brain turned on- some things, like engine oil, are always much cheaper somewhere else.  Very hard to beat their prices on tires or car batteries, though- and we use golf-cart batteries for the power here.  Saved money there.

By and large, we managed to save a few pennies shopping there, and it was probably actually useful.  Though always a little marginal.  Lots of things could have been had cheaper through actual wholesalers, but it would have required more time and effort on our part; some of the benefit was just convenience.

After a couple of years, they expanded their enterprise, and got into providing business credit.  It was easy, though not cheap, and- convenient.  So we signed up for a $5k credit line, as soon as it was offered.  And have used it, over the years-probably ran it up to 4k once or twice; but always paid it back down in a month or two.

Our business here is plant based- which  means cash flow highly seasonal- some times there isn't any.  Which makes credit very useful.  And of course totally standard for any business; if you go to a bank or business advisor, and tell them you aren't using credit lines to even out cash availability, they will scream at you.  Not just shake a finger, naughty naughty- they'll say you're an incompetent manager.

It seemed to make sense (at the time...).  Never any problems with it; they were providing a service.  Credit.  We bought it, and paid for it.  On time, always.

------------------------------------------------

Monday, we were in town celebrating a birthday, with a little lunch at the Chinese buffet, and stopped at Sam's to do a little stocking up.  Combine trips, of course.

As a matter of convenience, I said "leave it on the card", as we were checking out- and my Sam's Club business credit card was declined.  By Sam's.

Um.  What?

I knew, having paid the bill the week before, that the account was more than paid up, nowhere near the limit, and totally in good standing.

We also know that credit card companies are pulling in their credit lines- to cover their own sorry butts; even for customers who have nary a black mark against them.  We've bellyached about that here before.  Everyone in the community says this is a really, really bad idea; particularly right now.  Besides being dishonest.  But the credit companies are doing it anyway; bailouts or not.

I was - ok, incensed.  I'd expected this nonsense from Citi, and Chase.  But not from Sam's, whose business credit is handled internally.  They're really free to act as they choose.  And they're choosing stupid.

I gave them a chance to straighten it out.  Went to the "Membership Services" desk, and explained it (somewhat loudly, so everyone within 50 feet heard just fine).  They were well trained, and sympathetic.  The girl called up "the number", and actually tried to convince the poor woman answering the credit number to change it.  She, of course "doesn't have the authorization".  Eventually I talked to the credit person myself.  Laid it all out.

"Are you looking at my record there?"  

"Yes I am."  

"Ever late?"  

"No."  

"Over limit?"

"No."

"I know this isn't YOUR doing- but part of your job is to pass on the customers' responses to your bosses; so I want you to really pass this on."

sigh "They really don't listen to us very much..."

"Tell them they need to remember.  This is a BUSINESS.  You are doing BUSINESS - with me.  And incidentally - I have been CHOOSING to DO BUSINESS - with you.  You can change the terms of our agreements without reason or notice?  Guess what.  So can I.  Business by definition has two participants- and the entire credit industry has forgotten that."

And I hung up; and handed my member's card to the Membership girl.  "Keep it.  I'm done here.  Cancel my membership."

I got nothing but understanding grim smiles from the other customers; and actual applause, from one.

---------------------------------------

In reality, I'm not giving up much- if anything.  Sam's is far from green, and as part of the Walmart empire, has some pretty questionable economic behavior, anyway.  I'm giving up some convenience, and cheap tortillas.  We have no similar stores here, no Costco, etc.  But now my dollars are going a little more locally, which is good.  And I have credit elsewhere.

So I'm not feeling all that noble.  But it did feel good.  And loud.

And I no longer have to feel slightly sleazy shopping there.

----------------------------------------

Oh, and.  Abbie's comment made me think of this little addition.

Abbie- yeah, the banks claim lots of "rights". Got a new one in my current American Express statement.  In extremely fine print:

"Your credit card agreement is hereby amended to include this sentence, in the section on "In the event of disagreements regarding payments" paragraph 3, after the last sentence: "You authorize us, or our agent, to access your bank account and withdraw the contested amount."

Oh, I do?

Hey, American Express; back atcha; our agreement is hereby amended to include; "YOU authorize me, the cardholder, to make any payment I want, whenever I want, and under no circumstances will any additional fees be charged for anything.  In the event of disagreement, I, or my agents, may access your bank account, and withdraw double the disputed amount."

I think that has exactly the same force of law, don't you?

sheesh.

Keeping up

Look, I know, it's really hard for boring ol' me to compete with Tasty Chicken's "All Sex, -  All the Time!" blog; or " Sharon Prepper And The Lists of Doom" - but- seriously, I'd like you guys to pay attention here, and do a little screaming and hollering, for the good of us all.

Yes, we all know the financial bailouts are and always were a scam, and are not going to work in the long run.  If you don't believe it, read the last several months of posts over at The Automatic Earth.  Ilargi there is blunt and biting; Stoneleigh is patient and thorough; and they've both been RIGHT about what was going to happen next - like 98.7% of the time.  Nobody else comes close for explaining the financial debacle.

But- as much as I am in favor of always always looking to the long run- in this case, the "short term" consequences of some totally unnecessary chicanery (ie. "theft") are going to just make everything worse- hurt good people, and enrich bad ones.  

And we might, actually, be able to put a crimp in their thieving plans.

Yes, I know the elections are days away; and everybody is distracted... even so; there's been a little flurry of press; which is a large part of what the politicos pay attention to.

Now is the time.

Take a look at the previous post; and- actually READ the articles linked to there.

That article from the New York Times- has been the #1 Most Emailed story from the Business section of the Times for about 24 hours; it's still #3.  That means- a whole lot of people are thinking about it- and care about it.

Here, from The Financial Post, is a nice clear story about why this stuff matters; immediately.

The credit crisis is spilling over into the grain industry as international buyers find themselves unable to come up with payment, forcing sellers to shoulder often substantial losses.

Before cargoes can be loaded at port, buyers typically must produce proof they are good for the money. But more deals are falling through as sellers decide they don't trust the financial institution named in the buyer's letter of credit, analysts said.

"There's all kinds of stuff stacked up on docks right now that can't be shipped because people can't get letters of credit," said Bill Gary, president of Commodity Information Systems in Oklahoma City. "The problem is not demand, and it's not supply because we have plenty of supply. It's finding anyone who can come up with the credit to buy."

This whole "letter of credit" thing is a little obtuse if you're not a financial freak; but basically both ends of the shipping business are now refusing to trust each other - as they always have- that the money for the ship, and the money for the cargo, is actually there.  And behind that lack of trust is - the goddamn, greedy, lazy, stupid, incompetent, screw everybody banks.

Then, there's this; from the Washington Post: Banks keep paying dividends...

U.S. banks getting more than $163 billion from the Treasury Department for new lending are on pace to pay more than half of that sum to their shareholders, with government permission, over the next three years.

The government said it was giving banks more money so they could make more loans. Dollars paid to shareholders don't serve that purpose, but Treasury officials say that suspending quarterly dividend payments would have deterred banks from participating in the voluntary program.

Critics, including economists and members of Congress, question why banks should get government money if they already have enough money to pay dividends -- or conversely, why banks that need government money are still spending so much on dividends.

Gosh.  Really.

And, today, this from our friends in the oil industry: All Time Record Profit from Exxon.

The Irving, Texas-based company has now reported back-to-back record quarters, following its $11.68 billion in profits for the April-June period.
The end of the third quarter coincided with a dramatic plunge in crude oil prices, but Exxon Mobil's revenue still climbed 35 percent to $137.7 billion, slightly higher than the gross domestic product of Algeria. When the third quarter ended on Sept. 30, benchmark crude prices were still about $100 a barrel, down 30 percent from summer highs. By the close of trading Thursday, a barrel of oil cost $65.96.
"Our integrated business portfolio, strong operational performance and financial discipline continued to allow us to capture the benefits of the commodity price environment," Exxon Mobil investor relations chief David Rosenthal said on a call with analysts. "Despite recent volatility in the financial, commodity and credit markets, the fundamentals of Exxon Mobil's business remain strong."

I have ranted about oil profits here before.  Something I said then: 

Big Oil is stealing money as fast as they can, before someone in Congress wakes up.

"Ooh, we're SO sorry our profits are creating ALL TIME records! It's really not our fault! It's the markets! That 40 Billion dollars we siphoned out of your pockets last year? We really couldn't help it! We also couldn't help that we did it again, and again, and again." 

Liar liar, pants on fire.

(Incidentally, if I turn up dead tomorrow, you'll know why. You think $40 Billion/yr isn't adequate motivation for killing? Many times?)

So, Exxon (and everyone else in Big Oil) you're telling me that-

a) nobody in your company NOTICED you were making record high profits, repeatedly?

b) nobody in your company thought- "hm, if we take an extra $20 BILLION out of the economy, some of our customers, and their businesses, might be hurt."? (one lucid example: fishing license purchases, and boat license purchases, in Minnesota are down- substantially- which means a bunch of related businesses will have profits- down.)

c) nobody in your company has the AUTHORITY to say "let's cut our prices just a tad- take a little less profit this quarter."?

I really don't believe it; though I suppose it's possible you're all really that stupid. Your actions certainly suggest that.

So. They're still at it.  I know; everybody in Big Biz is Bizy stealing everything not nailed down; but the oil money thefts are worse.  Because they are stealing REAL money- out of the "real" economy.  They're taking your, and my, earned dollars, the ones we used to pay off our credit cards and mortgages with; and putting them into their fat pockets, leaving ours empty.

And as wonderful as it is to have $2.00 gas- wouldn't it be even MORE wonderful to have $1.00 gas?  (from the personal budget standpoint, right now)  And know that EXXON would STILL be profitable if they were charging $1 a gallon?

A basic principle that has slipped into utter obscurity here is that "Business" is allowed to operate- profits are allowed to be made - for the public good.

The people running the Wall Street Casino have totally lost sight of that- they've utterly forgotten, if they ever knew.

They must be removed.  All of them.  Fast.

It really is tar, feathers, pitchforks and torches time.

I don't give a rat's ass about the banks.  What I care about is my Aunt Martha.  And yours.  The people who never hurt a fly, and never would; who are being dragged under- literally killed- by this huge scam.  And the little businesses, that have been using plain credit to even out cash flow.  Except now; regardless of perfect records- the banks refuse, just to continue what they've already been doing- and making money on- for years.  Morons.

Congress DOES have the ability to put a stop to it, if they wake up.

Please- call your congress people, or email.  Use the letter I wrote yesterday; cite these articles- add your own forceful words.

I think we can make a difference.  Or I wouldn't ask.

Action time again-

I haven't been screaming for folks to call/email/write your congress people recently.  Because, there haven't been many points where we could make much difference- or any.  The great financial debacle is mostly beyond our control.

But.  Once again, I'm seriously ticked off- and just sent my congress-people this:

Here is yet another financial crisis issue that needs the IMMEDIATE attention of the US Congress.

Banks Cutting Credit Across The Board

Essentially, the very banks now being bailed out by the taxpayers, are daily responding by cutting credit to all their customers- including those with completely spotless records. They are raising interest rates, and canceling "inactive" accounts- ie. those the customer actually pays off, every month.

Blatantly- they are doing this with no concern whatsoever for the common good. The rescue was sold to us- we who are paying for it- as a way to stimulate the economy.

The US Congress needs to once again call these CEOs on the carpet- and, now that we are stockholders- FIRE THEM. Now.

And replace them with executives who actually give a damn about the United States, and those who live here.

More boiling anger folks- coming very fast-

Please feel free to copy that, and send it on.  The whole URL for that NYT article is 

http://www.nytimes.com/2008/10/29/business/29credit.html?partner=permalink&exprod=permalink

or http://tinyurl.com/5wgvqf

Here is another, from my neck of the woods, with personal stories: Banks pull squeeze play on credit cards.

-----------------------------------

Sigh.  I know.  It may not make a lot of difference in the long run.  But I have a lot of small business friends, who use their totally solid credit to manage their business flow.  Buy inventory, pay it off next month.  Easy with a good credit card- very hard without.  At least, if reasonable credit was maintained for reasonable customers- they could last longer.  For many, this kind of credit cut- and raise in interest rates- means instant ruin.  What a nice idea.

Who ARE these scumbags, and why do we tolerate them?

We - all of us- are now stockholders in those companies.  

Let's scream their house down.  Fast- to keep more people from going under, just because these scumbags are finally afraid of what they've done.  

Let me know what you do!  You know- I'm more than half convinced, even now, that our early screams here about food speculation did make some difference- and at the very least, got the subject up into the headlines.

Mesmerized-

If you're like me, you're doing a good imitation of Bambi in the headlights- watching the train wreck in progress that is our world "financial system".  And wondering where it's all going to wind up.

There's no shortage of pundits, most of them now proclaiming doom, since the bailout was rejected.  No shortage of finger pointing.

yuck.

I could just really use a hug, right about now.

I bet you could too.

Hugs, guys.

Hang in there.

The Parable Of The Grateful Serf

In Merrye Olde Englande many people lived as serfs, in the Middle Ages.  A serf is property, usually bound to a particular piece of land; essentially a slave.  Not- quite; if you want to quibble.  Serfs weren't chained, though they often wore an iron collar; and they had some rights.  They just weren't allowed to travel, say, more than a mile from their farm.  Free-range slavery, then.

Geoff, our serf, was born in the wattle and daub farm cottage, and when his father died in harness Geoff became the one chiefly responsible for operating their farm.  He took a mate, and they had children, to make sure the farm would continue to bear produce for the Lord.

As a reward for the family's labor, and incidentally to provide them with enough food to survive, Geoff and his family were entitled to keep 1/10th of all they raised.  No, not including the pigs, don't be stupid; those belonged entirely to the Lord.  But they got to keep 1/10th of the turnips; 1/10th of the barley, 1/10th of the wheat.  No potatoes; this is before Columbus infected America.

The Lord's Reeve (I think that's the right name) would come around in the Spring and tell Geoff what to plant- and how much- and when.  When a child became old enough for labor- the fields to be managed would be enlarged- more must be produced.  Only fair.  The child eats, the child must produce.

Work starts before dawn and runs to after dark.  Essentially every day of the year.  When not working in the crops, there are the pigs and geese to tend, and protect from wolves, foxes, and outlaws; brushwood to gather to feed the fires in the Lord's kitchens; etc.  Land to plow; by hand; fences and hedges to repair; roads to build...

The system works beautifully.  Geoff has just enough food to keep his family alive.  If they all work hard.  And a roof.  Any effort to leave the land would almost certainly result in death- or if they did manage to escape- starvation.  They would have no land, no turnips, no law.  Staying put is by far the best option for Geoff, and his 8 children.

---------------------------------------------------------------

The years pass.  The children grow, those that survive.  More are born.  There are moments when it's not utterly unbearable.

One Spring...

The Reeve arrives on his annual visit; riding his horse, and accompanied as usual by 5 men-at-arms, on foot.  He is wearing a sad face.

Geoff and his mate and family greet him; of course they are expecting the visit, and are waiting to hear what their tasks will be in the coming year.

The Reeve begins; "Great news, Geoff.  Our Lord is going to war!  You know that the lord to the south has been raiding our people for years- the time has come to end it!"

Geoff is mildly interested; he's heard of the raids, though they are far away, almost 5 miles.  Perhaps the pigs he tends will be safer.

The Reeve continues.  "Of course- war is costly.  Our Lord must have more men; and they must be armed.  I know we can count on your best efforts this year."

Geoff is now terrified.  Will they take his sons?

"Everyone in the Lord's keeping must contribute.  Geoff- this year, you must deliver the Lord's portion - and half your own, as well.  This is the law."

Geoff and his mate are stunned.  The children stand by, uncomprehending- and are interested to see the tears begin to run down their mother's face.  Geoff and mate know- this is a death sentence, for someone.  The 1/10th they keep is barely enough to keep body and soul together as it is.  Cut in half- they cannot live.  Perhaps some of the children can be sold into full slavery, and saved that way.  Perhaps.  But they can't afford to lose the strong children, and the market for puny young ones is very poor.  They don't really own their children either- the Lord does...

Like a pole-axed ox, Geoff sinks to his knees- it's not premeditated, not an act- he's facing utter catastrophe.  "Please... Sir... you know us, we work hard.  Every year, we've been fair to the Lord; we always deliver his share; we don't cheat and hide some, as you know others do.

"Please.  We will lose our children- or we must all starve together.  Please, Sir Reeve...  we beg.  Is there no other way; is there nothing we can do to escape starvation?"

The Reeve appears moved.  "Geoff - it's true; you and your family are productive; I know you work as hard as you can; better than most.  I've always considered you a good serf; I have always been as a friend to you.  But what am I to do?  The decree is clear.  All must contribute more for the safety of the fief.  I am powerless."

Geoff and mate are prostrate on the ground.  "Please.  Please.  Must we starve?  Please, Sir Reeve- Please..."

The Reeve appears uncomfortable up on his horse, and unhappy.  He sends the men-at-arms away, out of earshot.  "Geoff" he half whispers... "I cannot see you starve- I will turn a blind eye, as much as I can- I will do all I can, because I am your friend - I will allow you to keep 1/4th of the lord's extra portion.. if I tried to let you keep more, I would be found out, and we both would be put to death..."

Geoff and his mate are wild with joy.  Instead of losing half their family's annual food supply- they will only lose 3/8ths.  It's wonderful!  They have escaped an incredible danger!!

"Oh!! Thank you!  Thank you, Sir Reeve!!  We will never forget your kindness!!"  and Geoff and mate gather their family into their arms as tears, now of joy, run down their faces.

----------------------------------------------------------------------

The Reeve, most likely, had firm instructions from the Lord to gather 1/4 of the Serfs' shares, not 1/2- he wouldn't want his serfs to become too weak to work.

Have you noticed how absolutely delighted you are to pay $3.50 for a gallon of gas?  It's wonderful to have it so cheap, isn't it?

I didn't make up this Parable of the Grateful Serf - I heard it somewhere, long ago.  It's an ancient- truly ancient- and well known, well studied, method of "management".

We're being "managed" folks.  Or manipulated, if you wish.  Good old management techniques like this is how Exxon et. al. have had staggeringly huge record-breaking profits for what, 2 years in a row, now?

It works on us all- it works on me- I'm SO grateful gas is only $3.50 - and I KNOW it's a trick.   And  the folks on Wall Street- are ecstatic that the Dow closed at 11,020 today.   When a couple days ago, it was at 11,700.

Even the mainstream commentators are catching on- speaking up.  Steven Pearlstein at the Washington Post has had several very tough things to say over the last months; in his column today, he lays it out: 

"What we are witnessing may be the greatest destruction of financial wealth that the world has ever seen -- paper losses measured in the trillions of dollars."

Those are very heavy words indeed- for a business columnist at the Washington Post.

And keep in mind- not everyone is getting skinned.  Some folks are getting rich- every time a dying bank is "rescued".   The managers have stripped your pennies, and mine- now they are turning on each other.

It's all being managed.  And the managers have known how to do it, for hundreds of years.

And like Geoff- there's really nothing you and I can do about it.  The alternatives are worse.  But just maybe, it could be useful to keep your eyes and mind open- and try to see what's really going on.

Financial Tooth Fairies, Ex Machina!!

Zooming out to work on the guinea run before the sun gets hot, still I couldn't resist sharing this bit of astonishing fiscal humor with you before I go.  From the New York Times: "A New Tool Announced To Support Home Loans."

The boys in The New York Stock Casino have come up with a new game!!  (that's what a "tool" is-)  it's called- "covered bonds".

Oh, be still my heart!  Finally, the magic wand is waved, and the mortgage collapses all go away.  If you're not cackling and rolling on the floor in helpless laughter yet, you really should be.

They're all chanting "I DO believe in "tools"! I DO! I DO!"- and hoping, praying, the rest of the world will join them.  Puffing new hot air into the housing bubbles- which just don't hold air anymore.  There's no such thing as housing expansion.

It's a short article.  If you can see anything besides smoke and mirrors in these "covered" bonds, by all means, let me know.  It's pure, pure, puerile fantasy.  This is what our financial leadership has been reduced to.  What they're really showing us is that their entire system of air castle builders has no idea- none- what real wealth is; or real value.  All they know is: money; and if I sell you my pile of money, and charge you interest on it, you can sell me the same pile of money back, and charge ME interest on it; then I have a big pile of money again, and I can sell it back to YOU, and charge YOU interest on it; and we all get bonuses at the end of the year!  Forever!  Really!

Then, look at the list of who's going to be selling these new covered bonds "secured by pools of assets like home loans" - and then read this little bit in the article: "Unlike mortgage securities, which pass all the risk to investors, covered bonds collateralized with mortgages would continue to perform even if the mortgages backing them default — as long as the bank remains solvent."

ROTFLMAO!!!!

I'm going to run right out, and bet that Wells Fargo is going to remain solvent!!  Sure I am.

oh, dear, tears of helpless laughter in my eyes.

What fools these mortals be.

------------------------------------------------------------

Update-  OMG!!!  And it just gets better and better!  A followup article, NYT- has a little more discussion about what the heck a covered bond is, and what it might do-  and contains this gem:

"Covered bond markets exist in many European countries. In some of them, laws make the legal standing of such bonds clear, but Mr. Paulson and the other agencies concluded that no legislation was needed, and that policy statements by regulators would suffice."

My god, why aren't these guys writing for Saturday Night Live! ???  I mean- just look where running our entire financial system based on "policy statements by regulators" has gotten us so far!  By all means- we need more of that!  

Tears in my eyes!!

You can see it: in "Blazing Finances" --  "Legislation?  We don' need no stinkin' legislation!"  Mel Brooks, I hope you're taking notes.  Or Broadway could really use "Springtime For Paulson"; coming soon.

"Springtime, for Paulson, and Bernanke.  Winter, for Congress, and hope."  It even scans.

-------------------------------------------------------------

And the Washington Post chimes in! "Executives from four banks -- Bank of America, J.P. Morgan Chase, Citigroup and Wells Fargo -- stood shoulder to shoulder with Paulson at the news conference and issued a joint statement saying they would consider issuing covered bonds, although they were not specific about their plans."

Guys, you're killing me!!  "Shoulder to shoulder!!!"  forsooth!!  Our brave, brave little soldiers in pinstripes!!! - and all committing to- oh, wait, they didn't actually commit to anything at all.

I'm gasping for breath here!!!

Thank god the "Financial Sector"  (gasp!  choke!  cackle!)  is good for something these days; I haven't laughed this hard in years!

just can't help myself

It finally got to me.  I have NO time for this, but I just can't stop myself.

The Stock Market- the "financial sector" - is entirely populated with absolute idiots.

And, just for fun; most of them are certifiable gambling addicts, to boot.  Self-deluding, in the extreme.

Two stories, running simultaneously in the New York Times, right now; prove this beautifully.

Story 1; "Oil and Food Push Prices Higher".  

Gasoline prices rose 5.2 percent in May and were up 21 percent compared with a year ago, according to the report, released by the Labor Department on Friday. On an annual basis, inflation ran at 4.2 percent compared to May 2007. The rise in the index was slightly more than economists had forecast.

Food prices rose again in May as Americans paid 5 percent more for foods and beverages than a year ago.

... Minus the cost of food and gasoline, inflation was 0.2 percent for the month.

Ok, got that?

Story 2; "Stocks Up After Inflation Data."  This is the entire story, here; a note;

NEW YORK (AP) -- Wall Street is extending its gains in early trading after a pair of economic reports point to the Federal Reserve keeping interest rates stable when it meets later this month. The Labor Department's report on core inflation, which measures price increases but strips out volatile food and energy costs, met investor expectations.

The Reuters/University of Michigan preliminary reading on consumer sentiment for June has fallen to 56.7 from 59.8 last month. The market had expected the reading would remain unchanged.

Taken together the reports seem to make the case for the Fed to keep rates unchanged, rather than raising them, when it meets June 24-25.

The Dow Jones industrial average is up about 124 at the 12,266 level.

Oh.  My.  God.

So- the market is ignoring the real inflation rate- by stripping out food and energy.  Why?  Because they want to, is why.  It makes them feel better.  And they're ignoring the fact that their pundits thought wrong on consumer "sentiment" (otherwise known as "consumer confidence", a measure of how willing consumers are to believe in the future, and spend money).  

Pundits right?  Yay!  Pundits wrong?  Yay!

My jaw is just dropped, right on the floor, at how anyone can claim, with a straight face, that these morons know what they're doing.

The only possible action from a responsible government would be to move in with troops, and lock 100% of the inhabitants of the "financial sector" in a loony bin.  Or maybe Guantanamo?  They're about to go out of business there, I understand.  We could consider it a Federal employment Initiative; keep that facility working.

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On the good side: also in the NYT right now: Speculators Become Targets.

Legislators are aware that constituents are angry about speculators driving up food prices (and fuel prices).  And they're starting to call, seriously, for action.

Did your emails and calls a couple weeks ago have anything to do with that?

YOU BET THEY DID!!!  I guarantee it.  It's quite possible that your email was the first one that staffer read, and they kind of blew it off.  But then they got another one.  And another.  Hey, it's a trend.  And the talk started- and here is a nice fat article in the NYT- and rising awareness.

Thanks, guys, and congratulations.