Temple of Disinformation

In America's heartland there is a modern temple to the denial of five nines (99.999%) of what we've learned about the universe in the last couple of centuries. The Creation Museum is a sleek, elegant, well presented indoor theme park almost entirely lacking in actual knowledge. It is derided worldwide, and is a source of shame for our once forward thinking nation. It is also, I grant, an edifice to the principle of free speech. The ham, showman and charlatan who created this institution in Kentucky after he was laughed out of his Australian homeland seems to be quite sincere about the project. Ken Ham is actually his name. And he has been raking in major profits for nearly three years from this place, well beyond even his early hopes. Apparently there is more than one born again every minute. Busloads of young Christians long to go on pilgrimages to shore up their Young Earth ideology. The younger ones (under 12) can even get their picture taken on the back of a dinosaur, just like those that people rode. That is, before the old west cowboys killed the last of them off. That's why all those T-Rexes are found out on the great plains. You don't have to take this from me on faith, follow the links from the Wikipedia article on the Creation Museum. See actual video tours. So, why am I venting my bile right now? Wasn't this already adequately covered on this site? I just learned that a young collateral relative, a bright young man, is looking forward to his trip there this weekend! Half a dozen years ago, he was in public schools, in every advanced program they offered. Advanced science and math and lead cello in the district orchestra. Then his parents removed him from all that intellectual wealth to put him in a small Christian school. He still excelled, eventually garnering college board scores that got him invitations to Harvard and Yale and such. But he wants to go to a small school with an influential chapter of the Campus Crusade. Sigh. Most of this is re-posted from this FaceBook note.

Continue ReadingTemple of Disinformation

For consumers, it’s not the free market. It’s the Wild West.

Bob Sullivan is quickly becoming one of my heroes, based upon my reading of his new book: Stop Getting Ripped off: Why Consumers Get Screwed and How You Can Always Get a Fair Deal (2009). Bob also offers a blog called the Red Tape Chronicles, where he reports on numerous consumer issues. It's well worth your while. I recently mentioned Bob's book on a post focused on America's profound case of Innumeracy. I'm a bit deeper into the book now, and I am highly impressed with Sullivan's ability to write clearly and persuasively with regard to consumer issues. I am also impressed with his ability to give an evenhanded account of many consumer issues. He doesn't deny that consumer greed has played a role in modern-day screwing of American consumers. On the other hand, consumer greed is only part of the story. The other big part of the story is that our federal agencies that we have had set up to serve as watchdogs for Americans, are doing a pathetic job. Consider the case of Bernie Madoff. The securities and exchange commission (SEC) was presented with overwhelming evidence that Madoff was running a Ponzi scheme way back in 1999. They did nothing about it. Sullivan as "if the SEC isn't hunting down folks such as Madoff, do you really think it's protecting you?"

Continue ReadingFor consumers, it’s not the free market. It’s the Wild West.

Newly released AIG emails further impugn Tim Geithner

What would you think about the Federal Reserve Bank of New York telling AIG to intentionally withheld from public scrutiny that AIG was paying 100 cents on the dollar for credit default swaps at the same time that AIG was crying for a bailout from the public, thereby hiding from the public that the public was functionally bailing out Goldman Sachs and other large banks? What would you think about the fact that Tim Geithner headed the New York Federal Reserve when this was going on? Eliot Spitzer, William K. Black and Frank Partnoy sum up the issue:

Today, a Bloomberg story revealed that under Timothy Geithner's leadership, the Federal Reserve Bank of New York told AIG to withhold details from the public about its payments to banks during the crisis. This information was discovered when emails between the company and the Fed were requested by representative Darrell Issa, ranking member of the House Oversight and Government Reform Committee.
Who owns AIG? The taxpayers own 80% of it. Therefore, AIG should release the emails. Who can and should make this decision?
The taxpayer's stake in AIG is held by the A.I.G. Credit Facility Trust, whose three trustees are Jill M. Considine, a former chairman of the Depository Trust Company and a former director of the Federal Reserve Bank of New York; Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008; and Douglas L. Foshee, chief executive of the El Paso Corporation and chairman of the Houston branch of the Federal Reserve Bank of Dallas. We call on these three officials (interestingly all former Fed officials) to immediately release the documents we request. The value of these documents, if it were ever in doubt, was certainly proved by today's revelations. Release the emails.
See also, this earlier post on a NYT op-ed by Spitzer, Black and Partnoy.

Continue ReadingNewly released AIG emails further impugn Tim Geithner

The ten biggest Wall Street lies of 2009

Author Les Leopold sums it up nicely, including the fact that TARP is only the tip of iceberg regarding taxpayer money being poured into Wall Street coffers. Merry Christmas to the big Wall Street banks, who work hard to . . . someone please remind me how these big banks to make the world a better place--what do they do for the economy or for productivity? Please tell me something more convincing than free market fundamentalism.

Continue ReadingThe ten biggest Wall Street lies of 2009

Will the federal government continue coddling AIG?

Fascinating Op-Ed in today's NYT, written by three former prosecutors (ELIOT SPITZER, FRANK PARTNOY and WILLIAM BLACK) who are demanding that AIG be forced to release voluminous emails in its possession that would allow the public to understand the economic meltdown that cost taxpayers hundreds of billions of dollars, including 180 billion dollars to AIG. I agree entirely. There is no reason for delay. It's time to turn AIG inside out, that much is clear. The only thing that is unclear is whether the politicians in Washington DC can muster up the courage to represent the taxpayers rather than the big banks. Here's an excerpt from the Op-Ed piece:

aig-emails

Continue ReadingWill the federal government continue coddling AIG?