Corrupt bankers and corrupt government regulators

Robert Scheer sums up the cozy relationship between the U.S. government and the financial sector and it's ugly. One federal judge has the guts to tell it straight, but where is the SEC and where is the Obama Administration? In the process of acquiring failed brokerage house Merrill Lynch, Bank of America sneaks more than $1 Million in bonuses each to 696 Merrill Lynch executives who ran the company into the ground (Merrill Lynch had lost $27 Billion). These outrageous payments occurred while BofA was receiving $45 Billion in taxpayer money as part of the "bailout." On top of that, 39,000 additional Merrill Lynch employees were each paid an average of $91,000 in bonuses, an amount that the Bank of America attorney suggested wasn't a significant amount. New York federal Judge Jed S. Rakoff disagreed, saying:

"I'm glad you think that $91,000 is not a lot of money; I wish the average American was making $91,000."

How corrupt is the government/banking relationship? The SEC did sue BofA of misleading it's shareholders, but this sweetheart settlement stinks to high hell. Consider this quote from Scheer's article:

The SEC complaint did accuse BofA of misleading its shareholders, but instead of digging deeply into how such decisions had been made and by whom, a deal was concocted in which BofA got off with a paltry $33 million fine. That is less than the bonus received by one of the Merrill execs. Yet the SEC deal would have closed the case on how that decision was made.

"You filed a rather uninformative, bare-bones complaint," Judge Rakoff told SEC lawyer David Rosenfeld, who lamely defended the decision to avoid going after the bankers involved, and it is instructive of whose interest he was serving that "[t]he lawyer for Bank of America periodically whispered what appeared to be suggestions to Mr. Rosenfeld," as a New York Times article put it. Whispering between government regulators and the Wall Street honchos ostensibly being regulated is what got us into this mess in the first place.

In the meantime, TARP watchdog Elizabeth Warren is repeatedly warning that the same toxic assets that triggered the meltdown are still on the banks' books. She's warning of the "looming commercial mortgage crisis."

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Founder of Whole Earth Catalog gives us an update

Stewart Brand was the founder of the Whole Earth Catalog. He's been doing a lot of thinking over the years, and gave an update at TED. He discussed the 1 Billion people living in squatter cities, soon to be 2 billion. There's a lot of desperation and a lot of crime, but it's not all bad news. There is a scale of efficiency about these cities. Talk about compactness! Go to the 6 minute mark of this video within a video and watch what happens immediately after the train goes by. Brand suggests that coming to the city gives people hope that they will be better off financially, which inexorably brings down the birth rate. He has nothing good to say about coal--it is the cause of the climate change we see. He has nothing bad to say about nuclear power; it is a "green" fuel. According to Brand, we can't get rid of coal fast enough. We are going to be facing massive climate change, faster than we can imagine. This will cause many millions of "climate refugees" and ongoing "resource wars" such as the one in Darfur.

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Clunker Dilemma

Back when our "new" car reached the age of 10, we considered buying something more up-to-date. But then the economy tanked and we postponed. I also am holding a rarely used "old" car that is 17 years old. It qualifies under the new Clunker Bill, wherein it is worth $4500 in trade in. I've put about $4,000 into it and driven it nearly 1,000 miles since I bought it for 2 grand in 2005. Not a very good deal. But it is only worth about $2,000 according to Kelly Blue Book. We obviously don't really need a second car, but it does seem like a good time to buy. So, do I save money by selling the old car off for maybe $1,500 and cut my losses? Or should I invest in a new "new" car that qualifies for the trade-in and relabel our "new" car as the spare?

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Geoffrey Miller’s “Spent”: an evolutionary psychology romp through marketing and consumerism

I've repeatedly written about Geoffrey Miller based on the many provocative ideas presented in his earlier book, The Mating Mind. (e.g., see my earlier post, "Killer High Heels"). A gifted and entertaining writer, Miller is also an evolutionary psychologist. His forte is hauling his scientific theories out into the real world in order to persuade us that we didn't really understand some of the things that seemed most familiar to us. In his new book, Spent, Miller asks why we continuously buy all that stuff that we don't really need? Miller's answer is twofold. Yes, human animals have been physically and psychologically honed over the eons this to crave certain types of things over others to further their chances at survival and reproduction. That's only half the answer, however. We must also consider "marketing," which is

The most important invention of the past two millennia because it is the only revolution that has ever succeeded in bringing real economic power to the people. . . . it is the power to make our means of production transform the natural world into a playground for human passions.

Is the modern version of marketing a good thing or a bad thing? The answer is yes.

On the upside it promises a golden age in which social institutions and markets are systematically organized on the basis of strong purple research to maximize human happiness. What science did for perception, marketing promises to do for production: it tests intuition and insight against empirical fact area market research uses mostly the same empirical tools as experimental psychology, but with larger research budgets, better-defined questions, more representative samples of people, and more social impact.

Here is a July 2009 interview of Geoffrey Miller by Geraldyne Doogue of the Australian Broadcast Network: Most of us are quite familiar with the downside of marketing. It encourages us to buy things we don't really need. But marketing doesn't merely clutter up our houses and garages; it corrupts our souls:

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