Credit limits: A Simile

Consider having finally bought the sports car of your dreams, getting your bills paid, and being able to afford the interest on your credit cards, even paying them down. You drive down the interstate smoothly, and see signs of construction ahead. That would mean a slow-down, but nothing insurmountable. But then you are told to hand the keys over to another guy, a good old boy with whom you've never agreed. But now he has the roadster, and is seeing what it can do. But shortly, through no fault of his own, a rock is kicked up, and cracks the windshield. "Duck this," he yells, and steers that roadster off the pavement and heads out at right angles from the obvious way forward to bounce through the desert. Rocks, gulleys, and sand are not really where a roadster belongs. So this fellow runs up the credit cards to the limit seeing to the incessant need for repairs. And he increases the limit regularly, as he cannot pay the bills. Seeing that this keeps the car running, he wants to see how far he can make it jump. Finally, the car is damaged almost beyond repair. He spends and raises the limit several times, in a last ditch effort to get the car almost running. But then he is told to hand the keys over to another guy: A tall, dark, erudite type with training specifically in aspects of handling a roadster. The new guy tries to steer the car back toward smooth roads, but the car barely runs when he gets it. He spends up to the limit just to keep it running. Then he begs to extend the credit limit enough to make it fully road worthy. But the friends of his predecessor are determined to prevent any extra spending. "Too much!" they cry. They don't feel that the car really needs work. Perhaps it should heal itself. Now, that makes sense!

Continue ReadingCredit limits: A Simile

Insider Trading Writ Large

Imagine, if you will, a country in which banking regulations were stripped down so far that worthless paper again becomes a hot commodity. Now consider that this had (as it inevitably must) blown up and caused a crash in the lending market and equities market and thus the economy in general. Further note that a necessary result would be a rapid rise in the price of precious metals, notably gold. After a couple of years, that gold bubble would be ripe. People who had assets remaining when the junk bonds or sub-prime mortgages or whatever collapsed could have conservatively moved their money into gold, further depressing the equities market and inflating the price of gold. But, wait. Because of government investing, the market was recovering too fast! So fast that the wealthy were unable to swap their inflated gold for depressed stocks at the optimum time. What to do? Congress to the rescue! The wholly owned carriers of the banners of freedom and independence could be employed to create a palpably unnecessary crisis with a distinct deadline. Yes! This would quickly depress the markets and allow those holding too much bubble-gold to buy depressed stocks. Meanwhile, those elected to carry the load of screwing the middle class could also jump on the wagon and buy up stocks just before the deadline hits. Then the price of stocks returns to normal levels, and the gold bubble can be allowed to pop. I, for one, would like to see the trading histories of all those involved in the current crisis, and their friends and kin.

Continue ReadingInsider Trading Writ Large

On Palestinian statehood

Democracy Now! reports on recent developments regarding efforts to seek Palestinian statehood:

Israel, U.S. Denounce Palestinian Statehood Bid at United Nations The Obama administration and the Israeli government are continuing a vocal campaign to quash the Palestinian statehood bid at the United Nations. Palestinians are seeking a vote in September that would recognize an independent Palestinian state in the Occupied Territories. Speaking before the U.N. Security Council on Tuesday, Israel’s Ambassador to the United Nations Ron Prosor, as well deputy U.S. envoy Rosemary Dicarlo, offered matching positions. Ron Prosor: "First let me state clearly, unilateral actions will not bring peace to our region. Like a false idol, the Palestinian actions at the United Nations may be superficially attractive to some, yet they distract from the true path to peace." Rosemary Dicarlo: "Let there be no doubt, symbolic actions to isolate Israel at the United Nations in September will not create an independent Palestinian state. The United States will not support unilateral campaigns at the United Nations in September or any other time." Both the House and Senate have threatened to cut off aid if Palestinians continue with their statehood bid. Also addressing the Security Council, Palestinian envoy Riyad Mansour said Israel’s refusal to end the occupation remains the lone obstacle to peace. Riyad Mansour: We have fulfilled our responsibilities and are ready to govern ourselves. The only remaining obstacle is Israel’s 44-year military occupation. [More . . . ]

Continue ReadingOn Palestinian statehood

Free Speech Above All

Johann Hari on Religious Censorship This video is an impassioned declaration on the importance of not allowing "sensitivities" and an unwillingness to offend become a force against free speech.  It is also, underneath, an argument for rejecting the pseuodthink of irrational defenses of absurdity.

Continue ReadingFree Speech Above All