Simon Johnson finds tax-the-banks solution laughable

Barack Obama recently announced that the way to prevent future economic collapses is to put a new tax the big banks. For me, this was just one more in a long line of dreadful responses out of the White House. Who does he think is going to ultimately pay that tax? Further, how could a tax possibly keep big Wall Street banks from taking reckless gambles, and how is it that having a pool of tax money would mean that Washington DC wouldn't again jump in to "save the banks" with huge doses of tax dollars during the next cataclysmic crash? As long as there are banks that are "too big to fail," the federal government will jump in a most co-dependent of ways. I just read an FT.com article by economist Simon Johnson, who reassured me that my instincts were on target.

This week, the US Treasury pulled its latest rabbit out of the hat: a tax on the liabilities of large banks. The Obama administration argues that, by penalising large institutions with such taxes, we can limit their future risk-taking. This logic is deeply flawed. Why would higher funding costs mean you gamble less? If you know Tim Geithner is waiting to bail you out, you may gamble more heavily in order to pay the tax. The UK “reforms” look equally unpromising.
Johnson also spells out what IS needed:
First, we must sharply raise capital requirements at leveraged institutions, so shareholders rather than regulators play the leading role in making sure their money is used sensibly. This means tripling capital requirements so banks hold at least 20-25 per cent of assets in core capital. Second, we need to end the political need to bail out every institution that fails. This can be helped by putting strict limits on the size of institutions, and forcing our largest banks, including the likes of Goldman Sachs and Barclays, to become much smaller.
For reasons I truly don't understand, Obama is refusing to stand up and use his magnificent eloquence to make a case for meaningful financial reform. This has been a slow-motion train wreck for the past year, and he's about to allow the chance to create a CFPA slip away. He needs to join Elizabeth Warren in an almost constant assault on these highly monied amoral corporations (and their enablers in Congress) that it's time for real reform. As Warren (who IS out there fighting a good fight) says, "The problem is that a strong CFPA directly threatens the banks' ability to sell confusing, deceptive, fee-heavy financial products that generate huge profits, Warren said."

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Niece in Africa

I have a charming niece named Katja Boye. She and her family are currently traveling, working and studying in various parts of West Africa. Katja recently sent my family some of her digital images; I really enjoyed the many scenes and textures and colors of Africa. I also enjoyed the contrast of seeing images of my very light-skinned relatives (they are Norwegian, with their permanent home in Norway) mingling with the many dark-skinned Africans. katja-in-class I asked Katja if she would grant me permission to share some of her photos on this website and she gave the go-ahead. I don't actually know these specific locations within West Africa yet - - perhaps Katja will write a comment and provide some further information. Katja (she stands out in the photo to the right) is the daughter of Alida Jay Boye (my wife's sister), who you can see at the left side of the sand dune photo below. Alida is the co-author of a beautifully written and photographed book describing the people and the ancient manuscripts of Timbuktu, located in the African country of Mali. Yes, Timbuktu is a real place, it is surrounded by sand dunes, and here is an aerial shot of of the city. The title Alida's book is The Hidden Treasures of Timbuktu: Rediscovering Africa's Literary Culture. For many years, Alida has been "commuting" from Norway to Mali work on these manuscripts under the auspices of the United Nations. Here's more information about Alida's work. alida-and-familyI don't claim to be able to read any of these manuscripts, but I do enjoy their physical beauty, which you can see here. Those who can read the manuscripts recognize them to be a vast literary treasure created by Africans and collected by various people and institutions in Timbuktu, which for centuries served as a commercial crossroads in Africa. For more on Timbuktu and its famous manuscripts, consider this informative video. Katja's father Thorvaldt (who works in a diplomatic capacity for the Norwegian government regarding several west African countries) and her sister Ebba (a student) have also spent considerable time working and studying in various parts of Africa. As you can see, the members of this family are quite comfortable traveling far from their cold homeland of Norway to warm Africa. Click on the title to this post for the permalink version, which will allow you to see all 18 images. Katja - thanks for letting me share these photos!

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Few privacy concerns regarding photographs of the Haitian dead

The United States has fiercely resisted allowing photographs of dead U.S. soldiers, allegedly because of "privacy concerns" regarding the families of the deceased. In February, 2009, the military finally lifted an 18-year old ban on taking photos of only the coffins of deceased U.S. soldiers. In October, 2009, The U.S. military banned photos of troops killed in action in Afghanistan. Amy Goodman has argued (correctly, in my opinion), that the Middle Eastern wars currently being fought by the U.S. would quickly be ended if only the public were allowed to see the devastating effects of these wars on U.S. troops and on the civilian populations. How believable is the excuse given by the U.S. and by many members of the U.S. media for severely limiting photos of our dead soldiers? Is it really out of respect for the grieving families? Are "privacy" concerns the real the reason the media acquiesces in this policy of showing only a highly sterilized version of the ongoing wars in Iraq and Afghanistan? I don't believe so. Why are the U.S. media so willing to freely discuss the horror of the Haitian deaths and to show graphic photos of Haitian people who have been severely injured or killed in the Haitian Earthquakes? And see here and here and here. There doesn't seem to be much concern about the "privacy" of the Haitian victims and their families. It seems that the decision to show (or not show) photos of injured and dead people has much more to do with politics than with privacy.

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The craving for beer as the cause of civilization

According to archaeologist Patrick McGovern, the craving for beer might have caused people to decide to start farming. Humans turned from hunting and gathering to agriculture because of "our ancestors’ simple urge for alcoholic beverages." He points to evidence that humans were making beer as far back as 9,000 years ago.

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Avatar

Okay, so I contributed to the James Cameron Self Love Fund and saw AVATAR. Yesterday we went to the 3-D showing (no way I would spend money on the normal view, I can wait for the DVD the way I do with 99% of the movies I see anymore). I’ve had a day to think about it now and I’ve come to some conclusions, which are hardly profound, but I think worth saying. Let me say up front that I wasn’t bored. Visually, this is a stunning achievement. But that’s what everyone is saying. It is, in fact, the best 3-D I’ve ever seen. Often in the past the effect is minimal and the cost in headache high. This was neither. And it fully supported the visuals rather than masking mundane or poor image elements. Pandora, the planet involved, is magnificently realized. Cool stuff. Real gosh wow. The biology is problematic. You have a wide mix of lifeforms analogous to Earth. Some big lumbering critters like hippos or rhinoceri that also have features of a dinosaur, and some small things that are clearly wolves, and one big nasty cat-like thing that’s like a sabertooth tiger. It’s unclear if any of these creatures are mammalian, but it doesn’t matter much. Dinosaur analogs. Most of them apparently four-legged. But the “horses” the natives ride are six-legged, reminiscent of Edgar Rice Burroughs’ thoats. How does that play out in evolutionary terms? Well, maybe that’s a quibble. How then do you evolve humanoids out of this? Well, maybe that’s a quibble, too. This film is not about science on any level, regardless of the few bits of dialogue suggesting there are, you know, scientists, and that there is a studyable cause to any of this. Because the story, basically, is hackneyed, cynical, and cliched. [more . . . ]

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