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Links 7/12/12

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The Old Primates’ Club: Even Male Monkeys Ride Their Fathers’ Coattails to Success Science Daily (furzy mouse)

Couple arrested for dancing while waiting for the train in New York Your Jewish News (Carol B)

Exclusive Leaked Documents: American Dietetic Association is Intentionally Using State Legislatures to Block Alternative Nutrition Providers and Restrict Free Speech Forbes. A bit of a Daily Mail style headline…

National Reconnaissance Office accused of illegally collecting personal data McClatchy (Paul Tioxon)

CHANOS: China’s Credit Situation Is Worse Than Greece And Spain Clusterstock

China’s shadow banking surfaces MacroBusiness

Olympic security: army reinforcements called in to fill G4S shortfall Guardian (Lee S)

Germany Investigates Morgan Stanley Executive Associated Press

Liborfest!

Exclusive: Push For Libor Settlement Sky News (Scott)

Corporations Dodge LIBOR Scandal Bullet CFO

Libor Scandal May Have Broken Key Market-Stress Measure WSJ Economics Blog. Where have these guys been? Lambert pointed this out as soon as the scandal broke.

LIBOR Ain’t Nothing But an Acronym: We Must Abolish the Finance Capitalist Class Black Agenda Report (nathan)

Number of women running for US Congress at record level Guardian (Lee S)

Manufactured quotes Columbia Journalism Review. A sighting of evil NAM, which has been doing anti worker propaganda for over 100 years!

USA Presbyterian Church Takes Step Toward Divestment From For-Profit Health Insurance Companies OEN (Carol B)

Insurers Pay Big Markups as Doctors Dispense Drugs New York Times

FOMC Minutes Not a Smoking Gun Tim Duy

The Financialization of Accumulation Monthly Review (Carol B)

Banks face swaps threat after cut ratings Financial Times

U.S. home foreclosure filings rise AFP

Many Wall Street executives say wrongdoing is necessary: survey Reuters. Aieee, missed including this yesterday…

Shake-Up at New York Fed Is Said to Cloud View of JPMorgan’s Risk New York Times

New law gives US companies a break on pensions Associated Press (Carol B)

* * *

lambert here:

D – 58 and counting*

Dans ce pays-ci, il est bon de tuer de temps en temps un amiral pour encourager les autres. — Voltair

Occupy. New media: “Twitter was rather more important as a way of conveying news out of the region and towards an international audience, than as a means of communication within or across the affected countries.”

CA. Fracking: “‘The [state division of oil, gas and geothermal resources] is unable to identify where and how often hydraulic fracturing occurs within the state. The Division has not yet developed regulations to address this activity [fracking].” … Fracking: “NBC Bay Area’s investigative unit’s Stephen Stock asked [Renee Sharp of the Oakland Environmental Working Group] if fracking is happening on people’s private land without their knowledge. She answered, ‘Correct. Shocking, but true.’”

FL. Corruption, Palm Beach Post reporter Stacey Singer: “What surprised me most is the CDC’s role in allowing the [TB] cover-up to happen. They were not willing to inform the public if the local health department decided it was not the right thing to do.” … Corruption: “In the filing, [Carletha] Cole contends that she witnessed [FL Lt. Gov. Jennifer] Carroll and a top aide, Beatriz Ramos, in a ‘compromising position’ inside Carroll’s office, that Carroll’s chief of staff secretly recorded conversations routinely at the direction of those working for Gov. Rick Scott, and that the trash can at Cole’s desk might have been deliberately set ablaze following an argument between her and Ramos.”

GA. Transparency: “Judges across Georgia are closing courtrooms to the public, citing reasons like lack of space and security concerns. But it’s against the law to do so and now some judges are getting slapped with lawsuits of their own.”

IA. Union busting: “AFSCME IA Council 61 filed a prohibited practice complaint yesterday with the IA Public Employment Relations Board, charging that Gov Terry Branstad disregarded IA’s collective bargaining law when he signed an executive order allowing state employees to contribute to their health insurance premiums.” Smart maneuver by Branstad. Vicious, but smart. … Water: “Officials from two state agencies closed the Clarion Inn, which houses the Wasserbahn [Water Park] and Seven Villages Restaurant, on Friday after a water test reported to the IA Department of Natural Resources showed E. coli bacteria in the well that supplies the hotel.”

IL. Hmmm: “A statement from Congressman Jesse Jackson Jr.’s office says the Chicago Democrat is receiving ‘intensive medical treatment’ for a ‘mood disorder.’”

KY. Mice roar: “Trigg County will join at least 14 other counties in a class-action lawsuit against Delaware-based Mortgage Electronic Registration System (MERS) Corporation.”

LA. Corruption: “The decisions by Orleans Parish Sheriff Marlin Gusman and Municipal Court Judge Paul Sens to hire each other’s wife as a consultant came under sharp criticism.”

ME. Marriage: “Mainers support legalizing same-sex marriage, 57 percent to 35 percent, according to a statewide poll commissioned by the Portland Press Herald.” … Angus King (I): “Fifty-five percent of those polled said they support King, more than double the support for the closest candidate, R Charlie Summers. Twenty-seven percent of respondents said they favor Summers and 7 percent said they favor D Cynthia Dill.” D institutional collapse.

MI. Tar sands: “The government’s investigation raises serious questions about whether corrosive tar sands can be safely moved on the U.S. pipeline system.” Lovely picture of busted pipeline!

MN. Foreclosure: “The foreclosure business is impersonal. Gretsch recalled talking to the person who served her with an eviction notice. ‘I asked the server why he even does this and he says, ‘well, I have to make my money and last week I delivered one to my sister.’” … Voting: “The MI Supreme Court will decide whether a repeal of MI’s controversial emergency manager law should appear on the Nov. 6 election ballot … [The point at issue: whether the referendum petition] complied with a state requirement that the petition language appear in 14-point type.”

NY. Annals of weaseldom: “Attorney General Eric Schneiderman sued 16 head shops across the state for fraudulently marketing synthetic drugs like bath salts.” While banksters walk free. … The undercover transcripts at the head shops are a hoot: “It’s like 300 minutes of feeling really really really really really really really really really really really really really good … and then it just stops like *that* (snapping fingers).” So, quite naturally it’s not legal.

NC. Fracking: “A veteran [D] lawmaker in North Carolina says she pushed the wrong button late Monday night in a marathon legislative session and accidentally opened up the state to fracking.” Majority Rs would not suspend the rules for a do-over.

OH. Privatization: “Two private security guards have been charged with murder in a man’s fatal shooting at a southwest Ohio apartment complex.”

PA. Zeitgeist: “I’ve been ruminating a lot lately, I guess because I’m scared and angry. We all know that ‘if onlys’ are not only lacking in nutrition, they’re bad for the soul. But there we are.” One of the great Philly bloggers. … Zeitgeist: “Nutter testified for about 90 minutes Tuesday, defending the ban [on feeding the homeless in city parks] as part of his plan to end homelessness in Philadelphia.” Oh, OK. These programs have been running for years with nary a problem, and they fed a lot of people. Matthew 25:44. … Fracking, study: “We present geochemical evidence from northeastern PA showing that pathways, unrelated to recent drilling activities, exist in some locations between deep underlying formations and shallow drinking water aquifers.” … Fracking: “[Critics] contend [wealthy subuurban] Bucks County legislators carved out a special status for their home turf to pacify angry constituents in case drillers come calling with their rigs. This while other locales across the state with real drilling concerns have to abide by Pennsylvania’s new law, known as Act 13, which impose fees on drillers in the gas-rich Marcellus Shale but takes away local zoning controls over drilling.”

TX. Mass incarceration: “A total of four offenders residing in TX prisons died of the heat last summer.” … Water: “TX is sitting on a massive amount of “brackish” water. Too salty to drink, but far less salty than ocean water. A lot of it is just sitting there, below our freshwater aquifers. ” So, desalination.

VA. UVA, Sullivan’s first communication: “The national prominence of Darden and Law indicates the success we can achieve when we are allowed to compete in the market without subsidy; whether this successful experiment could be extended to other fields is a matter of politics as much as economics.” Translation: “When we” are no longer a public university.

WA. The tribes: “Colville Tribal Chairman Michael Finley and Councilman Brian Nissan are facing recall petitions due to a $1 billion settlement they (and 40 American Indian tribes) negotiated with the Bureau of Indian Affairs.”

WI. Recall: “This is the fourth time in US history that a recall has resulted in control of a chamber of the state legislature switching from one party to the other.” … Voting: “Sometime after final testing of Waukesha County’s election software – but before the April election – County Clerk Kathy Nickolaus mysteriously changed something in her office’s computer programming …Only Nickolaus knows what she did. Whatever she did, it caused a breakdown in reporting election results that will cost county taxpayers $256,300 to fix.” … Home rule: “The Wisconsin Supreme Court dealt a blow to environmentalists concerned about water pollution from huge livestock farms Wednesday, when it said communities couldn’t set stricter standards than the state.” It’s like we all need a “Home Rule” party…

Grand Bargain™-brand Catfood watch. Pete Domenici, Jim Jones, Dan Glickman: “We cannot wait until the lame duck session … [W]e urge lawmakers to quickly replace the looming sequester with a strong, binding procedure that forces action to reduce deficits in the next Congress.” Which is insane. Any law Congress passes it can modify or repeal; see Article I, Section 1.

Media critique. “Election coverage on TV lacks substance.” Shocker! With handy chart.

Outside baseball. Corruption: “In 2001, Transparency International’s Corruption Perceptions Index ranked the United States as the 16th least-corrupt country. By last year, the nation had fallen to 24th place.” That high? … Law enforcement: “The Justice Department and the FBI will review thousands of criminal convictions from more than a decade ago for possibly flawed analysis of hair sample evidence.” … Marriage: “Arizona officials have raised a significant new question for the [Supreme Court] Justices [next term]: if a state bans gay marriage, can it then take away unwed same-sex couples’ access to state benefits that go only to those who can marry?” … Zeitgeist: ” In the movies, a vampire can’t enter a home without first being invited. Ds must not be invited into our homes any longer either because they are just as dangerous to life and limb as their Republican counterparts. ”

Greens. “On the day before the Green Party’s presidential nominating convention, presidential candidate Jill Stein revealed her running mate to CBS News exclusively: homeless activist Cheri Honkala.” Nice work on CBS coverage.

Romney. Money: “Mitt Romney has spent most of his adult life raising money – bringing in funds for the Mormon church, attracting investors to Bain Capital, convincing those with deep pockets to help him rescue the Salt Lake City Winter Olympics.” … NAACP flap: “[ROMNEY:] Instead, it’s worse for African-Americans in almost every way. The unemployment rate, the duration of unemployment, average income and median family wealth are all worse for the black community.” True; see the handy chart. There’s a good deal of tribalist pearl-clutching about the booing, but given that the NAACP is at the heart of what Bruce Dixon calls the black misleadership class, I can’t get worked up about it. … [T]here’s a new meme going around the Romney looks “weird,” and the press is playing along in its photo selection. … The discourse, Jill Stein: “Right now we have a dialogue that is horribly misguided, a dialogue that is not only boring but attention repelling, to use the words of the New York Times to describe the Romney campaign.” Some days I feel the only real story of the Romney campaign is whether all that money will put Obama in bed with a dead woman or a live boy. Not that I think either is impossible, but still.

Obama. Taxes, Obama teebee ad: “[A]sk the wealthy to pay a little more.” “A little.” Most important elecction EVAH!!! Taxes do not fund spending, per MMT. However, redistribution through progressive taxation is good because it prevents the outright purchase of government, and the entrenchment of aristocracies. … Self-hagiography: “Michelle Obama turns back to her roots to contrast herself with the always-comfortable Romneys: She grew up in a “little-bitty apartment” on Chicago’s South Side that her mother still lives in…” Still not mentioning her father was a precinct captain for the Daley machine, I see.

* 58 days ’til the Democratic National Convention ends with a huge honkin’ vat of bath salts on the floor of the Bank of America Stadium, Charlotte, NC. In 58 AD the Apostle Paul wrote his Epistle to the Romans.

* * *

Antidote du jour. They look like they need to go on a diet:

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38 comments

  1. russell1200

    In NC, a lot of Democrats are running away from Obama, and the lame duck Governor. Fracking was the closest call, but they did manage to overide just about all the major vetos. Oil/Gas exploration is a key split between the old-guard Democrats who were very pro-business and the narrowing base of Democrats that seem to be following the National Democrat Party opinions now. The Democrats stayed in charge forever in NC by keeping the old broader base Roosevelt-Truman style coalition somewhat together: looks like it is falling apart.

    1. ambrit

      Dear skippy;
      Wonderful! Just post those two with the original in order of creation and you have a clear narrative progression. What would be the fourth iteration? An all singing all dancing National Guard ad? “We’re singing in the rain!” (Cut to Guardsmen and women sandbagging a levee during a storm.) “I’m singing in the rain!” (Cut to firefight in rainstorm.) “What a glorious feeling, I’m happy again!” (Cut to happy smiling troops, dirty and bloodied standing in front of smouldering vaguely Middle Eastern skyline.)
      Kudos for pointing out the continuous evolution of culture.

  2. financial matters

    I think interest rates need to go up to help us get to a healthier more realistic economy but this sure seems like a convoluted way of doing it. But at least it starts to realize the inherent weakness of all the credit default swaps…

    Banks face swaps threat after cut ratings Financial Times

    “”Andrew South of S&P says the market is getting used “to a new environment in which counterparties on swaps have lower ratings [than before] and the structured finance transactions they are contained within are not rated AAA”. The change in the rating environment, he says, could even lead to a switch in the way structured finance deals are constructed.”"

    “”He says regulatory pressures such as the European Commission crisis management directive, which will see the burden of a failed bank shift from taxpayers to senior unsecured bondholders, will lead rating agencies to further downgrade banks.

    In the long-run “funding costs are only going to go in one direction,” says Mr Henriques, and that’s up.”"

  3. financial matters

    This article presents more glaring insights into the banks control over their regulators and generated a few good comments…

    Shake-Up at New York Fed Is Said to Cloud View of JPMorgan’s Risk New York Times

    Stephen PerrySomers,ny
    FLAG
    What’s really going on at many of the big banks, particularly JP Morgan, is that secrecy and obfuscation are the order of their business operations. If the general public, and regulators in particular, knew what kind of extremely risky investing practices were going on there might be more outrage. The problem is that the banks at the hands of their high level executives, for all practical purposes, own the government that is supposed to be appointing regulators. This was best shown to be the case when Senator Jim DeMint praised Jamie Dimon, who was about to testify about JPM’s multibillion dollar loss, a few short months ago. Even before Mr. Dimon spoke his first few words Mr. DeMint spoke fawningly about what a wonderful Job Mr. Dimon was doing and what a wonderful asset Mr. Dimon was to the world of banking and investment. To see and hear Mr. DeMint go on and on in this fashion was embarrassing to say the least. Perhaps Jim DeMint was actually interviewing for a future position at JPM? Once again, the banks and their execs will get a slap on the wrist at best, and any major losses will be picked up by the taxpayers in some way or other.

    July 12, 2012 at 5:23 a.m.

    Seamus Finn OMIWAshington DC
    FLAG
    Unfortunately this story would never have been written if the consequences of the near 2008 meltdown had not destroyed trillions and the dreams and hopes of millions of people. The pleading of major bank CEO’s to get back to normal and the complicity of their political and legislative friends in starving regulatory agencies and obstructing the work of their officials is discouraging. It can only be hoped that the investigations that are underway on both sides of the Atlantic will embolden those committed to reform of the sector, address the issue of systemically important financial institutions and respond to the cries of millions for fair, stable, transparent and accountable routine banking services.
    Hopefully also reporters and the media wil focus on the real issues and investigations that are going on and not be distracted by the super star status that has been granted to the high priests on Wall Street and specifically the banking sector. We all need their professional best if this system is to be reformed and rehabilitated.

    July 12, 2012 at 5:13 a.m

  4. taunger

    i’m studying for the bar . . . this reads like one of the res ipsa fact patterns:

    Sometime after final testing of Waukesha County’s election software – but before the April election – County Clerk Kathy Nickolaus mysteriously changed something in her office’s computer programming …Only Nickolaus knows what she did. Whatever she did, it caused a breakdown in reporting election results that will cost county taxpayers $256,300 to fix.”

    will Nickolaus, just like all other bar prep fact pattern folks get stuck with liability? Somebody call Kaplan, its our only hope . . .

  5. Severe

    “Couple arrested for dancing while waiting for the train in New York ”

    Sometimes I think I’ve seen it all, but outrageous stories like this makes me believe I may not have seen nothing yet.

  6. LeonovaBalletRusse

    Lambert, re Green Party link: Cheri Honkala as Jill Stein’s VP — I Cheri a Native American, or with strong Native American heritage? Maybe Cherokee?

    Is their Green Party registered in the State of Georgia? Will you please bring us up to date on States where Progressives can vote for Jill and Cheri, just as a courtesy, since you’ve established “Lambert State-by-State Central at NC?

    Many thanks. Oh, and readers might be interested in the radical research of Donald N. Yates (Panther-Yates) and others, which may well turn the tide:

    “OLD WORLD ROOTS OF THE CHEROKEE: How DNA, Ancient Alphabets and Religion Explain th Origins of America’s Largest Indian Nation” by Donald N. Yates and Richard Mack Bettis (Aug 30, 2012);

    “WHEN SCOTLAND WAS JEWISH: DNA Evidence, Archeology, analysis of Migrations, and Public and Family Records show Twelfth Century Semitic Roots” by Elizabeth Caldwell Hirschman and Donald N. Yates (Jul 3, 2007);

    “RED MAN’S ORIGIN: The Legendary Story of His Rise and Fall, His Victories and Defeats and the Prophecy of His Future” by Donald N. Panther-Yates, William Cornsilk Eubanks and George Sahkiyah Sanders (Dec 1, 2011);

    Many Acadians in America, from Maine to Louisiana, descend from the Native American MICMAC (from orig. “niknaq”) of the “Canadian” ALGONQUIN Tribe DNA conjoined with the DNA of the Merovingian Franks who settled “Acadie.”

    Is it possible that Jill and Cheri can UNITE and LEAD the descendants of Colonial “Americans,” including Colonial American “Israelites;” of Colonial American “Africans”/Afro-Caribbeans/Free People of Color;” of Colonial “Free Blacks” who found a home among the Native American Tribes; of Native Americans still living on “reservations” and elsewhere; of Acadians in the diaspora; of French Hugenots in the diaspora; of “assimilated Jews” and “culturally assimilated Jews” in the diaspora; and DEMONSTRATE the possibility that “We Americans”–”We the Others”–can govern ourselves within JILL STEIN’S New Economic Frame for peaceful, prosperous, JUST, ETHICAL, local networked co-operation, in which MONARCHS have NO PLACE?

    Can JILL STEIN and CHERI HONKALA lead us AWAY from bondage to ALL ARCHAIC SYSTEMS of Global .01% Victorian Holy Roman Reich DESPOTISM and its .99% AGENTS for 1% EXTRACTION CAPITALISM in the U.S.A. — thence the world? WILL We the Others speak with ONE Green Voice in America, to BANISH “LEVIATHAN” — .01% Royal Reich Rule — from our verdant soil?

    Mitt Romney seeks to swing the election to his favor by COURTING the “Radical-Right Republican” AMERICAN vote in the State of Israel, while Barack Obama courts the feeble “liberal” vote of AIPAC for the State of Israel.

    CAN JILL STEIN STAND on her own two feet? WILL JILL STEIN DARE to stand as a FULLY LOYAL AMERICAN Leader of “We the Others” in America, FREEING US from DESPOTIC FOREIGN ENTANGLEMENTS with the CORRUPT Victorian Empire and its City that rule the State of Israel, making it a “FOREIGN POWER” SQUARED? Is the IMPERIAL EMPIRE OF FINANCE the Boss of Us? In short, WILL Jill Stein DARE to be SAMUEL?

    Let the Wheel of Fortune turn to Justice for “We the Others”–become “We the 99%”–right now. WILL Jill Stein and Cheri Honkala lead the People out?

    “Micmac fille de Merovee”

  7. jsmith

    US, France seek to quash investigation into Arafat’s death.

    http://www.commondreams.org/headline/2012/07/12-1

    Here’s the best line.

    “A Palestinian official, who remained anonymous, told Chinese news agency Xinhua that the US and others have pressured Palestinian leadership to put an end to the inquiry because it would compromise the Middle East peace process.”

    Peace process, eh?

    If you work for the U.S. Government and use the term “peace process” to describe American involvement in the Middle East, just kill yourself now.

    Do it.

    1. Walter Wit Man

      They already are. More U.S. troops commit suicide than die in combat.

      Of course they see the consequences of spreading peace up close . . . unlike the Peace Laureate that sent them there.

  8. LeonovaBalletRusse

    Lambert, see: “Is Haiti’s Reconstruction Path Paved in Gold?” on The Real News Network — http://www.trnn.com — re “Canadian&American” Extraction Capitalist Vultures the .99% for the .01% Reich descending like a “Diabolus ex Machina” to enact the tragedy of “the resource curse” with the face of Newmont Mining. Already the “Leader” has been corrupted in IMF “Economic Hit Man” style for the implementation of The Shock Doctrine in Haiti by worshippers of the golden calf.

    Will JUSTICE come swiftly to Haiti’s people via the Open Society Foundations any time soon, to show the New Real Economy in action in real life? Will the OSF defy the face of 1% Global Despotism in Haiti? Isn’t a Pre-eminent Man of Justice the head of the Open Society Institute in New York City right now?

    Now is the time for PROOF of declared conviction to bring a JUST WORLD.

  9. LeonovaBalletRusse

    Lambert, did Michelle live in that “itty bitty apartment” while her father humped for Boss Daley?

  10. MyLessThanPrimeBeef

    Eric Schneiderman and head shops

    Fooled once by a false savior, shame on him or her

    Fooled a second time by another false savior, shame on you.

  11. MyLessThanPrimeBeef

    So it’s kingship in the world of monkeys. No democracy.

    And in heaven, it’s a kingdom as well.

    Maybe we should be a kingdom… as long as there is taxation with representation – that seemed to be the problem with the first attempt. It’s also a good practice. Good people will end up in a kingdom, not a republic, up above.

  12. MyLessThanPrimeBeef

    China’s credit situation.

    I say they go ahead and print money for tearing down the symbol of division – the Great Teeth, ( the lunar view of the crenellation)- dividing the Central Plain from inner Mongolia/Manchuria.

    They can tear it down, rebuild it, tear it down, etc for as long as it takes to rebalance.

  13. Jill

    NRO=Scientology. Get the information to insure people won’t go public when they see wrongdoing by the agency/church. People are silenced by blackmail. This is why it’s done. Not for national security but for the ability of govt. agencies to commit crimes without those crimes being brought to light. No whistleblowers allowed in this regime!

    I admire those who speak out despite the cost. That is courageous. We need more people to do so.

  14. Up the Ante

    We will use the Justice Dept.’s handling of Anonymous to deal with the ‘criminal’ quoted below,

    “In the words of a knowledgeable treasury expert who spoke on condition of anonymity, “We have struggled to find who the net losers are, ”

    Struggled, is it ?

    “Eversheds says, “It will be necessary to await the outcome of the further ongoing investigations ..”

    Seriously, Eversheds, shouldn’t you ALREADY Know ??

    Eversheds currently has for sale “Am I a victim? ” and ‘Banks shot themselves in the foot for no gain’ ?

    Some banks and hedge funds lost, and no banks and hedges won, is it, Eversheds ??

    http://www3.cfo.com/article/2012/7/credit_libor-scandal-barclays-british-bankers-association-pension-funds-rpi?currpage=1

  15. Up the Ante

    “Libor Scandal May Have Broken Key Market-Stress Measure WSJ Economics Blog. Where have these guys been? Lambert pointed this out as soon as the scandal broke. ”

    Come, come, they’re practicing their silhouette-identities, we mustn’t judge them for that, shouldst we ?

    /sarc

    1. LeonovaBalletRusse

      Up, well sure ’cause “everybody’s doing it.”

      This is William K. Black’s “Gresham dynamic” at work.

  16. Doug Terpstra

    Sky News on LieMore settlement. That didn’t take long at all:

    “Leading investors in large international banks are pushing for regulators to agree [to] an industry-wide settlement in the Libor-fixing scandal amid concerns that a drip-feed of fines could prompt a Barclays-style purge of top executives … a repetition of events at Barclays could leave some of the world’s biggest banks rudderless.”

    And … “A drip-feed of Libor-related fines would be hugely damaging to investors with large exposures to international banks.”

    Yes, we need a steady hand at the helm in these times of crisis and change, not to mention protection from liability, and we need to get this behind us so the investment climate and the markets are not damaged.

    Anyway, the template is already in place from the fraudclosure settlement. Obama can establish a LieMore fraud task force, appoint a prominent, well-compensated investigator, and then hold press con sometime in October to announce a national settlement and blanket amnesty. This will involve the usual fines of course, much of which will come from the taxpayer, but then we can get this little rough patch behind us. Let’s lean forward, not backward.

    1. Synopticist

      We’ve learnt our lessons from the LIBOR episode, and it’s time to move on. Banking has already lost some great talents, and the economy will suffer terribly if this unfair witch hunt continues.

      Anyone whi dis-agrees is a f*cking commie.

    2. Synopticist

      “A drip-feed of Libor-related fines would be hugely damaging to investors with large exposures to international banks.”

      Yeah, those canny investors. I mean, who could have imagined that shares in the the global mega-banks might not be such a smart place to put your money?

      Protecting poor investors and pensioners must be our priority right now,along with cutting taxes on Mitt Romney’s friends.

  17. p78

    http://ftalphaville.ft.com/blog/2012/07/12/1080091/china-as-a-post-capital-economy/

    “China as a post-capital economy
    We’re talking gaping spare capacity, a real-estate bubble, an import slowdown, short-term dollar shortage, horrible manufacturing stats, commodities over-exposure and (…) how nobody in China earns their cost of capital.
    But what if… none of that matters?

    …how economies reduce debt-to-GDP ratios:
    “A steady dosage of financial repression that is accompanied by an equally steady dosage of inflation”.

    ‘Financial Repression’, means limits on interest rates and the direction of lending to the government by a captive domestic audience…
    …the Chinese are comfortable with low capital returns if the pay-off is a stronger economy.

    In the developed world, the economy is generally seen through the prism of capital; the stronger the outcome for capital, traditionally, the stronger the perception of the entire economy. Falling or negative returns on capital are a sure sign of economic weakness…

    In China, capital is just one piece on the board where the aim is to raise living standards of all households. As a result, capital is used and treated remarkably differently, often to the consternation of external observers and investors. It is not a matter of aggregating up the investment decisions of individual firms and households to predict macro-economic outcomes, as was done by some economists prior to the sub-prime crisis in the US. The government’s role is paramount.

    By not using capital returns as a scorecard for economic progress, China improves the allocation of capital in its economy and raises living standards. Effectively, China takes a broader perspective to the value of capital in an economy. Such an approach seems fraught with danger but there’s more protection than global markets seem to understand.

    ..the government has the ability to fund losses on individual capital projects through the accumulated financial reserves… The government, as the largest capital allocator, can both manage losses from individual projects and capture the benefits of loss-making projects through its taxcollecting authorities.”

  18. JTFaraday

    “Taxes do not fund spending, per MMT. However, redistribution through progressive taxation is good because it prevents the outright purchase of government, and the entrenchment of aristocracies.”

    Cleaned up finance would go a long way too. And with less mess to clean up too–or, rather, with less mess left to fester.

  19. frase lindas

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