Credit Crisis: Episode II: The Empire Strikes

The $700 billion bailout sets the stage for the third episode, Revenge of the Market Makers.
Actually, episode I should have been called A Phantom Menace? Followed by Attack of the Fed, Revenge, and the rest fits as by that time we won't be in the same Universe anymore anyway:
Episode IV - A New Hope
Episode V - The Empire Strikes Back
Episode VI - Return of the Jedi

A Father Dies

21 years. You could even say more because it was 21 years since it was published. Gestational periods vary on a first born. So his baby grew up into a privileged college junior who probably took one of his own classes and showed up, feeling superior and special, clever and ironic, and pissed him off so much that when it graduated early he thought there was nothing more to do but hang himself.

Now, his child, fresh out of college and entering the workforce, can do nothing but slave away in the marketplace and die the same anonymous death that most of the masses face, never reaching the level of fame or renown as it's father. Sure, people talk about it, but talking about its birth and growth is not the same as appreciating its accomplishments, the things it was able to do on its own, the lives it transformed, single-handedly, without any help from Daddy.

It's sad, though, because its father is always in its shadow now-- and that becomes part of the narrative of its own life-- did it cause his death? The question is as unanswerable as why it was born.

DFW 2/21/62 - 9/12/08

The Economy

STATEMENT FROM SENATOR OBAMA ON THE SITUATION IN FINANCIAL MARKETS
September 15, 2008

This morning we woke up to some very serious and troubling news from Wall Street.

The situation with Lehman Brothers and other financial institutions is the latest in a wave of crises that are generating enormous uncertainty about the future of our financial markets. This turmoil is a major threat to our economy and its ability to create good-paying jobs and help working Americans pay their bills, save for their future, and make their mortgage payments.

The challenges facing our financial system today are more evidence that too many folks in Washington and on Wall Street weren’t minding the store. Eight years of policies that have shredded consumer protections, loosened oversight and regulation, and encouraged outsized bonuses to CEOs while ignoring middle-class Americans have brought us to the most serious financial crisis since the Great Depression.

I certainly don’t fault Senator McCain for these problems, but I do fault the economic philosophy he subscribes to. It’s a philosophy we’ve had for the last eight years – one that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else. It’s a philosophy that says even common-sense regulations are unnecessary and unwise, and one that says we should just stick our heads in the sand and ignore economic problems until they spiral into crises.

Well now, instead of prosperity trickling down, the pain has trickled up – from the struggles of hardworking Americans on Main Street to the largest firms of Wall Street.
This country can’t afford another four years of this failed philosophy. For years, I have consistently called for modernizing the rules of the road to suit a 21st century market – rules that would protect American investors and consumers. And I’ve called for policies that grow our economy and our middle-class together. That is the change I am calling for in this campaign, and that is the change I will bring as President.

STATEMENT BY JOHN MCCAIN ON THE FINANCIAL MARKETS
Monday, September 15, 2008

ARLINGTON, VA -- Today, U.S. Senator John McCain issued the following statement on the situation in the financial markets:

"The crisis in our financial markets has taken an enormous toll on our economy and the American people -- first the decline of our housing markets followed by the collapse of Bear Stearns, Fannie Mae, Freddie Mac and now Lehman Brothers. I am glad to see that the Federal Reserve and the Treasury Department have said no to using taxpayer money to bailout Lehman Brothers, a position I have spoken about throughout this campaign. We are carefully monitoring the financial markets, including the duress at Lehman Brothers that is the latest reminder of ineffective regulation and management. Efforts must also be focused on ensuring that the deposits of hardworking Americans are protected.

"It is essential for us to make sure that the U.S. remains the pre-eminent financial market of the world. This will be a highest priority of my Administration. In order to do this, major reform must be made in Washington and on Wall Street. We cannot tolerate a system that handicaps our markets and our banks and places at risk the savings of hard-working Americans and investors. The McCain-Palin Administration will replace the outdated and ineffective patchwork quilt of regulatory oversight in Washington and bring transparency and accountability to Wall Street. We will rebuild confidence in our markets and restore our leadership in the financial world."

McCain's bullshit stinks more.

No really, the sky is falling

This time it's for real. If you want to see someone squirm, watch the White House Briefing with Secretary Paulson from 1:45 PM on 9/15/2008 on cspan.org. I wouldn't be surprised if he resigns soon.

Separated at birth?

McCain's new VP candidate Alaskan Governor Sarah Palin and SNL alumna and 30 Rock Creator Tina Fey.

Conspiracy theory or controversy?

Is the press focusing on black leaders and black controversy?
In what may seem to be a conspiracy theory in advance of a historic presidential race which may lead to the first black president in American history, stories about black people in power and their actions and reactions to racial issues are creeping into the headlines at an alarming rate.

In a moment reminiscent of the Human Stain, where Coleman Silk, a black professor passing for white innocently calls two black students he has never seen in his class "spooks" and inadvertently causes his own downfall, a black county commissioner in Dallas took umbrage when a white commissioner used the term "black hole" to describe how traffic tickets seem to get sucked into the county's collections office and never come out. From the reaction, you would think he said they were being processed in CP time.

This controversy came on the heels of a Denver Jazz singer's interpretive reworking of the National Anthem, prompting many reporters to get Barack Obama's response (strangely, I don't remember what John McCain said about it, nor do I see him being turned to whenever an elderly person does something controversial, like Max Mosley's S&M German war fantasy). This was followed by Jesse Jackson's swift apology for his hot mic castration comment on Barack Obama, before it even had the chance to blow up into a full-fledged controversy, and Charles Rangel's recent impromptu sidewalk press conference on his four rent-controlled apartments. These garden-variety (is that a safe term? Please don't misinterpret) scandals wouldn't mean much if there weren't a black Democratic Presidential Candidate with overwhelming support and a promise for true political change running against an aging, forgetful, and frankly, losing candidate on the Republican side.

What worries me is that these talking points, intentional or not, may come back as disassociated doubts in voter's minds come election day in November, thanks to some new studies reported recently in the Times ("Your Brain Lies to You"). This source amnesia occurs when facts, true or not, stored in the hippocampus, are transferred into long-term memory. Even if a lie is qualified as such, it can become true in the few months it takes to be transferred from short-term memory to long-term.

The studies go on to show that in the long run, the old adage is true, people only hear what they want to hear (unless they are encouraged to keep an open mind-- but who does that?). It doesn't help that the focus these days continues to be about race rather than unity.

Sources:
1. Jazzy Anthem
2. Jesse's nuts
3. Black holes
4. Rangel-controlled apartments
5. Human Stain book and movie
6. Mosley sex scandal
7. What is a fact anyway? (Your Brain Lies to You)

Gadget Reporter Goof

This is why I love comments.

Barron's Tech Trader Daily sent a reporter to stand in line for the new iPhone G3 and posted this initial entry:

"Barron’s Magazine gadget reporter Jay Palmer tells me he’s 14th in line to buy Apple’s (AAPL) iPhone 3G at the Apple store in Bridgewater Commons mall in central New Jersey, with about 100 people behind him..."

Later, they write:

"Update: Jay is leaving the Apple store, fuming mad. He says that after waiting for three hours, he’s been told he’s ineligible for a phone because of the 10% corporate discount he enjoys on his AT&T plan through Dow Jones, part of News Corp. (NWS) and publisher of this blog. Well, if you have some kind of corporate plan, you may experience some issues with your purchase, I guess. More on this once the smoke stops coming out of Jay’s ears."

Here are some of the better comments:

With all do respect, Jay needs to understand that it has been stated on the Apple website and other sources that corporate/business customers need to go to an AT&T store and not to an Apple store.
Comment by John - July 11, 2008 at 9:24 am

Yup, Jay didn’t do his homework. He didn’t watch the AT&T video, or read the Apple or AT&T webpages on what to do to avoid exactly what happened to him.
Do reporters actually do any work?
Comment by mark - July 11, 2008 at 9:28 am

What a retard. Sounds like someone should have done their research before camping out like a loser in front a store to be one of the first to get an iPhone. If it was that big of a deal he would have purchased it without the discount. Schmuck.
Comment by Kris - July 11, 2008 at 9:28 am

And more:

iphone? wireless? internet?
I still use my rotary dial Mickey Mouse phone. The ringer is even adjustable.
Comment by smarty123 - July 11, 2008 at 10:47 am

Can the iphone be used to call up people or is it just a walkie talkie?
Comment by curious - July 11, 2008 at 10:50 am