Shocked and Persuaded


Separating Fact From Fiction

Convenient Thomas Jefferson Fidelity

I just received an amazingly convenient reading of Thomas Jefferson today and I would like for the record to address some of the convenient stuff. First I am listing my rebuttal and below you will find the quotes from the email. Enjoy!

To All
I just can’t let this lauding of some of TJ’s work go without parsing the other side of the story.
OK I understand the admiration for TJ as I have tons myself, but keep in mind he was a willing owner of slaves.
This idea that there are tons of folks out there not willing to work and looking for those that are to bail them out is nonsense. The people that received the biggest bail out weren’t the bottom half or bottom 99% it was the top 0.001Percenters. Look at AIG, Goldman, Citi, hedge funds galore. They got bailed out because much of what we feel is sacrosanct about capitalism failed that is undeniable. I for one would be happy to work full-time for way less than the folks at the Big Banksters get paid PER WEEK!! But because the financial industry collapsed under CDOs, CDSs, leverage, and real-estate BS I can’t get a job and I know tons of folks like me. This argument that this all comes down to Obama and it is all his fault is so much nonsense if you believe honestly that what just happened stems from the last 2 years IN ISOLATION your crazy and need heavy dose of rationality. I know Socialists, I know Marxists, I know liberals and conservatives. Obama is hardly a left-winger and would laugh at the thought of embracing socialism I am sure. Read the rest of this entry »

Too Big To Fail

Size is not the appropriate restriction,” said Senator Mark Warner, Democrat of Virginia and a member of the banking committee, who helped draft the regulatory bill. “The real question should be the level of inter-connectedness and the risk-taking we saw in the crisis of 2008.” Mr. Warner added, “The Dodd bill does provide ability for these banks to be broken up.”

So let me see if I have this straight Senator Warner your not concerned about the size of bangs with respect to Senator Kaufman and Senator Browns Safe Banking Act of 2010 – which would have limited the size of individual bank’s assets to 3% of GDP (6 Largest banks currently account for 63% of GDP) and the all important leverage factor to 16 to 1 (It had risen to 30 & 40 to 1 at places like Bear Sterns and Lehman) –  but you want to minimize inter-connectedness?

Well let me ask you a simple question: If you go to a family reunion and their are only 6 Warner’s – or whatever your mother’s maiden name was – at the shindig are you more or less likely to be “inter-connected” with those individuals than if that reunion instead included 100 of your nearest and dearest relatives?

See this is classic talking out of both sides of your mouth. As Stephen Roach likes to say you can’t have both decoupling and globalization at the same time. Pick your Poisson Senator Warner: Inter-connectedness or TBTF?