Via Daily Howler, Naomi Klein argues we should throw out Larry Summers:
The criticisms of President Obama's chief economic adviser are well known. He's too close to Wall Street. And he's a frightful bully, of both people and countries. Still, we're told we shouldn't care about such minor infractions. Why? Because Summers is brilliant, and the world needs his big brain.
And this brings us to a central and often overlooked cause of the global financial crisis: Brain Bubbles. This is the process wherein the intelligence of an inarguably intelligent person is inflated and valued beyond all reason, creating a dangerous accumulation of unhedged risk. Larry Summers is the biggest Brain Bubble we've got.
...And that's the problem with Larry. For all his appeals to absolute truths, he has been spectacularly wrong again and again. He was wrong about not regulating derivatives. Wrong when he helped kill Depression-era banking laws, turning banks into too-big-to-fail welfare monsters. And as he helps devise ever more complex tricks and spends ever more taxpayer dollars to keep the financial casino running, he remains wrong today.
She makes a pretty good point.
Via Calculated Risk, a really scary graph from the Oregon State government:
Oregon’s seasonally adjusted unemployment rate rose to 12.1 percent in March from 10.7 percent (as revised) in February. The state’s unemployment rate has risen rapidly and substantially over the past nine months, from a rate of 5.9 percent in June 2008. The U.S. seasonally adjusted unemployment rate rose to 8.5 percent in March, from 8.1 percent in February.
In March, Oregon’s seasonally adjusted nonfarm payroll employment declined by 14,000 jobs, following a drop of 22,800 (as revised) in February.
Industry Payroll Employment (Establishment Survey Data)
In March, five of Oregon’s seven largest private-sector industries recorded substantial seasonally adjusted job declines. The losses were widespread with trade, transportation and utilities down 3,600 jobs and four other major industries each down approximately 2,400 jobs. None of Oregon’s major industries gained a substantial number of Jobs in March.
(Low whistle.)
Can't wait for Illinois' report.
A couple of weeks ago I mentioned a Tribune article about how the U.S. lags the rest of the industrialized world in rail technology. The Economist this week continues the discussion:
There are reasons, however, to be cautious. First, the cost of any one project far exceeds the money available. California, which has the most advanced plan, would connect the state's biggest cities with trains running at more than 200mph. In November Californians approved $9.95 billion of bonds for the project. On top of this, officials hope to get $12 billion-16 billion from Washington. The plan is expected to cost $40 billion in all. But the stimulus contains only $8 billion for the whole country.
Second, many plans would make trains high-speed only in a relative sense. Proposals that are cheaper than California’s are also much slower. A plan for the Chicago-St Louis line, for example, would speed up trains from 79mph to only 110mph. Multiple road crossings require trains to move more slowly than in Europe. Adding to the problem, most passenger trains run on track owned by freight railways. Congestion makes service less reliable.
I'm actually sad to see $2 gasoline again, because I think a couple years of gas prices around $4 (or even $9, like in Europe) would finally give us a decent rail system. So the next time I fly to London I'll take solace in the Heathrow Express when I get there, and try to forget about the Blue Line that brought me to O'Hare. (Though, in fairness to the CTA, in the past two years they have cut the trip from the Loop to O'Hare from an hour and a quarter down to 40 minutes.)
Moments like these need to be savored. Via Talking Points Memo, the National Organization for Marriage, an anti-gay group, has announced a new initiative:
Now that activist legislators are legislating from their legislatures to legalize gay marriage, activists are turning up the volume on anti-gay marriage rhetoric.
There's just one, ahem, kink.
In an unintentional but hilarious nod to gay sex chatters everywhere, the National Organization for Marriage has dubbed their campaign "2 Million for Marriage". Or 2M4M.
This initiative comes as the group announces their new P.R. director, ormer U.S. Senator Larry Craig (R-MN).
Wow, so I'm out of touch for a few hours, and this happens:
- The Federal judge in the Ted Stevens corruption trial has ordered a criminal investigation of the prosecutors who tried the case. It may be surprising, but apparently a heavily-politicized Republican Justice Department may have deliberately thrown it. Hmm.
- The Canadian dude who stole a Cessna yesterday was apparently attempting suicide by fighter jet, but for some reason opted out of suicide by crashing into the ground, and so will now face Federal prosecution.
- As absentee ballots get counted in Minnesota's (longest-in-history) U.S. Senate race, Democrat Al Franken's lead has opened up to 312. Republican former Senator Norm Coleman has vowed to take the case all the way to the Supreme Court, where he hopes to get five more votes. His lawyer, by the way, is the same guy who got five extra votes for Dubya in 2000.
- And, oh yeah, Vermont legalized gay marriage, overriding the governor's veto to do so.
OK, I have about 90 minutes to enjoy (*kaff*) downtown Houston before going to my first Cubs game of the season. Then I'm going to an odd little bar that I discovered when I worked in this fine city back in 2001. In fact, my hotel room looks out over the dazzling, deodorant-stick-shaped building that the client I worked for owned before they went bankrupt spectacularly later in the year. Hmmmm...can't remember their name... I'll have to compare photos of the building to help me remember.
A pair of F-16 fighters escorted a Cessna 172 stolen from a Canadian flight school all the way from Michigan to Missouri this afternoon:
The plane was reported stolen at about 2:30 p.m. ET and was spotted flying erratically.
At about 5 p.m., the state capital building in Madison, Wis., was evacuated before the plane passed near the region. Police cars cordoned off the streets around the building and officers told people to move away from the area.
What I find amazing: How did the F-16s fly that slowly? I mean, the stall speed in a C172 is around 35 knots with full flaps; I think F-16s move that fast when parked.
And another thing, how amazing is it to find a Canadian that stupid? Or did some American dude sneak over the border and steal the plane?
I hope there's follow-up on this story. It seems improbable.
U.S. Attorney Pat Fitzgerald announced a new, 16-count indictment (pdf) of former Illinois Governor Rod Blagojevich today, with a new twist:
The RICO conspiracy count alleges that Blagojevich personally, the Office of the Governor of Illinois and Friends of Blagojevich were associated and, together, constituted the "Blagojevich Enterprise," whose primary purpose was to exercise and preserve power over Illinois government for the financial and political benefit of Blagojevich....
As part of the racketeering conspiracy, Blagojevich allegedly permitted [defendants Christopher] Kelly and [Tony] Rezko to exercise substantial influence over certain gubernatorial activities, as well as state boards and commissions, knowing that they would use this influence to enrich themselves and their associates. In return, Kelly and Rezko allegedly benefitted Blagojevich by generating millions of dollars in campaign contributions and providing financial benefits directly to Blagojevich and his family.
Look, I know Chicago tolerates a certain, baseline level of corruption, but it's usually like calling your alderman to get a pothole fixed in exchange for, you know, a couple-two-tree votes in April. But this? Yeah, even Chicagoans recoil at the brazenness. Let's all just hope Fitzgerald doesn't pull a Spitzer...
All of these are true, and all of these are appropriate for April Fool's day:
- Punzun Ltd., my software firm, proudly announced record earnings yesterday, earning a net profit of $0 on $0 of gross revenue and ($0) expenses (all figures in millions). It's the best quarter we've ever had, 11% better than our last record in 4th quarter 2004.
- Mark Morford, on GM's "recovery:" "Behold this weird new Camaro. It is, in sum, exactly the wrong car at exactly the wrong time with exactly the wrong attitude attached to exactly the wrong hopeless hope for a return to a rather crude automotive golden era that never really existed in the first place."
- The Justice Department is halting its prosecution against former U.S. Senator Stevens (R-AK), figuring he's suffered enough. This, you remember, comes after the conviction. Yes, it's April Fool's day, but no, this isn't a prank.
- Congress is set to repeal the ban on travel to Cuba. The loudest opposition came from U.S. Sen. Mel Martinez (R-FL), who said the measure would prop up the Castro regime, though one expects not for any longer than the Castro brothers' walkers would, given they're both in their 80s.
Finally, the creaking, old Weather Now demo project is getting an injection of mojo. I'll have more when I release it for real, but meanwhile you can check out the Beta version. (It's actually a ground-up re-write, even though it looks the same. Really. It's cool.)
Despite recently complaining about public transit in Chicago, I have to say I like ctabustracker.com, the Chicago Transit Authority's online bus tracker. It's a public-private venture with Google, and I think everyone benefits.
In fact, I'm writing this blog entry because I have 11 minutes before my bus comes, and it only takes me 4 minutes to shut down my laptop and get to the bus stop. This, I think, is the epitome of efficient labor markets.
All right, maybe not the epitome, but certainly a good example of them.
Via TPM Muckraker, the Boston Globe reports today that the Pension Benefit Guarantee Corporation moved from bonds into stocks just before the market fell last fall:
The agency refused to say how much of the new investment strategy has been implemented or how the fund has fared during the downturn. The agency would only say that its fund was down 6.5 percent - and all of its stock-related investments were down 23 percent - as of last Sept. 30, the end of its fiscal year. But that was before most of the recent stock market decline and just before the investment switch was scheduled to begin in earnest.
... Charles E.F. Ponzi Millard, the former agency director who implemented the strategy until the Bush administration departed on Jan. 20, dismissed such concerns. Millard, a former managing director of Lehman Brothers, said flatly that "the new investment policy is not riskier than the old one."
...The Pension Benefit Guaranty Corporation may be little-known to most Americans, but it serves as a lifeline for the 1.3 million people who receive retirement checks from it, and the 44 million others whose plans are backed by the agency.
The agency was set up in 1974 out of concern that workers who had pensions at financially troubled or bankrupt companies would lose their retirement funds. The agency operates by assessing premiums on the private pension plans that they insure. It insures up to $54,000 annually for individuals who retire at 65.
Josh Marshall pointed out two things: first, this is akin to an insurance company taking out hurricane policies and investing the premiums in beachfront property; and second, perhaps most relevant, Charles Millard was formerly the head of Lehmann Brothers.
Now imagine if Shrub had gotten his wish to privatize Social Security....