James K. Galbraith – A Bailout We Don't Need

Is this bailout still necessary?

The point of the bailout is to buy assets that are illiquid but not worthless. But regular banks hold assets like that all the time. They're called "loans."

With banks, runs occur only when depositors panic, because they fear the loan book is bad. Deposit insurance takes care of that. So why not eliminate the pointless $100,000 cap on federal deposit insurance and go take inventory? If a bank is solvent, money market funds would flow in, eliminating the need to insure those separately. If it isn't, the FDIC has the bridge bank facility to take care of that.

James K. Galbraith – A Bailout We Don’t Need – washingtonpost.com.

Makes a lot more sense to me than “Give me 700b today or I’ll blow up your economy” line fed by the same administration that gave you “give us the unfettered right to wage war or you’ll be eaten alive by mushroom clouds”.

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    Tamil MPs play hardball for LTTE

    Members of Parliament from Tamil Nadu will have to resign if the Centre does not come forward to ensure a ceasefire in Sri Lanka within two weeks, according to a resolution adopted at an all-party meet chaired by Chief Minister M. Karunanidhi on Tuesday.

    Asked if this meant Ministers in the Union Cabinet and MPs in the Rajya Sabha would resign in the event of the ceasefire not happening in two weeks, Mr. Karunanidhi told The Hindu that he meant that all MPs would tender their resignation. “Ministers are MPs first, are they not?” he asked.

    via The Hindu : Front Page : T.N. MPs to quit if Centre fails to ensure ceasefire

    As Malini Parthasarathy points out in her editorial, this sudden increase in rhetoric coming from the DMK and other Tamil parties seems to coincide with an apparent impending military breakthrough by the Sri Lankan army. Why apparent? Because the only sources of news are the SL army and the LTTE, and neither, are, shall we say, neutral! Overt support for the LTTE has been absent since the late ’80s and especially since Rajiv Gandhi’s assassination, so the timing most definitely reeks of LTTE’s covert influence on the Tamil parties in Tamil Nadu. This would be a good time for the LTTE to get some breathing room and regroup.

    The Central government would become a minority if this threat was carried out. Which is why the Sri Lankan envoy was summoned and India’s “concerns” were addressed, whatever that means.

    I think that the LTTE is a band of ruthless terrorists who should disappear from the face of this Earth. They have systematically eradicated moderate Tamils in their bid to be the only Tamil voice. Additionally, they have killed many civilians, Tamil, Sinhalese and Indian over the course of their bloody insurgency. The Sri Lankan army and polity, of course, are guilty of mass genocide and human rights themselves. But, they have the power of the nation state behind them and smell a final victory. I don’t seem them stopping now.

    How is this going to end? Not very well for the central government, who will lose quite a bit of support after only recently surviving a confidence vote. Not too well for the millions of civilians caught in the conflict, who will bear the brunt of increasing desperation on both sides of the war. Will the LTTE ask for a negotiated ceasefire if things get too hot for them? Probably. Will the Tamils of Northern Sri Lanka ever get the autonomy they so deserve? Not if the Sri Lankan government sees itself as being in a position of strength. So, why was this war fought? I don’t know. But, I don’t believe in war, so there…

    As a great believer in the educational power of fiction, I heartily recommend Love Marriage, a story set in the Sri Lankan tamil community, tells the history from the tamil side. You can read a Q&A with the author at the always excellent Sepia Mutiny.

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    Not looking good for Canada and Climate Change Policy

    Meanwhile, the Conservative party received an F+ because it has chosen a "completely inadequate" target for reducing greenhouse gases and because it is relying on intensity targets to meet its goals.

    Greens tops, Tories flops in Sierra Club climate-change report card.

    So, all the other parties get at least a B grade. The conservatives are relying on so called greenhouse gas intensity targets, or emissions/dollar of GDP, which is a meaningless statistic. As many have pointed out previously, greenhouse gas intensity is a meaningless statistic and decreases naturally as processes grow more efficient and economies transition from a manufacturing to a service oriented economy. The GHG intensity dodge was invented by the Bush administration and the conservatives were happy enough to follow along.

    So, as Harper turns his high profile and the utter fragmentation of centre/left of centre vote into an opinion poll lead, a reminder that ever other party in this race has at least a half way realistic climate policy.

    Canada can’t really wait too long to get in front of this problem. I believe that the US will have something proposed/in place by 2010 and as Canada’s biggest trading partner, will be in enforce a carbon regime on Canada, so this may be moot.

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    DMK blinks on Sri Lankan Tamils, LTTE

    Signalling the end of a major crisis that threatened the continuance of the United Progressive Alliance government, Chief Minister M. Karunanidhi assured External Affairs Minister Pranab Mukherjee that he would not precipitate any crisis over the issue of a ceasefire in the Sri Lankan ethnic conflict, even as the island nation assured India that the safety of Tamils in that country was being taken care of.

    via The Hindu : Front Page : As DMK relents, crisis for Centre ends

    So, what happened? The Indian government reacted to Tamil MPs’ ultimatums and issued a statement expressing “concern”. The Sri Lankan government responded by issuing a statement “reassuring” that Tamils would be taken care of. In the end, nothing appears to have changed, except the rather subtle new perception that there could be an increased Indian involvement in possible negotiations.

    We shall see, having been here before.

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    The LA Times and the American Chemistry Council

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    The US guts Environmental Assessments

    Environmental assessment in the U.S. was enshrined in law for the first time when President Richard Nixon signed the National Environmental Policy Act (NEPA) on January 1, 1970. Since then, however, the U.S. has slowly cast aside its role as a leader in the field of environmental assessments, as successive administrations have chipped away at the scope of NEPA, experts say. The cuts have reached a crescendo with President George W. Bush’s administration, and proponents of these assessments worry that pressure to develop natural resources with little oversight of the consequences will lead to an unsustainable future for the U.S.

    ES&T Online News: Environmental Magna Carta under siege

    Well, perfect. Now you can claim very factually that “you don’t know of any harmful effects of your actions”.

    The fact is, the attack on NEPA has come, chronically, from a relatively small group of commodity users—timber companies, highway builders—who simply oppose having the public and environmentalists get in the way of their plans and programs,” Houck maintains.

    Can’t say it any better. Information is very important and one thing this Bush administration has been very successful at is reducing the flow of information.

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One Comment

  1. Gasp! Are you suggesting that throwing 700billion at the problem isn’t going to help?! Well, whyever not.
    Oy, it makes my head hurt. Can’t wait to see how it all shakes out.

Comments are closed.