April 2012 archive

Last week Congress passed the Jump Start Our Business Startups Act (pdf), the JOBS Act, which is set to be signed into law with much fanfare by President Obama despite the fact that it will in all probability create an explosion of financial fraud. The act rolls back many of the regulations that were passed under Sarbanes-Oxley in 2002. Professor of economics and law at the University of Missouri-Kansas City, Bill Black wrote an outstanding article for the New Economic Perspectives that was cross posted at naked capitalism, explaining with clarity how the jumpstart Obama’s Bucket Shops Act is just another in a long series of fraud-promoting legislation. He closed with this analysis:

We have trashed a regulatory system that was the envy of the world. It helped bring us prosperity, far greater economic stability, fewer and less severe recessions, and reduced income inequality. It made freer enterprise possible because the regulatory cops on the beat helped limit the Gresham’s dynamic in which bad ethics drives good ethics out of the marketplace. When frauds prosper honest businesses are among the victims. The three de’s have brought us recurrent, intensifying financial crises, the end of any material gains by the middle class, losses for the working class, the expansion of poverty and extreme inequality, and the domination of our political system by crony capitalism. Elite fraud and corruption are now common in America.

The entire article is a must read.

During a panel discussion on Up with Chris Hayes, Prof. Black and Alexis Goldstein of Occupy the SEC “educated” Democratic Representative Carolyn Maloney, who represents the the Upper East Side constituency of top Wall Street earners, on just how bad this bill is. As Yves Smith observes, “it is pretty hard to imagine that Carolyn Maloney would do anything that would seriously inconvenience her constituency”:

You need to watch the full segment to get the effect, but Maloney starts out by saying that the JOBS Act probably won’t create many jobs, but she was nevertheless getting complaints about how costly it was for “small” businesses to hire auditors (earth to base, if they are public, they would not qualify as “small” in most people’s book). Goldsmith devastates Maloney with her command of the bill, pointing out that it covers companies of up to $1 billion in revenues, that the tech companies its backers keep invoking have VC firms ready and willing to invest, and the new format well be used by PE firms flipping companies they had taken private back to public investors. By the end, Maloney is telling Goldsmith to send her suggestions for improved legislation and she’ll put it forward (I’ll believe her sincerity when I see action).

Yves is right, Alexis shreds Carolyn. Watch this segment, it is a thing of beauty.

Prof. Black also explains “stump & dump” scams and “cloud financing” that can cause devastating losses and won’t create any jobs.

Let me be the first to say it-

I.

was.

wrong.

And so we are left with 2 teams that I really couldn’t have less interest in- Kentucky and Kansas.  I don’t even know which one to hate more.

Still, when you embark on these long term sports projects you have to stick with them even when Lance Armstrong is out of the picture lest you brand yourself a mere partisan fan instead of a student of the game.

Semifinal Results-

Tonight’s Action-

Zap2it says coverage starts at 9 pm on CBS.

It would seem that there really are rational Republicans in elective office. Thank you to Louisiana Attorney General Buddy Caldwell who recognized that the Patient Protection and Affordable Care Act neither protects the patient or makes health care affordable. The only thing that will do that is single payer and that isn’t in the bill. Single payer health care spreads the cost of health care across the spectrum, covering everyone, and insures access to care from birth to death. So, AG Caldwell is suing the Obama Administration because he trusts the government more than the greedy, profit driven insurance companies.

ThinkProgress spoke with Louisiana Attorney General Buddy Caldwell outside the Supreme Court on Wednesday. Caldwell opposes Obamacare and the individual mandate, but for a different reason than most of his fellow litigants: it props up the private health insurance industry. “Insurance companies are the absolute worst people to handle this kind of business,” he declared. “I trust the government more than insurance companies.” Caldwell went on to endorse the idea of a single-payer health care system, saying it’d “be a whole lot better” than Obamacare:

   KEYES: You don’t think the subsidies for low-income people are going to be helpful?

   CALDWELL: No, no. The worst thing you can do is give it to an insurance company. I want to make my point. All insurance companies are controlled in their particular state. If you have a hurricane come up the east coast, the first one that’s going to leave you when they gotta pay too many claims is an insurance company. Insurance companies are the absolute worst people to handle this kind of business. I trust the government more than insurance companies. If the government wants to put forth a policy where they will pay for everything and you won’t have to go through an insurance policy, that’d be a whole lot better.

I don’t know about the rest of Mr. Caldwell’s politics but I wish there was a Democrat in the White House that agreed with him on this.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Pink Slime Economics

The big bad event of last week was, of course, the Supreme Court hearing on health reform. In the course of that hearing it became clear that several of the justices, and possibly a majority, are political creatures pure and simple, willing to embrace any argument, no matter how absurd, that serves the interests of Team Republican.

But we should not allow events in the court to completely overshadow another, almost equally disturbing spectacle. For on Thursday Republicans in the House of Representatives passed what was surely the most fraudulent budget in American history.

New York Times Editorial: Their Contributors’ Bidding

Don’t they ever learn? Large bipartisan majorities in the House and Senate have now passed the deeply flawed JOBS Act and President Obama is expected to sign it soon. The full name is equally seductive: Jump-start Our Business Start-ups Act. What it is is an invitation to a fresh round of financial malfeasance. It rolls back important investor safeguards from the post-Enron Sarbanes-Oxley law and the post-financial crisis Dodd-Frank law.

The official justification for the legislation – debunked in expert testimony – is that rules on disclosure, accounting and auditing make it unduly difficult for new companies to raise money by issuing stock. The real driving force behind the bill is the eagerness of politicians in both parties to please bankers and business executives who relentlessly demand deregulation and have the deep pockets to get their way, especially in an election year.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

April 2 is the 92nd day of the year (93rd in leap years) in the Gregorian calendar. There are 273 days remaining until the end of the year.

On this day in 1513, Ponce de Leon discovers Florida. Near present-day St. Augustine, Spanish explorer Juan Ponce de Leon comes ashore on the Florida coast, and claims the territory for the Spanish crown.

Although other European navigators may have sighted the Florida peninsula before, Ponce de Leon is credited with the first recorded landing and the first detailed exploration of the Florida coast. The Spanish explorer was searching for the “Fountain of Youth,” a fabled water source that was said to bring eternal youth. Ponce de Leon named the peninsula he believed to be an island “La Florida” because his discovery came during the time of the Easter feast, or Pascua Florida.

First voyage to Florida

Ponce de Leon equipped three ships with at least 200 men at his own expense and set out from Puerto Rico on March 4, 1513. The only contemporary description known for this expedition comes from Antonio de Herrera y Tordesillas, a Spanish historian who apparently had access to the original ships’ logs or related secondary sources from which he created a summary of the voyage published in 1601. The brevity of the account and occasional gaps in the record have led historians to speculate and dispute many details of the voyage.

The three ships in this small fleet were the Santiago, the San Cristobal and the Santa Maria de la Consolacion. Anton de Alaminos was their chief pilot. He was already an experienced sailor and would become one of the most respected pilots in the region. After leaving Puerto Rico, they sailed northwest along the great chain of Bahama Islands, known then as the Lucayos. By March 27, Easter Sunday, they reached the northern end of the Bahamas sighting an unfamiliar island (probably Great Abaco).

For the next several days the fleet crossed open water until April 2, 1513, when they sighted land which Ponce de Leon believed was another island. He named it La Florida in recognition of the verdant landscape and because it was the Easter season, which the Spaniards called Pascua Florida (Festival of Flowers). The following day they came ashore to seek information and take possession of this new land. The precise location of their landing on the Florida coast has been disputed for many years. Some historians believe it occurred at St. Augustine; others prefer a more southern landing at a small harbor now called Ponce de Leon Inlet; and some argue that Ponce came ashore even further south near the present location of Melbourne Beach.

After remaining in the vicinity of their first landing for about five days, the ships turned south for further exploration of the coast. On April 8 they encountered a current so strong that it pushed them backwards and forced them to seek anchorage. The tiniest ship, the San Cristobal, was carried out of sight and lost for two days. This was the first encounter with the Gulf Stream where it reaches maximum force between the Florida coast and the Bahamas. Because of the powerful boost provided by the current, it would soon become the primary route for eastbound ships leaving the Spanish Indies bound for Europe.

This past week, several stories appeared which indicate the degree to which true investigative reporting about US efforts in the Global War on Terror is at odds with the desires of the Obama administration and the lengths to which the administration will go to create their preferred narrative and suppress reporting that fails to fit.  At the same time, the President and other administration officials have made public statements, unsupported by documentation, that they refuse for alleged “national security reasons” to release to the ACLU and journalists.

This diary will continue some of the themes developed in a previous diary, President Obama’s Propaganda Wars regarding the Obama administration’s attempts to “dominate the information spectrum.”

The stories this week suggest that sometimes in the Global War on Terror, it’s a matter of getting the images correct.  If the action is popular, we get, “Engaged-Commander-in-Chief-sweating-the-details Obama.”  If the action is controversial, or perhaps questionably legal, we get “Spectator Obama,” watching the action from the stands along with everybody else.

Pink slime is a slang term, and not a terribly inapt one for what is technically known as lean finely textured beef or boneless lean beef trimmings.  Although I used the term pink slime in the title to get your attention, I think that it is a bit pejorative and shall use the term “the product” henceforth.

Since this is a meat product, it is regulated by the United States Department of Agriculture (USDA) and not the Food and Drug Administration (FDA).  This seems to me to have a bearing on how it has been approved.

There are a LOT of politics and hype surrounding the product, and I think that it serves my readers to look at the technical issues before we examine the political and PR issues.  You might be surprised where I come down on the safety and wholesomeness of the product.

The headlines out of California indicate that there has been a substantial shift in terms of the California HSR system. In particular, it seems that Gov. Brown has waded into the fray and is reframing the issue from the Only-An-Infrastructure-Geek-Could-Love frame of the Initial Construction Segment and the mythical “Train to Nowhere”, to the “when do I get to ride it?” frame of the Initial Operating Service.

You can find the lead up to the big move at the CHSRblog:

Deal Reached to Combine Caltrain Electrification and HSR (22MAR)

Legislature Appears to Have Votes to Approve HSR Funding (23MAR)

Jerry Brown Lowers HSR Cost by $30 billion

And Newspaper sneak previews of what will be Monday’s Big News at:

Sacramento Bee: Gov. Jerry Brown to change high-speed rail plan, lower cost by $30

Mercury News: Questions remain despite revised Calif. rail plan  

SF Chronicle: High-speed rail plan slashes costs to calm critics

However, while the newspaper accounts given glimpses and hints and quotes of very carefully written statements from the principle actors … digging into the details will have to wait until the details are released.

So instead, I want to take a look at the existing “Slow Speed Rail” systems of Northern California, to get a better background understanding of what “connecting with” the existing systems might mean.

Reprinted from: Daily Kos

In an unprecedented move, we are delaying the publication of our regular Anti-capitalist meet-up diary to bring you a special report.  Four hours ago, several hundred US citizens and residents, reportedly members of OWS (Occupy Wall Street), occupied both chambers of the United States Congress.

Corporate media sources have refused to report the event until control can be reestablished by authorities. However, according to Al Gazeera, who just started running a live stream an hour ago, the occupiers entered both houses and forced the Senate into the House of Representatives Chamber for a joint session.  We can only speculate whether the occupiers used guns to force the Senators into the Chamber or simply took over using the force of their numbers. We understand they dismantled the microphones in the chamber and began a General Assembly using the human microphone.

So professional handicappers look at it this way.  I agree with some but not all of their analysis.  Notre Dame is without a doubt the worst team UConn could face and they will have to play very hard and carefully to win.

Baylor on the other hand is not a team that presents an unsolvable problem.  Brittney Griner is without a doubt a phenomenon, but you send your bench at her inside and get her in foul trouble.  Stanford is a premier program and has the depth and discipline to do this.

It’s been a bad season for the Lady Huskies, the worst in years, even so they are capable of going all the way against any team in the field.

Regional Final Results-

Tonight’s Action-