June 2012 archive

Cross posted from The Stars Hollow Gazette

The much anticipated keynote address on the opening night at Netroots Nation 12 in Providence, RI was, I dare say, over two hours of my life I will never get back. While I understand the need for levity, thus the comedic interludes by emcee Baratunde Thurston, the number of speakers was just too many and they were unfortunately long winded, even for politicians. I wasn’t alone in that assessment. After nearly two hours Schneiderman had not reach the stage, so I decided to “stretch my legs” before I embarrassed my self by dozing off and falling out of my seat, although, it might have more entertaining for some than Mr. Thurston. I wasn’t alone. In the lobby outside the ballroom, I ran into an Obama supporter who found that she and I had something in common, this was booooooooring. I missed the New York Attorney General’s address and opted for the hotel restaurant for some food and libation. So here is the entire opening keynote with Schneiderman coming in at the last fifteen minutes.

Here is more agreement about the anesthesia effects of the evening from FDL blogger masachio

Schneiderman chose the pander speech. He started by explaining that real change comes from the grassroots, leaders emerge from struggles over real problems. That’s us, the Netroots! We are the leaders of the future!

He continues: We are in a transitional era now, just like the early 30s. We democrats stand for the rule of law applicable to everyone equally just like President Obama. Someone from the audience suggests loudly that locking up banksters would be a good start, and Schneiderman says he’ll get to that. Which he does a few minutes later saying that he can’t comment on the investigation he is doing. Everyone is really nice about this bit of foolery, and it was at this point I realized I would prefer to be drinking. I mutter at my tablemates that banksters and pot smokers do not face the same application of the rule of law, but no one hears me because they are stunned into dopiness.

The somnolence continues. [..]

After the speech, Schneiderman told a Talking Points Memo reporter that “nothing was off the table.” So if that’s true, when do the prosecutions start? Oh, wait, the “special unit” still has no office or telephone number after six months.

Not only are the Masters of the Universe simply gamblers, they’re bad gamblers who pursue sucker strategies that are doomed to fail.

You can see it when they, uhh… gamble.

On May 8th, 9th, and 10th, Michael Geismar (co-founder and President of the $4.6 Billion Quantative Investment Management hedge fund) went to the SkyBridge Altermantives Conference at the Bellagio in Las Vegas.

In one of those improbable success stories they use to delude the high rollers he won about 700K and the notoriety of the incident drew it to the attention of Felix Salmon who used it as a cautionary tale of risk-taking attitude.

This is why SALT will always be in Vegas, and why Vegas will always welcome SALT with open arms. I’m sure the casinos made very good money on SALT even after accounting for Geismar’s winnings, and they’ll probably make money from Geismar too, on net, over time. If nobody ever won big money, no one would gamble at all. But in the end, the house always wins – and all of these hedge-fund managers are smart enough to know that. And still, left to their own devices, what they do is gamble, and they even layer on silly “risk management” techniques which don’t reduce risk at all – in this case, after a losing hand, Geismar would bet a little less, reckoning that somehow “laws of averages” would help him as a result.

I’ll point out Michael Geismar is a hedge fund manager and is not connected with JPMorgan in any way I’m aware of.  More interesting is this description of the precise money management decisions which led to this 7,100% return.

Michael Geismar’s $710,000 blackjack breakfast

Lawrence Delevingne, Absolute Return + Alpha

May 24, 2012

After a stretch of good cards, Geismar had doubled his money to about $20,000. He then started to bet larger amounts with every winning hand, first $1,000, then $2,000 or $3000. He also scaled down his bets after one losing hand, using laws of averages but not card counting. That basic scaling strategy worked well, and Geismar got to about $200,000 early Wednesday morning. By that point he was up so much he bet $10,000 for every hand win or lose. And he kept winning.

…

As the other players started beating the dealer, Geismar began backing them up. Backing up is the blackjack term for betting on anoter person’s hand. Bellagio casino rules impose a $10,000 limit on an individual player’s own hand, but players are allowed to bet on each other’s hands, meaning one player could place $9,000 of his money on top of anther player’s $1,000 bet. In this way Geismar was able to bet the hands of several players, though his total bets could not exceed $30,000 per round. Geismar’s bets were usually much larger than those he was backing. He often used $5,000 chips on each of the other 4 player’s hands, and he often went right to the limit during a run of good cards, using his up-and-down scaling bet strategy. He was also betting $10,000 on each of his hands during the good streaks.

You see, this is in fact worse than no strategy at all.  Indeed, it’s a strategy to suffer catastrophic losses.

Guest post: Michael Geismar’s blackjack strategy

By Felix Salmon, Reuters

June 5, 2012

(M)athematician and blackjack expert Jonathan Adler

The idea that after seeing a bunch of one side of the coin on past flips you are more likely to see the other on future flips is called the gambler’s fallacy. The fallacy comes from the confusion between the long run outcome (with a large enough sample size, I expect half of my coin flips to be heads and half to be tails) and the outcome on any one flip (since I have seen a bunch of heads before, I need to start getting tails to balance things out in the long run).

…

(O)nce the player sees their hand and the dealer’s card there is generally a single best action for them to maximize their potential payout. This set of best actions is called “Basic Strategy” and is well known. The player really doesn’t have much choice in terms of what they do on a single round; any decent player will just take the optimal move based on what’s showing. Assuming the player always takes the best possible action, for every dollar they bet in a round they should lose around half a cent.

…

There are two main ways to legally attempt to overcome the fact that each hand on average loses you a bit of money. You can either change the odds to be in your favor, or you can try and change your bet amounts to make it less likely you will lose. Only one of these methods actually works.

By changing the structure of the game, you can make it that your average hand has a positive return. This was famously done by a group of MIT students using a method called card counting. The students exploited the fact that unlike our coin tosses from earlier, hands of blackjack aren’t truly independent events. That’s because each round of blackjack comes from the same shoe of cards, so if you keep track of what cards have been played in earlier rounds, you will have a small amount of knowledge on what cards you are likely to see in future hands. When there are mostly face cards and aces remaining in shoe then the player is actually at a slight advantage to the dealer. If you only place bets when the deck is to your advantage then you can make yourself money. The MIT students counted the number of face cards that had been seen already to estimate what proportion of remaining cards were face cards. When there were a high proportion of face cards left in the shoe they would make large bets.

…

Another way to try and overcome the expected loss on each hand by having the casino change the rules for you. If you’re a high enough roller, sometimes casinos will entice you to play by giving you discounts on your losses. When they offer these discounts on losses, they attempt to run the math to ensure that you should still be expected to lose money on your trip, however as described in the article it’s not clear they always get it right.

Most people don’t have the skill and manpower to count cards, they don’t have enough money to warrant a discount, nor do they have any other way to get the odds on each hand in their favor. So to try and overcome the house edge, they will try to cleverly alter the amount they are betting on each hand. A betting strategy, or a martingale, is a set of rules to determine how much a player should bet on each hand to try and compensate for previous wins or loses. This is different from counting cards because it doesn’t take into account what cards are left in the shoe; it only uses how many times the player has won or lost.

For example, let’s say you and your spouse go to a blackjack table with $1,024 $1,023 and hope to win an additional dollar. Your spouse suggests you just play one hand and if you lose then walk away, but you have a better idea in mind. On your first hand you bet a single dollar. If you win you do walk away, but if you lose you bet two dollars. If you lose twice in a row you bet four dollars, if you lose three times in a row you bet eight dollars, and you continue to double your bet until you get a win. Any time you win a hand you will wipe out all of your previous losses and you’ll get a dollar in winnings. The only way not make of money is to lose 10 straight hands in a row, and since losing 10 straight hands in a row is extremely unlikely, you expect to almost always make the dollar you were hoping for. Or in terms of the coins from before, instead of betting a dollar that a coin will flip heads, you bet $1,024 that out of ten flipped coins at least one will be heads. If you win you get an extra dollar, otherwise you lose all of your $1,024 $1,023.

If you followed your spouse’s advice, you would have slightly less than a 50% chance of winning a dollar, and slightly greater than 50% chance of losing a dollar. By not following their advice, you have around a 99.9% chance of winning the dollar, and a 0.01% chance of losing all the money you walked in with. In fact because the amount you would lose when you get ten bad hands in a row is so catastrophically high, the expected amount you win overall is still negative. Your clever betting strategy didn’t actually change the house’s advantage over you; all it did was push the risk out so that you lose very rarely and when you lose you lose big. You can mathematically prove that any betting strategy you use, no matter how hard you try and optimize it, will fail to change the fact that the house has an advantage – you’ll still lose money by playing.

…

Once the bank has increased their leverage, this becomes similar to the betting strategy in blackjack. Most of the time, the bank’s pair of investments will yield a decent return. Every once in a while, Microsoft will decrease in value while Google increases, and the bank will lose much more money than if they hadn’t hedged at all. Just like the person using a betting strategy, they have pushed their risk to the tail events: only when the market moves in a particular way will they lose money, but when it does, they’ll lose big.

As Wall Street has created more and more complicated financial products, it has become nearly impossible for a buyer to determine how much of the product’s return is due to shifting risk to the tails. In terms of blackjack, consider a person who tells you they can get an average return of five cents for every dollar you give them to play, but doesn’t tell you how they do it. Unless you watch them play, there is really no way for you to know if they are actually changing the game like the MIT students, or if they are just employing a betting strategy and at some point will lose all of your money.

…

The lesson here is that whether on Wall Street or the strip in Las Vegas, it’s easy to confuse increasing the chances of winning with shifting risk. Increasing the chances of winning improves the amount you should expect as payout. Shifting the risk makes it so that most of the time you get a good payout, but every once and a while you lose catastrophically. As a culture, we should be trying to ensure that the people making financial decisions are looking to do more of the former and less of the latter, especially given the systemic consequences of recent catastrophic market collapses.

“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”.

Follow us on Twitter @StarsHollowGzt

Paul Buchheit: War or Revolution Every 75 Years. It’s Time Again.

When Charles Dickens wrote “It was the best of times, it was the worst of times” to begin “A Tale of Two Cities,” he compared the years of the French Revolution to his own “present period.” Both were wracked with inequality. But he couldn’t have known that 75 years later inequality would cause the Great Depression. Or that 75 years after that, in our own present period, extreme inequality would return for a fourth time, to impact a much greater number of people. He probably didn’t know that the cycles of history seem to drag the developed world into desperate times about every 75 years, and then seek relief through war or revolution.

It’s that time again.

Three cycles (225 years) ago, in the years before the French Revolution, inequality was at one of its highest points ever. While it’s estimated that the top 10% of the population took almost half the income, as they do today, the Gini Coefficient was between .52 and .59, higher than the current U.S. figure of .47. The French Revolution began a surge toward equality that lasted well into the 19th century.

New York Times Editorial: Now, Spain

Two weeks after Prime Minister Mariano Rajoy of Spain vowed “there will be no Spanish banking rescue,” and after days of delay in which Mr. Rajoy pressed European officials for sounder rescue terms, Spain has now joined Greece, Ireland and Portugal as the latest bailout recipient. Catastrophe averted? Hardly.

Bailouts – this one is worth up to $125 billion – are supposed to help restore investor confidence. But investors have clearly figured out what too many European politicians are still denying: serial bailouts, piecemeal plans and one-size-fits-all austerity are not a solution.

On Monday, Spanish and Italian borrowing costs spiked after Mr. Rajoy, the day before, had lamely tried to downplay the new bailout – calling it a line of credit – while Mario Monti, Italy’s prime minister, publicly warned of a “permanent risk of contagion.”

Another right further diminished by the Supreme Court.

Supreme Court Denies 7 Detainee Cases, Leaving Crippling Limits On Detainee Rights In Place

One day before the fourth anniversary of Boumediene v. Bush, which held that detainees being held indefinitely at Guantanamo Bay have the right to challenge their confinement in federal court, the Supreme Court denied review (pdf) of seven detainee cases that were pending before the court. The decision not to review any of the cases essentially makes the U.S. Court of Appeals for the D.C. Circuit the last stop for detainees seeking habeas corpus. While many detainees won their habeas corpus cases at the trial court level, no detainees have been released from Guantanamo due to these decisions because the DC Circuit has a perfect record of reversing these decisions.

Although today’s action does not have any precedential force, it undercuts the extent to which detainees can seriously challenge their detention by leaving the D.C. Circuit’s pro-detention decisions in place [..]

Marcy Wheeler @ emptywheel explains what the Supreme Court has just blessed:

   

Holding a person indefinitely for being in the wrong place at the wrong time-including a school, a road, and a guest house-where suspect people are.

   

Holding a person indefinitely based on an admittedly error-ridden report the government wrote up itself.

   

Holding a person indefinitely based on pattern analysis.

   

Completely upending the role of District Court judges in the fact-finding process.

The Justices have abdicated their responsibility  to an ever more powerful Executive branch:

Especially deserving of review was a petition by Adnan Latif, a Yemeni who was captured near the border between Afghanistan and Pakistan in December 2001. Latif said he had traveled to Pakistan to seek medical treatment; the U.S. government insisted that he was a fleeing Taliban fighter.

A federal district judge ruled in Latif’s favor, concluding that, because of possible transcription and other errors, a government report of an interview with him was “not sufficiently reliable to support a finding by a preponderance of the evidence that Latif was recruited by an Al Qaeda member or trained and fought with the Taliban.” Overturning that finding, the D.C. Circuit ruled that the government’s evidence was entitled to “a presumption of regularity” and that lower court judges should require that a detainee’s “self-serving account must be credible – not just plausible.” In her opinion, Circuit Judge Janice Rogers Brown (a former California Supreme Court justice) approvingly cited dissents in the Boumediene case and referred snidely to its impracticality and “airy suppositions.” [..]

Dissenting in the Latif case, Judge David Tatel described the decision as an “assault on Boumediene.” At the very least, the ruling called for a full-fledged review by the Supreme Court. Instead, the justices have abdicated their authority and devalued their own achievement.

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.

Click on image to enlarge

June 12 is the 163rd day of the year (164th in leap years) in the Gregorian calendar. There are 202 days remaining until the end of the year.

On this day in 1776, Virginia adopts George Mason’s Declaration of Rights

The assembled slaveholders of Virginia promised to “the good people of VIRGINIA and their posterity” the equal right to life, liberty and property, with the critical condition that the “people” were white men. These same white men were guaranteed that “all power” would be “vested in, and consequently derived from” them. Should a government fail to represent their common interest, a majority of the same held the right to “reform, alter or abolish” the government.

Drafting and adoption

The Declaration was adopted unanimously by the Fifth Virginia Convention at Williamsburg, Virginia on June 12, 1776 as a separate document from the Constitution of Virginia which was later adopted on June 29, 1776. In 1830, the Declaration of Rights was incorporated within the Virginia State Constitution as Article I, but even before that Virginia’s Declaration of Rights stated that it was ‘”the basis and foundation of government” in Virginia.  A slightly updated version may still be seen in Virginia’s Constitution, making it legally in effect to this day.

It was initially drafted by George Mason circa May 20, 1776; James Madison assisted him with the section on religious freedom. It was later amended by Thomas Ludwell Lee and the Convention to add a section on the right to uniform government (Section 14). Patrick Henry persuaded the Convention to delete a section that would have prohibited bills of attander, arguing that ordinary laws could be ineffective against some terrifying offenders.

Mason based his initial draft on the rights of citizens described in earlier works such as the English Bill of Rights (1689), and the Declaration can be considered the first modern Constitutional protection of individual rights for citizens of North America. It rejected the notion of privileged political classes or hereditary offices such as the members of Parliament and House of Lords described in the English Bill of Rights.

The Declaration consists of sixteen articles on the subject of which rights “pertain to [the people of Virginia]…as the basis and foundation of Government.” In addition to affirming the inherent nature of natural rights to life, liberty, and property, the Declaration both describes a view of Government as the servant of the people, and enumerates various restrictions on governmental power. Thus, the document is unusual in that it not only prescribes legal rights, but it also describes moral principles upon which a government should be run.

Influence

The Virginia Declaration of Rights heavily influenced later documents. Thomas Jefferson is thought to have drawn on it when he drafted the United States Declaration of Independence one month later (July 1776). James Madison was also influenced by the Declaration while drafting the Bill of Rights (completed September 1787, approved 1789), as was the Marquis de Lafayette in voting the French Revolution’s Declaration of the Rights of Man and of the Citizen (1789).

The importance of the Virginia Declaration of Rights is that it was the first constitutional protection of individual rights, rather than protecting just members of Parliament or consisting of simple laws that can be changed as easily as passed.

Bradbury died in Los Angeles, California, on June 5, 2012, at the age of 91, after a “lengthy illness”, coincidentally during a rare transit of Venus

My earliest memory of Ray Bradbury was my father reading to me from The Martian Chronicles. I was three. Later he would read aloud from Fahrenheit 451 and his short stories while I looked on at the words on the page. I read from those same books that were left to me by “Pop” to my daughter and gave her my first edition copy of “Something Wicked This Way Comes” which “Pop”  gave me for my 15th birthday.

By many estimations Mr. Bradbury was the writer most responsible for bringing modern science fiction into the literary mainstream. His name would appear near the top of any list of major science fiction writers of the 20th century, beside those of Isaac Asimov, Arthur C. Clarke, Robert A. Heinlein and the Polish author Stanislaw Lem. His books are still being taught in schools, where many a reader has been introduced to them half a century after they first appeared. Many readers have said Mr. Bradbury’s stories fired their own imaginations.

More than eight million copies of his books have been sold in 36 languages. They include the short-story collections “The Martian Chronicles,” “The Illustrated Man” and “The Golden Apples of the Sun,” and the novels “Fahrenheit 451” and “Something Wicked This Way Comes.”

Though none of his works won a Pulitzer Prize, Mr. Bradbury received a Pulitzer citation in 2007 “for his distinguished, prolific and deeply influential career as an unmatched author of science fiction and fantasy.”

Scarecrow gave this tribute to Bradbury’s memory by reminding us of what could happen in a totalitarian society like the one in Fahrenheit 451:

In Fahrenheit 451, Bradbury describes the horrors of a totalitarian society so repressive and fearful of ideas that it banned books and burned them.  But clever humans figured out they could preserve the literature if each person committed to memorizing a book, reciting and teaching it to others, and passing it on to the next generations.

So I thought we might honor Bradbury’s life and work by passing on a few ideas that are worth preserving as we ponder the meaning of Wisconsin and mourn America’s descent into union bashing and income inequality, enforced by secrecy, propaganda and protected financial looting. [..]

First, as this analysis from the Economic Policy Institute illustrates – and see the video at top – income equality tends to be much higher in America when there are strong unions, while inequality explodes when unions are weak.  It seems like an obvious connection – if lower classes have clout, they can demand more of the benefits of their labor – but it’s not emphasized enough in all the media’s right wing excitement about destroying the power of unions. [..]

Second, as James Kwak has written, the Republican policy of lower taxes does not apply across the board; it applies to the top, mostly.  But they don’t seem to care if taxes are directly or indirectly raised on the poor.  In the Atlantic, Kwak writes about the “GOP’s bizarre, disturbing passion for raising taxes on the poor.” [..]

[One] way to look at Wisconsin is to see it as part of a long term, calculated strategy of weakening unions and destroying their bargaining power.  With that power gone, there is nothing to prevent the top percentages from grabbing almost all the gains from labor productivity increases, thus increasing income and wealth inequality.  The winners then use the political power from that to perpetuate the inequality in their favor.  From there, it is a simple enough leap to use the protected positions of wealth to loot the rest of society and use the power of the state to protect the looting and cover for the looters.

It’s a great strategy if you’re one of the looters, but it’s profoundly criminal.    Remember that.

Ray Bradbury will live forever with his words, hopefully, the future generations will listen, so far we aren’t

May the Goddess guide him on his journey to the Summerlands. May his family, friends and all those who ahve read and will read his works, find Peace.

Blessed Be. The Wheel Turns.

“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”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: Another Bank Bailout

Oh, wow – another bank bailout, this time in Spain. Who could have predicted that?

The answer, of course, is everybody. In fact, the whole story is starting to feel like a comedy routine: yet again the economy slides, unemployment soars, banks get into trouble, governments rush to the rescue – but somehow it’s only the banks that get rescued, not the unemployed.

Just to be clear, Spanish banks did indeed need a bailout. Spain was clearly on the edge of a “doom loop” – a well-understood process in which concern about banks’ solvency forces the banks to sell assets, which drives down the prices of those assets, which makes people even more worried about solvency. Governments can stop such doom loops with an infusion of cash; in this case, however, the Spanish government’s own solvency is in question, so the cash had to come from a broader European fund.

New York Times Editorial Nuclear Time Warp

Did House Republicans somehow miss the end of the cold war? At a time when, for the sake of both security and fiscal responsibility, the country should be reducing its nuclear arsenal, the House has approved a defense authorization bill for 2013 that threatens to freeze the number of weapons at current levels and, over time, waste billions of dollars on unnecessary purchases and programs.

Thankfully, the bill isn’t likely to become law. But it is worth taking a closer look, both for what it says about Republicans’ misplaced strategic priorities – and about how far President Obama has already gone to appease them.

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.

Click on image to enlarge

June 11 is the 162nd day of the year (163rd in leap years) in the Gregorian calendar. There are 203 days remaining until the end of the year.

On this day in 1776, the Continental Congress selects Thomas Jefferson of Virginia, John Adams of Massachusetts, Benjamin Franklin of Pennsylvania, Roger Sherman of Connecticut and Robert R. Livingston of New York to draft a declaration of independence.

Knowing Jefferson’s prowess with a pen, Adams urged him to author the first draft of the document, which was then carefully revised by Adams and Franklin before being given to Congress for review on June 28.

The revolutionary treatise began with reverberating prose:

Draft and adoption

While political maneuvering was setting the stage for an official declaration of independence, a document explaining the decision was being written. On June 11, 1776, Congress appointed a “Committee of Five”, consisting of John Adams of Massachusetts, Benjamin Franklin of Pennsylvania, Thomas Jefferson of Virginia, Robert R. Livingston of New York, and Roger Sherman of Connecticut, to draft a declaration. Because the committee left no minutes, there is some uncertainty about how the drafting process proceeded-accounts written many years later by Jefferson and Adams, although frequently cited, are contradictory and not entirely reliable. What is certain is that the committee, after discussing the general outline that the document should follow, decided that Jefferson would write the first draft. Considering Congress’s busy schedule, Jefferson probably had limited time for writing over the next seventeen days, and likely wrote the draft quickly. He then consulted the others, made some changes, and then produced another copy incorporating these alterations. The committee presented this copy to the Congress on June 28, 1776. The title of the document was “A Declaration by the Representatives of the United States of America, in General Congress assembled.” Congress ordered that the draft “lie on the table”.

On Monday, July 1, having tabled the draft of the declaration, Congress resolved itself into a committee of the whole, with Benjamin Harrison of Virginia presiding, and resumed debate on Lee’s resolution of independence. John Dickinson made one last effort to delay the decision, arguing that Congress should not declare independence without first securing a foreign alliance and finalizing the Articles of Confederation.[64] John Adams gave a speech in reply to Dickinson, restating the case for an immediate declaration.

Burning the Midnight Oil for Living Energy Independence

Express HSR is sexy. Indeed, its sexy enough that when Big Oil propagandizes against it, they have to paint it as too expensive or something that America is too incompetent to handle, since the idea of sitting in an actually comfortable rail seat, watching a movie on a laptop or snacking on a sandwich while flying along at two to three times highway speeds, “just like in France or Japan or Spain”, that’s too appealing to convince a big majority of people that it would be anything but nice to have. So they have to con people into thinking of it as an unrealistic pipe dream that the US can do what Spain has been doing for a decade, France for three decades, and Japan for half a century.

Rapid Rail is not as sexy as Express HSR, but at least it is as fast as driving for most drivers on most corridors, and appreciably faster than driving on the corridor with the “best bones”, like either Cleveland / Columbus or Davenport / Des Moines / Iowa wold be at 110mph top passenger speed. And it is much cheaper than Express HSR, with lots of potential corridors that local residents will start lobbying for once the first of the Rapid Passenger Rail services come into service.

But conventional long haul rail? Surely plodding along at 50mph to as slow as 30mph on heavy freight rail corridors is an obsolete holdover from an earlier time?

Well, no. Conventional long haul rail has a 21st century role to play, if the United States should declare Economic Independence and start working to regain the economic freedom that we surrendered to the Big Oil and the oil exporting regions in the 70’s and 80’s.

And so, in this evening’s Sunday Train, we look at the “PRIIA Section 210” plans that Amtrak has developed for the five weakest of its fifteen long distance corridors: the California Zephyr, the Capitol Limited, the Cardinal, the Sunset Limited, and the Texas Eagle.

“When the madness is directed towards the likes of you and me,

Then our blindness may be lifted and we might begin to see.

For when others are afflicted, with the scourge that has no end,

Then we practice our denial — and the purging, we defend.

So the powers and the peoples of the nations of this Earth

Could be fully in connivance — or denial of the hurt…

And even, in our hubris, in our information age,

We are blinded by our bias — and at petty issues rage.

So the workers were divided and they voted Nazis in,

And so many were the workers, who paid dearly for this sin!

And we see now in Wisconsin, there’s a Walker riding high,

And there’s cash enough from coffers to propagate the lie.”

(excerpted)

Arjun Jalah

Sometimes you would give anything not to be right!  When I started writing this diary three weeks ago, I predicted that Scott Walker would win the recall election for governor in Wisconsin. Walker, with unlimited corporate money, was challenged by a massive people’s movement when he outlawed most collective bargaining rights in what was usually considered a progressive state.  I knew, with the certainty of a cynic that that much money would out-weigh people power.   It was the fight between John Henry and the steel driving machine all over again. Yet, there I was, Tuesday night, praying that the people power would, in the end, win.  Not.  Walker beat Tom Barrett, the Democratic candidate 53%-46%, winning by a whopping 6% points. As Ed of the Ed Show so colorfully pointed out, there was no way to put lipstick on that pig. Or as Chris Hedges had said a couple of weeks earlier: “We lost. They won.”