Spain Recoils as Its Hungry Forage Trash Bins for a Next Meal

By SUZANNE DALEY, The New York Times

Published: September 24, 2012

“When you don’t have enough money,” she said, declining to give her name, “this is what there is.”

…

“It’s against the dignity of these people to have to look for food in this manner,” said Eduardo Berloso, an official in Girona, the city that padlocked its supermarket trash bins.

Mr. Berloso proposed the measure last month after hearing from social workers and seeing for himself one evening “the humiliating gesture of a mother with children looking around before digging into the bins.”

…

But Mr. Berloso’s locks created something of an uproar across Spain, where the economic crisis is fueling more and more protests highlighting hunger. A group of mayors and unionists in southern Spain, where unemployment rates are far above the average, recently staged Robin Hood raids on two supermarkets, loading carts with basic foods and pressing them to donate more food to the needy.

More than a dozen people are facing prosecution for theft over the stunt. But they are unrepentant and appear to have huge local support. “Taking some food and giving it to families who are having a really hard time, if this is stealing, I am guilty,” one of the men, Francisco Molero of the farmworkers’ SAT union, told the local news media afterward.

I.M.F.’s Call for More Cuts Irks Greece

By LIZ ALDERMAN and LANDON THOMAS Jr., The New York Times

Published: September 24, 2012

The impasse has elevated tensions here as Greece braces for a nationwide general strike planned on Wednesday that threatens to bring public services to a halt. The Greek people are increasingly angry over the prospect that public salaries and pensions will be cut again in a last-ditch bid to secure a new loan installment of 31.5 billion euros, or $40.7 billion, from Greece’s creditors.

The Greek prime minister, Antonis Samaras, plans to address the nation this week to bolster support for the austerity package. He has already publicly warned his center-right party, New Democracy, that he will oust lawmakers of the party failing to back the package once it comes up for a vote, probably in early October.

…

In this political calculus, Ms. Merkel and others see Mr. Samaras as the last best hope for Greece. They worry that if the government teeters, new elections might be called in which his party could lose power to the increasingly popular leftist party Syriza, led by the political maverick Alexis Tsipras. Mr. Tsipras advocates tearing up the loan agreement with Greece’s international creditors. That would raise the risk of default and an eventual exit from the euro.

…

At the meeting, Poul Thomsen, the I.M.F.’s lead negotiator for Greece, was pushing hard for additional tax increases and wage and pension cuts, these people say. Mr. Stournaras angrily gestured to a bullet hole in one of the windows of the Finance Ministry.

“You see this – this came from a bullet,” Mr. Stournaras said. “Do you want to overthrow the government?”

…

The impasse reveals the extent of the government’s alarm at the worsening mood on the streets. More protests are likely in October, when Parliament is expected to vote on the measure. Many Greeks are now talking about the potential for civil unrest when the weather turns colder and many people may not be able to afford to heat their homes. Fuel prices, including gasoline, have been climbing, and whatever cushion Greeks on the margins had in their savings is gone.

Moreover, questions are swirling about the extent to which Greece’s police force will be willing and able to maintain public order, because it is also facing salary cuts. A number of officers were held off with pepper spray by riot police officers last week outside of Mr. Samaras’s residence, where they held a demonstration.

Draghi Rally Lets Skeptics Dump Spain for Bunds

By David Goodman and Emma Charlton, Bloomberg News

Sep 25, 2012 8:47 AM ET

Demand for German debt, perceived to be among the safest securities, is being sustained as Spain weighs a sovereign bailout to supplement a 100-billion euro ($129 billion) bank rescue package and as Europe’s economy slides toward recession.

…

Even as policy makers strive to end the three-year debt crisis, the region’s economic outlook is weakening. Euro-area surveys on Sept. 20 showed services and manufacturing output fell to a 39-month low in September adding to evidence the economy is heading for a recession. Figures yesterday showed German business confidence unexpectedly fell to the lowest in more than two and a half years in September.

“We are in a period where the ECB has laid down its framework to save the euro but the fundamentals will ultimately creep back in and you will see new problems flare,” said Harvinder Sian, a fixed income strategist at RBS in London. “Bunds will remain supported. I think 1.55 percent to 1.70 percent is a good entry location.”

Spain is in its second recession in three years, endangering plans to trim its budget deficit and avoid a bailout. The euro-region economy will probably shrink 0.4 percent this year, the ECB said this month.

I still see this band fairly frequently live since they’re from Long Island.

Born to be Wild

Last Days of May

I actually have a Soft White Underbelly shirt.

Stump Speeches (3:40)

Ads and Slogans (2:44)

Spin Doctors (2:43)

Campaigning in the Digital Age (2:54)

Picking a Running Mate (2:54)

During the boring parts today you can expect to hear lots of commentary about driver changes.  I’ve never been much of a believer in the ‘great man’ theory of history and I think most drivers with a Super License can be said to be reasonably competent while but a bare handful have any positive impact over and above the hardware they pilot and the management teams that support them.

There really is only one Alonso and he’s a perfect fit in Maranello where they can’t be bothered to produce a quick car because they’re so busy polishing their turds (Mythbusters have proven you can actually do this).

Hamilton is a good example of the other kind of driver, fearless and skilled, able to make fast hardware fast and not so fast hardware work at all, constantly thwarted and frustrated by decisions over which they have little control.

There has been a lot of talk about Hamilton changing teams that I’ve felt has been totally misguided.  Where would he go?  There are only 3 teams besides McLaren in the last 14 years that have produced a champion.

Scuderia Marlboro UPC might be interested in a Massa upgrade, but not necessarily in Hamilton.  Alonso doesn’t care much who he races with as long as they stay in the mirror which Hamilton would not.  Without Alonso, Maranello would have a tough time getting to Q3.  Why would Hamilton trade down hardware and put himself in an impossible situation?

Red Bull stands pat.  Why wouldn’t they?  Management and hardware is usually superior (not so much this year) and Vettel and Webber are good enough to win.

That leaves Lotus (Renault).  If Hamilton moves Grosjean is in his seat.

But it’s all mere speculation, Hamilton signed a 1 year extension yesterday.  Sinagapore also signed a 5 year extension of their race contract for a little more than $25 million a year.  While Bernie is being coy there is no doubt it’s a substantial discount compared to the $40 million charged Bahrain for the privilege.

And it has nothing at all to do with listing the now indefinitely postponed IPO on the Singapore exchange.  Nothing.

What about this race?

Twisty, bumpy, narrow, hard to pass… breakdowns, crashes, and tires otherwise they finish the way they start.  Fortunately for the entertainment value these are all likely to factor.  de la Rosa has already taken a gearbox penalty (to no effect since he was starting last anyway).  Vettel is complaining (with many others) about the curbing in the Turn 10 chicane launching cars and close wall encounters have been common.  Mercedes is taking a gamble with Softs (the harder of the 2 compounds this week) at the start instead of the 1 second a lap faster Super Softs.

Odds are it will be a soporific dronefest though not nearly as much as the Sunday Talking Heads.  It is the potential for excitement, change, and news that make it superior.

• Formula One Official Site
• Formula One Marina Bay
• Marina Bay
• Singapore Grand Prix
• Speed Racecast
• Guardian Interactive Circuit Guide
• Marina Bay Qualifying

Pretty tables below.

Next June 9th to 20th might be a good time to stay away from northern New Jersey and New York City as Bernie’s traveling circus comes to fat boy bully Chris Christie’s bond degraded New Jersey.  Bad news for Spain which faces secession by Catalonia AND the loss of the Valencia race.

Singapore next year is a provisional start as track officials argue that the expense of lighting the only night race and setting up the street circuit should merit a further reduction in the participation fee.  This is not good news for Ecclestone as the Formula One IPO has been postponed indefinitely while his company CVC has sold 50% of its once 65% share privately.

In another sign that the air is leaving the Formula One bubble, Speed’s Formula One Debrief is reporting that teams are moving away from schemes attempting to reduce costs through racing regulations in favor of flat expenditure caps.  I think this would actually be good as it would penalize diversity less and allow junior teams the track development time they so desperately need to be competitive.

Of course one of the problems is the expansion plans.  The inclusion of so many Asian events is driving up the costs of logistics and transportation, the question is whether the perceived value of name recognition and client relations from association with Formula One will be sufficient to continue to fund the lavish excesses of greedy parasites like Bernie.

Mercedes has a new exhaust.  Lotus a new wing.  We’ll be running Softs and Super Softs, the track won’t be helping them much as it will be hot and bumpy though it is a slow track, just slightly faster than Monaco.

How will the artificial lighting effect them?  Probably not much but if you’ve ever been night skiing you know it has a tendency to flatten out irregularities so what seems a minor mogul can suck your knees to your chest with compression or launch you unexpectedly.  More to the point is that the customary early evening showers are likely to wash off any ‘rubbering in’ and make the pavement slippery.  There’s not a lot of room for error on a street course, Caterham has already busted a suspension on the Jersey barriers bringing out a red flag that interrupted Friday’s second Practice.

Renault is having a real problem with their alternators in every engine they ship.  They made some modifications to give it a little more grunt that have proven disastrous from a reliability standpoint and unfortunately the defective AE35 unit in failure mode is little more than a chunk of twisted metal so post mortem diagnostics have so far been ineffective.

• Formula One Official Site
• Marina Bay
• Singapore Grand Prix
• Speed Racecast
• Guardian Interactive Circuit Guide

Race time tomorrow 7:30 am.  Any surprises below.

(Matt Taibbi on Sam Seder, h/t Susie Madrak @ Crooks & Liars)

Wall Street Rolling Back Another Key Piece of Financial Reform

Matt Taibbi, Rolling Stone

September 20, 9:33 AM ET

Jefferson County, Alabama was the most famous case – the city of Birmingham went bankrupt after being bribed and goaded into taking on billions of dollars of toxic swap deals – but in fact it was just one of hundreds of similar examples of localities being duped into suicidal financial deals by rapacious banks and financial companies. The Denver school system, for instance, got clobbered when it opted for an exotic swap deal pushed by J.P. Morgan Chase (the same villain in Jefferson County, incidentally) and then-school superintendent/future U.S. Senator Michael Bennet, that ended up costing the school system tens of millions of dollars. As was the case in Jefferson County, the only way out of the deal involved a massive termination fee that might have been even more destructive than the deal itself.

…

Sounds simple, right? But Wall Street couldn’t have that. After all, if companies are required to have a fiduciary responsibility to cities and towns, how in the world can they screw cities and towns? The idea was a veritable axe-blow to the banks’ municipal advisory businesses.

So what did Wall Street lobbyists and trade groups like SIFMA (the Securities Industry and Financial Markets Association) do? Well, they did what they’ve been doing to Dodd-Frank generally: they Swiss-cheesed the law with a string of exemptions. The industry proposal that ended up being HR 2827 created several new loopholes for purveyors of swaps and other such financial products to cities and towns.

…

So basically, if you’re underwriting a municipal bond for a city or a town, and you happen also to give the city or town advice about some deadly swap deal that will put the city into bankruptcy for the next thousand years, you don’t have a fiduciary responsibility to that city or town. The banks’ view is that being asked to perform the merely-technical function of underwriting a bond is very different from advising someone to take on an exotic swap deal – so if a bank is mainly an underwriter and happens to offhandedly recommend this or that swap deal, it just isn’t fair to drop this onerous financial responsibility, this weighty designation of municipal financial advisor, on its shoulders.

…

God forbid! Thankfully, this new law provides an exemption from that “highest standard of conduct” providing the bank or financial company is not just giving advice, but also performing a merely technical function like underwriting.

The details of this law are pretty hairy, but the basic idea is simple: provided a bank isn’t dumb enough to only provide advice, or to ask for separate compensation for advice, it doesn’t owe anyone any goddamned fiduciary responsibility. So they can keep screwing cities and towns as much as they’d like.

I haven’t been to too many concerts actually.  I find them inconvenient, crowded, and noisy.  Still, you’ve got a friend and they have tickets, who’s going to say no?

Foreplay/Longtime

People did actually dance to that for about 15 minutes in 1977.  Tom Scholz made fair amount of money in Audio Electronics.

Ahoy mateys.  It be Cap’n Hank Bloodbeard hijacking your blog ag’in.  Since the establishin’ of International Talk Like a Pirate Day in 1995, the number of Pirates has increased gratifyin’ly thereby proving the success of our Pastafarian Pirate Recruitin’ Program and confirmin’ the link between increased piracy and declinin’ Global Warmin’.

But wait ye say, Global Warmin’ has gotten worse and Pastafarianism is a made up religion contrived out of equal measures of ennui, ignorance and Rum!

WHY IS THERE NEVER ANY RUM!  Oh, that’s why.

Ye scurvy dog, them be fightin’ wards.  Ye’ll walk the plank. I’ll keelhaul ye.  I’ll see your black hearted soul in Davey Jones Locker (the one ‘e shares w’ Peter Toth).

We used to worry about that too until we took up w’ a crew o’ Freshwater Pirates from the Chicago School who explained that it doesn’t matter how consistently and thoroughly wrong ye are if ye suck up to rich people enough and parrot their prejudices, beat down the po’ folk until morale improves, and kiss their ass long and hard.  Take what ye can, give nothin’ back, yo ho.

Polly want a grant?

E’en on these shores Cap’n Bloodbeard (aside from really enjoyin’ referin’ to hisself in the thard person) be known for ‘is trail of terror and carnage and really bad puns.

• 2007 DocuDharma

• 2008 DocuDharma
• 2008 Daily Kos

• 2010 The Stars Hollow Gazette

• 2011 DocuDharma
• 2011 The Stars Hollow Gazette

I generally celebrate International Talk Like a Pirate Day by telling the 3 Pirate Jokes.  There are only 3, all the others are just variations.  As Cap’n Slappy says:

Thar be only three pirate jokes in the world. The biggest one is the one that ends with someone usin’ “Arrr” in the punchline. Oh, sure, thar be plenty o’ these, but they’re all the same damn joke.

“What’s the pirate movie rated? – Arrr!” “What kind o’ socks does a pirate wear? – Arrrrgyle!” “What’s the problem with the way a pirate speaks? – Arrrrticulation!” …and so forth.

The second joke is the one wear the pirate walks into the bar with a ships wheel attached to the front o’ his trousers. The bartender asks, “What the hell is that ships wheel for?” The pirate says, “I don’t know, but it’s drivin’ me nuts!”

And finally. A little boy is trick or treatin’ on Halloween by himself. He is dressed as a pirate. At one house, a friendly man asks him, “Where are your buccaneers?” The little boy responds, “On either side o’ me ‘buccan’ head!”

And there ye have it. A symposium on pirate humor that’ll last ye a lifetime – so long as life is violent and short.

If ye steer a course to the official website of International Talk Like A Pirate Day, ye may wish to read the FAQ, to help ye splice the mainbrace proper like.  Then ye’ll be ready to talk like a pirate.

Talking like a pirate, however, doesn’t just mean running through the hallways yelling “yarr!” at everyone. To get more in touch with one’s inner pirate, here is a short list of useful terms that may help readers throughout their day of pillaging and searching for buried treasure.

I also spend this day in Worship at Church and emulate the manners, customs, and language o’ me Pirate forbearers (I have the good fortune to be 1/4 full blooded Pirate through my Viking ancestors, indeed Viking is a verb which means ‘Pirate’) and singing some Pirate Carols.

There will come a time when you have a chance to do the right thing.

I love those moments. I like to wave at them as they pass by.

Crossposted from DocuDharma

A Rare Look at Why The Government Won’t Fight Wall Street

Matt Taibbi, Rolling Stone

September 18, 10:28 AM ET

The great mystery story in American politics these days is why, over the course of two presidential administrations (one from each party), there’s been no serious federal criminal investigation of Wall Street during a period of what appears to be epic corruption. People on the outside have speculated and come up with dozens of possible reasons, some plausible, some tending toward the conspiratorial – but there have been very few who’ve come at the issue from the inside.

…

There are some damning revelations in this book, and overall it’s not a flattering portrait of key Obama administration officials like SEC enforcement chief Robert Khuzami, Department of Justice honchos Eric Holder (who once worked at the same law firm, Covington and Burling, as Connaughton) and Lanny Breuer, and Treasury Secretary Tim Geithner.

…

Connaughton writes about something he calls “The Blob,” a kind of catchall term describing an oozy pile of Hill insiders who are all incestuously interconnected, sometimes by financial or political ties, sometimes by marriage, sometimes by all three. And what Connaughton and Kaufman found is that taking on Wall Street even with the aim of imposing simple, logical fixes often inspired immediate hostile responses from The Blob; you’d never know where it was coming from.

…

when Kaufman tried to advocate for rules that would have prevented naked short-selling, Connaughton was warned by a lobbyist that it would be “bad for my career” if he went after the issue and that “Ted and I looked like deranged conspiracy theorists” for asking if naked short-selling had played a role in the final collapse of Lehman Brothers. Naked short-selling is another controversial practice. Essentially, when you short a stock, you’re supposed to locate shares of that stock before you go out and sell it short. But what hedge funds and banks have discovered is that the rules provide “leeway” – you can go out and sell shares in a stock without actually having it, provided you have a “reasonable belief” that you can locate the shares.

This leads to the obvious possibility of companies creating false supply in a stock by selling shares they don’t have. Without getting too much into the weeds here, there is an obvious solution to the problem, which essentially would be forcing companies to actually locate shares before selling them. In their attempt to change the system, Kaufman and Connaughton discovered that the Depository Trust Clearing Corporation, the massive quasi-private organization that clears most all stock trades in America, had come up with just such a fix on their own.

…

A roundtable to discuss the idea was scheduled by the SEC on September 24, 2009. Of the nine invited participants, “all but one” were for the status quo. Connaughton expected the DTCC representatives to unveil their reform idea, but they didn’t.

The Banker Who’d Cut Social Security and Medicare – and May Become Treasury Secretary

Richard (RJ) Eskow, Huffington Post

09/17/2012 11:08 pm

Before entering public life Bowles was a banker with Morgan Stanley. He now serves on Morgan Stanley’s board, and has done so through a series of that bank’s legal issues. As Dean Baker notes, Bowles was also on the General Motors Board “from June of 2005 until it went into bankruptcy in the spring of 2009,” and “joined the board of Morgan Stanley, the Wall Street investment bank, near the peak of the housing bubble in December of 2005.”

Bowles is also on the Board of Facebook, whose IPO has been the subject of controversy and scandal. (Baker offers a fun, interactive graph of the economic performance of the companies on whose boards Bowles has served. It isn’t pretty.)

…

The Simpson/Bowles proposal is often marketed — falsely — as the product of their deadlocked and failed Presidential Deficit Commission. It claims to be “centrist” because it offers unspecified tax increases as well as cuts — probably by decimating the middle class by eliminating tax deductions for employer health care, dependent children, and home mortgage interest. It also claims “bipartisanship” because Bowles the banker is also Democratic Party insider.

The “Simpson Bowles” austerity cuts to U.S. government spending closely resemble the cuts that have devastated the economies of Europe and Great Britain. Their plan would also cut Medicare and Social Security benefits — while providing drastically lower tax rates for billionaires and millionaires.

When you look at it carefully, Simpson/Bowles only differs from the radical right-wing Republican budget in a few areas, the most important of which is this: While the Republican plan calls for no tax increases at all, the Simpson/Bowles plan says it would offset its billionaire tax cuts. But since they also lower tax rates for billionaires, millionaires and corporations, they’re left to rely like Romney on unspecified loopholes, or “tax expenditures,” which could eviscerate the tax deductions that help the middle class get health insurance and pay their mortgages.

…

Washington insiders scoff at anybody who dares question the sanctity of the “Simpson Bowles” concept. But once you leave Washington, that includes pretty much everybody. About 96 percent of the country’s voters reject their emphasis on deficits as our top priority, according to recent polling. The same poll showed that 37 percent of those polled considered “the economy and jobs” their top priority. That’s nearly ten times as many people.

That tracks closely with other poll results which showed that seventy percent of Americans were either “very uncomfortable” or “somewhat uncomfortable” with the Simpso(n)/ Bowles plan when it was released.

Meanwhile polls show that Medicare is a key issue in three battleground states, with Paul Ryan’s unpopular plan giving Democrats a decided edge on that issue. The selection of Bowles would damage that advantage if it was announced before the election, and would create a sense of betrayal if announced afterwards.

That particular form of right-wing wealth redistribution is what allows Simpson, Bowles, their funders and supporters to keep bragging that their plan is “brave.” If they were really brave they’d admit that they’re offering a right-wing austerity plan, not a “nonpartisan” solution to a long-term issue that’s receiving attention that should be focused on today’s jobs crisis.

Since Romney Raised the Issue of Freeloaders, What Is Erskine Bowles?

Dean Baker, cepr

Tuesday, 18 September 2012 04:42

Mr. Bowles has earned millions of dollars sitting on corporate boards over the last decade. The stock prices of the companies on whose boards he sat have mostly plummeted. Since 2003 the Erskine Bowles stock index has lost more than one third of its value. By comparison, the S&P 500 has risen by more than 50 percent. If Mr. Bowles was trying to serve shareholders, he has not done a very good job.

If people think that this is a private matter, with Mr. Bowles just ripping off shareholders while Governor Romney’s freeloaders are ripping off taxpayers, think again. One of the companies on whose board Mr. Bowles sat, General Motors, went bankrupt with substantial costs to the government. Another, Morgan Stanley, would have gone bankrupt without extraordinary assistance from the Fed and Treasury, which continues to this day in the form of implicit too big to fail insurance.

So, if we want to have a debate about people who freeload on the rest of the country, we should have folks like Erskine Bowles at center stage. Of course he is in a much higher income bracket than the folks who get Social Security or unemployment insurance from the government, but that fact should not be allowed to color the debate.