New York Times
Why Creditors Should Suffer, Too
By TYLER COWEN
April 4, 2009
THE Obama administration’s proposals to reform financial regulation sound ambitious enough as they aim to bring companies like A.I.G. under a broader umbrella of government rule-making and scrutiny.
But there is a big hole in these proposals, as there has already been in the government’s approach to bailing out failing financial companies. Even as they focus on firms deemed too big to fail, the new proposals immunize the creditors and counterparties of such firms by protecting them from their own lending and trading mistakes.
This pattern has been evident for months, with the government aiding creditors and counterparties every step of the way. Yet this has not been explained openly to the American public.
In truth, it’s not the shareholders of the American International Group who benefited most from its bailout; they were mostly wiped out. The great beneficiaries have been the creditors and counterparties at the other end of A.I.G.’s derivatives deals — firms like Goldman Sachs, Merrill Lynch, Deutsche Bank, Société Générale, Barclays and UBS.
These firms engaged in deals that A.I.G. could not make good on. The bailout, and the regulatory regime outlined by Timothy F. Geithner, the Treasury secretary, would give firms like these every incentive to make similar deals down the road.
Thursday, April 9, 2009
Dead mayor re-elected by US town
Though in the first case, the other alternative was Ashcroft. So perhaps this says way more about the other guy...
Hadn't seen the post below. Clearly this is annudder case of zombies out & about. You have been warned.
Zombies are everywhere. (See? Ed.)
There are books galore, movies in the works, perhaps a Broadway play. There's even a zombie march in Cambridge, Mass., at noon this Sunday...
Seth Grahame-Smith, author of Pride and Prejudice and Zombies written with Jane Austen (Quirk Books, $12.95), a book best described as Mr. Darcy meets Dawn of the Dead, says zombies connect because they're lovable menaces, funny, and easy metaphors.
"They've always been used to skewer the ills of society," he says. "It's not surprising they're making a comeback in these intense times."
They're not just for grown-ups.
The Forest of Hands and Teeth by Carrie Ryan (Delacorte Press for Young Readers, $16.95) is a tale of teen angst in a post-apocalyptic world. There's also Zombie Queen of Newbury High by Amanda Ashby and You Are So Undead to Me by Stacey Jay, both in stores, and Strange Angels by Lili St. Crow, on sale May 14.
Wednesday, April 8, 2009
Walgreens has pulled a Barack Obama version of the Chia Pet from its stores, and the decision leaves about 200,000 of the pottery plant kits in a West Side Chicago warehouse.
The Deerfield-headquartered drugstore chain made the move Friday after getting a few complaints about the item since the product's April 1 launch, a spokeswoman said...
The $19.99 Chia Obama, which sprouts foliage in the space where hair would be, is still available at chiaobama.com... YAY!
Tuesday, April 7, 2009
Corporal: I am excited about Cutler. All they need now is to grab Harrison or Holt or Boldin (now that T.O. is in Buffalo) and they can have an incredible offense with their backfield and their tight ends.
Ranger: Do you think they are going to do that?
Corporal: I read that Pace signed with them 30 minutes after hearing Cutler signed. It is going to be a chance for him to go out with a good team, and possibly some playoff games. I think that the wide receivers may have the same line of thought.
Ranger: That makes some sense, but I'm concerned...
Corporal: All they need is a good wideout opposite Hester and someone is going to get single coverage. Cutler can carve them up then.
Ranger: Isn't it more likely that Angelo says "by signing Cutler we have already immeasurably upgraded our offense ... he will make our receivers better ... we didn't see any reason to go out now in an effort to upgrade an already upgraded receiving corps(e)."
Corporal: [silent indignation].
Monday, April 6, 2009
Fung would not normally put up a Scumchester highlight. But this was phokking awesome. As in it filled me with awe. And rage at the same time. If Scumchester win da Premier League on dat goal, well, Fung may as well start rooting for da cubbies too, for they, like Liverpool, will be waiting for quite a while for their next championship...