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Saturday, July 14, 2012

Libor, Zoloft and the Good News

 Libor is the London Interbank Offered Rate which determines the cost of trillions of dollars of  loans banks make to each other every day. It may concern you and me in ways we do not understand.

Zoloft is a drug which many anxious people use as they contemplate the ravages of time upon their minds and bodies and the results, or lack of them, they have achieved during the time period under consideration.

The good news is that neither really matters.

To be more explicit, recent revelations about rigging of the Libor rate reveal business corruption almost everywhere on an unprecedented scale. If you are a crook, Libor is the Triple Crown, the Academy Award, and the Mega Lotto prize combined. Be prepared to hear a great deal about the Libor scandal unless, of course, it all gets swept under the rug as too big to prosecute. In either case, keep your Zoloft handy because it is immensely depressing.

Think for a moment about opportunities almost everyone in business has observed to go bad, about deals proposed that were shady or choices made for fast but improper profit, or accommodation. (Just look the other way, Joe.) They abound in many, even most business and professional careers of every type. Individual people failing to do what they know is right and instead doing something they know is wrong; that's what's sick in America and the entire world today.That's what is eating away at the pillars of our society in America. Do we not realize that when someone proffers such opportunities to us it is actually a personal insult, not a useful collaboration possibility? Men quickly recognize a bar solicitation, but they sometimes miss the full implications of other more subtle choices that wouldn't withstand examination in broad daylight. But wait, here's the good news

Our travails today are just a wrinkle in the fabric of time, a down tick, if you will, in a chart that shows a powerful, even inexorable, upward trend. We have recognized in Democracy a form of government that gives people control of their destinies and what a fight it has been to vanquish kings and empires, etc. to arrive where we now are. Our present government in the United States has been called dysfunctional, but everyone knows how to fix it and it will be done!

Similarly, capitalism has soundly defeated communism and today offers its benefits to millions more yearning to be free and prosperous. Is it perfect? No way, but once again, everyone knows what has to be done to clean it up and make it better and that too will be done!

Lastly, the really Good News! We have in Christianity the religion built on love and redemption that makes people literally new and gives us hope for the life everlasting. Our God will raise up for us new leaders, more skilled and more dedicated than in the past and they will shun Wall Street and persevere in the trenches where the big decisions about right and wrong are made 24/7. Let it be so!

Monday, July 9, 2012

Events, Deah Boy!

Back in the fifties when Harold MacMillan was prime minister of Great Britain, someone asked him what would determine the success of his tenure. "Events, deah boy,"  he replied, in his richest Oxford accent, which in this country is known as Long Island Lockjaw.

And of course he was right. At this moment we have in America several major events pending, the return of some troops from Afghanistan, the Republican and Democratic conventions, the continuation of the Bush tax cuts, raising the debt ceiling, and so on. Will there be an Israeli attack on Iran's nuclear bomb making facilities, or some move against Syria? The timing is really bad for such matters, but that's the way the cookies crumble.

Our national discourse these days is only a step away from brawling. Congressmen call the president a liar and raise money as a result of their rudeness, or they state with impunity that dozens of Democrats are actually Communists. Others say the President is not even an American citizen and should be impeached!Still others call for the resignation of the Attorney General and claim that liberty will die in America if the president is re-elected. Against this background, a ship sunk or an attempted assassination of any person with name recognition might have powerful and unimaginable consequences.Literally anything is possible today and that's why I don't think anyone knows what might throw the election one way or another. We have created a toxic environment almost anyone can use for mischief and mischief at the wrong time can sway voters. Sliming your opponent pays, lying and misrepresenting facts is as normal as apple pie and it those tactics fail, go after spouses, children, anyone with ties to your enemy.

If things get any worse, let's just sit down for a moment and have a spot of tea.

Saturday, July 7, 2012

The Chief Justice and the Pope

Chief Justice John Roberts sided with liberal members of the Supreme Court last week in an historic vote largely upholding Obamacare. He did so for many cogent reasons that Pope Benedict XVI might do well to ponder.

First, Chief Justice Roberts took a positive, expansionist view of his leadership role. He was looking for a way to preserve Obamacare rather than demolish it. He was thinking about what was best for Americans and the Supreme Court that he leads. He did not wish to give the Republicans still another enormous 5-4 victory and further diminish the court's reputation for objectivity and fairness.

Chief Justice Roberts is almost as isolated from public pressure as the Pope and both men, of course, have life tenure. Surprisingly, it would appear that the Chief Justice is capable of seeing the big picture better than the Pope. The court that will forever bear his name is in serious trouble, deeply divided and increasingly bitter with each other and the public. (Justice Scalia went out of his way recently to dis President Obama and the president recorded his displeasure with the third branch of government and the Citizens v. United case in a recent State of the Union message. Moreover, I thought Justice Scalia's derisive reference to reading the 2,000 page Affordable Health Care law was truly tasteless and offensive. I do expect supreme court justices to read legislation. That's what we're paying them to do.)

As for the Pope, the Roman Catholic Church is in abysmal shape, stricken as it is with doctrinal division, pedophile priests and incredible myopia. With the greatest respect, the Pope needs to search his heart and move to change errant policies and ease the agony of his flock. People of good will everywhere suffer for their catholic friends and pray for their well being.

It's pure fantasy, I imagine, but what an opportunity there is now for healing! What if Pope Benedict XVI were to come to Yankee Stadium in the sack cloth of a penitent, barefoot, no golden garb, no regal trappings, and humbly express his most abject contrition for his sins and those of his bishops in the performance of their sacred duties. What if he apologised for persecuting American nuns, and abandoned some of the dumb orthodoxies of his church, like permitting only men to be priests. Oh, what rivers of grace would flow down, what glory would shine upon Yankee Stadium as the Holy Spirit rushed through the crowd as it did on Pentecost. The whole world would know that the Pope was thinking about the needs of his people and the sacred image of the Roman Catholic Church. That's what the Pope is supposed to do, kind of like the Chief Justice of the world's most powerful nation - a veritable city on a hill that, with God's help, has led the world in the past and now needs a little refurbishing.

Wednesday, June 20, 2012

Supreme Isolation

Back in the sixties, I was a junior partner in one of the country's largest stock brokerage firms and I   represented the firm at a meeting of business leaders (I was a spear carrier in this parade) in Newark, NJ to discuss the city's problems. I met all the brass, including the city's very controversial police chief. He gave a fine speach emphasizing what his department was doing to ensure law and order and especially to protect property values, which were zero at the time because of the infamous Newark riots. Everything was low key and business like. And then there were some questions and one touched upon the US Supreme Court. The Chief went ballistic! The smooth veneer slipped off and he literally raved about those unspeakable morons on the Supreme Court of the United States of America. His audience cringed with horror.

I wonder what can and should be said about the men and women of today's Roberts Court? How about that a majority of them are blind to reality, blatantly political or simply out of touch with the world we live in? One could say none of the above, or only that five of them are capable of really monstrous error and it would be a serious indictment. What else can one call Citizens v. United wherein corporations are people and allowed to give unlimited amounts of money in political elections as a matter of free speach? Has it really brought about what they wanted? Would the founding fathers have approved?

Does anyone, except maybe David Koch, really believe that we need more money in American elections? Over and over we have seen what happens when big sums of money become involved in these campaigns which seem never to end - more mudslinging, nonstop attack ads, more dirty tricks. Money from wherever it can be found, pollutes the our political process to the point where facts don't matter and logic gives way to theater. Bucks trump (no pun intended) everything because they can buy the best spinsters, the most imaginative attack ad promoters and contrived public " moments", even if they are shortlived. Nothing matters except election day and, of course, the type of post election spin game that got George W. Bush elected by the Supreme Court we're discussing.

Things are going to change in American elections, but how soon, no one knows and how much more damage can our system take? Americans are deeply disturbed and disillusioned by the present horror of our political system, to which a misguided Supreme Court has contibuted mightily. It's ironic like a Greek tragedy, and look where the people who invented democracy are today. They are protesting in the streets of Athens. Will Americans follow in Washington? Without big changes very soon, you can be sure of it.

Let's look at Sheldon Adelson, the casino mogul. Why would he put tens of millions that we know about into Republican coffers? He is alleged to be singularly interested in the State of Israel and we assume that he wants the lowest possible corporate tax rates, but is it possible hes has invested secretly more millions in Mitt Romney because of some deal he's made to protect Israel against Iran? Romney has been outspoken about his determination to prevent Iran from achieving a nuclear weapon. If Mr. Adelson hasn't made a deal for his millions, what if the Koch brothers want to emulate him?

If you think such pay to play deals are nonsense, consider what former British prime minister John Major testified to a week ago in the parliamentary inquiry into whether Rupert Murdoch is fit to wield huge business power in England. Mr Major essentially said that it was a rare event for a visitor to sit before a British prime minister in his office and demand a major change of national policy in return for the support of Mr. Murdoch's newspapers. Mr. Major refused to comply with Mr. Murdoch's demands and lost his support and the next national election, at least partly as a result

Mr. Adelson's money couldn't save Newt Gingrich and maybe corporate billions won't put Mr. Romney into the White House, but what about huge money in state races. We saw recently where Gov. Walker won his recall election in Wisconsin by outspending his rival 7 - 1. That may be enough to turn any election, but it's clearly possible now. Maybe Citizens v. United will be reversed or modified one day, but for now we are self inflicting great wounds on our wonderful country with this kind of foul play which serves further to drive out decent people like Olympia Snowe and Richard Lugar. These are trying days for the Supremes and I wonder if they know they aren't living up to what's expected of them..

Monday, June 18, 2012

Barry's Baby Reprise

Back in June, my blog "Barry's Baby" outlined briefly the disgust to which Americans can expect to be treated as the dirtiest political campaign in American history gets under way. It's happening as we blog.
My prediction noted, in part, that the Republicans would use the tactics taught them by the late, but unlamented Lee Atwater: they would attack the president's strengths, not his weaknesses. Indeed, those tactics worked beautifully on John Kerry who was and is a war hero, but was successfully branded as a phony by Karl Rove, George Bush's great "architect" of victory.
Mr. Rove is at it again, as he attempts through a superpac (Crossroads GPS) to paint Elizabeth Warren, the consumer advocate who is going to unseat Scott Brown and become junior senator from Massachusetts, as the person who helped pay big Wall Street businessmen fat bonuses using TARP money! Nothing of course could be further from the truth. Prof Warren is anathema to such business leaders who are staunchly defended by Republicans in Congress.
In addition, this week President Obama, who has been widely praised for his handling of foreign affairs, came under attack from Mitt Romney and other Republicans for favoring terrorists rather than the people of Israel! I'm doubling down on my bet that this is going to be the most revolting political campaign of modern times. Donald Trump is still casting doubt on the president's citizenship and it is only a matter of time before he and Atwater's other heirs claim Barry has an illegitimate child somewhere, or offer some similar calumny.

Saturday, June 16, 2012

Nah, that's not it.

David Brooks is a brainy guy who writes very well as a conservative columnist (and author) for the New York Times. His recent article entitled "What Republicans think" is, however, considerably off the mark.

Brooks says that Republicans see the current economic crisis here and abroad as the beginning of the end for the welfare state, which President Eisenhower fostered and successive presidents of both parties encouraged and funded. Now everyone has gone too far with the benefits and the house of cards is crashing. It's possible he's prematurely right, but where's the evidence? Who says so? Most of our congressmen/women don't show any sign of having world views or the ability to express them if they did. "Nah, that's not it" was my thought almost immediately, as I read his column.

What Republicans are doing is just another version of "starve the beast", ie the federal government. Did Scott Walker talk about a world view as he attacked labor unions and went after Planned Parenthood in Wisconsin? Does Paul Ryan really think the world can be fixed by socking it to the poor? There's been nothing from John Boehner about the big picture and who would listen if he did see beyond DC? Eric Cantor has spoken breezily about telling people the US can't afford retirements or benefits anymore, but he's really focused only on easing John Boehner into early retirement. Beside this, we haven't been nearly as negligent as the Greeks or those other countries where people take naps in the middle of the day and retire at 50 with full pay.

Our American  crisis would be far along on the way to recovery, in fact, if our government were functioning at even a modest level. Instead, at a time of intense crisis wherein millions of Americans are suffering severely, our politicians are working energetically against each other, focused on old partisan issues like abortion, birth control and RACE, whether it's stated or not. It is positively dumbfounding and disgusting to the point of being traitorous.

We're at a profoundly sad time in American and world history when American leadership is so greatly needed and there is nothing in Washington except gridlock, acrimony and one party's determination to bring down our first black president and return to the good ole unregulated Golden Age of the great tycoons. I don't think Republicans are really thinking at all.

Saturday, June 2, 2012

Ah, Springtime II

Spring always brings graduation days and related commencement speeches. In anticipation of numerous invitations to speak that have not materialized, due no doubt to economies imposed upon the US Postal Service, I have prepared remarks I will share with you, minus all the drivel about hard working graduates and long suffering parents.

You are graduating at one hell of a tough time and your century is going to be just as difficult as mine, or more so. Think about that for a minute. There are so many problems you need to solve immediately I am only going to touch on one because of my concern for your physical well being. That problem is simple fairness and justice, the stuff  that you supposedly learned about in grade school.

When people do bad things they must be identified and punished. If there is to be law and order in this land that we love there has to be accountability. Without that guarantee things go down hill fast. Fair and equal justice is a core value. If the core rots everyone is in terrible danger and in many cases justice delayed is justice denied. That's what is happening as I speak.

So tell me, esteemed graduates, should people who betray the trust of our nation by leading us into 2 wars (!) improperly and under false pretenses be punished at least minimally? Too tough a matter for this fine day? OK, let's consider something less complicated: should people and institutions who brought our banking system almost to its knees and caused a mortgage crisis of unprecedented severity (great pain to millions) be punished or rewarded?  How about the rating agencies, Moody's, Fitch and Standard & Poors? Want to throw in the SEC and the robo signers speeding foreclosures along the way?

Getting down to the bone, what kind of justice should be handed to the top CEOs at the too big to fail banks, Citi, Goldman, Morgan Stanley and JP Morgan Chase? Shouldn't we include for punishment also some of the directors of those companies who have been grossly neglient and careless? Why that's anti-business thinking, at best, and contrary to our free enterprise system in addition, you might say. I must be a commie for even thinking of such an assault on the democratic system. No way! I want it to continue better and stronger than ever and that can be achieved only by putting some accountability back into the mix. It has been missing for too long in this age wherein no one ever resigns and few are convicted. Remember Sherman in Tom Wolfe's Bonfire of the Vanities?He wondered if he'd be socially ostracized for his infidelity and other sins that had become public information only to discover that all was well and his friends merely shared his discomfort while he endured his 15 minutes in the spotlight.

Consider also now what to do with leaders who deliberately publish campaign information they know to be false, or totally twisted? The headline is front page news, the retraction, if there even is one, is on page 37, next to cat-up- a- tree stories. America's election commisssions and ethics committees are jokes and are simply augmenting the decay of our society.

Lastly, is it just or fair that a tiny portion of our nation's population ends up fighting our misbeguided wars? I know you're draft bait, but this question may be the clincher for whether or not you got what you came here for and whether or not you'll be able to do good stuff with it. Thanks for inviting me and accept my appologies for not delaying my departure to answer questions. Did I mention that  I was on the varsity track team?