JUST NATIONALIZE IT: AIG Is Too Stupid To Live
Wednesday, March 18th, 2009
WASHINGTON POST: A tidal wave of public outrage over bonus payments swamped American International Group yesterday. Hired guards stood watch outside the suburban Connecticut offices of AIG Financial Products, the division whose exotic derivatives brought the insurance giant to the brink of collapse last year. Inside, death threats and angry letters flooded e-mail inboxes. Irate callers lit up the phone lines. Senior managers submitted their resignations. Some employees didn’t show up at all. MORE
TIME: The rescue of AIG is warping the banking system and unnecessarily extending the credit crisis. This
misguided effort stems from a lack of transparency and some basic misconceptions about AIG’s business. […]But there’s a true insight into this mess if you just step back and consider the bigger picture, not just AIG. Regardless of the details of the various swap contracts, they all represent potential transfers of wealth between financial institutions. If we consolidated the entire financial sector, all these debts would effectively vanish. […] At the very least, there should be full transparency. Any institution receiving money from the government — and ultimately from American taxpayers — should reveal its holdings. Even institutions that do not require a bailout should be more closely tracked by regulators. The government can and should monitor all transactions, even those over-the-counter. We have focused too much on each individual bank and its possibility for failure. The economy does not need every bank to survive; it needs most. Right now, we need to know which ones. By propping up financial institutions that are subject to unknown potential losses, the government is prolonging the uncertainty about whether they will fail. This perpetuates the crisis of confidence in which banks do not trust one another enough to loan money. MORE
NEW YORKER: Another option—which recently received the reluctant endorsements of even Alan Greenspan, James Baker, and Lindsey Graham—is temporary nationalization: the government takes over the most troubled
banks, splits off their toxic assets, puts those assets in a publicly owned “bad bank,” and sells off the healthy parts of the businesses. After a ruinous boom-bust cycle in the late nineteen-eighties, some Scandinavian governments followed this approach. Within a couple of years, their economies were recovering strongly, and the Swedish government ended up making a profit. Here the strategy could punish irresponsible bankers (whose shares and options would be wiped out), avoid having to put a price on the toxic stuff, and enable the government to order the institutions under their control to make more loans.

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Expressions of outrage across the 

how you’re capitalizing on your access just to trivialize these impoverished communities. I’m sure if they followed your twitter they would feel clowned. It especially stings that you’re getting these quotes while on the “job”, which I would assume is some sort of community services job. You’re there to help. So start.
THE WORLD CAFE
forbidden. Such selective censorship may explain some of the more, ahem, unique fixtures Japanese sexuality, such as 


PHILLY CLOUT: Mayor Nutter just announced that his upcoming budget won’t include layoffs in the police or fire departments. Nutter, joined by Police Commissioner Charles Ramsey and Fire Commissioner Lloyd Ayers, also said there will be no closures of facilities or elimination of equipment. His plan last fall to close libraries and eliminate fire companies drew legal challenges and prompted wide-spread controversy. “I refuse to do anything that halts our progress on a march to a safer city,” Nutter said. Nutter – who must close a five-year $1 billion budget shortfall — is set to release his budget and five-year financial plan in City Council on Thursday. 

FRESH AIR

A Miami man upset by his estranged wife’s affair with a younger man intruded on a party early Sunday and killed her, the woman’s daughter, grandmother and boyfriend. Before cops could catch up to him, police said, he set his home and truck on fire, then shot himself. Detectives on Sunday afternoon were piecing together the carnage of what marked the second high-profile murder-suicide in three weeks in Miami-Dade County. Last month, a South Miami-Dade man killed his wife and two teenage daughters before killing himself. The shooting began shortly after midnight Saturday when Lopez barged into a party at a duplex near Coral Gables. Fifteen family members and friends had gathered to celebrate the 27th birthday of the male victim, according to Miami homicide detective Sgt. Ervens Ford. From behind the duplex at the 2852 SW 38th Court, neighbor Santos Estrada said he heard a woman shouting ”`You’re crazy!”’ and “`What are you doing here?”’ A man told the woman to shut up, said Estrada, who then heard 8 to 10 shots fired. Then a pause, followed by the sound of more bullets. A video recorded by another neighbor captured the sound of 27 gunshots in all. Lopez jumped into a 2006 red Ford Tacoma parked at the end of the block and drove off. Lopez sped to his duplex, in the 700 block of Southwest 33rd Avenue, in Little Havana. There, he set his truck on fire. And then, his house. As the place burned, he shot himself. [via
The trial has begun of Josef Fritzl, the Austrian man accused of holding his daughter captive for 24 years and fathering seven children with her. TV pictures showed the 73-year-old entering the courtroom with his face concealed by a blue file. He refused to answer questions from journalists. He faces charges of rape, incest, coercion, enslavement and deprivation of liberty. He is also accused of the murder of one of his daughter’s children. The case, seen as one of the biggest in recent Austrian history, is attracting intense media interest. Escorted by six policemen and dressed in a grey suit, Mr Fritzl made the short walk down the corridor from his cell to the courtroom, where journalists tried unsuccessfully to question him before the judges arrived. Speaking in a weak voice, Mr Fritzl gave the judges his name and other personal details. An estimated 200 journalists are in the town of St Poelten for the trial. However, fewer than 100 were allowed inside the courthouse, and camera crews and photographers were told by judges to leave shortly after the trial started. Mr Fritzl put down the blue folder only after they had gone, Reuters news agency reported. [via
In 1977, President Jimmy Carter asked Congress to decriminalize marijuana possession (it never did). The next year, the Ladies Home Journal described a summer jazz festival on the White House’s South Lawn where “a haze of marijuana smoke hung heavy under the low-bending branches of a magnolia tree.” The late 1970’s may have been the high-water mark for permissiveness regarding marijuana. But advocates of decriminalized pot believe a confluence of factors, especially the country’s economic malaise, are leading to another countrywide reappraisal of the drug. “There is momentum of the sort I haven’t seen since I’ve been involved in this,” says Ethan Nadelmann, executive director of the New York-based Drug Policy Alliance, which supports easing marijuana laws. He says incidents like then-candidate Barack Obama’s early admission of pot use or the flap over Olympic swimmer Michael Phelps’s bong-smoking may lead to initial public hand-wringing, but in the end they tend to legitimize pot use. So does the growing recognition of medical marijuana. But, he adds, “the economic crisis is the single most important factor” in this new shift in perceptions. That’s because the ailing economy is triggering a scramble for new government savings or sources of revenue. Nadelmann compares today’s marijuana laws to alcohol prohibition, approved during prosperous times in 1920 only to become unpopular during the Great Depression. Prohibition was finally repealed in 1933, in part due to the cost of reining in illegal booze and the need to recoup lost tax revenue in tough economic times. As he signed a law easing prohibition, President Franklin Roosevelt reportedly quipped, “I think this would be a good time for a beer.” [via 
VILLAGE VOICE: Though we may be the lone strangers on this one, companion-less contrarians careless of the compulsory crit-pick of Crazy Rhythms, likely the only thing writer Rick Moody and I have in common is our commitment of needle to the Feelies’ Good Earth vinyl over a thousand times apiece. Easy. This, the band’s second album–released in 1986, a good half-dozen years after their debut, Crazy Rhythms–served as the soundtrack to Moody’s own novelistic debut, 1992’s Garden State. (No, not that Garden State. This Garden State is set in Hoboken and bereft of anyone remotely resembling Natalie Portman.) Like the book Moody wrote while playing it over and over and over, the Feelies’ sophomore effort — thanks to vocals so buried they might’ve reached China — reeks of the now-removed warehouse-industrial side of Ol’ Blue Eyes’ hometown. Mellifluous, yet murky. As if singing a sprightly shadow. The album (nominally co-produced by R.E.M. guitarist Peter Buck) not only bridged the gap from the Velvet Underground to college radio, it also paved the way for Hoboken geek rock (They Might Be Giants, Yo La Tengo, etc.). And while I’m not suggesting this is a good thing, the multi-platinum equation that was the Counting Crows’ August and Everything After is near-equal parts Van Morrison (vocals) and the Feelies (music). 










