Posts Tagged ‘goingbackwardville’

TGIF And Predictions

Friday, August 28th, 2009

These were the events that mattered this week:

*Ted Kennedy died. A great American and a great Senator. Gorilla thinks his kind of liberalism seems as dead as can be in the world of Movingforwardville.

*Lots more talking about Middle East Peace. Gorilla thinks the odds of a serious peace process are about as remote and as good as they’ve been in the past 60 years.

*No real seriousness about health care reform. The crazies still rule the roost and the President doesn’t want to take on vested interests. Gorilla says we’ll get very little more than window dressing passed this year.

*Afghanistan continues to spiral downwards. There’s plenty of recognition that our policy isn’t working, but very little realism about what we can do to make things work. Gorilla believes we’ll be surging to withdrawl within 18 months.

*Goingbackwardville keeps getting in the President’s way. CIA torture, ever larger banks gaining ever freer passes to moral hazard, and rewarding the failures of Ben Bernanke et. al. with another term: Gorilla wonders when if ever we’ll decide that stupidity isn’t the first and only policy option.

*The dollar carry trade is the next bubble in international finance. We’ve become the new Japan, with the same old insolvent banks. Gorilla guesses this means we are the old Japan, with the same old insolvent banks.

Share

Too Big To Tax Smaller

Thursday, August 27th, 2009

The chief British financial regulator, Lord Turner, thinks it would be a good idea to tax bank profits more so as to reduce the size of the financial services sector.

Would that such words were ever uttered in Washington, DC by any or all of our vast army of regulators!

But that’s a song from Goingbackwardville, not a consituency with much clout these days.

In Movingforwardville we must retain, but not rein in, the comparative advantage of banks losing trillions on behalf of the US taxpayer. High paying jobs are at stake!!!

So, any chance of Tobin taxes on Wall Street?

Gorilla answers: “So long as the same regulators and their political overseers remain in charge of what Lord Turner called the efficient market train wreck, um, no”.

Share

Talking About Talking

Tuesday, August 25th, 2009

When it comes to Israel and the Palestinians, that’s been about it for 60 plus years in Goingbackwardville.

We now have to deal with an Israeli leader who has never supported the peace process or the two state solution.

We also have to deal with a divided Palestinian polity, and we will not (yet) negotiate with Hamas.

So, Movingforwardville will host another round of talking about talking, accompanied by phony gestures like temporary settlement halts and independence declarations.

Victory won’t be declared, thumbscrews will not be tightened, and we’ll wait around for yet another pivotal/inconclusive/provocative/defensive bit of unilateralism.

Gorilla is relatively optimistic: “Oh well, it’s not like Afghanistan, we’ve still got another 90 years or so to achieve a truly bleak level of quagmire!”

Share

“The Lawyers Did It”

Tuesday, August 25th, 2009

How does the SEC justify Bank of America’s failure to inform shareholders about the bonuses paid to Merrill Lynch executives prior to the companies’ merger?

By blaming the lawyers!

After all, if you’re the chief executive of Bank of America or Merrill Lynch, you aren’t responsible for your own decisions if they were largely made by lawyers your company employs. This is very curious, in that the same executives are supposed to be responsible for all financial statements they sign off on under Sarbanes-Oakley.

But these boys are clever, they managed to set things up so that their patently unethical and illegal non-disclosure of material facts was protected by attorney-client privilege!!!

Bank Of America remains insolvent, so their shareholders are screwed either way. Executives won’t be able to cover that up much longer (unless they manage to buy off Congress and change the accounting rules again), so we should see Goingbackwardville pushing back against the phony reforms of Movingforwardville by the end of the year.

Gorilla sums it up: “When the rubber stamp meets the road on Wall Street, you can bet the SEC will be changing the tires!!!”

Share

Failure Is Rewarding

Tuesday, August 25th, 2009

Well it’s not the Medal of Freedom for George Tenet, but reappointing Ben Bernanke as Fed Chairman is another example of how Goingbackwardville rewards failure to keep Movingforwardville in line.

Ben Bernanke totally missed the housing bubble. He didn’t raise interest rates enough in 2006, so as to please his White House masters. The subsequent crash of world financial markets led to a “rescue” involving the Fed more or less giving up its independence to become a SIV for the US Treasury. We still don’t know the extent of toxic assets losses, and Bernanke himself has refused to engage in the kind of transparency that would prevent these debacles from happening in the future.

Other than Greenspan (and Bernanke sat at his right hand throughout the past decade), it’s hard to think of a worse Fed Chairman or one less deserving of reappointment. But he’s in Wall Street’s pocket as much as the President who appointed him, so why be surprised?

Gorilla says: “Wonder when success will be rewarded? That will be real news!”

Share

A Hig And A Poke

Monday, August 24th, 2009

Dunderheads are go!!!

Fresh from yet another round of revelations in Goingbackwardville, the Administration has decided to set up the High Value Detainee Interrogation Program or HIG to deal with high value detainees in the future, assuming we actually catch any.

Mostly, this is about Movingforwardville wanting to appear to be more reasonable, namely by having the Army field manual be the basis for interrogations, having the State Department along for the ride to Extraordinary Renditionville, and coordinating, yet again, the training and methods used by the FBI, CIA, and other interrogating bodies.

Of course, extraordinary rendition and secret prisons will continue, and continue to produce absolutely nothing of any intelligence value, but that’s more important than things like habeas corpus or holding officials accountable for authorizing and condoning torture.

Gorilla thinks: “A HIGup is better when the jig’s up, I suppose!”

Share