Juan Enriquez

October 31, 2008 § Leave a comment

http://vimeo.com/2089382

 

 

I hope everyone is fairly well up to speed on the deeper understanding of the financial industry and its problems for us. If not, this is a good summary, but with a very strong editorial bias  hidden a  bit by a professorial tone that is slightly preacher like, and hypnotizing..  

I notice in this video he keeps using "we", "our", and "your", but the we keeps shifting reference. Like he says "here is what happened to your personal savings rate." But the we here is also vague. It certainly is not the savins rate of the top .001 percent of the population that vastly incresed wealth last year ( this year is still a bit of a mystey, but certainly a wealthy person with cash (lets talk several million in dollars) is in a much better position now than six months ago.)  

So this last few decades has done very well for some, as it was designed to do. Not the same we. He want sto incanae us all into the same boat.  

His soc security analysis avoids the fact that simply increasing the cut off at the top would save the system, even now. The gneral procedure of the owning class will be to pass debt off onto ohers. Cutting soial security is one of many ways to do it.  

So he is for cutting without looking at those who got the vast amount of wealth out of the system.  

In short it is a plea to not upset the capital innovation system, assuming that it is dependent on current cash flow,but current cash flow is mostly to the financial industry, which he leaves in tact. Tech innovation would flourish with incentives short of the 100 million dollar payouts to execs and the, what was it 3 billion (yes) bonuses at Lehman last year?  

So while the numbers are right, their framing, diagnosis and treatment are very partisan.  

What  I feel we need to consider is that Obama will succomb to this kind of mainstream analysis and not deal with the economy below that of the tech-financial sectorand its needs, keeping our miliary and financial institutions more or less where they are..  

To follow in this serious vein, my concern is that the promise of biotech and nanotech cannot be realized if they are mere instruments of wealth transfer. Look at the food industry as a model of how these openings to a better future can be subveted to a financial system that will turn increasingly authoritarian as resistance mounts. Resisane based on incresing poverty.  

Juan is a beleagured biotech venture capitalist so – beware. understand his plight but realize that he is playing inside a limited and i think self defeating social vision.

notes oct 30, 2008

October 31, 2008 § Leave a comment

Good summary of transition efforts.

The transition of power from one administration to another is never without its complications. This one — coming at a time of great financial crisis and war — seems particularly dicey. But Bush and his aides appear committed to making everything go as smoothly as possible

The American Conervative has an interesting seines of perspectives on the election by "conservatives." Well worth parsing out the various positions.

debt

 

notes oct 29 2008

October 30, 2008 § Leave a comment

Reading  Robert Harrison Forests, Read his last book, Gardens and the Human Condition.

7:00 am ; when forest people discovered the sky and its signs, the forest cover became negative.

birds in the sky the firs language – vico

marriage is a way to obtain security, a ritual of steadfastness.

clear the forests for genealogical trees. – vico

burial claimed the earth.

trees deep source of symbols

 

9:42

 

from calculated risk

According to the Census Bureau, 17% of new homes sold in Q3 2008 were financed with FHA loans. This is up from an average of 4% in the 2005 through 2007 period.
This huge percentage increase in FHA loans was partially driven by Downpayment Assistance Programs (DAPs). These programs allowed the seller to provide the buyer with the downpayment by funneling the money through a charity.

 

New York Times:

It is starting to appear as if one of Treasury’s key rationales for the recapitalization program — namely, that it will cause banks to start lending again — is a fig leaf, Treasury’s version of the weapons of mass destruction.

In fact, Treasury wants banks to acquire each other and is using its power to inject capital to force a new and wrenching round of bank consolidation. As Mark Landler reported in The New York Times earlier this week, "the government wants not only to stabilize the industry, but also to reshape it." Now they tell us.

Indeed, Mr. Landler’s story noted that Treasury would even funnel some of the bailout money to help banks buy other banks. And, in an almost unnoticed move, it recently put in place a new tax break, worth billions to the banking industry, that has only one purpose: to encourage bank mergers…

First [Treasury] says it has to have $700 billion to buy back toxic mortgage-backed securities. Then, as Mr. Paulson divulged to The Times this week, it turns out that even before the bill passed the House, he told his staff to start drawing up a plan for capital injections. Fearing Congress’s reaction, he didn’t tell the Hill about his change of heart.Now, he’s shifted gears again, and is directing Treasury to use the money to force bank acquisitions. Sneaking in the tax break isn’t exactly confidence-inspiring, either.

notes oct 29 2008

October 29, 2008 § Leave a comment

Reading  Robert Harrison Forests, Read his last book, Gardens and the Human Condition.

7:00 am ; when forest people discovered the sky and its signs, the forest cover became negative.

birds in the sky the firs language – vico

marriage is a way to obtain security, a ritual of steadfastness.

clear the forests for genealogical trees. – vico

burial claimed the earth.

trees deep source of symbols

 

9:42

 

from calculated risk

According to the Census Bureau, 17% of new homes sold in Q3 2008 were financed with FHA loans. This is up from an average of 4% in the 2005 through 2007 period.
This huge percentage increase in FHA loans was partially driven by Downpayment Assistance Programs (DAPs). These programs allowed the seller to provide the buyer with the downpayment by funneling the money through a charity.

 

New York Times:

It is starting to appear as if one of Treasury’s key rationales for the recapitalization program — namely, that it will cause banks to start lending again — is a fig leaf, Treasury’s version of the weapons of mass destruction.

In fact, Treasury wants banks to acquire each other and is using its power to inject capital to force a new and wrenching round of bank consolidation. As Mark Landler reported in The New York Times earlier this week, "the government wants not only to stabilize the industry, but also to reshape it." Now they tell us.

Indeed, Mr. Landler’s story noted that Treasury would even funnel some of the bailout money to help banks buy other banks. And, in an almost unnoticed move, it recently put in place a new tax break, worth billions to the banking industry, that has only one purpose: to encourage bank mergers…

First [Treasury] says it has to have $700 billion to buy back toxic mortgage-backed securities. Then, as Mr. Paulson divulged to The Times this week, it turns out that even before the bill passed the House, he told his staff to start drawing up a plan for capital injections. Fearing Congress’s reaction, he didn’t tell the Hill about his change of heart.Now, he’s shifted gears again, and is directing Treasury to use the money to force bank acquisitions. Sneaking in the tax break isn’t exactly confidence-inspiring, either.

notes oct 28,2008

October 29, 2008 § Leave a comment

Good articles around Bush and the movie,W.

The military was ready, and the invasion looked like it was going to be easy. Congress and the public supported it. And the press, very much including myself, was not inquisitive enough to dig deeper into the allegations of weapons of mass destruction.

suggests that America likes winning, and given the option doesn’t question.

Sachs

October 28, 2008 § Leave a comment

in the FT writes about he need to move beyond protecting the banks. Can we understand his proposal?

Before our political leaders get too fancy remaking capitalism next month at the Bretton Woods II summit in Washington, they should attend to urgent business. Since the closure of Lehman Brothers triggered a global banking panic, political leaders in the US and Europe have successfully thrown a cordon round their banks to prevent financial meltdown. What they have not done yet is to co-ordinate macro economic policies to stop a steep global downturn. This is the urgent agenda

Advice from seven Nobel laureates on fixing the economy.

Krugman.copy Roosevelt’s 100 days.aid distressed governments,pas a stimulus package.Public works spending. Expanded regulation in capital requirements and oversight.  Health are reform.

Michael Spence,Stanford and Hoover.reset terms on montages, make sure short term credit is working, stimulus and dealing with budget deficit, international cooperation and regulation. Another sec like Paulson ..

Stiglitz, to deal with unemployment and little cash we need green and infrastructure projects., raise taxes, bring don cost of military and health.

Edward Prescott.- changing the rules can have unintended consequences. Don¬ít raise taxes on the wealthy.Let the fed do is  thing.

Eric Maskin: get money to the banks.they will do he right thing with it.

Ed Phelps. submit CEO salaries to votes of shareholders. make sure banks have best and worst case scenarios. subsidize business to invest.

Clive Granger, credit markets,employment and business incentives.

Seem to not deal with skewed wealth, corruption, and gaming the system.

Notes oct 26

October 27, 2008 § Leave a comment

Reading Poovey’s Genres of the credit economy. The key point is that literature and written money (contacts paper), diverged in the 1700’s. Which means hat for a while they were the same!

economy supported not the nation as a whole but only people who benefited from Britain’s "funding system”: the directors of the Bank of England, stockholders, and the members of Parliament who protected them. Cobbett was also engaged in a debate, then, but, because most establishment writers wrote primarily to and for each other, he staged this debate in the pages of his writing. By incorporating the words of his opponents into his own texts, he tried to reverse the process by which the economic establishment tried to marginalize him. By highlighting the position of marginality that Cobbett simultaneously embraced and was assigned, I explain both the ambition and the limits of his campaign: he wanted to expose the fiction inherent in paper money to bring the government down, but members of the economic establishment simply insisted that paper was not fiction and that, even if it was, it was a fiction necessary to Britain’s prosperity. The third debate I consider in this chapter, the protracted discussions that led up to the passage of the 1844 Bank Act reveals how economic writers developed an increasingly technical vocabulary to account for phenomena that contemporaries found deeply troubling..

This is anoher amazing book from her, the first i read being The History of the Modern Fact.

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