Archive for November 7th, 2007

Famous Last Words

The markets began to tank in August. The market cheerleaders said it was nothing to worry about.

Three months later and the economy continues to deteriorate, as you can find out from any number of sources. I won’t belabor the point. However, this FASB 157 rule (Federal Accounting Standards Board) changing on 11/15 will probably open up another can of worms, forcing banks to value level 3 assets at market value, as opposed to the “unobservable” (ie: pretend) values that have been on the books so far.

And guess what now? New reliable estimates suggest that using these market prices – rather than level 3 model gimmicks - will lead to losses of another $100 billion on top of hundreds of billions of subprime losses. And some market participants are already talking – quite realistically – about total losses from this credit disaster in the $500 billion range.

Nouriel Roubini has the details. Check out the comments. Even if you don’t follow the strange world of finance, you can’t miss the horror emanating from those who do. This is a big chocolate mess. Someone has linked to the financial petition I mentioned here.

Mythic Nation

Clearly this country has gone off the rails in the past few years. Three-quarters of people recently polled say we’re on the wrong track. True, many people approved this track when we got on it, but now they don’t. Still talking past each other, however, we can’t seem to figure out how to fix this mess. Why?

There’s a subterranean conversation going on in this country, and it’s a conversation about theological concerns: God, justice, mercy, redemption, judgment. Many people believe in American Exceptionalism, and this belief lies at the root of our problems because it places our country in a particular relationship to other nations and to God. But even bringing such things up can ruin a perfectly good time. Patriotism to one person may be idiocy or treason to another.

I think it’s very important to become aware of the subtexts in our national conversation. We need to understand how we’re manipulated by essentially good intentions, namely love of country. This article does a great job laying out the confluence of religion and politics. Here’s how it starts…

American foreign policy is built on a deep foundation of Christian theology. Some of the people who make our foreign policy may understand that foundation. Most probably aren’t even aware of it. But foundations are hidden underground. You can stand above them, and even take a strong stand upon them, without knowing they are there. When it comes to foreign policy, we are all influenced by theological foundations that we rarely see.

It’s very enlightening.

Background Noise

Some days, Somerby just gets right to the point about our inane press corps. Today is one of those days. Read the whole thing, but here’s the crux of it.

Sadly, Johnson’s profile—and Orth’s inane report—give us a (partial) picture of our multimillionaire press corps. Liberals need to come to terms—badly—with what this picture means.

For ourselves, we’ve never met Orth; we’ve chatted with Russert a couple of times, and yes, he’s the nicest guy in the world. But multimillions affect even nice people, even those whose spouses started out in the Peace Corps. Human nature makes it plain: You simply can’t have a middle-class democracy with a multimillionaire press corps. That’s especially true when that multimillionaire press corps works the way our current group does, with narratives invented at the top, then parroted by the eager young climbers who hope to be rich players too.

What happens in a middle-class nation when multimillionaires run the press corps? Citizens are handed perfect monstrosities, of the type they were served on last night’s Hardball. Chris Matthews is a Welch-endowed multimillionaire too; he too summers, with Jack, on the Island of Swells. In what follows, we see the kind of brain-rotted swill he dished to the rubes and the peons last night. Once again, Matthews was deeply troubled by videotape in which Hillary Clinton could be seen clapping her hands. He spoke with Julie Mason, Jonathan Capehart and Matt Continetti, a trio of fresh-faced, eager young climbers who would never dream of telling their host that he’s a certified nut-case.

The scripts run like background noise, all the time, setting the tone for everything. It goes like this: Democrats lie…they’re no fun…they can’t handle the job…they are phonies…Republicans tell the truth…they are fun….they are tough…they are regular people…We media celebrities are just like you, listen to us, we are just like you…..

The scripts are mind-numbingly dumb. However, promising pundits know to follow the yellow brick road, which leads to Nantucket.

As Somerby reminds us from time to time, the press corps has made a joke out of our national discourse. No doubt they have caused grave harm in the process. If you doubt this or still believe in the dreaded “liberal bias”, please read The Daily Howler and may the scales fall from your eyes.

Update on Barksdale

A must read at No Quarter.