By Naomi Klein for the Washington Post
I vote to banish Larry Summers. Not from the planet. That wouldn't be nice. Just from public life.
The criticisms of President Obama's chief economic adviser are well known. He's too close to Wall Street. And he's a frightful bully, of both people and countries. Still, we're told we shouldn't care about such minor infractions. Why? Because Summers is brilliant, and the world needs his big brain.
And this brings us to a central and often overlooked cause of the global financial crisis: Brain Bubbles. This is the process wherein the intelligence of an inarguably intelligent person is inflated and valued beyond all reason, creating a dangerous accumulation of unhedged risk. Larry Summers is the biggest Brain Bubble we've got.
Brain Bubbles start with an innocuous "whiz kid" moniker in undergrad, which later escalates to "wunderkind." Next comes the requisite foray as an economic adviser to a small crisis-wracked country, where the kid is declared a "savior." By 30, our Bubble Boy is tenured and officially a "genius." By 40, he's a "guru," by 50 an "oracle." After a few drinks: "messiah."
The superhuman powers bestowed upon these men -- and yes, they are all men -- shield them from the scrutiny that might have prevented the current crisis. Alan Greenspan's Brain Bubble allowed him to put the economy at great risk: When he made no sense, people assumed that it was their own fault. Brain Bubbles also formed the key argument Greenspan and Summers used to explain why lawmakers couldn't regulate the derivatives market: The wizards on Wall Street were too brilliant, their models too complex, for mere mortals to understand.
Back in 1991, Summers argued that the subject of economics was no longer up for debate: The answers had all been found by men like him. "The laws of economics are like the laws of engineering," he said. "One set of laws works everywhere." Summers subsequently laid out those laws as the three "-ations": privatization, stabilization and liberalization. Some "kinds of ideas," he explained a few years later in a PBS interview, have already become too "passé" for discussion. Like "the idea that a huge spending program is the way to stimulate the economy."
And that's the problem with Larry. For all his appeals to absolute truths, he has been spectacularly wrong again and again. He was wrong about not regulating derivatives. Wrong when he helped kill Depression-era banking laws, turning banks into too-big-to-fail welfare monsters. And as he helps devise ever more complex tricks and spends ever more taxpayer dollars to keep the financial casino running, he remains wrong today.
Word is that Summers's current post may be a pit stop on the way to the big prize, Federal Reserve chairman. That means he could actually make "maestro."
Mr. President, please: Pop this bubble before it's too late.
Monday, April 20, 2009
What Are We Really Drinking????
By Jeff Donn, Martha Mendoza and Justin Pritchard for the Associated Press
U.S. manufacturers, including major drugmakers, have legally released at least 271 million pounds of pharmaceuticals into waterways that often provide drinking water _ contamination the federal government has consistently overlooked, according to an Associated Press investigation.
Hundreds of active pharmaceutical ingredients are used in a variety of manufacturing, including drugmaking: For example, lithium is used to make ceramics and treat bipolar disorder; nitroglycerin is a heart drug and also used in explosives; copper shows up in everything from pipes to contraceptives.
Federal and industry officials say they don't know the extent to which pharmaceuticals are released by U.S. manufacturers because no one tracks them _ as drugs. But a close analysis of 20 years of federal records found that, in fact, the government unintentionally keeps data on a few, allowing a glimpse of the pharmaceuticals coming from factories.
As part of its ongoing PharmaWater investigation about trace concentrations of pharmaceuticals in drinking water, AP identified 22 compounds that show up on two lists: the EPA monitors them as industrial chemicals that are released into rivers, lakes and other bodies of water under federal pollution laws, while the Food and Drug Administration classifies them as active pharmaceutical ingredients.
The data don't show precisely how much of the 271 million pounds comes from drugmakers versus other manufacturers; also, the figure is a massive undercount because of the limited federal government tracking.
To date, drugmakers have dismissed the suggestion that their manufacturing contributes significantly to what's being found in water. Federal drug and water regulators agree.
But some researchers say the lack of required testing amounts to a 'don't ask, don't tell' policy about whether drugmakers are contributing to water pollution.
U.S. manufacturers, including major drugmakers, have legally released at least 271 million pounds of pharmaceuticals into waterways that often provide drinking water _ contamination the federal government has consistently overlooked, according to an Associated Press investigation.
Hundreds of active pharmaceutical ingredients are used in a variety of manufacturing, including drugmaking: For example, lithium is used to make ceramics and treat bipolar disorder; nitroglycerin is a heart drug and also used in explosives; copper shows up in everything from pipes to contraceptives.
Federal and industry officials say they don't know the extent to which pharmaceuticals are released by U.S. manufacturers because no one tracks them _ as drugs. But a close analysis of 20 years of federal records found that, in fact, the government unintentionally keeps data on a few, allowing a glimpse of the pharmaceuticals coming from factories.
As part of its ongoing PharmaWater investigation about trace concentrations of pharmaceuticals in drinking water, AP identified 22 compounds that show up on two lists: the EPA monitors them as industrial chemicals that are released into rivers, lakes and other bodies of water under federal pollution laws, while the Food and Drug Administration classifies them as active pharmaceutical ingredients.
The data don't show precisely how much of the 271 million pounds comes from drugmakers versus other manufacturers; also, the figure is a massive undercount because of the limited federal government tracking.
To date, drugmakers have dismissed the suggestion that their manufacturing contributes significantly to what's being found in water. Federal drug and water regulators agree.
But some researchers say the lack of required testing amounts to a 'don't ask, don't tell' policy about whether drugmakers are contributing to water pollution.
Friday, April 17, 2009
Injured War Zone Contractors Fight to Get Care From AIG and Other Insurers
Civilian workers who suffered devastating injuries while supporting the U.S. war effort in Iraq and Afghanistan have come home to a grinding battle for basic medical care, artificial limbs, psychological counseling and other services.
The insurance companies responsible for their treatment under taxpayer-funded policies have routinely denied the most serious medical claims. Those insurers -- primarily American International Group (AIG) -- recorded hundreds of millions of dollars in profits on this business.
The civilian contractors have played an indispensable role in the two conflicts, delivering fuel to frontline troops, guarding U.S. diplomats and translating for soldiers during dangerous raids. More than 1,400 civilian workers have died and 31,000 have been wounded or injured in the two war zones.
Yet unlike wounded soldiers, who are offered health care, rehabilitation and support services by the military, the civilians have to battle a federally supervised insurance system marked by high costs and excessive delays, an investigation by the Los Angeles Times [1], ABC News [2] and ProPublica [3] has found.
In contrast to the public outcry over squalid conditions at some military hospitals, the contractors' plight has drawn little attention.
The insurance companies responsible for their treatment under taxpayer-funded policies have routinely denied the most serious medical claims. Those insurers -- primarily American International Group (AIG) -- recorded hundreds of millions of dollars in profits on this business.
The civilian contractors have played an indispensable role in the two conflicts, delivering fuel to frontline troops, guarding U.S. diplomats and translating for soldiers during dangerous raids. More than 1,400 civilian workers have died and 31,000 have been wounded or injured in the two war zones.
Yet unlike wounded soldiers, who are offered health care, rehabilitation and support services by the military, the civilians have to battle a federally supervised insurance system marked by high costs and excessive delays, an investigation by the Los Angeles Times [1], ABC News [2] and ProPublica [3] has found.
In contrast to the public outcry over squalid conditions at some military hospitals, the contractors' plight has drawn little attention.
Wednesday, April 15, 2009
These Anti-Tax Tea Parties are Ridiculous!!!
By Sam Stein for the Huffington Post
Pressed repeatedly to respond to the Tea Party demonstrations taking place right outside the White House gates, spokesman Robert Gibbs largely stuck to the numbers. The president, he stressed, had just recently passed a "tax cut that covers the most people in the history of this country."
"The president promised significant tax relief for working families of this country, and in the first month of the administration delivered that to the American people," Gibbs said.
He was referring to the making work pay tax credit, which will provide working individuals with a refundable tax credit of up to $400 and $800 for married couples filing joint returns.
But what about raising taxes on cigarettes to pay for health care coverage, one reporter asked. "People make the decision to smoke," Gibbs responded. "People get on airlines and pay taxes to land a plane at O'Hare or in Washington. Those people also got a tax cut. I don't know how much they smoke; I guess that depends on the individual consumption or nicotine habit with those involved in tea parties around the country. Maybe on a rainy day such as today one would light up a few more times in hopes of surviving the drizzle."
The line of questioning wasn't quite exhausted. Where these demonstrations, in the administration's viewpoint, contrived?
"You can speak to the organizers on whether they are contrived," said Gibbs. "I think the statistics I read are pretty clear. If you are one of the 95 percent of working families that earn, I think, less than $200,000 a year, you receive a tax cut. That's not contrived. Those are the facts... Maybe [the protesters] fall outside the window of making a quarter of a million dollars a year."
Later, a rain-soaked reporter -- apparently coming back from covering the demonstrators sans umbrella -- told Gibbs that the majority of people outside made less than 200k and still viewed the government's tax policies as inherently unfair.
"I don't think anybody doubts that there is a frustration over where we are economically in this country," Gibbs conceded. "The president didn't come to office seeking to help banks survive or insurance companies that have hedge funds attached on top of them dissolve to the point of systemic risk to the entire economy."
Pressed repeatedly to respond to the Tea Party demonstrations taking place right outside the White House gates, spokesman Robert Gibbs largely stuck to the numbers. The president, he stressed, had just recently passed a "tax cut that covers the most people in the history of this country."
"The president promised significant tax relief for working families of this country, and in the first month of the administration delivered that to the American people," Gibbs said.
He was referring to the making work pay tax credit, which will provide working individuals with a refundable tax credit of up to $400 and $800 for married couples filing joint returns.
But what about raising taxes on cigarettes to pay for health care coverage, one reporter asked. "People make the decision to smoke," Gibbs responded. "People get on airlines and pay taxes to land a plane at O'Hare or in Washington. Those people also got a tax cut. I don't know how much they smoke; I guess that depends on the individual consumption or nicotine habit with those involved in tea parties around the country. Maybe on a rainy day such as today one would light up a few more times in hopes of surviving the drizzle."
The line of questioning wasn't quite exhausted. Where these demonstrations, in the administration's viewpoint, contrived?
"You can speak to the organizers on whether they are contrived," said Gibbs. "I think the statistics I read are pretty clear. If you are one of the 95 percent of working families that earn, I think, less than $200,000 a year, you receive a tax cut. That's not contrived. Those are the facts... Maybe [the protesters] fall outside the window of making a quarter of a million dollars a year."
Later, a rain-soaked reporter -- apparently coming back from covering the demonstrators sans umbrella -- told Gibbs that the majority of people outside made less than 200k and still viewed the government's tax policies as inherently unfair.
"I don't think anybody doubts that there is a frustration over where we are economically in this country," Gibbs conceded. "The president didn't come to office seeking to help banks survive or insurance companies that have hedge funds attached on top of them dissolve to the point of systemic risk to the entire economy."
This is Terribly Disturbing!!!!
By Jason Szep for Reuters
One 4-month-old baby was shaken so violently she needed surgery. Another 3-week-old suffered fractured ribs from abuse at home. A 9-year-old diabetic boy stopped receiving proper treatment for his condition.
Those cases reported by Boston hospitals are part of a spike in child abuse in United States during a recession that has driven some families to the brink and overwhelmed cash-strapped child-protection agencies.
"In the last three months we have twice as many severe inflicted injury cases as we did in the three months the previous year," said Allison Scobie, program director of the Child Protection Team at Boston's Children's Hospital.
Typically, her hospital handles about 1,500 such cases a year. That rose to 1,800 last year.
"We're finding that it is directly attributable to what is happening economically," she said. "Many of the hospitals around here report an increase of 20 to 30 percent of requests for consultation regarding suspected child maltreatment."
Many cases bear the imprint of economic troubles, like a 9-year-old diabetic boy hospitalized after his mother, a single parent, could no longer afford insurance co-payments needed to treat his disease. She left him home alone for long stretches on days when he required medical attention.
"She had difficulty with the bare bone things that would keep this child healthy," said Scobie.
Similar stories have surfaced in other regions, according to anecdotal and official reports. The Illinois department of child and family services, for example, reported a 5.8 percent rise in child abuse cases in the state in 2008. In the Chicago area, child abuse cases rose more than 9 percent last year.
One 4-month-old baby was shaken so violently she needed surgery. Another 3-week-old suffered fractured ribs from abuse at home. A 9-year-old diabetic boy stopped receiving proper treatment for his condition.
Those cases reported by Boston hospitals are part of a spike in child abuse in United States during a recession that has driven some families to the brink and overwhelmed cash-strapped child-protection agencies.
"In the last three months we have twice as many severe inflicted injury cases as we did in the three months the previous year," said Allison Scobie, program director of the Child Protection Team at Boston's Children's Hospital.
Typically, her hospital handles about 1,500 such cases a year. That rose to 1,800 last year.
"We're finding that it is directly attributable to what is happening economically," she said. "Many of the hospitals around here report an increase of 20 to 30 percent of requests for consultation regarding suspected child maltreatment."
Many cases bear the imprint of economic troubles, like a 9-year-old diabetic boy hospitalized after his mother, a single parent, could no longer afford insurance co-payments needed to treat his disease. She left him home alone for long stretches on days when he required medical attention.
"She had difficulty with the bare bone things that would keep this child healthy," said Scobie.
Similar stories have surfaced in other regions, according to anecdotal and official reports. The Illinois department of child and family services, for example, reported a 5.8 percent rise in child abuse cases in the state in 2008. In the Chicago area, child abuse cases rose more than 9 percent last year.
US Loses Up to $100 Billion a Year to Offshore Tax Havens!!!
A Senate report estimated in 2008 that the United States loses up to $100 billion a year in tax revenue to offshore tax havens In a report released Wednesday, the U.S. Public Interest Research Group offers a state-by-state breakdown of the cost to taxpayers of tax revenue lost to "shell companies and sham headquarters" in places like Switzerland and the Cayman Islands.
The practice soaks dutiful taxpayers in every state for hundreds of millions of dollars, according to U.S. PIRG. The citizens of New York and Texas shoulder over $8 billion a year, and the good people of California are on the hook for an extra $11 billion.
Check out the link below to see exactly how much of the burden is shifted to taxpayers by state!!
http://www.huffingtonpost.com/thenewswire/archive/taxes.html
The practice soaks dutiful taxpayers in every state for hundreds of millions of dollars, according to U.S. PIRG. The citizens of New York and Texas shoulder over $8 billion a year, and the good people of California are on the hook for an extra $11 billion.
Check out the link below to see exactly how much of the burden is shifted to taxpayers by state!!
http://www.huffingtonpost.com/thenewswire/archive/taxes.html
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