Regulation vs. Good Business Sense

With all this talk about the financial crisis, I can’t help but wonder how stupid the people running these firms really are. Couldn’t they tell that the mortgages and investments that have gone bad were bad ideas in the first place?

Take the so-called “liar loans,” where there was no effort to verify income of potential borrowers, and borrowers were encouraged to inflate their income so that they’d be able to get bigger mortgates (and, hence, bigger houses). Why did anyone think it was a good idea to disconnect the mortgage from a realistic assessment of the borrower’s ability to pay?

Of course, it’s not like this tendency in lenders is new. In 1987 I bought a used car (with an insurance settlement to replace an old beater that was stolen), and I had to fight with the car dealer over the price I was willing to spend. I had so much money from the insurance settlement, and wanted to pay a certain amount per month in car payment and no more. But the dealer kept arguing with me, saying my income would allow me to afford a lot more car (with a much longer loan period and a higher monthly payment). I kept insisting that I didn’t *want* to pay more. This was met with a blank stare, something the salesman couldn’t seem to comprehend. I eventually got exactly what I asked for, and a $110/month car payment (I think it was a 2-year loan period, but can’t recall for certain).

Why would any sensibly-run lender want to loan not just more than what the borrower wants, but more than the borrower’s income justifies? Is that not just a really bad business decision?

This is why it annoys me that the government seems to be stepping in to buy the bad investments, and so many commentators seem so willing to say “there’s enough blame to go around for everybody.” No, there *isn’t* — if the lenders had followed good business practices, none of this would have happened. They didn’t and now the whiny-assed titty babies want to be rescued from their bad judgement.

It pisses me off a lot, especially given that the same people championing the bailout (I mean *you*, John McCain) were perfectly happy last Spring to tell the borrowers that they didn’t deserve a bailout themselves because they’d made bad decisions in taking out these mortgages.

Those Wacky Catholics

NOTE: I found this post in draft stage today. It’s apparently been sitting there since early 2004. It is just as relevant today as it was then.

Those Wacky Catholics: Bishop Raymond Burke of the diocese of La Crosse, Wisconsin has issued an order that prohibits priests in his diocese from administering communion to Catholic representatives who have voted for legislation that allows individual choice on the subject of abortion (see article here).

It has often been said that Catholics in general do not know their Bible, and it seems to me that such a decree as this ignores the lesson of one of Jesus Christ’s parables, the lesson of which is “Render unto Caesar that which is Caesar’s and unto God that which is God’s.” This parable, and this lesson, is included in 3 of the 4 Gospels (the exact verse in each case being Matthew 22:21, Mark 12:17 and Luke 20:25.

Now, it seems to me that the general principle established here by Jesus is that there are secular realms in which one has secular duties that do not in any way conflict with one’s sacred duties. Indeed, that principle is enshrined in the US Constitution, and is at the very heart of all the civic and governmental structures of our nation.

Officeholders, like Roman taxpayers, have duties to their constituents that are independent of their religious duties.

This despicable Wisconsin bishop has undone, in a stroke, all the progress that was made in the last half of the 20th Century in debunking the lie that Catholic lawmakers would be beholden to the Pope, rather than to those who elect them. John F. Kennedy was the first Roman Catholic president, and this was a major stumbling block for many voters. But his words and actions demonstrated that in his duties as civic officeholder, there was no conflict, as demonstrated by the words of Jesus himself.

Now, it seems that this is no longer the case. Roman Catholic officeholders must now shirk their civic duties and let their Church’s decrees rule their voting decisions, or face separation from the central sacrament of their church, and, thus, can never be fully in a state of grace.

The Pope has taken the same position on the issue of gay marriage, ignoring that the question being considered by officeholders worldwide is not a religious one, but a civic one, the question of the definition of civil marriage (which is distinct from religious marriage).

Roman Catholics always seem to want it both ways. When the Act-Up protesters disrupted mass at St. Patrick’s in New York City in 1989, this was seen as a dreadful intrusion into the religious space. Indeed, it was exactly that, but it came as a response to the Church’s intrusion into the civic realm. If the Church insists on trying to shape lawmaking, which has an impact on all citizens, Catholic or not, they open themselves to interference and disruption from outside, in just the same fashion as their own actions interfere with and disrupt the lives of those who are not under the authority of the Church.

Roman Catholics in the US need to learn that they cannot interfere in civic affairs without there being a corresponding reaction from non-Roman Catholic citizens. The result of the bishop of La Crosse’s decree and the Pope’s recommendations on gay marriage is that Roman Catholics are now disqualified from public office, as they are now under the kind of pressure from their Church that we as non-Catholic citizens can simply not expect them to endure. They now are required to have duel allegiance, and as voters, we cannot vote for any candidates whose allegiance is to anything but the consituency that elected them.

I Can See Russia From My House!

It amuses me greatly that somehow Tina Fey’s line on Saturday Night Live impersonating Sarah Palin has become gospel. It seems to me that an awful lot of people think she actually said that.

What interests me is how often Republicans will try to counter this by saying it’s a lie. If they try that, they will have to point out that what she actually said was that there are places in Alaska where you can stand and see across the Bering Straits to Russia. In fact, the only such place is an island off the coast of mainland Alaska, and all of Russia that it can see is another island.

This doesn’t help their case. Palin may not have literally said she can see Russia from her house, but what she actually said is only marginally less absurd than Tina Fey’s version. By trying to correct the misrepresentation, her supporters can do nothing but make matters worse by driving home the point that she’s batshit crazy in regard to her claims of any experience with foreign relations.

McCain Senile?

McCain’s enormous confusion over Zapatero/Spain really causes me to ask whether or not the man is mentally fit. He often seems to get confused in interviews, and seems truly unable to cope with unexpected questions (e.g., on The View), but I don’t recall him ever having not just misinterpreted the questions, but in this case, he couldn’t even absorb the clarification kindly offered him by the interviewer.

If he has more of these gaffes, I wonder whether he’ll be completely toast.

Scott Adams — Still Dumb as a Post

Scott Adams paid out of his own pocket to do a survey of economists on Obama’s and McCain’s economic policies. While the survey decisively picks Obama’s policies over McCain’s on 9 out of 13 of the issues (6 by >50%, 3 by plurality). McCain is chosen as superior on only one issue (international trade), and beats Obama on only one other issue (waste in government), but even on that issue gets less support than “neither will make a difference.”

So, the poll is pretty darned clear in picking Obama’s policies as vastly superior to McCain’s in almost every respect — it really isn’t even close.

What is Adams’ take-away? That 48% of the respondents were Democrats. His conclusion? They are partisans, so their answers have no merit at all. This is despite the fact that independents (27%) plus Republicans (17%) plus Libertarians (3%) add up to 47% of the survey respondents, which, statistically speaking, exactly balances the Dems in the sample. If the survey numbers entirely stem from party ID, then it must show that the group of non-Democrats agree with Obama’s positions a significant portion of the time. And on 4 issues, McCain can’t even retain the 20% of his own partisans (presumably, Republicans + Libertarians) and on 1 other, can’t exceed his partisans (i.e., reaching only 20% support).

There are statistical tests that can be done to see if partisanship skews the survey results, and Adams himself is forced to admit (in a followup post) that there was a rather large degree of party-line crossing on several of the issues considered.

Adams seems completely unable to conceive of the idea that economists might support the Democrats more than Republicans because the Democrats over the past 25 years have not pushed a whole succession of batshit-crazy economic ideas as the basis for their governing philosophy. Republicans TELL LIES about the economy (for example “reductions in capital gains taxes always increase revenues”). They still subscribe to the completely discredited supply-side economics. They still think there’s no such thing as a bad tax cut (or a good tax increase). They have shown themselves irresponsible in governing, racking up record deficits and mis-spending what funds are available inefficiently.

In other words, if you look at the way Republicans act once they are in power, they implement economic policies that no economist but a partisan hack would consider good. Is it, then, surprising that most economists would not rationally pick the party that has been promoting economically sensible policies over the one that talks economic nonsense?

This is not something Adams seems able to imagine, since he lives in that disconnected fantasy world where, Nader-like, there is no difference between the two parties. In fact, there are long-term massive objective differences between the two parties on facts and on support of widely-accepted best practices in the field of economics.

But Adams got an answer he didn’t like (he wanted a tie or a McCain win) and must explain it away with accusations of bias. In doing so he plugs into all the right-wing memes about academic political bias, as well as subscribing to a strong current of anti-intellectualism, this latter despite the fact that he paid a lot of money to consult with experts.

Scott Adams is simply a moron.

If you’ve been paying attention, though, you already knew that.

Addendum: Adams has the honesty to post a comment by an economist that explains the party ID differences thus:

In general, I suspect the economists who favor Obama tend to have a greater relative weight on equity vs. efficiency compared to economists who favor McCain. Both groups might agree that both efficiency and equity are important, but they disagree PHILOSOPHICALLY (outside of their training as economists) on the relative importance of these two social values.

A preference for equity over efficiency would likely make these economists vote Democratic, since the history of the Democratic party’s economic policies has been almost entirely a succession of efforts to improve economic equity.

Wasilla High School

One of the most interesting tidbits I picked up from ABC’s Charlie Gibson interview with Sarah Palin was the chance to see the interior of Wasilla’s high school.

My first thought was “Wow! What a cushy high school! Looks like something you’d expect in a rich Chicago suburb, what with that fancy indoor track and all!”

Then a few mitigating factors did occur to me:

  1. The weather is pretty bad up there in the winter, so if you want to have your kids running, an indoor track is the thing you need.
  2. It was obviously implemented as a multi-purpose facility, since it served as plain old hallway as well as being the indoor track.
  3. Wasilla has experienced lots of growth over the last decade or so, so it’s not really surprising that they’d have needed a new high school building.

Nonetheless, the optics were that this was not your typical small town (as I recall it, having grown up on a farm 3 miles from a village of 300, and bussed to high school 15 miles away in a town of 6,500 — almost precisely the size of Wasilla), but a small town in a state that has literally millions of dollars in money that can be spent on building lavish public facilities. Alaska is simply not a normal state, and this means that the citizens of Alaska are accustomed to a much higher level of public services and investment in fancy infrastructure (like high schools with indoor tracks) than most of the people in small towns around the country.

However justifiable and understandable that indoor track may be, it still serves as a visible symbol of just how enormously different from the rest of the country of Palin’s hometown actually is.

Addendum: Matthew Yglesias makes an observation on another aspect of Palin’s past that shows how odd Alaska really is.

It’s Blinky!

Sarah Palin sure does seem to like the turn of phrase “I didn’t span in the face of…” or “We can’t span when confronted with…”

From the interview transcript:

On the subject of experience (emphasis added):

GIBSON: Governor, let me start by asking you a question that I asked John McCain about you, and it is really the central question. Can you look the country in the eye and say “I have the experience and I have the ability to be not just vice president, but perhaps president of the United States of America?”

PALIN: I do, Charlie, and on January 20, when John McCain and I are sworn in, if we are so privileged to be elected to serve this country, will be ready. I’m ready.

GIBSON: And you didn’t say to yourself, “Am I experienced enough? Am I ready? Do I know enough about international affairs? Do I — will I feel comfortable enough on the national stage to do this?”

PALIN: I didn’t hesitate, no.

GIBSON: Didn’t that take some hubris?

PALIN: I — I answered him yes because I have the confidence in that readiness and knowing that you can’t blink, you have to be wired in a way of being so committed to the mission, the mission that we’re on, reform of this country and victory in the war, you can’t blink.

So I didn’t blink then even when asked to run as his running mate.

From later in the interview, discussing intervention in Pakistan (the Obama question, emphasis added):

GIBSON: But, Governor, I’m asking you: We have the right, in your mind, to go across the border with or without the approval of the Pakistani government.

PALIN: In order to stop Islamic extremists, those terrorists who would seek to destroy America and our allies, we must do whatever it takes and we must not blink, Charlie, in making those tough decisions of where we go and even who we target.

I propose that every time we mention Sarah Palin in blog posts, we deploy the lamented and underused span tag to highlight her strength in the face of adversity, her determination not to waver in the face of opposition, her fantastic pink internal energy that gives her the guts to say NO. Thus:

Sarah Palin is a liar.

UPDATE: George Saunders in the New Yorker is much funnier than I am.

Travel to Europe

Roger Ebert tells this little story in his article taking down Sarah Palin:

And how can a politician her age have never have gone to Europe? My dad had died, my mom was working as a book-keeper and I had a job at the local newspaper when, at 19, I scraped together $240 for a charter flight to Europe. I had Arthur Frommer’s $5 a Day under my arm, started in London, even rented a Vespa and drove in the traffic of Rome. A few years later, I was able to send my mom, along with the $15 a Day book.

This looks to me like a generational thing — Ebert is old enough to have benefited from the years in the early 70s when the dollar was still increbibly strong against European currencies. I have a friend who travelled to the South of France several summers in a row, at a time when he was making about $5,000 gross income per hear. I have always really envied that, because by the time I was that age (just out of college), the era of the strong dollar and cheap travel to Europe was simply over. Palin is two years younger than I, and she wouldn’t have had that opportunity, either.

Chris Matthews

I’ve never been a fan of Chris Matthews, who has always struck me as a blithering idiot, so I hardly ever see him. But tonight Rachel Maddow’s new show on MSNBC was pre-empted by coverage of the Public Service forum featuring McCain and Obama. In the coverage afterwards, I observed two things:

  1. Chris Matthews intensely dislikes Rachel Maddow. This seemed blatantly clear in the interaction between them (despite his false-sounding praise of her investigative skills). I don’t know if it is just jealousy over the new kid on the block, or garden-variety sexist resentment, but it certainly came through loud and clear to me.
  2. Chris Matthews is completely ignorant of the context of the modern movement to throw ROTC programs off campus. Back in the early 70s, yes, it was anti-war fervor that caused ROTC protests. But that ended in the Reagan era, with ROTC programs invited back to a lot of campuses that had thrown them out during the Vietnam War era. The present-day anti-ROTC protests have a completely different justification: the conflict between universities’ anti-discrimination policies and the military’s prohibition of gay soldiers. A university that prohibits discrimination on the basis of sexual orientation is going to look awfully inconsistent if it permits and supports a program that tacitly discriminates on that basis. But Chris Matthews doesn’t appear to know any of that.

Why is Chris Matthews still on TV?

The Dishonorable Candidate

Today on Thom Hartmann’s program on Air American, Lee Rayburn (guest hosting) featured a lot of information about McCain campaign efforts at voter caging in Wisconsin and elsewhere. This is yet another example of the McCain campaign’s dishonorable actions, because all of these mailings are specifically designed to mislead voters into making mistakes that could cause their votes to be thrown out. Absent these mailers from the McCain campaigns, 99.9% of the mistakes that might come from them would have no chance of happening.

Add this to the list of dishonorable actions from McCain in regard to his campaign (chiefly, his insistence on repeatedly lying about his running mate’s record, and about his opponents — one bald-faced lie after another). He and his running mate are serial liars and have abandoned any semblance of truth and honor in the conduct of their campaign.

Neither is worthy to be elected president.