Posts tagged financial crisis

“Our worries over. If you believe their bullshit. Which I don’t.”

There’s a parade of “MISSION ACCOMPLISHED“  pronoucements about the recession being “over,” which – in case you missed it – includes the Bank of Canada’s very own Goldmach Sachs’ alumni: Mark Carney.  Only if he had made the annoucement on the deck of an aircraft carrier, could it be more farcical.

James Howard Kunstler‘s snarky response to the string of  “the recession is over” pronoucements made me laugh:

All this goes to show is how completely the people in charge of things in the USA have lost their minds.  They seem to think this mass exercise in pretend will resurrect the great march to the WalMarts, to the new car showrooms, and the cul-de-sac model houses, reignite another round of furious sprawl-building, salad-shooter importing [AM: I LOL'ed ], and no-doc liar-lending, not to mention the pawning off of innovative, securitized stinking-carp debt paper onto credulous pension funds in foreign lands where due diligence has never been heard of, renew the leveraged buying-out of zippy-looking businesses by smoothies who have no idea how to run them (and no real intention of doing it, anyway), resuscitate the construction of additional strip malls, new office park “capacity” and Big Box “power centers,” restart the trade in granite countertops and home theaters, and pack the turnstiles of Walt Disney world – all this while turning Afghanistan into a neighborhood that Beaver Cleaver would be proud to call home.

Link via @newres

A little web traffic experiment worth its weight in Gold

This week I noticed an opportunity to perform a little experiment on the traffic generated by relevant links in the comments of Paul Krugman’s Friday column in the New York Times.

The article in question was “The  Joy of Sachs,” a critique of the record quarterly profits posted last week by Goldman Sachs, even while the continuing, endless economic decline surrounds them on all sides. Goldman Sachs is  a Wall Street giant whose successful senior executives regularly pass through the revolving door into the US Treasury Department. Yep, the foxes are running the hen house.

Or as Krugman puts it:

Goldman is very good at what it does. Unfortunately, what it does is bad for America.

I’ve been watching Goldman Sachs closely lately. I want to know how these guys are gaming the system to come out on top no matter what market they operate in.  So moments after the article was posted at 10:00 MT on Thursday night (12:00 AM ET or Friday morning in New York) I posted this comment inviting other readers to look at two other relevant pieces I recently shared on twitter providing some background on Goldman Sachs.

For more in depth analysis of Goldman Sachs’ slimy business practices I recommend:

1. Matt Taibbi’s “Vampire Squid” take on Goldman Sachs in the latest Rolling Stone: http://bit.ly/hwCbZ

2. CBC’s 30 minute interview with Pulitzer-Prize-winning investigative reporter David Cay Johnston on Goldman Sachs & Gov’t. Here’s the MP3: http://bit.ly/ZzLFm

It was the first comment posted on the op-ed. Four days and 279 NYT “recommends” later my comment was the 13th most recommended comment and on the first page. Admittedly, both the Taibbi and Johnston pieces are excellent, but I am still surprised by the results of the web traffic experiment.

I used the bit.ly URL shortener for each link. With 40 clicks on the Taibbi piece and 52 clicks on the David Cay Johnston interview to start with, I was impressed to see a huge spike in traffic.

With gems like this delicious line – “the world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”  – my link to Matt Taibbi’s Goldman Sachs piece received 1324 clicks on Friday and 271 and 74 clicks on Saturday and Sunday respectively.

My direct link to CBC’s The Current Podcast episode with  David Cay Johnston, a hidden gem from Canada’s public broadcaster received tons of traffic too, even after I described it as a “30 minute interview.”  After 768 clicks on Friday the podcast received 199 and 205 on Saturday and Sunday.

Four days later my quick comment with two relevant backgrounder pieces have generated over 3,000 clicks between to the two shortened URLs.

There’s a lesson here. Curating, saving and sharing relevant, valuable links in the comments of very popular websites can generate impressive traffic.  Traffic that leads away from the New York Times’ website. This is a big change.

It’s like I encouraged readers to put  down the newspaper to read a magazine and listen to the radio.  But the Times‘ does benefit from my traffic draining, eyeball diverting links. Creating a community that encourages users to link to background information maintains their reputation as the place to get information; the “paper” of record, even if there are no dead trees involved.

In the end, I’m just happy to do what I can to expose Goldman’s business practices and help the Times readers call “bullshit” on the Wall Street orthodoxy that deserves at least part of the blame for the near-total economic meltdown.

CTV + CRTC = FAIL

Today we learned that CTV will broadcast 60 hours of tomorrow’s Michael Jackson memorial over 10 of its channels.  While reading their press release loudly proclaiming the “super-simulcast,” I cringed with horror. Has anyone turned on a TV in the last week, flipped through the channels, and not had Michael Jackson’s ridiculously tragic life invade their living room?

It gets better.

After a long and nauseating “Save Local TV” campaign by CTV and CanWest (and the even more disgusting counter campaign by the cable and satellite companies – I’m looking at you Shaw and Rogers) today the CRTC decided to bailout the broadcasters to the tune of $100 million for the 2009-10 broadcast year.

Saying the absolutely most ridiculous thing possible, CRTC Chair Konrad von Finckenstein, Q.C. pronounced that “we have taken steps to ensure that broadcasters … continue to provide Canadians with programming that reflects their needs and interests.”

von Finckenstein will surely soon declare that up is down,  black is white and that money grows on trees. The CRTC is requesting that you submit your comments by August 10, 2009, by filling out the online form.

On the bright side, Ben Mulroney and dead Michael Jackson have real chemistry together.  (as noted by  @robertmcbean)

Riding to the bottom of this

From The Progressive Economics Forum:

This morning’s Consumer Price Index data reveals that the national inflation rate fell to 0.1% in May. Four provinces – Alberta, New Brunswick, Nova Scotia, and Prince Edward Island – posted negative inflation rates.

The supposed risk of continuing fiscal and monetary stimulus too long is that they could propel accelerating inflation. The Finance Minister and Bank of Canada Governor have recently begun proposing an “exit strategy” from stimulative policies. This weekend’s statement from G-8 Finance Ministers also called for “exit strategies.”

Today’s inflation numbers confirm that this talk is wildly premature, particularly as far as Canada is concerned. Our inflation rate will almost certainly turn negative before beginning to increase. Governments and the Bank of Canada have ample time to press ahead with stimulus policies before rising inflation becomes a meaningful concern.

About that conventional wisdom…

Reading talkingpointsmemo.com, one of my favorite American news and politics blogs, I came across both this controversial comment made by New York Times reporter Andrew Ross Sorkin discussing the General Motors bankruptcy on MSNBC’s Morning Joe: 

“Name a successful unionized company. Think. You’re going to go to [commercial] break before you come up with one. And that’s the problem.”

Perusing the instantly crowdsourced  long and obvious list of profitable unionized companies, I found this issue particularly thought provoking, especially in light of current economic and financial circumstances.

I have always been fairly luke warm in my support for unions. Although, I have long recognized their important historical role in raising the wages, living standards (even of non-union employees), and in addressing issues like health and safety concerns for your average Joe (or Josephine), I also grew up to have a healthy dose of skepticism regarding union leadership’s motives given their propensity towards corruption and their potential defense of lazy and/or incompetent “good ol’ boys,” (i.e. the very sort of conventional wisdom expressed by Sorkin). 

Given my nuanced “double edged sword” view of this issue, I was incredibly impressed with the insightfulness of a TPM reader’s response, eviscerating much of this conventional wisdom: 

Sorkin’s comments on media bias are one component of a reigning narrative about economic policy in America that we’ve been stuck with for a very long time that has always betrayed a very specific class bias among journalists. It’s a story that many of us have heard from our upper middle class baby boomer Dads over and over again and inevitably goes something like this:

Liberalism in the 60′s and ’70s were well-intentioned and of course the civil rights movement was necessary, but “interest groups” (read: unions and minorities) “went too far” and the government tried to do “too much.” Government over-regulated and over-taxed and spent too much on programs that didn’t work. Unions choked our competitiveness. Liberals didn’t properly account for unintended consequences of government programs and the degree to which the government would interfere with the free market and it screwed up the economy. Plus, the social programs alienated “mainstream Americans” (read: white Christians). It turned out we needed Reagan to cut taxes, break the unions (ie air traffic controllers), and deregulate to fix things again.

Whether some of that is true or not is beside the point (based on my recent reading of Matusow’s “Unraveling of America,” its not all untrue). But I was seven in 1980, Sorkin was three. This view of the world is frozen in an era that’s been gone for three decades. Its as if nothing has happened since, like a major opening in the wealth inequality gap, the rise in competition from heavily unionized Western Europe, the failure of supply side economics, or the shift in the economy from heavy manufacturing of goods to the provision of services.

To marry yourself to this narrative for all time no matter what happens in the world seems to be, well, pretty bad journalism for starters. It was kind of understandable, if not excusable, when it resulted from the fact that mainstream journalists themselves came of age through the era of the ’60s and ’70s that manifested this narrative. But when it results from their privileged children recycling the narrative, it makes me wonder why those children, who are supposed to be journalists, aren’t formulating their own views of the world based on the three decades since the ’70s in which they themselves have lived.

What does the New York Times pay Andrew Ross Sorkin for if he hasn’t formed a view of unions in America based on events that have occurred in his lifetime? Couldn’t we just keep paying Cokie Roberts to come on morning shows if all we wanted was recycled, conventional baby boomers wisdom devoid of any observation or original thought?

We’re in the midst of a vicious war of ideas on many issues. With politics, finance, business, media, the environment and climate change, it is the positions advanced by camps defending the conventional wisdom that often seem to be holding back real change and progress needed to create the type sustainable, permanent future we need. And it looks like we have just stumbled across another clear articulation of a piece of conventional wisdom destined for the scrap heap… that is, until these worn out ideas are recycled by future generations.

On that  note, perhaps my own jaded cynicism needs some rethinking too.