So, the SEC has finally noticed that the cow is gone, and they are endeavoring to close the barn door.
When you have huge sums of money, detailed information, and NO supervision, insider trading is really a given, not a surprise.
Category: regulation
Salad is Bad for You
Or at least it is when you combine it with “self regulation”, because Dole has recalled 5,058 bags of salad mix.
More bad E Coli. Of note, a lot of this is literally bulls^%$, or at least cow waste, and these strains of E Coli are not natural for cows. It’s when we feed them a corn laden diet that their digestive tract was never designed to handle, their waste becomes hyper acidic, and this pathogen loves these conditions.
German, French Call for “More Transparency in Financial Markets”
This is really about dissatisfaction with the US regulatory regime. They see it as inadequate, and they are trying to use the power of the EU go force tighter regulation.
The further and further that US goes down the road to debtor nation, the more of this we will see, and the greater its impact on internal US markets.
Low Cost Carriers Lower Fares
There has just been a study on the effect of Low Cost Carriers entering a market, in this case, Pittsburgh, and it shows that:
Fares in Pittsburgh dropped 27%, while the airport reported 360,000 additional passengers per year for a total economic impact of $1.8 billion, according to the study, written by Wilbur Smith Associates (WSA). Pittsburgh’s LCCs include AirTran, JetBlue, Southwest and USA3000.
In 2000, the average one-way fare to all destinations was nearly $192, one of the highest in the nation, said the report. “The expansion of low-fare service at Pittsburgh lowered this figure dramatically,” it said. “The average one-way fare decreased by 27% to $140 from 2000 to 2006, and fares to Pittsburgh’s top 15 destinations dropped 32% to $120.”
The people managing airports in Atlanta, Denver, and ESPECIALLY Dallas-Fort Worth, please take note. Being the bitch of the dominant airport in a region hurts air travel and the local economy.
More Regulatory Joy From the Bush Administration
This time, it involves mishandling nuclear fuel.
I think that we should move all nuclear fuel processing and waste storage to Crawford, TX.
For example:
The commission said there were two areas, the glovebox and an old elevator shaft, where the solution potentially could have collected in such a way to cause an uncontrolled nuclear reaction.
In response to discoveries of the screwups, they’ve locked down documents.
Delightful.
In Which I Disagree With Brad Delong
Brad Delong quotes Lawrence Summers, who asks “Why Haven’t the Conforming Mortgage Cap Amounts Been Raised?”, and Mr. Delong further says, “These are wise questions. I don’t understand why the conforming mortgage dollar caps have not already been raised substantially.”
Let’s be clear here. They are probably both smarter than I am. They definitely both have far more training in economics.
That being said, I think that, in a world where economic policy is run by sane competent men*, that any sort of recovery should answer some questions first:
- Who is the target of the bailout. I would argue that distressed homeowners are the target, in which case it’s necessary to derive a targeted solution which maximizes the homeowners relief, and minimizes the amoung to which we indemnify the investors, loan companies, etc. Capitalism must allow for failure to be capitalism.
- What regulatory changes must be made in order to prevent this from recurring, seeing as how any bailout increases the belief in further bailouts, and hence destructive risk taking. I think that much of this problem has its roots in the deregulation from the late 1970s through to the present day, so I recommend re-adoption of New Deal era regulations.
In terms of what I would suggest for initial steps:
- An aggressive push to allow borrowers to negate loans due to violations of the truth in lending act, which allows buyers to rescind the loans and void the mortgages. (they still owe the money, but it becomes an unsecured loan, and the debtors have far more rights in terms or restructuring in bankruptcy).
- A law invalidating all pre-payment penalties.
- Reregulation of the lending industries to prevent further abuses.
*Yes, I know, that’s not the case right as long as Bush is in office.
George Orwell is Spinning in His Grave….Again
Because the public access policy of the NHTSA certainly appears to be implementing what Orwell warned against.
Under the new access policy, no one is allowed to speak for attribution to the press under almost any circumstances. They have to get advance permission for the most routine things. This means that the press office cannot tell a member of the press who the director of the HTTSA is:
If you want to know something as simple as who heads the National Highway Traffic Safety Administration, don’t bother to ask the safety agency’s communications office. Without special permission, officials there are no longer allowed to provide information to reporters except on a background basis, which means it cannot be attributed to a spokesman.
Without such attribution, there are few circumstances under which most reporters will report such information. This makes for interesting dealings with the office charged with providing information about the nation’s top automotive safety agency.
So, I will end the suspense about the boss’s identity. The administrator is Nicole R. Nason, who took over on May 31, 2006, after she was appointed to the post by President Bush.
And it is she who put the big hush on one of the government’s most important safety agencies.
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H/t to the Carpetbagger Report
Maybe Bush Just Hates Kids
Remember when I said in jest that Bush wants American children to die? It may have been reality.
Remember when all the wingers were claiming that Clinton was selling the US out to China because of some chump change at a campaign event at a Buddhist temple? Well, now we have the Bush administration poisoning children at China’s behest.
The Bush administration has hindered regulation on two fronts, consumer advocates say. It stalled efforts to press for greater inspections of imported children’s products, and it altered the focus of the Consumer Product Safety Commission (CPSC), moving it from aggressive protection of consumers to a more manufacturer-friendly approach.
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In March 2006, a 4-year-old Minnesota boy died of lead poisoning after swallowing a metal charm that came with Reebok shoes. The charm was found to contain more than 90 percent lead.
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China remains very much under the microscope. It’s fighting a CPSC proposal to bring the lead restrictions in children’s jewelry to the same levels as those imposed on toys and furniture — six hundred parts per million, which effectively amounts to a ban.
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But in a March 12 filing, China was the only one of 48 interested parties to tell the panel that it opposed new restrictions on lead paint in children’s jewelry. Guo LiSheng, the deputy director of a Chinese global trade agency, warned against “unnecessary obstacles to trade” and advocated international rules that allow some lead content. He added that good product labeling was sufficient.
That boy is dead because of someone that George W. Bush employs.
FDA Once Again Kowtows to Industry
An FDA task force is recommending that no notice be given to consumers about the use of nanotechnology in their food and drugs. Big surprise, Bush toadie and FDA commissioner Dr. Andrew von Eschenbach said he endorsed the report and its recommendations.
The AG department has done the same thing with genetically modified organisms, and forbidden testing for Mad Cow in the US.
These organizations should be about protecting the consumer first, but nut in a Republithug administration.
The Gavel » Blog Archive » Oversight Hearing on US Embassy in Iraq
It turns out that there areallegations of forced labor in the construction of the huge US embassy compound in Iraq.
This is no surprise. Slavery, or peonage, is what the Bush admin wants for the workforce. That’s what the guest worker program is all about.
Good News On Open Access on the Frequency Sale
We have reports that the ‘Open access’ provision on the 700 mhz spectrum is favored by a majority of FCC commissioners.
It appears to be both of the Dems, and one Republican on the panel, the Republicans are “undecided” (translation, waiting to see who ponies up to the RNC).
This will allow people to attach to the network with whatever equipment and using whatever software that they want, like the land lines, and the Internet.
When one notes the explosion of innovation when AT&T was told to do this in the 1970s (you could get phones that weren’t black!), this is a good thing for everyone but the Baby Bells.
AT&T Threatens Lawsuit If Sensible Policies Adopted
Well, it looks like UPDATE: AT&T is threatening litigation of the any of the proposals regarding open hardware access in the 700 MHZ spectrum moves forward.
Not surprising. A lot of the Telco’s margins come directly from anti-competitive behavior.
These threats are about making it as difficult as possible for you to change carriers, or to even find a competitor in your area.
More Blood in the Hedge Fund/Derivative Water
My commentary is at the end.
Italease blow-up stokes derivatives fears
By Ambrose Evans-Pritchard
Last Updated: 1:47am BST 05/07/2007A derivative blow-up at the Italian bank Italease has sent tremors through Milan’s banking fraternity and exposed the hidden dangers of exotic credit instruments.
The bank has paid off 610 million euros (£419m) in recent days to counter-parties in what amounts to a massive margin call after interest rate rises in Europe caused hedging and derivative losses by clients to mushroom out of control.
The share price has tumbled 9pc so far this week, and is down 64pc since the troubles first began to emerge in April.
“These derivatives were very complex and suddenly turned against us,” said Pierantonio Arrighi, the bank’s spokesman.
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Think about that last statement. They are saying that they do not understand the instruments that that they are investing in.
This is a freaking bank, and they do not understand the instruments that that they are investing in.
Jeebus.
Would someone put adults in charge?
Hollywood and Net Neutrality
The content providers are so worried about “piracy” that they will impale themselves on the stakes of AT&T and Comcast, who will extract usurious fees.
Make no doubt. These folks will lose far more than someone download a star wars movie if the telcos and cable companies are allowed to go through with this.
Will H’wood take a stand on Net neutrality?
Congloms may be forced to choose as telcos fish for fees
By WILLIAM TRIPLETT“Net neutrality” may sound like something only a Web geek could love, but at some point showbiz, largely indifferent to it so far, will have to start declaring an interest — perhaps passionately.
Why? Because Net neutrality — or, as some call it, Net regulation — has the potential to affect content protection, otherwise known as Priority No. 1 of the entertainment industry.
Access to online content, itself no small concern, could also be at stake.
Even the term “Net neutrality” is the source of some controversy. Is the issue “neutrality” or “regulation”? It depends on who’s talking.
From its inception, the Internet has always delivered information on a first-come, first-served basis, whether it’s your music download, your neighbor’s porn or your office’s email.
Thus the Net has always been “neutral.”
But there’s no rule that says it has to be that way. If you get your Internet from Time Warner Cable, for example, there’s nothing to stop it from sending you content from Time Warner sites first and doling out content from the competition with whatever bandwidth happens to be left over.
Nor is there anything to keep an Internet service provider like Earthlink from taking fees from Disney or NBC Universal to give some sites priority — and to block other sites altogether.
That would give Web sites with deep pockets behind them a new advantage in getting their content in front of Web users, while sites that can’t afford those fees could be kicked to the virtual curb.
Those who value the current “neutral” state of the Internet are seeking legislation to protect “Net neutrality.” Many of the companies involved, though, see an opportunity to make money. They, along with those who generally favor free markets, condemn such legislation as “Net regulation.”
Fears that the current Net neutrality could be lost erupted at last year’s Telecom Next show after AT&T topper Ed Whitacre (who retired June 4) was quoted as saying that Google and other content providers were getting a free ride.
He told Business Week, “The Internet can’t be free in that sense, because we and the cable companies have made an investment, and for a Google or Yahoo or Vonage or anybody to expect to use these pipes free is nuts!”
Whitacre later backtracked, noting that customers would desert any provider who blocked some sites, but it was too late. The push to protect Net neutrality is on.
Given the potential for chaos if some content gets priority to some customers but not to others, as the pro-NN faction calls it, you’d think the entertainment industry would be all for passing laws that enforce Net neutrality.
You’d be wrong. Very few industry companies have publicly taken a position on NN to date, preferring a wait-and-see approach to the volatile issue.
How volatile? Only one industry exec agreed to be quoted by name on the subject.
“Intellectual property protection is our litmus test,” says Rick Cotton of NBC U, who could easily be speaking for the entire content industry.
As one industry lobbyist notes, showbiz tends to favor the side of the broadband providers, who oppose any mandated Net neutrality, because the providers can help identify and pursue online bootleggers and pirates.
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Why Identity Theft Should Not Be Left to the Private Market
Because if it is, this will be the rule, not the exception.
Call your congressman and tell him that you should be able to have a credit freeze on demand.
Lifelock Founder a Shady Identity Thief?
By Kim Zetter
The Phoenix New Times has published an investigative piece showing that Robert J. Maynard, Jr., one of the founders of Lifelock, a company offering a service to protect people from identity theft, is himself a suspected identity thief who may have stolen his own father’s identity, has a troubled financial past (including at least two bankruptcies), and was jailed in 2003 for defaulting on a $16,000 Las Vegas casino loan — an incident that the New Times says Maynard has lied about repeatedly to customers and reporters.”
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Your FDA at Work: Poisoning your Pets Edition
This is VERY significant. Acetaminophen is VERY toxic to cats and dogs, and cause liver failure. (It can with humans too, but only with a significant OD)
This is the free market ownership society that the ‘Phants want us to live in.
Texas lab finds pain medicine in pet food
By Karen Roebuck
TRIBUNE-REVIEW
Tuesday, June 5, 2007The U.S. Food and Drug Administration is investigating a Texas laboratory’s finding of acetaminophen in dog and cat food, an agency spokesman said Monday.
‘We’re very interested in being able to test these samples ourselves to determine the levels of those contaminants,’ said FDA spokesman Doug Arbesfeld. ‘What’s significant is these things are there. They don’t belong there.'”
The pain medication is the fifth contaminant found in pet foods during the past 2 1/2 months and can be toxic or lethal to pets, especially cats. It is not known if any animals became sick with acetaminophen poisoning, or died from it.
‘We were looking for cyanuric acid and melamine, and the acetaminophen just popped up,’ Donna Coneley, lab operations manager for ExperTox Inc. in Deer Park, Texas, told the Pittsburgh Tribune-Review yesterday. ‘It definitely was a surprise to find that in several samples.'”