Category: regulation

Barney Frank: Missing the Lede on the GSEs

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The headline, of course is that he is calling for the gradual elimination of Fannie Mae and Freddie Mac:

“I think they should be abolished,” Frank said. “The only question is what do you put in their place. This is a situation where given the importance they had come to play in housing, you can’t tear down the old jail until you build a new one. And that’s a process that we’ve started.”

This is legitimately a big news story, but the rest of his proposal is far more revolutionary. He is a calling for an end to government subsidies to home buyers:

Frank went on: “I have been very critical for a long time that not everybody should be a homeowner. There are people in this society who for economic and frankly social reasons can’t and shouldn’t be homeowners. I do want some government help to build affordable rental housing.”

It’s this 2nd point that is a big deal. While the GSEs (Government Sponsored Entities) were a vanishingly small part of the housing bubble, as house prices exploded, their share of the market fell precipitously, what was a huge part of the market was the enormous subsidies made available to both home buyers, sellers, builders, and agents.

This distorted the market in some very profound ways, and it is very likely that if these measures had not been in place, we would have seen neither the bubble nor the crash.

We sacrificed our economy on the alter of home ownership.

Economics Update

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Click for full size

Capacity Utilization


Industrial Production
H/t Calculated Risk

Retail sales rose, but missed forecasts for July, the comment of an economist quoted in the story, “The numbers are consistent with a sluggish consumer profile,” is kind of well duh thing.

Hopefully the indications that the big banks are relaxing their lending standards for small businesses for the first time in 4 years.

This is good news, since banks have increasingly attempted to move small business customers from loans to corporate credit cards, where the fees and interest, and hence bank profits, are higher.

On the consumer side, credit card delinquencies fell to the lowest level this year, which could mean that more people are getting back on their feet (good), or that more consumers are deleveraging (mostly bad, see Thrift, Paradox of).

I’m inclined to believe that it is mostly the latter, particularly since bankruptcy filings hit a 5-year high in the 2nd quarter.

We are seeing some good news in industrial production and capacity utilization, which continue a relatively robust recovery, though a lot of this gain was increased electricity consumption from a record breaking July, though a fair amount is also autos which is an unambiguously good sign. (See also the chart pr0n)

The New York Fed’s economic activity index rose in August, but again, it missed forecasts.

In the land of the blithering idiots inflation hawks, the UK district is reporting that British CPI rose at a 3.1% annual rate, down from June’s 3.2% rate, which has the inflation hawk piggies squealing that they are missing the 2% target, but as Krugman would say, we are in a liquidity trap, we need more inflation so that real interests rates (interest – inflation) is low enough to foster growth.

I would go further than Krugman, and say that both the Bank of England and the Fed should have a 6-8% target inflation rate for the next 4 years or so.

And then we have real estate, where the market seems to be deflating like the Hindenberg* following the expiration of the home buying tax credit.

Housing starts rose, but fell well short of forecasts in July, home prices flattened out in June, and home builder confidence fell in August.

*I know that the Hindenberg did not deflate, it burnt and crashed. That’s my point of this mangled metaphor, OK?

The Federal Open Market Committee Released its Statement Today

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They kept interest rates at effectively 0%, which is not a surprise.

What was a bit of a surprise, though they did telegraph is were the facts that their statement was significantly more downbeat, and they effectively put a halt to their gradual monetary tightening:

Federal Reserve officials made their first attempt to bolster the economy in more than a year, saying they will maintain their holdings of securities to stop money from draining out of the financial system.

The central bank will reinvest principal payments on mortgage assets it holds into long-term Treasuries after judging that “the pace of economic recovery is likely to be more modest in the near term than had been anticipated,” the Federal Open Market Committee said in a statement after meeting today in Washington.

So, as opposed to simply retiring their securities, they will roll them over, though I would differ with their characterization of 2-year treasuries are “long term”.

It’s a mild improvement on their earlier position of gradual tightening, but I’m with Paul Krugman:

I know: it’s a heck of a way to make policy. In a better world, the Fed would look at the state of the economy and do what was right, not the minimum necessary. But wishing for that kind of world is like wishing that Ben Bernanke were running the place.

Heh.

Krugman worked with Bernanke at Princeton, and because of this, he has been rather gentle with him, but I think that he is losing patience.

Full statement after break:

Press Release
Federal Reserve Press Release

Release Date: August 10, 2010

For immediate release

Information received since the Federal Open Market Committee met in June indicates that the pace of recovery in output and employment has slowed in recent months. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising; however, investment in nonresidential structures continues to be weak and employers remain reluctant to add to payrolls. Housing starts remain at a depressed level. Bank lending has continued to contract. Nonetheless, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability, although the pace of economic recovery is likely to be more modest in the near term than had been anticipated.

Measures of underlying inflation have trended lower in recent quarters and, with substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

To help support the economic recovery in a context of price stability, the Committee will keep constant the Federal Reserve’s holdings of securities at their current level by reinvesting principal payments from agency debt and agency mortgage-backed securities in longer-term Treasury securities.1 The Committee will continue to roll over the Federal Reserve’s holdings of Treasury securities as they mature.

The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh.

Voting against the policy was Thomas M. Hoenig, who judges that the economy is recovering modestly, as projected. Accordingly, he believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted and limits the Committee’s ability to adjust policy when needed. In addition, given economic and financial conditions, Mr. Hoenig did not believe that keeping constant the size of the Federal Reserve’s holdings of longer-term securities at their current level was required to support a return to the Committee’s policy objectives.

1. The Open Market Desk will issue a technical note shortly after the statement providing operational details on how it will carry out these transactions. Return to text

Obama Consensus Building: The Incumbent Oligopolies Win, We Lose

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Google and Verizon have released the details of their carve up the internet among the big players proposal:

Google Inc. and Verizon Communications Inc. on Monday called for equal treatment of most Internet traffic while at the same time saying fast-growing cellular networks and yet-to-be-developed broadband services should be exempt from such restrictions.

Google and Verizon released a proposal arguing that broadband providers shouldn’t be able to discriminate against Internet content providers. Marcelo Prince and Amy Schatz discuss. Also, Dennis Berman discusses why bond investors are giving up on recovery and jobs.

The ideas outlined in the proposal put forth by the Internet search giant and one of the largest broadband providers stand in contrast to the Federal Communications Commission’s recent proposals on “net neutrality” rules, which would prevent companies from giving preferential handling to certain types of online traffic.

In Google’s case, the proposal’s endorsements of two-tier Internet service and a hands-off approach to cellular-based Web services represent a break with many other online companies, which have argued for strict neutrality in how Internet traffic is treated. Google itself previously expressed general support for rules prohibiting discrimination among forms of Web traffic.

This is a direct consequence of the tenor and approach of Barack Obama. It is clear that in internet access, the incumbents have taken billions of government subsidies, and used this money to cement their monopoly positions, rather than improvement access.

It’s why US internet performance and penetration* is the worst in the developed world.

These are not people who you partner with to get the outcome you want, these are people you defeat to get the outcomes you want.

As to the long term consequences, I’ll go with what Atrios says:

I’m one who thinks that ultimately the forces of light will prevail and the repeated attempts to carve out internet walled gardens will, over the long run, fail as killing the internet would… kill the internet. But the long run is a long time and companies will likely screw and gouge us over the not very short run unless the FCC acts.

So not hopey changey, and as I have said before, this sort of craven acquiescence to the incumbent players who screwed everything in the first place appears to be a core philosophy of Barack Obama and His Clueless Minions™, whether it be telecommunications, finance, healthcare, etc.

*That sounds dirty, doesn’t it?

What a Remarkably Unambitious Goal

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After much study, the Congressionally mandated to review the Pentagon’s Quadrennial Defense Review has determined that it takes too long to develop and deploy new weaopons, and so there should be a 7 year limit to developing weapons systems:

To avoid this problem in the future, Perry and co-chair Steven Hadley want defense contractors to be held to a tight five to seven year development phase. “Past experience indicates that, with proper management authority and accountability, it is possible to deliver relevant military capabilities for current operations in weeks and months, and to deliver longer-term and broader increments of military capability in 5 to 7 years,” noted the pair in the report. “The 5- to 7-year time span is consistent with the march of technology, changes in the operational environment, and changes in operational needs to shape and respond to that environment.”

Sorry, but that is at least twice as long as it should be.

This is a remarkably timid conclusion, kind of like saying that you should not exceed 70 mph in a school zone.

US Aerospace/Antonov Out of KCX Competition

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Rather unsurprisingly, they missed the deadline, which is not surprising, since they seemed not ready for prime time.

Equally unsurprising is the fact that they have filed a protest with the GAO.

The cynic in me wonders if that was not the intention the whole time, to kinda file, and then use a GEO protest as a way to generate some ransom money.

Then again, now that the details have come out, the messenger showed up at the gate at 1:30, was delayed there, and then given bad directions by the gate guards, resulting in a 2:05 stamp, 5 minutes late, perhaps it is incompetence, or maybe the USAF had enough of this crap, and decided to play some hardball as US Aerospace claims.

Pass the popcorn.

You might as well watch. Your tax dollars are paying for this.

It’s Bank Failure Friday!!!!

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And here they are, ordered, and numbered for the year so far.

  1. Ravenswood Bank, Chicago, IL

Full FDIC list

So it is a slow Friday for bank closings, but the credit union closings mostly make up for that:

  1. Norbel Credit Union, Fort Collins, CO
  2. Certified Federal Credit Union, Commerce, CA
  3. Kappa Alpha Psi, Addison, TX

The NCUA has been busy over the past week.

Full NCUA list

So, here is the graph pr0n with trendline (FDIC only):

I would note that are now at the point where the utility of the least squares trendline is diminishing, but I’m keeping it here for historical purposes.

Economics Update

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It’s jobless Thursday, and initial jobless claims rose again, by 19,000 to 479,000, with four-week moving average increased by 5,250 to 458,500, and continuing claims fell by 34,000 to 4.54 million, though a lot of this may be people running out their string on normal benefits.

I would note that this number has been bouncing between 450K and 480K for a few months, and that this number is around 100,000 more than is needed for a recovery in employment.

Meanwhile, in central bank land, the Bank of England kept its benchmark rate at ½%, effectively 0%, and it’s asset purchase program, aka quantitative easing, aka printing money, remains essentially unchanged.

Finally, the 30-year fixed mortgage rate hit an all time low, 4.49%. (!)

Google and Verizon Hammer Nails in Net Neutrality’s Coffin

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My guess is that Google has given up on the timid Obama administration, and Obama’s timid FCC chairman Julius Genachowski, who falls over when the incumbent players say “boo”, so Google is throwing in the towel, and is negotiating with Verizon to pay extortion money to insure that it doesn’t get shut out of the telcos last mile:

Google and Verizon, two leading players in Internet service and content, are nearing an agreement that could allow Verizon to speed some online content to Internet users more quickly if the content’s creators are willing to pay for the privilege.

The charges could be paid by companies, like YouTube, owned by Google, for example, to Verizon, one of the nation’s leading Internet service providers, to ensure that its content received priority as it made its way to consumers. The agreement could eventually lead to higher charges for Internet users.

Why is Google throwing in the towel?

Well part of it may be because Verizon is a major player in mobile phones, and they don’t want to be locked out:

People close to the negotiations who were not authorized to speak publicly about them said an agreement could be reached as soon as next week. If completed, Google, whose Android operating system powers many Verizon wireless phones, would agree not to challenge Verizon’s ability to manage its broadband Internet network as it pleased.

Or maybe it’s because all this hopey changey crap is nopey change crap:

Since the court decision, involving Comcast, in April, the F.C.C. has been trying to find a way to regulate broadband delivery, and that effort has been the subject of a series of private meetings at the agency’s headquarters in recent weeks. At the meetings, officials from the nation’s biggest Internet service and content providers, including Google and Verizon, have tried to reach a consensus on how broadband Internet service should be regulated in light of the decision. Those meetings continued this week, apart from the talks between Google and Verizon.

Yes, you have a group of people doing bad things, and destroying a public resource, and even though you have the authority to regulate, all you have to do is redefine broadband, and you are good to go, you are working to, “reach a consensus on how broadband Internet service should be regulated.”

That’s like banks trying to reach a consensus with bank robbers.

The incumbents are not valued members of the community, they are parasites who use an accident of history to attempt to act as highwaymen.

It’s not tough to reregulate this sh%$. You can’t now because a few years back, your Bushco predecessor made it so:

The F.C.C., meanwhile, favors a level playing field, but it cannot impose one as long as its authority over broadband is in legal doubt. It has proposed a solution that would reclassify broadband Internet service under the Communications Act from its current designation as an “information service,” a lightly regulated designation, to a “telecommunications service,” a category that, like telephone service, is subject to stricter regulation.

It’s very simple. Make a new finding. The old one was a payoff to the telcos for campaign bucks, warrantless wiretapping, and a failed free market ideology.

Make that ruling, and then, when you have a big stick, you can get to the rule making.

First, get a firm grip on their balls, and then negotiate.

Remember, we are dealing with The Phone Company here, and to quote Lily Tomlin, “We don’t care, we don’t have to…we’re the phone company.”

They may be essential, but they aren’t allies.

Then again, I’m being an optimist. If you look at the Obama administration’s actions, whether they be healthcare, financial reform, the Employee Free Choice Act, etc., it’s clear that their MO is to talk about reform, and then to give the malefactors what they want, so this could be by design, rather than by incompetence or cowardice.

In either case, treating the Obama Administration, and their FCC Chairman as the enemy and a bad faith player still gives activists the best policy, so I would suggest that this is what net neutrality activists do.

Avoid the veal pen conference calls, and light fires under them.

Why the Chinese Will Continue to Eat Our Lunch

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Because they understand what is going on, and they are willing to do tough things to make sure that things don’t blow up in their faces:

China’s banking regulator told lenders last month to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said.

Banks were instructed to include worst-case scenarios of prices dropping 50 percent to 60 percent in cities where they have risen excessively, the person said, declining to be identified because the regulator’s requirement hasn’t been publicly announced. Previous stress tests carried out in the past year assumed home-price declines of as much as 30 percent.

(emphasis mine)

The Chinese understand that the purpose of stress tests is to identify problem institutions, not to reassure markets, so they will thoroughly investigate their banks, and then probably jail senior management at some of the worst run institutions.

It might be painful, but it gets ahead of the events, as opposed to our method, extend and pretend, which means that when future problems occur, the Chinese have better options available to them.

I guess that the leadership of the PRC aren’t worried about being called “Socialists,” because they call themselves socialists.

It’s Bank Failure Friday!!!!

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And here they are, ordered, and numbered for the year so far.

  1. Northwest Bank & Trust, Acworth, GA
  2. Bayside Savings Bank, Port Sainte Joe, FL
  3. Coastal Community Bank, Panama City Beach, FL
  4. The Cowlitz Bank, Longview, WA
  5. LibertyBank, Eugene, OR

It’s “only” 5 this week, which is less than either of the past 2 weeks, though above the average of 3.6/week for the year.

Full FDIC list

So, here is the graph pr0n with trendline (FDIC only):

I would note that are now at the point where the utility of the least squares trendline is diminishing, but I’m keeping it here for historical purposes.

Wanker of the Day

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Chris Dodd, who is saying that Elizabeth Warren is not confirmable as head of the Consumer Financial Protection Bureau.

Now that he is not running for reelection, I guess that he’s looking for a lobbying gig with the finance industry:

“She’s qualified, no question about that. The question is whether she’s confirmable,” Dodd added. “The issue is [if] you can’t confirm somebody, if you go six or seven months without someone in that job, you’ve got a problem.”

Progressives have been strongly pressuring the Obama administration to appoint Warren ever since the Wall Street reform bill passed in Congress. Some have argued that she be given a recess appointment if a minority of senators block her confirmation. Dodd objects to that idea.

“I think that would be a huge mistake,” Dodd said, in response to a question from TPMDC. “Recess appointments. No, no, no.”

“I think those are, you know, Republicans used to do it, I think that’s a mistake,” Dodd added. “Except in the most extreme circumstances where you need someone because of an emergency pending, but as a routine matter, I think it’s a fundamental mistake.”

Go Cheney yourself Mr. Distinguished Gentleman from Connecticut.

Is the Obama Administration Sabotaging the CFPB Already?

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There are increasing reports that Elizabeth Warren, largely as a result of a growing chorus among liberals to appoint her as head of the Consumer Financial Protection Bureau, will be the nominee as the first chair.

Well, I figured that if they were forced, as it appears that they are, then they would play to lose the nomination: After all, how tough is it to get Republicans to filibuster someone who wants to work for the average American?

Well, if the following report is true, then they are also sabotaging the CFPB as an organization as we speak, having tasked a Federal Reserve Governor and former banking industry lobbyist to start staffing the organization:

However, a source tells FDL News that Geithner is working on this process with Elizabeth Duke, a member of the Federal Reserve Board of Governors. Duke is a former community banker and the past head of the American Bankers Association, a trade lobby group. She served on the ABA’s board of directors from 1999 to 2006. The ABA opposed the Dodd-Frank bill almost entirely because of the Consumer Financial Protection Bureau.

What’s more, Duke herself specifically opposed an independent agency in July 2009 testimony, and endorsed keeping the responsibility for consumer protection in the Federal Reserve. In fact, she went further, promoting the Fed’s consumer protection prowess despite the agency having missed the housing bubble and the predatory lending that enabled it.

………

If the reports I’m getting are true, this is the woman dealing with staffing up and organizing the Consumer Financial Protection Agency, before the director gets a chance.

The Federal Reserve has not yet returned comment regarding Elizabeth Duke’s role.

This is crucially important. There’s a lot someone in power can do to mess with a federal agency at the outset. You can hire some staffers not committed to the agency’s goals, or give them poor working conditions, or any number of things. Then the new director comes in and is immediately faced with a turf war. If a community banker dismissive of consumer protections ends up setting the vision for the consumer protection bureau, it could slow its progress out of the gate. If the Department where the agency originates is more concerned with “extend and pretend” – letting the banks get out of trouble by earning their way past the bad loans on their books, in part through inundating consumers with higher fees on their products – then that worldview of the banks being more important than the people can get embedded into the agency.

Obviously, there are conflicting reports here, but I’m inclined to believe these reports.

Obviously, David Dayen’s suggestion that Obama do the right thing and, “without delay name her to the position of interim director by hiring her at Treasury,” is a good suggestion, but this assumes a level of support of the CFPB and its core mission, and I do not believe that.

First, I believe that Obama and his economic team really do buy into neoliberal idea that markets are always smarter and better than regulators, and second, I think that they honestly believe that the banking system will collapse if they generate profits by cheating ordinary Americans.

Of course I’ve been pessimistic about Obama for about three years, so feel free to argue that I’m not hopey changey enough.

About a Lot More Than the iPhone

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The Library of Congress, which has the power to create exemptions to the DMCA, has has made just released very significant carve outs, though to read the New York Times, it’s all about the iPhone.

You see, two of the things that are now allowed under the ruling are software to “jailbreak” the iPhone, both to allow non-Apple™ App Store applications, and to use the iPhone on a non AT&T networks.

Actually, this applies to all cell phones, but this is not a big deal.

What you also have is:

  • The right to rip short videos from DVDs for the educational and criticism purposes.
  • Defeating video game encryption for, “The purpose of good faith testing for, investigating, or correcting security flaws or vulnerabilities”.
  • Circumventing dongles when they become obsolete or exit manufacture.
  • Allowing circumvention of technical measures on E-Books to allow them to be read aloud.

This is stunning. It is consumer friendly, good policy, and common sense.

I would never have expected any of the three things to happen with the US copyright establishment.

I must therefore assume that this was as a result of input from political appointees in the USPTO and Library of Congress, this is fairly radical for career bureaucrats, and as such we need to give the White House credit.

I will note that there is still a work around that Apple™ could use which would make non App Store applications illegal, by using the Sega strategy, which involved using a verification key (the letters S-E-G-A) which would load the banner message, “PRODUCED BY OR UNDER LICENSE FROM SEGA ENTERPRISES LTD,” before the program loaded (thanks for the legal research from DC at SP), which made jail-breaking the console a trademark violation.

I don’t see Apple™ doing this, I think that it would unleash regulatory and customer blow-back, but the legal precedent remains there.

Link to the official anti-circumvention rule-making.

It’s Bank Failure Friday!!!!

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And here they are, ordered, and numbered for the year so far.

  1. Sterling Bank, Lantana, FL
  2. Crescent Bank and Trust Company, Jasper, GA
  3. Williamsburg First National Bank, Kingstree, SC
  4. Thunder Bank, Sylvan Grove, KS
  5. Community Security Bank, New Prague, MN
  6. SouthwestUSA Bank, Las Vegas, NV
  7. Home Valley Bank, Cave Junction, OR

Full FDIC list

Another 6 A 7 bank closing week, and we’ve broken 100 banks, and it is not yet August. we are certainly going to beat the tally of 140 for 2009. (Yes, I posted to soon, and needed to update)

So, here is the graph pr0n with trendline (FDIC only):

I would note that are now at the point where the utility of the least squares trendline is diminishing, but I’m keeping it here for historical purposes.

Credit Ratings Freak Out

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One of the tidbits in the financial reform bill was a provision making the ratings agencies liable for the quality of their reports, which is a good thing, since they are nominally experts, and expert opinions of this sort are generally subject to lawsuits for fraud and incompetence.

Their protection from lawsuits had a direct correlation with the crap that Moody’s Fitch’s, and S&P pumped out their door over the past few years.

The thing is, however, that the ratings agencies are completely freaking out over this, and are now demanding that their ratings not be included in bond sales prospectuses:

Standard & Poor’s, Moody’s Investors Service and Fitch Ratings are all refusing to allow their ratings to be used in documentation for new bond sales, each said in statements in recent days. Each says it fears being exposed to new legal liability created by the landmark Dodd-Frank financial reform law. The new law will make ratings firms liable for the quality of their ratings decisions, effective immediately. The companies say that, until they get a better understanding of their legal exposure, they are refusing to let bond issuers use their ratings.

What they are saying here is that they are unwilling to actually rate bond issues if there is the slightest chance that their own incompetence or corruption might get them successfully sued.

Well, for most of the rest of us, if we screw up a home repair, leave a cell phone in a patient during an operation, or leave an oil plug off of a car, we are liable, and the world works.

The ratings agencies have no special right to be unaccountable.

Hungary Passes The Bank Tax

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Hungarian parliament has passed a law assessing a ½% levy on banks assets.

Needless to say, the banks are having a conniption over this:

Domestic and foreign banks doing business in Hungary have complained about the tax as well. Erste and Raiffeisen, two banks based in Vienna that have branches in Hungary, estimate they would have to pay €40 million and €35 million, or $52 million and $45 million, respectively.

“This tax is a quick-win measure, and only that,” said Juraj Kotian from Erste Group Bank in Vienna. “It does not provide any sustainable support for budget consolidation.”

The European Banking Federation called for a “profound modification” of the tax, saying it was a discriminative levy that would cause losses at some lenders and hamper economic growth.

This tax, which includes a levy on insurance companies as well is raising hackles for the same reason that Malaysia’s imposition of capital controls was vociferously attacked during the 1997 Asian financial crisis, because the market participants are terrified at the thought that this might work.

After all, Hungary is a very small fish in the overall EU economy, so if this tax fails, the impact is minimal, but if it is successful, then you can see an explosion in such taxes, just as you saw nations ignoring the IMF and imposing their own capital controls following Malaysia’s relatively mild recession and quick recovery.

If this becomes a more general practice, then it starts eating into 7 figure banker bonuses, which is not what the bankers want.

My prediction is that this will shrink the finance industry significantly in Hungary, and with the generally bloated and parasitic industry cut down to size, the Magyar republic will outperform its neighbors.

My earlier post on the attempts by the EU and IMF to browbeat the Hungarians into being the bank’s bitches is here, and my advice to them remains the same: back away from joining the Euro and set about leaving the European Exchange Rate Mechanism.

US Broadband is Now So Bad……

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That even in the phony metrics commissioned by the US incumbent carriers, the United States is no longer in first place:

The United States has lost the top spot in Nokia Siemens Networks’ annual broadband development index, the Connectivity Scorecard, to Sweden.

The Connectivity Scorecard is, as Stacey Higginbotham reports for GigaOM, a favorite measure of the telecom industry, since it paints the America in a particularly favorable light.

It’s gotten so bad that even when using the bogus metrics favored our the telco incumbents who took billions in government dollars and gave us nothing, we still cannot win.

It’s time to stop bribing the monopolists, and start actually instituting real regulations that require real performance.