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None Dare Call It Maize

Matt Taibbi has been on a roll with these “Everything is Rigged’ articles and blog posts on the RS site. And now he rolls out another doozy on the ratings agencies, which I would call corrupt if the word retained any meaning whatsoever:

Thanks to a mountain of evidence gathered for a pair of major lawsuits by the San Diego-based law firm Robbins Geller Rudman & Dowd, documents that for the most part have never been seen by the general public, we now know that the nation’s two top ratings companies, Moody’s and S&P, have for many years been shameless tools for the banks, willing to give just about anything a high rating in exchange for cash.

In incriminating e-mail after incriminating e-mail, executives and analysts from these companies are caught admitting their entire business model is crooked.

“Lord help our fucking scam?.?.?.?this has to be the stupidest place I have worked at,” writes one Standard & Poor’s executive. “As you know, I had difficulties explaining ‘HOW’ we got to those numbers since there is no science behind it,” confesses a high-ranking S&P analyst. “If we are just going to make it up in order to rate deals, then quants [quantitative analysts] are of precious little value,” complains another senior S&P man. “Let’s hope we are all wealthy and retired by the time this house of card[s] falters,” ruminates one more.

Ratings agencies are the glue that ostensibly holds the entire financial industry together. These gigantic companies – also known as Nationally Recognized Statistical Rating Organizations, or NRSROs – have teams of examiners who analyze companies, cities, towns, countries, mortgage borrowers, anybody or anything that takes on debt or creates an investment vehicle.

Their primary function is to help define what’s safe to buy, and what isn’t. A triple-A rating is to the financial world what the USDA seal of approval is to a meat-eater, or virginity is to a Catholic. It’s supposed to be sacrosanct, inviolable: According to Moody’s own reports, AAA investments “should survive the equivalent of the U.S. Great Depression.”

Late capitalism is about all you can say. Every single descriptor is one that paints the picture of this crazy ‘system’ only working alongside dynamic constraints on human weakness and greed. Absent those, and we are absent most of those, we get this. It’s as indefensible as a plantation wedding in 2013, and everyone involved knows it. Read and share, especially enjoyable alongside the high-value TV commercials for multinational financial services corporations that support most programming these days.

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June 12, 1963

Fifty years ago today, Medgar Evers was shot dead in front of his home by a white supremacist.

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Still Howlin’

Born today in 1910, Mr. Chester Arthur Burnett, who we know better as Howlin’ Wolf. This seems appropriate

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Nice Things

Atrios made a really good point the other day, avec his typical pith:

And, yes, for whatever reasons, infrastructure projects, especially anything involving a tunnel or a bridge, are absurdly expensive compared to most countries. Other people can figure out just why that is and try to do something about it. But the choice is between increasing rail capacity into New York with an imperfect too expensive plan, or doing nothing at all anytime soon. We spend all kinds of money to do stupid destructive things that at best do nothing useful for us, so we should be willing to support spending all kinds of money on nice things when the opportunities present themselves.

I’d rather have a $10 billion pair of tunnels than spend $10 billion on equipment the military doesn’t even want. That probably isn’t a choice, either, but we do the latter all of the time. We shouldn’t get “sensible” when the former is an option.

This is the point, the rub, the crux and the nub all in one: spending money as the U.S. does on armaments and then rending garments about the costs of infrastructure projects, much less factoring in the externalities for things like car-driving and plane-riding, is our great contradiction as well as the most obvious quandary we are avoiding. This avoidance takes a lot of effort and, as he points out, resources that could be better-invested elsewhere.

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Could mean all kinds of things

I draw your attention to the following sentence in a Guardian article, featuring an alternative use of the word hoarding:

Dame Judi Dench has come to the defence of the drama school where she learned her Oscar-winning craft.

The London borough of Camden has banned two advertising hoardings outside the Royal Central School of Speech and Drama on supposedly aesthetic grounds.

The Central says that it receives up to £150,000 a year from advertisers using the sites, which it donates to theatre charities involving thousands of young people nationwide, and that there have been no complaints since they went up 27 years ago. An appeal to the secretary of state will be heard on Tuesday.

Next up: a discussion of advertising row.

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The moral burden of war

Sebastian Junger, journalist/author of The Perfect Storm and more recently a contributor to a film about soldiers (and the war) in Afghanistan, has a good Memorial Day reflection on war and what it does to people:

Typically, warriors were welcomed home by their entire community and underwent rituals to spiritually cleanse them of the effect of killing. Otherwise, they were considered too polluted to be around women and children. Often there was a celebration in which the fighters described the battle in great, bloody detail. Every man knew he was fighting for his community, and every person in the community knew that their lives depended on these young men. These gatherings must have been enormously cathartic for both the fighters and the people they were defending. A question like the one recently posed to me wouldn’t begin to make sense in a culture such as the Yanomami of Brazil and Venezuela or the Comanche.

Our enormously complex society can’t just start performing tribal rituals designed to diminish combat trauma, but there may be things we can do. The therapeutic power of storytelling, for example, could give combat veterans an emotional outlet and allow civilians to demonstrate their personal involvement. On Memorial Day or Veterans Day, in addition to traditional parades, communities could make their city or town hall available for vets to tell their stories. Each could get, say, 10 minutes to tell his or her experience at war.

Attendance could not be mandatory, but on that day “I support the troops” would mean spending hours listening to our vets. We would hear a lot of anger and pain. We would also hear a lot of pride. Some of what would be said would make you uncomfortable, whether you are liberal or conservative, military or nonmilitary, young or old. But there is no point in having a conversation about war that is not completely honest.

Whole thing, read the.

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Nothing for Water

One of my colleagues is being interviewed and quoted widely about this week’s deadly tornado in Oklahoma. As he tries to makes sense of the connections between extreme weather and climate change, I sure hope he can get through to some people who have been, let’s say, stubborn about the whole thing.

But another issue that is bad enough on its own but also brings that broader issues into focus is the draining of the Ogallala Aquifer in Texas. It’s important to remember about global warming and its associated devastations: the Earth will be fine – it’s people that won’t survive, especially difficult without water:

The Ogallala Aquifer suffered its second-worst drop since at least 2000 in a large swath of the Texas Panhandle, new measurements show.

The closely watched figures, published this week by the High Plains Underground Water Conservation District, cover a 16-county area stretching from south of Lubbock to Amarillo. The Ogallala wells measured by the district experienced an average drop of 1.87 feet from 2012 to 2013. That makes it one of the five or 10 worst drops in the district’s more than 60-year history, said Bill Mullican, a hydrogeologist with the district.

“There are some pretty remarkable declines,” Mullican said. One well in the western part of the water district, he said, dropped 19 feet over the year.

The vast majority of Texas is enduring a drought, but the Panhandle has been especially hard hit, causing farmers to pump more water to make up for the lack of rain. That depletes the amount of water stored in the aquifer over the long term, which means future generations will find less water to pump to grow crops.

via LGM. There are a ton of connected issues, of which drought is merely the worst.

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Plenty of Taste

Between occasional dalliances with The Sweet Cheat Gone after I found a first edition last year, I’ve returned to the new translation of Swann’s Way in honor of the 100th anniversary of its publication. Superb fun to fall into Proust’s ramblings on M. Swann and if you haven’t done so, highly recommended. A nugget from early on:

Their interest grew, however, when, the day before Swann was to dine with us, and when he had made them a special present of a case of Asti, my great-aunt, who had in her hand a copy of the Figaro in which to the name of a picture then on view in a Corot exhibition were added the words, “from the collection of M. Charles Swann,” asked: “Did you see that Swann is ‘mentioned’ in the Figaro?”

“But I have always told you,” said my grandmother, “that he had plenty of taste.”

“You would, of course,” retorted my great-aunt, “say anything just to seem different from us.” For, knowing that my grandmother never agreed with her, and not being quite confident that it was her own opinion which the rest of us invariably endorsed, she wished to extort from us a wholesale condemnation of my grandmother’s views, against which she hoped to force us into solidarity with her own.

But we sat silent. My grandmother’s sisters having expressed a desire to mention to Swann this reference to him in the Figaro, my great-aunt dissuaded them. Whenever she saw in others an advantage, however trivial, which she herself lacked, she would persuade herself that it was no advantage at all, but a drawback, and would pity so as not to have to envy them.

“I don’t think that would please him at all; I know very well, I should hate to see my name printed like that, as large as life, in the paper, and I shouldn’t feel at all flattered if anyone spoke to me about it.”

She did not, however, put any very great pressure upon my grandmother’s sisters, for they, in their horror of vulgarity, had brought to such a fine art the concealment of a personal allusion in a wealth of ingenious circumlocution, that it would often pass unnoticed even by the person to whom it was addressed. As for my mother, her only thought was of managing to induce my father to consent to speak to Swann, not of his wife, but of his daughter, whom he worshipped, and for whose sake it was understood that he had ultimately made his unfortunate marriage.

“You need only say a word; just ask him how she is. It must be so very hard for him.”

My father, however, was annoyed: “No, no; you have the most absurd ideas. It would be utterly ridiculous.”

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Budget Deficit: Disappearing

If you read Paul Krugman, and you really should read Paul Krugman, this will come as exactly no news at all to you. But it’s a good thing Republicans have found some fake scandals to spike their poutrage, becuase the thing they’ve been screaming about for the last three years is going away:

according to the Congressional Budget Office, the debt disaster that has obsessed the political class for the last three years is pretty much solved, at least for the next 10 years or so.

The last time the CBO estimated our future deficits was February– just four short months ago. Back then, the CBO thought deficits were falling and health-care costs were slowing. Today, the CBO thinks deficits are falling even faster and health-care costs are slowing by even more.

Here’s the short version: Washington’s most powerful budget nerds have cut their prediction for 2013 deficits by more than $200 billion. They’ve cut their projections for our deficits over the next decade by more than $600 billion. Add it all up and our 10-year deficits are looking downright manageable. Following are the highlights.

Charts and graphs at the link, but you get the picture. Jees, these people.