A big part of the reason behind the financial crash was a lack of sensible practice within the industry. Here's a rundown on the consumer protection provisions in the new financial reform bill. You can read more in this New York Times article. Yahoo News has a good synopsis here.
A new Consumer Financial Protection Bureau will be created, housed in the Federal Reserve. It will consolidate the functions of numerous existing bodies, and its sole responsibility will be to safeguard the interests of consumers. This was a key element championed by consumer groups such as AARP and consumer advocate Elizabeth Warren, Congressional watchdog over TARP funds.
Financial institutions and instruments such as banks, mortgage lenders, credit card and private student loan companies, payday lenders, community banks and credit unions will be subject to new rules and transparency requirements. People can get a copy of their credit report annually by going to AnnualCreditReport.com. Lenders will have to actually check people's income and assets. There can be no prepayment penalties for adjustable rate mortgages and no bonuses can be paid to salespeople based on the interest rate the customer gets. Origination fees will be capped at 3%.
Banks will have to keep a stake in the loans they make. They will not just be able to sell them all off once made, thus giving them an incentive to make sure they are extending good loans to credit worthy customers. Trading in such exotic instruments as derivatives will not be banned, but banks will be able to commit no more than 3% of their assets to them and at least they will all have to be conducted openly will full public disclosure. If banks fail the industry itself will pay the costs rather than a federal bailout fund. (Depositors' money will still be guranteed by the FDIC.)
In addition to the significant credit card reforms already enacted last year sellers will be able to offer customers discounts for paying cash but will not be able to offer discounts for using one credit card over another.
There were setbacks for consumer protection in the agreement. For one thing, auto dealers were excluded. For another, annuities escaped some of the strong scrutiny other instruments will face. But in total, these developments represent a gain for consumers and a bit of a brake for some of the recklessness that led to the latest meltdown.
It is an achievement that never would have happened under the other party and that Obama and the Democrats will tout as the midterms approach.
Saturday, June 26, 2010
Wednesday, June 23, 2010
Obama Shows Leadership, Sacks McChrystal
Today President Obama did what he needed to do. In accepting the resignation of Afghanistan commander Gen. Stanley McChrystal the President asserted civilian control of the military, showed himself to be a strong leader and served notice that disrespect verging on rank insubordination cannot be tolerated.
Revelations that came out yesterday about a story in an upcoming issue of Rolling Stone Magazine appeared to show the general and his staff openly contemptuous of the authority of the Vice President, Chairman of the Joint Chiefs of Staff, Ambassador to Afghanistan and the National Security Advisor. A reference to the President himself was in a similar vein. The quotes have to be seen to be believed. Click here for a synopsis.
An attitude that would not be acceptable for a lieutenant with respect to a captain or major certainly cannot be permitted with respect to the top members of the chain of command. Obama would have been seen as weak beyond redemption had he not reined in such public humiliation.
Fortunately, the highly respected and proven effective counterinsurgency leader Gen. David Petraeus was available and willing to take a step down from theater commander to take McChrystal's place at the head of operations in Afghanistan. But even if he hadn't been, Obama would have needed to make the change. A soldier who doesn't know enough to act like one cannot be trusted in a position like McChrystal held. Obama correctly acted without delay in getting rid of him. This was a job well done.
Revelations that came out yesterday about a story in an upcoming issue of Rolling Stone Magazine appeared to show the general and his staff openly contemptuous of the authority of the Vice President, Chairman of the Joint Chiefs of Staff, Ambassador to Afghanistan and the National Security Advisor. A reference to the President himself was in a similar vein. The quotes have to be seen to be believed. Click here for a synopsis.
An attitude that would not be acceptable for a lieutenant with respect to a captain or major certainly cannot be permitted with respect to the top members of the chain of command. Obama would have been seen as weak beyond redemption had he not reined in such public humiliation.
Fortunately, the highly respected and proven effective counterinsurgency leader Gen. David Petraeus was available and willing to take a step down from theater commander to take McChrystal's place at the head of operations in Afghanistan. But even if he hadn't been, Obama would have needed to make the change. A soldier who doesn't know enough to act like one cannot be trusted in a position like McChrystal held. Obama correctly acted without delay in getting rid of him. This was a job well done.
Saturday, June 19, 2010
Star Wars in Concert
Thursday night my wife and I went to see "Star Wars in Concert" at the Save Mart Center arena in Fresno. An 86-piece orchestra played the epic John Williams music, a 60-foot screen showed accompanying footage from the six films and the whole was narrated by Anthony Daniels, who played C3PO though the entire 28 years of the saga. (Yes, he really talks like that!) It was a tour de force, well worth 4 stars on my entertainment rating scale. You can see images from the Fresno Bee here.
Though there were many, many families present among the crowd of thousands, it may be difficult for some younger people to appreciate the immense impact the inception of the Star Wars franchise had with the first film in 1977. I suppose the more recent Harry Potter phenomenon might be the closest parallel. Star Wars was truly transformative.
The initial release in 1977 wasn't that well publicized. I had heard about the film but was reluctant to go, afraid of being disappointed by yet another sci-fi dud. Then I heard one guy at work talking it up. He said he had "seen it again last night." Again? I asked him how many times he'd seen it. "Seven," he replied. OK, I figured, this is worth a try.
For one thing, it was the first space film in which the special effects were believable. In fact, they were more than that. They were, for the time, awe-inspiring. They hold up well even today, for that matter. The first scene in which Princess Leia's ship crosses the screen (the beginning of Episode IV as they are now numbered) followed by the immensity of a pursuing Imperial star destroyer left all audiences slack-jawed in amazement. The music, too, was incredible. Inspiring, haunting, romantic, funny, action-filled, celebrational, sinister, you name it, the compositional genius produced masterworks so integral to what was happening on screen they were seemingly felt rather than heard. If more classical music was like that symphony halls would be packed all over the world--and not just by the upper sliver of the social pyramid.
George Lucas's classic tale of good vs. evil told against a backdrop of heroism, sacrifice and personal redemption came during the post-Vietnam era when Americans craved a clearly defined and spiritually based affirmation. Yet its international popularity also demonstrates the universality of its themes across the human family.
It is a modern statement of that oldest of Western themes, The Quest, that goes all the way back to Gilgamesh and The Odyssey. Honor and justice matter. There is power in evil but good will overcome it if it remains steadfast and true. And no one is so far gone that they cannot atone and once more be made whole.
It was a grand show. If you get a chance and it comes to your locality I heartily recommend getting some tickets and losing yourself in the magic.
Though there were many, many families present among the crowd of thousands, it may be difficult for some younger people to appreciate the immense impact the inception of the Star Wars franchise had with the first film in 1977. I suppose the more recent Harry Potter phenomenon might be the closest parallel. Star Wars was truly transformative.
The initial release in 1977 wasn't that well publicized. I had heard about the film but was reluctant to go, afraid of being disappointed by yet another sci-fi dud. Then I heard one guy at work talking it up. He said he had "seen it again last night." Again? I asked him how many times he'd seen it. "Seven," he replied. OK, I figured, this is worth a try.
For one thing, it was the first space film in which the special effects were believable. In fact, they were more than that. They were, for the time, awe-inspiring. They hold up well even today, for that matter. The first scene in which Princess Leia's ship crosses the screen (the beginning of Episode IV as they are now numbered) followed by the immensity of a pursuing Imperial star destroyer left all audiences slack-jawed in amazement. The music, too, was incredible. Inspiring, haunting, romantic, funny, action-filled, celebrational, sinister, you name it, the compositional genius produced masterworks so integral to what was happening on screen they were seemingly felt rather than heard. If more classical music was like that symphony halls would be packed all over the world--and not just by the upper sliver of the social pyramid.
George Lucas's classic tale of good vs. evil told against a backdrop of heroism, sacrifice and personal redemption came during the post-Vietnam era when Americans craved a clearly defined and spiritually based affirmation. Yet its international popularity also demonstrates the universality of its themes across the human family.
It is a modern statement of that oldest of Western themes, The Quest, that goes all the way back to Gilgamesh and The Odyssey. Honor and justice matter. There is power in evil but good will overcome it if it remains steadfast and true. And no one is so far gone that they cannot atone and once more be made whole.
It was a grand show. If you get a chance and it comes to your locality I heartily recommend getting some tickets and losing yourself in the magic.
Thursday, June 10, 2010
Supreme Court Blocks Arizona Clean Money Campaign
It was bad enough when the U.S. Supreme Court recently ruled that corporate money could be spent on political speech without limits. But now it has really gone over the line in issuing an immediate stay against Arizona's 10-year-old campaign finance system.
Though I don't agree with the first ruling, I can understand it. If you grant that a corporation is a "person" entitled to First Amendment protection and that society has no interest in trying to maintain fairness in political campaigns (two very big ifs) then I can see where the conservative court majority is coming from. They say you can't restrict advertising from any quarter.
Yesterday's intervention in Arizona's clean money system is a different animal altogether. Before even hearing the case, they issued an emergency order to prevent the state from disbursing matching funds to candidates already entitled to it under existing law in the middle of a campaign. Somehow they seem to feel that "First Amendment free speech rights of wealthy or well-heeled candidates are violated when extra money flows to their opponents." The Arizona system results in a greater amount and more balanced speech, not less. And talk about "judicial activism." Governor Jan Brewer, who had $1.4 million in matching funding pulled from her by the ruling after her primary opponent Buz Mills had already spent over $2 million, lamented, "It is extremely unusual for the judicial branch to change the rules of an election while it is being held."
The current court is more and more brazenly favoring corporations and the wealthy over any and all attempts to level the playing field. This shows how crucial appointments to the high court truly are. Without a countervailing check soon, America is headed ever more inexorably toward an unabashed plutocracy.
I have two digressions to make here at the end. First, you might have noticed I have had to go to moderated comments recently. I started to get comments with links to pornographic sites and I want no part of that kind of stuff in my blog. So please go ahead and post, but just be aware that I'll have to take a look at it and approve it before it appears. Secondly, yes, I was elected to the Democratic County Central Committee in Tuesday's election. Many thanks to everyone who gave me your vote, your encouragement or recommended me to your friends. I will work to be worthy of your trust.
Though I don't agree with the first ruling, I can understand it. If you grant that a corporation is a "person" entitled to First Amendment protection and that society has no interest in trying to maintain fairness in political campaigns (two very big ifs) then I can see where the conservative court majority is coming from. They say you can't restrict advertising from any quarter.
Yesterday's intervention in Arizona's clean money system is a different animal altogether. Before even hearing the case, they issued an emergency order to prevent the state from disbursing matching funds to candidates already entitled to it under existing law in the middle of a campaign. Somehow they seem to feel that "First Amendment free speech rights of wealthy or well-heeled candidates are violated when extra money flows to their opponents." The Arizona system results in a greater amount and more balanced speech, not less. And talk about "judicial activism." Governor Jan Brewer, who had $1.4 million in matching funding pulled from her by the ruling after her primary opponent Buz Mills had already spent over $2 million, lamented, "It is extremely unusual for the judicial branch to change the rules of an election while it is being held."
The current court is more and more brazenly favoring corporations and the wealthy over any and all attempts to level the playing field. This shows how crucial appointments to the high court truly are. Without a countervailing check soon, America is headed ever more inexorably toward an unabashed plutocracy.
I have two digressions to make here at the end. First, you might have noticed I have had to go to moderated comments recently. I started to get comments with links to pornographic sites and I want no part of that kind of stuff in my blog. So please go ahead and post, but just be aware that I'll have to take a look at it and approve it before it appears. Secondly, yes, I was elected to the Democratic County Central Committee in Tuesday's election. Many thanks to everyone who gave me your vote, your encouragement or recommended me to your friends. I will work to be worthy of your trust.
Wednesday, June 2, 2010
Weaponized Botox?
I picked up a copy of the June, 2010 edition of Scientific American yesterday; thought I'd catch up on some of the interesting goings on in the world of science and technology. There's a lot of fascinating stuff in it, but one thing that truly caught my attention was an article by Ken Coleman and Raymond Zilinskas called "Fake Botox, Real Threat."
It seems illegal labs are producing the botulinum neurotoxin (BoNT) and selling it to unscrupulous doctors and cosmeticians. Irvine California based Allergan has the patent and there are only seven companies in the world licensed to make the popular substance that, injected in tiny amounts, reduces wrinkles. They estimate that up to 90% of the Russian market and a third to a half of the botox in some other countries are black market produced.
The problem is that BoNT is "the deadliest substance known to science." One ten millionth of a gram is a lethal injected dose for a 170 pound person. One gram could be lethal to 14,285 people if ingested, 1.25 million if inhaled and 8.3 million if injected. And they say that anyone with a master's degree in biology would have little trouble growing the anaerobic botulism microbes and harvesting their waste product, which is the BoNT. Chad Livdahl and Zarah Karim pleaded guilty to doing just that in 2006 and received sentences of nine and six years, respectively. Illicit production seems to be extremely high in Southern China and Southern Russia, possibly including Chechnya.
The ramifications for terrorists taking note of this are terrible to contemplate and probably just around the corner. If it's easy to grow and just a little bit of it can kill a whole lot of people it sounds like a mass murderer's dream-and everyone else's nightmare. It's just one more thing for the world's security agencies to worry about in our increasingly dangerous world.
It seems illegal labs are producing the botulinum neurotoxin (BoNT) and selling it to unscrupulous doctors and cosmeticians. Irvine California based Allergan has the patent and there are only seven companies in the world licensed to make the popular substance that, injected in tiny amounts, reduces wrinkles. They estimate that up to 90% of the Russian market and a third to a half of the botox in some other countries are black market produced.
The problem is that BoNT is "the deadliest substance known to science." One ten millionth of a gram is a lethal injected dose for a 170 pound person. One gram could be lethal to 14,285 people if ingested, 1.25 million if inhaled and 8.3 million if injected. And they say that anyone with a master's degree in biology would have little trouble growing the anaerobic botulism microbes and harvesting their waste product, which is the BoNT. Chad Livdahl and Zarah Karim pleaded guilty to doing just that in 2006 and received sentences of nine and six years, respectively. Illicit production seems to be extremely high in Southern China and Southern Russia, possibly including Chechnya.
The ramifications for terrorists taking note of this are terrible to contemplate and probably just around the corner. If it's easy to grow and just a little bit of it can kill a whole lot of people it sounds like a mass murderer's dream-and everyone else's nightmare. It's just one more thing for the world's security agencies to worry about in our increasingly dangerous world.
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