The US Federal Reserve has stepped in to bail out the financial sector, cutting its discount rate and, more importantly, encouraging banks to borrow directly from the Fed to finance mortgage lending. This action demonstrates that the famous “Greenspan put” has survived, and is now the Bernanke put.
From the monthly archives:
August 2007
Our wedding was, in so far as any can be, a happy accident, and nearly as low-key as possible (we had four guests, I made dinner, and the secretary in the UC Davis Philosophy department who was a minister of that church that the Revd. Jim was with in Taxi, signed the papers with us. She subsequently presided over an even more minimalist wedding, inspired by ours, over lunch on a workday in the outstanding student cafeteria they used to, and for all I know still, have there). So, no family, and not much in the way of gifts.
So you might think I’m not one to offer advice on what to ask for for a wedding present. But, as ever, I have strong opinions, after 15 years of marriage, about what is actually worth having, and feel obliged to pass them on to my excellent friends who are about to tie the knot, and have relatives who will not only attend the wedding but are keen to give them gifts. Here are my 4 top picks:
With stock markets down 10-15 per cent in the last few weeks, it’s a good time to ask whether this will have real effects beyond the value of our superannuation. The immediate starting point of the current disruptions was evidence that defaults on US mortgage markets were worse than expected. An obvious question is whether this underlying shock is large enough to have substantial effects in itself, or whether the problem is mainly one of liquidity and confidence.
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“Uncle Zip”:http://uzwi.wordpress.com/2007/08/14/double-bind/ (aka M. John Harrison).
Reading Benjamin R Barber’s Consumed: How markets corrupt children, infantilize adults, and swallow ctizens whole, & invincibly reminded of some of the weird contortions Thomas de Zengotita (Mediated: How the media shape your life and the way you live in it) put himself through to avoid looking as if he was saying what he was so obviously saying, I determined to write a book of cultural criticism of my own, to be called Nuanced: How the contemporary left has been forced into hypocrisy, temporising & doublespeak by the fear that no one would otherwise publish, buy or read its books of cultural criticism. Damned if he does & damned if he doesn’t in a culture that simply won’t be criticised, Barber explains why this can’t actually be described as a form of soft censorship proceeding from what unstreamlined old lefties would have called f**** c************. Not a bad thing, because it forces him to find a new way of (not) saying it, & books like Consumed–unable to point the finger at their own potential readership for fear of losing it–survive the market only on their ability to confect neologisms & catchwords, presumably in imitation of the business bestsellers & aspirational texts which they don’t actually want to be seen to be contradicting.
When I’ve finished Nuanced I’ll move on to Fucked.
Our new prime minister recently declared that the function of universities is to equip people with the skills necessary for the modern economy. The Guardian’s “higher education” section “reports today”:http://education.guardian.co.uk/higher/news/story/0,,2147814,00.html that
bq. A degree is being launched to meet the rising demand for skilled crew to work on billionaires’ luxury vessels. …. On sailing and motor vessels whose lengths range from 24 metres up to destroyer-size mega-boats owned by the world’s richest billionaires, it seems you simply cannot get the staff these days.
No doubt some enterprising new university will soon be offering degree courses in being a butler or in being some other kind of lackey or flunkey (indeed, I expect commenters will point out that they already are!).
“Megan”:http://fromthearchives.blogspot.com/2007/08/sampling-bias.html of _From the archives_ won’t be surprised that “this _NYT_ article”:http://www.nytimes.com/2007/08/12/weekinreview/12kolata.html?_r=1&oref=slogin, claiming that:
One survey, recently reported by the federal government, concluded that men had a median of seven female sex partners. Women had a median of four male sex partners. Another study, by British researchers, stated that men had 12.7 heterosexual partners in their lifetimes and women had 6.5. But there is just one problem, mathematicians say. It is logically impossible for heterosexual men to have more partners on average than heterosexual women. Those survey results cannot be correct.
is already “getting”:http://ezraklein.typepad.com/blog/2007/08/i-caught-a-fish.html “play”:http://www.chrishayes.org/blog/2007/aug/13/im-back/ in the blogosphere. The only thing is that it _isn’t_ logically impossible, at least as the author presents it. Ask “Andrew Gelman”:http://www.stat.columbia.edu/~cook/movabletype/archives/2007/08/medians.html
Jeff’s response: MEDIANS??!! Indeed, there’s no reason the two distributions should have the same median. I gotta say, it’s disappointing that the reporter talked to mathematicians rather than statisticians. (Next time, I’d recommend asking David Dunson for a quote on this sort of thing.) I’m also surprised that they considered that respondents might be lying but not that they might be using different definitions of sex partner. Finally, it’s amusing that the Brits report more sex partners than Americans, contrary to stereotypes.
The Iraqi employees of the British Army story has continued to roll on, with some amount of mainstream media attention (particularly in the Times) and the first wave of responses from MPs. Any CT readers with a UK MP who didn’t write to their MPs last week, you still have time to do so, but potentially not very much time. For one thing, the British Army is withdrawing from Basra town, meaning that it is going to be much more difficult for the employees to be protected. For another, the government (an uncharitable man would say “the New Labour spin machine”) is trying to suggest that the problem can be solved by giving visas only to the 91 individuals who had been employed as translators by the British Army. This is clearly inadequate – the way Des Browne is quoted, it doesn’t even sound as if protection is being extended to families – and I’d be grateful if our readers could mention this.
By the way, the last comments thread on this subject was a bit of a disgrace. Can I make it very clear that anyone using the word “harki” is going to get themselves banned immediately and without appeal. The very idea that people who read this blog might think that the massacres in 1960s Algeria represent a model for an anti-imperialist struggle frankly gives me the creeps. I will charitably assume that the term was used out of ignorance by people who’d only heard it in the context of Zinedine Zidane, for the time being, but any evidence to the contrary and you are banned my son (the commenters in question know who they are). Ditto “quislings”, “collaborators” and any other terms which say or imply that the massacre of civilians by self-styled “resistance” movements isn’t mass murder or isn’t a war crime (as Conor Foley notes in the comments to this trainwreck, there is a decent case for saying that, along the lines of the Rwandan radio trials, advocating a war crime is a war crime itself).
Both “Ross Douthat”:http://rossdouthat.theatlantic.com/archives/2007/08/partisanship_and_the_national.php and “Matt Yglesias”:http://matthewyglesias.theatlantic.com/archives/2007/08/may_i_have_another.php suggest that I was wrong to “claim”:https://crookedtimber.org/2007/08/06/trahisons-des-clercs-2/ last week that Kristol and Kagan were more interested in Republican hegemony than in the actual worth of their foreign policy ideas when they wrote their famous 1996 “essay”:http://www.carnegieendowment.org/publications/index.cfm?fa=view&id=276 on the virtues of a neo-Reaganite foreign policy. What I said then was short-hand for what I said at greater length in a paper that I wrote a couple of years ago for an APSA panel that Russell Arben Fox chaired on conservatism. The paper has never seen the light of day, and probably never will (it wasn’t really an academic paper so much as a glorified form of current commentary; something less than academic research but more than a blogpost), so I may as well link to it “here”:http://www.henryfarrell.net/conservatism.pdf and excerpt the key bit that speaks to this argument (below the fold). [click to continue…]
In the 19th Century, Romnementum was a patent medicine compounded of equal parts chaff, opium and horse liniment.
Romnementum was also Agamemnon’s ne’er-do-well brother. Before that, I believe he was a Babylonian demi-god who met a sticky end. (Possibly I’m confusing him with some or other Jack Kirby character?)
But after the Ames straw poll, has Romney given new life to this old notion? What do you think? Does the man have …. Romnementum?
Hugh Hewitt is trying to sell it. As of this posting, his commenters are running cold. Let’s make this a Republican horse-race thread.
Good stuff. Someone should hire this guy. (Via Unfogged.)
Alex Tabarrok and Dani Rodrik have moved from arguing about industrial policy into arguing about the blinkers (or otherwise) of libertarianism.
“Dani”:http://rodrik.typepad.com/dani_rodriks_weblog/2007/08/irreconcilable-.html
It is in that spirit that I have been mulling about the derision and incredulity with which my recent post on industrial policy was met among some libertarian bloggers. … The real revolutionaries here are the libertarians. They envisage a real good world out there that looks like nothing we have now (or have ever had), and they want us to get there. Second, there are really deep philosophical differences here that have nothing to do with economics per se. Most importantly, I believe government can be a force for good; they do not. But third, libertarians hold on to their priors so strongly that they seem impervious to evidence. They shrug off the fact that there is more freedom and more wealth in those parts of the world where the government is stronger, not weaker. With respect to industrial policy proper, they refuse to engage with the fact that every nation that has grown rapidly has made use of it. I look at the world and see some government programs that work and others that fail. I want to understand what determines these outcomes, and to know how we can improve the ratio of the first to the second. When libertarians look at the same programs, they see one wreck after another.
“Alex”:http://www.marginalrevolution.com/marginalrevolution/2007/08/dani-rodrik-has.html
Dani Rodrik responds here to my pointed remarks on his argument for industrial policy. Rodrik’s response, however, is along the same lines of his earlier – “I’m sophisticated, your simplistic” – post on why economists disagree. In this case, it’s ‘libertarians are ideologues who are immune to evidence.’ Rodrik, however, has painted himself into a corner because he cannot at the same time say that the “systematic empirical evidence” for market imperfections in education, health, social insurance and Keynesian stabilization policy is “sketchy, to say the least” (also “difficult to pin down” and ‘unsystematic’) and also claim that libertarians are ideologues who are immune to evidence. Say rather that libertarian economists are immune to sketchy, unsystematic, difficult to pin down evidence. Rodrik is thus right that he is “not as unconventional as I sometimes think I am. The real revolutionaries here are the libertarians.” The libertarian economists are revolutionaries, however, not because they are immune to evidence but because they respect evidence so much that they are unwilling to accept “conventional wisdom” simply because it is conventional.
We might test judgment by asking, on the issue of Iraq, who best anticipated how events turned out. But many of those who correctly anticipated catastrophe did so not by exercising judgment but by indulging in ideology. They opposed the invasion because they believed the president was only after the oil or because they believed America is always and in every situation wrong.
The people who truly showed good judgment on Iraq predicted the consequences that actually ensued but also rightly evaluated the motives that led to the action. They did not necessarily possess more knowledge than the rest of us. They labored, as everyone did, with the same faulty … [ok, enough of that.]
Others have picked on him already, but this Ignatieff fellow, with his ‘yes, they had justified, true belief that the war was a bad idea, but it didn’t amount to knowledge‘ line, is … well. (Alternative post title: when life gives you lemons, make false lemma-ade. Maybe that’s the analytic philosopher in me talking.)
I got an email today from Phillip Coticelli at Africa Fighting Malaria pointing to a study by Donald Roberts (PDF), showing that DDT has a repellent effect in addition to its toxicity. The key finding is that that three out of five DDT-resistant Aedes aegypti mosquitoes avoid huts sprayed with DDT. Roberts argues that this is a reason for preferring DDT to alternative pesticides such as dieldrin. A few points about this are worth making
* First, it’s good to see AFM acknowledging the fact of pesticide resistance, which primarily accounts for the abandonment of large-scale attempts to eradicate malaria-carrying mosquitoes with pesticides. The libel put out by people like Steven Milloy and AFM founder Roger Bate[1], in which it is suggested that the failure of the eradication program was due to a mythical ban on DDT imposed at the behest of environmentalists, who callously caused millions of deaths, depends critically on ignoring resistance.
* Second, although the study is new, the claim is not. Roberts has been arguing the importance of repellent and irritant effects for a long time. And while the reporting of this study suggests that these benefits are unique to DDT, other work by Roberts has found that permethrin and deltamethrin are just as effective in this respect.
How does this relate to the general debate over the use of hut spraying as a strategy to fight malaria?
All this harshing on Michael Ignatieff for his ponderous, air-filled essay on Iraq reminded me of a characterization of him I’d read a few years ago. I couldn’t remember the source, only the phrase. But Google remembers:
bq. The staff of BBC2’s late Late Show used to have a little joke about one of its presenters, Michael Ignatieff. Everyone knows what an idiot savant is: someone who appears to be an idiot but in fact is a wise man. Well, Ignatieff was a savant idiot.
Yes, I know that’s not really what an idiot savant is, but you get the point.
From Glenn Loury’s “excellent article”:http://www.bostonreview.net/BR32.4/loury.html in the new _Boston Review_ on why there are so many people in US prisons, and why so many of these people are black.
… something interesting seems to have been going on in the late 1960s regarding the relationship between attitudes on race and social policy. Before 1965, public attitudes on the welfare state and on race, as measured by the annually administered General Social Survey, varied year to year independently of one another: you could not predict much about a person’s attitudes on welfare politics by knowing their attitudes about race. After 1965, the attitudes moved in tandem, as welfare came to be seen as a race issue. Indeed, the year-to-year correlation between an index measuring liberalism of racial attitudes and attitudes toward the welfare state over the interval 1950–1965 was .03. These same two series had a correlation of .68 over the period 1966–1996.