"Deep into the bowels of house music..."

I never did a "best of 2008" list, much to my own chagrin, and now I can't really remember what I would have said was my favorite album of year was. But the more I listen to it, the more DJ Sprinkles's Midtown 120 Blues, released late 2008 and not heard by me until 2009, has become quite possibly my favorite album of last year. The most intelligent house album, about house music, i have heard, possibly ever? And beautiful, deep lush piano, warm warm beats, not so much for dancing as for inhabiting a mindset where dancing is assumed to already be happening, and instead you can sit there and think about why people would dance in the first place. But that's not fair either, because this is not a cold, cerebral album, it is warmth and caring, soothing the pains and cares of the world. When you're tired on a Monday morning after moving boxes and furniture all weekend (as I am, as I did), this music is pure balm for the mind and body.

I would go on, but I am tired and my ability to write is negligible right now. But get this album. A beautiful house album made with intelligence and insight.

Informational black holes

The thing about places like Sudan and Somalia or the North-west regions of Pakistan, is that the US and other nations claim that due to their lawlessness and general lack of outside access, they are perfect breading grounds for terrorism, where the ever elusive forces of the worldwide islamist jihad can gather together in secrecy to plot the western worlds demise. But the thing is, this same lawlessness, same lack of access is also used as cover by western nations to perform acts of aggression that they could never get away with in countries with a more developed infrastructure. Case in point, Israel's bombing of a convoy of trucks in Sudan, or any of the recent US drone attacks in pakistan. The same factors that make it hard for Western nations to know what's going on in these regions makes it hard, well, for Western nations to know what's going on in these regions! The Israeli attack occurred about 2 months ago, and it wasn't until a complaint from the Sudanese minister of highways that news of these information slowly leaked into the western world.

Point being that both sides of these conflicts are knowingly using the informational black hole of these regions to perform some very criminal acts.

Capitalism Today!

So let's try and parse the latest Obama bailout plan. Bad debts, these bloody mortgage back securities and the like, are auctioned off by this program, whatever the hell its called now. And who knows how it's decided which securities get auctioned off and which don't, let's just assume lot's of political back-room influence peddling and, if we're lucky, some outright bribes. Anyway, so private investors are making the bids at this auction, setting the price of these securities through "the magic of the market" so that they get valued somewhere below their face value but above zero. But here's the thing, though they are setting the price, they are not actually footing all the cash to make the purchase. Oh no not at all. They are, in fact, footing 1/14th of the cash, aka ~7.14%. Where does the rest of the cash come from? Well the US Treasury foots another 14th, part of the leftover cash from TARP. The rest of it is covered by miracle of "leverage," a loan guarantee of the remainder of the amount from the FDIC (so essentially, the Federal Reserve Bank).

Now this all works out okay if the these securities never fall apart and mature at par. In fact everyone makes money that way. Hooray! Of course, the fact that the party setting the price of these securities (through the auction) has so little money at risk will likely drive up the prices to unnatural levels, but that's alright, cuz it just mean the banks will get more money from this, right?

But what happens when it all goes tits-up? Well the private investor loses his/her money first, since apparently this whole thing is structured like a CDO, with different tranches at different risk levels, and the private investor get the riskiest tranche. This is supposedly to ensure that the prices investor pay for the securities aren't inflated because the investors are insulated from all the risk. Which is questionable, because in a way they ARE insulated from all the risk, or at least most of it. The Fed has the lion's share of the risk. And that's how it goes, next the Treasury is hit up for cash, and then the Fed, which is really just another arm of the US Gov't. Which means it all ends up in the taxpayers lap, resulting in higher taxes and/or inflation. Especially since the reason why these mortgage backed securities would have defaulted would be because the economy would have continued to decline == less tax revenue for the gov't == no money for them to pay for any new debt.

Long term then, this plan sinks or swims on whether the assets that are these securities are based upon are actually worth what they say they are, or are, in fact, worth much less. Now recall that not long ago I was writing about how the model the mortgage-backed securities were based on assumed unlimited housing price growth as extrapolated from the last ten years-worth of housing boom, and that the housing prices themselves were inflated due to the fantastically shit-storm-creating feedback loop of the securities themselves. So let's just say that the prices may have been a bit skewed towards the high-end.

In the short term, there is also a good chance of fucked-up-ness. These auction will be interesting to see. Because if the banks sell their 'toxic' assets off for less then they are currently valuing them on their books, then they will have lost significant chunks of cash which they will then need to recoup somehow, either from the still largely frozen credit markets, or more likely from the government again. AIG in particular seems to be essentially insolvent, so even the smallest of losses could set of a serious chain reaction.

Really, just nationalize the fucking banks already.

What a complete and utter asshat

 Just another Bush factoid re: how horrendously evil a president he was (from the NYT):

Mr. Bush frequently used signing statements to declare that provisions in the bills he was signing were unconstitutional constraints on executive power, claiming that the laws did not need to be enforced or obeyed as written. The laws he challenged included a torture ban and requirements that Congress be given detailed reports about how the Justice Department was using the counter-terrorism powers in the USA Patriot Act.

Dating back to the 19th century, presidents have occasionally signed a bill while declaring that one or more provisions were unconstitutional. Presidents began doing so more frequently starting with the Reagan administration.

But Mr. Bush broke all records, using signing statements to challenge about 1,200 bill sections over his eight years in office — about twice the number challenged by all previous presidents combined,[my emphasis] according to data compiled by Christopher Kelley, a political science professor at Miami University in Ohio.

Many of Mr. Bush's challenges were based on an aggressive view of the president's power, as commander-in-chief, to take actions he believed necessary to protect national security regardless of what Congress said in federal statutes.

Asshole.

When good intentions really just ain't enough

Maybe charging the president of Sudan with war crimes wasn't such a great idea after all (via the always on-point lenin's tomb)

damn

Slipped up on posting again. It's hard damnit, trying to be witty or intelligent. But that's at least part of the goal, to keep writing, keep the ideas flowing see what pops out.

So I guess...speaking of writing I've been reading David Foster Wallace's Infinite Jest which is amazingly well written and impressively agile in its ability to jump between narrative styles, points-of-views, dialects and ideas. Yesterday I read an  extended riff on telephones and the way people always doodle and only half-pay attention while talking on the phone yet somehow believe that the person on the opposite end of the line is paying them rapt attention, and the consequences therewith that would occur upon the widespread use of videophones. It was impressively conceived and written. And funny. Did I mention the books quite funny?

But...(there had to be a but) it all gets a bit tedious sometimes, the constant long winding witty monologues from desperate stoners or obsessive tennis players, indepth descriptions of quebec separatist movements or other bizarre fixations. Eventually it all starts to collapse a bit under the sheer monotonous weight of the thing; for realz, the book is hardcover size (though softcover) and over a thousand pages. Mostly this is due, for me at least, to a lack of narrative pull to the novel. Most of the reason for continuing to read on is just to see what other inventive situations Wallace thinks up, but the piecemeal, unconnected pick-n-mix style results in a sense that you could just start reading anywhere and not have too different an expereience. It's just more of the same, though it's a pretty good same. I figure at some point in time some over-arching theme might evolve, or some things will happen in succession that will build causally to something else, but right now I'm not seeing it. And it's taken me maybe 2-3 weeks to get 150 pages in and I don't know whether I'll be able to hang on long enough to see it.