Burggie on the Daily Show.
For a more fun take on the Burka ban question (or else see our previous post)
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A French-American perspective on politics, culture, current events, religion, languages, and education
For a more fun take on the Burka ban question (or else see our previous post)
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As Jon Stewart pointed out last week, there's been serious talk in France about banning the "burka" (which is mostly the niqab, i.e. the full body veil worn by some Muslim women) in public places in France."The burqa is not a sign of religion. It is a sign of enslavement. It is a sign of subservience."
"I want to say officially, it will not be welcome on the territory of the French Republic.We cannot accept in our country women imprisoned behind netting, cut off from any social life, deprived of any identity.This is not the idea the French Republic has of a woman's dignity", he said. (BBC news)
Martine Aubry, leader of the Socialist Party, says: "If a law bans the burka,
these women will still have it but will remain at home; they will no longer be
seen." (source)
Dalil Boubakeur, the moderate head of the main Paris mosque, described the burka
as a radical import that is alien to the tradition of Islam. (USA Today)
A number of surveys indicate that a solid chunk of Muslims [in France], possibly the majority, do not go to the mosque regularly or observe Ramadan, the holy month of fasting. (USA Today)
"the only purpose for which power can be rightfully exercised over any member
of a civilized community, against his will, is to prevent harm to other"

What is interesting when you see Obama abroad is the reaction of world leaders who he visits.

What is interesting in this short quote is that it defines very well how American see friendship, which is very different from the way the French see it, even though the term has apparent very similar meaning in both cultures.The United States is a critical friend and ally of France and vice versa. I personally consider Nicholas Sarkozy a friend. I think he feels the same way. And so since I know I can always pick up the phone and talk to him, that it's not necessary for me to spend huge amounts of time other than just getting business done when I'm here. (Fox)

"I would hope that a wise Latina woman with the richness of her experiences would more often than not reach a better conclusion than a white male who hasn't lived that life,".
While both terms are accepted, they seem to carry different connotations for different people. For some, “Hispanic” is too “Euro-centric”, while for others “Latino, Latina” is not gender-neutral enough.Hispanic is an English word that originally referred to people from Spain and eventually expanded to include the populations of its colonies in South and Central America. Latino is a Spanish word—hence the feminine form Latina—that refers to people with roots in Latin America and generally excludes the Iberian Peninsula.
Now of course, as Slate pointed out, what about if you’re from Brazil? You are from South America but not Spanish-speaking…. Ideally, they should be called Luso-Americans and evenhough they may be referred to as “Latinos” they are certainly not “Hispanics”.In the 1970 U.S. census, for example, people were asked whether they were Mexican, Puerto Rican, Cuban, Central or South American, or "other Spanish." (The question caused much confusion because many Americans from the middle or southern regions of the United States identified themselves as "Central or South American.")
The word Hispanic was not used until the 1980 census, after the Office of Management and Budget imposed rules standardizing ethnicity statistics. (The change came after a federal committee on minority education complained about the lack of useful data.)
In 1997, the OMB changed its classification to "Hispanic or Latino," explaining that "Hispanic is commonly used in the eastern portion of the United States, whereas Latino is commonly used in the western portion.".
Today the U.S. Census Bureau makes no distinction between the two terms and defines Hispanics and Latinos as “persons who trace their origin or descent to Mexico, Puerto Rico, Cuba, Spanish speaking Central and South America countries, and other Spanish cultures.".
The previous post on the French state strikes at one of the fundamental differences between French and American society, one that lies at the heart of many of the misunderstandings between the two countries: American individualism vs. French solidarity. Understanding this difference is key to representing each other without resorting to caricatures.1. Individual Freedom: the right to do as I please (in accordance with the laws of the State and the rights of others to do likewise).
2. Domestic Freedom: the right to live where and how I please (in accordance...).
3. Freedom of thought: the right to think/believe as I please (in accordance...)
4. Religious Freedom: the right to believe or not in whatever I choose and to practice these beliefs (in accordance...)
5. Worker's rights: the right to work in whatever profession I choose.
6. Freedom of Association: the right to join my intelligence, work and money with likeminded individuals for a common goal (in accordance...)
7. Political Freedom: the right to elect officials and be elected.
On of my FB friends had this video on his wall :
Why do people vote with their feet and line up behind the US embassy? Why does the US grow faster than France? Why does the US have more millionaires than anywhere else?May seem like small issues but over couple decades to couple hundred years, these small changes will make a huge difference. If we are concerned about preserving civilizations, we should do a better job than France.It's an issue of where we as humans can propagate memes (ideas) in the most efficient manner and at the same time take advantage of these ideas. only in free societies! at some point the french culture may need to be saved from France.
The United States is the country with the highest inequality level and poverty rate across the OECD, Mexico and Turkey excepted. (OECD report)France is one of only five OECD countries where income inequality and poverty have declined over the past 20 years.
There are some things I prefer about the US not because they are intrinsically better but because they suit my personality and my aspiration, and in the same way, there are other things I prefer about France. But comparison requires a level of understanding that most Americans simply can’t have (not speaking French does not help). If you think France is like Communist China or India, think again.
Don't Ask, Don't Tell is more than 15 years old, society has changed and it is time to repeal that law. I understand that Obama made that promise in his campaign. I also understand that the Obama administration has a lot on his hands, and I can even understand that the president wants to change the law through regular channels (by asking Congress to repal it) for the long run - and clearly that's a break from the previous administration that ignored the law. However, in this particular case, it seems a but of urgency to at least stop implementing it until it has been reviewed.
Jon Stewart had the best argument to give those conservatives hung up on this principle that gays cannot be in the military - play the fear factor, it'll work.
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A generally disappointing macroeconomic performance, with low growth and high
unemployment
One reason why French workers are more productive per hour than Americans is that firms employ so few of them. Many make widespread use of rotating interns and temps. France’s jobless rate (8.6%) may now be the same as America’s (8.5%). But, unlike America’s, it never falls much below 8% even in good times.
The Colbertist engineering culture is on the whole much better at devising and managing big planned projects than it is at dealing with bottom-up ideas and uncertain markets. France lacks start-ups, and its small firms have difficulty growing.
In reality, France has two-tier higher education: its world-class grandes écoles cater to a tiny elite, and its broadly second-rate universities fail the masses. Tuition at universities is free. There is no undergraduate selection at entry.
As for the state as regulator, it may have protected the French economy from extreme volatility, but that goes for the upside too.
A more stable economy in a recession also means a less dynamic, less innovative economy in good times. For all its positive elements, the French model has not yet not incorporated enough flexibility, leaving it with the task of ensuring solidarity, but not the dynamic growth needed to sustain it in the long run.
[France's] GDP is expected to shrink by 3% this year, according to the IMF, against 4.1% in Britain, 4.4% in Italy and 5.6% in Germany.
The government, usually reprimanded for profligacy, is set to have a deficit in 2009 (6.2% of GDP) well below those in America (13.6%) and Britain (9.8%).

The French are great savers and most have not taken out unaffordable mortgages or spent heavily on credit. Household debt as a share of GDP is less than half that in Britain or America.- More equality, less disparity
The income gap between the top 10% and the bottom 10% is far smaller than in Britain or America.
[.../...]
Even Peter Mandelson, a former European trade commissioner whom the French regard as a high priest of economic liberalism, recently turned up in Paris to learn more about what he calls industrial activism. “We have something to learn from continental practice,” he said, identifying French long-term strategic planning in such sectors as energy and transport.
- Better cheaper health systemAcross France, 5.2m workers, or 21% of those with jobs, are employed by the public sector. If you count others whose incomes or jobs are not exposed to the economic cycle, 49% of those either in work or retired are only moderately vulnerable to the recession,.....
France’s health system, a mix of private and public provision, manages both to guarantee universal coverage and produce a relatively healthy population for half the cost per person of America’s, and with shorter waiting lists than Britain’s somewhat cheaper version. The French have higher life expectancy than both the British and Americans.
France’s big banks may have lost plenty of money, but they have certainly performed better than their British or American peers, and most are still in profit. One reason is tighter regulation. Take the mortgage market. French banks have generally been far more wary about lending to homebuyers.
In 2007 French mortgage debt represented only 35% of GDP, according to the European Mortgage Federation, less than in Germany (48%) and way off that in the housing-bubble economies of Britain (86%), Ireland (75%) and Spain (62%). French house prices did rise strongly. But the Bank of France argues that this was as much because of demographic growth, higher real disposable income and limited housing supply as speculative buying.
The French government has not yet had to rescue any big French bank from collapse, let alone nationalise one.
[.../...]
Banks are under a legal obligation not to push borrowers into more debt than they can manage, and cases are regularly brought to court. So caution is built into the system.
Time ran an article entitled “How we became the United States of France”. Newsweek published one claiming that “The last model standing is France”. When Christine Lagarde, France’s finance minister, appeared recently on Jon Stewart’s “The Daily Show”, an American comedy programme, she joked that “maybe you are moving in our direction.”

The strengths that have made parts of continental Europe relatively resilient in recession could quickly emerge as weaknesses in a recovery. For there is a price to pay for more security and greater job protection : a slowness to adjust and innovate that means, in the long run, less growth …
The United States and Britain could rebound from recession faster than most of continental Europe.

A Web executive working for TF1, Europe's largest TV network, sends an email to his Member of Parliament opposing the government's "three strikes and you're out" proposal, known as Hadopi. His MP forwards the email to the minister backing Hadopi, who forwards it to TF1.The author of the email, Jérôme Bourreau-Guggenheim, is called into his boss's office and shown an exact copy of his email.Soon he receives a letter saying he is fired for "strong differences with the [company's] strategy" — in a private email sent from a private (gmail) address. French corporations and government are entangled in ways that Americans might find unfamiliar. (Slashdot)
TF1's owner, the construction billionaire Martin Bouygues, is godfather to Mr Sarkozy's youngest son, Louis. Mr. Bouygues suggested to Mr. Sarkozy that he ought to ban advertising on TF1's rival stations in the public sector, which was done in January.Laurent Solly, who was deputy director of Mr. Sarkozy's presidential campaign, is now number two at TF1.Last year, TF1 sacked Patrick Poivre d'Arvor, the station's star presenter for the previous 21 years. Poivre had angered Mr Sarkozy by saying he "acted like a little boy" at a G8 summit. He was replaced by Laurence Ferrari. Mr. Sarkozy reportedly told Mr. Bouygues he wanted to see the young blond on the news.

What would you say if a country decided to create a state agency that would have both judicial and police powers and no accountability?
What would you say if this new state agency could decide to cut off internet connections after 3 warnings without proof or trial simply because your IP address has been pointed out to this high authority by a business group that holds Copyrights and accuses you of illegal downloading?
What about if there was no substantial burden of proof on your accusers to show that you committed the alleged piracy?
What about if you were unable to contest the decision before the connection is cut off and if the contestation did not lead to a suspension of the sanction anyway?
What if there was no appeals process for addressing those piracy accusations anyway?
What if you would not only be cut off from the internet but you’d still have to pay your internet connection to your provider for up to one year?
It sounds like China could be doing this, but, no, it is France, the country of “freedoms and human rights” that is trying to pass this anti-freedom bill called HADOPI (name given to state agency in question). This is of course totally contrary to the way justice normally works in France, where you are supposed to be innocent until proven guilty, and where, as in any democracy, the burden of proof is on the accuser.
But then, if you read the details of this bill, you quickly see that the law, if passed, would open the door to loads of issues that would make it hard to enforce anyway – both technically and legally.
Once more the incompetence of this government blows my mind - they don’t seem to have figure it out all those problems before – not even the technical problems. Someone in this government must know that there are always technical alternatives to circumvent the law.
Finally, there is Europe, and that’s no small problem to Sarkozy.
On Wednesday, the European parliament voted in favor of an amendment to the Telecoms Package (by 404 votes, – 57 ‘no’ and 171 abstentions) which goes as follow:
“Applying the principle that no restriction may be imposed on the fundamental rights and freedoms of end-users, without a “prior ruling by the judicial authorities,” notably in accordance with Article 11 of the Charter of Fundamental Rights of the European Union on freedom of expression and information, save when public security is threatened in which case the ruling may be subsequent.”
The problem for the Sarkozy government is that they intended to use a state agency instead of regular judges to cut off “a thousand connections a day” (which would, by the way, leave only 25.20 seconds for the three members of the HADOPI to make a decision). Regular judicial process, on the other hand would not only delay the mechanism (with already overburden judges as it is), and it would also be more costly. That would be the price for due process – a concept used in England since Magna Carta in 1215.
The Telecom Package with the new amendment must still be approved by the European Council of Ministers and France may block it. If they do, it will be another showdown between Sarkozy and the rest of Europe as it will generate delay for a Telecom law that addresses great economic interests. Not something worth a fight given all the other problems generated by the law.
But then, you never know with Sarkozy, he’s so stubborn and cocky that he can be really idiotic about it. That would not be the first time!

the term "torture" means any act by which severe pain or suffering, whether physical or mental, is intentionally inflicted on a person for such purposes as obtaining from him or a third person information or a confession, punishing him for an act he or a third person has committed or is suspected of having committed, or intimidating or coercing him or a third person, or for any reason based on discrimination of any kind, when such pain or suffering is inflicted by or at the instigation of or with the consent or acquiescence of a public official or other person acting in an official capacity. It does not include pain or suffering arising only from, inherent in or incidental to lawful sanctions. (UN)
Vice President Cheney and the administration have mistaken information gathered via torture for valuable intelligence at least once before. In 2002, the CIA turned a detainee named Ibn Shaykh Al Libi over to Egyptian security forces for questioning. Al Libi provided his interrogators with details of a connection between Saddam Hussein's chemical weapons manufacturing capacity and Al Qaeda. (Huffington Post)
The country overstepped its boundaries after 9/11 only to come back later and say that was a mistake. Countries that can do that proved themselves to be great countries.
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indexes in western Europe and found French women had the lowest average body mass index, at 23.2. The researchers from the London School of Hygiene and Tropical Medicine say overweight people cause excess greenhouse gas emissions because they eat more than thin people and are more likely to travel by car. (CTV)

Unsurprisingly, the research found that men across the EU are less concerned with their weight than women. Only French and Dutch men are, on average, within the ideal weight band.
Last week, Lexington, in the Economist, encapsulated quite well the main problem in U.S. politics in the past decade... What is clear is that the rapid replacement of Bush-hatred with Obama-hatred is not healthy for American politics, particularly given the president’s dual role as leader of his party and head of state. A majority of Republicans (56%) approved of Jimmy Carter’s job performance in late March 1977. A majority of Democrats (55%) approved of Richard Nixon’s job performance at a comparable point in his first term.
But today polarisation is almost instant, thanks in part to the growing role of non-negotiable issues such as abortion in American politics, in part to the rise of a media industry based on outrage, and in part to a cycle of tit-for-tat demonisation. This is not only poisoning American political life. It is making it ever harder to solve problems that require cross-party collaboration such as reforming America’s health-care system or its pensions. Unfortunately, the Glenn Becks of this world are more than just a joke.
There is a religious war going on in our country for the soul of America. It is a cultural war, as critical to the kind of nation we will one day be as was the Cold War itself.

Of course, there is always worse....

This last one is actually mt favorite - since tea-bagging (as a verbal form) actually carries sexual inuendos.
According to this poll by Research 2000 (published by the left-wing US blog Daily Kos) Europe and France are almost universally loved by Americans. (66% having a favorable view)

Their [the French minorities’] frustration stems not from an electorate open-minded enough to vote in a gay mayor of Paris, they say, but from their own political parties, whose lack of transparency is a tool that the old guard uses to retain its grip on power.
(…/…)
Their situation is compounded by the absence of party primaries, with candidates selected instead “on the basis of alliances, networks and intrigue,” according to Mr. Sabeg. That disadvantages minority politicians, who lack the contacts of those who have passed through the elite colleges that forge the French governing class.
Mr Sarkozy jangles nerves with colloquial tics such as dropping the “ne” between pronoun and verb in negative sentences. “J'écoute mais je tiens pas compte,” he said the other day. (I listen but I don't take notice).
He often uses the slangy “ch'ais pas” for “je ne sais pas” and “ch'uis” instead of “je suis”.Like Tony Blair with his pseudo estuary-speak, Mr Sarkozy is a lawyer with a posh education who uses low-class tones as a way of endearing himself. The style grates because of France's attachment to language as a unifying force. Most previous leaders have cultivated a literary side, including military ones such as Charles de Gaulle and Napoleon Bonaparte.
The President stands accused of setting a bad example when he is trying to stem a
decline in literacy. (Times)
[he] has been struck at times by Sarkozy's fluency without a teleprompter. Bush could never have survived if presidential debates in the French format were a part of American campaigning. He could occasionally read a speech well, but on his own he was helpless, and his face always revealed his panic. Sarkozy is never at a loss for words, and he doesn't always "parler peuple" when on his own. He is an actor, who knows how to control his effects and his voice. His body language needs work, as does his superego: his greatest vice, it seems to me, is his inability to conceal contempt without great effort. He likes to let people know how little he thinks of them.As for recognizing that reasonable people may disagree with what he says, yes, but with one caveat: he has a (lawyerly) habit of reducing complex issues to a stark alternative: it's either X or Y, and Y is so clearly inferior that what would you have me do, if not X? I've remarked on this before, and on the often obvious R,S,T, U,V,W, and Z that might be discussed as alternatives. It's a lawyer's trick, but one that he uses well, unlike Bush, who occasionally tried it ("You're either with us or against us" comes to mind), but so crudely that the gambit was pointless.As for the penchant for "parler peuple," times change.
Roosevelt could become a secular saint even with his patrician accents, but I don't think any American politician with that accent could be elected today (think of how Bush Sr. was ridiculed whenever he showed patrician touches). Even Obama does it. Even I do it: I don't speak with the same grammar or diction to the UPS deliveryman or the carpenter as I do to my colleagues. It's instinctual, not calculated. And I am more likely to think of an American-born professor who affects an Oxbridge accent as a hypocrite than I am of a politician who modulates his tone to what he believes his audience expects. And as for literature, Richard Poirier thinks that the distinctive mark of one of our greatest literary stylists, Saul Bellow, was his unparalleled ability to veer from the high-flown to the demotic in mid-sentence. In a sense this pliability is the essence of the American language, and in this respect, perhaps, the epithet "the American" really does attach to Sarkozy. Destarching official French has its virtues.

Only in America do people write their news anchor to complain that the news is too depressing and the anchor (Brian Williams on NC) actually responds by giving people what they want : more positive news!"I'm looking at a stack of printed e-mails," Williams said Friday. "We have more stories than we could humanly cover if we combined all three network newscasts. It's hit an unbelievable nerve."I have often been very impressed with American optimism. A lot of French people may see it as naive, but I find it more helpful than cynicism which is so pointless and makes things just a little bit tougher to go through.
Williams said he's been hearing it repeatedly from people he meets on the street or viewers who send e-mails: The news is so bad every night that it's a burden to watch. Wrote one viewer: "We all know it's bad, but the news makes us feel like crawling under a rock." (NBC)
While the U.S. invented the Net, the Europeans invented the World Wide Web (at the the European Organization for Nuclear Research, or Cern, in Geneva), which just turned 20 last week.
Roger Cohen, a liberal New York Times columnist, worries that “one France is enough”. Kenneth Rogoff, a Harvard economist, says “I take the 2008 US elections as marking a turn toward continental Europe.” Six years after Robert Kagan claimed that “Americans are from Mars and Europeans are from Venus”, there is a growing feeling that the two planets are destined to merge.
Because their editorial is (really) fair and balance they disproved that right-wing argument that you hear these days.
I would ad that whenever right-wing conservatices use this argument (that the US is becoming dangerously European), ask they what they mean exactly, ask for specific examples , and ask what they know about Europe, and you'll soon find out about their abyssimal cluelessness of European politics and economics.There is nothing particularly “European” or “socialist” about Mr Obama’s stimulus package. Countries the world over are spending public money in a bid to boost demand and shore up the banks. Indeed, some of the most stubborn resistance to deficit financing has come from Europe, particularly from
Germany and the EU finance ministers. Messrs Gingrich and Romney might note that the man who set this ball rolling was not Mr Obama but Mr Bush, the most
un-European politician imaginable.What about Mr Obama’s plans to raise taxes and redirect policy? There are plenty of plausible criticisms of these (such as the fact that his numbers do not add up), but the idea that they entail “full-scale Europeanisation”, as Mark Steyn, a columnist, argues, is one of the least persuasive. Mr Obama’s budget will return the top tax rates to 36% and 39.6%—back to where they were during Bill Clinton’s administration.
The fury about “European socialism” is not just wrong as a matter of fact. It is foolish as a matter of policy. Europe has plenty of things to teach the United States (particularly about running a welfare state), just as America has plenty to teach Europe (particularly about igniting entrepreneurialism). Indeed, a more telling criticism of the Obama administration is not that it is borrowing too much from Europe but that it is learning too little.(.../...)Europeans and Americans are never likely to coalesce: their cultural traditions are too strong and their solutions to the problem of regulating capitalism too distinctive. But they nevertheless have plenty in common—ageing populations, exploding entitlements and above all, at the moment, a wrenching recession. Europeans have thankfully toned down the America-bashing that was popular a few years ago. Americans might consider returning the compliment.



Last week French news was marked by the success of France's Agricultural Fair. To put it a nutshell, it is as if the biggest American state fair were hosted in Manhattan. This year it reached an all-time record with 670, 000 visitors over 9 day.
I was jogging on the treadmill this morning (something about preferring not to run on ice and slush that pushes me indoors in the winter) listening to a podcast of one of my favorite shows (On Point with Tom Ashbrook). The topic was television and new media. I learned that Americans on average watch 151 hrs of television per month. Not just on the television, of course, but through a variety of media: podcast, Hulu, TiVo, etc. I'm a fan of Hulu myself. We watch Battlestar Galactica, SNL and The Office online. Rarely do I watch anything anymore on the actual television screen, mostly just sports and political broadcasts.
mentally changing. Newspapers are closing their doors left and right in the US. I was on the receiving end of some criticism recently for my viewing habits, something about ruining the good ol' American newspaper. I read all my news online. I read my hometown paper online rather than buying the print version. That paper is now in bankruptcy court. I readily accept my role in the paper's demise. And to be honest, I have no regrets. There is an evolution going on in media right now. While the content remains largely unchanged, the delivery of that content is the subject of much speculation and negotiation. Print newspapers are going to die. It's as simple as that. Certain family members disagree with that prognosis, but mostly because it's an uncomfortable reality for them. Large regional papers cannot survive when so much of what they print is redundant by the time of its printing (which is, paradoxically, why smaller local papers may survice, because they provide local coverage that local readers can't find anywhere else). Television provides immediate coverage of events and issues. Magazines survive by providing a narrative to these events and behind-the-scenes access to the players. Newspapers trying to find some middle-ground are left with nothing. As the generation of print subscribers dies off, fewer and fewer people are willing to pay for a physical newspaper. And as connectivity improves and news content moves to centralized sites of distribution on the internet, print papers will cease to exist.
Consumers may already be aware of the environmental impact of producing goods in terms of energy or pollution, but they might be surprised to learn how much water is needed to create some daily goods.
A cup of coffee, for example, needs a great deal more water than that poured into the pot. According to a new book on the subject, 1,120 litres of water go into producing a single litre of the beverage, once growing the beans, packaging and so on are measured. Only 120 litres go into making the same amount of tea. As many as four litres of water are used to make a litre of the bottled stuff. Household items are even thirstier. Thousands of litres are needed to make shoes, hamburgers and microchips.

Don't you love it?

A carnival float depicting a flying U.S. President Obama with Europe being dragged along is seen during the traditional carnival parade in Duesseldorf, Germany, on Monday, Feb. 23, 2009. Rose-Monday-Parades in the carnival strongholds of Duesseldorf, Mainz and Cologne are watched by hundreds of thousands of revelers and mark the highlights of Germany's carnival season. (AP Photo/Frank Augstein)
In case you are also getting fed up with the anti-government-intervention/anti-regulation rhetoric of the conservative free-marketer Republicans who have nothing better to offer as a remedy for the economic crisis than more of the same (tax cuts, and tax cuts and even… more tax cuts! - where does it end, no one knows...), here are a few facts and dates that show the correlation between deregulation and the current financial meltdown to throw at them :
- 1982 : The Garn-St. Germain Depository Institutions Act of 1982 : deregulated the Savings and Loan industry and allowed adjustable rate mortgages.
-1999 : the Gramm-Leach-Bliley Act eliminated the Glass-Steagall Act of 1933 which controlled speculation and separated investment and commercial banking activities, opening up competition among banks, securities companies and insurance companies (law was passed to legalize mergers like Citibank and Travelers Group, an insurance company, and in 1998)
Other restrictions which prohibited bank holding companies from owning non-financial institutions were also repealed by the same law.
-2000 : The 2000 Commodity Futures Modernization Act, “regulatory relief” provided deregulation for products offered by banking institutions. The law was partly written by Texas Sen. Phil Gramm, the free-marketer Republican chairman of the Senate Banking Committee AND lobbyists for Enron (the bill also exempted from regulation energy trading on electronic platforms - see the Enron scandal)
- 2004 : On April 28 the SEC (Securities and Exchange Commission) ruled that investment banks got rid of the Net Capital Rule which allowed "voluntary" inspection of the SEC and also meant that banks could essentially determine their own net capital. (In late September 2008, the commission decided to end the 2004 program of voluntary regulation.).
In fact, corporate self-regulation was the philosophical cornerstone of the Bush economic (and environmental) policy. But following the meltdown, even Christopher Cox, the former U.S. Securities Exchange Commission Chairman and longtime proponent of deregulation admitted lack of oversight helped cause the financial crisis.
"The last six months have made it abundantly clear that voluntary regulation does not work," Cox said in a statement, adding that the program had been shut down and authority to regulate investment banks had been transferred to the Federal Reserve. (NYTimes)
Don’t get me wrong: I’m all for capitalism (since there is no alternative anyway) and freedom but not free-market anarchism. Regulated capitalism is and has always been the right way to go and it suits our philosophy on this blog that true solutions come with moderation and that excess is often bad.
I’m always wary of incongruous and easy historical parallels but nonetheless I find it somewhat ironic than the Great Depression also followed a period of more laissez-faire economic policies in the 1920s (doing away with the regulations of the Wilsonian progressive era) during which the top tax rate was lowered to 25 percent and the stock market began its spectacular rise.
It is basically the same recipe and only the ingredients have changed a bit: too much borrowing, too much speculation with other people's money, and too little regulation.
In 2006 we wrote a post on the now-famous derogatory term McMansions and how the size of American homes had more then "doubled since 1950 with a median single-family home at 2,349 square feet (218 sq meters) against 1,570 square feet in 1980."The trend is to scale back. According to the Census Bureau, the median size of home starts dropped to 2,114 square feet in the fourth quarter of 2008, down more than 100 square feet from the first quarter of the year. And 100 square feet is a significant slice of space.
To a surprising degree, the causes of this crash are geographic in nature, and they point out a whole system of economic organization and growth that has reached its limit. Positioning the economy to grow strongly in the coming decades will require not just fiscal stimulus or industrial reform; it will require a new kind of geography as well, a new spatial fix for the next chapter of American economic history.Mr Florida also sort of debunks the myth of ownership as part of the "American Dream":
He even sees the end of suburbanization and low-density sprawl and because "the economy is driven by key urban areas; a different geography is required".
If anything, our government policies should encourage renting, not buying. Homeownership occupies a central place in the American Dream primarily because decades of policy have put it there.I don't necessarily agree with him on this. I think it has been part of the American Dream since the Letters of an American Farmer and Jefferson's dream of an ownership society. However, faced with this crisis, the Americans may have to reshape their Dream indeed and be a bit more creative and flexible with regard to their "pursuit of happinness" .
Former trader and financial executive now turned “journalist” Rick Santelli’s hysterical rant about the mortgage bailout plan on CNBC last week struck a raw nerve at the White House and Press Secretary Robert Gibbs spent several minutes criticizing the rant at his Friday (Feb. 20) press conference.
It got me unusually mad too.
Unfortunately such outbursts have become rather common on MSNBC (think of Joe Scarborough, Chris Matthews or even Keith Olbermann) but Santelli’s resentment is so typical of what we have heard from other divisive right-wing disconnected populists over the last decade (the Rugh Limbaughs and other Sean Hannitys) that it gets really REALLY old and tiring – especially in hard times when other people should really be angry.
Those free-market ideologues should have the decency of keeping a low profile since it is precisely their extreme elitists’ ideologies of deregulation and Wall Street values of making an easy buck that got us into this mess.
It is not the government that’s promoting bad behavior, Mr Santelli, it is THE BORKERS, THE BANKS, WALL SREET and DEREGULATION and GREEDY POPULISTS like you that have been promoting bad behavior.
But Mr Santelli lives and breathes through Wall Street and sees nothing else. His world is a world made only of losers and winners (in which he is a winner), and of course if you happen to be a “loser”, it’s because you deserve it. If you are behind in your mortgage, you must be a loser so why “Subsidize the losers’ mortgages”?
Santelli should leave the trading floor every once in a while and see what the world is like out there.
No, not everyone behind on their mortgage knowingly took out a loan they were incapable of making payments on. In this day and age, job losses happen (in addition to the usual divorce, sudden illness, and so forth).
For Santelli to turn to a room full of brokers and traders making (not long ago anyway) six figures and say “This is America” is very telling of his disconnect from the rest of us.
As he put it later when he was grilled by Chris Matthews, there is indeed a “philosophical” issue here, and his view is indeed typical of extreme right-wing ideologues of his kind who think that just because some people might (emphasis on “some” and “might”) take advantage of the system (any system) then there should be no system – no healthcare, no welfare, no bailout, no nothing! Those who can’t make it may as well deserve death.
This economic and financial crisis is having such a great impact on our society that many of the free-market ideologues are bound to be either in denial, or become liars, schizophrenic or victims of post-traumatic stress - it is after all Hank Paulson, who under G. W Bush (both big fans of deregulation) first nationalized the cost of bad loans made by financial institutions.
And for the Republicans to now complain about government spending and get away with it is something else - as you can see on this chart, the debt has tripled under Reagan, it shrank under Clinton, and went up again with Bush now reaching about 8.7 times its 1980 level.
I suppose it is ok when the spending goes to phony star-war programs or unnecessary wars but not so much to help lower-middle class Americans who are losing their homes!
The good thing is that Santelli is so far out there that his call for a “tea party” from the trading floor of the Chicago Mercantile Exchange will be the laugh of the nation.
The moral of the story ? It is that there is nothing moral about it. Populism and anger still pay off in America :
Santelli, who doesn't have an agent, said he already has heard from several publishers, a prospect that interests him. And he previously has enjoyed doing talk radio. That said, he noted, "I'm pretty happy with what I do."
If nothing else, his value to CNBC has increased demonstrably with the exposure his commentary on the housing plan has brought to the cable network owned by General Electric's NBC Universal. His video has set a record at CNBC.com, scoring many times as many page views as the site's previous leader, a 2007 rant by Jim Cramer.
"I've been associated with them 14 years, 10 years on the payroll, and you never see me much in commercials and whatnot," Santelli said. "Boy, has that changed in the last 36 hours."
On Friday the market fell to a 6-year low. It did not seem to like the idea of nationalizing the banks. In fact, it had fallen even deeper earlier (down to an 11-year low) when the head of the Senate Banking Committee said that some banks might have to be nationalized for a while. (NPR)
I can understand that Wall Street loathes the mere idea of nationalization , but what about the rest of America?
President Obama on Friday linked the economic concept of "nationalization" to "culture" when he compared the situation in the U.S. to that of Sweden in the 90s (a country that "took over the banks, nationalized them, got rid of the bad assets, resold the banks and, a couple years later, they were going again") :
Obviously, Sweden has a different set of cultures in terms of how the government relates to markets and America's different. And we want to retain a strong sense of that private capital fulfilling the core -- core investment needs of this country. (ABC)
I am not an economist but when many of them, including Nobel prize winner Paul Krugman, say nationalization is the only way out of the current financial crisis, given that the nation's largest banks are now carrying a crushing half a trillion dollars in bad debt (ABC), I tend to listen.
And the argument that our culture won’t stand for nationalization — well, our culture isn’t too friendly towards bank bailouts of any kind. Yet those bailouts are necessary; and even in America they may be more palatable if taxpayers at least get to throw the bums out. Oh, and not a week goes by without the FDIC taking several smaller banks into receivership. Nationalization is actually as American as apple pie. (Paul Krugman, NYTimes)Personally, I like the pragmatic approach of the British. They may still fail, but it seems to me that they had the merit of being flexible and did not let free-market ideology blind them (they started nationalizing some of their banks as early as last October simply because they had to). I think the U.S. has suffered enough from an all-ideological approach.
Other Europeans, such as the French have always had a very complicated love-hate relationship with nationalization, and the French have been divided over this question along party lines, although it is not a concept as frightening to the French people as to a lot of Americans.
Interestingly the current conservative government in France (whose platform included precisely the privatization of the remains of the public sector) has agreed that nationalization may be necessary - just for a while anyway.
Nationalization is "not a dirty word", French Finance Minister Christine Lagarde told Reuters on the sidelines of an event at Columbia University in New York.
"It's sometimes a tool and a way to restore a situation for a temporary period of time -- and then there's privatization again." (Reuters)
These are two stills taken from the trailer of Transformers 2 - a $300 budget Science Fiction/action movie. Of course, anyone who's been to Paris will be in shock



In the New Yorker this week :
Matthiew Yglesias made an interesting point in his comments on "the right-wing’s new habit of issuing constant dire warnings that we’re about to plunge into the sort of [European] social democratic" .After the Senate passed the stimulus, which Sean Hannity, on Fox News, denounced as “the European Socialist Act of 2009,” Mitch McConnell, the Senate Republican leader, pronounced it “a dramatic move in the direction of indeed turning America into Western Europe.
In my experience of Americans visiting France, it is true that most of them come from the upper-classes and in cat, ironically, many Republicans who criticize Europe go there for their holidays... but it is not so true of Americans living in Europe for a good amount of time as they learn to appreciate better health care and public transports for instance. Interestingly, many missionaries sent to Europe by very conservative churches tend to become much less conservative over time, as they live outside America and they sometimes find it hard to connect with their communities (politically) as they return home.I suspect that only a distinct minority of Americans have been to Europe. What’s more, the minority of Americans who’ve been to Europe are disproportionately drawn from the upper-echelons of the U.S. income distribution. And rich people have it pretty good here in the land of the free. By contrast, take a look at a “bad” neighborhood in Helsinki and compare it to a “transitional” neighborhood in DC—to say nothing of a genuinely down-and-out American ghetto—and it’s almost laughable.
But the beneficiaries of something like that aren’t going to Europe. Among what you might call America’s “traveling class,” the European alternative is going to look good to city-loving cosmopolitans (i.e., me and Rick Hertzberg) but pretty bad to your typical businessman.
In other words, it just replicates the cultural divide that already exists among the American elite. The people who would be the main beneficiaries of a more social democratic policy dynamic—a couple of non-college parents who could really use some free child care and and guaranteed health care and pension, for example—are relatively unlikely to have personal experience that cuts one way or the other regards to how terrifying Europe is.

I know people may be getting tired of hearing dramatic reports about climate change, especially global warming which seems a bit out far from our daily lives in the midst of one the coldest winters of the last few years in the Western atmosphere.
"We are basically looking now at a future climate that's beyond anything we've considered seriously in climate model simulations," Christopher Field, founding director of the Carnegie Institution's Department of Global Ecology at Stanford University, said at the annual meeting of the American Association for the Advancement of Science.
Field, a member of the United Nations' Intergovernmental Panel on Climate Change, said emissions from burning fossil fuels since 2000 have largely outpaced the estimates used in the U.N. panel's 2007 reports. The higher emissions are largely the result of the increased burning of coal in developing countries, he said.
(.../...)
"It's a vicious cycle of feedback where warming causes the release of carbon from permafrost, which causes more warming, which causes more release from permafrost," Field said.

In case you’re not familiar with those islands, they are all French overseas departments and have the same political status as metropolitan departments and are integral parts of France, and the European Union.Racial sentiments were inflamed after a one-hour documentary, "The last owners of Martinique," was shown on TV last week. The program focused on how the white minority group has dominated the economy.One white business owner was quoted as saying historians should look at "the positive aspects of slavery" and that a mixed-race family lacks "harmony." Officials in France have opened an investigation against the businessman, Alain Huygues-Despointes.
Martinique's prefect, or political leader, Ange Mancini, had been renting from Huygues-Despointes but announced he has terminated his lease and found somewhere else to live. Mancini is white.
French riot police landed in the Caribbean territory of Martinique on Thursday to keep the peace.[…/…]Martinique's police chief, Col. Francois-Xavier Bourges, said 10 people have been detained for looting and stealing gasoline. Garbage piled up in the streets, and supermarkets were closed for the eighth straight day.
The dominance of English in the world and in Europe is no news, and the current economic crisis and even the probable rise of nationalism won't change that.The latest Anglo-surge comes from the European press, with a dramatic increase in the number of heavyweight publications launching English-language websites, offering translated news stories and opinion pieces [.../...] including big, established national journals and newspapers, whose bosses want to be more visible in English.
Among Europeans born before the second world war, English, French and German are almost equally common. But according to a Eurobarometer survey, 15-to-24-year-olds are five times more likely to speak English as a foreign language than either German or French. Add native speakers to those who have learnt it, and some 60% of young Europeeans speak English “well or very well”.Let's face it, what it comes down is 'practicality' :
Speakers at EU meetings automatically choose the language that excludes the fewest people in the room. They do not use the language best known, on average, by those present (which in some meetings will still be French). Instead, they seek the language that is understood, at least minimally, by all. Thanks to EU enlargement to the east (and poor language skills among British and Irish visitors to Brussels), this is almost always English.It makes sense, doesn't it? So, are we in for more Anglo-Saxon domination? That has been the fear of the French since Napoleon which is why language has taken on such a nationalistic value in France.
That means Britons find it ever harder to justify learning other languages. Even when they do, they have to speak other languages extremely well to avoid inflicting halting French, say, on rooms of fluent English-speakers.One might think that Americans and Britons are at least in a favored position when it comes to speaking English. But they may actually need to un-learn their native English and learn World English (or even Globish) which is the new lingua franca of the world.
In Brussels, native English-speakers are notoriously hard for colleagues to understand: they talk too fast, or use obscure idioms.This is something that all teachers of English have been aware of for years and it is a hot debate in the world of Academia? What variety of English should be taught?
Mr van Parijs [a economic, social and political sciences academic] has a prediction: Europeans will become bilingual, except for Anglophones, who are becoming monolingual. In other words, just when the British should be happy, some nasty storm clouds are gathering. You could say it sounds rather like a day at the British seaside.

This is the most positive news I have seen this week : a man who was a racist for years, who took part in multiple beatings of blacks in the 60s, joined the KKK and didn't even want his parents buried where blacks may be buried apologized to the man he attacked (John Lewis now a Congressman) at a South Carolina bus station during a protest in 1961.
Apparently, the catalyst was Obama's election. It seems almost too nice to be true. Can someone make such a dramatic turnaround in his life? Well, apparently it was a long process, the man said "he had felt an urge to voice his remorse for years" and according to Brian Williams (see here below), it was church and faith that helped him change.
Will George W Bush by remembered as the president who closed the Age of laissez-faire philosophy when he effectively nationalized the banking and mortgage industries? Oh the irony would just kill me.
What is a certain is that idea of Big Government is in the air, and even the “S” word is not necessarily (just) an insult any more that you might be a traitor to the Republic.
This week, there was yet another daring article by Newsweek called provokingly “We are all socialists now”, comparing recent economic policies in the US to French socialism. Of course, we’re not there yet but beyond their easy association of France to berets and croissants, their analysis is interesting both in the short and long run. No doubt that, as we have seen this week, the classic laissez-faire ideology won’t go down without a fight. I am just impressed that the "S" word can now be uttered without the fear that you must be put to jail.
The U.S. government has already—under a conservative Republican administration—effectively nationalized the banking and mortgage industries. That seems a stronger sign of socialism than $50 million for art. Whether we want to admit it or not—and many, especially Congressman Pence and Hannity, do not—the America of 2009 is moving toward a modern European state.
(…/…)
The story, as always, is complicated. Polls show that Americans don't trust government and still don't want big government. They do, however, want what government delivers, like health care and national defense and, now, protections from banking and housing failure. During the roughly three decades since Reagan made big government the enemy and "liberal" an epithet, government did not shrink. It grew. But the economy grew just as fast, so government as a percentage of GDP remained about the same. Much of that economic growth was real, but for the past five years or so, it has borne a suspicious resemblance to Bernie Madoff's stock fund. Americans have been living high on borrowed money (the savings rate dropped from 7.6 percent in 1992 to less than zero in 2005) while financiers built castles in the air.
Now comes the reckoning. The answer may indeed be more government. In the short run, since neither consumers nor business is likely to do it, the government will have to stimulate the economy. And in the long run, an aging population and global warming and higher energy costs will demand more government taxing and spending. The catch is that more government intrusion in the economy will almost surely limit growth (as it has in Europe, where a big welfare state has caused chronic high unemployment). Growth has always been America's birthright and saving grace.
The Obama administration is caught in a paradox. It must borrow and spend to fix a crisis created by too much borrowing and spending. Having pumped the economy up with a stimulus, the president will have to cut the growth of entitlement spending by holding down health care and retirement costs and still invest in ways that will produce long-term growth. Obama talks of the need for smart government. To get the balance between America and France right, the new president will need all the smarts he can summon.
NOTE : It is also ironic that laissez-faire and Socialism both have French origins.