1. Though the principles of the banking trade may appear somewhat abstruse, the practice is capable of being reduced to strict rules. To depart upon any occasion from those rules, in consequence of some flattering speculation of extraordinary gain, is almost always extremely dangerous and frequently fatal to the banking company which attempts it.
    — 

    Capitalist God Adam Smith, quoted from his our economic bible, Wealth of Nations.

    From Barry Ritholtz’ Big Picture blog.

    In case you want to see a direct source

     


  2. YEAH, OBAMA GOT CAUGHT UP

    obama financial reform mortgage derivative clinton baye kambui blog tumblr mental unrest

    I declined to write this post about President Obama for about two years, but I’ve never been the type to bite my tongue…

    The details surrounding that famous 2008 hush-hush meeting between then-candidate Obama and challenger Hillary Clinton are still sketchy, but Obama’s actions up to now, including his decision to launch a criminal investigation of the most sophisticated financial hit job in modern history with only 55 investigators, which is a fraction of the number of investigators who sniffed around the 80’s savings & loan scams, makes my job of pretending I was a mosquito by the window of that Clinton-Obama summit a hell of a lot easier.

    My guess is that the banks were solidly behind Hillary Clinton’s run for President just as they were behind hubby Bill Clinton when he sat in the Big Chair, but realized that Senator Obama had a tremendous amount of popular support, making the Hillary bet foolish. Two other problems lingered since they did not know if Obama was down for the banksta cause like the Clintons were, but did know that the mortgage-derivatives scam game was about to end ugly.

    Hillary likely told future 44, “I’m out of this race and you will be the President. BUT, you will stuff MY team in your administration to look out for my banking peeps. “Change” was a nice campaign slogan, but blow it out you-know-where. Here’s how policy is going to be run for the next four years…”

    It’s well-documented that Obama’s economic advisory personnel changed virtually overnight after that meeting. Even after the massive turnover in economic advisers since Obama took the oath of office, Tim Geithner, one of the closest friends of the Clintons, is still the shot-calling Treasury Secretary, and appears to have a license to disobey orders from the President concerning the handling of banks.

    This is why I think Obama is caught up. “They” got to him. Perhaps even threatened him. Or perhaps Obama, who I believe is one of the most cerebral Presidents in American history, views this journey as an eight-round fight and knew he wasn’t going to throw many punches until the fifth…

    song currently stuck in my head: “three bags full” – herbie hancock

     


  3. I’m dubious of the attitude that says there is no salvation outside GMOs.
    — 

    From Herve Guyomard, scientific director for agriculture at France’s National Institute for Agronomical Research (INRA). Quote captured by AlertNet article “EU Farmers Lose Out As Consumers Oppose GMOs

     


  4. We have a government that says it’s okay to eat Twinkies and Cocoa Puffs and Mountain Dew, but it’s illegal to drink raw milk and eat compost-grown tomatoes and Aunt Matilda’s pickles.
    — From sustainable farmer Joel Salatin. Quote captured by Amy Eddings on WNYC Culture blog.
     

  5. My opinion about how we should handle Wall Street has never been a secret: we need a thorough criminal investigation of the systemic lending, securitization and trading practices of financial institutions and the correlation of these practices to the 2008 market crash.

    Until now, the Obama administration appeared unwilling to go after the Bankstas. This is why the administration’s appointment of New York Attorney General Eric Schneiderman – a vocal proponent for the kind of investigation I’m talking about – to lead the administration’s newly-formed mortgage crisis unit confuses me. Either the Administration is finally summoning the ghost of Ferdinand Pecora, whose picture I added above for good luck, or the administration finally got to Schneiderman. The latter would suck. Hard. Economist Simon Johnson appears hopeful in his Baseline Scenario post yesterday. We will see…

    song currently stuck in my head: “mystic brew”- ronnie foster

     


  6. TEPCO Pictures Inside of Fukushima No. 1 Plant

    …is that no one has yet located the nuclear fuel, which opens the possibility that the fuel has leaked out spread more widely than anticipated. Need I say more…?

    You can read between the lines in this Japan Times article…

    song currently stuck in my head: “need i” - lee morgan