Mr. Fix-It doesn't have a credible plan to fix the economy's biggest problem
What's black and white and red all over? I have no idea. But here's what I do know. Mitt Romney's housing plan is an even worse joke.
It's hard to imagine a bigger vulnerability for Obama than housing. The administration's policy has been too little, too late for too long. To borrow a phrase from Ben Bernanke, it's been a case of self-induced paralysis due to a pair of fears. For one, they were worried about forcing banks to recognize even more losses on mortgages back when the financial system's solvency was far from a sure thing. For another, they were worried about a Rick Santelli-led populist backlash against bailing out "loser" homeowners.
So they went small. Refinancings have barely been a rumor, even after Treasury expanded the program. That's still more than can be said for writedowns. Federal Housing Finance Agency (FHFA) chief Ed DeMarco has blocked those -- and Obama has inexplicably refused to recess appoint his replacement. The result has been a tragedy, both for families and for taxpayers. As the New York Fed pointed out, we would save $134 million for every $1 billion of refinancings thanks to lower default rates. It turns out keeping people in their homes is good for everybody.
In other words, Romney had a big opening to go big on housing. Maybe he would come out for a massive refinancing program, like his top adviser Glenn Hubbard wants. Or maybe he would come out for privatizing the government-sponsored entities (GSEs) Fannie Mae and Freddie Mac.Something. Well, the Romney housing plan certainly is something -- something "laughably vacuous" that is, as Matt Yglesias of Slate justifiably lampoons it.
The Romney housing plan comes in two parts: embarrassing, and more embarrassing. Consider this section about fixing the financial system and the GSEs -- and all, as Brad DeLong points out, in 85 words or less!
End "Too-Big-To-Fail" And Reform Fannie Mae And Freddie Mac. The Romney-Ryan plan will completely end "too-big-to-fail" by reforming the GSEs. The four years since taxpayers took over Fannie Mae and Freddie Mac, spending $140 billion in the process, is too long to wait for reform. Rather than just talk about reform, a Romney-Ryan Administration will protect taxpayers from additional risk in the future by reforming Fannie Mae and Freddie Mac and provide a long-term, sustainable solution for the future of housing finance reform in our country.
There are so many problems crammed into so few words. For starters, too-big-to-fail is not about the GSEs; too-big-too-fail is about Wall Street. In other words, it's about the heads-we-win; tails-taxpayers-lose calculus behind big bank bets. Taking the GSEs off government life support does nothing to fix this. Then, of course, there's the question of what reforming the GSEs means. Romney says he won't "just talk" about it -- which makes sense, since he doesn't talk about it here either. It's anybody's guess what Romney wants to do with Fannie Mae and Freddie Mac.
But there are ways to actually end too-big-to-fail. One way is to tackle the "too big" half of the phrase; the other is to take on the "fail" part. In other words, you can either break up big banks until they are small enough to fail, or create a system where big banks can safely fail. Dodd-Frank tries the latter. Its logic is that even a relatively small bank like Lehman Brothers -- or a hedge fund like Long-Term Capital Management -- can topple the financial system if its counterparties are big and numerous enough. Too-connected-to-fail can be just as much a problem as too-big-to-fail. Now, there's still a political economy argument for breaking up the big banks -- so they aren't quite as powerful -- but it seems clear that we need some sort of resolution authority. Except to Romney. Perhaps. He thinks Dodd-Frank is too complicated -- maybe it is! -- and he thinks its Byzantine structure is holding back the recovery. He wants to repeal and replace it with ... something.
Sensible, Not Overly Complex, Financial Regulation That Gets Credit Flowing Again. By replacing the Dodd-Frank Act with sensible regulation (instead of the 9,000+ pages, and counting, of new rules for financial institutions), a Romney-Ryan Administration will usher in a new era of responsible lending. Sensible regulation will allow banks to approve loans for families with good credit rather than rejecting their mortgage applications. A return to more normal lending standards would produce an estimated 640,000 more home sales and 320,000 jobs next year.
Did you catch that Romney wants to do something sensible? What does that mean? Who knows! Something sensible, probably. What about Romney's claim that nixing Dodd-Frank would add 320,000 jobs in 2013 -- is that a sensible? Not so much. Would you believe it if I told you that number comes from the National Association of Realtors (NAR)? Yup, these guys.
That was from Feburary 2008, two years after housing prices peaked. That uncomfortable reality wasn't lost on NAR when they cut this ad two months later, telling people not to worry about falling prices -- increased affordability! -- because housing tends to double every decade.
I could go on. The point isn't that a self-interested group was epically wrong about a once-in-a-generation housing bust. That's true of plenty of others. The point is that Romney is relying on a self-interested group that has been epically wrong to make the case for his -- albeit, nonexistent -- housing plan. It'd be like listening to this guy about, well, anything.
It didn't have to be this way. Conservative wonks have serious ideas about what to do with housing. Mitt Romney even employs some of them as his top advisers. This ambiguity is even more baffling when you consider our jobs slump is the result of our investment slump, which is itself the result of our residential investment slump. Fix housing and you might fix the economy. Now, housing might already be fixing itself, but helping it out would be great policy -- but equally terrible politics.
Obama isn't the only one afraid of anti-bailout rage. Romney is too. Maybe even more so. After all, Romney is counting on the Santellis of the world to back him. And that's why Mr. Fix-It is running on a housing plan short of an actual plan -- a plan that actually fixes things wouldn't pass the Tea Party's ideological sniff test. It would mean helping out homeowners who might not "deserve" help. As Paul Krugman pointed out, Romney is boxed in. He feels like he has to kowtow to the base, but the base does not want to kowtow to the reality of what it will take to get the economy moving again.
Romney is running as an economic expert, but his economic plans either do not add up or do not exist. That leaves him with little more than magical thinking. The joke's on us.
The revolutionary ideals of Black Panther’s profound and complex villain have been twisted into a desire for hegemony.
The following article contains major spoilers.
Black Panther is a love letter to people of African descent all over the world. Its actors, its costume design, its music, and countless other facets of the film are drawn from all over the continent and its diaspora, in a science-fiction celebration of the imaginary country of Wakanda, a high-tech utopia that is a fictive manifestation of African potential unfettered by slavery and colonialism.
But it is first and foremost an African American love letter, and as such it is consumed with The Void, the psychic and cultural wound caused by the Trans-Atlantic slave trade, the loss of life, culture, language, and history that could never be restored. It is the attempt to penetrate The Void that brought us Alex Haley’s Roots, that draws thousands of African Americans across the ocean to visit West Africa every year, that left me crumpled on the rocks outside the Door of No Return at Gorée Island’s slave house as I stared out over a horizon that my ancestors might have traversed once and forever. Because all they have was lost to The Void, I can never know who they were, and neither can anyone else.
Is a lack of meaning really worse than a lack of freedom?
A man named François is a professor in Paris. He is a scholar of Joris-Karl Huysmans, an obscure 19th-century author who, in his later years, converted to Catholicism in an epiphany. François is the hero, or rather anti-hero, of French novelist Michel Houellebecq’s Submission. François is listless—even his attitude toward sex is uninspired, as if it’s an activity like any other, perhaps like playing tennis on a Sunday, but probably with less excitement. There is too much freedom and too many choices, and sometimes he’d rather just die.
The world around him, though, is changing. It is 2022. After a charismatic Islamist wins the second round of the French presidential elections against the right-wing Marine Le Pen (after gaining the support of the Socialists), a Muslim professor, himself a convert, attempts to persuade François to make the declaration of faith. “It’s submission,” the professor tells him. “The shocking and simple idea, which had never been so forcefully expressed, that the summit of human happiness resides in the most absolute submission.”
In Cyprus, Estonia, the United Arab Emirates, and elsewhere, passports can now be bought and sold.
“If you believe you are a citizen of the world, you are a citizen of nowhere. You don’t understand what citizenship means,” the British prime minister, Theresa May, declared in October 2016. Not long after, at his first post-election rally, Donald Trump asserted, “There is no global anthem. No global currency. No certificate of global citizenship. We pledge allegiance to one flag and that flag is the American flag.” And in Hungary, Prime Minister Viktor Orbán has increased his national-conservative party’s popularity with statements like “all the terrorists are basically migrants” and “the best migrant is the migrant who does not come.”
Citizenship and its varying legal definition has become one of the key battlegrounds of the 21st century, as nations attempt to stake out their power in a G-Zero, globalized world, one increasingly defined by transnational, borderless trade and liquid, virtual finance. In a climate of pervasive nationalism, jingoism, xenophobia, and ever-building resentment toward those who move, it’s tempting to think that doing so would become more difficult. But alongside the rise of populist, identitarian movements across the globe, identity itself is being virtualized, too. It no longer needs to be tied to place or nation to function in the global marketplace.
On Tuesday, Alex Van Der Zwaan, a lawyer who helped produce a report at Manafort’s behest, pleaded guilty to lying to the FBI.
Alex Van Der Zwaan, a former attorney at an international law firm, pleaded guilty to lying to federal agents about the last time he communicated with Paul Manafort’s longtime business partner, Rick Gates. Van Der Zwaan is the latest figure swept up in Robert Mueller’s expansive probe of Russian interference in the 2016 presidential election to admit to the charges against him.
Mueller’s interest in Van Der Zwaan, who helped produce a report about a contentious trial in Ukraine at Manafort’s behest, may be a signal that the special counsel is ramping up pressure on Manafort—whose connections to Russia and high-level role on the Trump campaign could prove invaluable to Mueller’s probe.
Gates is reportedly nearing his own plea deal with Mueller, according to the Los Angeles Times, but Manafort has continued to fight the charges he faces. His uphill battle to prove his innocence, however, will get steeper with Van Der Zwaan’s guilty plea.
Three ways of thinking (scientifically) about the East Coast’s ridiculous heat
Many things are happening all around the world, but on the East Coast of the United States, it’s currently very warm. Very warm. Half-the-continent-is-asking-whether-you-can-wear-shorts-to-work-in-February warm.
Here’s some context. On Tuesday, temperatures sat well at or above 70 degrees Fahrenheit from Massachusetts to Miami. Boston broke its record for the warmest night ever recorded in the month of February, at a balmy 50 degrees Fahrenheit. More than 1,100 miles South, in Tampa, Florida, daytime temperatures rose to 89 degrees Fahrenheit, the warmest temperature ever-recorded there in the month of February. Cincinnati and Pittsburgh also set all-time February records.
[250 pm Tue 2/20] The temp at Boston has climbed to 69 degrees, and at Worcester the temp has reached 66. The breaks the record high for today's date at both locations. #MAwx
But what foods are actually associated with weight gain in kids?
To find out, a group of researchers from Duke–National University of Singapore looked to the Avon Longitudinal Study of Parents and Children, which consists of 15,444 children born in 1991 and 1992 around Bristol, a city in southwest England. For their analysis, they included the 4,646 children who filled out a three-day food diary and had their height, weight, and physical activity measured at ages 7, 10, and 13. They tracked the changes in their BMI and measured how much chubbier or thinner they were than the average kid their age.
New evidence challenges one of the most celebrated ideas in network science.
A paper posted online last month has reignited a debate about one of the oldest, most startling claims in the modern era of network science: the proposition that most complex networks in the real world—from the World Wide Web to interacting proteins in a cell—are “scale-free.” Roughly speaking, that means that a few of their nodes should have many more connections than others, following a mathematical formula called a power law, so that there’s no one scale that characterizes the network.
Purely random networks do not obey power laws, so when the early proponents of the scale-free paradigm started seeing power laws in real-world networks in the late 1990s, they viewed them as evidence of a universal organizing principle underlying the formation of these diverse networks. The architecture of scale-freeness, researchers argued, could provide insight into fundamental questions such as how likely a virus is to cause an epidemic, or how easily hackers can disable a network.
Whatever their reasons, both Obama and Trump have argued against overemphasizing the effects of election interference—and they might both have a point.
At the start of the weekend, President Trump was buoyant, exulting that Robert Mueller’s latest round of indictments had not shown any evidence that the Trump campaign colluded with Russia. (Never mind that the troll-farm attacks are just one of several spheres Mueller is investigating, and that far more evidence to suggest collusion has turned up in others.)
But by the mid-weekend, the president’s mood had soured, as it became clear to him that the prevailed narrative from the indictment was the “incontrovertible” proof—to use National-Security Adviser H.R. McMaster’s word—of Russian interference in the 2016 election. Nothing sets Trump off quite as consistently as any suggestion of anything that might undermine the legitimacy of his victory.
Tech analysts are prone to predicting utopia or dystopia. They’re worse at imagining the side effects of a firm's success.
The U.S economy is in the midst of a wrenching technological transformation that is fundamentally changing the way people sleep, work, eat, shop, love, read, and interact.
At least, that’s one interpretation.
A second story of this age of technological transformation says that it’s mostly a facade—that the last 30 years have been a productivity bust and little has changed in everyday life, aside from the way everyone reads and watches videos. People wanted flying cars and got Netflix binges instead.
Let’s call these the Disrupt Story and the Dud Story of technology. When a new company, app, or platform emerges, it’s common for analysts to divide into camps—Disrupt vs. Dud—with some yelping that the new thing will change everything and others yawning with the expectation that traditionalism will win out.