News for September 26

Ethics and History in the Bailouts

In the wake of yet another government takeover of a financial institution (Washington Mutual was seized by government regulators on Thursday) and news of the government’s $25 billion loan to help U.S. automakers, at least two questions remain: How could this happen? and What will happen now? ProPublica offers two articles showing the historical aftermath of government financial bailouts, and how regulators warned of this crisis. Also, writer Barbara Ehrenreich targets the power of positive thinking as a seed for the nation’s meltdown. Links include:

ProPublica |  “With the flurry of recent bailouts, we decided to look beyond initial government outlays to see how the Treasury did in the end. The summaries that follow leave final judgment to you, in part because it’s difficult to nail down exact profit or loss. Moreover, no one can say what might have happened without government intervention.”

ProPublica |  “Long before the financial crisis claimed headlines, U.S. regulators and law enforcement officials had begun sounding alarms about dangerous lending practices and Wall Street’s headfirst jump into the subprime market. Some were brushed off by their superiors. Others led agencies like the Federal Deposit Insurance Corporation and the Treasury’s Office of Thrift Supervision, which at least one lawmaker has accused of acting sluggishly to avert the crisis.”

Barbara Ehrenreich @AlterNet |  “Besides greed, another habit of mind should get its share of the blame: the delusional optimism of mainstream, all-American, positive thinking.”

Alas, a Blog |  “Why are we amenable to bailing out the rich, but not the poor? It’s not entirely about economics. It’s not even entirely about stinginess or apathy. It’s about power. When I have money and you don’t, I’m more powerful than you are. And when I have a choice to make – dissolving that power by giving you what you need, or holding onto that power by putting you in your place – it’s much more thrilling to peck my way up to a higher spot in the order.”

PopLicks |  “The potential collapse of our capital markets is apparently not nearly as interesting as Clay Aiken or Star Wars.”

I Love the Presidential Debates, But They Don’t Matter  |  Alas, a Blog

I have a fantasy of living in a society in which voters decide who to vote based on serious policy and moral debates. That’s why I like watching the debates, and that’s why I blog. But make no mistake, it’s a fantasy. Who wins the election does matter for substantial policy reasons; but those substantial policy questions don’t have any causal effect on who wins the election.

• Related link: What to Expect from the Presidential Debates  |  Salon

The Secret to Success: Fail a Little  |  Christian Science Monitor

Baseball’s numbers help us to remember that frequent failure can be considered a success. Players who routinely fail to get a hit 7 out of every 10 at-bats are considered All-Stars. But they are really stars because they learn from their mistakes. The lessons of failure are an important part of the curriculum of success. We learn from them. They push us to do better; they teach us humility.

Democrats Frame Economy as ‘Values’ Issue  |  @Pew Forum on Religion & Public Life

Now, with U.S. financial systems in turmoil and the government rushing to fix them, Democrats sense an opportunity to highlight the economy as a values issue and attract middle-of-the-road religious believers who were central to President Bush’s winning coalition in 2004.

Southern Comfort  |  BBC News’ Talking America

“Food is a big deal down here. This was a place where you couldn’t share a lunch counter with folks who looked different without starting a riot. But it was also a shared experience. Fried chicken started out as something cooked by blacks, but they brought it into the homes of the whites who employed them. That’s why it’s so important. We find our shared humanity in what we eat.”