Why Aren't They Occupying Obama?
I've been seeing the term "venture socialism" around (a term apparently coined by Senator Jim DeMint), and I Googled it and found this piece by Timothy P. Carney in the Wash Ex about "this racket of private profit and public risk," the Export-Import Bank of the United States:
In its latest act of venture socialism, the Obama administration has offered a novel taxpayer backstop to General Electric, the multinational industrial conglomerate that is famously close to this administration, and that spends more on federal lobbying than any other company. The government accessory in this instance is the Export-Import Bank of the United States, a federal agency that finances U.S. exports at taxpayer risk....But manufacturers aren't the only beneficiaries of this little-known federal agency -- banks profit from it, too. For instance, when Ex-Im recently approved $1 billion in financing to subsidize Pemex, Mexico's government-owned oil company, 3M and other U.S. exporters of oil-field equipment benefited, but so did some big banks. Bank of America and JP Morgan financed these sales, and so if Pemex defaults, it's these megabanks the U.S. taxpayer will be bailing out.
Now Obama has created a new Ex-Im subsidy for banks. The name is a mouthful: "The Supply-Chain Finance Guarantee Program."
Here's how to understand what's going on: Imagine I'm a shoe exporter. I ship shoes to stores in Europe, and then I wait a few weeks to get paid by the stores. But what if more orders come in, and I need to restock the shoes right away, before I get paid for my last shipment? I could just borrow from a bank. But another option is that I can just sell my invoices, in effect, to the bank. If the shoe stores owe me $1,000, I might sell Citibank, for $950, the right to be paid by those shoe stores. That's called supply-chain finance, and it's a quintessential capitalist arrangement.
But in the midst of this commerce among banks, exporters, and importers, Barack Obama has inserted the unwitting U.S. taxpayer. As part of his Export Initiative aimed at doubling U.S. exports in five years, Obama created the Supply-Chain Finance Guarantee Program to guarantees 90 percent of the banks' exposure. In our hypothetical example, if the European shoe stores welched, the U.S. taxpayers would cover 90 percent of Citibank's loss.
Citi and JP Morgan were the first two banks admitted to this new subsidy program, and earlier this month, Ex-Im welcomed GE Finance. So GE, which already rakes in tens of billions of Ex-Im subsidies as an exporter (in September, for instance, Ex-Im approved a $425 million subsidy to help GE sell locomotive equipment to Kazakhstan), will now also pocket Ex-Im subsidies as a financier, too.







Hey! See here, November 17, 2011 6:31 PM. Whaddemmeye, chopped liver ovah heah?
Crid [CridComment at gmail] at November 18, 2011 7:17 AM
Also, offtopic: Is anything more stereotypically "feminine" than obsessive manipulation of feelings?
Crid [CridComment at gmail] at November 18, 2011 7:18 AM
Cridster you pick interesting stuff I'll have to read later, but on the Steinem piece? didn't get through it yet but this made me cringe, coming from an interviewer: "Her looks, though. Let's get them out of the way first."
Why do we give a damn how she looks? I thought we WEREN'T supposed to care about that? Takes the weight out of the piece, doncha think? Dunno, I'll have to read it in full later to see what it's about.
As far as our guarantee of Ex-Im bank... OI! Why is it always the taxpayer that has to back this stuff up? If the banks want that sort of thing they should be PAYING us to insure them.
SwissArmyD at November 18, 2011 9:13 AM
Awesome.
Not.
Fire. Them. All.
I R A Darth Aggie at November 18, 2011 9:20 AM
Somehow I'm guessing that if the OWS clowns started to actually go after the folks they should be going after - in Congress and the White House - all the money for the free food and supplies; the union support; and the ridiculously supportive media coverage - all that would very quickly dry up.
JDThompson at November 18, 2011 10:36 AM
Now imagine I'm a shoe exporter under this system. I know I'm going to sell my receiveables to Citibank for a discount, so I bump the price a little. Citibank doesn't mind because they have limited risk with 90% of their receivables guaranteed by the government.
[My $1,000 in the previous example is now $1,200 and Citibank buys it for $1,000 with $900 guaranteed by the government. On a good deal, they make $1,200 on a $1,000 investment. On bad deal, they still get $900. I get a $1,000 which covers my actual costs.]
Since Citibank has limited risk, they're willing to purchase more receivables for their portfolio.
I'm willing to sell more to them. I get my money faster and without any foreign currency or foreign banking issues.
I start accepting more orders on credit than I would ordinarily have accepted. And selling them to Citibank.
Pretty soon, I'm starting to depend on the timely cash flow from those receivables sales and the increased sales since I can now accept more credit orders.
So, I start accepting credit orders from less-credit-worthy customers. There's no risk to me, since Citibank will buy them.
And why would Citibank buy these riskier receivables? Because there's little risk to them, having 90% of the amount guaranteed by the government. Some price adjustments may occur, but otherwise the deals will get made.
Before long Citibank starts packaging the invoices and selling the packages. It's a low risk cash flow instrument for investors (90% guaranteed). Citi can mix the riskier receivables with the A+ ones and create a package acceptable to even a risk-averse investor (especially with the 90% guarantee).
Now, I'm buying more and more shoes to export - with a corresponding degradation in the quality of the shoes. WIth lower quality shoes, the customers don't see a rapid sales turnover and are slower to pay. No worries to me since I've sold the receivables to Citibank. No worries to Citibank since they've sold the packaged receivables to investors.
Then, the shoe market collapses ... or at least my part of it does since I'm now selling crappy shoes to destitute retailers. The retailers can't pay the invoices. Investors are now stuck with a stack of worthless receivables. No worries, the government will bail them out.
So everything works out for everyone, right?
Sound familiar?
Conan the Grammarian at November 18, 2011 10:38 AM
But for fuck's sake...
Crid [CridComment at gmail] at November 18, 2011 1:12 PM
Just another scenario and argument for a Too Big to Fail Tax. Something McCardle advocates.
snakeman99 at November 18, 2011 1:54 PM
Summary: Any profits go to the friends of Obama, and any losses go to the taxpayers.
Work harder, slackers. More losses are on the way.
MarkD at November 18, 2011 1:55 PM
> Something McCardle advocates.
Three word sentence! Are we supposed to ask 'What do you mean by that?!?!'
Don't be gay.
Crid [CridComment at gmail] at November 18, 2011 2:30 PM
The cops, Man.
Crid [CridComment at gmail] at November 18, 2011 3:08 PM
I used the term in a letter to Forbes magazine in 2006 which letter is online. Does DeMint have a prior use3 of the term?
I'm claiming credit, dammit.
BlogDog at November 18, 2011 3:13 PM
Cite.
Crid [CridComment at gmail] at November 18, 2011 3:43 PM
http://www.forbes.com/forbes/2006/0724/022.html
Second letter.
BlogDog at November 18, 2011 3:54 PM
Props.
Crid [CridComment at gmail] at November 18, 2011 4:16 PM
@SwissArmyD
If you would read the entire piece instead of skimming, you would see that the writer is commenting on the fact that feminism has loosened up as to the minefield that is mentioning a woman's looks.
@Crid
She says we need to be angrier about the fact that abortion rights are degrading quickly and that we are at a "tipping point" where we could easily go back to pre Roe v. Wade era.
I've never had an abortion, but I've had a couple of scares--single, poor as dirt, trying to scare up the money just in case. I can only imagine what it's like for girls in less progressive areas, where *technically* it's legal, but good luck finding help.
Look boys, you can either let us scream about the fact that abortion should be easily accessible, which it currently very much isn't, *or* you can bellyache about child support and gold digging women and how family courts favor women.
And sometimes we get emotional because men are retarded. No emotion whatsoever behind that last statement btw, as it's a cold hard fact.
Crid, you get all het up about just about everything Amy writes here. Everything you do is filled with, uh, passion.
Please to be explaining to me how you can dominate a forum with said passion, but when women fight for actual rights in the actual world, it's us being "emotional and manipulative?"
And how does anything Gloria Steinem, or any other female for that matter, do or say affect you personally? (Answer: It doesn't.)
What you are doing, Crid, which you'd recognize if you actually dug into the feminist movement (which most women are conflicted about on some level) is that what men like you are currently doing is "making the personal political." Do you recognize that phrase?
The difference, honeybun, is that the core of the feminist movement is to fight for actual rights, where you seem to just be mad because, because, why, again?
deathbysnoosnoo at November 19, 2011 6:56 AM
"She says we need to be angrier about the fact that abortion rights are degrading quickly and that we are at a "tipping point" where we could easily go back to pre Roe v. Wade era. "
Is that really true, though? Feminists have been beating that "tipping point" drum ever since 1980, and absolutely nothing has changed. In fact, arguably abortion rights have opened up further since them -- third-trimester abortions, which were unimaginable in 1980, are now legal and available. The DoD pays for abortions for military personnel, and Obamacare will pay for abortions, assuming it isn't repealed. That Mississippi law will be overturned by the courts based on existing precedent, just as attempts by other states have been.
"Tipping point" is the same alarmist bullshit that the global-warming totalitarian wannabees use to strike fear in people. This is just something that feminists are using to keep supporters in line, and foreclose any questioning of their leadership.
Cousin Dave at November 19, 2011 8:50 AM
> She says we need to be angrier
Right. That's a profoundly feminine way of approaching things, and not an admirable one. Women whose favorite tool is the manipulation are, as a rule, naive. It's like a football-crazed 13-year-old boy who decides that the best response to a problem is aggression... And the kind he wants to deliver is a flying tackle followed by a savage beat-down.
Your recitation of her words is kind of amusing. It's like you've been marinating in the rhetoric for so long, you don't recognize the aroma. Oprah in the early days was famous for exhorting her audience: "Are you angry yet??!!?"
> you get all het up about just about
> everything Amy writes here.
Only when she's wrong. It's been going on for years. I don't know why she puts up with it. It's fun practice for both of us.
> Please to be explaining to me how
> you can dominate a forum
If only.
> which you'd recognize if you actually
> dug into the feminist movement
Buttercup... Turtledove... Sugarbee... My life began in a profound and electric context of feminism. I've forgotten more of its tedious aphorisms than you're ever going to remember. And I'd spell out all the details in plain language except [A] I don't think I like you very much, [B] they're incredibly mundane and [C] I bet you really haven't considered many of these comments, and are only offering this critique as a bid for a seat in what you'd imagine to be Amy's Chair Circle of Big Sisterhood.
(She doesn't have one, which is another reason to hang out here.)
Tell you what, start reading everything with my name on it about here, and go forward. We'll take it up again later. M'kay? Great. Thanks oodles.
Crid [CridComment at gmail] at November 19, 2011 10:29 AM
Re: OWS
17 hours ago, this image as plastered all over the web
http://i.imgur.com/J3AE5.jpg
Three hours ago, the officer's name, email, and residential address were freely available across the web as well
Crid [CridComment at gmail] at November 19, 2011 4:39 PM
What an ass. I am about as pro-police as you can get, and I'd like to hang this one up by his balls till he's dead. If OWS gets this guy fired, it hasn't been all worthless.
momof4 at November 19, 2011 8:58 PM
Wow. That is just VILE.
Amy Alkon at November 19, 2011 9:14 PM
While I agree it's vile -- why did the cop have to resort to an industrial size can of pepper spray?
Maybe the students were asked, warned, and otherwise asked to leave? While I agree that what the image captures is brutal -- there is a difference between pepper spraying the students after they have been asked to leave and refusing and just doing it for the hell of it.
If you came onto my private property and were setting up a tent without my permission -- I would ask you to leave and you refuse. I then tell you to get off my property now or I'm calling the deputies. The deputies then show up and tell the person he has to leave. They write him a ticket and he still refuses to leave. What is the next step? Spray him with pepper spray or shoot him?
This is another group of useful idiots.
Jim P. at November 19, 2011 10:37 PM
Amy Alkon
http://www.advicegoddess.com/archives/2011/11/18/why_arent_they.html#comment-2778763">comment from Jim P.This is not justice; this is retribution. These are non-violent protesters, sitting down, motionless.
Amy Alkon
at November 19, 2011 10:52 PM
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