tag:blogger.com,1999:blog-4102429195693595750.post6616172640724108439..comments2024-03-22T05:15:17.042+02:00Comments on Sudden Debt: The Stupidest Cut Of AllHellasioushttp://www.blogger.com/profile/03564511281240682625noreply@blogger.comBlogger28125tag:blogger.com,1999:blog-4102429195693595750.post-20602159110302425262010-12-21T05:27:01.754+02:002010-12-21T05:27:01.754+02:00I'm am going to be a blog hog today and throw ...I'm am going to be a blog hog today and throw in one more link:<br /><br />In the report by bankruptcy examiner Anton Valukas that came out last March, he describes how Ernst and Young threw up a brilliant "We’re not corrupt, we’re just incredibly stupid" defense when confronted with the question of the $50 billion in Repo 105s in the second quarter of 2008. The report (a PDF of which you can view here) talks about what E&Y’s Lehman auditor Hillary Hansen had to say when future E&Y whistleblower Michael Lee confronted her about the $50 billion in Repos:<br /><br /><i> During the Examiner’s interview of Hansen, Hansen recalled that while Ernst & Young questioned Lee about his May 16, 2008 letter, Lee "rattled off" a list of additional issues and concerns he held, one of which was Lehman’s use of Repo 105 transactions. Ernst & Young had no further conversations with Lee about Repo 105 transactions. Prior to her interview of Lee in June 2008, Hansen had heard the term Repo 105 “thrown around” but she did not know its meaning…</i><br /><br />In other words, the lead auditor reviewing one of the world’s largest investment banks had no idea what a series of regularly-occurring billion-dollar transactions committed by her main client were, and apparently wasn’t interested. It also didn’t seem to bother E&Y that Lehman was not disclosing any of this to its investors in its SEC filings.<br /><br />From <a href="http://www.rollingstone.com/politics/blogs/taibblog/crisis-dominoes-start-falling-with-lehman-auditor-20101220" rel="nofollow">Matt Taibbi: Crisis Dominoes Start Falling With Lehman Auditor</a><br /><br />Remember when I told you that "stupidity is a legal defense?"<br /><br />Start paying attention, class.OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-76141460898477648892010-12-21T05:15:25.314+02:002010-12-21T05:15:25.314+02:00And more food for thought:
Why Government is Mor...And more food for thought: <br /><br /><a href="http://www.youtube.com/watch?v=E3DsmGvVqiw&feature=player_embedded" rel="nofollow">Why Government is More Afraid of Debt than Depression</a><br /><br />What Mr. Hudson says in this video is very close to what I have been saying.OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-62624157381040793102010-12-21T02:19:25.902+02:002010-12-21T02:19:25.902+02:00I think some here would be interested in this 60 m...I think some here would be interested in this 60 minutes piece:<br /><br /><a href="http://www.cbsnews.com/video/watch/?id=7166293n&tag=contentMain;contentAux" rel="nofollow">State Budgets: Day of Reckoning</a>OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-22444441258184800012010-12-17T05:42:01.968+02:002010-12-17T05:42:01.968+02:00Sorry about that last post...
To be honest, this ...Sorry about that last post...<br /><br />To be honest, this is one of the things I admire about the Brits because they don't tend to overreact. Like you said, when they brawl on the streets, there must be terribly wrong. Unlike other countries and I guess I should say in my country, as well, we argue or take on the streets over the smallest issues. That's what you get when you live in a democratic country.Nilehttp://myloanoption.comnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-34558334061590597922010-12-17T05:41:08.148+02:002010-12-17T05:41:08.148+02:00To be honest, this is one of the things I admire a...To be honest, this is one of the things I admire about the Brits because they don't tend to overreact. Like you said, when they brawl on the streets, there must be terribly wrong. Unlike other countries and I guess I should say in my country, as well, we argue or take on the streets over the smallest issues. That's what you get when you live in a democratic country.Daphnehttp://healthyflat.comnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-61455865176157680412010-12-17T01:09:51.575+02:002010-12-17T01:09:51.575+02:00On the other hand, I understand why Hell backs the...On the other hand, I understand why Hell backs the leftist loonies at the universities. It is because Hell sees everything as a fight between 'left' and 'right' and, as a self-declared commie, he already chose the side.<br /><br />Hell, I agree that banking elites should bear the primary burden of this crisis, but can you cite a few well-known university professors, who talked against bailouts in 2008? Almost all the elite intellectuals I know (starting with Krugman) thought the banks should be 'saved'.<br /><br />Hell, I think you are confused as hell. People should go to internet to get educated and save their four years.Greeniehttps://www.blogger.com/profile/16723475560144858107noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-58292109382580966852010-12-17T01:02:25.656+02:002010-12-17T01:02:25.656+02:00I agree with 'Lord blagger' and 'But W...I agree with 'Lord blagger' and 'But What do I know'. It is unfortunate that Hell equates having a college degree with education. I learned a lot about current economic crisis by reading blogs and through self-studying, whereas most economics PhDs I know are as clueless as they were in 2005.<br /><br />When people are asked to directly pay the bill of rearing those nincompoops known as professors, they will figure out the cost-benefit of university education.Greeniehttps://www.blogger.com/profile/16723475560144858107noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-50925559552437631372010-12-14T03:31:49.702+02:002010-12-14T03:31:49.702+02:00Dr. John:
From my best recollection, my tuition w...Dr. John:<br /><br />From my best recollection, my tuition was paid through the University of Oklahoma, not Oxford. However, there was an extra cost for the room and board, which I didn't have at OU. At the time, everything in England cost twice as much as Oklahoma. That is where I really felt it.<br /><br />Although, when I needed health care, that was free. It would have cost me a fortune in the U.S. Actually, that is not really completely true. I had to pay $7.00 (4 pounds) for my antibiotics and $25 for the office visit. When I tripped on the sidewalk the third day I was there and broke a rib, they had a medical doctor there in 5 minutes -- and that didn't cost me a dime (or 5p, for that matter).<br /><br />I suppose there are trade-offs for everything.OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-4631798233330721382010-12-14T02:04:47.282+02:002010-12-14T02:04:47.282+02:00OkieLawyer: How do the costs in the UK compare to ...OkieLawyer: How do the costs in the UK compare to the average costs for a University degree in the U.S.? <br /><br />JohnDr Johnhttps://www.blogger.com/profile/07453949255704523726noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-22675240295115945302010-12-13T21:09:53.079+02:002010-12-13T21:09:53.079+02:00I have studied and lectured in a university. Now g...I have studied and lectured in a university. Now getting paid for in the private sector.<br /><br />One way of achieving the 80% savings for the government would be to kick 60% of the students out of the universities. The worst professors and faculty go out of the door too, of course. Since the worst students consume more resources in general, kicking 60% out would result in 80% savings.<br /><br />After this the degree would again mean something. <br /><br />What I see happening every year in all western countries is inflation of the university degrees and college degrees. <br /><br />First there are more and more students each year, which means that the average student is not as bright (motivated,talented, whatever) as they used to be. Then the standards must be lowered so that a reasonable percentage of them get a degree. Then we all pretend that the university degree still means something.<br /><br />This is what has happened in Finland and I think this is happening elsewhere too. The employers know this.<br /><br />The end result of this inflation is a lose-lose situation. Pretty much like economic inflation where we pretend that the dollar (or euro) still has the value it used to have?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-24887010281274489092010-12-13T08:57:49.450+02:002010-12-13T08:57:49.450+02:00"Let's be constructive -- if someone does..."Let's be constructive -- if someone does not like making students pay their fair share, what are possible alternatives?"<br /><br />Pay for them the way the Federal Government pays for war, and other expenses.<br /><br />But yes, value does matter. What is the value of well critical thinkers compared to perpetual war?Critonoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-48276930503914122332010-12-11T22:57:33.244+02:002010-12-11T22:57:33.244+02:00Long ago, someone said that the last couple on Ear...Long ago, someone said that the last couple on Earth will go to their graves arguing about how they should have educated the children they never had. This is a contentious topic!<br /><br />There seem to be three points about which there is little debate:<br /><br />1. The percentage of young people getting university educations continues to climb.<br /><br />2. The cost of that university education is growing rapidly.<br /><br />3. The quality of that university education is declining.<br /><br />Those are not sustainable trends -- especially #2 & #3. Clearly, something will give at some point. Charging students the true cost of a university education will make students demand better value from universities, as well as look for cheaper alternatives.<br /><br />Let's be constructive -- if someone does not like making students pay their fair share, what are possible alternatives?Kinuachdrachhttps://www.blogger.com/profile/13275320683766290581noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-43586049295949949922010-12-11T20:11:38.699+02:002010-12-11T20:11:38.699+02:00Re: Education.
Ignorance is the night of the mind...Re: Education.<br /><br />Ignorance is the night of the mind, but a night without moon and star. ~ Confuciuscamabronhttps://www.blogger.com/profile/10024146459457965038noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-79989919382203086672010-12-11T19:31:12.842+02:002010-12-11T19:31:12.842+02:00Feudal societies do not require large populations ...Feudal societies do not require large populations of university graduates. <br /><br />If you care to keep up with The Chronicle of Higher Education you will find many articles about various colleges eliminating departments in cost cutting moves. The first to go are European languages other than Spanish and arts programs. SUNY Albany has been a recent example, but it's hardly alone. <br /><br />The root problem with our discourse about education is that we conflate education with training. They are quite distinct. Education's purpose is not to be in any specific way useful, but to foster human development of potential. Training is what you seek to get a job working for somebody else.Brainy Smurfnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-79264373294150398902010-12-11T15:29:55.069+02:002010-12-11T15:29:55.069+02:00Yes, what was said is that the economists could no...Yes, what was said is that the economists could not understand why we were not getting robust growth.OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-23288336869236566762010-12-11T08:51:14.958+02:002010-12-11T08:51:14.958+02:00NBER is the official determinant of US economic ex...NBER is the official determinant of US economic expansion/contraction dates.<br /><br />According to them the last recession started in Dec 2007 and ended in June 2009, i.e. we are in "growth" mode.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-16827005893982662992010-12-11T01:16:05.160+02:002010-12-11T01:16:05.160+02:00As someone who has a certificate from Oxford Unive...As someone who has a certificate from Oxford University (part of my law school education), I must say that British youths are now going to get to experience the debt that American college and university students have "enjoyed" for some time.<br /><br />If you notice, <i>we</i> didn't riot. We accepted our fate.<br /><br />By the way, I thought I would leave you with a thought that I heard today at work: apparently the economists who advise the U.S. federal government are saying that by all metrics, we should have already have pulled out of the recession. They said they could not understand why we haven't. I had to pipe up and say "I know."<br /><br />Ahem. I couldn't help myself. But there was no time to explain, and it wasn't really the place, anyway.<br /><br />Have a nice day, y'all.OkieLawyerhttps://www.blogger.com/profile/17071917464425173379noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-20620155996789954992010-12-11T01:11:47.520+02:002010-12-11T01:11:47.520+02:00My email sig is: "If you want to get laid, go...My email sig is: "If you want to get laid, go to college. If you want an education, go to the library." - Frank Zappa<br /><br />It is not clear for me, after 4 degrees (varying from computer science, to biology and touching medicine) that university provides a good education.<br /><br />Indeed I am getting a splendid education: since I got back to school I got the free time to read and I am really getting a PhD (PHILOSOPHICAL doctor) degree. But not from what I get from school.<br /><br />May I recommend Paul Feyerabend's "Against Method"? Maybe too radical, but a nice argument. Especially for someone with a hard-science (or near hard science) background...Tiagohttps://www.blogger.com/profile/09130634176057923895noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-20764235166637081292010-12-10T22:30:48.281+02:002010-12-10T22:30:48.281+02:00Education is not only about economics, of course. ...Education is not only about economics, of course. In fact, it isn't even mostly about economics.<br /><br />Education is an absolute must for enjoying life. It's the difference between a block of raw marble and Bernini's Apollo and Daphne.Hellasioushttps://www.blogger.com/profile/03564511281240682625noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-66374223629854428742010-12-10T19:31:22.241+02:002010-12-10T19:31:22.241+02:00I still partially live in the UK (inside the unive...I still partially live in the UK (inside the university system, no less) and I think I can add a bit of info to this.<br /><br />First, a nitpick: the system varies around Britain, for instance in Scotland is very different. What you describe is the English system (which I think - not sure - applies to Wales).<br /><br />Second, and most importantly: The debt accrued (the state lends you the money for the fees) only needs to be paid IF YOU MAKE MONEY. Very different from the US. So, if you end up unemployed or with a sh.ty low pay job then no worries, there will be no collection (which is done with taxes). If you emigrate? No payment. A bad income year: No payment. After a certain amount of years (a lot, dont know how many), the debt lapses.<br /><br />I know a few people in this situation, it is not directly me. So if other people have more up-to-date information, please correct me. But I believe the factual description above is mostly correct.<br /><br />The repayment system is actually progressive and, may I suggest, fair.<br /><br />Another issue (already raised here) if the appropriateness of what is taught. If can google for some very strange BScs indeed. But even the post-industrial economy training: If it of any use in the predicament were are entering (peak oil, peak resources, over population)?Tiagohttps://www.blogger.com/profile/09130634176057923895noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-46740710229678774442010-12-10T19:06:21.111+02:002010-12-10T19:06:21.111+02:00Hellasious says:
"Here's the problem wit...Hellasious says:<br /><br />"Here's the problem with producing a personal bill for each and every government service rendered: social cohesion disappears, i.e only the rich can afford it."<br /><br />As opposed to the current approach in which we massively issue government debt and then wait for a soverign default to see what happens????<br /><br />We're talking about an "education bubble" here. Most people who are in college don't need to be in college. Their lives would be much better if they went into trades at 18 rather than wasting five (or six) years in college racking up massive debts for a degree in marketing or somesuch.<br /><br />This entire argument hinges on cheap energy anyway. If we can't actually transition to something sustainable in terms of energy, this entire argument was moot.<br /><br />p.s. You should update your "Goldman Sachs is the Economy" post from, what, 2007? That would be amusing for comparison.JPhttps://www.blogger.com/profile/11126071014909954387noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-66960413744766207072010-12-10T19:01:43.151+02:002010-12-10T19:01:43.151+02:00Hellasious says:
"Apart from any moral objec...Hellasious says:<br /><br />"Apart from any moral objection one may have, this makes ZERO economic sense. For example, as a totally selfish businessman I want a well-educated, healthy workforce that will show up for work on time using low-cost public transportation and can then go home to a safe neighborhood untroubled by crime."<br /><br />You are thinking about this problem from a positive-sum enlightenment approach.<br /><br />You're making a moral/philosophical argument and calling it an economic argument.<br /><br />I'm not saying you're wrong, only that you are not making a purely economic argument.JPhttps://www.blogger.com/profile/11126071014909954387noreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-34289703946357437652010-12-10T18:24:20.192+02:002010-12-10T18:24:20.192+02:00"If you spend money and agree to pay for it i..."If you spend money and agree to pay for it in the future, you create a debt. If take money in advance for a service, you also create a debt. Governments however, ignore these simple rules. That's the reason for the mess."<br /><br />"This mess" has to do with tuition subsidies and pensions? Nothing to do with Governments paying for the failed bets of banks?<br /><br />Funny how lots on the right deny existence of a banking collapse and their dependence on government debt.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-20972374901876933142010-12-10T18:12:10.398+02:002010-12-10T18:12:10.398+02:00"If you spend money and agree to pay for it i..."If you spend money and agree to pay for it in the future, you create a debt. If take money in advance for a service, you also create a debt. Governments however, ignore these simple rules. That's the reason for the mess."<br /><br />"This mess" has to do with tuition subsidies and pensions? Nothing to do with Governments paying for the failed bets of banks?<br /><br />Funny how lots on the right deny existence of a banking collapse and their dependence on government debt.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4102429195693595750.post-22442298337468930792010-12-10T15:21:01.295+02:002010-12-10T15:21:01.295+02:00I agree, Hell, with the caveat that one should not...I agree, Hell, with the caveat that one should not conflate university attendance with good education. God knows that here in the US most college classes are useless in a practical sense, and the only value in a university education that could not be delivered in a far more efficient manner is the degree they give you. Ask anyone who has listened to a Great Courses series or something similar and they will tell you that the $50 they spent was of far more value than the money they spent for attendance at college.<br /><br />The cost of a post-secondary education is monstrously inflated compared to the value delivered. If the British government could get smart, it would offer an equivalent degree track with an internet university that would offer the same courses at a far cheaper price. Then it could have the same educational standards and its budget cuts too.But What do I Know?noreply@blogger.com