 |
|
February 10, 2012
Lisa M. Krieger: Man with defibrillator demands access to his own heart's information
David G. Savage: Why activists may not be in a hurry to have High Court rule on alternative marriage
February 9, 2012
Laura McMullen: 10 Least Expensive Public Schools for Out-of-State Students
Kimberly Palmer: How to actually enjoy -- relaxing, financially -- your vacation
February 8, 2012
Warren Richey: Why momentous Prop. 8 ruling might not satisfy gay-rights groups
Menachem Wecker: Though Controversial, LL.M.'s Can Lead to Specialized Legal Jobs
The Kosher Gourmet byDana Velden: Going to the bother of making soup? You know it better be good. This CREAM OF TOMATO SOUP certainly is! And it's a cinch to make, too (Includes techinques and serving secrets)
February 7, 2012
Frank J. Gaffney, Jr.: Caught off-guard? President's Super Bowl interview with Matt Lauer gives those who need a reason not to vote for him, a darn good one
Suzanne Bohan: Leaping lizards! Tiny reptiles advancing robot design
February 6, 2012
Jonathan Tobin: Iran Threatens Israel With Destruction, But the New York Times Doesn't Hear It
Jeffrey Fleishman: In newly democratic Egypt, tens of democracy activists jailed, to stand trial; their groups are 'threatening the stability of the homeland'
Julie Deardorff : Researchers say antioxidants may not be that effective and could do more harm than good
Mark Clayton: How did Anonymous hackers eavesdrop on FBI and Scotland Yard?
February 3, 2012
Edmund Sanders : Israeli official says Iran is creating missile that could reach East Coast of US
Victoria Kim: Immigrant-smuggling ring used black drivers to avoid racial profiling
February 2, 2012
Jim Carney: Wrong number call may have saved her life
Reza Kahlili : Ex-CIA spy in Iran's Revolutionary Guard: What Obama doesn't grasp about striking deals with Tehran
Tina Susman: For woodchuck rescuer, every day is Groundhog Day
February 1, 2012
Brian Bennett: US officials see increasing threat of domestic attack from Iran
Emily Brandon: How to Take Advantage of New 401(k) Fee Disclosures
January 31, 2012
January 30, 2012
Paul Richter and Ramin Mostaghim: Misreading Teheran's limits -- deadly and economically devastating as they may be -- is a risk administration, Europe seem willing to take
Suzanne Bohan: Warning: Nap-deprived tots missing more than sleep, study finds
Meg Handley: Banks Revamping Rewards Programs to Woo Customers
January 27, 2012
Caroline B. Glick: Obama: Of course I intend to prevent a nuclear holocaust . . . in a few months
Yochonon Donn: In liberal New York City, fervently-Orthodox Jews may soon be getting a district to call their own
Jeannine Stein: An inflated ego and thinking you're 'all that' doesn't just make others sick of you, it can make you ill
Katy Hopkins: New budget rules may affect how much money you get for college
January 26, 2012
Ed Koch: To the New York Times, calling for the murder of Jews by those capable of having their incitement taken seriously isn't news
Jeannine Stein: Mental illness struck one in five U.S. adults in 2010: Report
January 25, 2012
Richard Simon: House passes two bills endorsing the use of religious symbols at military memorials
Fred Weir: Putin: Multiethnic Russia cannot survive as a US-style 'melting pot'; must find its own way
Susan Johnston: 5 Sneaky Coupon Strategies Consumers Should Watch Out For
January 24, 2012
Carol Clark: The price of your soul: How your brain decides whether to 'sell out'
Caroline B. Glick: America lost most in 'Arab Spring'. Sadly, many voters still don't grasp the extent
Warren Richey: Drug criminal scores win in GPS ruling from conservative-leaning high court
Erika Bolstad: Black conservatives gather to talk about gaining strength
January 23, 2012
Melissa Dribben: Jewish voters to play a key role in Florida's Republican primary
Jordan Rau: In quest to grow, Catholic hospital system will announce this morning its break from church
Ali Safi: U.S. envoy gives Taliban terms for peace talks
January 19, 2012
January 18, 2012
January 17, 2012
Frank J. Gaffney Jr.: No-kidding red lines: U.S. response to an Iranian nuke may be bluster, but Israel's won't be
David G. Savage: They sued their principals after slandering them online --- now the cases are headed to the Supreme Court
David Francis: Where to Invest in 2012: With stocks expected to rebound, opportunity abounds for investors
January 13, 2012
Ben Lynfield: Israeli lawmakers move to annex Jewish Judea, one museum at a time
Alexia Elejalde-Ruiz: Thriving through touch: Gentle massage helps older people with low mobility improve in mind and body
January 12, 2012
Warren Richey: Landmark Supreme Court ruling a 'resounding win' for religious groups
Warren Richey: Supreme Court says no to new rule on eyewitness testimony
John Fauber : Statins found to raise diabetes risk in postmenopausal women
Katy Hopkins : Consider This Before You Pay for an Online Degree
The Kosher Gourmet by Joseph Erdos: This mushroom and barley soup has an intense -- almost nutty -- flavor that mixes robust with Middle East. It has creaminess without cream
January 11, 2012
Shari Roan: Millions of atrial fibrillation sufferers at risk for devastating, but preventable, stroke
Tom Hussain: Pakistan -- recipient of more than $21 billion in civilian and military aid -- speeds pursuit of Iranian pipeline, defying US
David G. Savage: High court signals it won't be loosening TV's 'indecency' rules
Stephen Ceasar: Oklahoma's Islamic law amendment can't go into effect, court rules
January 10, 2012
Reza Kahlili: From an ex-CIA spy: US must exploit new split in Iran's Revolutionary Guard
Karen Kaplan: Study: Nicotine replacement products ineffective when used in real-life situations
January 9, 2012
Michael Doyle: Put through legal hell over dream home, couple fought back hard --- all the way to Supreme Court
|
| |
Jewish World Review
Dec. 16, 2008
/ 19 Kislev 5769
To fix economy Obama needs someone fluent in banks
By
Jonathan V. Last
http://www.JewishWorldReview.com |
"You can take Hollywood for granted like I did, or you can dismiss it with the contempt we reserve for what we don't understand. It can be understood, too, but only dimly and in flashes. Not half a dozen men have ever been able to keep the whole equation of pictures in their heads." - F. Scott Fitzgerald, "The Last Tycoon"
On Jan. 20, the day of President Obama's inauguration, the Dow Jones industrial average stood at 7,949. Since then it has dropped roughly 9 percent. If you look back to Nov. 4, when the market first began reacting to Obama's election, the Dow has dropped almost 25 percent. Correlation is not necessarily causation. But it would be difficult to deny that Obama's failure to address successfully the banking crisis has been a large factor in the collapse of the stock market.
At the heart of the current turbulence is the mortgage meltdown, which created a number of problems for the economy: a weakened housing sector, declining consumer confidence, enormous destruction of personal wealth for many homeowners. But the biggest problem is that the bad debt from the subprime mess had been leveraged - that is, separated into tranches, regraded, and then sold and resold - so that it contaminated a large portion of the banking system, upon which credit and the rest of the financial markets are entirely - not partly or mostly - dependent.
So why has Obama babbled away about health care and energy reform instead of fixing the banking industry? There are only two possible explanations, neither of which is reassuring.
The first - and unlikely - possibility, is that Obama does not actually understand the centrality of the bank problem. He has no experience in finance or economics and his few stray attempts to grapple with the subjects - "the stock market is sort of like a tracking poll in politics" - suggest a deep unseriousness.
Again, this seems unlikely because whatever Obama's intellectual blind spots might be, he is (I hope) listening to the wisdom of people outside his administration. And every economic observer in America, from David Smick to Andrew Grove to Warren Buffett, has been shouting from the rooftops about the need to put the banks in order.
So the alternative is that the administration is paralyzed because it is confronted with what Donald Rumsfeld would call a "known unknown": The global financial system is so big, and complex, and opaque that no one - literally, not one single person on the planet - knows for certain how it works.
Which means that fixing the banks isn't a question of simply finding the political will to push Button A. Rather, no one knows if pushing Button A - or flipping Switch B or pulling Lever C - will remove bad debt from troubled banks. Or cause a cascade of credit default swaps. Or trigger a run on the FDIC. Because the entire system has essentially become a black box.
It sounds slightly preposterous from a systems-engineering point of view. How could a thing built by human hands be beyond human understanding? Well, it turns out that institutional knowledge can be fleeting.
Consider the programming language COBOL. Developed in 1959, COBOL was used in mainframes and large institutional computers. Over the years it was replaced by other languages. The thing is, COBOL is still out there, running billions of lines of background code, like one of those archaeological sublayers underneath a modern city block. It supports things going on above it, but no one is quite certain exactly how. Some specialized programmers still study it, but it's something of a lost language.
Then there's the Trident missile. Built in the 1980s, the Tridents are submarine-based nuclear missiles. Recently the Navy tried to refurbish the missiles, but ran into a slight problem: The Trident contains an essential component code-named "Fogbank" (the New Scientist speculates that Fogbank is a type of foam) which nobody knew how to manufacture anymore. The refurbishment plans were put on hold; teams of experts are trying to reverse-engineer the stuff. Imagine that: a key piece of strategic weaponry and nobody really understands how to make it work.
The NSA charmingly refers to the Fogbank dilemma as "lost knowledge." But knowledge gets misplaced more often than you'd think. How long, for instance, would it take NASA to put another man on the moon, something we did as a matter of routine 35 years ago? When President George W. Bush called for a new moon shot five years ago, the space agency wasn't even sure it could make a Saturn V rocket anymore.
In the end, we may be lucky if the banking system is only as complicated as Fitzgerald's Hollywood, because that would mean that somewhere out there are a half-dozen men who can grasp the workings of this contraption. Let's hope they exist and that Obama finds them.
Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.
Jonathan V. Last is a columnist for the Philadelphia Inquirer. Comment by clicking here.
Previously:
12/16/08 This is bigger than Barbie
12/11/08 Creative destruction: Some businesses deserve to die and we're better for it
11/20/08 Time for perspective on election's numbers
11/13/08 Climbing back from calamity
11/03/08 Put aside candidates' faults and ponder their qualities
10/09/08 Regrettably, neither of the presidential hopefuls has a grasp on economic theory
09/22/08 Anti-abortion Democrats and global-warming Republicans are becoming increasingly important
09/09/08 On both sides, this year's political gatherings marked the start of changed strategies that have transformed the race
07/23/08 With policy shifts, Obama now seen as an ordinary pol
06/26/08 Bush failed to hold others responsible for their mistakes, and he let his admirable vice president do too much
02/18/08 GOP will unify as Obama and Clinton continue to vie
12/13/07 Fun begins as races tighten and shift
12/05/07 Iran's future: Would lower fertility rates lead to stability?
11/01/07 Nobel Prize in Economics — where Team USA still dominates the game
10/25/07 Handicapping the GOP's presidential horse race
10/11/07 Germany's Turks provide a lesson on immigration
09/13/07 British battle can offer us a perspective on casualties
09/12/07 Alas, GOP seems set to take hit in Senate
08/30/07 Europeans have supplanted backbones with capitulation
08/24/07 Politics holds the key to ensuring a healthy growth in population
08/17/07 Finessing the Democratic center
08/10/07 Woohoo! Satire seeing a revival
07/31/07 Historical model: For Obama, it's Carter
07/26/07 Baseball, apple pie, a 2nd chance
07/24/07 Harry Potter and the alchemy theory
07/06/07 Life is hard — and often short. The perils of professional wrestling
06/21/07 After Bush: Gingrich and others worry that his shortcomings could have a far-reaching effect on the GOP
03/09/07 Why the British outclass us in acting
01/23/07 Romney: Seriously great, but with baggage
12/23/06 When truth is transpicuous
12/05/06 A realistic plan: Split the country in two
11/08/06 We could easily pull out of Korea and let China have regional hegemony. But would it be the right thing?
10/24/06 The decline of revolution
10/18/06 Why the free market is king
08/07/06 Democracy, of itself, not solution to all problems
08/01/06 We get the movies we deserve
07/27/06 How long will U.S. empire last?
© 2006, The Philadelphia Inquirer. Distributed by McClatchy-Tribune Information Services.
|
|
Arnold Ahlert
Mitch Albom
Jay Ambrose
Michael Barone
Barrywood
Tony Blankley
Lori Borgman
Stratfor Briefing
Mona Charen
Linda Chavez
Richard Z. Chesnoff
Ann Coulter
Greg Crosby
Alan Douglas
Larry Elder
Suzanne Fields
Frank J. Gaffney
Bernie Goldberg
Jonah Goldberg
Julia Gorin
Jonathan Gurwitz
Paul Greenberg
Argus Hamilton
Victor Davis Hanson
Betsy Hart
Ron Hart
Nat Hentoff
Marybeth Hicks
David Horowitz
Jeff Jacoby
Renee James
Paul Johnson
Jack Kelly
Ed Koch
Ch. Krauthammer
Michael Ledeen
John Leo
David Limbaugh
Kathryn Lopez
Rich Lowry
Michelle Malkin
Jackie Mason
Ann McFeatters
Dale McFeatters
Dana Milbank
Jeanne Moos
Dick Morris
Jim Mullen
Deroy Murdock
Judge A. Napolitano
Bill O'Reilly
Kathleen Parker
Star Parker
Dennis Prager
Wesley Pruden
Tom Purcell
Sharon Randall
Robert Robb
Cokie & Steve Roberts
Heather Robinson
Pat Sajak
Debra J. Saunders
Martin Schram
Culture Shlock
David Shribman
Roger Simon
Michael Smerconish
Thomas Sowell
Ben Stein
Mark Steyn
John Stossel
Cal Thomas
Dan Thomasson
Bob Tyrrell
Ben Wattenberg
Diana West
Dave Weinbaum
George Will
Walter Williams
Byron York
ZeitGeist
Mort Zuckerman
Robert Arial
Chuck Asay
Baloo
Chip Bok
Dry Bones
Lisa Benson
John Branch
John Cole
J. D. Crowe
John Deering
Brian Duffy
Everything's Relative
Mallard Fillmore
Glenn Foden
Jake Fuller
Bob Gorrel
Joe Heller
David Hitch
Jerry Holbert
Lee Judge
Steve Kelley
Jeff Koterba
Dick Locher
Jimmy Margulies
Rick McKee
Michael Ramirez
Kevin Siers
Jeff Stahler
Ed Stein
Danna Summers
John Trever
Gary Varvel
Kirk Walters
Mr. Know-It-All
Dr. Peter Gott
GET A JOB! by Marty Nemko
Richard Lederer
Frugal Living
Tech Maven
On Nutrition
Bookmark These
Bruce Williams
|
