Raisa

So let’s get this straight. David Cameron, the British Prime Minister, has not been riding this horse, or so his speaker affirmed yesterday. But today, at the EURO summit about the End of the World, Cameron gives another press conference to rectify his overworked speaker and to confirm that he, in fact, did ride said horse, whose name is, or more precisely was Raisa.

David Cameron, British Prime Minister

Raisa, the horse

Yes, really?

Well he got the horse from Charlie Brooks. And "Charlie is a friend since 30 years," "more than 30 years." And "Charlie is a good friend," and furthermore a "neighbor in the constituency," they "live only a few miles apart". Aahpaaht. But he hasn't "been riding the horse since the elections of 2010." Before the elections, however, yes he did go riding with Charlie. Charlie "has a number of different horses" (who hasn't), and one of them is, or was, Raisa, a former police horse, which he did ride, and "we are all very sorry to hear" "that Raisa is no longer with us," and he doesn't think "he'll be getting back into the saddle anytime soon," because his life "as a prime minister is so busy."

Pure speculation, or Troops of Truth (2) (reposted)

Remember our not-so-prescient words from a recent post:

"And the press of the Free World is eating this up as if it were Yorkshire pudding."

Our words, or something else, triggered Arthur Brisbane, public editor of the NYT, to wonder publicly whether the press should try to sort out the truth, for a change.

And he gives an example:

On the campaign trail, Mitt Romney often says President Obama has made speeches “apologizing for America,” a phrase to which Paul Krugman objected in a December 23 column arguing that politics has advanced to the “post-truth” stage.

As an Op-Ed columnist, Mr. Krugman clearly has the freedom to call out what he thinks is a lie. My question for readers is: should news reporters do the same?

If so, then perhaps the next time Mr. Romney says the president has a habit of apologizing for his country, the reporter should insert a paragraph saying, more or less:

“The president has never used the word ‘apologize’ in a speech about U.S. policy or history. Any assertion that he has apologized for U.S. actions rests on a misleading interpretation of the president’s words.”

Yes man, great. Politics went off the cliff because politicians could be sure that the press would eat their Yorkshire pudding all the time, reporting anything with hands-off  neutrality, then seeking middle ground somewhere between facts and absurdity. This should stop. Yes, press of the Free World, this should stop, so stop this and join the depleted ranks of the Troops of Truth, of which this blog is a shining example (spell checker still does not know the word "blog"). And whenever Romney and his ilk say something, check first whether there is some factual basis to it. Like in: "I want to be your President because I know how to strap my dog to the roof of my car when I go on family vacation to Canada, and the dog's name is/was Blondi." This statement is well-anchored in facts, and it can pass your editorial muster without any additional comments, even if he got the name wrong, since the real name of his dog was Seamus, there is no need for editorial commenting, since the dog's name is auxiliary to the fact of dog-strapping (flatus vocis)...



...even though it was the name of Hitler's dog. Halt, hold on, which government agency did I intend to shut down, no, that wasn't Romney (Romney didn't even get it for a slpit second, as he was suggesting, helpfully: "The EPA?"), we get confused here, perhaps ... Anyhow, this post is already too long, so we stop now.

PS: 80% of the Republican attacks on Obama are just insinuations. "Obama want to bring the US under UN goverment," "Obama wants to introduce European-style socialism," (no socialism here, by the way) etc. Did you realize that? Just insinuations. Perry, where are you when we need you?

Why banks have become dysfunctional

James Saft, the Reuters' columnist, has a piece in the IHT about a talk by Andrew Haldane, the executive director for financial stability of the Bank of England. Once in a while, somebody writes a few lines we ("we") really should read, and here they are:

The purchaser of a portfolio of global banking stocks in the early 1990s is today sitting on a real loss. So who exactly is it extracting value from today's banks? The answer is twofold: shorter-term investors and bank management. Because banks have, over the past two centuries, migrated to a limited liability, shareholder-owned model, there is a natural tendency for owners to make riskier loans and trades and to increase the bank's assets.

Andrew Haldane

A bigger, riskier balance sheet with more leverage produces terribly volatile results, with many good-size profits mixed in with the occasional catastrophic loss. But with limited liability, executives and shareholders can simply walk away from the smoking wreckage, having pocketed the gains when times were good.

Bank of England

Banks then have a built-in incentive always to increase leverage, and the tyranny of quarterly earnings places huge pressure on them to enlarge their asset books, even if there is no one creditworthy left to lend to.
That was one of the main causes of the subprime episode. Faced with the prospect of not increasing earnings, banks simply began to manufacture borrowers where none really should have existed.
The situation is exacerbated by the fact that debt is tax-deductible while equity is not, giving banks even more incentive to borrow. While the typical leverage of an American or British bank in 1900 was five or six times equity, that figure peaked at about 30 times before the crisis, and is higher still now for many euro zone banks.
Bank bondholders have been unwilling to play their role as vigilantes, in part because they quite rightly expect to be bailed out by governments if banks go to the wall.
In the past 30 years, many banks have moved to measure their performance -and set their bonuses -on the basis of a measure called return on equity, which measures profit compared with equity. What return on equity does not adjust for, of course, is risk, and it looks as if return-on-equity targets in a leverage driven business have produced a lot of risk in the form of extreme bank earnings volatility, and badly compensated volatility at that.

PS: Conspiracy, conspiracy. If you search for James Saft on IHT's web site, it comes back with " 'James Saft' did not match any documents under Past 30 Days." If you search for the column's title "Why banks take such huge risks," it comes back with all sorts of articles (about Berlusconi, among others), but not with Saft's column. However, if your search for the same title on Google, it comes back with a mirror site of the column as first result. (Lol)

Let's bring back the gold standard (Dirk) (reposted)

Rapture recap: fooled again?

Babette Bienpensant at rapture hour

We've asked Babette Bienpensant, Metaphysical University's rapture expert, to share her post rapture thoughts with us. Here is her reaction:

"Atheists and other rationality addicts have been quick to exploit certain shortcomings of yesterday's events and to prematurely throw the baby out with the winds of change. Yet most real Americans will agree that we have witnessed a rapture success of numerous dimensions, including a volcano eruption in Island, an earthquake in the gay-infested San Francisco Bay area, and many other occurrences of medium to high significance. We at the Metaphysical University are proud of our contribution and excited about our ability to again split the infinitive and share our thoughts in unprecedented ways."

Dominique Strauss-Kahn stark naked (2)

Q: So, what does it all mean?
A: The end of Strauss-Kahn's (DSK) career, of course, and more.
Q: He could deny it; then it's his word against hers.
A: Well, first, he left his cell-phone behind, so he fled the scene. Equally important, a famous person is always guilty until proven innocent, especially in America.
Q: Could it be a conspiracy?
A: Sure, as always. He was the most important threat to Sarkozy's bid for a second term, so Sarkozy could have tried to engineer the whole thing. However...
Q: ...however...?
A: It would have been difficult for Sarkozy to do so, even with the French secret services at his disposal. It's unlikely the maid was an agent, since she was working at the hotel on a permanent basis (presumably), and it was unforeseeable that DSK would stay there...well, who knows, changing my mind, perhaps he's always staying there, in the same suite, in which case they actually could have planted her there, perhaps paying off the service manager to have her assigned to this suite (soon to be dubbed the Kahn suite). And so on and so forth.
Q: But the cell-phone?
A: Élémentaire, cher Watson. DSK will deny this is his phone, but the records, oh là là, the records, the most beautiful cell-phone records in the history of the French secret services.
Q: We're in full conspiracy mode now?
A: I'd say 60-40.
Q: Which way?
A: Don't know yet.
Q: Will the Euro collapse?
A: It's in the cards. Expect a weakening of the Euro tomorrow, just for starters.
Q: Why?
A: Sarkozy's ratings are the lowest in the history of the French presidency. He's unlikely to get re-elected, even if the whole thing was his conspiracy. So it's either a socialist next time (to our American readers: DSK was a member of the Socialist Party, no, the SOCIALIST party), but, with the exception of DSK himself, all other contenders are unreconstructed dinosaurs, real tax-and-spend ideologues, all of them, or it's Marine LePen from the Front National. France's standing as a debtor will be weakened, and the markets might fear its collapse, comparable with other members of the Club Med.
Q: This could mean the end of the Euro.
A: Yes, if France does not get its act together, the Euro will collapse.
Q: How about the extreme right?
A: Yes, good question. Marine LePen, the new, charming leader of the Front National is collecting followers left and right with her compassionate xenophobia and an economic program from the dark ages.
Q: How so?
A: Her economic program calls for France leaving the Euro, and for erecting high import barriers to save domestic jobs. To do that, France would have to leave the European Union.
Q: Is that going to happen?
A: Possibly not, since the French farmers would lose their European subsidies, and so on. But I would not rule out a debt spiral triggered by weakening French credit scores (rising interest rates on French sovereign debt raise the deficit, etc), which leads to France's exit from the Euro, the end of the Euro, the end of the European Union...
Q: The end of the world as we know it?
A: It looks bad. But 500 years from now, the only thing we will remember is that the 3rd world war was caused by a man stepping out of his bath room stark naked.

Mein lieber Freiherr: Baron Guttenberg in trouble

FF has held the Baron in high esteem, raving about him as the Minister of good looks, misunderstood by 12 year old Japanese females who own more than 5 Vuitton bags, and crushed upon by Helen Thomas, the ex-doyenne of the White House press corps. A man with either 9 or 10 first names, and a direct descendant of Bismarck at his heterosexual arm? The man to beat as successor to Chancellor Merkel?  And now what?

The baron...	...with his wife, a née Bismarck
After he met...	...Helen Thomas

Isn't he also a brilliant academic, with a Ph.D. thesis of the highest caliber, raking in a summa cum laude, the highest Ph.D. honor in Germany?  Well, "there's the rub." (Shakespeare, Hamlet's soliloquy) He's accused of plagiarizing. By our own standards, it's borderline, but the German standards rise by the minute, as more and more phrases surface that he has obviously copied without mentioning the source. There's the rub. GOTCHA. He's still good-looking, but...

Can we still play "Doctor"?

Destination: Kazakhstan

We've posted his censorship alert 6 hours ago, but nobody cares. Visits from Le Monde or any other of the elite French newspapers...forget it. Nobody is interested. Nothing but the usual, lechery visits of our site for our naked girls from...(don't ask).

I informed Sacha about this unfortunate turn of events (is it a "turn," actually?), and he decided to let it go, and leave the country, leave France, leave the old, tired continent, and look for uncensored pastures elsewhere. And there he is, on his way to Kazakhstan---the only transcontinental destination available at this late hour by train (8:36pm, the train is late, of course), pictured above. Fortunately, it's a non-stop ride that will take only 6 days and 6 minutes.

Bye bye, Sacha, we will miss you!

Keep your powder dry, especially in Kazakhstan! And send us a picture of the rotating golden statue of President Breftzerk. And quit smoking at an appropriate moment in the future---especially cigarettes that look suspiciously like something more.

-"Uncensored pastures, that sounds like a flip from the washed-up scriptwriter."
-"Come to think of it, we haven't heard from him in a long time."
-"Well, he was supposed to have disappeared in the Mediterranean, off Cannes."
-"Perhaps he is in Kazakhstan now, and works as a poet for President Breftzerk."