Another Nail in the Bank Sellout Settlement Deal Coffin

Minnesota Attorney General Lori Swanson has sent a letter to the Attorneys General of New York and Iowa (The Iowa AG is leading the negotiations) saying that any settlement that grants immunity to the banks on areas that have not been thoroughly investigated will be unacceptable to her:

In a letter sent to the attorneys general of New York and Iowa on Friday, Minnesota Attorney General Lori Swanson said that banks shouldn't be protected from liability in connection with the nationwide foreclosure settlement.

Swanson said that banks should not be released from liability for mortgage securitization, securities claims or the use of a mortgage registry known as MERS, Bloomberg News reported.

"The banks should not be released from liability for conduct that has not been investigated and is not appropriately remedied in any settlement," Swanson wrote, according to Bloomberg News.

State and federal officials are negotiating a settlement with the five largest mortgage services in the U.S. - Bank of America Corp., Wells Fargo & Co., JP Morgan Chase & Co., Citigroup Inc. and Ally Financial Inc.

I think that it has become increasingly clear to people involved with the negotiations that Iowa Attorney General Tom Miller and the Obama administration are primarily interested in shielding the banks, and creating the appearance rather than the reality of accountability for the banksters.

Note also that Swanson has some serious consumer protection cred, as she was the one who uncovered the fraudulent and self dealing behavior of the National Arbitration Forum, and forced the organization out of consumer arbitration.

I don't think that there has been an outbreak of ethics in the case of the banks, it's just that the AGs who oppose this deal realize that not only are the settlement talks a corrupt endeavor, but they are a transparently corrupt endeavor, and they don't think that they can defend it to the voters.

Another Gift from the Austerity Confidence Fairy

Thankfully, it's the UK, and not us, but this is unbelievably grim:

George Osborne's austerity programme will cut the living standards of Britain's families by more than 10% over the next three years as those on the lowest incomes suffer most from the tax increases and spending cuts designed to reduce the budget deficit.

A study from the Institute for Fiscal Studies, the UK's leading experts on the public finances, concludes that the chancellor's strategy will result in greater inequality and rising child poverty, throwing into reverse progress made in the final years of the last Labour government.

The bleak picture painted by the IFS will be used by opponents of the chancellor's austerity measures to call for a plan B to generate faster economic growth. There is likely to be further pressure on Osborne on Monday as the head of his independent commission on banking, Sir John Vickers, outlines measures for banking reform.

I'm more of a cynic than the author, Larry Elliott, economics editor of The Guardian, because I believe that part of the reason that Osborne is supporting this is because of the, "greater inequality and rising child poverty, throwing into reverse progress made in the final years of the last Labour government."

They are determined to roll back whatever minor progress occurred under Blair and Brown, and move back to where Thatcher and Major left the nation.

And once they've done that, they want to take Britain back to the Dickensian standards of the middle of the 19^th century.

And the French Are Probably the Best in the World at Nuclear Safety

But they just had an explosion at their nuclear reprocessing facility in Marcoule:

One person has been killed and four injured, one seriously, in a blast at the Marcoule nuclear site in France.

There was no risk of a radioactive leak after the blast, caused by a fire near a furnace in the Centraco radioactive waste storage site, said officials.

The owner of the southern French plant, national electricity provider EDF, said it had been "an industrial accident, not a nuclear accident".

The cause of the blast was not yet known, said the company.

This has not been a good year for nuclear power, but the idea of dismissing the recent problems with nuclear power (Japan, Virginia, and now France) as some sort of Black Swan event is not rational.

The problems, at least those in Japan and Virginia, the jury is out on Marcoule, are an artifact of old, under-designed nuclear facilities, not simply a triple witching day for nukes.

Bummer, But the Movies are a Business

A movie based on HP Lovecraft's novella, At the Mountains of Madness, has been canceled:

The film-world was thrown into a frenzy yesterday regarding Universal's cancellation of Guillermo del Toro's personal passion project, a $150 million, R-rated adaptation of HP Lovecraft's At the Mountains of Madness. We live in an era where even the once-brave Warner Bros. has gone from the sort of studio that would roll the dice on The Matrix to the kind of studio that will likely reboot/remake The Matrix, where Pixar seems content to become a sequel factory (Cars 2, Monsters Inc 2), where studios are so terrified of big-budget originality that they seem to merely be parading an never-ending stream of unwanted sequels (Percy Jackson and the Lightning Thief: The Sea Monsters), needless remakes (Total Recall), and inexplicable 'reboots' (Tomb Raider), the news was the film-news equivalent of us lefties hearing that President Obama had caved into GOP budget demands... again. There are plenty of reasons why executives are reluctant to spend blockbuster-dollars on original ideas. But the (temporary?) death of At the Mountain of Madness isn't quite representative of the end of original thought in Hollywood. But it is a good time to stop and ask why every major studio genre picture needs to cost to bloody much?

Film Blogger Scott Mendelson is right. When one considers the fact that this film would have to be almost exclusively CGI, and a decent Linux based server farm for the rendering would cost well under $50,000.00, the idea that you need spend $150M to make it is ludicrous.

After all, the 6 minute long CGI extravaganza short subject The Raven cost under $5000.00.

Simply put, this film would not make money unless it shattered box office records for the R-Rated horror genre:

The highest-grossing R-rated film of all-time is The Matrix Reloaded, at $742 million worldwide. After that, you get The Passion of the Christ ($611 million), Terminator 2: Judgment Day ($519 million), Troy ($497 million), Saving Private Ryan ($481 million), The Hangover ($467 million), The Matrix and Pretty Woman ( both $463 million), Gladiator ($457 million), The Last Samurai and 300 ( both $456 million), The Exorcist ($441 million), Terminator 3: Rise of the Machine ($433 million), The Matrix Revolutions ($427 million), Sex and the City ($411 million), and The Bodyguard ($410 million - which is arguably why that one is getting remade). That's just sixteen films in all of modern-motion picture history that have grossed $400 million or more worldwide with an R-rating. The second-highest-grossing R-rated horror film (after The Exorcist) remains Hannibal, with $351 million. I can't even think of an insanely successful R-rated supernatural horror picture off the top of my head... can you? Point being, even with the once-surefire Tom Cruise allegedly at the helm, an R-rated $150 million supernatural horror film would basically have to become the most successful supernatural R-rated horror film of all-time just to break even.

(Emphasis mine.)

Could someone out in Hollywood explain to me why every film seems to have to cost something north of $100 million?

Even with PR and distribution costs, it seems to me that this could be a $50 million movie, and given the relative cheapness of modern CGI this is very doable, and at that cost, you might clear a profit on the initial theatrical release.

H/t (unsurprisingly) Cthulhu at the Stellar Parthenon BBS.

It Looks Like I'm Not the Only One Bearish on Obama in 2012

A lot of Democrats are worried that toast in 2012:

Democrats are expressing growing alarm about President Obama’s re-election prospects and, in interviews, are openly acknowledging anxiety about the White House’s ability to strengthen the president’s standing over the next 14 months.

Elected officials and party leaders at all levels said their worries have intensified as the economy has displayed new signs of weakness. They said the likelihood of a highly competitive 2012 race is increasing as the Republican field, once dismissed by many Democrats as too inexperienced and conservative to pose a serious threat, has started narrowing to two leading candidates, Mitt Romney and Rick Perry, who have executive experience and messages built around job creation.

And in a campaign cycle in which Democrats had entertained hopes of reversing losses from last year’s midterm elections, some in the party fear that Mr. Obama’s troubles could reverberate down the ballot into Congressional, state and local races.

“In my district, the enthusiasm for him has mostly evaporated,” said Representative Peter A. DeFazio, Democrat of Oregon. “There is tremendous discontent with his direction.”

The president’s economic address last week offered a measure of solace to discouraged Democrats by employing an assertive and scrappy style that many supporters complain has been absent for the last year as he has struggled to rise above Washington gridlock. Several Democrats suggested that he watch a tape of the jobs speech over and over and use it as a guide until the election.

At it's core, the problem is that people who choose a bad something over a not-bad nothing.
.
The money quote is that, "Polling suggests that the president’s yearlong effort to reclaim the political center has so far yielded little in the way of additional support from the moderates and independents who tend to decide presidential elections."

There is another name for these voters, low information voters.  They don't tend to vote on policies, they don't vote on "changing the tone", and while they may tell pollsters that they don't like all that partisanship, they say that because they don't think what it means.

These are voters who vote on buzz, and the buzz is generated by the bases, to the benefit Reagan and Bush II, and to the detriment of Carter and Bush I.

If the phrase "Sane Republican" had not become an oxymoron, and if the Republican party were not determined to alienate Hispanic voters, he would have no chance at all.

If one is inclined to look on the brighter side, it should be noted that it would be much less politically tenable for a 'Phant to gut social security and Medicare.  (It's an "Only Nixon could go to China" thing)

Osama bin Laden Won

OK, it's the 10^th anniversary of 911, and looking back, I can draw no other conclusion.

As a result of the events of that day we are:

• Embroiled in two ruinously expensive wars, neither of which has any meaningful end in sight.
• Have no money for even the most basic infrastructure.
• Have set up a state security apparatus that is structured, and frequently functions, as the core pillar of a police state.
• Have convinced the generation after mine that the idea of a unipolar world, with US military and Hegemony is foolish.
• Has turned us into torturers.
• Has set to policies that create more terrorists.
• Has massively expanded and radicalized, the right wing.

I would suggest that anyone who hasn't read Eric Frank Russell's magnum opus Wasp, in which a man is sent to be an agent provocateur on the planet of an empire at war with Earth, and his mission is not to collect intelligence or do damage, but rather to provoke an overreaction by the authorities:

"Phew!" Mowry raised his eyebrows.

"Finally, let's consider this auto smash. We know the cause; the survivor was able to tell us before he died. He said the driver lost control at high speed while swiping at a wasp which had flown in through a window and started buzzing around his face."

"It nearly happened to me once."

Ignoring that, Wolf went on, "The weight of a wasp is under half an ounce. Compared with a human being its size is minute, its strength negligible. Its sole armament is a tiny syringe holding a drop of irritant, formic acid, and in this case it didn't even use it. Nevertheless it killed four big men and converted a large, powerful car into a heap of scrap."

………

"However," Wolf went on, "the problem becomes less formidable than it looks if we bear in mind that one man can shake a government, two men temporarily can put down an army twenty-seven thousands strong, or one small wasp can slay four comparative giants and destroy their huge machine into the bargain." He paused, watching the other for effect, continued, "Which means that by scrawling suitable words upon a wall, the right man in the right place at the right time might immobilize an armoured division with the aid of nothing more than a piece of chalk."

The country has changed, and none of these changes to our benefit, and none of them were really required, but rather the product of mindless over-reaction.

We are those drivers in that doomed car.

It's Bank Failure Friday!!!! (Much Delayed)

I didn't do anything over the past two weeks, because 2 weeks ago, there were none, and last week, I was busy getting ready for the SCA event, but there were 2 failures on the 2^nd, and 1 this past Friday.

And here they are, ordered, and numbered for the year so far.

69. Patriot Bank of Georgia,Cumming, GA
70. CreekSide Bank,Woodstock, GA
71. First National Bank of Florida,Milton, FL

Full FDIC list

So, here is the graph pr0n with last years numbers for comparison (FDIC only):



It looks like it's going to be a lot less than 2011, but it's still gonna be a really bad year.