EUROPE SAVES ITSELF

Fat finger Freddie freed from fault

All it took was a trillion dollars worth of Euros. We said it would happen…this time. It happened…this time. The bailout will likely bring about 10 years of relative peace, or call it 3 election cycles. During this period we will find out if the close call put the fear of God in the minds of European voters or if they will continue with their socialistically modified form of capitalism.

On May 7th we wrote regarding the market gyrations, “the word is, that someone at Citigroup placed an order to sell Proctor and Gamble and hit the B key instead of the M key”. Indeed, that was the word at the time. The fat finger theory has faded, to be replaced by a big question mark. Nobody knows, so let’s speculate.

It was an act of inhumanity. Once upon a time human beings decided which stocks to buy or sell and at what price. This is no longer the practice except by a few elderly people who probably don’t have cell phones yet either. Today humans set strategy, and then delegate the details to computers to carry out the strategy. To paraphrase a well known cliché, “computers do, or crash and die, but never reason why”. Computerization, which I am calling inhumanity, is rampant on both sides of the street as well as in the middle of the pavement itself. By that I mean the buying community, the selling community and the exchange are all programmed to leave it to an Intel processor to handle the actual trading.

There was a great deal of nervousness milling about, stocks had run up too fast, Greece was scaring everyone, etc. So the strategists drew lines in the sand and told their computers to take immediate action if the lines were crossed. Normal procedure, but this time there was more uniformity of opinion among the players as to where to put the line and it was a tight line. Triggers triggered triggers and down she went, faster than humans could figure out why.

That’s my speculation. It remains, as usual, for Congress to investigate and deliver the final word so that we need speculate no more.

Bob B

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PHOTOS FOR A SUNDAY

Click here for a selection of photographs that are just spectacular. It may take a little navigation to get the slide show started, nothing difficult. Make sure you view them full screen.

WASHINGTON BY THE WEEK

In the future this feature will be titled LAST WEEK. The old title was a bit too restrictive.

Week ending May 7, 2010
Monday
Obama reveals the size of our nuclear stockpile to our enemies.
Obama, as our President, sits in for us in the world wide poker game played between sovereign nations. It is a game of life and death. Our leader chooses to show his hand for all the world to see. We need a new leader.

Bloomberg to Couric – Times Square bomber may have been Obamacare protester
We all know better now. Hizzoner should have known better then.

Tuesday
Schwarzenegger ends his support for offshore oil drilling
I told you. He isn’t a Republican.

Wednesday
Osama bin Laden is in Washington, D.C.
Ahmadinejad said so, and he ought to know. He was kidding, of course. (???)

Bob Woodward is doing Barack Obama
This one is guaranteed to be a best seller. Scheduled for September release.

Yahoo News reports “Congress makes too many vague laws.”
If Yahoo thinks that’s news, it explains why their name is Yahoo.

Thursday
Al Sharpton speaks for Karl Marx
“No Social Justice Until Everything ‘Equal in Everybody’s House’.”
I presume anyone owning two cars is going to have to give one of them to someone who has no car. It’s the only path to justice, especially of the other person won’t work and save to earn one.

Friday
Unemployment comes in at 9.9% or 17.1% depending on how you look at it
If Obama wants to replicate Franklin Roosevelt he has to get higher numbers than that. FDR got the official number up to 23.2% after being in office for two years. To be fair, he had a head start. They were 18% when he took office. But he did hold them up very well. Unemployment was still 17.4% at the end of his sixth year.

Bob B

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CITIGROUP? PROCTOR & GAMBLE? OR GREECE?

What caused the market crash of May 6th?


A thousand points a minute is 11 minutes to zero. Will Armageddon start tomorrow? At the end it was “only” down 365 points. At that rate it’s almost a month to zero, so there is time to plan.

At this hour the word is that someone at Citigroup placed an order to sell Proctor and Gamble and hit the B key instead of the M key. M is an awful lot of illions and a B is a thousand times an awful lot of illions. Supposedly this was not dollars; it was the number of shares ordered to be sold. In that case we have to multiply again, this time by 63 which was more or less the price of each share, more in the morning. less in the evening.

Proctor & Gamble is one of the 30 companies in the Dow Jones market index. When P&G got slaughtered the market index sunk faster than an oil rig and everybody yelled, it’s Greece! It’s Greece! Citigroup denies the trader story. Greece is too busy to address the issue.

In any event, market panic was the knee jerk (no hyphen) reaction. Relax; Greece is not coming to America. We have headed in that direction, to be sure, but even the biggest ships can be turned around. We are not going down, not this week, not ever without a fight. Fight we will, and win we will. It is 6 months to November.

Bob B

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AMERICAN FLAG BANNED AGAIN

Students wearing OLD NAVY brand T shirts were told to take them off or face suspension because there was an emblem of the American flag on the shirts, courtesy of Bay Area News.

It is Cinco de Mayo. A day that commemorates a battle in which Mexico defeated the French Army. Although the United States was not involved, the holiday has come to be equated with U.S. invasion that came 35 years later. At one time it was a day of celebration for both Mexico and America. It has morphed into a day of celebration by Mexicans mixed with a tinge of resentment over the U.S. invasion wherein we annexed Texas.

DOES AL SHARPTON READ RANDOM THOTS?

On May 3rd we wrote

[T]here are two visions of social justice. One is of equal treatment and equal opportunity. This vision is a bedrock of American belief, the reason the United States is seen as the Land of Opportunity. The result however, is unequal outcome because people are not equal in terms of ability and application. The second vision of social justice calls for equal status, equal outcome. To achieve equal status you must take from the top and give to the bottom. This is unequal treatment. [T]his is the Marxist vision of social justice.

On May 5th Al Sharpton said

We Won’t Have True Social Justice Until Everything Is ‘Equal in Everybody’s House’

No, the Reverend did not need to read Random Thots to come up with the idea that social justice requires private property to be re-distributed until all people have been brought to equal economic status. Marx was not the first to think of it either. It is born of envy and it was envy that led Cain to kill Abel.

Bob B

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UPDATE
I am unable to embed the video of Al Sharpton’s speach. It was given in Danbury, Connecticut and may be seen on Breitbart or Naked Emperor News.

ABOUT GREECE

A high ranking official in the Greek government invited my wife and me to dine with him, a highly principled man whom I know very well. He came to greet us at a private residence on a very crowded street in central Athens. Following some pleasant conversation we emerged to find the car standing on the busy sidewalk smack in front of the door. Once we were all comfortably seated in the car, the driver charged off the sidewalk, cut off all traffic and proceeded down the other side of the street as though on the way to the proverbial fire. No one protested.

My friend sensed my astonishment. He said I have tried to get him not to drive like that, but he says he must, because I am too important. It was an unmarked car so I asked why everyone gave way without protest. The people of Athens know a government car when they see one, he replied. The restaurant was Greek casual exclusive. For an added touch the US Ambassador paid us his respects while we were there. It was in the Old city, snuggled up against the mount upon which sits the Parthenon. It was a pedestrian only zone, but no matter, when we were done the car and driver were waiting right at the front door.

We were not surprised. I thought if privilege so soon becomes expected, is it any wonder that after a few years, privilege becomes seen as a right. Add that to the list of arguments for term limits.

I found Greece to be a fun place. It is a disorganized land where no one takes the details of law very seriously. Perhaps that is why it is a fun place. A one-way street sign simply indicates which way most of the traffic will be going. A No Parking sign means you may get a ticket but it does not mean you have to pay it.

That was all before the crisis. My host of a couple years ago is now a diplomat with the European Union and a mere observer of the Grecian scene The New York Times, with all its faults, is very good at covering things like this, but to paraphrase Ronald Reagan, one should “Trust the Times, but verify, especially if you have access to inside information”. So I called and asked an open question, “What are your comments”. The essence of his response was:

Too much spending, of course.

However, it goes beyond that. It would barely qualify as hyperbole to say the government has no computers. They literally do not know how many people are on the payroll. They are ill-equipped to enforce income tax compliance because they do not know who owes what. And everyone knows they don’t know.

Typically, a very high income earner declares something, partly because he wants to support society and partly because he knows he cannot get away with declaring nothing.

Unlike the United States where much employment is with large companies, in Greece 60 percent of workers are self-employed. If you need a plumber he has a price. If you need a receipt the price is 30% more. If you want to see a doctor you must bring something known as an “envelope”. There is nothing murky about all this, it’s just how it’s done.

It looks like the New York Times got it right. My friend is not of conservative persuasion. We rarely discuss American politics, but at the conclusion of the phone call he said “I see democracy is working very well in your country, unfortunately.”

Bob B

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REALLY RANDOM

Mayor Bloomberg tells Katie Couric that the failed attempt to blow up Times Square could have been someone who did not like Obama’s health care plan. He was right of course. It could have been. It also could have been Michael Moore or some school bus driver from Denver. Why was it the Mayor’s first thought was of someone who did not like Obamacare. It sounds to me like he has been watching too much Hardball with Chris Matthews.

Speaking of Chris Matthews, the man who gets tingles up his legs for Obama, have you heard his latest? Regarding the rig accident in the Gulf of Mexico, Rush Limbaugh says it was sabotage by environmentalists but the truth is it happened because British Petroleum makes a profit. You can watch the video here.

Now that we know the problem the solution is easy, full blown Marxist socialism. No more oil companies. All drilling done by the government. Governments never generate a profit. No profit – no accidents. Simple.

Barack Obama opens the nuke conference by declassifying details of our nuclear capability. I want to play poker with this guy. He shows his hand to the other players at the outset of the game. He is a sure loser. The trouble is he’s sitting in for me at a game of life and death.

Bob B

53 HOURS AND 20 MINUTES AND SHAZZAM!!  SHAZAD IS CAUGHT!
Now that’s nice work, better than a movie. The Times Square bomber is in a taxi on the way to JFK. He’s more nervous than teenagers used to be on their first date. He knows they are on to him. (The FBI, not the teenagers). I have got to get on that plane. On the plane. In the seat, still nervous. Why aren’t they closing the door. His heart beats faster as a crew member walks up the isle towards his seat, …then passes him. Finally the door closes. A great sigh of relief as the plane begins to taxi. I made it!

Halfway to the runway the tower radios the pilot, ordering the plane back to the gate. Handcuffed. No explosion. No killing. No virgins. No freedom. No chance to try again. Just utter failure.

Kudos for our team. Good work, guys !!!

GERMANY SAVES GREECE

Euro survives, this time. Dollar strengthens, for now.

The genesis of what is now the European Union was an economic agreement between six central European nations called the European Economic Community. The primary impetus was to discourage future wars between European nations. A common currency was not part of the original plan. From that simple plan it grew to what it was six months ago then declined to what it is today.

As it grew there was hope in much of the world that the € would replace the $ as the standard for international trade. Before Greece, call it 6 months BG, this looked like an imminent possibility. Bush ran our debt sky high and Obama has set us up for eventual bankruptcy. We have become dependant upon an adversary to support our debt and they were threatening to withdraw their support. Occasionally a tourist would report a refusal to accept the greenback in their travels. Then came Greece.

It had to happen. One can spend more than ones income and get away with it for a long time, a very long time if you are a nation and can raise taxes each time the next financial crunch occurs. But if spending is not controlled, the limit of what can be extracted from the people is eventually reached and that is when the fertilizer hits the circulator.

Germany has long been the economic strength of Europe and so it will remain for the foreseeable future. Greece has been what Greece is now for many generations and so it is likely to remain for the foreseeable future. As Walter Cronkite would put it, “It is the culture, stupid!” One cannot imagine a time when Greece would need to bail out Germany. Cultures do evolve, but evolution is a very long process. Random Thots recommends The Character of Nations by Angelo Codevilla for further insights on the subject.

We are always happy to rescue a neighbor in need due to no fault of his own, We will grumble, but still rescue a neighbor whose need was a predictable consequence of irresponsible self serving behavior, ,,,once. How many times will the nations of achievers be willing to bail out the nations of perpetual under achievement is yet to be determined.

Bob B

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