The Fat Lady Has Sung

In his most recent article, The Fat Lady Has Sung Tom Friedman tells us how a community in California is charging $300 for an emergency 911 call. He thinks this is the future due to the 'lean years' we will be experiencing due to our previous decades of excess. So, 911 calls for emergencies were excesses we all enjoyed?

No mention of the drastic shift in the tax burden away from corporations and the wealthy in recent decades. Nor the ongoing abuse of American by insurance, banking and energy companies. There has been excess, but it hasn't been by the vast majority of Americans. But (to use another trite phrase) we'll see who has to pay the piper. At this point it looks like the abuse will go on, and the middle class will continue to get the squeeze. Particularly if people read and believe the nonsense of people like Mr. Friedman.

This Is Not a Column

Mr. Friedman, in his recent column This Is Not a Test. This Is Not a Test. Aims squarely for the side of a barn, and misses. He wishes President Obama (ah, I still like the sound of that) would get on with fixing the banking system, and stop fooling around with all these other side issues. I presume this means health care, Iraq, Iran, education, infrastructure, etc.

But fixing the banking system is obviously not so simple. Most US banks are insolvent (i.e. have more debts than assets). In other contexts, this is called 'bankrupt'. Except some of these banks may be really bankrupt. We're talking trillions of dollars in the hole. International banks are in similar situations. And many of these banks are 'international' institutions. How does one deal with this, without risking shoveling billions of dollars out of the US and to foreign enities? Mr. F was a bit light on suggestions.

Well, at least Mr. F is posting harmless drivel these days, after years of cheerleading everything from rampant globalism to the war in Iraq.

Start Up the Risk-Takers

Let's move away from H1-B visas and rampant internationalism, and back to the subject at hand: the cluelessness of Mr. Friedman. A recent column (Start Up the Risk-Takers) talks about how the government is pouring billions into 'losers' like GM (and AIG and Citi?) whereas it should be helping to 'nurture the next Google'.

Well, the government has spent many billions on research, and continues to. Many start-ups are still funded by research grants, including the SBIR program. But the real problem today isn't with the government, but with the private sector. The IPO market has been broken for at least a decade. This leaves start-ups (and their investors) with no way to cash out. This lack of reward has been devestating to the technology business as we know it.

Why is the IPO market broken? There are many theories on this, but my best guess is that it was easier for Wall Street to sell Credit Default Swaps than to help place the offerings for small companies. Maybe we'll return to the Good Old Days where bankers were in the business of actually investing in companies, rather than simply moving money from one account to another. It's so quaint and old fashioned. But it might be just what this country needs.

No More H1-B Abuse on Wall Street

From Forbes: Foreign Workers Banned From Wall Street Too bad the High Tech world still have to live with this abusive system.

The Open-Door Bailout

Here goes Mr. F. with the H1-B visa stuff again ( The Open-Door Bailout ) and his quasi-racist caricature of 'smart, hard working Indians'. They are actually mostly just young and willing to work for much less money than Americans. Really, is this guy being paid by the electronics industry to lobby to help further drive down wages in this industry? And all this as unemployment is spiking in the US with IBM and others laying off thousands. I don't oppose immigration, especially of skilled and educated wokers, but this is about as dumb as it gets. Unless you are indeed a shill for the American electronics industry.

500,000 Strong

I guess I should have done a Google before starting this blog. Googling "Thomas Friedman idiot" yields at least a half a million hits. To be fair, maybe all the 'idiots' don't refer to Mr. Friedman. Must all of them on the first page do ...

Abandon all hope

In today's column TF searches Davos (perhaps lamp in hand like Diogenes) looking for The Man with The Plan (Elvis Has Left the Mountain). He concludes that we must all suffer for our sins. Sorry, not me bub. I neither bought nor sold a subprime mortgage nor a derivative thereof. I agree that someone needs to suffer some pain here, but it shouldn't be me or most of the people I know.

In a further testament to poor judgement, TF mentions his association with Indian outsourcer and fraudster B. Raju. He only speculates on how Mr. Raju helped start India's first 911 system. How could such a good man steal $1B (or more) of other people's money? Hint: it's not jus teasy, its smart to spend a few bucks on P.R. like this of you are a crook. Ask Mike Milken and Mother Theresa.