Remora

LI recommends this article in the Sunday Times:
A Guardian of Jobs or a "Reverse Robin Hood"? by Leslie Wayne

Since the question of bias in the press has been a hot button issue (which is one of those pundit phrases that make less and less sense as they are repeated more and more -- what, exactly, is a hot button? Rather, the issue has become a diacritical button issue -- like the period key, or the comma key, it has become a sustaining, semantic blank, functioning to convey an ideological payload hither and yon, to much yapping from the examiners of yap, aka media critics), it should be pointed out that bias, without which that title would make no sense, given its tilt towards the irresistable phrase, reverse Robin Hood, is inseparable from analysis, here.

Anyway, the analysis is on point. While much fuss and tossing of teathers went into forcing CEOs to sign off on their balance sheets, the Export-Import bank was quietly expanded. The article focuses on just what the Ex-Imlax Bank does. In the past, we dilated about another ridiculous tool of government finance: OPIC. The Ex-Lax is bigger, and more pernicious. Here's a graf:

"More fundamentally, there are questions about why the bank exists at all. Less than 1 percent of all American exports receive Export-Import financing, which comes in the form of direct loans, loan guarantees or export credit insurance. The bulk of Export-Import's benefits go to a small number of large companies that are sophisticated enough to get financing on their own: Boeing, Halliburton, General Electric, Northrop Grumman, Lucent Technologies, ChevronTexaco, Caterpillar and Dell Computer, among others."

More sickening stuff:

"Commercial banks, meanwhile, love Export-Import loan guarantees because they turn corporate loans for business in risky places into risk-free loans. If a corporate borrower halts payments on an Export-Import backed loan, the federal government must step in and pay it off. The bank claims a default rate of less than 2 percent.American exporters love it even more. With an Export-Import loan guarantee, they can borrow money from banks at lower rates and more favorable terms than usual. And if they get into a jam overseas, the Export-Import bank can be a powerful ally. "You've got the full weight of our U.S. embassy, our ambassador, the Treasury Department here and overseas, the State Department, all coming in," said Mr. Rice at the export coalition.

On the other hand, small businesses, which often need the help more than large companies, get short shrift from the bank, despite Congressional pressure to change that practice. Only 18 percent of the bank's financing last year went to small business, down from 21 percent in 1998."