
Giants Giants Giants!
To my far flung correspondent, Tom S., to Amie, to all LI NYC readers - have fun at the parade!
“I’m so bored. I hate my life.” - Britney Spears
Das Langweilige ist interessant geworden, weil das Interessante angefangen hat langweilig zu werden. – Thomas Mann
"Never for money/always for love" - The Talking Heads
Now before he was taken by the lawless Jews, who also were governed by (had their law from) the lawless serpent, he gathered all of us together and said: Before I am delivered up unto them let us sing an hymn to the Father, and so go forth to that which lieth before us. He bade us therefore make as it were a ring, holding one another's hands, and himself standing in the midst he said: Answer Amen unto me. He began, then, to sing an hymn and to say:
Glory be to thee, Father.
And we, going about in a ring, answered him: Amen.
Glory be to thee, Word: Glory be to thee, Grace. Amen.
Glory be to thee, Spirit: Glory be to thee, Holy One:
Glory be to thy glory. Amen.
We praise thee, O Father; we give thanks to thee, O Light, wherein darkness
dwelleth not. Amen.
95 Now whereas (or wherefore) we give thanks, I say:
I would be saved, and I would save. Amen.
I would be loosed, and I would loose. Amen.
I would be wounded, and I would wound. Amen.
I would be born, and I would bear. Amen.
I would eat, and I would be eaten. Amen.
I would hear, and I would be heard. Amen.
I would be thought, being wholly thought. Amen.
I would be washed, and I would wash. Amen.
Grace danceth. I would pipe; dance ye all. Amen.
I would mourn: lament ye all. Amen.
The number Eight (lit. one ogdoad) singeth praise with us. Amen.
The number Twelve danceth on high. Amen.
The Whole on high hath part in our dancing. Amen.
Whoso danceth not, knoweth not what cometh to pass. Amen.
I would flee, and I would stay. Amen.
I would adorn, and I would be adorned. Amen.
I would be united, and I would unite. Amen.
A house I have not, and I have houses. Amen.
A place I have not, and I have places. Amen.
A temple I have not, and I have temples. Amen.
A lamp am I to thee that beholdest me. Amen.
A mirror am I to thee that perceivest me. Amen.
A door am I to thee that knockest at me. Amen.
A way am I to thee a wayfarer. [amen].

“Sometimes, however, a mark is not quite prepared to accept his loss as a gain in experience and to say and do nothing about his venture. He may feel moved to complain to the police or to chase after the operators. In the terminology of the trade, the mark may squawk, beef, or come through. From the operators' point of view, this kind of behavior is bad for business. It gives the members of the mob a bad reputation with such police as have not. yet been fixed and with marks who have not yet been taken. In order to avoid this adverse publicity, an additional phase is sometimes added at the end of the play. It is called cooling the mark out After the blowoff has occurred, one of the operators stays with the mark and makes an effort to keep the anger of the mark within manageable and sensible proportions. The operator stays behind his teammates in the capacity of what might be called a cooler and exercises upon the mark the art of consolation. An attempt is made to define the situation for the mark in a way that makes it easy for him to accept the inevitable and quietly go home. The mark is given instruction in the philosophy of taking a loss.”
“In many cases, especially in America, the mark's image of himself is built up on the belief that he is a pretty shrewd person when it comes to making deals and that he is not the sort of person who is taken in by any thing. The mark’s readiness to participate in a sure thing is based on more than avarice; it is based on a feeling that he will now be able to prove to himself that he is the sort of person who can "turn afast buck." For many, this capacity for high finance comes near to being a sign of masculinity and a test of fulfilling the male role.”
“A mark's participation in a play, and his investment in it, clearly commit him in his own eyes to the proposition that he is a smart man. The process by which he comes to believe that he cannot lose is also the process by which he drops the defences and compensations that previously protected him from defeats. When the blowoff comes, the mark finds that he has no defence for not being a shrewd man. He has defined himself as a shrewd man and must face the fact that he is only another easy mark. He has defined himself as possessing a certain set of qualities and then proven to himself that he is miser ably lacking in them. This is a process of selfdestruction of the self. It is no wonder that the mark needs to be cooled out and that it is good business policy for one of the operators to stay with the mark in order to talk him into a point of view from which it is possible to accept a loss.”
“For the mark, cooling represents a process of adjustment to an impossible situation - situation arising from having defined himself in a way which the social facts come to contradict. The mark must therefore be supplied with a new set of apologies for himself, a new framework in which to see himself and judge himself. A process of redefining the self along defensible lines must be instigated and carried along; since the mark himself is frequently in too weakened a condition to do this, the cooler must initially do it for him.
One general way of handling the problem of cooling the mark out is to give the task to someone whose status relative to the mark will serve to ease the situation in some way. In formal organizations, frequently, someone who is two or three levels above the mark in line of command will do the hatchet work, on the assumption that words of consolation and redirection will have a greater power to convince if they come from high places.”
Last night, CBS' "60 Minutes" took a look at the "subprime loan crisis." You can find the full transcript here, but the following exchange between "60 Minutes" correspondent Steve Kroft and homeowner Stephanie Valdez is a highlight worth examining a bit closer; it's significant both from an economic and, more importantly, a socionomic point of view.
STEPHANIE VALDEZ: Why pay a $3,200 payment on a 1200-square-foot home? It makes no sense.
STEVE KROFT: That's what you agreed to do when you bought the house.
STEPHANIE VALDEZ: Fine. If the value is going up. But we're not going anywhere. The price or the value is going down. It makes no sense because we will never be able to refinance and get a lower payment. There's no way.
STEVE KROFT: You're saying, essentially, that you're going to stop making payments on it? You're just gonna let it go into foreclosure?
STEPHANIE VALDEZ: You know, that's the only advice we've gotten so far is walk away from the home. We don't want to do that to our credit. Why can't our mortgage company work with us?
Kevin Depew:
The issue Kroft is alluding to here is what one might call "the morality of contractual obligation." Without saying it explicitly, Kroft implies ("That's what you agreed to do when you bought the house,") that Valdez and her husband, by walking away from the house, are engaging in some vaguely immoral behavior. It's a promise. They are breaking their promise. Left dangling for the viewer to arrive at is the conclusion that people who break promises are immoral.

“What a time the worker has of it, too, inside the factory! Here the employer is absolute law-giver; he makes regulations at will, changes and adds to his codex at pleasure, and even, if he inserts the craziest stuff, the courts say to the working-man:
"You were your own master, no one forced you to agree to such a contract if you did not wish to; but now, when you have freely entered into it, you must be bound by it."
And so the working-man only gets into the bargain the mockery of the Justice of the Peace who is a bourgeois himself, and of the law which is made by the bourgeoisie. Such decisions have been given often enough. In October, 1844, the operatives of Kennedy’s mill, in Manchester, struck. Kennedy prosecuted them on the strength of a regulation placarded in the mill, that at no time more than two operatives in one room may quit work at once. And the court decided in his favour, giving the working-men the explanation cited above. And such rules as these usually are! For instance: 1. The doors are closed ten minutes after work begins, and thereafter no one is admitted until the breakfast hour; whoever is absent during this time forfeits 3d. per loom. 2. Every power-loom weaver detected absenting himself at another time, while the machinery is in motion, forfeits for each hour and each loom, 3d. Every person who leaves the room during working- hours, without obtaining permission from the overlooker, forfeits 3d. 5. Weavers who fail to supply themselves with scissors forfeit, per day, 1d. 4. All broken shuttles, brushes, oil-cans, wheels, window-panes, etc., must be paid for by the weaver. 5. No weaver to stop work without giving a week’s notice. The manufacturer may dismiss any employee without notice for bad work or improper behaviour. 6. Every operative detected speaking to another, singing or whistling, will be fined 6d.; for leaving his place during working-hours, 6d.”
“Even when Lincoln was advocating free labor, it was a nostalgic idea. As early as 1866, 60 percent of people worked for other people. Now, it’s 90-something percent. Then, of course, they worked in small units; it wasn’t the full-blown factory. But sure, Lincoln’s vision was at variance with the imperatives of the economy and with the necessities of the industrializing elites who came to power after the war. And then there was the railroad—and that changed everything….
…
Still, the free-labor ideal survives in farming as propaganda. Preserving the tiny number of "family farms" is a justification put forward by the farm lobby. The Homestead Act was put forth by the Republicans as a supposed cure for the class structure congealed by industrialism. The idea was that the eastern factory laborer would leave the factory behind for free land in the west. But that’s not the way it worked out. Why? Because the land was not free—$1,500 was the minimum needed to set up a farm as early as the 1840s. And that was three years pay for the skilled factory worker of 1900! Small farms weren't economically viable. So it wasn’t the factory laborer who went to the farm, but the factory itself. Women’s labor, child labor, seasonal labor—all the aspects of wage labor that the farm was supposed to cure became a part of farm life. That was a bitter social turn. There was no escape from industrial capitalism.”
Q: Now that the mills are gone, do you think Carnegie has a lasting local influence other than the libraries and museums?
A: I did not get into a cab or have a conversation at a hotel when I didn't get a response -- a lively response -- after telling people why I was in town. Everybody had a story about Carnegie, and very few stories put him in a good light. He moved to New York in the 1870s and died in 1919. But his presence still seems to haunt the city.
Is that because of the famous 1892 Homestead Strike? Carnegie blamed that on his business partner, H.C. Frick.
Well, reading the local papers on microfilm, I discovered that while the rest of the world might have been surprised by Homestead, Pittsburghers weren't. This wasn't the first time he'd brought in the Pinkertons -- he'd done the same damn thing at [Braddock's] Edgar Thomson works. Homestead followed a script he'd already written.
Still, Carnegie had written articles about respecting the working man. And previously, he'd been way out in front negotiating with unions. So workers weren't just angry when he brought in the Pinkertons: They felt betrayed.”
… by definition, there are classes only in a society that is hierarchized to some degree, and under whatever form that takes. To be conscious of itself, for a class, means to recognize at what social level it finds itself, and consequently to represent itself by relation to what kind of privileges, what rights, what advantages are measured out to these levels and that hierarchy is determined. Every representation of class implies a double judgment of value: the estimation of the most important good or goods and the most appreciated in the society considered – the estimation of the degree to which it is permitted to the members of the class to satisfy the needs that relate to them….
Now lets seek what are common to all these references [to different supreme goods in different societies], and if it is possible to express that whole set of judgment on the value of diverse activities and goods by means of one general formula. Whatever the type of society that we consider, the ideal, the supreme good, is without doubt a specific form of social life, but it is, at the same time, the most intense social life that one can imagine (se représenter). »
“Personal Spending. The rule for a prudent individual is simple: Don't spend more than you make. For a long time, the U.S. economy obeyed that rule. As far back as the 1960s, personal spending, adjusted for inflation, has basically tracked the overall growth of the economy, as measured by gross domestic product. Sometimes consumers would get ahead of the economy for a few years, and sometimes fall behind, but never for very long.
That pattern changed in the 1990s. As of the third quarter of 2007, the 10-year growth rate for consumption was 3.6%, vs. GDP growth for the same period of 2.9%. This difference represents an enormous gap. If consumer spending had tracked the overall economy over the past decade as it has in the past, Americans today would be spending about $600 billion less a year. The extra spending has amounted to a total of about $3 trillion since 2001.
…
Consumer Lending. The past 10 years will go down as one of the greatest consumer-lending sprees ever. Adjusted for inflation, consumer debt—including mortgages—rose an average 7.5% per year since 1997, far faster than the 4.2% rate of the previous 10 years. The last time debt rose so fast was the 1960s, as the postwar generation bought homes and autos. If Americans had kept borrowing at their pre-1997 pace, they would have had about $3 trillion less in debt.
The extra debt also represents a formidable obstacle for banks and other financial institutions that might want to lend more to consumers. "Going forward, we're not going to see this credit-driven growth," says Alistair Milne, a professor and banking expert at City University in London. "Banks are saying, 'we have to be more careful here.'"
…
Corporate Earnings. Yes, there's been a profit boom in recent years. Corporate earnings, as measured by government statisticians, have averaged 8% of GDP over the past decade, up from a low of 6.5% in the early '90s. That has helped propel stocks upward.
But here's an unfortunate truth—the profit surge has been mainly in one area, financial services. Financial institutions have benefited from the consumer credit boom, the proliferation of new financial instruments, and relatively low rates. By contrast, the earnings of nonfinancial companies over the past decade have averaged about 5.3% of GDP, about the same since the mid-1980s. There are few signs of any acceleration, even after years of restructuring. “

Herzen's spiritual shipwreck, the profound scepticism and pessimism to which he fell prey after 1848, was the shipwreck of the bourgeois illusions of socialism. Herzen's spiritual drama was a product and reflection of that epoch in world history when the revolutionariness of the bourgeois democracy was already passing away (in Europe), and the revolutionariness of the socialist proletariat had not yet ripened. This is something the Russian liberal knights of verbal incontinence, who are now trying to cover up their own counter-revolutionariness by florid phrases about Herzen's scepticism, have not understood and cannot understand. With these knights, who betrayed the Russian Revolution of 1905, and have even forgotten to think of the great calling of a revolutionary, scepticism is a form of transition from democracy to liberalism to that servile, vile, infamous and brutal liberalism which shot down the workers in 1848, restored shattered thrones, applauded Napoleon III and which Herzen cursed, unable to understand its class nature.
“Being proved wrong has made them [the revolutionaries] cocky. They’re more certain than ever that the people are natural republicans waiting to be lead out of bondage. But the people are more interested in potatoes than freedom. The people think equality means everyone should be oppressed equally. They love authority. They’re suspicious of talent. They want a government to govern for them and not against them. To govern themselves doesn’t enter their heads. We thought we could educate the people like a horse doctor blowing a pill into a horse. We thought we could set the pace for social change. The emperors did more than keep their thrones, they pushed our faces into the wreck of our belief in the revolutionary instincts of the people.”
“It is this pattern that the past, which we want now to leave behind, has followed. The forms, aspects, and rites have changed but the essence has remained the same. He who bowed his head before a Capuchin friar bearing a cross is no different from the man who bows his head to a court decision no matter how absurd it is.”

“I doubt there’s a human being on earth who hasn’t benefited from the opportunity to trade freely with his neighbors. Imagine what your life would be like if you had to grow your own food, make your own clothes and rely on your grandmother’s home remedies for health care. Access to a trained physician might reduce the demand for grandma’s home remedies, but — especially at her age — she’s still got plenty of reason to be thankful for having a doctor.”
“All economists know that when American jobs are outsourced, Americans as a group are net winners. What we lose through lower wages is more than offset by what we gain through lower prices. In other words, the winners can more than afford to compensate the losers. Does that mean they ought to? Does it create a moral mandate for the taxpayer-subsidized retraining programs proposed by Mr. McCain and Mr. Romney?
Um, no. Even if you’ve just lost your job, there’s something fundamentally churlish about blaming the very phenomenon that’s elevated you above the subsistence level since the day you were born. If the world owes you compensation for enduring the downside of trade, what do you owe the world for enjoying the upside?”
“Ordinary people in many parts of the world, and not just in the US, worry about trade because they are afraid that jobs lost to imports will not be counterbalanced by jobs gained through exports. They worry that there will be fewer economic opportunities for them and their children. They worry that their wages or working conditions will be pushed downward through competition with even more vulnerable, desperate workers in other countries. They are right to worry about these things. Such miseries are not destined to happen, but they cannot be ruled out either.
Except in standard economic models which begin with the assumption that increases in imports automatically call forth equally valued increases in exports. If trade balances on the margin we live in the happy world of comparative advantage, and it is indeed true, as Landsburg says, that “when American jobs are outsourced, Americans as a group are net winners.” But the assumption that trade balances at the margin is simply a modeling convenience, something that enables Landsburg to regale his students with blackboards full of elegant diagrams and equations. It is not grounded in real experience, and especially not the experience of the US economy since the 1970s.”
“On this day – recounted an eyewitness – already rather early, I observed in Herrenstrasse, on which there were State office buildings, individual workers were standing around, and a giant man, with a jacket, which was covered with patches, that was obviously neither his size nor made for him, moved in the direction of the buildings, with his dirty cap pressed boldly down over his eyes, with balled up fists, flashing glances and a backwards bent posture, all ready for blows, as if going into battle, with giant steps, whilst keeping suspiciously to the middle of the street. In his rear pockets he must have carried a mass of stones as ammunition, because his jacket was stiff on his back, and visibly he had to force himself not to be pulled backwards by the weight of his pockets. At his side hurriedly humped along, in order to keep up with his steps, a small, weighed down, dirty and rather aged man with a long open coat with long arms. He was loaded, each pocket stood out, and the hind coat pockets almost hit his calves…” (Ernest Victor Zenker, 112).
Krähwinkler citizens, among whom are the Night watchman, Pemperl and Schabenfellner sit around a big table and drink)
…
“Klaus(coming to the middle of the stage). Good evening, my fellow citizens.
Nightwatchman (whispers to Pemperl). And here comes my very point!
Pemperl (to the nightwatchman). He’s a little round to be a point.
Klaus. I want just a little drinky, but you all don’t mind me – drink up!
Night watchman. Well, we are free to do so.
Klaus. Free? You should not use such brutal expressions. I am from the state office, and we don’t like it, that men are free.
Pemperl(to the group), Let’s go out in the garden – it is pleasanter in the free air.
Klaus. If only it wasn’t so free, that air – I’m staying here.
Pemperl. Primo, then we won’t have you breathing down our necks. (To the Night watchman) Come on, Mister!”
“It is a singular irony of history that Herzen, who wanted individual liberty more than happiness, or efficiency, or justice, who denounced organized planning, economic centralization, governmental authority, because it might curtail the individual’s capacity for the free play of fantasy, for unlimited depth and variety of personal life within a wide, rich, ‘open’ social milieu, who hated the Germans (and in particular the ‘Russian’ Germans and German Russians0 of St. Petersburg because their slavery was not (as in Russia or Italy) arithmetical, that is, reluctant submission to the numerically superior forces of reaction, but algebraical, that is, part of their ‘inner formula’ – the essence of their being – that Herzen, in virtue of a casual phrase patronizingly dropped by Lenin, should today find himself in the holy of holies of the Soviet pantheon, placed there by a government the genesis of which he understood better and feared more deeply than Dostoevsky, and whose words and acts are a continuous insult to all that he believed and was.” (Russian Thinkers, 104)
An interesting variable in U.S. elections is that the top 20 % does most of the talking - the media, the politicians, the "experts...