Remora
The Justice department scored another smashing triumph over that unnamed colluder of all terrorisms, your constitutional rights, today. According to the NYT, Judges Ralph B. Guy of the United States Court of Appeals for the Sixth Circuit; Edward Leavy of the Court of Appeals for the Ninth Circuit; and Laurence H. Silberman of the Court of Appeals for the District of Columbia Circuit, who were all appointed by Chief Justice William H. Rehnquist of the Supreme Court and make up an entity grandiosely called the United States Foreign Intelligence Surveillance Court of Review, overturned the first ruling against the government's wiretap request in an 'intelligence' investigation ever by a special secret lower court, which bears the bogus moniker of Foreign Intelligence Surveillance Act Court.
Now, LI's question is, how did these Kangaroo Courts come into existence? We are always ready, on this site, to bash Bush. But it turns out the Bush Justice department is merely magnifying trends that started in the previous administration, with the US PATRIOT act merely the enhanced, special effects version of Clinton's own anti-terrorism legislation. There's a fascinating review of the Kangaroo Intelligence Malarky courts by Patrick Poole here. The Courts were instituted under the Ford administration. Ford was, apparently, terribly afraid that the intelligence infrastructure was being hurt by the Church committee. In Poole's words:
"The FISA bill was a product of closed-door negotiations lasting several months between legislators and the Justice Department. Senator Edward Kennedy (D-MA), who had attempted to regulate the power of warrantless surveillance in four different sessions, sponsored the FISA legislation. The FISC concept was a compromise between legislators who wanted the FBI and National Security Agency (NSA), the only two agencies affected by the FISA statute, to follow the standard procedure for obtaining a court order required in criminal investigations and legislators. The federal agencies believed that they should be completely unfettered in conducting their foreign intelligence surveillance work inside US borders. Hence, the FISC was born."
The seventies was a regular cauldron of agencies being hatched to crawl across the American landscape in search of rights to devour. The orthodox historical account is that this was the decade in which the system of civil rights violations was unravelled, via the Church committee and several pieces of legislation mandating intelligence agencies to spill the secrets to selected congressional committees. LI has read several accounts of the era, and none mentioned FISC.
Poole, however, shows that FISC is not a monster summoned from the deep by Ashcroft in all of his evil. Rather, since the end of the Cold War -- during, that is, the administration of Clinton -- FISC went into overtime, ruling on twice the number of cases that were ruled on in Reagan's era. As always, the secret growth of some malign habit in one administration gets carried over to the next administration, regardless of party, to metastasize among the flags and desks. As for the vaunted independence of the judiciary -- a concept that can be disposed of only at the expense of all democratic processes -- forget about it! Yesterday's news! Montesquieu and all the rest of those guy never faced "pure evil," as we now like to call our opponents. Ah yes, "pure evil" calls for a whole bunch of special whoopass. So we go to FISC, which has the rigidity and integrity and independence of a wet strand of pasta. The reason FISC hit the news today was that the court, for the first time, questioned the nature of a case. That is, they decided that the over-ride of our rights in some "intelligence" case was really a criminal case. So the FISC appeals court was duly convened, and of course they trashed the idea that there are any rights that the Justice Department can't take away from us, in the name of National Security.
Where are all those Orwellites -- the Hitches and such, who are using Orwell as a prop to support an unjustifiable and unprovoked war? Perhaps they better come out of the corners. But of course -- they are too busy doing battle with such dangers to the republic, and all of Western Civ, as Susan Sontag. A few thousand dark skinned individuals being stripped of their rights by secret courts at the discretion of the Justice department doesn't really register on the list of current dangers.
Wednesday, November 20, 2002
Monday, November 18, 2002
Remora
Out of the American mangle
The poor you don't need to have with you always. But if you do, and you give them credit (only 19.9% compounded monthly!), why, make their life a living hell for a generation. That was, and is, the message and substance of the bankruptcy "reform" act that died, again, in the Congress this week. Here's the Friday NYT:
"With a long-stalled bill to toughen bankruptcy laws declared dead today in Congress because of abortion politics, Senate Democrats and House Republicans were left to blame each other for the collapse of a measure that otherwise had broad bipartisan support and was championed by powerful corporate lobbyists."
The New York Times is long on the Homeric epithet -- you know, those things like "wine dark sea", or "swift footed Achilles", that fill in rhythmic spaces in the epic. The 'broad bipartisan support" and "championed by powerful corporate lobbyists" is the Times standard description of the bankruptcy act. LI would suggest, perhaps, corrupt enforcement of usurious practices similar in kind to that practiced by your average loan shark," but maybe the rhythm is off. What do you think?
LI has written about that undead bill before -- don't worry, it will be back. It was killed this time due to the ineffable mysteries of legislation: it got caught in a pr abortion rights -- right to life crossfire. LI has gone into the penetralia of the bill once too often before -- the way it penalizes the working class in extraordinary ways, the way it privileges paying back credit card debt over, say, paying child support, the way it sets up one more obstacle to blue collar redemption in an age in which every clintonoid politician tells us that we have to promote "flexible" job markets.
Open Secrets has a nice little summary of the issue and the parties in play. Here's their abridged version of what the legislation is about:
HOW THE INTEREST GROUPS SEE IT
Banks, credit card companies and credit unions have been leading the drive to rewrite of the nation�s bankruptcy laws. The American Financial Services Association, the trade group that represents the major credit card companies, joined other financial industry trade associations, Visa and Mastercard in 1998 to form the National Consumer Bankruptcy Coalition. The coalition has been the leading voice in favor of bankruptcy reform, contending that more than 30 percent of those filing bankruptcy have the ability to repay significant portions of their debts. But the financial sector isn�t the only group lobbying on this issue. Gambling interests, including some of Las Vegas� biggest casinos, also are pushing for a new bankruptcy law, according to their lobbying filings. Car dealers, retail stores and even entertainment companies also have weighed in on the issue, mostly in support of reform.
Consumer groups, including the Consumer Federation of America and Public Citizen, are lobbying against the bill. They contend Congress should crack down on the financial companies, which they criticize for handing out credit cards and credit lines indiscriminately. Additionally, they contend the legislation is too far-reaching and could ultimately do more harm to indebted Americans than limit fraud and abuse.
As things go in America, there is, of course, another story about credit -- its extension and forgiveness -- that clues us in to the central moral of our skewed times. For the slackers and the lags that gamble and renege, that buy their fancy cars and thumb their noses at GM, well, their hatefulness -- and we know how bad bad bad they are -- could be washed as white as snow if only they were , well, a little higher in the food chain. There, the terms of the loan are reversed. There's a nice story about the unpaid and forgiven loans of CEOs and their immediate underlings, and the board members that "govern" them, in Business 2.0 -- happily coinciding with the vote on the the credit card company wish list act. Here's the core graf:
"Roughly three-quarters of the nation's top 1,500 companies -- 1,133, to be precise -- have disclosed loans to insiders in recent regulatory filings, according to a study due to be published in November by the Corporate Library, a firm based in Portland, Maine, that analyzes corporate data and advocates greater accountability to shareholders. Of the companies that disclosed loans, 510 made them for the purchase of stock, for a handful of other uses such as housing and tax payments, or for purposes that weren't specified at all. The average loan was about $5.5 million."
My my, 5.5 million dollars. For that money, even a slag might start biting his knuckles and wondering how, oh how he was going to repay it. But the GMs and MBNA America Banks that are weaping oceans of tears over the stray sheep lying through their sheep teeth in bankruptcy courts thoughout the land have, at least, a good heart. These are essentially Christian corporations when it comes to their highest employees. Character, you know, attracts its own redemption. That is why owing such terrific amounts of the ready has not distracted our governors from the tiller. No, they bravely shoulder those five million dollar, or fifteen million dollar, or even four hundred million dollar debts. Yes, and now we can admire them more, because it is so hard, what with yachts and depreciating stocks and such, to come up with 5.5 mil to pay back their companies! oh, could this mean the loss of invaluable personnel? These giants of industry, sucked into the industrial waste with the rest of us! Gasp!
But gentle reader, don't weap for them. This is a big country. Here's another delicious graf:
"All told, loans to insiders in recent years may have reached more than $5 billion. Hundreds of millions of dollars in loans, perhaps as much as $1 billion, have been or will be forgiven, based on Securities and Exchange Commission records and estimates by corporate compensation experts. This suggests that companies will be eating losses from insider loans for years to come. But the more damaging legacy may be that the practice -- by helping fuel the explosion in CEO pay that is at the heart of much of today's outcry over corporate behavior -- will contribute to the perception that management has all too often lined its pockets at investors' expense, and to the public's distrust of how American companies are run."
Luckily, most of these loans aren't made with interest -- that would be oh so gross. I mean, we are talking about some of america's best and brightest -- interest is something they collect, darling, not something they should be forced to pay out. But that the rate of non-payment is 20 percent -- now, that is something, ain't it?
The poster boy for corporate loans in the King article is from Microsoft. Meet Rick Belluzzo:
"Early in September, Microsoft (MSFT) had a small confession to make. Back in December 2000, the company had lent its president, Rick Belluzzo, $15 million, taking some of his stock options as collateral. Though the options were underwater and had no value at the time, Microsoft figured its stock would eventually go up. But by last August, when Belluzzo resigned, the options were even further submerged. So the software giant forgave the loan -- it had no choice under the deal Belluzzo had struck -- charged off the $15 million, and said its belated disclosure was "appropriate" because the loan was really just an "advance." "
Now, to be fair, our legislature has officially outlawed insider loans of the Belluzzo type. The Sarbanes-Oxley act definitely puts them under bar. This will call for a lot of semantic ingenuity on the part of corporate lawyers. In the meantime, the bankruptcy bill will rise again. You can MBNA bank on it!
Out of the American mangle
The poor you don't need to have with you always. But if you do, and you give them credit (only 19.9% compounded monthly!), why, make their life a living hell for a generation. That was, and is, the message and substance of the bankruptcy "reform" act that died, again, in the Congress this week. Here's the Friday NYT:
"With a long-stalled bill to toughen bankruptcy laws declared dead today in Congress because of abortion politics, Senate Democrats and House Republicans were left to blame each other for the collapse of a measure that otherwise had broad bipartisan support and was championed by powerful corporate lobbyists."
The New York Times is long on the Homeric epithet -- you know, those things like "wine dark sea", or "swift footed Achilles", that fill in rhythmic spaces in the epic. The 'broad bipartisan support" and "championed by powerful corporate lobbyists" is the Times standard description of the bankruptcy act. LI would suggest, perhaps, corrupt enforcement of usurious practices similar in kind to that practiced by your average loan shark," but maybe the rhythm is off. What do you think?
LI has written about that undead bill before -- don't worry, it will be back. It was killed this time due to the ineffable mysteries of legislation: it got caught in a pr abortion rights -- right to life crossfire. LI has gone into the penetralia of the bill once too often before -- the way it penalizes the working class in extraordinary ways, the way it privileges paying back credit card debt over, say, paying child support, the way it sets up one more obstacle to blue collar redemption in an age in which every clintonoid politician tells us that we have to promote "flexible" job markets.
Open Secrets has a nice little summary of the issue and the parties in play. Here's their abridged version of what the legislation is about:
HOW THE INTEREST GROUPS SEE IT
Banks, credit card companies and credit unions have been leading the drive to rewrite of the nation�s bankruptcy laws. The American Financial Services Association, the trade group that represents the major credit card companies, joined other financial industry trade associations, Visa and Mastercard in 1998 to form the National Consumer Bankruptcy Coalition. The coalition has been the leading voice in favor of bankruptcy reform, contending that more than 30 percent of those filing bankruptcy have the ability to repay significant portions of their debts. But the financial sector isn�t the only group lobbying on this issue. Gambling interests, including some of Las Vegas� biggest casinos, also are pushing for a new bankruptcy law, according to their lobbying filings. Car dealers, retail stores and even entertainment companies also have weighed in on the issue, mostly in support of reform.
Consumer groups, including the Consumer Federation of America and Public Citizen, are lobbying against the bill. They contend Congress should crack down on the financial companies, which they criticize for handing out credit cards and credit lines indiscriminately. Additionally, they contend the legislation is too far-reaching and could ultimately do more harm to indebted Americans than limit fraud and abuse.
As things go in America, there is, of course, another story about credit -- its extension and forgiveness -- that clues us in to the central moral of our skewed times. For the slackers and the lags that gamble and renege, that buy their fancy cars and thumb their noses at GM, well, their hatefulness -- and we know how bad bad bad they are -- could be washed as white as snow if only they were , well, a little higher in the food chain. There, the terms of the loan are reversed. There's a nice story about the unpaid and forgiven loans of CEOs and their immediate underlings, and the board members that "govern" them, in Business 2.0 -- happily coinciding with the vote on the the credit card company wish list act. Here's the core graf:
"Roughly three-quarters of the nation's top 1,500 companies -- 1,133, to be precise -- have disclosed loans to insiders in recent regulatory filings, according to a study due to be published in November by the Corporate Library, a firm based in Portland, Maine, that analyzes corporate data and advocates greater accountability to shareholders. Of the companies that disclosed loans, 510 made them for the purchase of stock, for a handful of other uses such as housing and tax payments, or for purposes that weren't specified at all. The average loan was about $5.5 million."
My my, 5.5 million dollars. For that money, even a slag might start biting his knuckles and wondering how, oh how he was going to repay it. But the GMs and MBNA America Banks that are weaping oceans of tears over the stray sheep lying through their sheep teeth in bankruptcy courts thoughout the land have, at least, a good heart. These are essentially Christian corporations when it comes to their highest employees. Character, you know, attracts its own redemption. That is why owing such terrific amounts of the ready has not distracted our governors from the tiller. No, they bravely shoulder those five million dollar, or fifteen million dollar, or even four hundred million dollar debts. Yes, and now we can admire them more, because it is so hard, what with yachts and depreciating stocks and such, to come up with 5.5 mil to pay back their companies! oh, could this mean the loss of invaluable personnel? These giants of industry, sucked into the industrial waste with the rest of us! Gasp!
But gentle reader, don't weap for them. This is a big country. Here's another delicious graf:
"All told, loans to insiders in recent years may have reached more than $5 billion. Hundreds of millions of dollars in loans, perhaps as much as $1 billion, have been or will be forgiven, based on Securities and Exchange Commission records and estimates by corporate compensation experts. This suggests that companies will be eating losses from insider loans for years to come. But the more damaging legacy may be that the practice -- by helping fuel the explosion in CEO pay that is at the heart of much of today's outcry over corporate behavior -- will contribute to the perception that management has all too often lined its pockets at investors' expense, and to the public's distrust of how American companies are run."
Luckily, most of these loans aren't made with interest -- that would be oh so gross. I mean, we are talking about some of america's best and brightest -- interest is something they collect, darling, not something they should be forced to pay out. But that the rate of non-payment is 20 percent -- now, that is something, ain't it?
The poster boy for corporate loans in the King article is from Microsoft. Meet Rick Belluzzo:
"Early in September, Microsoft (MSFT) had a small confession to make. Back in December 2000, the company had lent its president, Rick Belluzzo, $15 million, taking some of his stock options as collateral. Though the options were underwater and had no value at the time, Microsoft figured its stock would eventually go up. But by last August, when Belluzzo resigned, the options were even further submerged. So the software giant forgave the loan -- it had no choice under the deal Belluzzo had struck -- charged off the $15 million, and said its belated disclosure was "appropriate" because the loan was really just an "advance." "
Now, to be fair, our legislature has officially outlawed insider loans of the Belluzzo type. The Sarbanes-Oxley act definitely puts them under bar. This will call for a lot of semantic ingenuity on the part of corporate lawyers. In the meantime, the bankruptcy bill will rise again. You can MBNA bank on it!
Friday, November 15, 2002
Remora
LI finds discussions of "saving" the Democratic party repellent and boring. Who cares? The DC press is, of course, in hyperdrive about the elections, but that is because politics is their industry. Still, we've been following the discussion between Robert Reich and Joe Klein at Slate, partly because these two are typical DC-kabuki types. The ritual entrances. The stereotypical phrases. The rigid decorum, the predictable plot. Without, we should say, plumbing any of the deep sources of kabuki's beauty -- the body's presence to itself as a drama of obstruction and annihilation, passion as a disruption on the surface of expression, etc.
Klein, in particular, illustrates the convention of hypocrisy that makes political discourse, as it is practiced by the op ed set, so off-putting.
This is how Klein starts out:
"Some say move left. Some say move right. Both are right and both are wrong. If we're to have a vaguely interesting national debate, the Democrats have to move forward�away from the boring, tiny, and tactical issues, and language, and interest groups that the party has championed in recent years. This will mean a change in style as well as content. Above all, it will mean an extremely risky change in focus from the beloved and reliable geezers to the edgy, cynical, apathetic young people. The electorate has to be expanded. But the most valuable cache of votes isn't to be had in the poor neighborhoods�as admirable as such efforts may be�it is to be found on the college campuses, where the next generation of activists lives. We can discuss the policy details over the next few days."
So, what is the premise here? That Klein is going to give us the technique by which the Democrats can win elections. But what he is actually doing? He is trying to influence the party to represent his point of view. In DC talk, when that point of view comes from, say, a teacher's union rep, it is known as special interest. As if there were some disinterested point of view. And as if, hey, the political pundit set represents that disinterestedness. When Robert Reich replies to Klein with his prescription for the Democratic Party -- which is, basically, to represent Robert Reich's lefty point of view vigorously -- this is how Klein replies:
"You mock moderates, call them Republicans-Lite. But, to my mind --and I'm a flaming moderate - the best new ideas have come from the middle of the spectrum in recent years. In domestic policy, it was the idea that centralized, industrial-era bureaucratic systems are too rigid and too expensive (urban school districts, for example); it's better to give individuals money -�tax credits, vouchers, whatever you want to call it -and allow them to make their own choices on health care, housing, prescription drugs, day care, schooling, and so forth. You were a pioneer in the field, Bob, with your voucherized job training and retraining program at the Labor Department. The reactionary left opposes this idea (the AFL-CIO wasn't too hot for your program, if I recall). The Republicans pay lip service to "empowerment" but don't want to actually pay money for it. The progressive middle says: Fund it amply, monitor it, regulate it - but do it. (By the way, tax disincentives are a good idea, too: I'd favor a cigarette-level tax on bullets, for example; I would tax corporations on their "externalities" - the social and environmental disruptions they cause -- not their profits.)
In foreign policy, the basic idea is global citizenship: American leadership -- with lots and lots of quiet diplomacy and consultation -- in organizing collective action against terrorists and rogue governments, against environmental depredation, against the transnational efforts of corporations to escape taxation and of criminal combines to escape the law, and the free flow of goods, services, information, and, to the greatest possible extent, people."
Now, what is this discussion really about? It isn't about how Democrats can rebuild their party, it is about molding a party to one's own beliefs. LI thinks that is honorable. LI thinks the dishonor comes in the pretense that one is simply trying to "save" the Democratic party. It is this third way bull crap. LI doesn't vote for a faction just because it is a faction. Nobody does. The technicians who "analyze" politics -- the Broders, the Kleins, the Barneses, etc. -- are really just importing their ideas into politics, under the pretense that their ideas represent the 'center' -- represent the average American voter.
Well, LI is unrepresentative of the average. Our motto is: screw the average. If you look at this country and you say, hey, we are rich enough to shed six trillion dollars worth of wealth in the stock market and still buy record numbers of cars, so we are rich enough to design a national health care system, then you work for that through a number of modalities. A faction exists as one in a set of mechanisms of suasion. And who cares if you run this goal through the Republicans or the Democrats? The point is the goal.
Now, if Klein doesn't like national health insurance, fine. But there is no reason that the Democratic party should abandon national health insurance. Certainly the reason can't be that it is "unpopular" -- the whole point is to make it popular. And, contra Klein, that happens all the time, as it should. Our two big factions exist to make ideas that the guy selling cigs at the Tenneco isn't entertainng at the moment entertain-able. Look how the abolition of inheritance taxes was made popular. Or how invading Iraq was made popular. This is what factions are for. It is about struggle. So the first task of the Reichs in the Democratic party, it seems to me, is to unmask the language of consensus for what it is: the language of position taking. And deal with it as such.
LI finds discussions of "saving" the Democratic party repellent and boring. Who cares? The DC press is, of course, in hyperdrive about the elections, but that is because politics is their industry. Still, we've been following the discussion between Robert Reich and Joe Klein at Slate, partly because these two are typical DC-kabuki types. The ritual entrances. The stereotypical phrases. The rigid decorum, the predictable plot. Without, we should say, plumbing any of the deep sources of kabuki's beauty -- the body's presence to itself as a drama of obstruction and annihilation, passion as a disruption on the surface of expression, etc.
Klein, in particular, illustrates the convention of hypocrisy that makes political discourse, as it is practiced by the op ed set, so off-putting.
This is how Klein starts out:
"Some say move left. Some say move right. Both are right and both are wrong. If we're to have a vaguely interesting national debate, the Democrats have to move forward�away from the boring, tiny, and tactical issues, and language, and interest groups that the party has championed in recent years. This will mean a change in style as well as content. Above all, it will mean an extremely risky change in focus from the beloved and reliable geezers to the edgy, cynical, apathetic young people. The electorate has to be expanded. But the most valuable cache of votes isn't to be had in the poor neighborhoods�as admirable as such efforts may be�it is to be found on the college campuses, where the next generation of activists lives. We can discuss the policy details over the next few days."
So, what is the premise here? That Klein is going to give us the technique by which the Democrats can win elections. But what he is actually doing? He is trying to influence the party to represent his point of view. In DC talk, when that point of view comes from, say, a teacher's union rep, it is known as special interest. As if there were some disinterested point of view. And as if, hey, the political pundit set represents that disinterestedness. When Robert Reich replies to Klein with his prescription for the Democratic Party -- which is, basically, to represent Robert Reich's lefty point of view vigorously -- this is how Klein replies:
"You mock moderates, call them Republicans-Lite. But, to my mind --and I'm a flaming moderate - the best new ideas have come from the middle of the spectrum in recent years. In domestic policy, it was the idea that centralized, industrial-era bureaucratic systems are too rigid and too expensive (urban school districts, for example); it's better to give individuals money -�tax credits, vouchers, whatever you want to call it -and allow them to make their own choices on health care, housing, prescription drugs, day care, schooling, and so forth. You were a pioneer in the field, Bob, with your voucherized job training and retraining program at the Labor Department. The reactionary left opposes this idea (the AFL-CIO wasn't too hot for your program, if I recall). The Republicans pay lip service to "empowerment" but don't want to actually pay money for it. The progressive middle says: Fund it amply, monitor it, regulate it - but do it. (By the way, tax disincentives are a good idea, too: I'd favor a cigarette-level tax on bullets, for example; I would tax corporations on their "externalities" - the social and environmental disruptions they cause -- not their profits.)
In foreign policy, the basic idea is global citizenship: American leadership -- with lots and lots of quiet diplomacy and consultation -- in organizing collective action against terrorists and rogue governments, against environmental depredation, against the transnational efforts of corporations to escape taxation and of criminal combines to escape the law, and the free flow of goods, services, information, and, to the greatest possible extent, people."
Now, what is this discussion really about? It isn't about how Democrats can rebuild their party, it is about molding a party to one's own beliefs. LI thinks that is honorable. LI thinks the dishonor comes in the pretense that one is simply trying to "save" the Democratic party. It is this third way bull crap. LI doesn't vote for a faction just because it is a faction. Nobody does. The technicians who "analyze" politics -- the Broders, the Kleins, the Barneses, etc. -- are really just importing their ideas into politics, under the pretense that their ideas represent the 'center' -- represent the average American voter.
Well, LI is unrepresentative of the average. Our motto is: screw the average. If you look at this country and you say, hey, we are rich enough to shed six trillion dollars worth of wealth in the stock market and still buy record numbers of cars, so we are rich enough to design a national health care system, then you work for that through a number of modalities. A faction exists as one in a set of mechanisms of suasion. And who cares if you run this goal through the Republicans or the Democrats? The point is the goal.
Now, if Klein doesn't like national health insurance, fine. But there is no reason that the Democratic party should abandon national health insurance. Certainly the reason can't be that it is "unpopular" -- the whole point is to make it popular. And, contra Klein, that happens all the time, as it should. Our two big factions exist to make ideas that the guy selling cigs at the Tenneco isn't entertainng at the moment entertain-able. Look how the abolition of inheritance taxes was made popular. Or how invading Iraq was made popular. This is what factions are for. It is about struggle. So the first task of the Reichs in the Democratic party, it seems to me, is to unmask the language of consensus for what it is: the language of position taking. And deal with it as such.
Wednesday, November 13, 2002
Remora
LI, having liberally annointed our back molars with a codeine, or benzocodeine, salve, would like to do a piece on today's big news story. Sorry, the consideration of time as a component of picturing will have to be postponed -- we aren't Boethius, nor were meant to be...
Onto the big story, which as my readers will know by now, is the on-going collapse of National Century Financial Services. Oh, you thought it was the bread and circuses, or rather war games, thing going on in D.C.?
No, today we have an excellent example of why the press can calmly talk about how the "wave of corporate scandals" has broken. That's because nobody wants to talk about it. Plus, no star is involved in this scandal.
The story is in the biz section of the Times.
"The rapid collapse of National Century Financial Enterprises Inc., a large provider of cash flow financing, is sending hundreds of health care companies and their affiliates scrambling to avoid big financial trouble."
Cash flow financing means this. The thirty thousand dollars that X is paying to have his prostate operated on is out there in segments. The insurance is paying for it, but the deductible means that X has to pay for it on credit. Here comes NCF, then, offering to aggregate such debts and securitize them, much as mortgages are securitized. Beautiful, right?
"Two of National Century's largest clients have sought Chapter 11 protection from their creditors, while the dubious status of two of the company's bond deals worth $3.3 billion has set off a spate of threatened legal action against National Century, J. P. Morgan Chase, Bank One and other firms involved in the asset-backed securities. Amid the meltdown, National Century's chairman and chief executive, Lance K. Poulsen, quit both posts on Friday and left the company, which is based in Dublin, Ohio."
Ah, there's a little backstory with this Lance Poulson. And with National Century. But first, here's the fishiness in this creature from the depth. This will tell you pretty much all you need to know about the state of corporate creative financing in this "reform" period:
"This complex brew [of bonds based on hospital receivables] began to boil over in May when the Fitch rating agency warned that it might downgrade National Century bonds, which it did in July. It cited "increasing levels of defaulted and rejected receivables" and a lack of information from the company. This made it harder for National Century to issue new bonds, and the company soon ran into trouble finding the money to pay its clients.
In response, National Century began taking money from the reserve funds of two bond trusts � NPF VI and NPF XII. When J. P. Morgan, as trustee for NPF VI, asked for documentation as to how this was acceptable, National Century stopped taking money from NPF VI and eventually replaced it.
But the trustee of NPF XII, Bank One, is said to have made no such demand, so the company took about $300 million from that reserve fund, draining it to almost zero. At first, bondholders assumed the money went to buy new receivables. But in their motion filed in the Franklin County Court of Pleas in Columbus, Ohio, they say Mr. Poulsen admitted using it for other purposes."
Well, well. It turns out that junior, who flunked eighth grade mass, could have done better than bought the mortgage theory. He could have pointed out that hospital receivables are much more volatile, subject to a much higher percentage of defaults and restructurings. And traditionally, such volatility attracts, well, the loan shark -- because sharks are the type to be able to cover their bets with high interest and the threat of immediate violence following non-payment. Mr. Poulson isn't exactly a loan shark, but according to this account by Doug Noland (who writes the Credit Bubble report for Safehaven, a website for contrarian investors), the history of National Century is spotted with shady characters -- or should we say fly specked?
First, the sentence about the use of NPFXII funds in the Times story is confusing. It implies that the bondholders would be fine with the draining of the reserve fund to invest in further receivables. But of course, that is not what a reserve fund is for -- it is to serve as a barrier against the risk of defaults.
"From Dow Jones� David Feldheim: �No ratings Rx appears in sight for National Century Financial Enterprises (NCFE) amid concerns about revenue streams backing some of its securitizations. In the 11-plus years since its inception, NCFE has become the largest financier of healthcare receivables, according to its spokesman Jim Nickell. Over this period NCFE has securitized in excess of $6 billion of healthcare receivables, and it has bought substantially more than that from providers. It has also drawn recent scrutiny from the ratings agencies who rate those securitizations. Fitch Ratings said over the weekend that it has been informed by interested parties that NCFE directed the trustee to reroute certain funds intended for the NPF XII reserve accounts in order to fund the purchase of new receivables. �The company's apparent willingness to disregard the documents and commit such a serious breach, causes Fitch to question NCFE�s viability.��
Second, how did this company get so big, and why has nobody heard of it? One of the results of "restructuring" investment regulations in the eighties and nineties is that everybody gets to play investment bank. Without any pesky regulators looking at what you are doing. So anywhere cash is being transferred, somebody, somewhere, is trying to get a piece of that. Securitizing, slicing and dicing issues -- it is a wondrous way to make money, as long as you aren't on the other end when the stuff starts coming apart.
According to Noland, the company, founded in 91, has ties to a group of other companies, many of them connected to one Steven Scott. Scott ran a company called PhyAmerica Physician Group, which was delisted by the NYSE when its stock plummeted to pennies. PhyAmerica seems to be running on money loaned to it by NCF. In 2000, this became an issue, as stockholders sued Scott and Poulson for, as they put it, draining the company: "They alleged that Scott and Lance K. Poulsen, National Century�s president, had an agreement: Poulsen would fund Scott�s spending while Scott �looks the other way while Poulsen improperly diverts the company�s cash into NCFE�s coffers.� Even as the company�s finances deteriorated, PhyAmerica bought one corporate jet for $6.6 million and leased another for $848,000 -- expenses that benefited Scott because he owned the aviation company that provided the jets, shareholders said.� Also from the article: �There was a report on �60 Minutes� accusing�Dr. Steven Scott, of hiring doctors who had been disciplined or sued for malpractice.�
Forbes profiled the 'bearded" Poulson, and found him to be sanguine about NCFE -- at least in October. From Risky Business, on Friday October 11, By Seth Lubove:
"In between the court appearances Poulsen has thrived in his niche, making himself and his partners comfortably wealthy, though in ways that might raise eyebrows among traditional lenders. Poulsen, his wife and other company executives, for instance, have occasionally taken personal stakes in NCFE's borrowers. In addition to lending $107 million to something called Med Diversified as of the end of last year, NCFE also owns 6% of the company, or 5 million shares, while Poulsen personally controls another 109,000 shares of preferred stock. Med Diversified also acquired a company that was 22% owned by Donald Ayers, an NCFE cofounder and Med Diversified director. Med Diversified is dependent on NCFE in more ways than one. It derived $4 million in revenues in its 2001 fiscal year from NCFE for various "consulting services," in addition to being owed another $4.3 million in unpaid invoices from NCFE. Another $2 million in revenues during the same period came from an outfit called Millennium Healthcare, a company owned "indirectly" at the time by NCFE. Med Diversified fared badly anyway. It was delisted from the American Stock Exchange in July after losing $605 million in the past two fiscal years on sales of $296 million."
Medicine, attracting only the most sterling kind of entrepreneur! Noland's Safe Haven articule digs up some other intricate connections between NCF, Poulson, and various schemes, in twisted deals that have the involute structure of Jacobean drama, without the pretty poetry. This comes on the heels of two other medical scandals: one at Health South, and one at Tenet. Well, if hospitals start going bankrupt due to this Ohio case, the newspapers might even have to pay attention to it. We'll see.
LI, having liberally annointed our back molars with a codeine, or benzocodeine, salve, would like to do a piece on today's big news story. Sorry, the consideration of time as a component of picturing will have to be postponed -- we aren't Boethius, nor were meant to be...
Onto the big story, which as my readers will know by now, is the on-going collapse of National Century Financial Services. Oh, you thought it was the bread and circuses, or rather war games, thing going on in D.C.?
No, today we have an excellent example of why the press can calmly talk about how the "wave of corporate scandals" has broken. That's because nobody wants to talk about it. Plus, no star is involved in this scandal.
The story is in the biz section of the Times.
"The rapid collapse of National Century Financial Enterprises Inc., a large provider of cash flow financing, is sending hundreds of health care companies and their affiliates scrambling to avoid big financial trouble."
Cash flow financing means this. The thirty thousand dollars that X is paying to have his prostate operated on is out there in segments. The insurance is paying for it, but the deductible means that X has to pay for it on credit. Here comes NCF, then, offering to aggregate such debts and securitize them, much as mortgages are securitized. Beautiful, right?
"Two of National Century's largest clients have sought Chapter 11 protection from their creditors, while the dubious status of two of the company's bond deals worth $3.3 billion has set off a spate of threatened legal action against National Century, J. P. Morgan Chase, Bank One and other firms involved in the asset-backed securities. Amid the meltdown, National Century's chairman and chief executive, Lance K. Poulsen, quit both posts on Friday and left the company, which is based in Dublin, Ohio."
Ah, there's a little backstory with this Lance Poulson. And with National Century. But first, here's the fishiness in this creature from the depth. This will tell you pretty much all you need to know about the state of corporate creative financing in this "reform" period:
"This complex brew [of bonds based on hospital receivables] began to boil over in May when the Fitch rating agency warned that it might downgrade National Century bonds, which it did in July. It cited "increasing levels of defaulted and rejected receivables" and a lack of information from the company. This made it harder for National Century to issue new bonds, and the company soon ran into trouble finding the money to pay its clients.
In response, National Century began taking money from the reserve funds of two bond trusts � NPF VI and NPF XII. When J. P. Morgan, as trustee for NPF VI, asked for documentation as to how this was acceptable, National Century stopped taking money from NPF VI and eventually replaced it.
But the trustee of NPF XII, Bank One, is said to have made no such demand, so the company took about $300 million from that reserve fund, draining it to almost zero. At first, bondholders assumed the money went to buy new receivables. But in their motion filed in the Franklin County Court of Pleas in Columbus, Ohio, they say Mr. Poulsen admitted using it for other purposes."
Well, well. It turns out that junior, who flunked eighth grade mass, could have done better than bought the mortgage theory. He could have pointed out that hospital receivables are much more volatile, subject to a much higher percentage of defaults and restructurings. And traditionally, such volatility attracts, well, the loan shark -- because sharks are the type to be able to cover their bets with high interest and the threat of immediate violence following non-payment. Mr. Poulson isn't exactly a loan shark, but according to this account by Doug Noland (who writes the Credit Bubble report for Safehaven, a website for contrarian investors), the history of National Century is spotted with shady characters -- or should we say fly specked?
First, the sentence about the use of NPFXII funds in the Times story is confusing. It implies that the bondholders would be fine with the draining of the reserve fund to invest in further receivables. But of course, that is not what a reserve fund is for -- it is to serve as a barrier against the risk of defaults.
"From Dow Jones� David Feldheim: �No ratings Rx appears in sight for National Century Financial Enterprises (NCFE) amid concerns about revenue streams backing some of its securitizations. In the 11-plus years since its inception, NCFE has become the largest financier of healthcare receivables, according to its spokesman Jim Nickell. Over this period NCFE has securitized in excess of $6 billion of healthcare receivables, and it has bought substantially more than that from providers. It has also drawn recent scrutiny from the ratings agencies who rate those securitizations. Fitch Ratings said over the weekend that it has been informed by interested parties that NCFE directed the trustee to reroute certain funds intended for the NPF XII reserve accounts in order to fund the purchase of new receivables. �The company's apparent willingness to disregard the documents and commit such a serious breach, causes Fitch to question NCFE�s viability.��
Second, how did this company get so big, and why has nobody heard of it? One of the results of "restructuring" investment regulations in the eighties and nineties is that everybody gets to play investment bank. Without any pesky regulators looking at what you are doing. So anywhere cash is being transferred, somebody, somewhere, is trying to get a piece of that. Securitizing, slicing and dicing issues -- it is a wondrous way to make money, as long as you aren't on the other end when the stuff starts coming apart.
According to Noland, the company, founded in 91, has ties to a group of other companies, many of them connected to one Steven Scott. Scott ran a company called PhyAmerica Physician Group, which was delisted by the NYSE when its stock plummeted to pennies. PhyAmerica seems to be running on money loaned to it by NCF. In 2000, this became an issue, as stockholders sued Scott and Poulson for, as they put it, draining the company: "They alleged that Scott and Lance K. Poulsen, National Century�s president, had an agreement: Poulsen would fund Scott�s spending while Scott �looks the other way while Poulsen improperly diverts the company�s cash into NCFE�s coffers.� Even as the company�s finances deteriorated, PhyAmerica bought one corporate jet for $6.6 million and leased another for $848,000 -- expenses that benefited Scott because he owned the aviation company that provided the jets, shareholders said.� Also from the article: �There was a report on �60 Minutes� accusing�Dr. Steven Scott, of hiring doctors who had been disciplined or sued for malpractice.�
Forbes profiled the 'bearded" Poulson, and found him to be sanguine about NCFE -- at least in October. From Risky Business, on Friday October 11, By Seth Lubove:
"In between the court appearances Poulsen has thrived in his niche, making himself and his partners comfortably wealthy, though in ways that might raise eyebrows among traditional lenders. Poulsen, his wife and other company executives, for instance, have occasionally taken personal stakes in NCFE's borrowers. In addition to lending $107 million to something called Med Diversified as of the end of last year, NCFE also owns 6% of the company, or 5 million shares, while Poulsen personally controls another 109,000 shares of preferred stock. Med Diversified also acquired a company that was 22% owned by Donald Ayers, an NCFE cofounder and Med Diversified director. Med Diversified is dependent on NCFE in more ways than one. It derived $4 million in revenues in its 2001 fiscal year from NCFE for various "consulting services," in addition to being owed another $4.3 million in unpaid invoices from NCFE. Another $2 million in revenues during the same period came from an outfit called Millennium Healthcare, a company owned "indirectly" at the time by NCFE. Med Diversified fared badly anyway. It was delisted from the American Stock Exchange in July after losing $605 million in the past two fiscal years on sales of $296 million."
Medicine, attracting only the most sterling kind of entrepreneur! Noland's Safe Haven articule digs up some other intricate connections between NCF, Poulson, and various schemes, in twisted deals that have the involute structure of Jacobean drama, without the pretty poetry. This comes on the heels of two other medical scandals: one at Health South, and one at Tenet. Well, if hospitals start going bankrupt due to this Ohio case, the newspapers might even have to pay attention to it. We'll see.
Tuesday, November 12, 2002
Notice
I am not going to be as regular in posting this week, due to a toothache. Actually, three of my back teeth are in death star mode, causing me to suffer the pangs of hell in regular cycles. Like after I eat. Alas, having no money, what is LI to do? Well, this morning we called up the Texas Dental Examiners, who referred us to Texans for Healthy Smiles, who referred us to a clinic that will supposedly process us through the dread labyrinth of paperwork so that we can actually get these teeth extracted. Whether this will work or not is hard to say. If it doesn't, we'll rob a store and give ourselves up, and enjoy the amenities of prison dentistry. Anything to get rid of these molesting molars.
In the meantime, here's a thought from our friend, Tom. He sent us a little Moby Dick like medley of quotes, except not about the great fish. Here's the joke on the board above his office desk.
"The physicist Carl Friedrich von Weizacker told Heideggar the story of a man who spent all his day in a tavern. Asked why, the man replied that it was because of his wife: 'She talks and talks and talks and talks." He was asked, "What does she talk about?" He replied, "Ah, that she doesn't say." Heideggar is supposed to have said, "Yes, that is how it is."
I am not going to be as regular in posting this week, due to a toothache. Actually, three of my back teeth are in death star mode, causing me to suffer the pangs of hell in regular cycles. Like after I eat. Alas, having no money, what is LI to do? Well, this morning we called up the Texas Dental Examiners, who referred us to Texans for Healthy Smiles, who referred us to a clinic that will supposedly process us through the dread labyrinth of paperwork so that we can actually get these teeth extracted. Whether this will work or not is hard to say. If it doesn't, we'll rob a store and give ourselves up, and enjoy the amenities of prison dentistry. Anything to get rid of these molesting molars.
In the meantime, here's a thought from our friend, Tom. He sent us a little Moby Dick like medley of quotes, except not about the great fish. Here's the joke on the board above his office desk.
"The physicist Carl Friedrich von Weizacker told Heideggar the story of a man who spent all his day in a tavern. Asked why, the man replied that it was because of his wife: 'She talks and talks and talks and talks." He was asked, "What does she talk about?" He replied, "Ah, that she doesn't say." Heideggar is supposed to have said, "Yes, that is how it is."
Monday, November 11, 2002
Dope
We know for certain that sight is one of the most rapid actions we can perform. In an instant we see an infinite number of forms, still we only take in thoroughly one object at a time. Supposing that you, Reader, were to glance rapidly at the whole of this written page, you would instantly perceive that it was covered with various letters; but you could not, in the time, recognise what the letters were, nor what they were meant to tell. Hence you would need to see them word by word, line by line to be able to understand the letters. -Leonardo da Vinci
Seeking some calm from the excitements of this week � the injustice meted out to Winona! the latest report on the distribution of stock options during the 90s! und so weiter -- LI has been reading Leo Steinberg�s marvelous essay, Leonardo�s Incessant Last Supper. Steinberg is, as he calls it, a Leonardista. Among the splendors of the book are the photos he has taken, over the years, of the Last Supper. These photos record the changes made to that painting as its slow, inexorable restoration moved glacially forward. Frankly, if the restoration does look like the end page fold-out � and we have no doubt it does � LI suspects that, in another twenty years, we are going to be talking about the Last Supper Disaster. One has only to compare James Major, the second figure to Christ�s left, as he has been �restored� to earlier pictures. The restoration seems to have sentimentalized the painting, and to have created a muddiness where, before, there was a decay. I agree with Jacques Franck:"Ninety per cent of the work has disappeared, and the fact that you repaint 90 per cent is to me something that has not much sense."
This is not, I think, Steinberg�s opinion.
But what interested us, among other things, about Steinberg�s essay was the comparison of readings of the Last Supper. As Steinberg demonstrates, from the eighteenth century to quite recently, a secular interpretation prevailed. The �moment� portrayed in the painting, on this interpretation, was Jesus� revelation that he was going to be betrayed. Goethe was one of the great institutors of this interpretation � although, as a dissident pointed out, in 1903, Goethe depended on a reproduction of The Last Supper by Raphael Morghen that left the wine out of the painting � the wine in the glass before Jesus� upraised right hand. This is crucial to the counter-secular reading. This is how the scene is reported in Matthew, 26:
�19: And the disciples did as Jesus had appointed them; and they made ready the passover.
20: Now when the even was come, he sat down with the twelve.
21: And as they did eat, he said, Verily I say unto you, that one of you shall betray me.
22: And they were exceeding sorrowful, and began every one of them to say unto him, Lord, is it I?
23: And he answered and said, He that dippeth his hand with me in the dish, the same shall betray me.
24: The Son of man goeth as it is written of him: but woe unto that man by whom the Son of man is betrayed! it had been good for that man if he had not been born.
25: Then Judas, which betrayed him, answered and said, Master, is it I? He said unto him, Thou hast said.
26: And as they were eating, Jesus took bread, and blessed it, and brake it, and gave it to the disciples, and said, Take, eat; this is my body.
27: And he took the cup, and gave thanks, and gave it to them, saying, Drink ye all of it;
28: For this is my blood of the new testament, which is shed for many for the remission of sins.
29: But I say unto you, I will not drink henceforth of this fruit of the vine, until that day when I drink it new with you in my Father's kingdom.�
which was that the consternation at the table was provoked by Jesus�s pronouncement, this is my body, take eat, this is my blood.�
Steinberg traces the rise of the secular interpretation, buoyed by the spirit of Goethe, until the early sixties. But then the second, eucharistic interpretation began to emerge and contest the secularists. The salient fact about the Last Supper is that, at both ends of the table, the disciples register some kind of shock, while, at the very center, Jesus looks preternaturally mild. So what is this contrast? The secularists think that Leonardo has painted a Shakespearian tableau. Jesus� pronouncement, which could be uttered with cunning, or with anger, is uttered, by the son of man, with a sort of shame for the traitor � while the disciples, human all too human, have fallen to debating, among themselves, the crucial question of cultic loyalty. The eucharistics, according to the secularists, can�t account for the appearance of shock among the disciples. But this is because the secularists are thinking of the eucharist as it has been normalized for the last two thousand years. The eucharistics, however, think Leonardo has transported us back to the initial, shocking moment in which a man who these twelve men regarded as the son of God said to them, in effect, this bread, here, and this wine, over here, represent my body and my blood. And I want you to eat these things in order to remember me.
This is a shocking thing to hear. It is so very sexual, so very intimate, it releases a train of wild images in the mind that are normally repressed. It goes way back, saying something like that. There are stone floors of caves, there is firelight, there are night sweats, there is struggle. It forces the person who hears it to really look at the flesh saying it , and know that flesh is the world � that we live in a fully carnal world. The cannibal�s speech is that the mouth that speaks eats other mouths that speak. Words turn flesh, and flesh turns into words, feverishly. This is the effect caught in John 6, where Jesus says:
51: I am the living bread which came down from heaven: if any man eat of this bread, he shall live for ever: and the bread that I will give is my flesh, which I will give for the life of the world.
52: The Jews therefore strove among themselves, saying, How can this man give us his flesh to eat?
53: Then Jesus said unto them, Verily, verily, I say unto you, Except ye eat the flesh of the Son of man, and drink his blood, ye have no life in you.
54: Whoso eateth my flesh, and drinketh my blood, hath eternal life; and I will raise him up at the last day.
The effect of this speech on the disciples is remarked on in verset 60:
60: Many therefore of his disciples, when they had heard this, said, This is an hard saying; who can hear it?
So, this is the eucharistic case. But, as the saying is, sometimes Hegel happens. That is, sometimes the thesis and antithesis really do form a synthesis. Steinberg claims that the current consensus has moved to the conjunction of the secularist and eucharistic versions � that in this instance, as the hands go out for bread and wine, as the disciples cluster, as Thomas raises a finger and James Major spreads his arms in amazement, what is happening is a dream condensation, in the classical Freudian sense, of these two events � a Verdichtung. Steinberg does not make the Freudian detour, tempting as it might appear. LI is going to avoid it too � merely referring readers to the Chapter on Dreamwork in the Interpretation of Dreams. http://www.psywww.com/books/interp/chap06a.htm
We are after a different subject, which is: how exactly do we analyze the temporal element in the pictorial? In other words, how is time constituted in the picture?
Well, more on that tomorrow.
We know for certain that sight is one of the most rapid actions we can perform. In an instant we see an infinite number of forms, still we only take in thoroughly one object at a time. Supposing that you, Reader, were to glance rapidly at the whole of this written page, you would instantly perceive that it was covered with various letters; but you could not, in the time, recognise what the letters were, nor what they were meant to tell. Hence you would need to see them word by word, line by line to be able to understand the letters. -Leonardo da Vinci
Seeking some calm from the excitements of this week � the injustice meted out to Winona! the latest report on the distribution of stock options during the 90s! und so weiter -- LI has been reading Leo Steinberg�s marvelous essay, Leonardo�s Incessant Last Supper. Steinberg is, as he calls it, a Leonardista. Among the splendors of the book are the photos he has taken, over the years, of the Last Supper. These photos record the changes made to that painting as its slow, inexorable restoration moved glacially forward. Frankly, if the restoration does look like the end page fold-out � and we have no doubt it does � LI suspects that, in another twenty years, we are going to be talking about the Last Supper Disaster. One has only to compare James Major, the second figure to Christ�s left, as he has been �restored� to earlier pictures. The restoration seems to have sentimentalized the painting, and to have created a muddiness where, before, there was a decay. I agree with Jacques Franck:"Ninety per cent of the work has disappeared, and the fact that you repaint 90 per cent is to me something that has not much sense."
This is not, I think, Steinberg�s opinion.
But what interested us, among other things, about Steinberg�s essay was the comparison of readings of the Last Supper. As Steinberg demonstrates, from the eighteenth century to quite recently, a secular interpretation prevailed. The �moment� portrayed in the painting, on this interpretation, was Jesus� revelation that he was going to be betrayed. Goethe was one of the great institutors of this interpretation � although, as a dissident pointed out, in 1903, Goethe depended on a reproduction of The Last Supper by Raphael Morghen that left the wine out of the painting � the wine in the glass before Jesus� upraised right hand. This is crucial to the counter-secular reading. This is how the scene is reported in Matthew, 26:
�19: And the disciples did as Jesus had appointed them; and they made ready the passover.
20: Now when the even was come, he sat down with the twelve.
21: And as they did eat, he said, Verily I say unto you, that one of you shall betray me.
22: And they were exceeding sorrowful, and began every one of them to say unto him, Lord, is it I?
23: And he answered and said, He that dippeth his hand with me in the dish, the same shall betray me.
24: The Son of man goeth as it is written of him: but woe unto that man by whom the Son of man is betrayed! it had been good for that man if he had not been born.
25: Then Judas, which betrayed him, answered and said, Master, is it I? He said unto him, Thou hast said.
26: And as they were eating, Jesus took bread, and blessed it, and brake it, and gave it to the disciples, and said, Take, eat; this is my body.
27: And he took the cup, and gave thanks, and gave it to them, saying, Drink ye all of it;
28: For this is my blood of the new testament, which is shed for many for the remission of sins.
29: But I say unto you, I will not drink henceforth of this fruit of the vine, until that day when I drink it new with you in my Father's kingdom.�
which was that the consternation at the table was provoked by Jesus�s pronouncement, this is my body, take eat, this is my blood.�
Steinberg traces the rise of the secular interpretation, buoyed by the spirit of Goethe, until the early sixties. But then the second, eucharistic interpretation began to emerge and contest the secularists. The salient fact about the Last Supper is that, at both ends of the table, the disciples register some kind of shock, while, at the very center, Jesus looks preternaturally mild. So what is this contrast? The secularists think that Leonardo has painted a Shakespearian tableau. Jesus� pronouncement, which could be uttered with cunning, or with anger, is uttered, by the son of man, with a sort of shame for the traitor � while the disciples, human all too human, have fallen to debating, among themselves, the crucial question of cultic loyalty. The eucharistics, according to the secularists, can�t account for the appearance of shock among the disciples. But this is because the secularists are thinking of the eucharist as it has been normalized for the last two thousand years. The eucharistics, however, think Leonardo has transported us back to the initial, shocking moment in which a man who these twelve men regarded as the son of God said to them, in effect, this bread, here, and this wine, over here, represent my body and my blood. And I want you to eat these things in order to remember me.
This is a shocking thing to hear. It is so very sexual, so very intimate, it releases a train of wild images in the mind that are normally repressed. It goes way back, saying something like that. There are stone floors of caves, there is firelight, there are night sweats, there is struggle. It forces the person who hears it to really look at the flesh saying it , and know that flesh is the world � that we live in a fully carnal world. The cannibal�s speech is that the mouth that speaks eats other mouths that speak. Words turn flesh, and flesh turns into words, feverishly. This is the effect caught in John 6, where Jesus says:
51: I am the living bread which came down from heaven: if any man eat of this bread, he shall live for ever: and the bread that I will give is my flesh, which I will give for the life of the world.
52: The Jews therefore strove among themselves, saying, How can this man give us his flesh to eat?
53: Then Jesus said unto them, Verily, verily, I say unto you, Except ye eat the flesh of the Son of man, and drink his blood, ye have no life in you.
54: Whoso eateth my flesh, and drinketh my blood, hath eternal life; and I will raise him up at the last day.
The effect of this speech on the disciples is remarked on in verset 60:
60: Many therefore of his disciples, when they had heard this, said, This is an hard saying; who can hear it?
So, this is the eucharistic case. But, as the saying is, sometimes Hegel happens. That is, sometimes the thesis and antithesis really do form a synthesis. Steinberg claims that the current consensus has moved to the conjunction of the secularist and eucharistic versions � that in this instance, as the hands go out for bread and wine, as the disciples cluster, as Thomas raises a finger and James Major spreads his arms in amazement, what is happening is a dream condensation, in the classical Freudian sense, of these two events � a Verdichtung. Steinberg does not make the Freudian detour, tempting as it might appear. LI is going to avoid it too � merely referring readers to the Chapter on Dreamwork in the Interpretation of Dreams. http://www.psywww.com/books/interp/chap06a.htm
We are after a different subject, which is: how exactly do we analyze the temporal element in the pictorial? In other words, how is time constituted in the picture?
Well, more on that tomorrow.
Friday, November 08, 2002
Remora
LI was walking up near the University yesterday when we heard our name. It was an old friend. We said, conventionally, how are you doing, and our friend said well, what did you think?
The news had depressed her utterly, she said.
We said, yeah, it sucked.
What are we going to do, she said? I want to move out of the country!
Well, we said, we don't feel that strongly about it. But we are pretty blue all the same. Damn blue.
How about the arctic wildlife refuge, she said.
Uh, we said, just because they are putting Winona in jail shouldn't effect Alaska in particular.
I'm talking about the elections! she said.
Oh, we said.
Yes, LI, with our inverted sense of historical events, was much more impressed by the railroading of Winona Ryder on a trumped up shoplifting charge than by changes in that other factory town, DC.
LI has never found Winona Ryder a fascinating femme de film. But her singling out for this ludicrous circus trial because she looked like she was going to steal items from Sachs Fifth Avenue -- this strikes us as an intolerable injustice. Or rather, it is justice with klieg lights, the justice that comes from lynching a name victim for political effect. And now she faces three years. What did Millikan serve, five? What is Ken Lay going to serve? What is Buddy Ebbers going to serve? Winona's mistake was not to have plundered systematically, with Sachs Fifth stock, rather than purloining a dress and a scarf.
The LA times gives an in-depth, and very industry perspective on the Ryder dust up:
"Actress Winona Ryder may be in for a white-knuckle ride over the next few months, but experts across Hollywood said Wednesday morning's conviction for grand theft and vandalism will not have a long-lasting impact on her career."
Here's the meat of the story:
"Alan Meyer of Sitrick & Co., one of the biggest crisis management firms in the country, said the "injury day" was emblematic of how poorly Ryder's ordeal has been handled from the beginning.
"She was only charged with shoplifting, not felony hit-and-run or child molestation. It should have been a 48-hour story, not a six-month story. Why this wasn't resolved very quickly, I don't understand," Meyer said, adding that the pair of convictions were "a real blow."
"The easiest way out of something like this is to acknowledge you did it and throw yourself on the public's mercy. Show remorse. Be contrite. People love that," he said."
People do love that. The contrition. The talk shows. Barbara. Jay. The recollection, in tranquility, of one's motives in that vague moment. The moment the cops caught one being sucked off in a car. The moment one was found with some crack rock. The moment one drove, drunkenly, in the wrong lane on the Sunset freeway for eleven miles. Those breakdowns, so helpfully glossed by the talk show host, the p.r. guy, the studio head, the compliant Vanity Fair interviewer. The return to grace.
But there are other people -- LI is one of them -- who want our Winona to be defiant. Remember Robert Mitchum. He did his time and implied, at every turn, screw the bastards. So screw Sachs! But W.R. 's Free Winona campaign, and her obvious disdain for the charges, is not going down well in the Industry. The honchos are speaking. The honchos want contrition. They want the image to be, depression, she was out of her mind, the transition between this wierd Beetlejuice girl, this vulnerable punk, the black clothes, and the woman, we've watched her grow up. That is the image. We've watched her, she's part of the family. And so she gets the kleptomania out when she is seventeen. Not thirty one. The honchos want the therapeutic talk ladled on. and this is what they are saying:
"Her publicist, Mara Buxbaum, insists business is booming, but the claim that Ryder was approached this year to star in at least one film could not be independently confirmed.
Buxbaum said Ryder will "definitely not be doing the talk show circuit" after the trial, although the actress probably will sit down at some point for the obligatory tell-all interview."
We were reminded of Zola's Au bonheur des dames, his novel about a Paris department store. If someone is smart -- if LI was smarter -- someone would do the op ed piece, or the column piece, this Sunday in the LA Times, with the potted story of kleptomania. Its origins in the 19th century, the discovery that this, like breast cancer, was a disease of upper class women, and the inference that it must be related to some vice, some decay. All the anger of which upper class women are the recipients from the great mass -- from me, from you -- and the way it forms a warp of unconscious energy, and like all energy sooner or later finds a form. In art, in the novel, in a D.A.'s brief, in a psychologist's treatise.
Au bonheur des dames -- which we can translate, approximately, as What the Ladies Like -- is Zola's novel about a department store. The manager of the store, the insufferable Mouret, has already featured as the boarding house stud in Pot-Bouille -- which outgrosses even contemporary novels. Zola saw that between matter and woman there was a suspicious relationship -- something like love. This has already been castigated in our good old Western tradition -- the horror that accrues to matter as matter was once called idolatry. The idea that a thing possesses a divinity -- the psychological roots of this anxiety aren't explored enough. We are palmed off with stories of human sacrifice, or demons, or whatever -- but didn't Jehovah himself appear in a flame? Actually, a flame, through its de-materializing power, is a brilliant vehicle for a God as schizophrenic about matter as the one in Genesis -- the world is good, but evidently, the genitals of two of his creatures, revealed in all their interesting possibilities by munching on a fruit, are another matter. There's a little pussy and dick in every thing we buy, you know.
So Zola scoped out the buying scene. His klepto is a very proper bourgeois with a name that should remind us of Madame Bovary: Madame de Boves. She has a cowlike presence, and discovering Au bonheur des dames, she is ravished -- raped -- by the material on display -- the silks, the lace, the sheets, the textures, the textiles.
Here's how Zola describes her:
Mme de Boves venait de d�passer la quarantaine. C'�tait une femme superbe, � encolure de d�esse, avec une grande face r�guli�re et de larges yeux dormants, que son mari, inspecteur g�n�ral des haras, avait �pous�e pour sa beaut�.
(Madame de Bove had just passed forty. This was a superb woman, with the mane of a goddess, a large face with regular features, and large sleepy eyes, whose husband, a general inspector of horse stables, had married her for her beauty.)
Zola was nothing if not a gross painter of signs. Boves is close to bovine. Her husband is an inspector of haras -- the stables in which horses are kept. The large sleepy eyes -- the eyes of a cow -- seal the deal: this is one of Zola's animal-people.
She can be aroused, of course. But unlike Nana, she is not a woman of mouth and ass, a woman who, superbly, leaves an odor. Rather, to come out of her animal entrancement, she needs things. It is the store that excites her. It is the department store that eventually leads to her doom. At the end of the book, she is shopping with her daughter. As a clerk goes to take apart a packet of lace, Mme de Boves's daughter turns to speak to her:
Mme de Boves ne r�pondait pas. Alors, la fille, en tournant sa face molle, vit sa m�re, les mains au milieu des dentelles, en train de faire dispara�tre, dans la manche de son manteau, des volants de point d'Alen�on. Elle ne parut pas surprise, elle s'avan�ait pour la cacher d'un mouvement instinctif, lorsque Jouve, brusquement, se dressa entre elles. Il se penchait, il murmurait � l'oreille de la comtesse, d'une voix polie:
- Madame, veuillez me suivre.
(Madame de Boves didn't reply. It was thus that her daughter, in turning her soft face, saw her mother, her hands in the middle of the laces, engaged in making them disappear into the sleave of her coat, this Alencon pattern. She didn't appear surprised, she went forward, instinctively, to hide her mother, when Jouve, brusquely, stood before them. He leaned forward and whispered politely in the ear of the countess: 'Madame, if you could please follow me.")
Those Jouves! Just doing their jobs. But there's something dirty in the whole Sachs deal. We hope, when W.R. does the "obligatory tell all interview," that she doesn't grovel. She was the victim of a put up job, and she should imply that at every turn. And damn the honchos.
LI was walking up near the University yesterday when we heard our name. It was an old friend. We said, conventionally, how are you doing, and our friend said well, what did you think?
The news had depressed her utterly, she said.
We said, yeah, it sucked.
What are we going to do, she said? I want to move out of the country!
Well, we said, we don't feel that strongly about it. But we are pretty blue all the same. Damn blue.
How about the arctic wildlife refuge, she said.
Uh, we said, just because they are putting Winona in jail shouldn't effect Alaska in particular.
I'm talking about the elections! she said.
Oh, we said.
Yes, LI, with our inverted sense of historical events, was much more impressed by the railroading of Winona Ryder on a trumped up shoplifting charge than by changes in that other factory town, DC.
LI has never found Winona Ryder a fascinating femme de film. But her singling out for this ludicrous circus trial because she looked like she was going to steal items from Sachs Fifth Avenue -- this strikes us as an intolerable injustice. Or rather, it is justice with klieg lights, the justice that comes from lynching a name victim for political effect. And now she faces three years. What did Millikan serve, five? What is Ken Lay going to serve? What is Buddy Ebbers going to serve? Winona's mistake was not to have plundered systematically, with Sachs Fifth stock, rather than purloining a dress and a scarf.
The LA times gives an in-depth, and very industry perspective on the Ryder dust up:
"Actress Winona Ryder may be in for a white-knuckle ride over the next few months, but experts across Hollywood said Wednesday morning's conviction for grand theft and vandalism will not have a long-lasting impact on her career."
Here's the meat of the story:
"Alan Meyer of Sitrick & Co., one of the biggest crisis management firms in the country, said the "injury day" was emblematic of how poorly Ryder's ordeal has been handled from the beginning.
"She was only charged with shoplifting, not felony hit-and-run or child molestation. It should have been a 48-hour story, not a six-month story. Why this wasn't resolved very quickly, I don't understand," Meyer said, adding that the pair of convictions were "a real blow."
"The easiest way out of something like this is to acknowledge you did it and throw yourself on the public's mercy. Show remorse. Be contrite. People love that," he said."
People do love that. The contrition. The talk shows. Barbara. Jay. The recollection, in tranquility, of one's motives in that vague moment. The moment the cops caught one being sucked off in a car. The moment one was found with some crack rock. The moment one drove, drunkenly, in the wrong lane on the Sunset freeway for eleven miles. Those breakdowns, so helpfully glossed by the talk show host, the p.r. guy, the studio head, the compliant Vanity Fair interviewer. The return to grace.
But there are other people -- LI is one of them -- who want our Winona to be defiant. Remember Robert Mitchum. He did his time and implied, at every turn, screw the bastards. So screw Sachs! But W.R. 's Free Winona campaign, and her obvious disdain for the charges, is not going down well in the Industry. The honchos are speaking. The honchos want contrition. They want the image to be, depression, she was out of her mind, the transition between this wierd Beetlejuice girl, this vulnerable punk, the black clothes, and the woman, we've watched her grow up. That is the image. We've watched her, she's part of the family. And so she gets the kleptomania out when she is seventeen. Not thirty one. The honchos want the therapeutic talk ladled on. and this is what they are saying:
"Her publicist, Mara Buxbaum, insists business is booming, but the claim that Ryder was approached this year to star in at least one film could not be independently confirmed.
Buxbaum said Ryder will "definitely not be doing the talk show circuit" after the trial, although the actress probably will sit down at some point for the obligatory tell-all interview."
We were reminded of Zola's Au bonheur des dames, his novel about a Paris department store. If someone is smart -- if LI was smarter -- someone would do the op ed piece, or the column piece, this Sunday in the LA Times, with the potted story of kleptomania. Its origins in the 19th century, the discovery that this, like breast cancer, was a disease of upper class women, and the inference that it must be related to some vice, some decay. All the anger of which upper class women are the recipients from the great mass -- from me, from you -- and the way it forms a warp of unconscious energy, and like all energy sooner or later finds a form. In art, in the novel, in a D.A.'s brief, in a psychologist's treatise.
Au bonheur des dames -- which we can translate, approximately, as What the Ladies Like -- is Zola's novel about a department store. The manager of the store, the insufferable Mouret, has already featured as the boarding house stud in Pot-Bouille -- which outgrosses even contemporary novels. Zola saw that between matter and woman there was a suspicious relationship -- something like love. This has already been castigated in our good old Western tradition -- the horror that accrues to matter as matter was once called idolatry. The idea that a thing possesses a divinity -- the psychological roots of this anxiety aren't explored enough. We are palmed off with stories of human sacrifice, or demons, or whatever -- but didn't Jehovah himself appear in a flame? Actually, a flame, through its de-materializing power, is a brilliant vehicle for a God as schizophrenic about matter as the one in Genesis -- the world is good, but evidently, the genitals of two of his creatures, revealed in all their interesting possibilities by munching on a fruit, are another matter. There's a little pussy and dick in every thing we buy, you know.
So Zola scoped out the buying scene. His klepto is a very proper bourgeois with a name that should remind us of Madame Bovary: Madame de Boves. She has a cowlike presence, and discovering Au bonheur des dames, she is ravished -- raped -- by the material on display -- the silks, the lace, the sheets, the textures, the textiles.
Here's how Zola describes her:
Mme de Boves venait de d�passer la quarantaine. C'�tait une femme superbe, � encolure de d�esse, avec une grande face r�guli�re et de larges yeux dormants, que son mari, inspecteur g�n�ral des haras, avait �pous�e pour sa beaut�.
(Madame de Bove had just passed forty. This was a superb woman, with the mane of a goddess, a large face with regular features, and large sleepy eyes, whose husband, a general inspector of horse stables, had married her for her beauty.)
Zola was nothing if not a gross painter of signs. Boves is close to bovine. Her husband is an inspector of haras -- the stables in which horses are kept. The large sleepy eyes -- the eyes of a cow -- seal the deal: this is one of Zola's animal-people.
She can be aroused, of course. But unlike Nana, she is not a woman of mouth and ass, a woman who, superbly, leaves an odor. Rather, to come out of her animal entrancement, she needs things. It is the store that excites her. It is the department store that eventually leads to her doom. At the end of the book, she is shopping with her daughter. As a clerk goes to take apart a packet of lace, Mme de Boves's daughter turns to speak to her:
Mme de Boves ne r�pondait pas. Alors, la fille, en tournant sa face molle, vit sa m�re, les mains au milieu des dentelles, en train de faire dispara�tre, dans la manche de son manteau, des volants de point d'Alen�on. Elle ne parut pas surprise, elle s'avan�ait pour la cacher d'un mouvement instinctif, lorsque Jouve, brusquement, se dressa entre elles. Il se penchait, il murmurait � l'oreille de la comtesse, d'une voix polie:
- Madame, veuillez me suivre.
(Madame de Boves didn't reply. It was thus that her daughter, in turning her soft face, saw her mother, her hands in the middle of the laces, engaged in making them disappear into the sleave of her coat, this Alencon pattern. She didn't appear surprised, she went forward, instinctively, to hide her mother, when Jouve, brusquely, stood before them. He leaned forward and whispered politely in the ear of the countess: 'Madame, if you could please follow me.")
Those Jouves! Just doing their jobs. But there's something dirty in the whole Sachs deal. We hope, when W.R. does the "obligatory tell all interview," that she doesn't grovel. She was the victim of a put up job, and she should imply that at every turn. And damn the honchos.
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