Notes for a future study of insanity among the governing class

PARIS — The Credit Suisse Group, the Swiss banking giant, on Thursday reported a first-quarter loss nearly three times worse than analysts had expected as it wrote down $5.3 billion in soured investments.
The bank, based in Zurich, reported a net loss of 2.15 billion Swiss francs, or $2.1 billion, in the first quarter, compared with net income of 2.8 billion francs a year earlier.
“On balance, I was quite pleased” with the results, said Peter Thorne, an analyst with Helvea in London. “In this market, if an investment bank doesn’t report $20 billion of write-downs, you tend to be quite relieved.”

It is no surprise to LI that a system in which inequality of wealth has sharpened as much as it has in the U.S. would spawn a whole new kind of fantasy and reality in the press and the public discourse. So I suppose it comes as no surprise that the Daily Mail - a British tabloid - has a sharper article about inflation than you will read in, say, the NYT. The Daily Mail decided to create its own basket of goods and use them as an index of inflation, and of course what they discover, once you wipe away the wonderful fall in prices of plasma tv, is that inflation as it should be studied - you know, how much extra is coming out of the pocket of your average household income - is a lot higher than anything government reports can account for. Although I must admit, I did admire the butter prices over there in Britain:

"A pack of English butter is up by 36p to 94p..."

Wow, about $1.80 for butter!

PS - Our far flung correspondent, Mr. T., refers us to this article, which tells us - where all the bees went! You will notice that the Floridian beekeeper at the center of the article is doing more productive work for you and me and the earth than all the hedge fund traders put together. Naturally, then, he lives on charity.

I'd never seen anything like it in the State of Texas

I love a millionaire --

The congressional investigation of the credit agencies that looked over the pool of steroidish securities that were pumped into the financial industry and gave them all triple A ratings starts today. The biggest of those agencies is Moody’s:

“Over the last decade, Moody’s and its two principal competitors, Standard & Poor’s and Fitch, played this game to perfection — putting what amounted to gold seals on mortgage securities that investors swept up with increasing élan. For the rating agencies, this business was extremely lucrative. Their profits surged, Moody’s in particular: it went public, saw its stock increase sixfold and its earnings grow by 900 percent.

By providing the mortgage industry with an entree to Wall Street, the agencies also transformed what had been among the sleepiest corners of finance. No longer did mortgage banks have to wait 10 or 20 or 30 years to get their money back from homeowners. Now they sold their loans into securitized pools and — their capital thus replenished — wrote new loans at a much quicker pace.

Mortgage volume surged; in 2006, it topped $2.5 trillion. Also, many more mortgages were issued to risky subprime borrowers. Almost all of those subprime loans ended up in securitized pools; indeed, the reason banks were willing to issue so many risky loans is that they could fob them off on Wall Street.”

Now, outside of Texas, Moody is just a name – but inside of Texas, it is the name of one of the great crazy Texas families. There is something delightfully ludicrous in the fact that Moody’s makes its money by selling its sound judgment, given that the Moody family is better known for inhouse squabbling, jailed siblings, and sex scandals. The Moody family is inseparable from their scene: Galveston. There are people who have been to New Orleans. And they’ve been to France. And so they think they know the world. Ho ho ho, if you haven’t been to Galveston, you are still a little wet behind the ears in this world.

Famously, Galveston stopped on September 8, 1900, when the great hurricane hit, which plucked out 8,000 people – out of 32,000 – and killed em dead. Galveston was the richest city in Texas at the time, as you can see by simply going there and strolling among the mansions. Many of those old mansions remain – they were built to survive about anything except the neglect in which they have now dwindled for a century. But even so – even as Houston took over, as it was going to do anyway, as the most important port in Texas – Galveston still had wealthy families. It was fabulously located, for instance, to become one of the great smuggling cities in the Prohibition era. Like New Orleans, Galveston thrived on vice – gambling and prostitution. And it had the Moody family.

The Moody family started out in the cotton trade, then went into insuring cotton merchants, and then went into insurance. They diversified into other industries – hotels, for instance. In the twenties, they about controlled the island – built the one skyscraper in Galveston, bought the paper, rolled in money from the increase in business brought about by oil. And the family proper began to act like the second coming of the Borgias. One of the really great, spoiled Moody’s back then was Shearn Moody – his wife a showgirl, himself a playboy and a good hater. Running the newspaper gave him plenty of space to vent, which he like to do about various and sundry enemies. Here’s a quote from Cartwright’s book on Galveston about Shearn Moody:

“At the peak of the Depression, the Moodys were making money hand over fist, much of it from repossessions. Shearn Moody filled his home on Cedar Lawn Circle with linens, silver and china that had once belonged to creditors [sic]. Conrad Hilton, who managed the Moody hotel chain in the early 1930s, once described Shearn Moody as the kind of man who liked the Depression” “People are desperate for money,” Shearn had told Hilton. “It’s the time to drive a good bargain.”

Shearn Moody was almost to a tee the kind of millionaire portrayed in There will be blood. Here’s another anecdote. Hilton had lost his hotel to the Moodys when they foreclosed on him, but they offered him a deal – merger with the Moody hotel chain, which he would manage:

“But Hilton instinctively mistrusted the younger Moody. He couldn’t forget the remark Shearn had made about the Depression – or the passion with which Shearn regarded his enemies. Shearn absolutely doted on his enemies: he was addicted to them. When Hilton asked Shearn why it was that nine out of ten men who did business with him ended up as enemies, Shearn replied coldly: “Because that’s the way I like it. I’d like it even better if it was ninety-nine out of a hundred.”

Shearn Moody died before his father, so it was due to the old man that the family money ended up in a tax dodge. However, it wasn’t just the tax dodge that was attractive about the Moody Foundation – it was also the fact that the Old Man’s daughter and his grandchildren would be left forever dependent on this organization he had built. Which is how we segue into the colorful life of Shearn Moody, Jr. Shearn Jr spent his young adulthood establishing a reputation as a great 60s partier. Famously, his bedroom had a door which opened on a slide that you could use to go down to the pool. Here’s an anecdote about Shearn Jr.:

“During the 1960s, the ranch was infamous for its wild parties. Billy Furr, a frind of Bobby Moody, remembered that when he walked throught he front door on one occasion he was greeted by a naked woman who asked him to sign the guestbook. “Then I looked around the room,” Furr said, “and realized there were several dozen naked men and women standing around. Somebody told me they were the cast of the San Francisco Ballet. I never found out if that was true or not, but I’d never seen anything like it in the State of Texas.”

Shearn Jr. had many adventures, some that involved Watergate – he claimed he was targeted by Nixon for dirty tricks as he was a Democratic party funder – and some involving a possible assassination threat to George Wallace, and some involving penguins that were imported for the swimming pool, and some involving money that landed Shearn Jr. in jail for a bit.

This is the Moody family, whose company rates your mortgage pools, America. Don’t that beat all, now. Us Texans are gonna be the death of this country yet!

Everything is fucked up, I'm dying of the pox

In 1619, a collection of poems by different authors was published in Paris under the title: Parnasse satyrique. The star poet in the group was Théophile de Viau. The poem he published went like this:

Par le sieur Theophille

Philis tout est f…tu je meurs de la verolle
Elle exerce sur moi sa dernière rigueur :
Mon V. baisse la teste et n'a point de vigueur
un ulcére puant a gasté ma parole.

J'ai sué trante jours, j'ai vomi de la colle
Jamais de si grand maux n'eurent tant de longueur
L'esprit le plus constant fut mort à ma langueur,
Et mon afficlition n'a rien qui la console.

Mes amis plus secrets ne m'osent approcher,
Moi-même cet estat je ne m'ose toucher
Philis le mal me vient de vous avoir foutue.

Mon dieu je me repans d'avoir si mal vescu :
Et si vostre couroux a ce coup ne me tuë
Je ne fais vuex désormais de ne …tre qu'en cul.

The translation goes like this:

“Philis, everything is f..ed up; I’m dying of the pox
which has me strictly bound in the last throes;
My D..k hangs its head, is on the rocks
and a stinking sore spoils my attempts at prose.

For thirty days I’ve sweated, vomited up bowls
I’ve never seen a sickness last like this!
my exhaustion would have killed firmer souls
and my affliction brings me no consoling bliss.

My most secret friends dare not approach me.
I don’t even dare to touch myself in this stew –
And all this Philis, comes from ..cking you.

My god, I repent of having lived so badly!
And if your anger doesn’t kill me with this blast
I swear that from now on, I’ll only ..ck in the ass.”

(Sorry for my distortions – wanted to see if I could find a few appropriate rhymes, though of course my rough draft scans like a hog in heat).

I’m interested in Théophile as one of the early freethinkers who are separated by a degree or two from Gassendi. He is also, famously, one of the regrets of French literature – what if the French baroque had been allowed to flower, much as the English Jacobin writers were? There is a view, first expressed I believe by the romantics, that the imposition of rules of literary bienseance emptied French poetry of what Theophile called the “natural”. And that old fight isn’t worth fighting.

More interesting is that Théophile was put on trial for this poem, and nearly had the same fate doled out to him as to the Protestant printer, Etienne Dolet - who is, or should be, to translators what the skull is to the contemplating monk – for Dolet, poor guy, trying to convey a bit of Plato in French, translated a line in the Apology Apres le mort tu ne seras plus rien de tout, instead of tu ne seras plus, and so – for that rien - was burned at the stake. That is one way to ensure literalism!

There’s an amusing gloss on the enterprising use of ellipses and acronyms in obscene poems in Joan E. DeJean’s The Reinvention of Obscenity, who claims that the startling thing about Theophile’s poem was the ‘cul’ – a vite as a V. or a foutre as a …tre was, in a sense, a bow to the common dignity, but that ass, stuck at the very end of the poem, it was practically mooning the authorities. I love these discussions that are close readings of readings – the third life’s life. They are so Nabokovian. DeJean introduces the topic like this:

“These four-letter words, primary obscenities, stand out as the principle mark of this basdy poetry’s sexual transgressiveness. With one exception, cul (ass), which was to become key in Theophile’s case, they are never written out. Instead, in an act of self censorship that initially may have helped save the volumes from official prosecution, the words were abbreviated in various ways, and different types of punctuation were inserted to stand as a visual mark representing the suppressed content. This punctuation is the typographical equivalent of the fig leaves that began appearing in Renaissance engravings to veil male and female genitalia without fully hiding the contours.

The typographical fig leaves are, however, less efficient than their visual counterparts. A leaf painted on a representation of a human body means that the viewer, even though he or she obviously knows what presumably is there behyind the cover-up, is nevertheless denied the right to see the offending sexual characteristics. In the case of a text, however, a reader – and there is no reason to imagine that seventeenth century readers were any more conscious of these textual barriers than are their counterparts today – simply replaces the missing letters without a thought, so much so that he or she is immediately unaware that anything has been left out. This is truly the zero degree of censorship. Since, however, it obviously served an important function, I will consider it for a moment more.”

And so she does. LI will return to Theophile’s trial, and then to some of his amazing prose pieces.

honeyed drops of spiritual delight

“They don’t enter into their system by the door, they enter in by the window…” Bayle, article on Epicurus

My sometimes commenter, Chuckie K., asked a very good question about my last Bayle post, which, you will recall, ended with a question about whether belief guides behavior. To which Mr. K. said: “Today I'll ask a real question. Is this, "if belief makes no difference to your behavior" this question, or is "if belief does not always completely determine significant behavior'"

Well, that’s a good, hard question, and a hatcher of other hard questions – for instance, do beliefs stand in some apologetic relation to behavior? Do we seek out beliefs to excuse our desires? In fact, defending Epicurus, Bayle opts for the idea that we could, that it is possible, to construct our beliefs according to the facts as we see them, regardless of what we would want to be the case:

“The doctrine that rejects the providence of God, and the immortality of the soul, steals an infinity of consolations from man. Plutarch proves this solidly, that after having read what he exposed, one cannot be sufficiently astonished at the power that our first impression of certain objects have on our mind. The first idea that presents itself to those who wish to exam the state of irreligion that it is about the world’s idea of a happy liberty in which one satisfies all one’s desires without any fear, without any remorse. This idea is so rooted in the soul, and so occupies its capacity, that if someone wants to tell us that the estate of a pious man is incomparably [better], in the way of temporal advantages, to that of an epicurean, we would reject it as an absurd lie. And yet this so called lie has on its side a crowd of strong reasons, as Plutarch makes us see. The good faith of this author in this part of the dispute seems to me to be considerable, in as much as he must have known how much his reasons disculpate epicureanism; for it is certain that in denying the providence of God and the immortality of the soul, one is deprived of a thousand sweetnesses and a thousand consolations; it isn’t by motives of interest, by amour proper, by attachment to volupté, that Epicurus chose the philosophical hypothesis that he taught. He would have chosen another, if he was driven by those motives. “

So one way we could come at the question of belief is to ask about the building of systems of belief. And in fact, Pierre Force’s interpretation of Bayle is not about this or that stray belief – my belief, for instance, that the red light sign will be obeyed by the slowing, oncoming car as I walk across the street in front of it – but rather these vaster temples of belief, which are about the ways the world is made. In Mr. D’s modification of Force’s assertion – “belief does not always completely determine significant behavior” – is the liberal hope here. On the one hand, belief does not so determine behavior that there is no space of tolerance possible between two opposing, absolute beliefs – and on the other hand, that it determines it enough that there is some use in having these vast beliefs.

But notice that the liberal path is fraught with peril. It can never be emphasized enough that the enlightenment leads not only to Kant, Jefferson, and my Republican grandparents, but that it also leads through Sade to Bazarov to… Patty Hearst. Or perhaps I should say that these romantic figures express, with exaggerated gestures, the nihilistic fall of the belief in belief – the belief that anything, and thus nothing, is true or valuable. This nihilism even eats at the aura of seriousness surrounding belief, taking away the shame of going from, say, Maoism to Southern Baptist Fundamentalism by way of alternative medicines and your recovered memory of a UFO abduction.

In the sense that I take nihilism, rather than discipline a la Foucault, as a privileged vantage point to see what is happening in the Enlightenment, I guess you could say that LI is just your typical canned Nietzschian. And of course I need to make the links a lot clearer here – but I do want to… to gesture to what is in the background for these small circles, in the seventeenth century, who began purposefully relating all human endeavor to volupté.

Advice for Britney

LI, making a play for information domination on the Britney issue, has been bluesing about the People story that Brit is going to be starring, again, on some forgettable tv sit com. What is up with this? I know what is up. The artiste in the mouseketeer is being callously starnapped back into the profit stream by her pa - and are we, spectators all, expected to put up with this abhorrent strangling of Britney’s desires in, so to speak, their cradle? No wonder she is bored with her life! My advice – are you listening, Ms. Spears? - is to read about Patty Hearst, or at least listen to this Stereo Total song about Patty Hearst, romantic terrorist. And remember, Tania was never an exceptional earner – you could kick that bitch around the block! You have more revolutionary potential in your little finger than she ever had. Take back your kids, boot your dad, go to Vegas and act like Frank Sinatra to your heart’s content – which means applying the maxim that has an eternal currency among the great celebrity elite (in the VIP area), to wit, to be famous is so nice/suck my dick, lick my ass.

He read Bayle

Via George Huppert’s The Style in Paris: Renaissance origins of the French Enlightenment, LI found this story about the Marquis D’argens in Jean Philibert Damiron’s Memoire sur le Marquis D’argens:

He was never lacking in adventures, and if it wasn’t in one genre, it was in another. In returning from Italy and during the trip across [the Mediterranean] , he encountered a storm, the frightened sailors took vows to all the virgins of their countries of origin; a monk said his breviary in sobbing; two Calvinists trembled while reciting the psalms of Marot; for himself, he read the Pensees diverses of Bayle, and those who saw such cold bloodedness imagined that he was a saint, to whom the tranquility of his conscience procured his repose. – He read Bayle, that was his own breviary, his preferred book, the assiduous nourishment of his soul, which opened more and more to skepticism. If to doubt is to repose, it was that repose which his author of predilection bestowed upon him. [Memoires, 13]

LI likes this story. It is a perfect cameo of the libertine sub-culture that extended into the eighteenth century, connecting the time of Voltaire with the time of Cyrano de Bergerac. Something is happening here when the libertine becomes the double of the saint, doubt becomes the double of belief, and Bayle becomes the double of the breviary. Last year, LI posted a lot about the notion of ‘volupte’ as a sort of intermediary between the humanist’s stoicism and the greatest happiness of the political arithmeticians that Burke denounced in his Reflections on the French Revolution. As Damiron confesses at the beginning of his Memoire, D’argens was not a great personality:

“The marquis d’Argens, in fact, was not a great character, and what is more, he was not an eminent thinker, and in more than one circomstance of his life, he displayed a personality that was little enough serious. He wrote much and on all things, but with no rare distinction, and of philosophy in particular, on which he often touched, he didn’t illustrate with some new light a single thing.”

He was, to use the hobbled language of the advertisers, an early adopter. He adopted a sensibility. Which brings us to a number of questions.

These questions go back to Bayle, and a point made by Pierre Force in his Self Interest Before Adam Smith. Force notes that Bayle, the encyclopedic skeptic of the 17th century (a man whose graphomania, very much of the era, has been rewarded by posterity by being read by practically no one but being preserved as a name, just as a piece of wedding cake might be preserved in a freezer for decades, not to be ceremonially eaten, but as a gesture of etiolated piety) was considered an atheist not because he advocated atheism, but because he stripped belief of the coordinate conduct it was assumed that it entailed:

For Bayle, the principle of pleasure explains the variations that may be observed in the behavior of atheists. At fist sight, someone who does not believe in the rewards and punishments of eternal life would be inclined to indulge in every kind of physical pleasure. Yet we observe that some atheists are more restrained on that count than many Christians. Whether someone indulges in drunkenness is not a matter of opinion regarding the existence of a punishment for it in the afterlife. It is simply a difference in humor and temper. Some people love to drink, others don’t:

“If you examine things in general, you suppose that, as soon as an atheist realizes that he can get drunk with impunity, he will get drunk every day. But those who know the maxim, Trahit sua quemque voluptas, and who have examined the heart of man more carefully, do not go so fast. Before judging the conduct of this atheist, they inquire about his tast. If they find that he likes ot drink, that he is very sensitive to this pleasure, that he prefers it to his reputation as a good person, they conclude that he actually will drink as much as possible. But they do not conclude that he will drink more than countless Christians, who are drunk most of the time. …”

Bayle believes that, in general, differences in behavior cannot be explained by differences in belief. The adherence to such and such system of belief is irrelevant when it comes to explaining concrete human behavior. Preferences are not a matter of opinion.”

Here we stumble upon one of the great themes of modernity, which runs through Balzac, Dostoevsky, Freud, Alcoholics Anonymous and the political industry of polling – the relationship between what we believe and how we conduct ourselves. For after all, if belief makes no difference to your behavior, why believe anything?

Mankind's impossible task: unhappiness

“Fyodorov used to say that the dead had to be resurrected,mankind should set impossible tasks for itself, and after its rebirth, mankind would exit earth as if from a waiting room, and leisurely take over the cosmos.” – From Victor Shklovsky’s Energy of Delusion

LI has not read Nikolai Fyodorov’s Common Task of Mankind, in which he envisions our collective human energies devoted to resurrecting the dead and such. However, I would not laugh too hard at the project of resurrecting dead as the impossible task that humanity has set for itself, since it is my contention that humanity has set itself an equally impossible task, with equally unthought of but horrendous consequences – the spread of happiness to all peoples at all times. To each his obsessions; mine, of course, is to find out how the norm of happiness came to be the heuristic upon which we all agree, the ultimate reference for the political.

David Leonardt’s column Wednesday took up some papers that dispute the Easterlin paradox. According to research by Richard Easterlin, over time, as societies grow richer (as, for instance, Japanese society), polls indicate that populations don’t necessarily grow happier. The shorthand for this is that more money doesn’t bring more happiness. This has a gladsome sound to the Lefty ear, for more money is connected with more monopoly capitalism, and who wants monopoly capitalism? But Easterlin’s conclusion and data base have been attacked by Betsey Stevenson and Justin Wolfers of the Brookings Institute:

“In the paper, Betsey Stevenson and Justin Wolfers argue that money indeed tends to bring happiness, even if it doesn’t guarantee it. They point out that in the 34 years since Mr. Easterlin published his paper, an explosion of public opinion surveys has allowed for a better look at the question. “The central message,” Ms. Stevenson said, “is that income does matter.”
To see what they mean, take a look at the map that accompanies this column. It’s based on Gallup polls done around the world, and it clearly shows that life satisfaction is highest in the richest countries. The residents of these countries seem to understand that they have it pretty good, whether or not they own an iPod Touch.
If anything, Ms. Stevenson and Mr. Wolfers say, absolute income seems to matter more than relative income. In the United States, about 90 percent of people in households making at least $250,000 a year called themselves “very happy” in a recent Gallup Poll. In households with income below $30,000, only 42 percent of people gave that answer. But the international polling data suggests that the under-$30,000 crowd might not be happier if they lived in a poorer country.”

At this point, the traditional move is to criticize the quality of the happiness of those very happy rich people. For instance, take this householder who wrote in to a Q and A at the Washington Post today about threats to his income:

“Arlington, Va.: Who is in this working class? I make $150,000 a year and my wife makes $100,000 a year. I work 50 hours a week and my wife works 45 hours a week. We have investments we have made, but we do not live off these investments. We are both first in our families to be college-educated and have worked hard to get where we are at 32 and 31. Why are we not considered working-class?
In addition, Obama and Clinton want to increase the Social Security, income and investment taxes. Where in the Constitution does it say that people like my wife and I have to support people who did not plan wisely (housing bailout, retirement and health care). I don't mind paying my fair share, but my family is not living off inheritance, and has worked hard to get where we are. Why are we not being viewed as working-class for having some self-made success? Will this class warfare work? It blew up on the Democrats in '00 and '04.”

I imagine one could say, we have to discourage that man and his wife from putting in 95 hours a week at 32 and 31 to make their 250 thou per year. One could say that this is a recipe for unhappiness. But I don’t think so. I think this is a recipe for a disastrous, total happiness. I think that that much money combined with that much work might well make happiness the cancer that eats up all other emotions, leaving the man and his wife liable only to the panic that someone might take away some of their pile. I think that year after year, the drunkenness of happiness will so fill their souls that the addiction will be too great to ever break.

Mankind’s common task, which, say, Malthus, in 1800 would have every right to look at as a crazy and impossible dream, is now a social reality. Within our society of artifice and technology, the structures of happiness rise, triumphant, on every hand. And the people that are born and bred into this structure even have many virtues. They are more peaceful. They are prey to fits of anger, but generally sober in their habits. They have lost any sense of public spirit, but, within the narrow confines of their private sphere, they are generous when they can be.

So what is there to bitch about? Well, I dream of a new impossible common task, in which finally emotion is separated from the moral norm – in which the range of emotions that the human beast can produce find a more ample and unashamed representation in the material relations that bind together our society. In which, in other words, ennui, melancholy, anger, dread, and the vast block of nameless, mixed moods that surround reflection are not viewed as opening acts for the happiness we all strive for – since we do not all strive for happiness. Since that striving makes little sense. Since it is founded on a very imprecise sense of what happiness is (a judgment about life? a passing mood?). Finally, I do not think there is any evidence whatsoever that we naturally strive for happiness except in certain circumstances, just as we strive for this or that feeling. It is one among many, not a thing to justify a social order or a life.

To talk about the dead is a waste of time.
I can’t think of a better subject