Communion Of Dreams


47 hours.

In about 47 hours I’ll be on the shuttle to the airport.

* * * * * * *

There was a news item I saw the other day which indicates that this year’s extreme temperature records are starting to convince more Americans that global climate change is real.

Every summer it seems like a different kind of out-of-control weather pattern decides to strike. In the past month alone, we’ve experienced deadly Colorado wildfires, early-season heat waves and a wind-whipping hurricane, convincing formerly dubious Americans that climate change is actually real, according to the Associated Press.

“Many people around the world are beginning to appreciate that climate change is under way, that it’s having consequences that are playing out in real time and, in the United States at least, we are seeing more and more examples of extreme weather and extreme climate-related events,” Jane Lubchenco, head of the National Oceanic and Atmospheric Administration (NOAA), told the AP.

* * * * * * *

A month ago:

Jamie Dimon, chief executive of JPMorgan Chase & Co., said he was “dead wrong” when he dismissed media reports over trading in the bank’s chief investment office two months ago as “a complete tempest in a teapot.”

“When I made that statement I was dead wrong,” Dimon said in his Senate Banking Committee hearing on Wednesday, pointing the finger at the former chief investment office head Ina Drew, who Dimon said assured him that “this was an isolated small issue and that it wasn’t a big problem.”

* * *

Dimon abruptly disclosed last month that JPMorgan has suffered at least $2 billion of trading losses in a few weeks. The estimate of the trading losses has since increased to $3 billion and maybe more, although Dimon reiterated in Washington that he expects the bank’s second quarter to be solidly profitable and suggested the losses are under control.

Today:

NEW YORK (CNNMoney) — Investors are gearing up for a week full of earnings reports and domestic news, but Europe will once again be hard for U.S. investors to ignore.

Dozens of companies are set to kick off earnings season this week. All eyes will turn to JPMorgan Chase (JPM, Fortune 500) on Friday, as the company will post its trading losses tied to its bad hedge from its London unit.

Some estimate that the loss could be as high as $9 billion, though the bank’s chief executive officer, Jamie Dimon, said back in May that the loss then stood at $2 billion.

* * * * * * *

My garden is about fifty paces behind our house, in a lovely large & open area. There are large trees closer to the house, but nothing back further, so it gets plenty of sun. Decades before we moved in my (to-be) father-in-law maintained a large truck garden there. He had a good eye for the spot.

Every three days for the last few weeks I make multiple trips out to the garden, swapping the feed on the soaker hoses.  Each hose is laid out to water two clusters of plants. And I run each one for about 20 minutes. This whole process takes two hours.

Today, as I walked out to the garden, for the first time I noticed the crunch of dry grass underfoot. I had been watching as the lawn slowly turned increasingly brown, but this was the first time I noticed the actual sound of the grass breaking underfoot.

91% of Missouri is now under what is officially described as either “extreme” or “severe” drought conditions.

* * * * * * *

You’ve been screwed:

The biggest scandal in the world right now has nothing to do with sex or celebrities. It’s about an interest rate called LIBOR, or the London Interbank Offered Rate.

* * *

LIBOR, as it turns out, is the rate at which banks lend to each other. And more importantly, it has become the global benchmark for lending.

Banks look at it every day to figure out what they should charge you for not just home loans, but car loans, commercial loans, credit cards. LIBOR ends up almost everywhere.

Gillian Tett, an editor with the Financial Times, says that $350 trillion worth of contracts have been made that refer to LIBOR.

So literally hundreds of trillions of dollars around the world, all these deals, are based on this number. Now we find out this number might be a lie. At least one bank was tampering with that number for their own profit.

This past week Barclay’s Bank was fined $455 million, and two senior executives (the chairman and the CEO) resigned as investigation into the scandal started to turn up evidence of the scope of the market-rigging.  But many people familiar with the industry say that this is just the tip of the iceberg — that there will likely be a number of other multi-national banks proven to have participated.

* * * * * * *

Climate change? Climate change.

Global Annual Mean Surface Air Temperature Change

Fig A2

Line plot of global mean land-ocean temperature index, 1880 to present, with the base period 1951-1980. The dotted black line is the annual mean and the solid red line is the five-year mean. The green bars show uncertainty estimates. [This is an update of Fig. 1A in Hansen et al. (2006).]

Figure also available as PDF, or Postscript. Also available are tabular data.

(I don’t put up with climate change denial here. Take it to your own blog.)

* * * * * * *

Perspective:

Leaders shape the frame of argument.  They delineate the forms of dissent and opposition.  They define, both by what they say and by what they fail to rule out, whether we have a small “r” republican approach to government, or rule by the manipulators of the manipulated mob.  When they stay silent they are the cowards of the headline, passive bystanders as their followers betray the basic principles of (small “d”) democratic politics.

Greece is a good place from which to think about this.  You don’t have to go back to Agamemnon or to Plato; living memory—the civil war, the colonels, very recent memory indeed offer regular reminders of the fragility of government by consent of the governed.  Words matter here, and have for millennia.

So it is in this place, with that history in mind, that I am reminded once again that the habit of dismissing crap like that spewed by Nicholson and Davis as wingnuts being wingnuts is not acceptable.  The speakers themselves may not count for much, but for a nominally civil society to allow such speech to pass without massive retaliation, actual leadership from those who would lead from that side…well, that’s how individuals get hurt, and democracies die.  It’s happened before, not many miles from where I sit as I write this.

* * * * * * *

In about 47 hours I’ll be on the shuttle to the airport.

Of course, I don’t have everything done which needs to be done. And I really shouldn’t have taken the time to put together such a long and wide-ranging post.

But I wanted to take a moment and thank those who bought books yesterday. It may have been prompted by yesterday’s blog entry, it may not — I have no way of knowing. But thank you. It wasn’t a big day for sales, but it was a nice bump up from the single sale the day before.

I won’t be traveling to Greece, but to Rome. And it won’t surprise me if I find a new perspective or two while I’m there. I’m hoping that the change will allow me to integrate some of the many things I have been thinking about concerning the next book.

Things like spontaneous combustion. It seems that the world is ripe for it.

Again.

Jim Downey

 

 

 

 

 

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