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<channel>
	<title>Below The Fold</title>
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	<link>http://www.below-the-fold.com</link>
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	<lastBuildDate>Mon, 28 Jun 2010 14:06:58 +0000</lastBuildDate>
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		<title>Relying on Beat Reporters</title>
		<link>http://www.below-the-fold.com/2010/06/relying-on-beat-reporters/</link>
		<comments>http://www.below-the-fold.com/2010/06/relying-on-beat-reporters/#comments</comments>
		<pubDate>Mon, 28 Jun 2010 14:06:58 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[AfPak]]></category>
		<category><![CDATA[Media]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3545</guid>
		<description><![CDATA[This Greenwald post does a lot to illuminate the sorry state of America&#8217;s mainstream journalism industry, but I want to focus on this one aspect of the problem, for a moment: These two segments should be put into a museum, or a journalism class, to illustrate what journalism is supposed to be (Hastings&#8217; views) and [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://www.salon.com/news/opinion/glenn_greenwald/2010/06/28/journalism/index.html"> This Greenwald post</a> does a lot to illuminate the sorry state of America&#8217;s mainstream journalism industry, but I want to focus on this one aspect of the problem, for a moment:</p>
<blockquote><p>These two segments should be put into a museum, or a journalism class, to illustrate what journalism is supposed to be (Hastings&#8217; views) and what it has actually degenerated into (Logan&#8217;s).  That&#8217;s why the passage in Politico which ended up being deleted &#8212; on how regular beat reporters would never  have published these McChrystal quotes out of fear of losing favor with their subjects they cover and due to an oozing identification with the powerful &#8212; was so revealing.  Logan has done good and courageous reporting over the years, but she clearly sees herself as part of the government and military, rather than an adversarial watchdog over it, and that&#8217;s what makes her views so illustrative&#8230;</p></blockquote>
<p>I don&#8217;t want to defend Logan by any stretch, but to some extent I think he&#8217;s off here. Namely, I think this is just the nature of being a beat reporter at a daily publication. The demand for producing is such that a reporter can&#8217;t spend days, let alone weeks, putting a story together, so their job is highly dependent on their sources. A beat reporter who burned a source, even for a very big, important story, would find it very difficult, if not impossible, to do their job afterwards. More than being a knock on the reporter, I think it&#8217;s a knock on the job itself, and the real problem isn&#8217;t so much individuals working within the limitations of their job, but the larger industry&#8217;s elevation of beat reporters at daily publications to the top of the journalistic pile. There needs to be much more space for investigative/freelance writers who have more freedom to serve their audience, and non-daily publications who have the time to allow big stories to develop than newspapers. It&#8217;s also why I think fears over the decline of the newspaper industry in particular are overblown; other than being aggregators, they just don&#8217;t serve that large a purpose in the larger media sphere.</p>

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		<title>On Labor, Primaries, and Pressure</title>
		<link>http://www.below-the-fold.com/2010/06/on-labor-primaries-and-pressure/</link>
		<comments>http://www.below-the-fold.com/2010/06/on-labor-primaries-and-pressure/#comments</comments>
		<pubDate>Fri, 11 Jun 2010 19:54:46 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[2012 Election]]></category>
		<category><![CDATA[Barack Obama]]></category>
		<category><![CDATA[Congress]]></category>
		<category><![CDATA[Hackery]]></category>
		<category><![CDATA[Bill Halter]]></category>
		<category><![CDATA[Blanche Lincoln]]></category>
		<category><![CDATA[Glenn Greenwald]]></category>
		<category><![CDATA[Labor]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3534</guid>
		<description><![CDATA[I wasn&#8217;t really planning on writing on this silly spat between the White House and organized labor over the Democratic primary in Arkansas, but there&#8217;s a few different angles I want to address. For starters, while I&#8217;ll agree that this never should have been said publicly, and if the White House finds out who the [...]]]></description>
			<content:encoded><![CDATA[<p>I wasn&#8217;t really planning on writing on <a href="http://www.politico.com/blogs/bensmith/0610/White_House_official_Organized_labor_just_flushed_10_million_of_their_members_money_down_the_toilet_.html">this silly spat</a> between the White House and organized labor over the Democratic primary in Arkansas, but there&#8217;s a few different angles I want to address. For starters, while I&#8217;ll agree that this never should have been said publicly, and if the White House finds out who the source is they probably ought to relieve them of their duties, let&#8217;s get one thing straight; <em>the White House official is right.</em>Labor has every right to do what it wants with its money, but it definitely wasted its resources in this race. For one thing, Halter was hardly a progressive lion, and likely wouldn&#8217;t vote much differently than Lincoln in the Senate. For another thing, Arkansas just isn&#8217;t a state where labor has a lot of clout, making their backing somewhat less valuable than it might have been elsewhere. Indeed, much of Lincoln&#8217;s campaign was premised around attacking Halter for being pushed by national labor unions.</p>
<p>On the other hand, there&#8217;s the argument that the message was sent anyway; that incumbents better not cross labor less they make your life miserable. Perhaps, but I think the people pushing this line the hardest are looking at the situation through rose-colored glasses. The bottom line is that incumbent re-election rates are very high in the U.S., and they&#8217;re downright astronomical for sitting Senators in primaries. And, of course, Blanche Lincoln is now a mark in favor of re-election. So even if we assume that labor or other factions of the party can give an incumbent a headache in the primary, the simple fact remains that the incumbent is overwhelmingly likely to win the primary, and much more likely to get beaten in a general election (especially if they&#8217;re in a conservative state) than in a primary. For someone who&#8217;s only concerned about getting re-elected, this isn&#8217;t really a tough call to make at all.</p>
<p>On the other hand, there&#8217;s the notion of the White House&#8217;s ability to pressure Senators, which <a href="http://www.salon.com/news/opinion/glenn_greenwald/2010/06/10/lincoln/index.html">Greenwald raises again</a> in typically dense fashion. <a href="http://yglesias.thinkprogress.org/2010/06/lincoln-and-leverage#comment-1876675">Yglesias</a> and <a href="http://plainblogaboutpolitics.blogspot.com/2010/06/presidency-is-weak-really.html">Bernstein</a> dispose of the nonsense in good fashion, but I&#8217;d simply add that, again, there&#8217;s a very simple balance of power here; while troubled incumbents may want White House backing in elections, it&#8217;s at least technically possible for them to win without it. On the other hand, the White House can&#8217;t get its agenda through Congress without sufficient votes from members. With 40 Repuplicans lined up to oppose his agenda no matter what, Obama had to keep every Democrat on board for healthcare reform. If Blanche Lincoln refused to support the bill, that was it. There was no clever way out of things; it was get Blanche Lincoln to support the effort or give up on comprehensive reform. Period. The leverage between individual Senators at the tipping point of votes and the White House is always going to tilt in favor of the Senators (at least in domestic policy) because they have votes in the Senate, and you have to get votes in the Senate to pass bills. The question is how do you get those votes. Greenwald wants to imagine a world where you get them by beating marginal Senators with sticks until they&#8217;re cowed like powerless children into doing what you want them to, but that world quite simply doesn&#8217;t exist. Senators just aren&#8217;t powerless, and thanks to the filibuster, they&#8217;re holding the trump card more often than not. The national party or various factions of the party might be able to make life difficult for them, hell they may even be able to slay the dragon, but that vote in the Senate means that the Senator is going to be able to return the favor and then some as long as they have it.</p>
<p>And losing primary challenges does nothing to alter that balance.</p>

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<p class='technorati-tags'>Technorati Tags: <a class='technorati-link' href='http://technorati.com/tag/Bill+Halter' rel='tag' target='_self'>Bill Halter</a>, <a class='technorati-link' href='http://technorati.com/tag/Blanche+Lincoln' rel='tag' target='_self'>Blanche Lincoln</a>, <a class='technorati-link' href='http://technorati.com/tag/Glenn+Greenwald' rel='tag' target='_self'>Glenn Greenwald</a>, <a class='technorati-link' href='http://technorati.com/tag/Labor' rel='tag' target='_self'>Labor</a></p>

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		<title>MLB Umpires</title>
		<link>http://www.below-the-fold.com/2010/06/mlb-umpires/</link>
		<comments>http://www.below-the-fold.com/2010/06/mlb-umpires/#comments</comments>
		<pubDate>Tue, 01 Jun 2010 19:24:53 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[Sports]]></category>
		<category><![CDATA[Baseball]]></category>
		<category><![CDATA[umpires]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3532</guid>
		<description><![CDATA[Is it just me, or does it seem like someone took a nasty piss in the collective corn flakes of Major League Baseball umpires. First Balking Bob Davidson gets in an argument with Carl Crawford and Joe Maddon that would embarrass even the most belligerent drunk buffoon at a bar, then the embarrassing and pathetic [...]]]></description>
			<content:encoded><![CDATA[<p>Is it just me, or does it seem like someone took a nasty piss in the collective corn flakes of Major League Baseball umpires. First <a href="http://mlb.fanhouse.com/2010/05/26/carl-craword-joe-maddon-go-to-war-with-bob-davidson-in-rays-los/">Balking Bob Davidson</a> gets in an argument with Carl Crawford and Joe Maddon that would embarrass even the most belligerent drunk buffoon at a bar, then the embarrassing and pathetic <a href="http://www.bostonherald.com/sports/baseball/other_mlb/view.bg?articleid=1257999&amp;srvc=rss">Joe West</a> tossed Mark Buehrle and Ozzie Guillen after calling Buehrle for two balks and generally making a spectacle of himself, and now <a href="http://mlb.mlb.com/news/article.jsp?ymd=20100531&amp;content_id=10645420&amp;vkey=news_mlb&amp;fext=.jsp&amp;c_id=mlb">Bill Hohn</a> has gone looking for a fight, tossing out Astros ace Roy Oswalt in yesterday&#8217;s game. What is going on? I&#8217;m somewhat tempted to think this all started when West took the liberty to call the Yankees and Red Sox &#8220;embarrassing and pathetic&#8221; for their slow pace of play at the beginning of the year, something that&#8217;s just completely indefensible coming from an official, but the truth is, all of these guys have long track records with this sort of thing, particularly for <a href="http://bases.nbcsports.com/system/mt-search.cgi?search=Bill+Hohn+Disgrace&amp;IncludeBlogs=20&amp;limit=20">Hohn</a> and <a href="http://sports.espn.go.com/espn/commentary/news/story?id=5080967">West</a>, and nothing has ever happened to them before. Indeed, West is President of the world umpire&#8217;s union. So really, why shouldn&#8217;t they do this sort of thing? They know good and well nothing is going to happen to them. If Hohn can survive brazenly antagonizing the Braves, including calling time-out himself to go argue with a manager in the dugout, what can&#8217;t he survive?</p>
<p>Baseball umpires get a lot of flak for blown calls and odd missing balls and strikes. God knows I&#8217;ve criticized them for that multiple times. There are varying degrees of thought as to how bad the problem is, and that&#8217;s fine. But this isn&#8217;t about blown calls or idiosyncratic strike zones, it&#8217;s about the professional conduct of officials. That ought to be non-negotiable. Can you imagine an NFL official criticizing a team for passing too much, causing more clock stoppages than a team who runs the ball 30 times a game? Or an NBA official calling a time-out to stop and argue a foul call with a coach sitting on his bench? Of course not, because these officials would be fired immediately afterwards. And they should, because this sort of thing damages the integrity of the game. And not just because it calls into question the official&#8217;s credibility (and it does), but because it can have actual effects on the game. Roy Oswalt getting ejected forces the Astros to go to an inferior reliever, and makes them over-tax their bullpen as well, something that will affect their game-management for a week or more. Let me repeat that, a decision made by an umpire will have effects on games played <em>for the next week.</em></p>
<p>Officials wield a lot of power on a baseball field, they need to wield that power judiciously. Games, to say nothing of seasons, should not turn on the bad attitude of an umpire on a power trip. Additionally, this isn&#8217;t good for the umpires either. Baseball umpires get enough criticism for missed calls, and several people probably aren&#8217;t giving them enough credit for doing the difficult job their taxed with. And nothing is hurting the umpire who maybe makes an honest mistake on a call, but nonetheless conducts himself with professionalism and integrity at all times than the Hohns and Wests of the world carrying on like arrogant buffoons. More than just baseball, those umpires, as well as the umpires union, need to speak out and marginalize these bad apples, for the good of the game, as well as their own.</p>

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<p class='technorati-tags'>Technorati Tags: <a class='technorati-link' href='http://technorati.com/tag/Baseball' rel='tag' target='_self'>Baseball</a>, <a class='technorati-link' href='http://technorati.com/tag/umpires' rel='tag' target='_self'>umpires</a></p>

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		<title>Flotilla Attack Only a Small Measure of Israeli Barbarism</title>
		<link>http://www.below-the-fold.com/2010/06/flotilla-attack-only-a-small-measure-of-israeli-barbarism/</link>
		<comments>http://www.below-the-fold.com/2010/06/flotilla-attack-only-a-small-measure-of-israeli-barbarism/#comments</comments>
		<pubDate>Tue, 01 Jun 2010 17:12:33 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[Foreign Policy]]></category>
		<category><![CDATA[Israel]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3530</guid>
		<description><![CDATA[Well would you look at that; the bastion of liberal democracy and respect for human right in the Middle East has caused a ruckus by having their military board a humanitarian mission&#8217;s boat (flying the flag of a NATO country), killing at least 10 peace activists on board and injuring dozens more. There&#8217;s a lot [...]]]></description>
			<content:encoded><![CDATA[<p>Well would you look at that; the bastion of liberal democracy and respect for human right in the Middle East has caused a ruckus by having their military board a humanitarian mission&#8217;s boat (flying the flag of a NATO country), killing at least 10 peace activists on board and injuring dozens more. There&#8217;s a lot of things worth saying about how stupid the attack on the relief flotilla was. I don&#8217;t think Israel has done this much damage to their (already shoddy) reputation in decades, and there&#8217;s basically no way to spin this as benefitting them. Egypt is rescinding their assistance of the Gaza blockade in response, and even the United States is an a bit of a jam here, because Turkey is a NATO ally. If they decide to make a major fuss about it, reflexive, unlimited defense of Israel by the United States could threaten the foundation of the most important defense agreement of the 20th century, and further isolate the US from the rest of the West.</p>
<p>The real story here, however, should be the blockade of Gaza itself. Israel has asserted that they offered to let the flotilla send materials through Israel to be inspected, but this is absurd for a couple of reasons. The first is the casual assumption that the blockade is legal, and that Israel has a ght in the first place to decide what does and doesn&#8217;t get sent to Gaza from other countries. The second is that Israel knows good and well that the entire point of the flotilla was to take banned  materials into Gaza, namely building materials Israel has refused to allow in even after they destroyed most of the territory in 2008. Because of this, Gaza remains largely un-rebuilt after the violence, a situation compounding the already miserable existence of the people living in the territory.</p>
<p>It&#8217;s very difficult to comprehend the amount of suffering Gazans deal with everyday. You&#8217;re talking about the most densely populated piece of land in the world, an urban landscape with 1.5 million people living on it. And it&#8217;s basically been demolished. There&#8217;s food shortages, lack of electricity, lack of running water, disease, hunger, oppression, and just general misery. And yes, much of that is compounded by the harsh rule of Hamas as well. But this is one of the weakest, most devastated populations on Earth, and the Israeli blockade is just indescribably cruel. Israeli representatives are arguing today that this wasn&#8217;t a humanitarian effort, but rather an attempt to end the blockade, and to that I say; I certainly hope so. This blockade needs to be ended, and if Israel won&#8217;t do it of its own volition, then the world needs to make it clear to Israel that they won&#8217;t respect it. It&#8217;s not as if there isn&#8217;t precedent. And if it&#8217;s that important to Israel, let them face the choice of confronting British, French, German, and, yes, American boats and planes in the effort to physically enforce their brutal oppression.</p>
<p>The world has been jarred to its senses by the brazen umbrage of Israel&#8217;s actions yesterday, hopefully it winds up shining some light on the brutal policy those killed were seeking to end, and prompts some action from the west to alleviate the intolerable suffering of over a million Palestinians in Gaza.</p>

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<p class='technorati-tags'>Technorati Tags: <a class='technorati-link' href='http://technorati.com/tag/Israel' rel='tag' target='_self'>Israel</a></p>

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		<title>The Less Senate Involvement the Better</title>
		<link>http://www.below-the-fold.com/2010/05/the-less-senate-involvement-the-better/</link>
		<comments>http://www.below-the-fold.com/2010/05/the-less-senate-involvement-the-better/#comments</comments>
		<pubDate>Sat, 29 May 2010 02:51:23 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[Stupid Senate]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3527</guid>
		<description><![CDATA[Subbing for Ezra, Jonathan Bernstein and Dylan Matthews both have excellent posts on improving the Senate confirmation problems. I see a lot of Jonathan&#8217;s points, but I think Dylan is more correct here; the answer is to drastically reduce the number of positions that require Senate confirmation. In theory, the idea is that confirmation gives [...]]]></description>
			<content:encoded><![CDATA[<p>Subbing for Ezra, <a href="http://voices.washingtonpost.com/ezra-klein/2010/05/why_ask_the_senate.html">Jonathan</a> <a href="http://voices.washingtonpost.com/ezra-klein/2010/05/nominations.html">Bernstein</a> and <a href="http://voices.washingtonpost.com/ezra-klein/2010/05/more_action_on_nominations_ple.html">Dylan Matthews</a> both have excellent posts on improving the Senate confirmation problems. I see a lot of Jonathan&#8217;s points, but I think Dylan is more correct here; the answer is to drastically reduce the number of positions that require Senate confirmation. In theory, the idea is that confirmation gives Congress an extra check on the executive, as well as prevents unqualified cronies from gaining key jobs, but in practice I don&#8217;t see any evidence it actually does that. The Senate confirmed Brownie, after all. And in that vein, having a lot of positions requiring confirmation makes it more likely that the Senate will miss something. Reducing the number of appointments the Senate has to monitor will get those positions more scrutiny. As it is, the process is just becoming a tool for the opposition to cause headaches for the President by preventing them from fully staffing their administration, as well as more business to use to grind legislative business to a halt.</p>
<p>And, of course, there&#8217;s the other lesson Brownie left for future Presidents; having a competent administration is in your political best interests. If that fails to compel a PResident to appont qualified underlings, I don&#8217;t have faith in the Senate to stop them. And that&#8217;s to say nothing of the general idea that giving one branch veto power over the staffing decisions of another is rather non-co-equal.</p>

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		<title>Maybe Lindsey is Right</title>
		<link>http://www.below-the-fold.com/2010/04/maybe-lindsey-is-right/</link>
		<comments>http://www.below-the-fold.com/2010/04/maybe-lindsey-is-right/#comments</comments>
		<pubDate>Mon, 26 Apr 2010 20:13:14 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[Congress]]></category>
		<category><![CDATA[Environment]]></category>
		<category><![CDATA[Immigration]]></category>
		<category><![CDATA[Stupid Senate]]></category>
		<category><![CDATA[Lindsey Graham]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3524</guid>
		<description><![CDATA[Yesterday, in the context of criticizing a dumb Thomas Friedman column, I more or less took for granted that Lindsey Graham&#8217;s threat to abandon working with Democrats on climate change if they took up immigration reform next was evidence of bad faith, especially since Graham has been supportive of the immigration reform effort. Jon Chait [...]]]></description>
			<content:encoded><![CDATA[<p>Yesterday, in the context of criticizing a dumb Thomas Friedman column, I more or less took for granted that Lindsey Graham&#8217;s threat to abandon working with Democrats on climate change if they took up immigration reform next was evidence of bad faith, especially since Graham has been supportive of the immigration reform effort. Jon Chait doesn&#8217;t see it that way:</p>
<blockquote><p>Hypocrisy? Well, sure. But it seems unfair to <a href="http://www.washingtonmonthly.com/archives/individual/2010_04/023499.php">accuse </a>him of having &#8220;negotiated in bad faith.&#8221; Graham has been painstakingly attempting to assemble a political and business coalition for legislation to mitigate climate change. He has also been working on immigration reform, but the Democrats&#8217; weak signals of interest before last week have helped contribute to an atmosphere where nobody expected a bill to advance this year, and thus little headway has been made. There has been no House immigration bill, whereas the House has passed a climate bill already. Graham was set to unveil his bill on Monday when Harry Reid pulled the carpet out from under him by announcing that immigration would come first and climate &#8212; which gets harder to do as the elections gets closer &#8212; probably never.</p></blockquote>
<p><a href="http://yglesias.thinkprogress.org/archives/2010/04/the-climate-crackup.php?utm_source=feedburner&amp;utm_medium=feed&amp;utm_campaign=Feed%3A+matthewyglesias+%28Matthew+Yglesias%29">Yglesias</a>, <a href="http://voices.washingtonpost.com/ezra-klein/2010/04/you_wouldnt_like_lindsey_graha.html">Ezra</a>, and <a href="http://motherjones.com/kevin-drum/2010/04/graham-and-climate-bill">Drum</a> all  more or less agree.</p>
<p>For my part, for the sake of not getting stuck on a somewhat minor point, I&#8217;ll assume Graham is, indeed, working with Democrats in good faith here, and really does want to see some sort of action on climate this year, and he&#8217;s angry because he feels Reid has decided not to go that route, essentially hanging him out to dry. It&#8217;s understandable, in a way, but at the same time, that just makes Graham&#8217;s tantrum more bizarre. After all, if Graham really wants to achieve something on climate but thinks Democratic leadership has decided against it, the last thing it would make sense for Graham to do is bail on the effort. That doesn&#8217;t make action on climate more likely, and gives Democrats an angle to blame Republicans for the lack of action on climate. In every way, it makes it less likely that climate legislation will be taken up this year, if you assume that Graham means it at least.</p>
<p>The key point here is the last paragraph in Ezra&#8217;s post. We sort of take it for granted that Congress can only handle one issue at a time, but there&#8217;s no reason that has to be true. Graham is ostensibly supportive of both climate legislation and immigration reform, and if he remains committed to getting something done on either or both fronts this year, he can let Harry Reid know that he&#8217;d like for work to be done on both. Reid is backing off somewhat today in the face of the amount of work that&#8217;s already been done on climate, as well as Graham&#8217;s threat, I&#8217;d imagine, but if there&#8217;s a Republican or two committed to working with the Democrats on one, or both, issues, there&#8217;s no reason something can&#8217;t be done on climate and immigration this year.</p>

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<p class='technorati-tags'>Technorati Tags: <a class='technorati-link' href='http://technorati.com/tag/Lindsey+Graham' rel='tag' target='_self'>Lindsey Graham</a></p>

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		<title>How Much Does &#8216;Too Big to Fail&#8217; Matter?</title>
		<link>http://www.below-the-fold.com/2010/04/how-much-does-too-big-to-fail-matter/</link>
		<comments>http://www.below-the-fold.com/2010/04/how-much-does-too-big-to-fail-matter/#comments</comments>
		<pubDate>Mon, 26 Apr 2010 16:58:24 +0000</pubDate>
		<dc:creator>Brien</dc:creator>
				<category><![CDATA[Economics]]></category>
		<category><![CDATA[FinReg]]></category>

		<guid isPermaLink="false">http://www.below-the-fold.com/?p=3522</guid>
		<description><![CDATA[One thing that&#8217;s throwing me off a bit in the debate over how much effort to put towards breaking up large banks is this notion of focusing on the idea of being &#8220;too big to fail.&#8221; That is, an institution getting so large that its failure will send intolerable ripples through the rest of the [...]]]></description>
			<content:encoded><![CDATA[<p>One thing that&#8217;s throwing me off a bit in the debate over how much effort to put towards <a href="http://yglesias.thinkprogress.org/archives/2010/04/should-we-break-up-large-banks.php">breaking up large banks </a>is this notion of focusing on the idea of being &#8220;too big to fail.&#8221; That is, an institution getting so large that its failure will send intolerable ripples through the rest of the industry/economy, making it imperative that the public not allow such a failure. This is, obviously, the motivating factor behind the bailout of the financial industry and, to a lesser extent, General Motors.  But it seems to me that the concept of resolution authority mostly eliminates that need. The problem with allowing even a relatively small firm like Lehman Brothers to fail is the overall impact it has on the entire industry, essentially creating a panic. Given those sorts of circumstances, some sort of public authority needs to make sure a failure doesn&#8217;t happen. But if the FDIC has the authority to seize failed shadow banks and unwind them orderly and slowly, that theoretically takes care of the problems associated with panics and failures. This, of course, is why we don&#8217;t have panics related to deposit banks anymore; there&#8217;s a process in place for managing these kinds of failures that&#8217;s well understood by the industry, and people can anticipate what it means for their firms. Plus, receivership eliminates the problem of failed banks flooding the market with assets, devaluing similar assets on everyone else&#8217;s balance sheets. In this sort of structure, no one is too big to fail, because receivership is there as a sort of safety net to slowly manage the collapse of the bank. There are other problems associated with large banks to be sure, so I think the excess attention paid to failures is probably distorting more than it&#8217;s clarifying.</p>

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