Tag Archives: financial crisis

Why Don’t Newspapers Take Unsolicited Submissions Seriously?

IMG_0635

Originally posted on The Huffington Post

A telling paragraph in Michael Lewis’s review of ‘Why I Left Goldman Sachs’:

The author recounts how he spent most of the six months leading up to last March working at Goldman by day while writing up his deeply felt grievances against Goldman by night. When he finished he had a 1,500-word counterblast but no place to put it: he e-mailed it to the general address for blind submissions to the Times op-ed page. He heard nothing for a month, and so finally dug out the e-mail addresses of four Times editors, and sent his piece to all of them. The next morning the Times got in touch with him.

It’s great that ‘Why I Am Leaving Goldman Sachs‘ eventually got noticed and published, but I can’t help thinking about all the other pieces submitted to that blind submissions address that weren’t.

A lot of people are sitting on fascinating stories about the places where they work, where they live, what’s happening in their lives. This is what journalists, what journalism, is supposed to be concerned with. But sometimes it seems like newspapers are only interested in great stories when their own reporters get to tell them.

Earlier today I read this New Yorker article about ‘slow journalism’, the kind produced by reporters who are embedded, walking a beat, just hanging out until something happens so fascinating the rest of the world needs to know about it. Newspapers don’t have the money for foreign bureaus anymore, the article laments, so now reporters have to parachute into financial reform, scientific debates, economic indicators, write it up and whoosh on to the next one.

In Beijing, the joke among hacks is that, after the drive in from the airport, you are ready to write a column; after a month, you feel the stirrings of an idea-book; but after a year, you struggle to write anything at all, because you’ve finally discovered just how much you don’t know.

That’s probably true, and probably sad. But I wonder if what it really means is that, in a world where anyone can write a blog post or take a photo or make a documentary, we need reporters less than we need harvesters. 

Thousands of people live in fascinating places, are experts in their fields, work in fucked-up and hilarious institutions. Many of these people can tell you their story, and why it matters, better than a reporter ever could.

I’m sure the New York Times gets all kinds of cranks sending them op-eds from curtained rooms, but I’m sure they also get thousands of  stories that are one editor away from fascinating, thousands of people who can’t tell a new story every week but have one great one they’re struggling to tell.

Newspapers are supposed to teach us what’s true in the world. Sometimes a professional reporter is the best person to do that. Sometimes not. I hope that, as journalism becomes whatever it’s becoming, it finds time not just to tell us stories, but to find them.

4 Comments

Filed under America, Journalism, Serious

Stuff I don’t have an opinion on: The auto bailout

-

 

James Surowiecki

:

I don’t really understand the logic of spending $800 billion on a stimulus package designed to create jobs and keep the economy from sinking into a deflationary spiral while at the same time, in order to save $20 billion, forcing the automakers into bankruptcy, which would threaten hundreds of thousands of jobs up and down the auto-supply chain.

I seriously have no idea what I think about the auto bailout (or re-bailout, or attempted fuck-decluster, or whatever) at this point. I keep flip-flopping every time I read anything about it. It seems like for every argument there are five counter-arguments.

It's funny how this New Media Landscape we're all talking about, what I've been calling The Opinion-Fisting of The News-Hole, is making me less sure of my opinions rather than more. It's enough to make you want to get back to the simmering mediocrity of the '90s.

Read and post comments | Send to a friend

5 Comments

Filed under Random

The housing bailout is a dish best served cold

-

A letter from a reader of a popular conservative blog, headlined 'No Irresponsible Citizen Left Behind':

I live in Santa Cruz, California, where the median home price shot up close to $900,000 at the peak of the real estate boom. My wife & I realized that there was no way that we could afford to buy a home responsibly, so we reluctantly decided to rent forever. Many of our friends who are financially reckless decided to buy condos with no money down adjustable rate interest only loans.

I don't understand why the government should bail these people out. If I had known that reckless financial behavior was going to be bailed out I would have bought one of these homes. I know that we need to fix the economy, but I feel like we are going to be punished for being responsible.

The government should bail these people out because not doing so would be disastrous for the economy. Dick.

I know it's hard to fathom, but the collective prosperity of the future may just preclude us from punishing people who believed that they were rich for a little bit there. What possible purpose would it serve to let these people go into bankruptcy, other than diddling your own 'if I can't have any M&Ms then nobody can have any' g-spot?

One of the great invalidators of right-wing political movements in America and Europe is this placement of retribution above all other considerations. It is not particularly prudent, in the long run, to allow a significant percentage of your citizens to go bankrupt and lose their houses. Nor, while we're at it, is it particularly prudent to have a permanent, impoverished underclass just because you believe welfare 'rewards' people for bad behavior such as having children.

Most left-wingers don't support social security, quality public education and free healthcare because we think having a baker's-dozen family and being unemployed need rewarding. We support those things because they make everyone better off. Don't worry, rent-monster, not even Nancy Pelosi can tax away your smug satisfaction as you help your friend load his couch into the We-Repo-U van in Santa Cruz. Some things are just too pure for the government hand.

Read and post comments | Send to a friend

Leave a Comment

Filed under Random

The paradox of the recession

-

 

Maybe the hole in my economics knowledge is exactly the shape of this question, but I'm confused.

OK, so:

1. The reason we're in this hot recessionary mess is that we all spent too much money on houses and cars and clothes, mostly on credit. Our debts got swapped around, and as soon as we couldn't make our payments the banks that lent us the money withered like the dinosaurs after the meteor.

2. So now we're fucked. The markets need regulation to ensure that this doesn't happen again. Citizens need a new era of responsibility. And barely employed, barely literate low-rungers like me need to accept that they'll be renting until their mid-40s.

3. But the economy needs stimulus. Buying stuff keeps workers working, and businesses businessing. We need tax cuts to get us stimulating the economy, credit card swipe by credit card swipe. 

Resolved: The profligacy of the last 10 years needs to be reined in for us to avoid a future recession. But we all need to become more profligate to get the country out of this one.

Again, maybe this isn't a paradox and I just don't understand how, like, economies work. But as soon as I find myself rooting for us to stop buying so much stupid shit, I realize that I'm supposed to be hoping for us to start doing exactly that.

Read and post comments | Send to a friend

4 Comments

Filed under Random

It’s a bit frustrating

-

 

that one of the best explanations of the financial crisis I've read comes from an article written two fucking years before it happened.

Read and post comments | Send to a friend

2 Comments

Filed under Random

Ten unorganized, unqualified thoughts on the financial crisis

-

1. Lately me and Republican Friend have been engaged in a mobius strip of an argument about who is to blame for the financial crisis. He says people spent more than they were making for longer than the economy could sustain it. They deserve, in short, the unemployment and repo manning we're all going to live with the next three years.

2. He's not wrong, really. We did spend too much for too long. People like me, with incomes that aren't below the poverty line but can see it from their house, shouldn't have iPods and flatscreens and new winter wardrobes and cars that smell like new cars without that tree dangling from the rear view mirror.

3. But it's more complicated than that. Americans spending beyond our means wasn't just something that happened because the Greed Index spiked one summer in 1992. Getting people to spend more than they have has been a deliberate business strategy for much of American industry for the last two decades.

4. Credit card companies, for example, targeted subprime borrowers (i.e. poor people) who were likely to pay their monthly minimums but not their full balance. This kept 41 percent interest strapped for years to the backs of people struggling to spare $50 a month.

5. And look at this parenthetical aside in a great article about the car industry bailout:

(In the 1980s, by contrast, Spinella says the average car loan lasted only three years and required a 20 percent down payment, which limited the kind of negative equity problem seen today.)

For the last 10 years, car loans have regularly topped seven years, with cupholder-sized down payments. The article shows how rolling trade-ins and seven-year payment had some people paying $40,000 for a Ford Focus.

6. Subprime house loans, subprime car loans, subprime Visa. The economy was bobbing on a vast wading pool of interest.

7. But look, Republican Friend says in my head, these people should have known better. This other great article mentions a California fruit-picker earning $14,000 per year who was able to get a mortage for a $750,000 home. Why should my tax dollars help out this idiot?

8. The problem with this 'they were greedy! Let them rot!' ethos is twofold:

  • First, choosing to do something, stupid or smart, never takes place in a vacuum. You don't think the mortgage agent had a duty to deny that loan to the fruit picker with two-car-garage dreams? In the case of car loans, were we relying on car salesmen to convey the moral hazard of rolling debt to their customers? The entire economy, from Wall Street to Best Buy to GM to Starbucks, had an incentive to encourage you to spend money you didn't have.

  • Second, blaming consumers isn't all that useful. Yeah yeah, we suck for having three credit cards for every letter in our GED, but now what? The job market is going to suck for the next few bubble-less years. If it turns out that the best thing for the country is to help people pay off their mortages, or forgive a shitload of debt, or extend unemployment benefits, so be it. We shouldn't be debating how to punish jobless people who have flatscreens.    

9. So the closest thing to an opinion or a conclusion about all this I can come to is: Everybody failed.

  • You failed because you bought a bunch of shit you didn't need.
  • The mortgage agents and car dealerships and credit card companies failed because they exploited their expertise in an area that most consumers don't understand, and told you it was acceptable to take out a loan to buy a latte.
  • The government failed for letting them do this to us, and (still) failing to punish the people who exploited their influence and expertise. If doctors started advising patients en masse to undergo risky procedures just so the hospital could pay its shareholders enough and on time, we certainly wouldn't be debating how much to blame the armless.

10. I don't really know what any of this means for the bailouts. I couldn't work up too outrage about them because they were so obviously inevitable, just like the 2012 New York Times headline, 'Report: Bailout Funds Mostly Benefited Already-Rich'. All we can do is wait the crisis out until the economy appoints a new demographic group to replace the middle class as the nation's pooper scoop. In the meantime, enjoy your iPod.

Read and post comments | Send to a friend

3 Comments

Filed under Random

Do any other 26-year-olds think of the financial crisis

Leave a Comment

Filed under Random