Editorial – Imagine you bought a house and, to insure it, you had to purchase coverage from the homebuilder.
Then imagine a fire nearly destroyed the house, but your ability to collect the insurance depended on a committee of anonymous homebuilders meeting in secret to vote on whether to write you a check. If denied, the panel wouldn’t have to provide an explanation, you wouldn’t be allowed to review the minutes of closed-door discussions and you’d have no right to appeal.
Not a great system. But not dissimilar to the one that governs the world of credit-default swaps.
Panels made up of representatives from large banks, hedge funds, investment firms and other interested parties, formed by the International Swaps and Derivatives Association, decide whether payouts will be made to investors. more> http://tinyurl.com/6pyr6c5
Posted in Banking, Economy
Tagged Banking reform, Business, Capital, Credit, Credit default swap, Derivatives Association, Greece, Hedge fund, Insurance, International Swaps and Derivatives Association
By Jennifer Martinez – The White House orchestrated a simulated cyberattack on New York City’s power supply during a summer heat wave late Wednesday to illustrate not only potential human and economic casualties, but to tee up support for Senate passage of a sweeping cybersecurity bill.
Backed by the White House and Senate Democrats, the Lieberman bill would require operators of critical infrastructure to work with DHS to set security standards they must follow. The U.S. Chamber of Commerce and other business groups have raised concerns that this approach is too regulatory and would refocus industry’s attention from security to complying with new government mandates. more> http://tinyurl.com/74kpx9h
Posted in Broadband, Business, Economy, Net
Tagged Bill of Rights, Broadband, Computer security, First Amendment, Internet, New York City, United States, United States Chamber of Commerce, United States Department of Homeland Security, White House
By Derek Thompson – During the Great Recession, the 1% absorbed half of total income losses between 2007 and 2009. But in the first year of the recovery, the top percentile won 93% of all income gains.
As for this recession, Tim Noah puts it beautifully: This recovery has been a luxury item. For the bottom 99%, real income growth over the first two years of the recovery was one-fifth of one percent. The richest percentile saw its income rebound by 11.6%. It is only slightly sensational to point out that the 1%’s income has outgained the rest of the economy by a factor of 58 in the recovery. more> http://tinyurl.com/79e2sly