The Economist's poll of economists

The Economist conducted a poll of 683 research associates of the National Bureau of Economic Research. 142 responded, of whom 46% self-identified as Democrats, 10% as Republicans, and 44% as neither.

80% of respondents, 71% of those who did not identify a political affiliation, and 46% of those who identified themselves as Republicans said that Obama has a better grasp of economics than McCain. (Only 23% of those who identified themselves as Republicans said that McCain had better understanding of economics.)

81% of respondents, 71% of the unaffiliated, and 31% of the Republicans said that Obama will pick a better team of economic advisors to run the country than McCain.

The full results can be found at The Economist's website.

Prosperity theology created foreclosure victims?

An article at Time magazine suggests that those following the "prosperity theology" of some Pentecostal ministers are more likely than average to have obtained mortgages they cannot afford, leading to foreclosure:

Has the so-called Prosperity gospel turned its followers into some of the most willing participants -- and hence, victims -- of the current financial crisis? That's what a scholar of the fast-growing brand of Pentecostal Christianity believes. While researching a book on black televangelism, says Jonathan Walton, a religion professor at the University of California at Riverside, he realized that Prosperity's central promise -- that God will "make a way" for poor people to enjoy the better things in life -- had developed an additional, dangerous expression during the subprime-lending boom. Walton says that this encouraged congregants who got dicey mortgages to believe "God caused the bank to ignore my credit score and blessed me with my first house." The results, he says, "were disastrous, because they pretty much turned parishioners into prey for greedy brokers."

Yet another case of religious trust being exploited to victimize those who have it.

(Via Dispatches from the Culture Wars.)

Bailout bill bonuses

The bailout bill has a few extra features:

* Sec. 105. Energy credit for geothermal heat pump systems.
* Sec. 111. Expansion and modification of advanced coal project investment credit.
* Sec. 113. Temporary increase in coal excise tax; funding of Black Lung Disability Trust Fund.
* Sec. 115. Tax credit for carbon dioxide sequestration.
* Sec. 205. Credit for new qualified plug-in electric drive motor vehicles.
* Sec. 405. Increase and extension of Oil Spill Liability Trust Fund tax.
* Sec. 309. Extension of economic development credit for American Samoa.
* Sec. 317. Seven-year cost recovery period for motorsports racing track facility.
* Sec. 501. $8,500 income threshold used to calculate refundable portion of child tax credit.
* Sec. 503 Exemption from excise tax for certain wooden arrows designed for use by children.

It also includes tax credits for solar and wind power, a requirement that health insurance companies cover mental health the same way they cover physical health (so look for some huge premium increases on your health insurance).

And during all the bailout bill discussion, Congress quietly authorized another $612 billion defense authorization bill.

(Via The Agitator.)

Bush and Palin anti-intellectualism

Radley Balko on Palin's performance in the VP debate:

Palin was rambling, didn’t answer the questions she was asked, and the folksy stuff felt contrived. I suppose Palin did okay in that she didn’t come off like the train wreck she was in her Katie Couric interview, but Jesus, is that the standard? Is the bar that low for vice president of the United States? That seems to be the way the conventional wisdom is playing out. Oddly, the Couric interview may have actually helped her, then.

Palin seems to have crammed just enough so she could toss out key phrases here and there to give the veneer that she’s informed. But it’s pretty clear she was in way over her head for most of the debate. Pick her apart with follow-up questions, as Couric and Gibson did, and she falls to pieces.

This growing anti-intellectualism on the right is alarming. It isn’t that Palin is dumb. I don’t think she is. It’s that she has no interest in learning, no interest in reading or experiencing anything that might challenge what she already knows she believes. She thinks with her gut, as Steven Colbert might put it. She’s a female W. And they seem to love her for it. The GOP has gone populist. Knowledge, worldliness, and learning are to be shunned, swept aside as East Coast elitism. It’s all about insularity, earthy values, and simpleness. Remember the beating John Kerry took in 2004 for daring to use the word “nuance?” There’s no room for complexity on the right anymore. It’s good and evil. Black and white. Us and them.

Maybe a good butt-kicking this November will bring about some soul searching.

And Ed Brayton on Bush, quoting this ABC News story:

After some more give and take, Sen. Richard Shelby, the top Republican on the Senate Banking Committee, presents a five-page list of 192 economists and business school professors who oppose the plan. Bush isn't impressed. "I don't care what somebody on some college campus says," Bush says.

He might as well have said, "I ain't never had no need for book learnin'."

I agree with Balko--Palin seems exactly like a female "W" in this respect.

Mexico to try again to decriminalize drug possession

Mexico's President Felipe Calderon has sent a proposal to Congress to decriminalize possession of small amounts of heroin, methamphetamine, opium, and marijuana for personal use. This is similar to a proposal that actually passed Congress in 2006 which then-president Vicente Fox said he would sign, but then backed down from after pressure from the United States.

The purpose is to free up police and court resources to go after the major drug gangs, which it would certainly do.

Barney Frank and the financial crisis

The New York Times, September 11, 2003:

"These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'" said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. "The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing."

The Washington Post, November 7, 2003:

Rep. Barney Frank (D-Mass.), the ranking Democrat on the House Financial Services Committee, said the administration's position is driven by concerns about the financial safety and soundness of the companies "to the exclusion of concern about housing." Committee members were ready to support legislation that would give the Treasury Department oversight of Fannie and Freddie, as the administration has sought, Frank said, not power over the companies' housing activities, which are regulated by the Department of Housing and Urban Development.

Now he seems to have forgotten what he said back then, and the fact that he was encouraging the moral hazard created by the GSEs encouraging and buying up bad loans.

UPDATE: A friend points out this post at the Big Picture blog by Barry Ritholtz arguing that the Community Reinvestment Act and GSEs had nothing to do with the housing bubble. While I think Ritholtz makes some excellent points that demonstrate there were other factors, he doesn't really address the GSE moral hazard issue and he makes this statement that seems to me to offer a striking disconnect from reality:

"The four biggest problem areas for housing (by price decreases) are: Phoenix, Arizona; Las Vegas, Nevada; Miami, Florida, and San Diego, California. Explain exactly how these affluent, non-minority regions were impacted by the Community Reinvestment Act ?" All of those cities have very large non-affluent minority populations. I'm most familiar with Phoenix, where the housing bubble was marked by expansion of housing into South Phoenix (where I live), Gilbert, Mesa, Queen Creek, Surprise, and other outlying areas around Phoenix which have very large Hispanic populations. Also see my comment below about mortgage broker telemarketing targeting low-income areas of town with minority majorities.

He wants to place the blame on deregulation, but if you need to find a single cause, I think the Fed keeping interest rates too low is a better root cause. My own experience regarding telemarketing showed that there existed regulations that could have been applied to the sleazy telemarketers that simply weren't being enforced. When you have an enforcement problem, all the regulations in the world won't help, in fact adding more regulations is likely to increase the severity of your enforcement problem.


UPDATE (November 21, 2011): Barry Ritholtz argues persuasively that the Community Reinvestment Act had nothing to do with the housing bubble.  He also downplays the role for the GSEs, though I think they had a contributory role (which is also what the Financial Crisis Inquiry Commission concluded) to play in increasing the size of the bubble--they purchased half of the U.S. mortgage market by 2008, $5.1T in loans, including $90B-$175B/year in subprime and Alt-A between 2002 and 2006.  But the above analysis overlooks other important factors including the repeal of Glass-Steagall, the 2004 SEC decision to reduce capitalization requirements on investment banks, the Commodity Futures Modernization Act of 2000 which allowed credit default swaps with little regulatory oversight, and inaccurate credit ratings from the Nationally Recognized Statistical Rating Organizations.  Wikipedia's entry on "Subprime mortgage crisis" has a good referenced list.

FutureKind CD release show

If Einzige and I were not going to be in Pasadena for the Skeptics Society conference, we would be attending the CD release show for FutureKind's "Surround," Friday, October 3 at the Last Exit Bar and Grill, 1425 W. Southern Ave., Tempe, AZ 85282. There's a $5 cover charge and it's a 21 and over show, and other bands performing are DJ Seduce, Human Mirror, Talk Fiction, and Random Karma.

Here's FutureKind's video for their song "Hideaway," the first song on the new CD:



UPDATE (October 6, 2008): The show apparently went well, and I agree with the New Times reviewer that Thalia's singing is sometimes reminiscent of Björk.

Another military religious freedom case

Dustin Chalker, stationed at Ft. Riley, Kansas, has filed a lawsuit about being forced to attend Christian proselytization events in the military, including a presentation which claimed that Christianity and creationism give life meaning, while evolution and atheism remove hope. The complaint describes this event, which took place at a U.S. military base in England, delivered by Chaplain Christian Biscotti (!) and was approved by Lt. Gen. Rod Bishop (!) who spoke afterward:

Another slide titled "Contrasting Theories of Hope, Ultimate Theories Explaining Our Existence," has two columns, the first titled "Chance," and the second "Design," comparing Charles Darwin, creationism, and religion are also part of a chart comparing the former Soviet Union to the United States, concluding that "Naturalism/Evolution/Atheism" leads to people being "in bondage" and having "no hope," while theism leads to "People of Freedom" and "People of hope/destiny." After several more slides like these, the presentation continues with a slide titled "Christian's Message," and a slide with an image of a man looking upwards with his hands outstretched and the caption "Please open up both of your hands to receive this powerful tool."

This lawsuit, like that of Jeremy Hall, was filed by the Military Religious Freedom Foundation.

Chaplain Biscotti is a real person, currently stationed at the Joint Warfare Centre in Stavanger, Norway.

(Via Dispatches from the Culture Wars.)

UPDATE (October 18, 2008): Jeremy Hall has withdrawn his lawsuit on the grounds that he will soon be out of the military and suspects the case will be dismissed for lack of standing once he's out. Chalker's case continues.

UPDATE (January 7, 2009): Chalker's suit has been updated and expanded to add further examples of "the noxiously unconstitutional pattern and practice of fundamentalist
Christian oppression" in the military, including the Air Force sponsoring "Team Faith" motocross stunt shows, promoting attempts to convert Muslims in Iraq and Afghanistan to Christianity, and the Army's 2008 manual on suicide prevention, which promotes "religiosity" as a necessary component.

ApostAZ podcast #9

ApostAZ podcast #9 is out, and it's something new and different--atheists Brad and Shannon in conversation and debate with evangelical Christian hip-hop artist Vocab Malone and Omri Miles.

Episode 009 Atheism and Evangelism in Phoenix! Go to atheists.meetup.com/157 for group events! What can be euphemistically termed a conversation between two non-believers, an evangelist, and a non-denominational Christian. Guests Vocab Malone and Omri Miles. How long can a civil conversation last? Brad's brain turns to mush (even more than usual)!
Additional info from Susan Jacoby's History of American Secularism (great book, buy it!)

There's an interesting followup exchange between Vocab and Brad at the Phoenix Atheists Meetup Group forum.

The ApostAZ podcast is also now available through iTunes.

I'm looking forward to listening to this one, and may add some commentary here and at the Phoenix Atheists Meetup Group forum when I do.

Google to close Arizona office

Google is closing its office in Tempe, Arizona on November 21. It's also closing offices in Denver and Dallas.

Alan Eustace, SVP of Engineering & Research, writes at Google's blog:

At Google, engineering is everything - no great engineers, no life enhancing products, no happy users. So we've spent a lot of time structuring our engineering operations to make the most of the exceptional talent that's available across America - developing local centers that give engineers the autonomy and opportunity to be truly innovative. These principles have served us well as we've grown, so when the model fails, it's doubly disappointing.

We opened our Phoenix office in 2006 and hoped that it would develop to support many of our internal engineering projects, the systems that make Google, well, Google. But we've found that despite everyone's best efforts, the projects our engineers have been working on in Arizona have been, and remain, highly fragmented. So after a lot of soul searching we have decided to incorporate work on these projects into teams elsewhere at Google. We will therefore be closing our Arizona office on November 21, 2008.

We'd like to thank everyone involved in this project for their energy and enthusiasm: our engineers; the engineering community in Arizona; Arizona State University; the city of Tempe; and the greater Phoenix area. We are now working with the Phoenix Googlers to transition them to other locations, or to identify other opportunities for them at Google.

I've been expecting to see Google start cutting back on expenses in various ways, as it seems to me that their model of business, with huge per-employee expenses, isn't sustainable for the long term. Apparently it's also the case that it's not cost-effective to put separate engineering centers in many locations--they probably need a critical mass of engineers and profitable projects that they didn't get here. This is probably good news for other high-tech companies and startups in Phoenix, as those Googlers who wish to stay in the Valley become available talent.