Greed And Stupidity Are Winning

So Iceland's President has twice vetoed a Bill to pay for the compensation given to those who were suckered by the lure of premium savings rates. Neither Iceland nor its banks could even cover savers' principal, let alone pay interest at premium rates. But that's okay, UK and Dutch taxpayers have picked up the tab.

Similarly, bearing in mind the Irish financial crisis, it comes as a shock that Allied Irish Bank sold Californian towns letters of credit to guarantee their municipal bond issues. It's a sad fact that two thirds of investors in US municipal bonds are individuals unwittingly taking advantage of tax breaks.

Meanwhile, the tide is also going out on sub-prime student bonds and the scale of mortgage debt misselling continues to grow. So it's little wonder the the US public borrowing ceiling keeps on rising as all these woes drag on the nation's finances.

But at least the global investment banks are profitable again, right? And no one's going to jail. It seems that even the banks downunder are mixing their own special debt cocktail, and the next round is on the Aussie taxpayer.

Greed and stupidity are winning, hands down.

Image from Financial Sense.

Use It Or Lose It #2

I've previously posted in praise of the "Greasy Spoon" in case they close down or become chain shops. This time, I'm suggesting we use our libraries or they'll just close down.

Here's a map of threatened library closures. It's of course important to campaign to keep your local library open, but actually using it is what really counts.

Perhaps going to the library already feels like something you need to force yourself to do. Like going to the gym. If you do feel like it's a bit of an effort, try this 5-step programme ;-):

1. Go to the library. Just go in, and walk out.

2. A week later, visit again and apply for a library card.

3. A week later, visit the library and borrow one item.

4. Return the item on time.

5. Once each week/month thereafter, visit the library and use one aspect of the library's facilities (yes, even that facility).

Following demonstrations earlier this month, authorities are re-considering some planned closures.

But, again, using your library is what really counts.

No Fly Tipping

Sorry.

Image from EcoPro.

Sunlight On Pensions

Good to see Michael O'Higgins, the new Chair of the UK Pensions Regulator making a splash in his first interview. He's quoted in Tuesday's FT as saying providers should be obliged to compare their returns against their fees and other charges, including brokerage and dealing costs.

He admits transparency is key to building public trust in pensions, implying there isn't much.

Add that level of transparency to the focus on improving administration and record-keeping, and we should see some more pension scandals come to light in 2011.

What fun!

Next job: fill the black hole.

Cleese, Fry, Lumley & Izzard v Beckett, Blunkett & Prescott

Perhaps the most telling aspect of the battle for electoral reform is that the leading 'Yes' campaigners share great comic wit and timing, while the leading 'No' campaigners merely have surnames that end in 'tt'.

The result should be a triumph of pragmatism over the petty self-interest of has-been Labour politicians.

But the Double-T's will try to make it a vote on t' economy, t' spending cuts, t' cost and t' complexity or some other basis for moral panic.

Personally, I plan to have a lot of fun at their expense.