Sirota on "Bailout Bill"

David Sirota (channeling Naomi Klein and Tom Frank) raises five questions about the propriety of the Bailout Bill over at InTheseTimes.

He primarily raises the issue of lack of oversight/writing an effectively blank check which is hot on some of my listserves. With action imminent, we will see where everything falls when the dust settles.

For my two cents, the major questions beyond oversight are: (1) how will the paper be valued and (2) who are the counter parties who are the actual beneficiaries?

On this last point, take the example of AIG. Apparently it has large losing positions in a large number of credit default swaps. The government is taking an 80% stake in AIG, thus "bailing it out." But who holds the winning end of these swaps???? To me, it seems that these are the people who are being "bailed out" (along with anyone who has retirement money in AIG) as the alternative would be for AIG to go into bankruptcy and let the counter parties try get their money from the bankruptcy trustee. Instead, AIG gets the money it needs to settle the swaps.

The upshot: Who are the beneficial counter parties???

Union Membership as a Civil Right

A friend referred me to this recent (but not burning hot) post by David Sirota at InTheseTimes.com.

The idea: Add Union Membership into the Civil Rights Act.

The goal: Change corporate behavior. Sirota writes:

For example, because the Civil Rights Act bars racial discrimination, businesses
are motivated to try to prevent bigotry: They want to avoid being sued. This is
why no company brags about being racist.

But when it comes to unions, there is no such deterrent. The lack of civil rights protection effectively encourages businesses to punish pro-union employees — and publicize the abuse to intimidate their workforce. By making the six words law, the dynamic would shift. Companies would have a reason — fear of litigation — to respect workers’ rights.

The man behind the idea: Tom Geoghegan (who is also my employer)