Archive for December 4th, 2007


Florida pension fund also holds SIV garbage

This is in addition to their investment pool for local governments which has been frozen to prevent withdrawals after defaulted SIVs were found to be among their “investments.”

“These were highly inappropriate investments for taxpayers’ money,” said Joseph Mason, a finance professor at Drexel University in Philadelphia. “This is the tip of the iceberg for pension funds. We know the paper is sitting there. There are substantial subprime-related losses that haven’t shown up yet.”

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Will PayPal money market fund break the buck?

5.5% of the $1.63 billion PayPal fund is in “illiquid assets.” Yup, more SIVs.

The rot continues to spread everywhere.

Bonus points for those of you can describe which Circle of Hell the investment manager at PayPal will be plunged into once the lynch mob is done with him.

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Car crash on the Left. Respect Renewal and SWP

car crash

Red Pepper on the Respect / SWP rupture.

The SWP will carry on in the original organisation. But without the strongholds of Tower Hamlets and Birmingham and national figures like Galloway and Yaqoob, not to mention a distinct lack of coalition partners, it is difficult to see it going far. Meanwhile, the other side hopes to attract sections of the left that were initially put off by the SWP – trade unions, greens, communists – to their pluralist vision. But the fact remains that with the SWP gone they will have lost at least half the membership and a good number of key activists.

Plus, the well has been poisoned. It’s difficult to see how the two groups could work together in coalitions like Stop The War, and the British antiwar movement may suffer because of it. My guess: Respect Renewal, the pluralist group, will gain strength and members over time as they appeal to a wide range of people. SWP, meanwhile, will become smaller and perhaps have a bracing good time in the future arguing about maddeningly trivial points of Marxist theology to a full meeting of seven members (four of whom will soon fracture off and form their own group.)

Ultimately there were two visions at the heart of Respect. The SWP saw it as a ‘united front of a special kind’, a catchy term for an electoral alliance that came second to the party’s interests, while the others regarded it as something more permanent and the primary focus of their activity.

That will always be a problem when a Marxist vanguard party works within a coalition. The goals of the party will sometimes conflict with and come before the interests of the coalition at large.

But on one point they are agreed – there is still a yawning gap to the left of Labour. With the split in Respect, the British left has once again shown a particular skill in failing to fill it.

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Back home

Our business trip in Montpelier VT got canceled yesterday so we’re back home again. We drove up Sunday night and awoke there this AM to a major snow storm. We got to the place of business only to find that many of their employees didn’t. So the meetings have been pushed back a week or so.

As one who has spent a lot of time in Vermont, it takes serious snow to shut things down there. They were expecting a total of 18 inches. Driving back was tiring, only one lane on I-89 each way was partly plowed, so this made for slow driving and required total concentration when passing someone, as that lane had 3-4 inches of snow in it. Slow and easy, no sudden movements, is the way to do it.

Weather is a funny thing. About a month ago, when it dropped to 60 F, I thought it was cold. Today it was 25 and I barely noticed it.

Light snow on evergreens and ice on branches of leafless trees is quite beautiful.

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