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Bailouts

Warren Buffet, talking about why his (responsibly-run, stable) mortgage business is losing money:
Clayton’s lending operation, though not damaged by the performance of its borrowers, is nevertheless threatened by an element of the credit crisis. Funders that have access to any sort of government guarantee – banks with FDIC-insured deposits, large entities with commercial paper now backed by the Federal Reserve, and others who are using imaginative methods (or lobbying skills) to come under the government’s umbrella – have money costs that are minimal. Conversely, highly-rated companies, such as Berkshire, are experiencing borrowing costs that, in relation to Treasury rates, are at record levels. Moreover, funds are abundant for the government-guaranteed borrower but often scarce for others, no matter how creditworthy they may be.

This unprecedented “spread” in the cost of money makes it unprofitable for any lender who doesn’t enjoy government-guaranteed funds to go up against those with a favored status. Government is determining the “haves” and “have-nots.” That is why companies are rushing to convert to bank holding companies, not a course feasible for Berkshire.

Though Berkshire’s credit is pristine – we are one of only seven AAA corporations in the country – our cost of borrowing is now far higher than competitors with shaky balance sheets but government backing. At the moment, it is much better to be a financial cripple with a government guarantee than a Gibraltar without one.
Things like this are why I think bailouts are evil.

Fatigue.

Sign I need to go to bed: I try to tap a button on my MacBook's screen. With my finger.

Goodnight Moon.

Fish in barrel

Your morality is 0% in line with that of the bible.
 

Damn you heathen! Your book learnin' has done warped your mind. You shall not be invited next time I sacrifice a goat.

Do You Have Biblical Morals?
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Backfired

My Nazi computer architecture lecturer ordered our laptops away again today so we could focus better. This made the lecture remarkably productive. Instead of being distracted by dozens of things all over the Internet, I was able to focus on a single task: catching up on Megatokyo on my iPhone.

Tweets

  • 00:12 Yay, I finally cleared my support backlog. #
  • 12:52 Rock Band pedal is breaking. Put in an order for one of these: www.pedalmetals.com/ #
  • 13:54 On claims circulating in some circles: a promise must be made to be broken. None were made, despite my offer to; Q.E.D., none were broken. #
Courtesy LoudTwitter

Tweets

  • 01:40 @37signals 542. #
  • 08:51 @Skorpychan Yes, I too much prefer being stabbed silently in a London alley to being shot with a weapon that can be heard miles away. #
  • 11:47 I'm going to be moving most of my public-friendly tweets to @architechies and locking this one down tight, so please adjust your follows. #
  • 13:56 Second lecture today was canceled. Oh well, at least I attended one this week. #
  • 15:39 Yum, chicken tikka. #
Courtesy LoudTwitter

Tweets

  • 12:55 This is not a good week for my attendence... #
  • 13:20 @OvidPerl Problem is, the starter docs are written to the level of the average corporate Javadroid. The frameworks are top-notch, though. #
  • 15:30 @kendermouse ...you know you've found the *good* drugs? #
Courtesy LoudTwitter

Tweets

  • 17:15 Of course the stock rally wasn't going to last--there was no actual good news to sustain it, just some slightly less bad news. #
  • 18:22 @kendermouse Because most citizens of Tokyo have strong weirdness filters to prevent them seeing the giant monsters, etc. #
Courtesy LoudTwitter

Tweets

  • 15:41 @OvidPerl My parents forward my California ballot to me when there's an election during term time. Felt very strange during the primary. #
  • 16:59 For the love of god, why Accessorize?!? #
  • 21:22 Won't Get Fooled Again, medium, 100%. Was playing with a full band--lots of high fives. #
Courtesy LoudTwitter

Tweets

  • 17:39 "32-megabyte gigaPhone!" *twitch* #
  • 17:49 If I stay there will be trouble, but if I go it will be double. #
Courtesy LoudTwitter