Michael Milken--Angel or Devil?

Keith Williamson had a short post the other day: 

Reis Thebault, writing in the Washington Post, identifies Michael Milken as “the ‘junk bond king’ who was charged with insider trading…”
The Wall Street Journal editorial board says that Milken “was never charged with insider trading.”

I was curious so I checked wikipedia. 

In March 1989, a federal grand jury indicted Milken on 98 counts of racketeering and fraud. The indictment accused Milken of a litany of misconduct, including insider trading, stock parking (concealing the real owner of a stock), tax evasion and numerous instances of repayment of illicit profits.

He pled guilty to six counts,  which likely were the least serious ones, securities and tax violations (i.e., not insider trading). So it sounds like a plea deal: the feds got jail time and a scalp on the wall; Milken avoided a long and expensive trial which might have resulted in much more serious penalties and which can be described as "technical", and therefore worthy of a pardon. 

The Return of the "Shorts"

Reading about Wall Street shenanigans in the 19th and 20th century often included discussions of "bears" and "shorts". It's easy to think those tactics are just a part of history, long since outmoded by federal regulation and modern finance.

Not so, according to this. Though to give the modern age it's due, it doesn't appear that there were underhanded things going on--just the ups and downs of a company pushing the envelopte.

Definitions of Farming: US Versus EU

Defining who is a "farmer" is complicated.  It's been 35 years since our legislation first tried to define "actively engaged in farming".

Yesterday I came across this piece, discussing EU's efforts first to define "active farmer" and now to define "genuine farmer".  The Irish are holding listening sessions with various farm groups (which are interesting in themselves, as different than US groups) which come up with various standards.

Hemp Insurance and Bureaucracy

Farmers.gov has a page on the announcement of hemp insurance and other aspects of growing hemp.

They note the need to report acreage to FSA, including their hemp grower registration number.  I searched on that and found this page for Virginia.  Virginia, of course, requires its own series of acreage reports

IMO this is a classic instance of how bureaucratic silos develop.  Something new comes up, and existing bureaucracies are assigned the job of implementing rules/laws. But since it's likely that the new responsibility doesn't fit neatly within the scope of one bureaucracy, we get duplication. 

I'd predict that 10 years from now the Virginia Hemp Growers Association will have formed and will be lobbying for a simplification and consolidation of paperwork requirements.

Presidential Health

As long as I'm discussing physical abilities today, I might as well offer my 2  cents worth on presidential health.

There's a current controversy over the release of medical records. I quickly agreed with Kevin Drum's post on medical and financial transparency.  Latter Twitter provided more information--Bloomberg is a qualified pilot, including helicopters, and passed an FAA medical exam last year; there's not that much difference among the types of medical information provided by current and past candidates--typically a physician's summary with some data but not really complete information.That includes Sanders.

Apparently Bloomberg had two stents inserted in the past, but not as aftermath to a heart attack.  Biden has survived brain surgery, which sounds scary but apparently doesn't have any meaning for the future.

Does the ADA Apply to Airlines?

I follow John Fea at the Way of Improvement.  Today he notes the controversy over reclining airplane seats.

He's 6' 8", so naturally he hates flying.

I wonder though--the Americans with Disability Act requires reasonable accommodations for people with disabilities.  Couldn't height, in the context of airplanes, be considered a disability?

Answer: Based on a layman's skim of the ADA text it isn't.  The key thing seems to be this definition of disability:as a condition which  "...substantially limits one or more major life activities of such individual".

Interest Rates and Savings Rates

Saw a chart showing the US savings rate over the years today.  It's interesting.  Here's the wikipedia page, which only goes to 2010. (Is wikipedia losing its oomph?)  It shows the savings rate dropping to about 4 percent in 1998 and 2 percent in 2005, recovering to about 7 percent in 2010. Since then the rate has been in the 7 percent neighborhood.

Some of the discussion, at least on one site, is how low the rate is, when considering how much people should be saving for their retirement.  But the article where I saw the graph was emphasizing the positive, the revival of the rate since the recession, noting how low the interest rates are currently.

That caught my attention.  I know just enough about economics to know that interest is the price of money.  So my (maive) assumption is that the higher the interest rate the higher the savings rate. But that doesn't appear to be the case.  I must be missing something.

(It is interesting the fluctuations of savings--in my young adulthood it was around 10 percent, from 1975 to 85 it declined to 7 percent before its most recent drops.

"Only" Versus "Nearly"

In a Times editorial today I saw a statement to the effect that "nearly one-third of Americans think same-sex marriage is wrong".  I don't know if the statistic is right, but it struck me that it should have read "only one-third....". 

In other words, what seems most important to me is how little opposition there now is to same-sex marriage, just about 25 years after President Clinton signed legislation "defending marriage". 

I never thought popular opinion could change that fast.  Indeed, when the subject was first raised, I didn't see it as a particularly serious or important initiative.  So frankly I wished it would go away, as making it an issue was a strategy Republicans/conservatives could use to defeat Democrats/liberals.

I was wrong then. 

The IRS Budget

Trump proposes to cut IRS employees by over 1,000.

Trump proposes an increase in IRS budget.

I saw both takes online, which was very confusing.

Here's a bit of explanation:

For the Internal Revenue Service, the plan proposes $12 billion, which is about a 4% increase from fiscal 2020, yet would decrease staff levels by 1,183 full-time employees. However, with $400 million in “cap adjustments,” there would be a net increase of 1,700 positions from fiscal 2020 levels. “Cap adjustments” are spending that is allowed above the limits in the 2019 budget agreement because of its potential to generate revenue.

There's much more at the link.

The Decline? of Dairy

Is dairy farming really going to hell in a handbasket? That's what I often see, with the trend to ever-larger farms and the decline of the dairy farms of the sort I knew in my youth.

But here's another take from a blogger I follow.  She notes the decline of "English" farms of 50 cows or so over the past 20 years, but notes their replacement by Amish farms.  I'm not sure where the Amish are marketing their milk.  Is it being sold as organic?  That would seem likely.  Anyhow the post is a reminder that change is complicated.