Bloomberg & Derivatives: Another Look At the Financial Crisis

The cover story of this week's Village Voice explains, in layman's terms, the damage done to our economy through credit derivatives (essentially insurance policies for large loans). The derivitives market became a big money operation by making money off of failed loans. 

An interesting twist to this is that the company who put together the hardware and software for pricing and clearing derivatives is Bloomberg, the company which is the cornerstone of Mayor Mike's vast wealth. The Voice takes a closer look:

"Did Bloomberg L.P. do anything illegal? Absolutely not. We prosecute hit-and-run drivers, not roads. But there are many questions—about the size of the derivatives market, the names of the counterparties, the amount of replication of derivatives, the role of securities ratings in Bloomberg calculations (in other words, could puffing up be detected and potentially stop a swap?), and how the OTC industry should be reported and regulated in order to prevent future catastrophes. Bloomberg is a privately held company—to the chagrin of would-be investors—and quite private about its business, so this information probably won't surface without subpoenas."

Lost City takes a less politic stance, comparing Bloomberg to Oppenheimer. "Bloomberg–he's the guy who's trying to convince us to elect him for a third term, because he's the only mayor who can handle things during a financial crisis like this one, right? Is that because, since he helped create the crisis, it's only right that he should clean it up?"

A recent NY1 poll shows that 57% of New Yorkers still disapprove of Bloomberg's move to extend his stay in Gracie Mansion. 46% said they think less of the Mayor because of how he's handled the term limits situation. I would suggest, in light of the Voice article, if Bloomberg wants to be our savior in the next election, he should encourage some transparency on the part of the company which bears his name.

Spare Some Change?

President Obama's overall agenda is outlined on the new White House website.

Locally, the Nation and Air America present "Change for America? The Left and Obama", a discussion panel on how the progressive left can effectively work with the Obama administration. The discussion starts tomorrow night at 7:00 at NYU's Skirball Center for the Performing Arts.

The Nation's Katrina vanden Heuvel and Air America's Mark Green will be moderating the panel, which will feature:

William Greider, "An Economy for All" 

Patricia J. Williams, "Law & Justice, Again" 

Lawrence Korb, "Fighting Terrorism After Iraq"

Eli Pariser, "Moving On with a New Democratic President"

Always organizing and growing, Move On presents its top goals for 2009 as voted by its members. New organization Change NYC is looking to harness some of that energy for New Yorkers.

As I become aware of events and organizing going on here in NYC, I'll share it here on the blog.

MMA in NY - Hoyce Gracie Joins the Fight

Mixed Martial Arts legend Hoyce Gracie has joined the fight to see his sport legalized in NY. His Op-Ed piece in the Daily News gives a compelling argument, as well as an abbreviated history of the sport from its days as Vale Tudo to the modern interpretation. In many ways, the early part of that history is the journey of the Gracie family, who are represented locally by Renzo Gracie, who runs a jiu-jitsu school in Midtown.

That same journey proved the inspiration for one of my favorite movies of 2008, David Mamet's Redbelt. I was reminded of this when a friend asked about my take on the movie following my last post about MMA in NY. In Redbelt,  Chiwetel Ejiofor plays an American fighter who has married into a Brazilian family clearly inspired by the Gracies. The film finds the heart and poetry of Brazilian Jiu-Jitsu. Those who view MMA as strictly some kind of bloodsport have missed out on so much nuance and skill, something which Mamet zeroes in on.

Hopefully, lawmakers in Albany can see some of what Mamet saw when they look at legalizing the sport. 

The Fight to Legalize MMA in New York

I enjoy mixed martial arts or MMA. The growing sport is competitive and exciting. Many NYC bars, like McCann's here in Astoria,  swell with patrons when UFC Pay-Per-Views run.

Recently, there has been considerable discussion about legalizing MMA in New York. Assemblyman David Englebright is the chief sponsor of the bill to legalize MMA, which has support in many quarters, including that of state athletic commissioner Melvina Lathan.

Joining the argument against the legalization of MMA is the NY Times Editorial board. I am disappointed in the Times, not for choosing a position I disagree with, but for doing so with such poor research to back up their claims. They quote John McCain's infmaous "human cockfighting" comment from years back, and Albany Assemblyman Bob Reilly's weak arguments. What they insist to be the most damning evidence that MMA is unsafe are the very contested findings of the British Medical Association, which is attempting to have both boxing and MMA banned. However, while relying on the BMA's claims, they stop short of calling for an end to boxing as well.

Boxing is, after all, part of the history of New York City, and thus the NY Times. They even sell a book on the subject. MMA is an upstart sport and easier to condemn without actually taking a close look. Those damn kids and their rock & roll! Seriously. Maybe the editorial board should start their research with some of the articles which have appeared in their own paper.

Justin Porter wrote about high school MMA program in Winchester, MA which is decidedly positive. Michael Schwartz turned in a solid piece on MMA legend Fedor Emelianenko just this past week.

MMA experts on Fanhouse tee off on the Times Editorial Board here.

MMA is on the rise. It is a strong PPV and arena draw. MMA cards at Madison Square Garden would draw significant money and in this economy, NYC needs whatever new revenue streams it can find. Englebright's bill calls for the state to take 10% of all MMA gate revenue (UFC gates have ranged between 2.5 and 5 million dollars). The state has numerous MMA gyms, whose fighters must all travel out of state for professional competition. They could be competing on smaller, local shows if it were legal to do so. New York should be at the forefront of a new sport, not naysaying with poorly contructed arguments. Let the best in the world come to New York City to compete in MMA as in other sports, arts and industries. That's what we're here for.

But... If you're going to argue against MMA, at least do your homework.

NYC Inauguration Parties

We're just over a week away from the inauguration of President Barack Obama. To me, this is a far more exciting cause for a party than the Superbowl. New York's role in this election was an interesting one. I volunteered for Obama here during the brutal primaries with Hillary. Some of the arguments at that point in the campaign season were really intense, especially here, where HRC was a Senator.

It was a foregone conclusion that HRC would win Super Tuesday in New York City. But, even still, the lines at my local polling place in Astoria were astounding. Everybody seemed to know the importance of this election and the turnout was telling. In the months that followed, as Obama built up steam, New York remained a focal point, with Bloomberg's public pondering of an independent run for the White House (which would have been laughable), and one of the Presidential Debates being hosted at Hofstra.

All of the moments pale in my memory to the images of proud New Yorkers celebrating in the streets when Barack Obama was elected in November. There was one massive gathering in Harlem shown on TV that was particularly moving, but there were hundreds of smaller scenes on street corners and in bars across the five boroughs. There was an energy in the city that night which was unlike anything I had felt before. 

With all that in mind, I look forward to celebrating on the 20th. I'll be at a Move On sponsored event at Kafene in Astoria. If you're in the area, you should come. Should be fun. There has been some discussion that there will be an event in Central Park, but that doesn't seem too solid yet.

Where will you be?

The Caroline Kennedy Show

So... Caroline Kennedy.

Her "listening campaign" has grown in strength over the last few days, as she sits down with Democratic power brokers in the state. She's spent much of that time reaching out to Dems upstate, since that is where her connections are weakest. Today she met with Al Sharpton, at Sylvia's in Harlem. The cynic in me wonders if that's because Sharpton is actually considered a power broker or if Caroline is greasing up the often squeaky wheel in advance (not a dig at Sylvia's food).

I'm really of two minds on this. I like her. I like where she stands on things, I appreciate the work she's done as an advocate for education in this city, and growing up in Boston, I am genetically predisposed to have a soft-spot for the Kennedys. Her moving op-ed in support of Obama, and active campaigning on his behalf, alongside her Uncle Teddy, was crucial during a brutal primary. With or without the Senate seat, she is clearly cut from the same cloth as her father, uncles and late brother. And that's mostly a good thing. Her history in the city is long, as recounted by Sam Roberts.

All that said, I'm pretty uncomfortable with the idea of anyone stepping into the Senate without having previously held some kind of elected office. Honestly, even some time on the City Council would make a difference in my eyes. I'm all for people stepping up to answer the call to service from outside political office, but I'm very wary of this. I don't particularly like the idea of anyone being appointed into the Senate. I agree with The Nation's John Nichols - the constitutional loophole that allows governors to appoint Senators to vacant seats needs to be done away with.

I suspect I'd be perfectly happy with Senator Caroline Kennedy on a day-to-day basis, but deeply uncomfortable with her as an appointee. It provides a strange aftertaste to the political optimism of the campaign season.