Debunking the "regulations burden business" argument

In a discussion of the provocative Wall Street Journal headline “Study: Strict Derivatives Regulation Could Cost 130,000 Jobs” John Parsons and Antonio Mello point out, "It’s always possible to ignore the system-wide purpose of a regulation and claim it is costly due to the burden it imposes..."

Not everybody cares about the Dodd-Frank reform of financial derivatives markets, but we've seen what happens without regulation(s): the markets crashed, foreclosures destroyed home values, and millions of our friends and neighbors are unemployed.

It's costly to control immigration, to restrict alcohol sales, enforce speed limits, verify the safety & efficacy of drugs, and register voters, but we choose to do all these things because we know we can't simply trust everybody to do the right thing.

Why should you care? How much is at stake in this smoke and mirrors game of derivatives trading? $600 trillion. Compare that to the debt-ceiling, or the budget for the entire U.S. Government. $600 trillion is in play. That's why the players, and the Chamber of Commerce, are lobbying so hard to be left alone, and trying to scare us with more jobs lost.

"...there is 'no upside' to imposing margin requirements on end users, said David Hirschmann, who heads the U.S. Chamber’s Center for Capital Markets Competitiveness."

Victoria McGrane

Wall Street Journal February 13, 2011

Study: Strict Derivatives Regulation Could Cost 130,000 Jobs

Recovering our standing as the world leader in agriculture and industry, and creating the millions of jobs our country needs, won't be enough to keep Wall Street greed from ruining our economy. Can the financial markets "create prosperity" beyond Wall Street? It's hard to prove, lately; it's hard to see any upside in leaving those with the most to gain in charge of regulating themselves when they've already abused the system, or trust the tired old assertions about "burdens on business" so quickly, thoroughly debunked by simple logic.

Thomas Hayes is an entrepreneur, former Congressional Campaign Manager, strategist, journalist, and photographer who contributes regularly to a host of web sites on topics ranging from economics and politics to culture and community.
You can follow him as @kabiu on twitter.

British Airways and Iberia agree merger plans

The merger has been a long time in the planning.
British Airways and Spanish airline Iberia have reached a preliminary agreement for a merger expected to be completed in late 2010.


The merger, which is expected to get regulatory backing, would create the world's third biggest airline.
Under its terms, Iberia would take a 45% stake and BA, which last week reported a six-month pre-tax loss of £292m, a 55% stake in the new company. Iberia says it can pull out if BA fails to resolve its pension deficit problem. 'Growing dominance' "The merger will create a strong European airline well able to compete in the 21st Century," said BA chief executive Willie Walsh. "Both airlines will retain their brands and heritage while achieving significant synergies as a combined force." The deal would create an airline with 419 aircraft flying to 205 separate destinations, and would save the two partners 400m euros ($594m; £358m) in costs a year, the two carriers said. Iberia's chairman Antonio Vazquez will take the same role at the new company, while Mr Walsh will become its chief executive. Aviation analyst Douglas McNeil of Astaire Securities said BA would be "relieved" to have finally got the merger deal in place. "I think BA will be pleased with the deal they have got - the headquarters in London, led by Willie Walsh, and BA will be majority shareholder," he said. Simon Calder, travel editor of the Independent, agreed that the planned merger was a good deal for BA. "British Airways has come out of this pretty well, it will be the dominant partner," he said. "Don't expect any great benefits [after the merger] if you are a passenger, but if you are a shareholder it could be a different story." News of the deal did not go down well with Virgin Atlantic, one of BA's big competitors in the UK, which raised concerns about the new company's market share. "The merger will increase BA's dominance at Heathrow with 44% of take-off and landing slots this winter. It is impossible for any other airline to replicate their scale," the airline said. Big losses Both BA and Iberia have been losing money during the downturn as businesses and individuals cut back on flying. Mr Walsh has previously said a merger would help both firms cope with the recession. The firms have considered a tie-up for a number of years and held talks on the issue in July 2008. BA already owns 13.5% of Iberia and the two carriers have a code-sharing agreement under the One World grouping of airlines, which allows them to sell seats on each other's services. If a merger is formalised, it would still require regulatory approval from the European Commission. However, analysts say a deal is likely to be cleared, pointing to Air France's successful merger with Dutch airline KLM in 2004. Financial woes The agreement comes a week after BA said it would cut a further 1,200 jobs, as it reported a first-half loss for the first time.

Michael Jackson Moonwalk glove auctioned for $350,000

The glove worn by Michael Jackson
A rhinestone-encrusted glove worn by Michael Jackson the first time he performed the Moonwalk has been sold at auction for $350,000 (£212,000).


The glove, among 70 items belonging to the late singer which went on sale in New York, was sold for nine times the expected price.
A jacket worn by Jackson on his 1989 "Bad" tour was sold for $225,000 while a fedora hat went for $22,000. The auction in New York attracted thousands of bidders around the world. Auctioneer Darren Julien said the 1983 television appearance when Jackson first displayed the Moonwalk - wearing the glove - had been his "most historical performance". The glove was bought by a Hong Kong businessman Mr Julien said he had had no idea the sale would be so big. Prices for Michael Jackson memorabilia now outstrip those for items belonging to Elvis Presley or Marilyn Monroe, he added. "It's a tribute to his life and career - he's truly an amazing artist," said Mr Julien. The glove was bought by Hong Kong businessman Hoffman Ma on behalf of a hotel in Macau China, where it will now go on display. Including taxes and fees, the final amount paid was $420,000. Michael Jackson died at his home in Los Angeles in June at the age of 50 after a drugs overdose.

Black Eyed Peas Tour Dates 2010 The E.N.D. World Tour 2010

The Black Eyed Peas are here tonight in Las Vegas at the Mandalay Bay Event Center with their first of two concerts this week of The E.N.D. World Tour. Then, It's off to hosting New Year's Eve at LAX nightclub in the Luxor Hotel.

One of the original three Black Eyed Peas, Will.I.am, is set to host an event Jan 1. at Pure nightclub in Caesar
s Palace.
The group will be in Atlanta in February 4,Miami February 6, February 23 In Washington, D.C., and February 24th in NYC at Madision Garden to name just a few of their upcoming concert dates.

The latest news is that Black Eyed Peas' first Dublin concert date ever, May 2, 2010 sold out within 20 minutes. We're sure that fans are hoping they'll consider adding another date.

Ticket info can be found at the Live Nation Web site.

The E.N.D. World Tour 2010 – North American Tour Dates
Feb. 4 – Atlanta, GA – Philips Arena
Feb. 6 – Miami, FL – American Airlines Arena
Feb. 9 – Jacksonville, FL – Jacksonville Veterans Memorial Arena
Feb. 10 – Tampa, FL – St. Pete Times Forum
Feb. 12 – Nashville, TN – Nashville Arena
Feb. 13 – Birmingham, AL – BJCC Arena
Feb. 16 – Columbus, OH – Schottenstein Center
Feb. 17 – Lexington, KY – Rupp Arena
Feb. 19 – Raleigh, NC – RBC Center
Feb. 20 – Charlotte, NC – Time Warner Cable Arena
Feb. 23 – Washington, DC – Verizon Center
Feb. 24 – New York, NY – Madison Square Garden
Feb. 26 – Boston, MA – TD Garden
March 1 – Uniondale, NY – Nassau Coliseum
March 3 – Philadelphia, PA – Wachovia Center
March 4 – Pittsburgh, PA – Mellon Arena
March 6 – Toronto, Ontario, Canada – Air Canada Centre
March 9 – Detroit, MI – The Palace
March 11 – Milwaukee, WI – Bradley Center
March 13 – Chicago, IL – United Center
March 19 – Dallas, TX – American Airlines Center
March 20 – Tulsa, OK – BOK Center
March 22 – St. Paul, MN – Xcel Energy Center
March 24 – Kansas City, MO – Sprint Center
March 25 – Des Moines, IA – Wells Fargo Arena
March 27 – Denver, CO – Pepsi Center
March 29 – Los Angeles, CA – Staples Center
March 31 – Glendale, AZ – Jobing.com Arena
April 2 – San Jose, CA – HP Pavilion
April 7 – Sacramento, CA – ARCO Arena
April 10 – Tacoma, WA – Tacoma Dome
April 11 – Vancouver, British Columbia, Canada – GM Place