Week 5, October 2009

In the article in the link below the current debate over how to deal with the current “too big to fail” challenge in banking is discussed with competing arguments between FDIC Chairperson, Sheila Bair, and Treasury Secretary, Timothy Geitner.  Ms. Bair supports creating a “resolution fund” that is dedicated to handling the potential crash and burn hazards of firms with assets totaling over $10 billion.  The fund would be fed by assessments on those large firms up front, where if a firm does go down there has already been some contribution by that firm to handle its own demise— rather than leaving the clean-up costs to the remaining solvent firms to pay.  Geitner counters that the “moral hazard” is that such a fund ostensibly creates an insurance fund that may encourage more risky behavior by these big firms who are perpetually trying to please their shareholders.  He believes if shareholders believe the government will step in to save them when a firm collapses it causes another problem of its own.  It’s definitely an interesting debate, and one that is described in a post earlier this week from The Baseline Scenario as commensurate with “…natural monopolies, to be treated as public utilities.”  Currently we have four mega-banks: Wells Fargo, Bank of America, JP Morgan Chase, and Citi who are the poster children for this “too big to fail” situation.  The consolidation of banks into these four has lead to serious calls to break them up— ‘cause none of us likes to lose at Monopoly.

 See here to learn more about these debates in the world of finance.

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Weekend Wanderer’s Events

…finding the treasures in your town and beyond. 

Two for This Weekend:

Abbott and Costello Meet Frankenstein at The Paramount Theatre in Oakland:  Friday night at this acclaimed art-deco theatre in downtown Oakland you can see this classic comedy to get your Halloween weekend started off right!  Classic films are a regular favorite at the Paramount, as are many awesome concerts and other shows.  I’ve been to some great ones there myself including recently a showing of the classic film Casablanca and a concert with Bonnie Raitt and Taj Mahal.  Great place, great time!   Click the link above for more info. 

Haunted Halloween Ball at City Hall in San Francisco: With a probable continued absence of the Bay Bridge, the Civic Center BART would be your station exit for this Halloween night costume party at the beautifully restored City Hall Building in San Francisco.  Multiple DJ’s and other performances including a dance number by the ladies of Desired Temptations will be on tap for the night.  If you’re ready to get out and bust out, here’s a great one for you.  Click the link for preparty discounted tickets.     

Help Your Fellow Living Beings:

Out of the Closet Thrift Stores: Owned and operated by the AIDS Healthcare Foundation (“a global organization providing cutting-edge medicine and advocacy to over 100,000 people in 22 countries.”) this chain of thrift stores has locations in both southern and northern California and the support of The Magic Johnson Foundation.  With locations in Oakland, San Francisco, and Berkeley these folks are sending 95% of every dollar you spend there towards their AIDS/HIV healthcare services.  Click the link to check ‘em out.  

Two Weekends from Now:

100 Year Anniversary of The Cliff House in San Francisco:  High up on the cliffs above Ocean Beach in San Francisco you’ll find the latest iteration of The Cliff House, a San Francisco landmark for dining and entertainment now for 100 years.  It’s current configuration has multiple levels and ranges in venues from café-style to well-heeled formal dining.  Sweeping views of the ocean and the craggy shoreline are shared by all the dining spots, and it’s really something to see.  Next Wednesday, they celebrate their 100 year anniversary.  Click above for more info.   

Pic of the Week… from my phone camera.

BB goofin’ in the studio…