It’s all over the news. Our economic problems have been diagnosed as “bigness”. Jeremiah is right.

AIG is so big, so interconnected with every other bank, a failure would take down most of the banking system. The only thing to do is throw money at them or risk a great depression.

There is a market failure connected with “bigness”. A firm as large as GM or AIG will discount risk far more than another firm in the industry. The logic is simple. Proposal “A” is risky but has potential for huge returns. Proposal “B” is less risky, provides modest returns, and is essentially what everyone else is doing. If you’re a huge firm what are you going to do? Proposal “A”, of course, because if it fails you know Uncle Sam will rescue you. And if he doesn’t you’ll threaten to take the entire economy down with you…and the funny thing is you actually can.

The question yesterday on NPR Money was “what can we do to stop this from happening again?” The stock answers are always these: More regulation or More free market. My answer is neither and both. We must have a system that prohibits firms from growing into monstrosities “too big to fail” but this is best done via increased competition through lower costs of entry, equal playing fields, and the removal of legal privilege (cartels, patents, property rights in land, airwaves, cab medallions, etc). More competition means more creative destruction, lower profit margins, increased productivity, smaller firms, and more wealth creation. You can bet a company as large as AIG or GM did not get to be that large without special privileges.

These mechanisms used to increase competition may require more regulation, such as what is needed to diminish property right monopolies, or may require freer markets, such as what is needed to lower costs of entry and diminish patent and cartel privileges. Neither one alone but both in proper measure.

End Soapbox.

Well, I did it. I planted seeds in egg cartons. Cross your fingers.

Maybe, something will grow. But, I have little faith. Are they too cold? Am I overwatering them? It’s got to be one of the oldest human acts and I feel totally…stupid.

I have high goals. In my mind I see tomatoes – tons of them – including a vision of salsa in the cupboards. There are also basil seeds hiding in the little cavities. And cone flowers and squash and spinach. Will I attain my goals? I would sacrifice a pig but I know no gods that care.

I’m preparing my land. I cut down two bushes and a small tree with a handsaw. I ripped out 3 miles of vine. I have a growing compost pile I will turn weekly – is that too much? I have plans for a tomato cage. I’ve thought about planting them in the grassy semi-public space between the curb and street. Think anyone would care?

I also have a growing son. He seems to grow with little work on my part though I put much thought to it. He is more than capable to teach himself english and, I am certain, most other things if given the exposure and opportunity. Do other parents over-think parenting? Do they give there kids enough room to teach themselves? Do I do too little? My most constant thought is “how can I have even more fun with Henry?” not “what must I do to get him to obey me”. Does that make me a bad parent?

And what of friendships? They grow with less speed and are more difficult to cultivate. “Hanging Out” must now be planned and often feels as awkward as a date. Is this just part of growing up and being a parent or is there something wrong with our living arrangements? Everyone’s busy, surrounded by people, and yet, lonely.

Is it time to forget about tomorrow and live in today?

Now this is a bottom-up approach.

http://www.huffingtonpost.com/jon-chattman/forgiving-student-loan-de_b_164103.html

 and

http://www.facebook.com/group.php?gid=46657437878#/group.php?gid=46657437878&ref=mf

http://www.beggarstablechurch.org/mp3/20090222.mp3

An interesting sermon from my church a couple weeks ago. If any of you have time to listen to it I’d like to hear your thoughts. It gets good ~15min in.

http://www.anglocatholicsocialism.org/landmark.html