The Socialization of Risk

March 16, 2020

Let's talk about socialism - specifically, the socialization of risk. 

We're likely about to be asked to bail out the riskiest elements of the American energy sector. Others - like airlines and cruises - will line up after it.

A lot of human beings are looking down the barrel of job loss because of what's unfolding in markets. In energy, it's already savage. Oil sells for less than break-even production prices for a majority of the American energy market and Saudi Arabia is peacocking, saying it can knuckle-by at these levels for years. From Bloomberg:

COVID-19: A New Paradigm

5 March 2020

When asked on Monday whether he would declare a federal state of emergency in response to SARS-CoV-2, the virus causing the COVID-19 disease, which would free up federal funding to try to head off a national contagion, President Trump said no. It hadn't risen to that.

At a press conference Monday, it was unclear as to whether Medicare and Medicaid would cover medical services intended to detect and treat the coronavirus. Didn't rise to an emergency declaration of support there either.

Before all that, though, Monday morning Trump was pushing Fed Chairman Jay Powell to cut interest rates to allay markets. The President, as always, had an eye on stocks.

This morning, the Fed appeared to fold. It made an emergency cut to the fed funds rate of 0.50% from 1.75%.  The rate cut may have tickled the President, as he is in service to capital markets. But the Fed sees something brewing.

Everything is Here

she places two wet lips on my ear
how can she be that close, to me
blows a whisper into me; i am inoculated and
it blossoms
builds and unfolds in the manner of exponents
the clouds of new stars
she is leaving with her mouth
new words in me,
covering the domed ceiling of my cave
with something ancient and pictoral,
she makes clear what she does not care for
only in what does not grow from
what she leaves in me.
everything else is here.