Monday Monday

* The cushy administrative salaries and bonuses add up to an indictment of the Brodhead administration for allowing the burden of the fiscal crisis to fall unevenly: bonuses for the brass, a direct hit for cafeteria workers, groundskeepers, housekeepers, clerks and underpaid adjunct faculty who lost their jobs. Via literally every single person I know at Duke.

* Libertopia watch: The Lake County sheriff has stopped providing police protection for a northwestern Indiana town after it missed a deadline he set for it to pay the county $100,000. Via MetaFilter.

* How the climate bill went south. Via Shankar in the comments from a post from last week, where we’ve been talking about whether or not I’ve been fair to Obama. On the climate story, ThinkProgress highlights Lindsey Graham’s terror that Fox would find out what he was up to.

* Hope for the Democrats this November? More false hope here.

* George Lucas’s Theory of the Novel.

* The ACLU vs. the future.

Stanley’s 2002 paper tries to do just that. In it, he carefully imagines what could happen when human reproductive cloning is perfected — “what enforcement action would be taken when, say, a sixth-grader is discovered to be an unauthorized clone of Jennifer Lopez?” Could genetic enhancement inspire a kind of neo-eugenicist society where social classes are determined by access to the kind of wealth one needs to take advantage of such technologies? If humans succeeded in splicing their own DNA with that of animals, where would the line of “personhood” be drawn? Citing a scenario out of the 1997 movie Gattaca, Stanley expresses concern that the growing ability to remove genetic defects prior to childbirth might lead to employers collecting hair or skin cells from prospective employees. (On this last point his concern was prescient: In 2008, Congress outlawed genetic discrimination nearly unanimously. In the House, Ron Paul was the only dissenting vote.)

Via Matt Yglesias.

* The Social Network vs. women. (UPDATE: Forgot to mention that Colbert asked Sorkin about this last Thursday on his show, and Sorkin didn’t respond very well at all.)

* John Scalzi vs. Ayn Rand. Via SEK.

* And the Obama/Emanuel hug has sent the wrong message to our enemies. Please, not in front of the Klingons!

Wednesday Links

Wednesday links.

* Scandal at UConn! The Plank says the story is peanuts; this sort of corruption is endemic to the NCAA.

* Cover Stories From the Most-Requested Back Issues of The American Prognosticator (1853–1987).

* Duke University professor and civil rights icon John Hope Franklin has died.

* Upright Citizens Brigade parodies Wes Anderson. Bastards!

* A 93-year-old Japanese man has become the first person certified as a survivor of both U.S. atomic bombings at the end of the Second World War.

* The first unambiguous case of electronic voting machine fraud in the U.S.?

* Solitary confinement as torture.

* Roman engineers chipped an aqueduct through more than 100 kilometers of stone to connect water to cities in the ancient province of Syria. The monumental effort took more than a century, says the German researcher who discovered it. How could the Romans think in terms of centuries but we can’t think past a single business cycle?

* Lots of people are linking to this letter from an AIG bonus recipient. The merits of the contracts aside—I’ve said before they should be enforced unless fraudulent or predicated on fraud—but I don’t think he helps his case much when he puts a number on it. His one-time after-tax “bonus” is more than I would have made in thirty years of adjuncting.

* David Brin wants to “uplift” animals, i.e., make them sentient. This is exactly why people don’t take science fiction seriously; it’s totally crazy, pointless, and cruel and it wouldn’t even work…

AIG: Numbers Don’t Lie:

Let’s start off with xkcd’s lesson in how numbers lie.

As I’ve been saying both up top and in the comments the significance of this AIG bonus outrage is being badly overblown. The bonuses are a nice red-meat issue for the media circus but they’re basically a rounding error with regard to the scale of the bailout as a whole. Nate Silver is basically right here precisely because, as the cliche goes, “hard facts make bad law”—though his comparison to the Terry Schaivo case flounders at the fact that this silly thing the Congress is doing has wide popular support. (Nate and Josh Marshall both have more on the possible unintended consequences of this poorly thought-out new tax.)

As I’ve been trying to argue, the only relevant consideration regarding the bonuses is whether they were legal contracts, negotiated in the proper way and not predicated on fraudulent accounting or other illegal activity. Andrew Cuomo and Eric Holder should be investigating the bonuses, in other words, not Barney Frank. If they were legal, and their terms were met, pay them out; if they were fraudulent or predicated on fraud, arrest people.

What angers me about this situation is the widespread assumption that of course the bonuses are legal (just ill-advised), just like of course everything AIG did was legal but ill-advised. See, for instance, Ezra Klein on Madoff:

Madoff knew his investment scheme was a fraud. Wall Street should have known their investment schemes were a fraud.

Give me a break. Plenty of people on Wall Street knew their investment schemes were fraudulent. Those people are crooks, not dupes, and criminal prosecutions are the way we find out who they are.

(EDITED TO ADD: You can draw a distinction between AIG and Madoff, but it’s the distinction between two separate categories of crime, not between the guilty and the innocent.)

Repeating what I wrote in answer to Shankar’s question “Criminal Prosecution for what?” last night:

Well, that’s the job of state and federal prosecutors to determine. But there’s plenty of reason to think that (say) underwriting billions trillions of dollars in insurance obligations you know you have no capacity to pay out on is an abrogation of your fiduciary obligations — just for starters. Fraud and dishonest account methods were rampant in the banking industry, which has strict rules about this sort of thing that plainly weren’t followed. It’s not *just* stupid — in many cases it was stupid and illegal. Or so it seems to me.

…To add the obvious disclaimer, I’m not a lawyer, much less a prosecutor. But the treatment of the issue in the media tends to frustrate me on this point. Generally speaking the operative assumption seems to be “Oops, and they all got away with it” — that what they did was obviously legal, just slimy, and so we’re all just going to have to swallow our anger and move on. I don’t know that it *was* legal in all cases, and if CEOs and CFOs broke the law in chasing these bogus returns then DOJ and state AGs absolutely need to get involved. It’s a much higher priority for me than retributive taxation of contracts that are obscene (but probably legal) in an industry where the payment of obscene salaries is already (and still) an unchallenged norm. The bonuses are peanuts compared to the amount of money that’s already vanished.

Who Could Have Predicted?

Who could have predicted that putting the people who caused the problem in charge of fixing the problem would go so wrong? Say goodnight, Timothy.

Meanwhile, the situation at AIG may be much, much worse than anyone is admitting, while Kos and Josh Marshall are making sense: the real issues remain immediate triage of the economy, long-term systemic reform, and criminal prosecution of the widespread malfeasance throughout the financial sector. The bonuses suck, but they’re really secondary. Let’s not lose focus.

Going After AIG

New York Attorney General Andrew Cuomo is apparently going after the AIG bonuses. He’s already got some details on who got paid:

The highest bonus was $6.4 million, and six other employees received more than $4 million, according to Mr. Cuomo. Fifteen other people received bonuses of more than $2 million, and 51 people received bonuses between $1 million and $2 million, Mr. Cuomo said. Eleven of those who received “retention” bonuses of $1 million or more are no longer working at A.I.G., including one who received $4.6 million, he said.

Meanwhile, Josh Marshall has been looking into various claims that failure to pay the bonuses could constitute a “default event” under the ISDA Master Agreement that would trigger AIG’s trillion-dollar liabilities immediately. Sounds as if that’s not probably not the case, though Geithner may have been fooled. (Or “fooled.”)

When are these people going to jail?