politics, piracy, and corruption
Enjoyable read from tdaxp.com.
On pirates, he writes:
Currently, insurance companies reward pirates, and punish crews that want to protect themselves from pirates.
Insurance companies reward pirates by paying ransom. When a pirate receives ransom, he and all his friend know a way to get more money: take more ships hostage.
Insurance companires punish crews who try to defend themselves. Premiums go up if ships are armed….
On politics:
Under Geithner, the only way a politically powerful company loses money is by not having enough friends in Washington. Likewise, the best way for a politically powerful company to make money is by having friends in Washington. [He goes on to cite Lehman Brothers, Citi, and Goldman Sachs.]
And now the tie-in (of Geithner and piracy):
As long as Geithner is Treasury Secretary, insurance companies would be foolish for looking at the actual profit-and-loss actions of their consequences. Far more important, under Geithner’s watch, is doing the politically popular thing.
Tim Geithner is so bad at his job, that he is a national security threat… when it comes to pirates, at least.
It’s a stretch, methinks. But still an enjoyable read.
FYI – per the FP blog site:
Most interesting of all, though, is Feingold’s reference to the last time that piracy was notably halted in Somalia — under the Islamic Courts Union in 2006. That regime, later ousted by Ethiopian troops (with U.S. support…) brought the only calm to the seas that the country has seen in recent years.
April 16th, 2009 at 10:21 am
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