Industry, Ecology and Economics

Oceans are acidifying much faster than predicted by climate models. Taken with the Artic ice disappearing at alarming rates and recent evidence of temperature changes in the Antarctic, could the danger of climate change actually be worse than the models predict? Our planet is a remarkably complex, closed system. It's also one that we don't fully understand - the number of potential variables effecting climate are astronomical. We could be heading towards the potential collapse of Earth's ecosystems as we know them.

Are inexpensive goods at Wal-Mart worth this, or is their true cost being shifted towards externalities hidden off the world economy's balance-sheet? We will not be able to secure the future of our Earth habitat as long as economics is reductive, assuming closed systems, and allowing business and industry fail to pay the true costs of their profits.

And Citi could be yours...

Apparently, there are rumors making the rounds that Citigroup is on the verge of bankruptcy. Management is considering drastic action. Yves Smith of Naked Capitalism writes.

Financial institutions are too capital starved to be sticking their necks out now, and private equity firms cannot meet their target returns without leverage, which they cannot get right now. And who pray tell would buy the entire bank? Citi is so large that any acquirer runs the risk of at least a partial reverse takeover. And do not say JP Morgan. That bank is already too large to fail, and merging with Citi would greatly increase systemic risk in the long term.

Taxpayers. My prediction is that this situation will be resolved in the coming days with the taxpayer owning the all or most of Citi - probably stuck with the least desirable portions of this turkey. Treasury will improvise a takeover under the vast authority of EESA. Paulson was keeping some powder dry for just this sort of occasion. I think I might end up working over Thanksgiving.