Archive for June 5th, 2012

June 5th, 2012

“Money for Nothing” by John Edward

by DickH

John Edward, a resident of Chelmsford who earned his master’s degree at UMass Lowell and who teaches economics at Bentley University and UMass Lowell, contributes the following column

There is something terribly wrong here. Banks are being paid more for not lending money than they are paying seniors on fixed incomes for use of their life savings.

When the financial crisis hit in 2008, the Federal Reserve Bank started taking extraordinary steps. One of the less-well-known steps was to start paying banks for doing nothing.

The story begins with the money you have in the bank. The bank is only required to keep a small percentage of your money on hand. At most, they must keep 10 percent of checking deposits “in reserve.” The bank can use the rest of your money to make money by lending it out.

If a bank has $1 billion on deposit in checking accounts, it is required to keep about $95 million in reserve. The bank does not keep all that money in their vaults. They keep much of it in an account with the Federal Reserve.

A bank has “excess reserves” when there is more money in their reserve account than required. Normally banks detest having excess reserves. Normally banks do not let cash sit idle when it could be earning them a profit. Neither Fed policy nor bank behavior is normal right now.

The Federal Reserve tracks excess reserves for the U.S. banking system. The total usually ranges between 1 and 2 billion dollars. There was an exception after the attack on 9-11. Banks panicked and excess reserves briefly jumped to $19 billion.

Then in September of 2008, a financial panic took over the banking system. Excess reserves soared from $2 billion to over a trillion dollars! As of April 2012, excess reserves were roughly $1.5 trillion.

Banks are being very cautious about lending money. The Fed is making things worse by paying them to sit on cash. read more »

June 5th, 2012

Memorials vs Museums

by DickH

Sunday’s New York Times has a very interesting article about the difficulties faced in establishing a Sept 11 Museum in New York City. While it sounds like the museum commission has been totally inclusive in soliciting opinions from all involved, emotions are still too raw and still too diverse to gain consensus. The story almost incidentally describes the inevitable conflict that exists between memorializing someone or something and providing an accurate historical account of what happened. The two are hardly ever the same and are often at odds with each other.

An example of this phenomenon in the Sept 11 Museum story is how are the hijackers to be depicted. To many family members, the site of the museum – the place where the World Trade Center once stood – is sacred ground and that any mention of, let alone display of photographs of, the hijackers would desecrate the site. On the other hand, to tell the story of what happened, how can you not talk about the men who caused it all? (In an attempt to compromise, the museum will display thumbnail size photos of the 19 terrorists in a small alcove that a visitor must purposefully enter so that no one inadvertently comes upon the photos).

This conflict between memory and historic accuracy is certainly not unique to the Sept 11 Museum. In the early 1980s while in the US Army, I was assigned to Merrill Barracks in Nurnberg, Germany. During World War Two, this army outpost was home to an SS unit that handled all of the ceremonial duties at the adjacent Kongressehalle (pictured below). To put it in some very rough historical perspective, the Congress Hall was meant to be to the Nazis in the 1930s what Independence Hall was to Americans. But in the 1980s – 35 years after the war had ended – it was a walled up old relic whose only relevance seemed to be the turnaround point on our morning runs. And while Merrill Barracks was a fully functioning US Army base, it’s exterior brick walls were still pock-marked from the 1945 battle for Nurnberg between an earlier generation of US soldiers and the remnants of the Nazi regime. At the time I was told that German law forbade the repair or alteration of any battle damage that remained from the war. I don’t know how true that was but no one ever attempted to fix any of it. I also know that none of the Germans I came into contact ever mentioned the war (aside from the occasional 60-something male in a beer tent who after a few liters would start spouting some scary stuff).

Fast forward to 2007 when we made a family trip to Germany. By then – 62 years after the end of the war – the Konressehalle had been transformed into a world class museum that had a full, impartial, and not the least bit sugar coated treatment of Nazism, the Holocaust, and World War Two. Similar museums had also sprung up in Munich and Berchtesgaden where there had in 1980 been only untended relics. Perhaps it took the passage of the generation that lived through the events to enable the country to accurately depict those events in a museum.

As with most things, we can loop this “memory vs history” conflict back to Lowell. I think it was in the early 1970s that City Councilor Paul Tsongas proposed that the canals of Lowell be paved over to improve the city’s vehicular transportation system. When preservationists protested, another councilor, undoubtedly the descendent of or perhaps even a former worker in one of the mills that had been powered by those canals – was said to reply that “there’s nothing to be proud of in those canals.” Today, we view those canals as central to the city’s identity and not as a symbol of our economic and employment oppression.

I guess the moral of the story is that when it comes to building a memorial, do it sooner rather than later but when it comes to building a museum, the more time that passes the better.

June 5th, 2012

Matt Malone, SJ Named Editor-In-Chief of National Catholic Magazine “America”

by Marie

 Matt Malone, SJ

A Massachusetts and Greater Lowell connection! I know Matt and  couldn’t be more pleased at this appointment. America is powerful voice for Jesuits and for Catholics – it is in a good place in the hands of Matt Malone.

(New York, N.Y., June 5, 2012) — For over a century, America, the only national Catholic weekly magazine in the United States, has provided a provocative and distinctly Jesuit voice on religion, society, politics and culture.  That proud history continues today as America’s board of directors named Matt Malone, SJ its newest and youngest editor-in-chief.  *Father Malone, 40, who assumes his appointment in October, succeeds Drew Christiansen, SJ, who has served as America’s editor-in-chief since 2005.

Read more about Matt Malone and America here: http://www.americamagazine.org/blog/contributors.cfm?blog_id=2

Matt Malone, S.J., served as associate editor of America from 2007-2010. He was responsible for the magazine’s coverage of U.S. politics and foreign affairs. Prior to entering the Society of Jesus in 2002, Malone served as deputy director of MassINC, an independent political think tank. He also served as co-publisher of CommonWealth, MassINC’s award-winning review of politics, policy, ideas and civic life.

*Note: Matt Malone  has just returned from the UK -  not quite Father Malone yet. He has just finished a long road in his Jesuit studies for ordination. He will be ordained to the priesthood on this coming Saturday at Fordham University’s Chapel by New York’s  Cardinal Egan.

Matt is well-known in certain circles locally in our Greater Lowell/Merrimack Valley! He has recently posted on his blog: “ My first Mass of Thanksgiving on June 10, 2012 will be broadcast live from the Fordham University Church at 10:00 a.m. eastern U.S. time. You can view the proceedings here: http://www.fordham.edu/media/. You can also listen to the audio only broadcast here: http://www.wfuv.org/.