FAKE REALITY SHOWS

BLOOMBERGS BUSINESS WEEK (2010) 2 /15

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Reality shows are generally interesting, because reality is made to be interesting. How? Think of it as Improvisational theater. That means topics are discussed and the reality members use their own language so it becomes more natural. In other words, no one is reading from a script or a TelePrompTer. Later hundreds of hours of tape that have been made are sliced and diced to appear to have conflict and more sex or sex related than the reality that most of us have.

According to BUSINESS WEEK, CBS UNDERCOVER BOSS is such a reality show. The premise is that the big CEO goes to work for their own company in a lowly position. Further, the middle manager overseeing the workers is a jerk. His job is to make the corporation look even more

meaner. The CEO is pushed around and humiliated like the other workers. After a few days, he leaves. He goes back to his upscale job

and saves the workers from their crappy situation. Hail! Hail! the boss.

It is a new fake populism to think that the big shots upstairs who are overpaid would do such a thing. The Boss becomes the hero. And life goes on.

PAULSON IN THE BELLY OF THE BEAST (82)

Henry Paulson was the former Secretary of the Treasury under the last days of the Bush administration. When September 08' came about, he was hit with conflict. Major CEO's were asking for some regulation because the market was beginning to be risky.

However as a Free Marketer, he had to be opposed to most or all regulations. And yet, the market fell. His new book discussed how he and his staff fought to get bail outs for big banks so that there would not be a panic in the market and a major drop of a 14,000 Dow.

By necessity, he became a Keynesian. He also had to explain hedging to the president. Further, what was not stated, but indicated in GAME

CHANGE is that Obama was doing work to help save the system. His rationale was more sensible than what was coming from the McCain campaign or the White House. Further, he did not realize how angry ordinary folk had become to see big shots go on welfare as the average

person took it in the shorts. Further, he knew he had to stop by having some of the banks fail or all would want a hand out.

At any rate, this is what Obama inherited.

BILLIONS (Terhune & Weintraub)

A great deal of money is being invested is disease management and preventive care. Unfortunately, they don't save money.

BANKSHOT (Coy) In a review of JIMMY STEWART IS DEAD, economist

Larry Kotilkoff, remakes banks into forms of mutual funds. As an example, BANK DEPOSITS would be made up of essentially cash. It would not chase investors away. LOANS would not affect customers but investors. Insurance would not be difficult. It would be taken from mutual funds that control insurance companies INVESTMENT BANKS could not be holders of property. Rather they would become advisers.

A lot of people are listening to this, because allegedly this would be or should be a more stable banking system. I don't think bankers are going

to like this.

U.S. DEBT (COY)

After World War II, there was a high federal debt and yet we weathered the storm. Now we're are heading toward toward a federal debt to annual GDP in the high 80's. 90% ratio of debt to GDP it becomes risky.

If and when inflation kicks in it reduces that federal debt. And yet if investors do not believe that they will not get back their investment

or in very cheap dollars, we risk a run on the dollar. What to do? Oh, how hard this is. You need to gently bring down the debt by gently increasing taxes and gently freezing the money spent on government services. If you go too fast or too slow, you are in trouble.