Juggling Dynamite

We watched the 2008 Ken Burns documentary on the life of world renowned architect Frank Lloyd Wright on the weekend. If you have not seen it yet you should. You can order it on Netflix here.

The film covers the great, the bad and the ugly that comprised this amazing man. What a story. The best fiction writer would be hard pressed to imagine the wide range of events and phases that formed this life. It is also inspiring to see that his most productive creation phase came between the ages of 80 and 92:

“Often touted as the most influential and important American architect of all time, Frank Lloyd Wright is the subject of this acclaimed documentary by award-winning filmmaker Ken Burns (Baseball, The Civil War). Rare footage and illuminating interviews, along with an in-depth look at Wright’s body of work from his 92 years, come together to bring his unforgettable — and frequently turbulent — story to life.”

In all the hand-wringing and panic about how to rebuild stability in the financial system and growth in the US economy, there are two ideas that are clear as water and should be actioned without further delay.

First, re-separate banks and investment dealers into two distinct and separately capitalized entities, i.e.; bring back Glass Steagall. This need has been obvious for years now. It was a mistake to remove regulatory restraints on these completely separate business areas, and the longer we refuse to admit this the longer we suffer. Banks should have strict capital requirements and be backed by the government, investment banks should be on their own to risk and implode as only they do best.

Second, focus stimulus efforts on a desperately needed infrastructure rebuild in America. I have written on this theme several times over the past few years, here and here.

To accomplish this second goal, CNN’s Fareed Zakaria suggests that the U.S. needs an infrastructure bank. This would be a mission specific entity that could raise capital for infrastructure building in the bond market and put millions of construction workers back to work while giving the country something tangible and lasting for the effort and investment. Simple and beautiful; makes good sense.

“Dan Rather Reports” presents an in-depth interview with Neil Barofsky, who recently stepped down as the Special Inspector General for TARP, more commonly known ; as the $700 billion dollar taxpayer bailout of the country’s biggest banks. Barofsky warns that the safeguards that are supposed to be in place to help avoid another bank meltdown are woefully insufficient – and that another, bigger crisis could be right around the corner.