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To Sleep, Perchance to ? Weekend Economists September 10-12, 2010

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:30 PM
Original message
To Sleep, Perchance to ? Weekend Economists September 10-12, 2010
Well, another week has staggered to a close. Another valiant attempt by the PPT to touch the sky, or at least 10,500 on the DOW, was missed by That Much! Better luck next time, team!

Another attempt to call the Party Faithful home to vote has been met with derision and scorn. Obama's 69% approval rating at Inauguration has dropped to 48% or worse. The MSM claims it's all over already, the GOP has won, no point in holding the election. More careful readings of the polls show that this is bunk--but just barely. It's a cliffhanger! I expect that my stint as Poll Inspector on November 2nd will be busy and exhausting.

So now is the time to get caught up on our sleep. After all, the rest of the country has been asleep at the switch, why shouldn't we? Of course, those who aren't facing financial catastrophe are free to sleep peacefully. Those in financial catastrophe have no cheaper pleasure than sleep.

"Methought I heard a voice cry 'Sleep no more!
Macbeth does murder sleep', the innocent sleep,
Sleep that knits up the ravell'd sleeve of care,
The death of each day's life, sore labour's bath,
Balm of hurt minds, great nature's second course,
Chief nourisher in life's feast,--"----Macbeth: Act 2 Scene 2

We've got a whole elite of MacBeths out there, murdering sleep for all of us. NYC and DC are full of them.

I wouldn't lose too much sleep over it. Between peak oil and global climate change, it won't be long before we can join Hamlet in pondering our choices:

"To be, or not to be: that is the question:
Whether 'tis nobler in the mind to suffer
The slings and arrows of outrageous fortune,
Or to take arms against a sea of troubles,
And by opposing end them? To die: to sleep;
No more; and by a sleep to say we end
The heart-ache and the thousand natural shocks
That flesh is heir to, 'tis a consummation
Devoutly to be wish'd. To die, to sleep;
To sleep: perchance to dream: ay, there's the rub;
For in that sleep of death what dreams may come
When we have shuffled off this mortal coil,
Must give us pause: there's the respect
That makes calamity of so long life;
For who would bear the whips and scorns of time,
The oppressor's wrong, the proud man's contumely,
The pangs of despised love, the law's delay,
The insolence of office and the spurns
That patient merit of the unworthy takes,
When he himself might his quietus make
With a bare bodkin? who would fardels bear,
To grunt and sweat under a weary life,
But that the dread of something after death,
The undiscover'd country from whose bourn
No traveller returns, puzzles the will
And makes us rather bear those ills we have
Than fly to others that we know not of?
Thus conscience does make cowards of us all;
And thus the native hue of resolution
Is sicklied o'er with the pale cast of thought,
And enterprises of great pith and moment
With this regard their currents turn awry,
And lose the name of action."

Hamlet Act3, Scene1 Soliloquy

http://www.youtube.com/watch?v=-JD6gOrARk4&feature=player_embedded


This is our theme for the weekend, have at it! Post them if you've got them. We will try to stay awake long enough to give it a thorough review!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:36 PM
Response to Original message
1. Sheila's Valkurie Ride Again: Banks Are Failing!
Horizon Bank, Bradenton, Florida, was closed today by the Florida Office of Financial Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Bank of the Ozarks, Little Rock, Arkansas, to assume all of the deposits of Horizon Bank.

The four branches of Horizon Bank will reopen on Monday as branches of Bank of the Ozarks....As of June 30, 2010, Horizon Bank had approximately $187.8 million in total assets and $164.6 million in total deposits. Bank of the Ozarks did not pay the FDIC a premium for the deposits of Horizon Bank. In addition to assuming all of the deposits of the failed bank, Bank of the Ozarks agreed to purchase essentially all of the assets.

The FDIC and Bank of the Ozarks entered into a loss-share transaction on $150.4 million of Horizon Bank's assets. Bank of the Ozarks will share in the losses on the asset pools covered under the loss-share agreement...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $58.9 million. Compared to other alternatives, Bank of the Ozarks' acquisition was the least costly resolution for the FDIC's DIF. Horizon Bank is the 119th FDIC-insured institution to fail in the nation this year, and the twenty-third in Florida. The last FDIC-insured institution closed in the state was Community National Bank at Bartow, Bartow, on August 20, 2010.
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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:32 PM
Response to Reply #1
54. only 1 bank?

Maybe they are waiting for the big collapse to bury the dead banks, which is most of them. Why go thru the hassle now of transferring 'assets', if, in a short period of time, there aren't going to be any assets to transfer anyway.



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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:35 AM
Response to Reply #54
62. It Is Puzzling
If banks have taken 2/3 of their losses, as posted below, there still should be a few humdred rotten apples to shake off the tree.

Why do I feel there's another big scam in the making? Another big ripoff of the American public...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:39 PM
Response to Original message
2. You Don't Believe Me?
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:43 PM
Response to Original message
3. "First Call"/"Reveille" Up You Maggots! USA USA
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:45 PM
Response to Reply #3
4. Obama unveils new stimulus plans
http://www.ft.com/cms/s/0/7ef7e004-bb3a-11df-b3f4-00144feab49a.html?ftcamp=Late_headline1/NL/USSeptember2010/Vanilla_obamas/0/

President Barack Obama on Wednesday took Republicans to task over their economic “values” as he promotes an $180bn package of proposals to stimulate the anaemic US economy and show the American public he is working to boost the recovery.

At a speech in Cleveland, Ohio, Mr Obama made a strong case for permanently extending Bush-era tax cuts for the middle class. But he made clear that he opposes the Republican plan to extend tax cuts for the richest two per cent of Americans, which the White House says would add $700bn to the deficit over the next decade....

THINK HE CAN PULL A RABBIT OUT OF THIS HAT?
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:14 PM
Response to Reply #4
21. Obama unveils infrastructure plan

President Barack Obama will unveil a $50bn infrastructure plan to build roads, railways and airport runways, in an effort to show his administration is tackling the US’s chronic unemployment ahead of the November mid-term elections

Read more >>
http://link.ft.com/r/4RNQTT/TPAQ8E/GYN7Q/PRVJM5/EW9ZXD/LE/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:13 PM
Response to Reply #3
20. SEC signals shake-up of equity market rules

A wide-ranging overhaul of the rules governing equity markets, including tougher controls on high-frequency traders, is being weighed by the Securities and Exchange Commission in the wake of the May 6 “flash crash”, the agency’s head said

Read more >>
http://link.ft.com/r/2SRI11/FXU7RD/EKRAI/TP7101/72XOC5/6C/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:16 PM
Response to Reply #3
23. UCLA business school to end public funding

A leading business school in the University of California system is preparing to forgo public funding amid increasing uncertainty about the state’s economic health and California’s ability to pay for higher education

Read more >>
http://link.ft.com/r/4RNQTT/TPAQ8E/GYN7Q/PRVJM5/JINWE1/LE/t?a1=2010&a2=9&a3=7

SURE WOULD LIKE MORE DETAIL ON THIS ONE--I SMELL A SCAM
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:28 PM
Response to Reply #3
35. Prosecutor launches new front in the war on Wall Street fraud

A top federal prosecutor in New York will on Thursday declare another front in the war on Wall Street fraud, focusing new resources on civil litigation to complement existing criminal actions.

The move by Preet Bharara, US attorney for the southern district of New York, comes amid criticism of the relatively small number of criminal prosecutions brought after the financial crisis. The district has mounted high-profile prosecutions after previous crises.

Read more >>
http://link.ft.com/r/H60H77/V17P74/A5Q0X/UUMB65/TP8NRH/ZH/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:29 PM
Response to Reply #3
36. Goldman veteran to join Glaxo as finance chief

Simon Dingemans, one of Goldman Sachs’ veteran dealmakers in London, is leaving the bank to join drugmaker GlaxoSmithKline as chief financial officer at a time when global mergers and acquisitions activity is starting to heat up.

Mr Dingemans, the head of Goldman’s European M&A business, will join Glaxo in January after a 15-year career at the bank, where he advised companies such as Boots on its merger with Alliance in 2006.

Read more >>
http://link.ft.com/r/LVA6WW/M98IKE/87I64/26ICDM/9ZD28M/RF/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:06 PM
Response to Reply #3
43. U.S. slips in WEF's competitiveness rankings
http://www.reuters.com/article/idUSTRE6880HU20100909

Switzerland remains the world's most competitive economy, while the United States has fallen from second to fourth after losing the top spot last year, according to the World Economic Forum's annual rankings issued on Thursday.

Sweden, in second spot, and Singapore in third leapfrogged the United States in the WEF's Global Competitiveness Report 2010/2011...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:11 PM
Response to Reply #3
47.  Consumers cut back on credit card use once again
Edited on Fri Sep-10-10 07:11 PM by Demeter
http://finance.yahoo.com/news/Consumers-cut-back-on-credit-apf-1331695722.html?x=0&sec=topStories&pos=4&asset=&ccode=

Consumer borrowing fell again in July as households cut back on their credit card use for a 23rd consecutive month, adding more drag on an economy struggling to mount a sustained rebound.

Borrowing dropped at an annual rate of $3.6 billion in July, the Federal Reserve reported Wednesday. That marked the 17th drop in credit in the past 18 months.

Americans did boost borrowing for auto loans in July but this gain was offset by further reductions in the category that includes credit cards.

The latest drop in overall borrowing was slightly higher than economists' expectations and followed a $1.02 billion decline in June, which was revised from an initial estimate that total credit had dropped by $1.3 billion that month....MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:13 PM
Response to Reply #3
48. Homebuilders Revive Stalled U.S. Projects as Banks Unload Lots
http://www.bloomberg.com/news/2010-09-08/homebuilders-revive-stalled-u-s-projects-as-banks-unload-lots-at-discount.html

Construction crews are returning to the Cascades of Groveland, a gated 55-and-older community west of Orlando, Florida, almost three years after its bankrupt developer left owners of the existing 238 houses surrounded by empty lots, partially built homes, and an unfinished clubhouse.

Shea Homes, a builder based in Walnut, California, bought the remaining 761 lots from Bank of America Corp. in June and reopened the project Aug. 25 with a new sales office, lower prices and a changed name: “Trilogy.” Residents, who had taken over the guardhouse for mahjong, bingo and poker games, will get a 38,000-square-foot (3,530-square-meter) recreational center with indoor and outdoor pools, tennis courts and a card room...
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rfranklin Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:45 AM
Response to Reply #48
60. Retirees voluntarily enter concentration camps...
and no one leaves alive!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:15 PM
Response to Reply #3
49. The bleak truth about unemployment
http://www.washingtonpost.com/wp-dyn/content/article/2010/09/07/AR2010090706644.html

Somewhere between the rantings of the Republican right, which is peddling the nonsense that excessive government spending is to blame for high unemployment, and the Democratic left, which clings to the false hope that another helping of fiscal stimulus is all that is needed to get millions of Americans permanently back to work, is this stubborn reality:

The loss of 8 million jobs reflects problems that are largely structural, not cyclical, which means they won't be brought back by fiddling with a magic dial in Washington that controls how much the government spends.

When I say that the problems are structural, I mean something more than what labor economists refer to when they talk about the mismatch between the skills of the people who of are out of work and the skills needed for the jobs that are being created - although that certainly seems to be a factor.

Since 2007, the manufacturing and construction sectors have each lost 2 million jobs, with finance, hospitality and retailing accounting for 2 million more. Those categories alone account for three-quarters of the nation's job losses, and while a fraction of those jobs might return as the economy recovers, it will be a long time before automakers or home builders or investment banks or retailers see the sales numbers they had at the height of the biggest credit bubble the world has ever seen. Some of those laid-off workers may have been in this country illegally and have now returned home, but most will be looking not only for new jobs but also new careers....MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:15 PM
Response to Reply #3
50. The new young investor: Shunning stocks
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:41 PM
Response to Reply #3
90. Why are Democrats terrified of taxing the rich?
http://www.salon.com/news/politics/war_room/index.html?story=/politics/war_room/2010/09/10/democrats_scared_taxes&source=newsletter&utm_source=contactology&utm_medium=email&utm_campaign=Salon_Daily%20Newsletter%20%28Not%20Premium%29_7_30_110

Part of the answer is that Joe Lieberman is a troll, pure and simple, while Ben Nelson and the rest believe that behaving like a Republican 50% of the time makes them moderates. And random House Democrats are both stupid and cowardly, and so they believe that they should openly announce that they are against something Obama and Reid and Pelosi are for, to prove their independence and bravery.

But it is not a particularly courageous political act to restore the top marginal tax rate on the wealthiest Americans to 90s levels.

Jon Chait adds that these people's worldviews are so warped by their bubbles of privilege that they don't understand that six figures doesn't qualify as struggling. Matt Yglesias blames media framing of deficit issues. Everyone is probably right.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:49 PM
Response to Reply #3
92. Health Insurers Plan Hikes
http://online.wsj.com/article/SB10001424052748703720004575478200948908976.html



Health insurers say they plan to raise premiums for some Americans as a direct result of the health overhaul in coming weeks, complicating Democrats' efforts to trumpet their signature achievement before the midterm elections.

Aetna Inc., some BlueCross BlueShield plans and other smaller carriers have asked for premium increases of between 1% and 9% to pay for extra benefits required under the law, according to filings with state regulators.

These and other insurers say Congress's landmark refashioning of U.S. health coverage, which passed in March after a brutal fight, is causing them to pass on more costs to consumers than Democrats predicted.

The rate increases largely apply to policies for individuals and small businesses and don't include people covered by a big employer or Medicare...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:04 PM
Response to Reply #92
94. Pre-existing health condition insurance premium too expensive for many
http://www.tampabay.com/news/health/pre-existing-health-condition-insurance-premium-too-expensive-for-many/1119922

Clyde Holladay says he was excited about a new government insurance plan for people with pre-existing health conditions, one of the first programs of the federal health overhaul package.

That is, until he found out what his monthly premium would be: $773.

"Almost gave me another heart attack," Holladay joked.

But he's not kidding when he says $773 a month isn't affordable for a 61-year-old man with heart problems, who makes less than $30,000 a year as the proprietor of Pedro's, a small downtown St. Petersburg barbershop...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:47 PM
Response to Original message
5. HIGH TECH NOTES
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:49 PM
Response to Reply #5
6. Apple relaxes app developer rules

Apple capitulated to pressure from US antitrust authorities, saying it will give greater freedom to outside developers by letting them ally with competing advertising networks and use programming tools from other companies

Read more >>

http://link.ft.com/r/IOCBMM/XT4BS7/JQU4J/YHXCFC/UUO1TW/OS/t?a1=2010&a2=9&a3=10
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:04 PM
Response to Reply #5
12. Hurd set for $11m pay deal at Oracle

Mark Hurd could make nearly $11m a year in his new position at Oracle, putting him back among the tech industry’s highest-paid executives following his forced resignation as head of Hewlett-Packard last month

Read more >>
http://link.ft.com/r/IOCBMM/72SV4C/Z87P0/ZBK074/JI3YUR/50/t?a1=2010&a2=9&a3=9

DOES HURD HAVE TIES TO BFEE? FAILING UPWARD?
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:12 PM
Response to Reply #12
19. HP sues to block Hurd’s move to Oracle

Hewlett-Packard has sued to block Mark Hurd, its former chief executive, from taking up a senior role at Oracle, adding a twist to a saga that has transfixed Silicon Valley

Read more >>
http://link.ft.com/r/2SRI11/FXU7RD/EKRAI/TP7101/UU6F30/6C/t?a1=2010&a2=9&a3=8

IF THIS GOES THROUGH THE COURTS, ALL THOSE PRIOR RESTRAINT CLAUSES THAT CORPORATIONS LOVE WILL BE TRASHED...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:20 PM
Response to Reply #19
27. Hurd named co-president of Oracle

Mark Hurd is to become co-president of software maker Oracle only a month after being forced out as head of Hewlett-Packard over breaches of the computer makers’ code of conduct

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/KE3XEE/ID/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:26 PM
Response to Reply #5
34. Nokia drops Kallasuvo as chief executive

Nokia has removed Olli-Pekka Kallasvuo as chief executive and replaced him with Stephen Elop from Microsoft, the Finnish mobile phone group revealed on Friday.

Mr Elop, currently head of Microsoft’s business division, will take charge of the world’s biggest handset maker on September 21 when Mr Kellasvuo steps down after four years in charge.

Read more >>
http://link.ft.com/r/6NPSBB/YHW8NK/GYN7Q/ZBKVPT/6VXAIF/82/t?a1=2010&a2=9&a3=10
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:42 PM
Response to Reply #5
40. The Patent Office Could be to Blame for a US “Innovation Crisis” By Rocky Vega
Pat Choate, author of “Saving Capitalism From The Capitalists” and “Dangerous Business: The Risks of Globalization for America,” appears on Yahoo’s tech ticker to describe what he sees as America’s innovation crisis, a problem stemming from the massive backlog at the US Patent Office.

Here are a two of Choate’s key points:

* Small businesses create 55% of all breakthrough technologies… and their patent approvals are becoming a rarity. Patents awarded to entrepreneurial individuals have dropped from roughly 18 percent of approvals in the ’80s and ’90s to about 5.3 percent last year.

* Many new technologies — about 1.2 million patent applications are in need of approval — are going obsolete as they are in the pipeline waiting for review. The process now takes about three years on average, a delay that stifles business innovation and subsequently slows job creation.



Read more: The Patent Office Could be to Blame for a US "Innovation Crisis" http://dailyreckoning.com/the-patent-office-could-be-to-blame-for-a-us-innovation-crisis/#ixzz0zAnelumG
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:56 PM
Response to Original message
7. EUROPA--WACHET AUF!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:56 PM
Response to Reply #7
8. Creditors take control of Straumur

In a deal which could set a precedent for Iceland’s three largest banks, creditors have taken control of the country’s fourth-largest bank

Read more >>

http://link.ft.com/r/IOCBMM/XT4BS7/JQU4J/YHXCFC/RNG3UC/OS/t?a1=2010&a2=9&a3=10
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:05 PM
Response to Reply #7
13. Dublin in move to split Anglo Irish Bank

The Irish government has sought to bring to a close the costly bail-out of Anglo Irish Bank with the decision to formally separate the bank’s troubled property loans from its customer deposits

Read more >>
http://link.ft.com/r/IOCBMM/72SV4C/Z87P0/ZBK074/D495JW/50/t?a1=2010&a2=9&a3=9
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:09 PM
Response to Reply #13
45. MORE: Anglo Irish Bank to Be Split, One Part to Be Sold or Wound Down
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:15 PM
Response to Reply #7
22. German groups agree €30bn nuclear deal

Germany’s four big power companies are to pay the Berlin government a total of €30bn to extend the phase-out of the country’s nuclear power stations by up to 12 years

Read more >>
http://link.ft.com/r/4RNQTT/TPAQ8E/GYN7Q/PRVJM5/A7YCMI/LE/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:19 PM
Response to Reply #7
26.  Diamond to be new head of Barclays

Former academic who has built Barclays Capital from scratch into a multibillion-pound operation, will take over from John Varley at Barclays’ annual meeting next March

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/S3GSNR/ID/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:23 PM
Response to Reply #7
31. German banks try to fend off Basel III

Germany’s banks have launched a push to see off the threat of tough new international regulations, which they say could stymie their ability to function

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/QFHQRD/ID/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:24 PM
Response to Reply #7
33. Spanish lenders hasten back to bonds

Banks that were squeezed out of wholesale finance markets have returned in force with bond issues and raised more than $4bn in the first five days of September alone

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/XTC3L3/ID/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:35 PM
Response to Reply #7
39. PwC under scrutiny over Yukos audits
Edited on Fri Sep-10-10 06:55 PM by Demeter
The reputation of PwC, one of the world’s biggest audit firms, is set to come under scrutiny in a Moscow court as lawyers for Mikhail Khodorkovsky and ­Platon Lebedev, the jailed former owners of the Yukos oil group, make a final stand against embezzlement charges.

Read more >>
http://link.ft.com/r/KC2844/KEBMRW/K91WR/XTWLWH/XTCNEB/28/t?a1=2010&a2=9&a3=6
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:58 PM
Response to Original message
9. Chinese Lullaby
Edited on Fri Sep-10-10 06:01 PM by Demeter
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 05:59 PM
Response to Reply #9
10. China trade surplus in surprise drop

China’s trade surplus narrowed last month, with imports growing much faster than expected though not enough to defuse political pressure on Beijing over the level of its currency

Read more >>

http://link.ft.com/r/EB8122/A7F5ON/Z87P0/C5PIVX/72KA5A/B7/t?a1=2010&a2=9&a3=10
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:00 PM
Response to Reply #9
11. Japanese growth less sluggish

Japanese economic output expanded more than initially thought in the second quarter, but the revision was too small to reclaim the title of world’s second-largest economy from China.

Read more >>

http://link.ft.com/r/EB8122/A7F5ON/Z87P0/C5PIVX/3O50AV/B7/t?a1=2010&a2=9&a3=10
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:06 PM
Response to Reply #9
14. China and US likely to resume military contacts

China and the US are likely to resume military contacts before the end of the year, removing one of the disputes that has helped fan a period of rising diplomatic tensions between the two countries

Read more >>
http://link.ft.com/r/G8OTZZ/18DGX3/DXJ2Y/RNAL0A/A7IZIU/CM/t?a1=2010&a2=9&a3=9
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:07 PM
Response to Reply #9
15. China vows to treat foreign business fairly

The man expected to become the next leader of China’s ruling Communist party has responded to a growing wave of complaints from foreign investors by assuring them the country will remain an open and fair place for them to do business

Read more >>
http://link.ft.com/r/QM42II/0GXL8Y/06MUC/HDHILF/JINKY9/KI/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:11 PM
Response to Reply #9
18. Vodafone selling China Mobile stake for £4.3bn

Vodafone has agreed to sell its entire stake to banks led by Goldman Sachs, Morgan Stanley and UBS, who will in turn sell the shares on to institutional investors

Read more >>
http://link.ft.com/r/2SRI11/FXU7RD/EKRAI/TP7101/HDR4XF/6C/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:09 PM
Response to Original message
16. 1001 ARABIAN NIGHTS
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:10 PM
Response to Reply #16
17. Joblessness spurs Saudi hostility to expatriates

When a survey by HSBC bank revealed that expatriates working in Saudi Arabia were among the world’s wealthiest, with disposable incomes allowing them to buy luxuries such as yachts, many citizens of the kingdom were furious

Read more >>
http://link.ft.com/r/QM42II/0GXL8Y/06MUC/HDHILF/3OMG65/KI/t?a1=2010&a2=9&a3=8
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:18 PM
Response to Original message
24. OTHER PARTS OF ASIA--NOBODY SLEEP!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:18 PM
Response to Reply #24
25. Kabul steps in to stop run on biggest bank

Abdul Qadir Fitrat, Afghanistan’s central bank governor, said that the central bank and the finance ministry had agreed to support Kabul Bank

Read more >>
http://link.ft.com/r/4RNQTT/TPAQ8E/GYN7Q/PRVJM5/D4QAWI/LE/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:03 AM
Response to Reply #25
68. Karzai brother’s Kabul Bank villa deal revealed
http://www.tehrantimes.com/index_View.asp?code=226404

A major shareholder of Kabul Bank made Dh3 million (US$816,749) profit after using a loan from the institution to buy a Palm Jumeirah villa from the bank’s chairman, (Abu Dhabi based) The National can reveal. Mahmoud Karzai, a brother of the Afghan president, Hamid Karzai, bought the villa on July 2 2007 and resold it in early 2008, according to records. Karzai, who owns 7 per cent of the ailing Kabul Bank, said in an interview Monday there was “nothing wrong” with the transaction.

“I did it to get my residency visa,” he said. “My children were going to school here. I was not a big property investor in Dubai.”

Karzai confirmed the selling price was about Dh10m, against the purchase price of Dh7m...Karzai said he bought the villa, number 35 on Frond D of the palm-shaped island, from Sherkhan Farnood, the former chairman of Kabul Bank who was forced to step down last week. Farnood is at the centre of a major banking shake-up in Afghanistan after he and another executive were forced to resign from the bank because of a new rule that prevented shareholders from holding executive positions. The pair are also under scrutiny over $150m worth of investments in Dubai property, including 16 properties on the Palm Jumeirah and two plots of land in Business Bay....The government has frozen the assets of Farnood and several other shareholders of Kabul Bank. Karzai’s assets have not been frozen and there is no indication he has committed any wrongdoing.

The 16 Palm Jumeirah properties were signed back to the ownership of the bank by Farnood and his wife, Farida, as a condition of Farnood’s resignation. The properties included 15 villas and one apartment located on seven different fronds and the trunk of the island. They were all bought between December 19 2006 and October 21 2007. The Business Bay plots were also signed back to the ownership of the bank...

Most of the villas bought with Kabul Bank funds were registered under the name of Farnood, who owns 28.16 per cent of Kabul Bank, while at least five of the properties were registered to his wife’s name. Mrs Farnood owns 6.68 per cent of the bank’s shares. Two of the villa purchases were brokered by Masood Naseeb, the chief executive of Elysian Properties in Dubai. Mr Naseeb’s uncle is Ghulam Farooq Naseeb, who owns 2.96 per cent of Kabul Bank. (Masood Naseeb, who is travelling in Brazil where his company has expanded, declined to comment. His father, Ghulam Dawood Naseeb, owned a villa just down the road from four of the Kabul Bank villas on Frond O of the Palm, records show.)
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:06 AM
Response to Reply #68
69. Afghan security forces beat angry customers to prevent run on Kabul Bank
http://www.guardian.co.uk/world/2010/sep/08/security-forces-kabul-bank-run

Afghanistan's biggest bank, caught in a corruption scandal, closes all its branches bar one just before Muslim holiday...

...Corruption is a common complaint among ordinary Afghans and Washington fears graft is boosting the insurgency and complicating efforts to strengthen government control so foreign troops can hand over to Afghan security forces – whose salaries are paid through Kabul Bank....

..."It's Eid, we need money for food, clothes, candy," said Hameed Iqbal, an airforce member. "They said all the bank branches would be open, they lied. I'm extremely angry."...Kabul Bank's customers include 250,000 state employees.


DO WE HEAR A WORD OF THIS FROM THE MSM?

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:20 PM
Response to Original message
28. BANKSTERS
Edited on Fri Sep-10-10 06:33 PM by Demeter
Gangsta Lulaby (Bring Around the four fifth)

http://www.youtube.com/watch?v=6-h6MjpfDvo
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:21 PM
Response to Reply #28
29. Hedge funds feel pressure with August results

Several big-name managers struggled to gain traction, with many more under pressure to ramp up the level of risk in their portfolios to boost year-end numbers

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/ZB2UH3/ID/t?a1=2010&a2=9&a3=7


WARNING! DANGER, WILL ROBINSON!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:22 PM
Response to Reply #28
30. Citi under fire over deferred tax assets

Citigroup is at the centre of a dispute among analysts and accounting experts over whether it should set aside funds to cover $50bn of deferred taxes, a move that would reduce its capital buffer and weaken its balance sheet

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/OJLIS9/ID/t?a1=2010&a2=9&a3=7
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Caretha Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 08:41 PM
Response to Reply #30
56. $50 Billion in deferred taxes
That is amazing to me. Who thunk up that deal, and can I have some of what they are having?
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:39 AM
Response to Reply #56
63. If you get the CIA stamp of approval
I'm sure the IRS and the rest of the government will accommodate your wishes.

I am feeling intensely cynical--maybe it's autumn in the air.

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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 03:06 PM
Response to Reply #56
78. Actually you can...kinda-sorta
If you suffer a non-insured
Casualty and/or theft loss (and you itemize deductions), you can claim it any time within (I believe) 5 years. Warning: claiming a loss is one of those things that sends up a red flag with the IRS. Almost guaranteed to get ya, at minimum, a letter requesting documentation.

The rule of thumb: the occurrence must have been unpreventable.

Examples: damage caused by severe weather or a loss due to theft are considered valid income tax deductions, while damage by usual wear and tear or accidental loss of property are definitely not valid income tax deductions.

Special note: This does not apply to the sale of real-estate! You can have a loss and still pay for a gain.
Example: Say you paid $100,000 for a home that you can now sell for a net sale price of $200,000. Unfortunately, you also have $250,000 of first and second mortgages against the property. For tax purposes, you'll have a $100,000 gain if you sell, because the sale price exceeds your tax basis in the home ($200,000 sale price - $100,000 basis = $100,000 gain). The IRS doesn't give a ratz ass that you're still $150,000 in the red after the sale ($250,000 of debt vs. the $200,000 sale price). The bottom line is you can have a tax gain without actually having any cash to show for it.


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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:04 PM
Response to Reply #78
80. Aren't you a Cheerful Charlie this morning
thanks for the warning, Po.
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:19 PM
Response to Reply #80
88. If the additional notes were for actual improvements to the property
They may qualify to be added to the base. The improvements cannot be just normal maintenance, and must add value.

Replace a roof after 15 years. Nope.......Put the roof onto an additional story. Yup.

Moral of the story...Save all your receipts!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:24 PM
Response to Reply #28
32. Consumer finance rebounds from crisis

Finance companies that lend to consumers and smaller businesses in the US are finding it easier to fund themselves in the wholesale credit markets, marking a comeback from their troubles during the financial crisis

Read more >>
http://link.ft.com/r/0QSDPP/ZBWFL0/PNGIU/LQ6ECY/UU6RUP/ID/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:33 PM
Response to Reply #28
38.  Key Nomura rainmaker defects to BofA

Adrian Mee, head of European mergers and acquisitions at Nomura and one of the bank’s key rainmakers, has quit the Japanese investment bank to join Bank of America Merrill Lynch.

The move will come as a blow to Nomura which has suffered a series of high-profile defections just two years after acquiring the European and Asian investment banking of Lehman Brothers

Read more >>
http://link.ft.com/r/4RNQTT/8AS6XO/9MEOW/JIGIDQ/S3GJZ3/9A/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:07 PM
Response to Reply #28
44. SEC Says Prince, Rubin Knew of Losses on Assets at Suit's Focus
http://www.bloomberg.com/news/2010-09-09/prince-rubin-knew-assets-at-focus-of-sec-claim-fueled-losses-agency-says.html

Charles O. “Chuck” Prince and Robert Rubin were among Citigroup Inc. officials who knew 2007 losses were mounting on mortgage assets that U.S. regulators have faulted the bank for not disclosing, a court filing shows.

Prince, the bank’s chief executive officer at the time, and Rubin, who was then chairman, knew the highest-rated segments of subprime mortgage-backed securities were the source of about $200 million in new losses in October 2007, the Securities and Exchange Commission said yesterday in a filing at federal court in Washington. In July, the agency accused the bank and two other executives of failing to disclose $40 billion in subprime assets before losses surged. It didn’t target Prince and Rubin.

U.S. District Judge Ellen Huvelle asked the agency last month to explain what senior executives knew as she considers approving Citigroup’s $75 million settlement with the regulator. The agency’s identification of Prince and Rubin may trigger questions from the judge about why the agency didn’t bring claims against more people, said Peter Henning, a professor at Wayne State University Law School in Detroit.

“How aware were they is always an open question in these kinds of cases,” said Henning, a former SEC lawyer. “The SEC should have provided investors a little more assurance that senior management will be held accountable in these cases.” MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:10 PM
Response to Reply #28
46. Moody's: Bank writedowns at 2/3 of likely total
IT'S POSSIBLE--BUT NOT LIKELY

http://www.google.com/hostednews/ap/article/ALeqM5gMYPm1rEfm-2E_sX5IdBW3TJbmowD9I406FG0

Moody's Investors Service said Wednesday it appears U.S. banks have written off about two-thirds of the bad loans they're likely to face through 2011.

"It is clear to us that bank asset quality issues are past the peak," said Moody's Senior Vice President Craig Emrick. "However, charge-offs and non-performers remain near historic highs."

Although there is a sizable amount of nonperforming loans left to clear, "the remaining losses are beginning to look manageable," Emrick said.

Moody's estimates that U.S. banks will write off a total of $744 billion in bad loans between 2008 and 2011. About $476 billion of that has already been recognized, leaving $268 billion to be booked. The agency estimated that 68 percent of residential mortgage losses have been taken, but only 49 percent of commercial real estate losses. MUCH MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:11 PM
Response to Reply #28
82. Australian banks 'at risk'
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/7989962/Australian-banks-at-risk.html

Australia's banks could be at risk to many of the factors that caused the near collapse of financial systems in many Western countries....Australia's banks exposure to housing loans has increased to almost 60pc of the total outstanding credit.

From 43pc of total credit in 1999, housing loans now make up 58pc of the Australian banking systems lending, helping fuel a continued boom in house prices, which have doubled since 2002.

To fund this lending, Australian banks have come to depend increasingly on the international capital markets.

From 9pc of the Australian banking system's total funding in 1999, international bond issues now account for 18pc, and the country's banks have become among the largest bond issuers on the global markets....

MORE

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:46 PM
Response to Reply #28
91. Guide to the Most Crucial Bank Meeting You Never Heard Of
http://www.truth-out.org/guide-most-crucial-bank-meeting-you-never-heard-of63156

Washington - International bank regulators from around the globe will meet in the Swiss town of Basel on Sunday to finalize an important agreement that most Americans have never heard of: one to redraw rules so that banks can't bring the world economy to the brink of collapse again.

Federal Reserve Chairman Ben Bernanke is leading the U.S. delegation to the so-called Basel III talks. The assembled bank regulators are expected to agree to impose higher capital requirements on big banks. This would force them to keep more money in reserve to cushion against losses, one of the lessons of the near-meltdown in 2008, when banks had far more toxic assets on their books than funds to protect themselves against a downturn...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:10 PM
Response to Reply #91
103. More On Basel
http://www.economicpolicyjournal.com/2010/09/stunning-new-global-regulations-that.html

The Stunning New Global Regulations that Will Put More Money in the Hands of Governments and the Power Elite
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:52 PM
Response to Reply #28
93. Should US government debt be rated junk?
http://money.cnn.com/2010/09/02/news/economy/US_Treasury_debt_junk_status.fortune/index.htm

...But while investors are willing to accept little in the way of return to own U.S. government debt and the U.S. has retained its AAA credit rating, the metrics by which we use to evaluate the balance sheet of the United States continue to deteriorate.

Typically, a bond receives junk status due to its increased risk of default, and therefore pays higher yields to the owners of the bonds to make up for the risk. In general, the owner of a bond is subject to many risks: interest rate risk, inflationary risks, currency risk, duration risk, and so forth. In this instance, as it relates to the United States, we are actually most concerned with the risk related to future repayment. Specifically, with projected deficits for at least the next fifty years, will the United States be able to repay its debt and, if so, on what terms?

The most newsworthy nation to currently be rated junk status is Greece. The 5-year credit default swaps for Greece, which reflect the amount an investor is willing to pay for insurance against a potential default, are currently trading at 916 basis points(bps) which is substantially above the levels of the United States. In fact, credit default swaps for the American government 5-year bonds are trading at 49bps which reflect the AAA bond rating status of the United States.

In contrast to the price of both yields and credit default swaps, the key ratios from which we use to analyze a nation appear very similar between the United States and Greece, despite their divergent credit ratings. Specifically, the key ratios are: debt as percentage of GDP, deficit as a percentage of GDP, and debt as a percentage of revenue. We've outlined a comparative analysis between a typical junk-rated sovereign issues, in this case Greece, and the United States...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 06:30 PM
Response to Original message
37. World Bank backs investment in global farmland

The World Bank has backed the controversial practice of countries selling large tracts of agricultural land to overseas investors but is urging vendors to demand much more to increase their farming productivity and peoples’ livehoods.
Read more >>
http://link.ft.com/r/H60H77/26DLYP/Z87P0/5C9VQT/18ZTEJ/T3/t?a1=2010&a2=9&a3=7
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:47 PM
Response to Reply #37
87. Land Grabs in Poor Countries Set to Increase By Hilaire Avril
http://ipsnews.net/news.asp?idnews=52762

After weeks of rumours sparked by the leaking of a draft World Bank position paper on so-called land grabs in poor countries, the international financial institution has officially released its report on the surge in farmland purchases and leasing which have elicited controversy for over two years.

Acquisitions of vast tracts of fertile land in Africa by foreign governments and companies eager to secure affordable food resources in highly volatile commodity markets stirred public attention when the South Korean company Daewoo bought more than a million hectares of farmland in the east African island state Madagascar.

The World Bank report, titled "Rising Global Interest in Farmland. Can It Yield Sustainable and Equitable Benefits?" and released on Sep 8, cautions that "an astonishing lack of awareness of what is happening on the ground" exists -- even by the public sector institutions mandated to control this phenomenon.

It estimates that 2009 saw 45 million hectares of farmland deals going through and predicts that, "given commodity price volatility, growing human and environmental pressures, and worries about food security, this interest will increase, especially in the developing world".
MORE
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hamerfan Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:01 PM
Response to Original message
41. K&R!
Hi, Demeter! Great topic for the WEE.

http://www.vimeo.com/moogaloop.swf?clip_id=2539741

The clip has nothing to do with sleep or economics, but it's still very cool. Enjoy!


:kick:
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:05 PM
Response to Original message
42. Refiners Cut Oil Output in U.S. to April Low, Survey Shows: Energy Markets
http://www.bloomberg.com/news/2010-09-08/refiners-cut-oil-output-in-u-s-to-april-low-survey-shows-energy-markets.html

U.S. refiners probably cut crude- processing rates to the lowest level since April as they began seasonal maintenance, a Bloomberg News survey showed.

Refineries operated at 86.5 percent of capacity last week, down 0.5 percentage point from a week earlier, according to the median of 14 analyst estimates in the survey. The Energy Department is scheduled to release its weekly supply report at 11 a.m. today in Washington, a day later than usual because of the Labor Day holiday on Sept. 6.

The profit from turning oil into finished products has tumbled 48 percent since May amid a glut of fuel, boosting the incentive to carry out repairs and upgrades. Refiners typically idle units for maintenance in September and October, a time when gasoline use falls and consumption of heating-oil has yet to increase before the peak-demand winter months.

“We’re entering a period of the year where crude oil demand falls because the refiners in the world go into maintenance mode,” Edward Morse, head of commodities research at Credit Suisse Group AG in New York, said in a Sept. 7 interview on Bloomberg Television. “They cut back on their refinery runs by about 3 million barrels a day.” MUCH MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:21 PM
Response to Original message
51. Laugh and the world laughs with you, snore and you sleep alone.
Anthony Burgess

As I have been foolish enough to agree to deliver the NYT for the next ten midnights, I bid you all good night, until we meet again.

"I love sleep. My life has the tendency to fall apart when I'm awake, you know?"

* Ernest Hemingway
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bread_and_roses Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:24 PM
Response to Original message
52. "Sleeper" - Woody Allen
from Wiki

http://en.wikipedia.org/wiki/Sleeper_%28film%29

Miles Monroe, a jazz musician and owner of the Happy Carrot Health-Food store living in Manhattan in 1973, is cryonically frozen without his consent, and not revived for 200 years. The scientists who revive him are members of an underground movement: 22nd-century America seems to be a police state ruled by a dictator, about to implement a secret plan known as the "Aires Project" (sic). The underground movement hopes to use Miles as a spy to infiltrate the Aires Project, because he is the only member of this society without a known biometric identity...

... * In 1974, the film was awarded the Hugo Award for Best Dramatic Presentation at Discon II, the 32nd World Science Fiction Convention, in Washington, D.C.<1>
* In 2000, readers of Total Film magazine voted Sleeper the 30th greatest comedy film of all time.
* Also in 2000, the American Film Institute listed Sleeper 80th among its 100 Years… 100 Laughs.


When we read the news about warrentless wiretapping, extraordinary rendition, torture, the never-ending "war on drugs," the never ending "War on Terrorism, " etc etc etc, not to mention taser-happy police, "free-speech zones," etc etc etc, not to mention Corporations as "people" or the endless level of propaganda we are subjected to daily, we can only marvel that in 1973 everyone thought it was a reasonable premise to push the onset of a "police state" out two-hundred years...
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:42 AM
Response to Reply #52
64. Good One!
Edited on Sat Sep-11-10 09:42 AM by Demeter
This topic sure opens up this little universe for a close=up inspection of its guts (or lack thereof).

I would hate to think that our rescue can only be effected by Woody Allen, though.
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bread_and_roses Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 07:30 PM
Response to Original message
53. And on another sleepy note
Edited on Fri Sep-10-10 07:32 PM by bread_and_roses
NPR tonight had a little piece from the "Planet Money" team talking about how the punditry get all excited one day over something but on another, like now, drone about the issue in terms and tones guaranteed to put most of us to sleep (they didn't use that phrasing, but they could have, given their point). Their example was "widening credit ratio*" in Europe, with a warning from the Team that the droning obfuscatory term that sounds boring as hell might just be a sign that "things are worse than they seem."

*I think that was the term - meant the gap between what "good credit" governments (Germany) and "bad credit" governments (Ireland, Greece, others) were paying for loans.

on edit - sorry, meant to post this under "Europa"
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kickysnana Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-10-10 08:13 PM
Response to Original message
55. Looking into buying my Dad's estate.
It is nuts out there. The property tax value this year was $228,000. Next year it will be $187,000 unless there is a challenge. Zillow had it at $160,500 July 2 it is now $154,500. Comparables are asking about $159,000 but this one is going to sink under the inspector. I gave up and hired an appraiser to make it fair. I only want to go $125,000. I know all the above but we might have to let it go to a 60 day listing for the others to realize what is going on. If I buy it we save about 10,500 in Realtor fees and I qualify for first time home buyer assistance program. I don't want to go higher because I expect the housing market to bad for a while yet.

Last month only 4 semi-comparable houses sold within a mile of this first ring 3br 2 bath, suburban ranch style home built in 1948 before the tract houses.
It is 2 1/2 lots.

This house is 3 miles from the State Capital, on two crossing bus lines within 2 blocks, a major bike trail, has a well yet for the garage and lawn and city water in the house and room for a large garden (and chickens?) Oh and it has ducks, and a deer herd up to about 12 now visits often and it is wheelchair accessible for my Aunt but we would have to redo the main bathroom for her. It also has a garage big enough to handle the full size van. No more scraping ice! It also has a nice view of a lake about 1/4 mile away because the neighborhood sits at the top of a large flat hill.

Interesting times. I think my folks paid $11,500 for it in 1953. GI loan.

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hamerfan Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 01:48 AM
Response to Reply #55
57. For comparison,
$11,500 in 1953 is equivalent to $93,011.74 in 2010.
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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:03 AM
Response to Reply #57
58. For all parts of the country?

Some areas are notorious for having house prices much higher than others.

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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:47 PM
Response to Reply #58
97. I believe that is a figure based on inflation only.
How Much things cost in 1953

Yearly Inflation Rate USA 0.82%
Yearly Inflation Rate UK 2.2%
Average Cost of new house $9.550.00
Average wages per year $4,000.00
Cost of a gallon of Gas 20 cents
Average Cost of a new car $1,650.00
Kodak Brownie Flash Six-20 Camera History $13.00

http://www.thepeoplehistory.com/1953.html

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kickysnana Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:05 PM
Response to Reply #57
102. Thanks for that information.
When my Dad bought the land there were 3 lots he sold half a lot to a neighbor so they could build. Great long time neighbor.

It was only 2br when he bout it so he also added a large living room addition with a large basement room below and pushed out the wall in the kitchen to accommodate a large table. He built a second detached two car+ garage and a small shed. When he built the shed he kidded him about being a farm boy and the need for "out buildings" as a measure of prestige. I really miss him.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:51 AM
Response to Reply #55
65. That homebuyers assistance is gone already
you had to be under contract by end of May or something.

I wish you luck. My friend and neighbor has just been awarded (all except the deed) her parents' condo by the estate manager. The other sister wanted to keep it and rent it out, but that's not permissible under our bylaws, so they decided to actually let the kid sister inherit something of value, after skimming the estate for years during the mother's failing health and faculties...the father died without a will, the mother's was an Aspberger's nightmare.

Family squabbles are the worst. One of the consequences of the Baby Boom was too many siblings...I wish our family had been closer, but the times, the lack of suficient resources, and mental issues tore us apart...having autism in the genetics is a real handicap for generations.
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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:36 AM
Response to Original message
59. The Elephant in the Room

9/10/10 The Elephant in the Room by Greg Hunter

There has been a flurry of proposals this week on how to get the economy growing again. The President has been giving speeches across the country offering up plans for more infrastructure spending, business tax cuts and credits. The Republican plan includes keeping all the Bush tax cuts in place and rolling back spending to 2008 levels. Basically, the Democrats want more stimulus spending and some tax cuts, and the Republicans want more tax cuts and some spending reduction.

I do not hold out much hope for either plan to lift the deeply troubled economy. The reason? We are dancing around the problem child—the banks. (The financial reform bill passed in July did absolutely nothing to fix the banks or the economy.) On the bottom of the spectrum, about 120 banks have failed so far this year. Underwater commercial and residential real estate loans are swamping the banks. The trend here is for more failures than last year. Last week, economist Nouriel Roubini of Roubini Global Economics said more than half of the 829 U.S. banks on the FDIC’s “Problem List” are likely to fail. (Click here for more on this story.)

In July, I wrote about the cash problems the FDIC will face next year in a post called“Banking Disaster Largely Ignored By Mainstream Media.” At the current bank failure rate, the FDIC will surely be out of cash and relying on a Treasury credit line well before this time next year. FDIC Chairman Sheila Bair appeared on CNBC with Larry Kudlow this week. Did he ask her about the extreme stress with the banking system because of the surge in failures? Not a chance. The mainstream media continues to ignore this gigantic problem.

On the top end of the spectrum, there are the “Too Big to Fail” banks. Under Congressional pressure last year, the Financial Accounting Standards Board (FASB) changed the accounting rules for toxic assets such as mortgage backed securities. According to a Bloomberg report, “Changes to fair-value, or mark-to-market accounting, approved by FASB today allow companies to use “significant” judgment in gauging prices of some investments on their books, including mortgage-backed securities. Analysts say the measure may reduce banks’ write-downs and boost net income.” (Click here for the complete Bloomberg story.) To simply make up a value on questionable assets is nothing more than government sanctioned accounting fraud. To abandon a major principal of accounting is a financial abomination!

Renowned precious metals expert Jim Sinclair of JSMineset.com has written a new book called “A Pocketbook of Gold.” Sinclair sites this mark-to-market accounting scheme, allowed by FASB, as a major reason to own gold. Sinclair wrote, “Of course, if these toxic assets, for which there is little or no market, were ever properly taken onto the banks books, it would sink them completely. . . . The FASB changes are quite simply, a (now) legal way to lie about the financial health, and more specifically about the worthlessness of trillions of dollars of toxic assets on the Banks books. ‘Mark-to-Market’ has become ‘Mark-to-Myth.’ In truth, the situation is dire, and banks and lawmakers are trying to push back the day of reckoning. . .”

The dramatically impaired U.S. banking system is the reason why the economy is not getting better. According to financial writer Jim Willie, who holds a PhD in Statistics, there is only one solution to break the grip of this financial crisis. Last week, Mr. Willie wrote, “The secret to a legitimate solution is easy. The big banks must write down their credit portfolios, and accept deep losses. If that results in liquidation, so be it!! Accounting fraud is not a substitute for restructure. Nor is dispatching badly impaired assets to the USFed, whose by all accounts is a Bad Bank Repository.” (Click here for the complete story by Willie.)

The economy cannot truly be fixed with tax breaks, stimulus, more debt or small spending cuts. We have a deep financial insolvency dilemma. A real recovery will only be achieved by honest reporting by the mainstream media, and honest accounting by the banks. If we don’t demand this, then we will continue to dance around “The Elephant in the Room.”

http://jsmineset.com/2010/09/10/the-elephant-in-the-room/


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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:55 AM
Response to Reply #59
66. That's Japan's Dilemma for the Past 20 Years
They've been keeping their zombie banks alive for at least that long, and it's STILL not over.

So, are we slaves of the Banks? For sure the government is.
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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:53 AM
Response to Original message
61. Mutant Rat Epidemic Spreading Economic Black Plague
Edited on Sat Sep-11-10 07:55 AM by DemReadingDU
9/10/10 Mutant Rat Epidemic Spreading Economic Black Plague by D Sherman Okst
Rat-Pack-Series Part 1 of 6

We are in the midst of a rat infestation of epidemic proportions -- an ‘Economic Black Death’, a plague, spread by Xenopsylla cheopis (rat-fleas).

These are no ordinary rats. No. Our infestation consists of 900-hundred pound, grotesque, disgustingly despicable, giant, disease-carrying, plague-creating, rat-flea ridden mutant rats.

These rat-fleas carry, bite at, and fatally infect, the two things we need to survive: A sound economy and freedom.

You’d think 900 pound rodents spreading an Economic Black Death would be noticeably obvious to everyone.

Unfortunately, this is not the case.

For decades these mutants have remained hidden in the shadows of Wall Street, cowardly veiling themselves behind the walls of our government and lurking in the vile, foul-smelling financial sewers below where we sleep, work, and raise our families.

In 2006, financial bloggers - a minority group whose numbers probably total about a million today - saw rat droppings. We began blogging about the monster, mutant rat population. As the rats began to outgrow their hidings, more and more signs became visible.

Despite the economic fallout, the other 309 million Americans don’t know - or maybe don’t want to know - just how bad the Economic Black Plague is, or how bad it will become.

For whatever reason, the majority remain in denial. Some of them have caught a glimpse of a mutant rat here or there. Sometimes they just see a tail slither into a crevice, see a sagging attic filled with monster rats ready to cave in on what is left of their utopia. They smell the vile, distinct odor of rat urine. A growing number of this majority sense that something is lurking.

After catching a peek of of these grotesque, horrifying creatures, many a pretender will refuse to look twice.

Their logic: Acknowledgement will create reality, and that will make tomorrow different from yesterday.

Their motto: The problem is way over on the other side of the room - it won’t spread.

Their creed: Ignore the problem - it’ll go away.

It won’t. Rat multiplicity ensures it will only get worse.

Each future installment will discuss a variant breed of the 900-pound mutant rat packs which are spreading Black Economic Death.

Today’s installment exposes the 900 Pound Public Debt Rat.

In the next five parts of the Rat Pack Series I will report on the following: Empirical Bread & Circus Rat, the Corporatocracy Rat, the Globalism Rat , the Media Rat, the Fed Rat, the Education Rat, the Economic Advisor Rat, the Bank & Wall Street Rats and the .009 Pound SEC Porno Rat.

The last article will address the 900 Pound Leadership Deficit Rat.

lots more...
http://www.financialsense.com/contributors/d-sherman-okst/mutant-rat-epidemic-spreading-economic-black-plague

or at Chris Martenson's blog, the author posts as Davos
http://www.chrismartenson.com/forum/mutant-rat-epidemic-spreading-economic-black-plague/44322


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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 09:57 AM
Response to Reply #61
67. If that doesn't put you off sleeping, nothing ever will
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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:13 AM
Response to Reply #67
71. oh, forgot to add the picture





definitely, no sleeping


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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 11:43 AM
Response to Reply #61
75. Best Advice: in the comments
As to the timing - who the h#ll knows. But right now, time is our friend, we can get our ducks in a row.
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 03:09 PM
Response to Reply #61
79. Geez and if that ain't bad enough
Bedbugs are making a comeback.

Sleep well, if you can
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:10 AM
Response to Original message
70. EXPERT ADVICE
I'm going to put opinion, speculation and other analytical articles in their own subthread. Just trying to get organized! Hope it helps you absorb what you need in these perilous times.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:15 AM
Response to Reply #70
72. A Better Way to Fix the US Housing Crisis By Joseph Stiglitz
http://www.informationclearinghouse.info/article26330.htm

....Two million Americans lost their homes in 2008, and 2.8 million more in 2009, but the numbers are expected to be even higher in 2010. Financial markets performed dismally – well-performing, "rational" markets do not lend to people who cannot or will not repay – and yet those running these markets were rewarded as if they were financial geniuses.

None of this is news. What is news is the Obama administration's reluctant and belated recognition that its efforts to get the housing and mortgage markets working again have largely failed. Curiously, there is a growing consensus on both the left and the right that the government will have to continue propping up the housing market for the foreseeable future. This stance is perplexing and possibly dangerous....Distorted interest rates, official guarantees and tax subsidies encourage continued investment in real estate, when what the economy needs is investment in, say, technology and clean energy...The Federal Reserve Board is no longer the lender of last resort, but the lender of first resort. Credit risk in the mortgage market is being assumed by the government, and market risk by the Fed. No one should be surprised at what has now happened: the private market has essentially disappeared....

n short, government policies to support the housing market not only have failed to fix the problem, but are prolonging the deleveraging process and creating the conditions for Japanese-style malaise. Avoiding this dismal "new normal" will be difficult, but there are alternative policies with far better prospects of returning the US and the global economy to prosperity.

Corporations have learned how to take bad news in stride, write down losses, and move on, but our governments have not. For one out of four US mortgages, the debt exceeds the home's value. Evictions merely create more homeless people and more vacant homes. What is needed is a quick write-down of the value of the mortgages. Banks will have to recognise the losses and, if necessary, find the additional capital to meet reserve requirements....


I RECOMMEND THE WHOLE ARTICLE...BUT IF YOU HAVEN'T TIME, I THINK I GOT THE KERNEL OF IT.

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DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 10:27 AM
Response to Reply #72
73. prolonging the deleveraging process

I think that is the plan. Hence the slow decline into depression. Can't have anyone panic like in 1929, but 1929 is where we are headed. There's going to be a tipping point that the administration can't overcome, then kaboom, just like 1929.

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 11:38 AM
Response to Reply #73
74. The Plan is to Japan, not Kaboom, I Think
I really doubt it can be pulled off, however. They'd have to stop the greed and the fascism to make it work.
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 08:13 AM
Response to Reply #72
98. Why We're in for a Long, Hard Economic Slog
In the Great Depression and in every recession since, recovery of residential construction has preceded recovery in every other sector, and its recovery has been far larger in percentage terms than the recovery in any other major sector.

Applied to the Great Recession, it appears that those who see signs of a recovery may be grasping at straws.

http://www.calculatedriskblog.com/2010/09/paper-housing-and-business-cycle.html
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 12:09 PM
Response to Reply #70
76. MARK FIORE: a Suessical Summary
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 12:12 PM
Response to Reply #76
77. A HANDFUL OF QUOTES FOR THE OCCASION
The dissenter is every human being at those moments of his life when he
resigns momentarily from the herd and thinks for himself: Archibald
Macleish:
=
There are men - now in power in this country - who do not respect dissent,
who cannot cope with turmoil, and who believe that the people of America are
ready to support repression as long as it is done with a quiet voice and a
business suit: John Lindsay
=
We live in oppressive times. We have, as a nation, become our own thought
police; but instead of calling the process by which we limit our expression
of dissent and wonder "censorship," we call it "concern for commercial
viability.": David Mamet
=
The corporate grip on opinion in the United States is one of the wonders of
the Western world. No First World country has ever managed to eliminate so
entirely from its media all objectivity - much less dissent: Gore
Vidal
=
Resistance is feasible even for those who are not heroes by nature, and it
is an obligation, I believe, for those who fear the consequences and detest
the reality of the attempt to impose American hegemony.: Noam
Chomsky


COURTESY OF INFORMATION CLEARING HOUSE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:09 PM
Response to Reply #70
81. Can US Recover When Majority See Dbl Dip, Think US Is Fundamentally Broken? Joe Weisenthal
http://www.businessinsider.com/strategyone-survey-2010-9#ixzz0zGG7veYz

Earlier this week we asked, can the economy really recover when 92% of the population says the economy is garbage in a survey? That was the number in a WSJ/NBC poll, and it would seem to indicate a major headwind in terms of sentiment.

Here's more of what the average guy thinks, and it's bad.

Felix Salmon points to a survey from a group called StrategyOne. The main findings -- most Americans think a double dip is coming, many think it will be worse than the first recession, and the majority of Americans think the country is fundamentally broken.

So again, can America possibly recover with people this gloomy?

--HE DIDN'T SAY--
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:14 PM
Response to Reply #70
83. Roubini and Bremmer: Financial Crisis Ended the Era of Free-Market Capitalism
http://www.informationclearinghouse.info/article26336.htm

The global financial crisis just might give those in the U.S. who advanced the idea of a "new world order" their wish – but not exactly in the way they wanted.

Ian Bremmer, president of Political Risk Research, and influential economist Nouriel Roubini lay out a compelling argument in the September Institutional Investor asserting that the free-market system of capitalism has been so damaged by the recent financial crisis that the U.S., Europe and Japan face a future in which they will struggle to keep pace with deep-pocketed developing nations like Brazil, India, China and Saudi Arabia. The result could be a world in which the Western political and economic dominance that existed prior to the crisis is gone, with little hope of coming back.(GOOD!--DEMETER)

"Conventional wisdom has it that a U.S.-dominated unipolar global system is giving way to a multipolar order, one in which various emerging powers advance competing ideas for how the world should be run and act to further their agendas," the men write. "The financial crisis and global market meltdown have created conditions for a 'nonpolar' order -- one in which America's chief competitors remain much too busy with problems at home and along their borders to bear heavy international burdens."

'An Era of State-Driven Capitalism Has Dawned'

In a new global economy in which countries compete for market share on almost everything, national self-interest and protectionism is likely to flourish. With many of the major free-market economies mired in slow growth as they recover from the financial crisis, emerging nations with faster-growing economies and authoritarian governments will begin using state-sponsored capitalism to attempt to dominate markets. MORE!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:19 PM
Response to Reply #70
84. Walking in Reagan's Shoes By Mike Whitney
http://www.informationclearinghouse.info/article26342.htm

OBAMA TRYING TO SKIM THROUGH BY SPLITTING RHETORICAL HAIRS!

....Obama must know by now that his abysmal performance has left downcast Dems with no reason to drag themselves to the voting booths in November. In the last few weeks the administration has been frantically trying to link together mini-events to create the impression that Obama is still serious about "change". The appearance of Mahmoud Abbas and Benjamin Netanyahu at the White House was a particularly cynical attempt to show that Obama is involved in an issue that is of vital importance to many of his supporters. The so called "summit" was nothing more than a photo op intended to establish Obama's bone fides as a peacemaker. But Obama was unable to get any concessions from Israel, so the public relations scheme fizzled without any real sign of improvement.

But, perhaps, developments in the Middle East don't matter--except of course to the small group of "professional leftists" that Obama has publicly repudiated already. (like me) What matters to most voters is the economy, and clearly, the outcome of the midterms will be decided on the condition of the economy and, more specifically, on jobs. On that front, there's both good and bad news. The nonpartisan Congressional Budget Office (CBO) recently released a report confirming that the American Recovery Act (aka--Obama's fiscal stimulus) did exactly what it was designed to do. It lowered unemployment by about 1.5%, provided jobs for roughly 2.5 to 3 million people, and increased GDP between 1.7 percent and 4.2 percent. Also, former Fed governor Alan Blinder and economist Mark Zandi released a report which showed that--without the emergency actions of the Fed and Obama administration--GDP would have plunged 12% rather than 4%, and unemployment would have skyrocketed to 16.5%. (rather than 9.6%) The two conservative economists concluded that, absent the monetary and fiscal stimulus, the budget deficits would have exceeded $2,600 billion in fiscal year 2011, nearly twice present projections. Bottom line: The stimulus and bank recapitalization programs worked. (although the TARP clearly rewarded crooked bankers who triggered the financial crisis)

Obama can also boast that (according to economist Robert Shapiro) of the 8.5 million jobs that were lost in the downturn, 7,800,000 of those jobs or 92 percent were lost either on Bush's watch or the first 6 months of the Obama administration. (before his policies were enacted) In other words, Obama can only be held accountable for about 41,000 lost jobs, while the Republicans are responsible for roughly 8 million jobs...

YEAH, IF YOU USE THE PHONY NUMBERS!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:41 PM
Response to Reply #70
85. Ultra-Rich in Finance Are Meaner Than Rest of Us By Matthew Lynn
http://www.informationclearinghouse.info/article26321.htm

...At a conference in Zurich last week, the head of Barclays Wealth Management’s private-banking unit, Gerard Aquilina, appeared to issue a red alert about the richest of clients.

“Beware of the complexities of dealing with ultra high net worths,” Aquilina told his audience. “Demanding and often unreasonable” requests from them may create “impossible demands on the organization.”

Such as? Help with getting children into the right school, securing credit to buy property, or obtaining last-minute concert tickets, for example. Even worse, the richest of the rich turn out to be pretty stingy as well. They don’t even want to pay the full fee for all the services they demand.

It was strong stuff. But it was also an insight into the way the rich have changed over the past decade. They are, it turns out, a nasty bunch of people who are only getting nastier. And the banking industry only has itself to blame.

MORE
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 05:44 PM
Response to Reply #85
86. Why we can't blame income inequality on the post-1965 immigration surge. By Timothy Noah
http://www.informationclearinghouse.info/article26327.htm


In 1915, a statistician at the University of Wisconsin named Willford I. King published The Wealth and Income of the People of the United States, the most comprehensive study of its kind to date. The United States was displacing Great Britain as the world's wealthiest nation, but detailed information about its economy was not yet readily available; the federal government wouldn't start collecting such data in any systematic way until the 1930s. One of King's purposes was to reassure the public that all Americans were sharing in the country's newfound wealth.

King was somewhat troubled to find that the richest 1 percent possessed about 15 percent of the nation's income. (A more authoritative subsequent calculation puts the figure slightly higher, at about 18 percent.)

This was the era in which the accumulated wealth of America's richest families—the Rockefellers, the Vanderbilts, the Carnegies—helped prompt creation of the modern income tax, lest disparities in wealth turn the United States into a European-style aristocracy. The socialist movement was at its historic peak, a wave of anarchist bombings was terrorizing the nation's industrialists, and President Woodrow Wilson's attorney general, Alexander Palmer, would soon stage brutal raids on radicals of every stripe. In American history, there has never been a time when class warfare seemed more imminent.

That was when the richest 1 percent accounted for 18 percent of the nation's income. Today, the richest 1 percent account for 24 percent of the nation's income. What caused this to happen? Over the next two weeks, I'll try to answer that question by looking at all potential explanations—race, gender, the computer revolution, immigration, trade, government policies, the decline of labor, compensation policies on Wall Street and in executive suites, and education. Then I'll explain why people who say we don't need to worry about income inequality (there aren't many of them) are wrong...

MORE
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Po_d Mainiac Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 06:30 PM
Response to Reply #86
89. lots of charts at link below
http://sociology.ucsc.edu/whorulesamerica/power/wealth.html

Total Net Worth
Year  Top 1 percent	Next 19 percent	   Bottom 80 percent
1983	33.8%	           47.5%	       18.7%
1989	37.4%	           46.2%	       16.5%
1992	37.2%	           46.6%	       16.2%
1995	38.5%	           45.4%	       16.1%
1998	38.1%	           45.3%	       16.6%
2001	33.4%	           51.0%	       15.6%
2004	34.3%	           50.3%               15.0%
 
Financial Wealth
Year   Top 1 percent	Next 19 percent	   Bottom 80 percent
1983	42.9%	           48.4%	       8.7%
1989	46.9%	           46.5%	       6.6%
1992	45.6%	           46.7%	       7.7%
1995	47.2%	           45.9%	       7.0%
1998	47.3%	           43.6%	       9.1%
2001	39.7%	           51.5%	       8.7%
2004	42.2%	           50.3%	       7.5%
2007	42.7%	           50.3%	       7.0%


:puke:
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:20 PM
Response to Reply #70
95.  Is the US Economy as Broke as Lehman Was? By Michael Hudson
http://www.informationclearinghouse.info/article26311.htm

The Angelides Committee Sidesteps the Mortgage Fraud Issue

What is the difference between today’s economy and Lehman Brothers just before it collapsed in September 2008? Should Lehman, the economy, Wall Street – or none of the above – be bailed out of bad mortgage debt? How did the Fed and Treasury decide which Wall Street firms to save – and how do they decide whether or not to save U.S. companies, personal mortgage debtors, states and cities from bankruptcy and insolvency today? Why did it start by saving the richest financial institutions, leaving the “real” economy locked in debt deflation?

------------------------------------------------------

Insisting that Lehman should have shared in Washington’s $13 trillion giveaway, Mr. Fuld testified that his firm was just as savable as Countrywide or A.I.G. – or Fannie Mae for that matter. Lehman was perversely singled out, he claims. Was it not indeed as savable as the Fed and Treasury claim the U.S. real estate sector is? Like over-mortgaged homeowners, all it needed was enough time to finish selling off its portfolio, given enough loan support to tide it over.

The problem, of course, is that the securities that Lehman hoped to pawn off were fraudulent junk. American homeowners are victims, not crooks. Wall Street bailed out crooks at Countrywide and its cohorts. The credit-rating agency Fitch has found financial fraud in every mortgage package it has examined. And these are the packages that have made Wall Street rich and powerful enough to gain Washington bailouts to establish them as a new ruling class, bailouts to use for buying up Washington politicians and lawmakers, and for buying out the popular press to tell people how necessary Wall Street financial practice is to “support” the economy and “create wealth.”

-----------------------------------------------------------------

The explanation is that a double standard exists. The wealthy get bailed out – the creditors, not the debtors. And even the fraudsters, not their victims.

-----------------------------------------------------

Fed Chairman Bernanke testified on Thursday, Sept. 2, that “the market” itself breeds what most people would call fraud. Widening the market for home ownership necessarily involves lowering loan standards, he explained. But as the Lehman failure illustrates, where should we draw the line between “illiquidity” and insolvency on the one hand, and higher risk and outright fraud?

The Fed argues that the economy cannot recover without a solvent financial system. But what about that large part of the financial system based on fraud? Would the economy fall apart without it – without mortgage fraud, without deceptive packaging of junk mortgages, and for that matter without computerized gambling on derivatives? What of the credit-ratings agencies whose AAA writings were as much up for sale as the conscience and honesty of politicians on the Senate and House Banking Committees? Do we really need them?

And does the economy need more credit (that is, debt)? Or does it need jobs? Does it need to un-tax the banks and give tax-favoritism to Wall Street (“capital gains” tax rates) to enable it to earn its way out of debt at the expense of the production-and-consumption economy?
--------------------------------------------------------------------------

Footnotes

<1> Tom Braithwaite, “Fuld criticises Fed for letting Lehman fail,” Financial Times, September 2, 2010, and John D. McKinnon and Victoria McGrane, “Clashing Testimony Over Lehman Bankruptcy,” Wall Street Journal, Sept. 2, 2010.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Sep-11-10 07:22 PM
Response to Reply #70
96. Robert Scheer on The Great American Stickup
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jtuck004 Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 01:36 PM
Response to Reply #96
101. I will have to add this one to my books-to-get list

It has been really eye-opening, and quite sad, to read through books about the financial crisis, the histories of payday lending and more. It's been like reading a catalog of how to destroy a country. Laws were changed starting years ago for the home loan and payday loan industries, (including the tax prep stores whose instant tax refund is often just a high-interest payday loan). That laid the foundation for the subprime industry, then along the big banks and their campaign to get people into the government, change policies and laws to remove regulation and lower capital requirements. Then came the development of products which made formerly unnatractive mortgages saleable as CDO's, on and on. And they are still getting billions in bonuses today. Many of them really ought to be in jail, but people we have in power are protecting them at least by their inaction, sometimes more.

All of which went on while manufacturing was being sold across the ocean, all for short term profit.

All along the trail every single administration (including the present one) has been supportive of their actions, as books like this one make crystal clear.

I would like to think if most people knew these stories, things would be different, or they would insist on some change, get out in the streets. On the other hand, I see people learn about stuff like this and melt, as if somehome they don't have any power over their own country an longer. I know they do, but the job of re-educting and re-purposing a whole country would be a massive undertaking. It would have to be a cultural change, along the lines of what happened in the 50-60's. And I don't know if that's possible any longer, or any more possible than a huge collapse and the election of Glenn Beck. That may sound crazy, but in a nation where people wear their religion on their sleeve it is not that much of a leap to see that happening...

Thanks for the heads up about this one - looks good.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:13 PM
Response to Reply #70
104. THE AGE OF MAMMON
http://theburningplatform.com/blog/2010/08/29/the-age-of-mammon-featured-article/

The truth is that America has been captured by a financial class that makes no distinction between parties. These barbarians have sucked the life out of a once productive nation by raping and pillaging with impunity while enriching only them. They live in 20,000 square foot $10 million mansions in Greenwich, CT and in $3 million dollar penthouses on Central Park West.

These are the robber barons that represent the Age of Mammon. The greed, avarice, gluttony and acute materialism of these American traitors has not been seen in this country since the 1920′s. The hedge fund managers and Wall Street bank executives that occupy the mansions and penthouses evidently don’t find much time to read the bible in their downtime from raping and pillaging the wealth of the middle class. There are cocktail parties and $5,000 a plate political “fundraisers” to attend. You can’t be cheap when buying off your protection in Washington DC.

....“On the Forbes list of rich people, you will find hedge fund managers in droves, but no one who made his money as a hedge fund client.” - Mobs, Messiahs and Markets

GRAPHIC PORN!
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:18 PM
Response to Reply #70
105. Fed admits: Money is a spreadsheet
http://www.correntewire.com/fed_money_spreadsheet

In other words, Jamie Galbraith is 100% correct, and according to the Fed; modern money is a spreadsheet:

Modern money is a spreadsheet! It works by computer! When government spends or lends, it does so by adding numbers to private bank accounts. When it taxes, it marks those same accounts down. When it borrows, it shifts funds from a demand deposit (called a reserve account) to savings (called a securities account). And that for practical purposes is all there is. The money government spends doesn't come from anywhere, and it doesn't cost anything to produce. The government therefore cannot run out.

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:19 PM
Response to Reply #70
106. Is it worth it: Does corruption influence firm productivity?
Edited on Sun Sep-12-10 03:23 PM by Demeter
http://www.voxeu.org/index.php?q=node/5444

Does it pay to be corrupt? This column presents evidence from 22 emerging economies in Europe and the former Soviet Union on the effects of corruption on firm productivity. It finds that in a highly corrupt country, bribing officials actually has a negative effect on productivity, whereas in countries with strong institutions, it can open doors that competitors dare not touch....In countries that are classified as not corrupt or as having an adequate legal system, the story is the reverse: firms can benefit from paying grease money. An explanation could be that firms operating in countries with low corruption rates can profit because bribing is an unusual practice that helps them gain an advantage over their competitors.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:27 PM
Response to Reply #70
107. Free market has turned us into 'Matrix' drones
http://www.independent.co.uk/news/business/news/free-market-has-turned-us-into-matrix-drones-2064799.html

Ha-Joon Chang, the new kid on the economics block, is out to bust open a few myths

'I think the internet has probably changed the world more than the washing machine'...

Dr Ruth Lea, Economic advisor to Arbuthnot Banking Group

(THERE SPEAKS A WOMAN WHO NEVER HAD TO BOIL CLOTHES IN A KETTLE AND HANG THEM TO DRY IN THE WINTER)

'Different organisations do behave differently, and structures have an effect on our actions'

Professor Robert Wade, London School of Economics

'Of course the crisis revealed the futility of the dominant system of economics'

Professor James Galbraith, Lyndon B Johnson School of Public Affairs

'Just about every economic decision that you make has a moral aspect'

Dr Timothy Leunig, Reader, London School of Economics

'The dominant paradigm about capitalism being best for all is an illusion'

Professor Bob Rowthorn, Professor emeritus, Cambridge University
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:28 PM
Response to Reply #70
108. Obama’s Old Deal
Why the 44th president is no FDR—and the economy is still in the doldrums.

http://www.newsweek.com/2010/08/29/how-obama-got-rolled-by-wall-street.print.html
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:30 PM
Response to Reply #70
109. Auerback Urges U.S. Job Guarantees Over Jobless Benefits
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:36 PM
Response to Reply #70
110. The Ten American Industries Which Will Never Recover
1. State and local government jobs

2. Construction

3. Installation, maintenance, and repair.

4. Automotive manufacturing

5. Pharmaceuticals.

6. Big Telecom

7. Newspapers

8. Airline Employees

9. Realtors

10. Bank Tellers

The losses in these industries have to be offset by growth in others before there can be any net increase in American employment.

http://247wallst.com/2010/09/07/the-ten-american-industries-which-will-never-recover/
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:37 PM
Response to Reply #110
111. Future hiring will mainly benefit the high-skilled
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bread_and_roses Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 10:02 AM
Response to Original message
99. "there is a group of elite raptors who are seeking to vacuum every ounce of wealth ...
...from David Michael Green this week:

http://www.commondreams.org/view/2010/09/12

Our national problem isn't that we honorably disagree over two equally respectable philosophies of governance and therefore don't get along because we're all such good citizens that our passionate commitment to the public weal as we each see it best pursued leads us to be occasionally intemperate. No. Our problem is that there is a group of elite raptors who are seeking to vacuum every ounce of wealth out of the pockets of the other 99 percent of us and scoop it into their own pockets instead, and that they've employed a set of politician stooges who have in the last several decades jettisoned all meaningful behavioral limitations on what they're willing to do to achieve those ends. In that sense, the idea of some religious crackpot cracker in Florida burning the Koran isn't some bizarre anomaly. It is, instead, precisely the logical outcome of a set of politics in which you have "mainstream" members of Congress challenging the president's very nationality and his religion, calling him a socialist, and accusing him of legislating death panels to kill grannies. It is precisely what we should expect to have happened. It is precisely the product of three decades of Atwater/Gingrich/Rove style politics.

These (alleged) people cannot be negotiated with, because they are not interested in public policy-making that is in the national interest. That's not their mission, and only a naive fool ... would fail to understand that. Changing the tone in Washington - which, in any case, is always a far secondary aspiration relative to getting people jobs, protecting the environment, ending criminal wars, and so on ...


There's been lots of cheering going round here this week over "candidate Obama" reappearing - eh? wot? Just goes to show how desperate people are that a few mildly emphatic statements cause jubilation in the streets around here, MoveOn, and the rest of the "grotesque transactionalists." (I have permanently stolen the phrase I read somewhere about Progressives buying into the Devil's bargain of trading principle for a foot in the door and an ear at the door of the powerful - and justifying it as the "least worst" and "get something instead of nothing" - as a "grotesque transactionalism.")

Surely, I too would like to get excited about "no tax breaks for off-shoring jobs" - except I have to wonder what's in the fine print? I too would like to get excited about "no" to extending Bush tax cuts for rich, but didn't we hear other statements in the past that were then triangulated into their opposite? Did we or did we not have the "transparency administration" meeting behind closed doors with Banksters and Insurance Vampires?

In the few minutes I can stand to watch or listen to Dear Leader these days, I still find myself screaming at him "just tell people the TRUTH damn it! Just tell them the truth.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 12:00 PM
Response to Reply #99
100. Exactly. We are Become a Nation of Monsters and Victims of Monstrosity
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 03:39 PM
Response to Original message
112. A Parting Thought
* The best bridge between despair and hope is a good night's sleep
o E. Joseph Cossman


Good night everyone! Sweet dreams. Sorry I didn't get further along this weekend...
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Joe Chi Minh Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 04:48 PM
Response to Original message
113. I've mentioned this brilliant , "Mail on Sunday supplement" cartoonist called
Jacky Fleming, who draws withering cartoons about the banksters and other financial and political riff-raff, before.

A great DEMENTED cartoon today:

A hypnotist, wearing a topper, and dressed accordingly, with a twirly, "Victorian villain" kind of moustache, swinging a fob watch in front of his subject's eyes: "When I clap my hands, you will forget about bankers and their bonuses. You will blame the mess we're in on greedy poor people. You will insist that we cut the welfare state, and cut it fast. VERY fast.

Claps hands, with evil grin.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 07:12 PM
Response to Reply #113
114. That About Sums it up.
A thought occurred to me, as I took a last end-of-season swim in the pool (74F and breezy, but sunny):

What if the government suddenly stopped supporting the criminals and their criminal enterprises? Let the TBTF go down. Jail the war criminals and put them on trial. Bankrupt BP. Put in tariffs, trade barriers, exit fees for jobs and capital. Regulate. Keep the population fed and sheltered and get single payer.

Would we still endure a 20 year Depression, or worse, 40 years of Japanese stalemate?

Or would people suddenly be able to take a breath, reorganize the grassroots economy, and rebuild the nation?

Who knows what could be done, if the Tyrants and Looters got their feet off our necks?
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Joe Chi Minh Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 07:32 PM
Response to Reply #114
115. Especially, confiscating much of the country's looted assets and nationalising
core infrastructure.
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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Sep-12-10 07:41 PM
Response to Reply #115
116. Like Chavez!
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Joe Chi Minh Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-13-10 05:30 PM
Response to Reply #116
118. I didn't know that! Good for him. No wonder the media owners in Venezuela are whining so bitterly;
They could be next in line.

Republicans believe people should know actions have consequences. Grand larceny wearing a white collar is still grand larceny, indeed, the 'grandest' is always the province of white-collar criminals in high office.

Confiscating stolen property isn't even a penal sanction. Berthold Brecht put the matter very succinctly in relation to the banks, didn't he? And they were more or less honest by today's standards.
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jtuck004 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Sep-13-10 01:22 AM
Response to Original message
117. Just wanted to say thanks for the WE post again -
some great information.

Now off to sleep, though I had a little mustard on the sandwich. Hope the ghosts leave me alone...
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