It's the Cat's Meow Weekend Economists September 24-26,2010

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Well, you were probably wondering where your intrepid girl-aggregator was...

So was I. I spent FOUR HOURS on line researching hymns for a client. On Netzero, the free but incredibly SLOW web browser. Finally home, I made dinner for one--the Kid gave up on me long before I got back.

So, what have we here? A miracle has occurred, apparently. The market went up nearly 200 points and stayed there all day, from 10:30 on.

This is preposterous. As I am sure anyone who pays attention will admit.

But there it is.

I am reminded of the scene from Cats! where the broken-down Grizabella goes up to the Heavyside Layer and is reborn as a Glamour Puss.



http://www.youtube.com/watch?v=QInhsh5tgNc&feature=related

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1. ONE MEASLY BANK IN FLORIDA

Haven Trust Bank Florida, Ponte Vedra Beach, 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 First Southern Bank, Boca Raton, Florida, to assume all of the deposits of Haven Trust Bank Florida.

The two branches of Haven Trust Bank Florida will reopen during their normal business hours beginning Saturday as branches of First Southern Bank...

As of June 30, 2010, Haven Trust Bank Florida had approximately $148.6 million in total assets and $133.6 million in total deposits. First Southern Bank did not pay the FDIC a premium for the deposits of Haven Trust Bank Florida. In addition to assuming all of the deposits of the failed bank, First Southern Bank agreed to purchase essentially all of the assets.

The FDIC and First Southern Bank entered into a loss-share transaction on $127.3 million of Haven Trust Bank Florida's assets. First Southern Bank 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 $31.9 million. Compared to other alternatives, First Southern Bank's acquisition was the least costly resolution for the FDIC's DIF. Haven Trust Bank Florida is the 126th FDIC-insured institution to fail in the nation this year, and the twenty-fourth in Florida. The last FDIC-insured institution closed in the state was Horizon Bank, Bradenton, on September 10, 2010.

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4. and 3 Corporate Credit Unions!

9/24/10 Gov't seizes 3 failing wholesale credit unions
Gov't seizes 3 failing wholesale credit unions; will resell $50 B of toxic mortgage bonds

Federal regulators took over three key lenders to U.S. credit unions, after losses on mortgage investments threatened to topple them. The move was a reminder that parts of the financial system are still burdened by the toxic assets two years after the financial crisis peaked.

The National Credit Union Administration voted Friday to place into conservatorship three corporate credit unions: Members United Corporate Federal Credit Union of Warrenville, Ill; Southwest Corporate Federal Credit Union of Plano, Texas; and Constitution Corporate Federal Credit Union of Wallingford, Conn.

Conservatorship allows the government to run financial companies while keeping them open. The government will replace the companies' executives and boards. The companies will be shuttered, and their parts sold off to recoup losses.

Corporate credit unions provide wholesale financing and investment services for the more than 7,000 U.S. credit unions. They do not offer retail services to consumers. Most retail credit unions remain healthy, and will continue operating as normal.

Corporate credit unions made big bets on commercial and residential mortgage investments before the housing market collapsed. The bonds lost much of their value, leaving corporate credit unions with too little cash to cover unexpected losses. Regulators decided they could not be saved.

The government will repackage $50 billion worth of toxic bonds from the companies it seized. New investments worth about $35 billion will be sold to private buyers. The government will guarantee them against losses.

Officials said the plan will not cost taxpayers any money. The losses will be repaid with fees collected from credit unions, they said.

The NCUA has borrowed billions from the Treasury to stabilize corporate credit unions. Treasury agreed to extend that loan through June 30, 2021, the NCUA said. That gives retail credit unions more time to spread out the cost of repaying.

The NCUA has taken over five of the largest wholesale credit unions since March 2009. They account for 70 percent of the total assets of corporate credit unions, and 98 percent of the assets that lost value.

The two largest companies were taken over last year. The three seized Friday also suffered big losses during the global credit collapse. Officials said they were kept open because of their importance to retail credit unions.

"They weren't just out there operating," said Deborah Matz, chairman of the NCUA. "We were working very, very closely with their management to monitor their activities."


http://finance.yahoo.com/news/Govt-seizes-3-failing-apf-2215921552.html?x=0&sec=topStories&pos=main&asset=&ccode=

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6. Thanks! I don't know where to find that stuff

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8. It was a headline at Yahoo

I wasn't looking for anything, and it showed up.

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43. Closed Credit Unions 2010

15 Credit Unions closed in 2010

Industries Puerto Rico Federal Credit Union Manati Puerto Rico 09/13/2010
First American Credit Union Beloit Wisconsin 08/31/2010
Kappa Alpha Psi Addison Texas 08/03/2010
Certified Federal Credit Union Commerce California 07/31/2010
Norbel Credit Union Fort Collins Colorado 07/29/2010
Southwest Community Federal Credit Union Saint George Utah 06/30/2010
Orange County Employees Credit Union Orange Texas 06/09/2010
Convent Federal Credit Union New York New York 05/17/2010
St. Paul's Croatian Federal Credit Union Eastlake Ohio 05/01/2010
Tracy Federal Credit Union Tracy California 04/27/2010
South End Mutual Benefit Association, Inc. Bloomfield Connecticut 04/08/2010
Lawrence County School Employees Federal Credit Union New Castle Pennsylvania 03/05/2010
Mutual Diversified Employees Federal Credit Union Santa Ana California 02/26/2010
Friendship Community Federal Credit Union Clarksdale Mississippi 02/25/2010
Kern Central Credit Union Bakersfield California 01/08/2010

http://www.ncua.gov/Resources/ClosedCU/2010.aspx

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58. Government controls over 70% of the corporate CU market

9/24/10 Government seizes 3 middle-man credit unions

The federal regulator watching over credit unions on Friday placed three major middle-man type credit unions, beleaguered by toxic assets, into conservatership, giving the government control over 70% of the market.

The National Credit Union Administration will issue $35 billion in bonds backed by the government to fund the federal rescue and prop up the bad assets that had been owned by the three corporate credit unions.

If those bad assets, now owned by the government, were to be put on the market today, they'd be worth about $50 billion, regulators said.

Consumers won't be impacted. Credit unions, like banks, pay into a special insurance fund that protects deposits should one go bad. In that vein, there also exists a "corporate stabilization fund," for credit unions which allows Treasury to make an emergency loan to protect the industry, and the industry pays back Treasury over a number of years.

Corporate credit unions, provide loans and liquidity to retail credit unions that consumers use.

Careful to say the move isn't a bailout, NCUA chair Debbie Matz, assured that "not one dime of taxpayer dollars will be at risk" in the move.

"It's business as usual. The over all credit union system is sound." Matz said. "This will be invisible to the consumer."

http://money.cnn.com/2010/09/24/news/economy/credit_union_takeover/?section=money_latest

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63. More from ZeroHedge

It's really another bailout...


9/24/10 Three Wholesale Credit Unions Nationalized As US Securitizes $50 Billion In Legacy Toxic Assets; Failure "Sweep Under The Rug" Friday Just Got Real

It is Friday afternoon, and of course the most troubling news come out. Last week it was that the idiots in charge are raising their stake in Ally to 80%; this week also did not disappoint: the WSJ reports what can arguably be the most important story of the week - to wit: the government just seized three wholesale credit unions and has launched an "unusual plan" to manage $50 billion of troubled assets inherited from failed institutions. The unions taken into conservatorship include Members United Corporate Federal Credit Union in Warrenville, Ill., Southwest Corporate Federal Credit Union of Plano, Texas, and Constitution Corporate Federal Credit Union, Wallingford, Conn., which had a total of $19.67 billion in assets as of July. As for the funding of the new bailout program: "To help fund the rescue, the National Credit Union Administration plans to issue $30 billion to $35 billion in government-guaranteed bonds, backed by the shaky mortgage-related assets."

Once again, uncle Sam bails out those who have committed federal crime and sticks Joe Sixpack with the bill. How is it a crime? "Under federal rules, wholesale credit unions were supposed to invest only in safe, liquid assets. But some institutions chased higher returns by loading up on securities backed by subprime mortgages or other risky loans. Their portfolios were decimated by the mortgage meltdown." And here is the punchline: "Officials said the plan won't cost taxpayers any money." How can one not simply laugh at the continued lies and crimes that occur each and every day, and are perpetrated by every single person in charge of this collapsing country?

lots more...
http://www.zerohedge.com/article/three-wholesale-credit-unions-nationalized-us-securitizes-50-billion-legacy-toxic-assets-fai

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65. SEE ALLY POST BELOW UNDER HOUSE CATS

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70. FRONT PAGE WSJ: Credit Unions Bailed Out

http://online.wsj.com/article/SB10001424052748703499604575512254063682236.html?mod=WSJ_hps_MIDDLETopStories

...Regulators announced Friday a rescue and revamping of the nation's wholesale credit union system, underpinned by a federal guarantee valued at $30 billion or more. Wholesale credit unions don't deal with the general public but provide essential back-office services to thousands of other credit unions across the U.S. The majority of retail credit unions are sound, but they will have to shoulder the losses through special assessments over the next decade.

Friday's moves include the seizure of three wholesale credit unions, plus an unusual plan by government officials to manage $50 billion of troubled assets inherited from failed institutions. To help fund the rescue, the National Credit Union Administration plans to issue $30 billion to $35 billion in government-guaranteed bonds, backed by the shaky mortgage-related assets.

Officials said the plan won't cost taxpayers any money. Still, it marks the latest intervention by the U.S. government into a financial system weakened by the real-estate bust. Bad bets on mortgage-backed securities have now killed five of the nation's 27 wholesale credit unions since March 2009. The federal government, which now controls about 70% of the total assets at such credit unions, said the surviving institutions will be reined in so that they take fewer risks with their investments....

Wholesale credit unions, also known as corporate credit unions, invest money for retail credit unions and provide them with check clearing and other services. Since the start of 2008, 66 retail unions have failed, compared with more than 290 banks or savings institutions. Credit unions are member-owned cooperatives that act much like banks...

WHAT A MESS. TBTF

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49. Also, North County Bank, Arlington, WA

On Friday, September 24, 2010, North County Bank, Arlington, WA was closed by the Washington Department of Financial Institutions, and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed.

http://www.fdic.gov/bank/individual/failed/northcounty.html

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53. THANKS AGAIN!

North County Bank, Arlington, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Whidbey Island Bank, Coupeville, Washington, to assume all of the deposits of North County Bank.

The four branches of North County Bank will reopen on Monday as branches of Whidbey Island Bank...As of June 30, 2010, North County Bank had approximately $288.8 million in total assets and $276.1 million in total deposits. Whidbey Island Bank will pay the FDIC a premium of 2.0 percent to assume all of the deposits of North County Bank. In addition to assuming all of the deposits of the failed bank, Whidbey Island Bank agreed to purchase essentially all of the assets.

The FDIC and Whidbey Island Bank entered into a loss-share transaction on $221.9 million of North County Bank's assets...The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $72.8 million. Compared to other alternatives, Whidbey Island Bank's acquisition was the least costly resolution for the FDIC's DIF. North County Bank is the 127th FDIC-insured institution to fail in the nation this year, and the ninth in Washington. The last FDIC-insured institution closed in the state was The Cowlitz Bank, Longview, on July 30, 2010.

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54. MINIMUM LOSS FOR THE WEEK:

$200.1m FROM BANKS

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102. FROM LAST DECEMBER: Bank failures in Georgia crushing small business and home owners

http://www.nakedcapitalism.com/2009/12/bank-failures-in-georgia-crushing-small-business-and-home-owners.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

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2. First rec!

Our electric keeps going off and on. Not sure what's going on around here.

Good Evening!

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3. AMERICAN SHORTHAIR

Color: American Shorthairs come in 80-plus colors and designs.

Grooming: Relatively low-maintenance, experts say, although regular brushing as much as three times a week can help manage their thick coat. Bathing is optional. Shorthaired cats should not be bathed more often than once every six weeks to keep their skin from drying out.

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5. Neoliberalism and the For-Profit, Predatory Ed. Industry: You Can't Regulate a Criminal Enterprise

http://www.truth-out.org/neoliberalism-and-for-profit-predatory-educational-industry-you-cant-regulate-a-criminal-enterprise6

You might have been following Secretary of Education Arne Duncan and his department's attempts to reign in the for-profit universities and colleges for their criminal activities. Perhaps you recognize some of these for-profit universities and colleges, for they are well known due to their marketing and are heavily traded on the stock market - DeVry (ticker: DV), Grand Canyon Education (LOPE), as Apollo Group (APOL), ITT Educational Services (ESI), Kaplan (WOP) and Strayer Education (STRA). There are literally thousands of these schools in existence and most are online schools with office fronts that act as administration centers for the whole for-profit syndicate.

The Department of Education (DOE), after a 2010 Government Accounting Office (GAO) sting operation that unveiled the vile tactics of 15 of these predatory institutions, says it wants to adopt new regulations that would rein in the for-profit educational industry. Yet, this is not the first time the "industry" has been caught with its pants down and its fists full of dirty money. Earlier, in 2009, another GAO investigation was launched and similar acts of criminality were found (United States Government Accountability Office, Proprietary Schools: Stronger Department of Education Oversight needed to help ensure only eligible students receive financial aid, August 2009,).

Under Title IV of the Higher Education Act, any school can receive federal taxpayer funds in the form of student aid if it offers courses of study such as certificates, associate degrees, bachelor degrees, graduate degrees or professional degree programs. Proprietary schools offer a small percentage of bachelor degrees, but a substantial percentage of certificate degrees. Overall, the proprietary sector receives the smallest percentage of Title IV funds, 19 percent, as compared with the public and nonprofit, which is 48 percent and 33 percent, respectively. Although the majority of enrollees in these colleges are in four-year programs, the two-year proprietary schools account for a significant percentage of the proprietary customer base...

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7. We have one of these shorthairs

There is an 'M' on the forehead

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78. I Have Two

If the grandpuppy hasn't frightened the older one to death this evening...

haven't found a body yet.

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11. Lewis Lapham on "the end of capitalism"

The former longtime editor of Harper's discusses the possibility that America's economic system will go extinct

http://www.salon.com/news/politics/war_room/2010/09/23/lynn_parramore_lewis_lapham/index.html

Historically, what do you see as the dominant characteristics of America?

It’s faith in the spirit and mechanics and moral value of capitalism. It is a country of expectant millionaires. You have the notions of risk, of labor put to a productive use, deferred pleasure — ideas that come out of our Puritan ancestry. And Puritans, by the way, were also venture capitalists. The plantation in Plymouth, and then in Massachusetts Bay, was intended to bring money to its investors in London.

Capitalism is the promise — it’s the bet on the future. It’s the hope of a new beginning over the next ridge of mountains, around the next bend in the river. It gives the common man a chance. That’s in the Declaration of Independence: life, liberty and the pursuit of happiness. The original wording was: life, liberty and property. But happiness and property were almost synonymous in the Calvinist mind!

Capitalism, as you mention, is future-oriented. Do you think it relies on historical amnesia?

Well, there’s a new book called "Relentless Revolution: A History of Capitalism," by the eminent historian Joyce Appleby. And her argument — and I think it’s probably true — is that capitalism is an historical phenomenon. It’s not a given. It’s not human nature. It arises at the end of the 16th century in Holland, but then is developed over the next four centuries for the most part in England and America. It’s had a life span of four centuries.

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21. Congress Passes Small-Business Bill; Obama Will Sign

http://www.truth-out.org/congress-passes-small-business-bill-obama-will-sign63545

Small businesses stymied by a lack of credit should get lots of help soon, as the House of Representatives on Thursday passed legislation to provide billions in aid and sent it to President Barack Obama. The vote was 237-187.

Obama, who said he intended to sign it into law Monday, chided Republicans for “months of partisan obstruction and needless delay” and called the measure a “common-sense” plan for the economy.

“The small business jobs bill passed today will help provide loans and cut taxes for millions of small business owners without adding a dime to our nation’s deficit, “ the president said in a statement. “I’m grateful that Democrats and a few Republicans came together to support this common-sense plan to put Americans back to work.”

Many Republicans, though, saw the measure differently. “It’s one more bailout, and the American people know you can’t bail and spend your way to prosperity,” said House Republican Conference Chairman Mike Pence of Indiana...

THEY ASSUME THERE'S STILL ANY SMALL BUSINESSES LEFT TO BAIL OUT...

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31. Obama pressed to look at CEOs for Summers replacement

Lawrence Summers’ looming departure as director of the National Economic Council will offer Barack Obama his biggest opportunity since taking office of reshaping the administration’s approach to economic policy

Read more >>
http://link.ft.com/r/NA70KK/TPZNPG/87I64/5C9HEW/PRH7RG/JY/t?a1=2010&a2=9&a3=23

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33. Senate Repeals Part of Financial Overhaul

http://online.wsj.com/article/SB10001424052748704814204575508571027559554.html?mod=dist_smartbrief

The Senate voted to repeal a part of the recent financial-regulation overhaul that allowed the Securities and Exchange Commission to keep secret some information it gathers during examinations.

The move is a blow to SEC Chairman Mary Schapiro, who has fought to keep the language that was included in the Dodd-Frank financial law passed in July.

The law says the SEC can withhold information that it obtains through surveillance and some other oversight activities when it is faced with a Freedom of Information Act request.

Sen. Patrick Leahy (D., Vt.) said the Senate's action Tuesday night will "restore stability and accountability to our financial system." He said "care must always be taken to ensure that exemptions to FOIA's disclosure requirements are narrowly and properly applied."

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35. U.S. Home Prices Fell 3.3% in July From Year Earlier

http://www.bloomberg.com/news/2010-09-22/home-prices-in-u-s-fell-3-3-in-july-from-year-earlier-fhfa-index-shows.html


Prices fell 0.5 percent from June, the Federal Housing Finance Agency in Washington said in a report today. Economists had projected prices to fall 0.2 percent from the previous month, based on the average of 15 estimates in a Bloomberg survey. The agency revised the previously reported May-to-June decline to 1.2 percent from 0.3 percent.

Foreclosures are boosting the supply of available properties and reducing prices, even as mortgage rates tumble to record lows. The time it would take to clear the market of homes for sale was 12.5 months in July, the highest in more than a decade of data, according to the National Association of Realtors. Banks seized a record 95,364 properties from delinquent borrowers in August, according to RealtyTrac Inc., an Irvine, California-based seller of housing data...

The biggest price loss was 1.6 percent in the region that includes Florida, Georgia, North Carolina and South Carolina, according to the report. The area that includes Arizona and Nevada posted the second-largest decline, at 1.5 percent.

Nationally, sales of existing homes in July plunged 27 percent to a 3.83 million annual pace, the lowest level on record, NAR said Aug. 24. July sales of new homes dropped to an annual pace of 276,000, the fewest since data began in 1963, the Commerce Department reported Aug. 25.

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57. America Is Suffering a Power Outage (and the Rest of the World Knows It) By Dilip Hiro

http://www.informationclearinghouse.info/article26432.htm

Make poverty history!” A catchy slogan, and an admirable aim, it was adopted by world leaders at the United Nations summit in New York on the eve of the New Millennium. A decade later, it is America which has made history -- even if in the opposite direction. The latest U.S. Census Bureau statistics show that, in 2009, one in seven Americans was living below the poverty line, the highest figure in half a century. Last month’s 95,000-plus home foreclosures broke all records.

These were only two of the recent glaring signs of the sagging might of the globe’s “sole superpower,” now heavily indebted to Beijing. Other recent indicators include its failure to corral China into revaluing its currency, the yuan, against the dollar, and to compel Russia, China, India, or even Pakistan to follow its lead in suppressing the oil and natural gas trade with Iran. With Washington failing to impose its monetary or energy policies on the rest of the world, we have entered a new era in history....

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59. Los Angeles Mayor: We Will Not Go Bankrupt

http://www.cnbc.com/id/39302611

...The unemployment rate in Los Angeles currently stands at 14.5 percent, much higher than the 9.6 percent national average and the 12 percent unemployment rate for the state of California as a whole.

Villaraigosa blamed the high unemployment rate on the downtick of three of the city’s main industries: construction, imports and film. “These are three key areas where you see a drop and a big reason why we have an unemployment rate of 14.5 percent,” Villaraigosa said.

The unemployment rate for construction alone stands at about 35 percent, coming off of a 5-year construction boom in the downtown L.A. area that has since collapsed. Imports are down as well, which for a city that serves as the gateway for 44 percent of all seaborne goods in the United States has a large impact on jobs.

In an effort to attract more small businesses to the Los Angeles area, which will create more jobs, Villaraigosa has declared a business tax holiday for any business that wants to move to LA...

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73. Without Construction, What of Blue-Collar Men? FROM OCTOBER 1

http://blogs.wsj.com/economics/2009/10/01/without-construction-what-of-blue-collar-men/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wsj%2Feconomics%2Ffeed+%28WSJ.com%3A+Real+Time+Economics+Blog%29

...one side effect of the housing boom was that the construction industry’s growth provided an alternative route to a middle-class life for millions of blue-collar workers, filling a void left by the decades-long shrinkage of the U.S. manufacturing sector.
Unemployed construction worker Neal King

The recession has wiped out that route, while also accelerating job losses in manufacturing — and the impact has been felt most deeply by non-college-educated men, and Hispanics.

“I’ve been describing September 15, 2008 as the day the music stopped,” said Ken Simonson, chief economist with the Associated General Contractors of America, a Washington-based trade group. The credit crisis and recession halted an 11-quarter string of spending growth on nonresidential structures, the second-longest string of gains in the post-World War II period.

While the housing market was first to decline and is now showing signs of a rebound, it is only one part of the construction industry. It’s the nonresidential building industry that employs two-thirds of the workers, and makes up three-quarters of the total spending, said Mr. Simonson. And it’s nonresidential that’s trapped now in the severe downturn the rest of the economy is starting to shake off.

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91. Canadian Health Care, Even With Queues, Bests U.S.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a_zs1Y1FspIM

IF ANYONE STILL NEEDS CONVINCING--THIS OUGHT TO DO IT!

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9. MONEY CATS

Cats of this coloration are believed to bring good luck in the folklore of many cultures. In the United States, these are sometimes referred to as money cats. The Japanese Maneki Neko figurine is almost always a calico cat.

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10. Jamie Dimon’s Mansion Finally Under Contract

http://blogs.wsj.com/developments/2010/09/23/jamie-dimons-mansion-finally-under-contract/?mod=WSJ_myyahoo_module

It might have taken a few years - and a nearly 50% price chop- but JP Morgan CEO Jamie Dimon finally found a buyer for his Chicago mansion.

The deal was inked this week. A spokeswoman for listing agent Janet Owen would not reveal any information about the buyer, selling price or closing date.

As we’ve reported, Mr. Dimon has had trouble unloading the eight-bedroom, nine-bathroom home. It was listed in 2007 for $13.5 million. It fell to $9.5 million, then to $6.95 million...Depending on how much he spent remodeling the showpiece built in 1870, he could still come out ahead: Mr. Dimon paid $4.68 million back in 2000.

Mr. Dimon now resides in Manhattan. As Journal colleague Shira Ovide points out: He’ll “need to hitch a long ride to catch the Cubs at Wrigley.”

THERE'S THAT CHICAGO LINK AGAIN...I FEEL A CHILL IN THE AIR FROM THE WINDY CITY!

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32. Lehman retrieves $60bn for creditors

The bankrupt estate of Lehman Brothers has recovered nearly $60bn in value for creditors since September 2008, but a decision on how to distribute the funds is some way off

Read more >>
http://link.ft.com/r/NA70KK/3OI872/HI3M9/RNAEVO/C5QT4D/PJ/t?a1=2010&a2=9&a3=23

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36. Lehman sees bankruptcy plan confirmation in Q1

http://uk.reuters.com/article/idUKTRE68L54L20100922

Though not officially settled, Lehman said it has made progress in narrowing the amount of claims from third parties, affiliates and others by more than half, to $464 billion (296 billion pounds) from almost $1.2 trillion. It said big-bank claims resolution will be a "major challenge" for 2011.

Lehman has been looking to cut costs as it winds down operations. It expects to reduce staff by 6 percent to 500 people as of April 11...Within the next 60 days, Lehman hopes to complete talks and agreements with affiliates and administrators. Lehman also said it is targeting the year's end for completing its final reorganization plan proposal. If the proposal is confirmed, it would clear the way for the company to emerge from bankruptcy.

Lehman plans to wind down its remaining assets and operations and emerge as a newly created business called Lamco. Lamco would manage what is left of Lehman's commercial real estate and other assets. The proposal is subject to court approval.

Earlier this week, Lehman creditors in a footnote in court documents referenced a possible sale of apartment complex owner Archstone, one of its largest assets, to its affiliated Lehman Commercial Paper Inc and Luxembourg Residential Properties Loan Finance Sarl...Archstone was the second-largest U.S. real estate investment trust before being bought for $22.2 billion in 2007, adding hundreds of prime apartment buildings and billions of dollars of new debt to Lehman's books. Lehman owns 47 percent, while Barclays and Bank of America Corp (BAC.N) own another 47 percent.

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38. Banks Pressed on Sour Home Loans

http://online.wsj.com/article/SB10001424052748704814204575508143329644732.html?mod=dist_smartbrief

Big U.S. banks are facing legal pressure to make up for losses tied to pools of soured low-end mortgage loans.

In the latest effort, a group of investors in 2,300 mortgage securities worth roughly $500 billion is seeking to force several banks that originated or are now servicing faulty subprime-mortgage loans to repurchase or modify them.

The move follows other similar efforts. Bond and mortgage insurers, hard hit in the housing crisis, have filed lawsuits accusing lenders and banks of sticking them with flawed loans marred by poor underwriting and faulty appraisals.

Federal Home Loan Banks in Pittsburgh, Seattle and San Francisco have sued Wall Street banks, seeking to force them to buy back mortgage-backed bonds. In July, the Federal Housing Finance Agency issued 64 subpoenas to obtain information about loans underpinning securities sold to mortgage giants Fannie Mae and Freddie Mac....The banks and lenders are fighting these efforts, saying they aren't responsible for the housing crash...

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39. Former Fed Chief Volcker `Not Worried' About Deflation

http://www.bloomberg.com/news/2010-09-23/former-fed-chief-volcker-doesn-t-expect-emergence-of-deflation.html

Former Federal Reserve Chairman Paul Volcker, an adviser to President Barack Obama, said he doesn’t expect a broad-based decline in prices.

“I’m not worried about deflation,” Volcker said today to reporters after a speech at a banking conference in Chicago. “I think we’re on a path to price stability.”

“I do not think we should be worried about and consumed by the problem of a potential deflation that doesn’t exist,” he said.

The Federal Open Market Committee said Sept. 21 that inflation is “somewhat below” levels consistent with the Fed’s congressional mandate for stable prices. The central bank said it’s “prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate.”

THAT'S THE BEAUTY OF VERY OLD AGE...

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40. What America needs is a payroll tax cut By Nouriel Roubini

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/16/AR2010091605846.html

...The administration knows that it needs to fashion a revenue-neutral fiscal stimulus that increases labor demand and consumption. Its proposal to make permanent a research and development tax credit that dates to the 1980s, and then to enact a temporary investment tax credit allowing firms to write down capital investments at 100 percent of cost, are welcome -- but too modest a cure for what ails the economy.

A much better option is for the administration to reduce the payroll tax for two years. The reduced labor costs would lead employers to hire more; for employees, the increased take-home pay would boost much-needed economic consumption and advance the still-crucial process of deleveraging households (paying down credit card debt and other legacies of the easy-credit years).

Most policy approaches, including the Obama proposals, have tended to subsidize the demand for capital rather than the demand for labor. That has the problem backward. In the second quarter, capital spending reached an annual growth rate of 25 percent. The argument that increased demand for capital leads to greater demand for labor (i.e., if you buy more machines you need workers to run them) has not held up. Firms are investing in capital goods, equipment and offshore offices that allow them to produce the same amount of goods with less -- and lower labor costs. To avoid a chronic increase in the unemployment rate, we need to subsidize the demand for labor -- achieving job creation -- rather than making it cheaper to buy capital, as investment and other tax credits would do.

President Obama could fully fund the reduction in payroll tax by allowing the Bush tax cuts for people making more than $250,000 a year to expire. Meanwhile, the Bush-era cuts affecting middle- and low-income earners -- the vast majority of Americans -- would remain in place for the time being...

[Demeter]

41. Banks Forsaking Record Low Yields in Pimco's `New Normal': Credit Markets

http://www.bloomberg.com/news/2010-09-23/banks-forsaking-record-low-yields-in-pimco-s-new-normal-credit-markets.html

Banks are sitting out the busiest September for corporate bond sales in a sign they may refrain from lending while the Federal Reserve considers how to jolt the economic recovery.

Microsoft Corp., Hewlett-Packard Co. and Ford Motor Co. led $124.3 billion of U.S. issuance this month, on pace to beat the high of $125.1 billion in September 2009, according to data compiled by Bloomberg. Sales by banks and financial companies account for 16 percent of the total, the lowest proportion since April and down from 30 percent a year ago.

While industrial companies take advantage of record-low yields, banks continue to retrench in a sluggish economy that Pacific Investment Management Co. calls “the new normal.” Rather than making loans, lenders are plowing cash into government securities and letting their balance sheets shrink.

“Banks have raised deposits, they’ve got lots of cash and loans have fallen,” said Jeffrey Meli, co-head of U.S. credit strategy at Barclays Capital in New York. “They have less need for the money and are happy to be negative net issuers.”

[Demeter]

50. BofA's unfunny foreclosure tricks

http://finance.fortune.cnn.com/2010/09/23/bofas-unfunny-foreclosure-tricks/

MORE OUTRAGE

[Demeter]

51. Global food risk from China-Russia pincer

http://www.telegraph.co.uk/finance/china-business/8019004/Global-food-risk-from-China-Russia-pincer.html

The Moscow bank Uralsib said half of Russia's potato crop has been lost and the country's wheat crisis will drag on for a second year, forcing the Kremlin to draw on world stocks.

Wheat prices have risen 70pc since June to $7.30 a bushel as the worst heatwave for half a century ravages crops across the Black Sea region, an area that supplies a quarter of global wheat exports. This has caused knock-on effects through the whole nexus of grains and other foods...

The UN fears a repeat of the price spike in 2008 that set off global food riots. Wheat prices are still far below the $13 peak they reached then, and the global stocks to use ratio is still "safe" at 22pc. However, the outlook is darkening...Luke Chandler at Rabobank said the drought has gone on long enough to hit winter wheat planting and damage yields for next year's spring wheat. "At this stage there is no substantial recovery in subsoil moisture levels in Russia," he said.

Ominously, a corn crunch is also creeping up on the world. Global stocks are at their lowest level for 37 years, at a stock to use ratio of 13pc. "This is getting extremely tight," said Mr Chandler, questioning whether the US should divert 36pc of its corn crop into ethanol for fuel...

[Demeter]

52. AND THE LARGER PICTURE

There is a widely-held view that roaring "agflation" and record gold prices signal inflation, evidence that ultra-loose monetary policy in the US and Europe is leaking excess liquidity into the world. Japan is the latest country to boost liquidity, launching "unsterilised" yen sales.

However, this year's spike is narrower. Crude oil is at $75 a barrel, half the 2008 peak. The CRB commodity index is back to 2004 levels. Natural gas prices have fallen this year. Copper has surged, but other base metals have lagged. While gold is in vogue, this is partly due to diversification out of euros and dollars by Asian governments, and loss of faith in Western leadership.

Central banks must make a tricky judgement call, deciding whether food shortages are inflationary or deflationary. They can be either. Policy makers in the US and Europe misread the commodity spike of 2008 as the start of a 1970s inflation spiral, when in reality it sapped broader demand. Central banks tightened policy, just as their economies were buckling. The financial system crashed two months later. Inflation collapsed in short order.

The US Federal Reserve does not want to repeat that mistake. Its minutes this week warned of "downside risks" to inflation. The message is clear: the Fed plans to steel its nerves this time and "look through" any spike in resource costs.

[Demeter]

62. 5 Outright Illegal Scams That Should Put Wall St. Bankers Behind Bars

http://www.alternet.org/economy/148181/5_outright_illegal_scams_that_should_put_wall_st._bankers_behind_bars/

1) Wachovia Launders $380 Billion in Drug Money...Outside the too-big-to-fail world, getting caught laundering billions of dollars in drug money doesn't just earn you hefty fines, it plants you in jail. And Wachovia wasn't alone. According to the U.N., laundering drug money was common during the darkest days of the financial crisis, as faltering banks sought to get their hands on any money they could find -- regardless of where it came from.

2) Chamber of Commerce Launders AIG's Lobbying Cash.... A watchdog group has filed a complaint with the Internal Revenue Service accusing the Chamber and notorious AIG kingpin Maurice "Hank" Greenberg of tax fraud...abusing a charity in order to hide millions of dollars in lobbying expenditures by AIG.

In 2003, a foundation handled by Greenberg gave $5 million to the charitable wing of the Chamber of Commerce. The Chamber operates a charity called the National Chamber Foundation. The next year, Greenberg's foundation gave another $10 million to the Chamber's charity. In 2003 and 2004, 80 percent of the National Chamber Foundation's budget was coming from Greenberg and AIG. The charity's main function was to serve as a front for AIG lobbying...According to U.S. Chamber Watch, that money was turned over to the Chamber's lobbying arm. At the time, the Chamber was raising tons of money to help reelect President George W. Bush, and AIG was trying to weaken accounting fraud laws. It's illegal for a tax-exempt charity to funnel money to political operations. If the allegations are true, the Chamber's charity would be shut down.

3) The $40 Billion Subprime Lie From Citibank and Robert RubinAs the subprime mortgage market was falling apart in 2007, Citibank was trying to calm investor fears about a total meltdown -- just like every other big Wall Street bank. Its chief tactic was to highlight that it had "only" $13 billion in subprime mortgage holdings, repeatedly touting the figure publicly...The statement was true, if you ignored another $40 billion in subprime exposure that the firm held. Lying to shareholders is a major no-no in Corporate America -- it's considered securities fraud, and people can go to jail for it. The SEC is attempting to settle with Citi, but isn't recommending criminal prosecutions or even charging individuals with formal wrongdoing.

4) Merrill Lynch: Inventing Fake Demand For Subprime Junk During the boom years of the housing bubble, Merrill Lynch was top producer of fancy financial products called "Collateralized Debt Obligations," or CDOs....lack of demand was no problem for Merrill. When it couldn't offload the tranche from one of these garbage CDOs, it just created a new CDO, and used the new security to buy up the unwanted junk from the old one. The result was a catastrophic daisy chain, in which Merrill was able to keep producing new CDOs by inventing fake demand -- all while subjecting itself to dangerous levels of risk. By 2007, a full 42 of the bank's 92 CDOs included pieces of other CDOs it had previously sold -- 46 percent.

5) Wells Fargo Overdraft Theft A judge in California has now said that this practice violated state law, and has ordered Wells Fargo bank to return hundreds of millions of dollars in such ill-gotten gains to its California customers. But Wells Fargo wasn't alone -- every major U.S. bank had overdraft programs that worked the same way Wells Fargo's did.

[Demeter]

64. Major insurers to drop child policies ahead of coverage mandate

http://www.rawstory.com/rs/2010/09/major-insurers-drop-child-policies-coverage-mandate/

Just days away from the implementation of new rules that will prevent insurers from denying coverage to children with pre-existing conditions, numerous major insurers have opted to end the sale of child-only policies.

Anthem Blue Cross and associate WellPoint, Aetna Inc., Cigna Inc., CoventryOne and others have been making under-the-radar announcements about their child health offerings in recent days, drawing sharp criticism from Democrats and progressive activists who championed the president's health care reform agenda.

Insurers say the government's mandate to extend coverage to children with pre-existing conditions could endanger their obligations to other policy holders -- essentially blaming the Obama administration for their actions.


I'VE READ THE WHOLE ARTICLE THROUGH TWICE, AND IT STILL DOESN'T MAKE ANY SENSE. IF WE HAD UNIVERSAL SINGLE PAYER, THE ENTIRE ISSUE, AS WELL AS ANY OTHER ISSUE WITH INSURANCE EXCLUSIONARY POLICIES, WOULD SIMPLY GO AWAY FOREVER...

[Demeter]

66. Tell Larry Summers, Don’t Delay! By Mary Bottari

http://www.informationclearinghouse.info/article26428.htm

...While some may consider this a panicky attempt to hightail it out the door before he is blamed for significant Democratic losses this election cycle, I see it in a more positive light. Just think of the reception he will receive when he returns to Wall Street!


On Wall Street, Summers will be greeted like a conquering hero. Never have so many financiers been made so rich because of the actions of one man. Plus, he can go back to that genius Wall Street salary. When he worked for one world’s largest hedge funds, D.E. Shaw, he worked one day a week and earned $5.2 million before being picked by Obama to head the National Economic Council. Ka-ching! There will be plenty of time for him to teach a class Harvard (although you can be sure they won't let him anywhere near that endowment again.)


A LIST OF LARRY'S "ACCOMPLISHMENTS" (CRIMES, FOR OTHER PEOPLE) FOLLOWS

[Demeter]

80. FLASH FROM THE PAST (LAST SEPT) The Bailout Bill Comes Due, Vexing Agencies

http://www.nytimes.com/2009/09/19/business/economy/19bailout.html?_r=1&ref=business



A year ago, as the financial system was threatening to collapse, federal regulators offered all sorts of assistance to ward off catastrophe. The strategy worked, at least so far, but the bill is starting to come due.

The Federal Housing Administration, which is supporting the housing market by insuring loans for millions of struggling buyers, said Friday that its cash reserves had fallen below 2 percent for the first time. Raising its insurance premiums would replenish the reserves, but could also hamper the housing recovery. Another unpleasant option: asking for a federal bailout.

The Federal Deposit Insurance Corporation, meanwhile, is running out of money to pay back the depositors of failed banks. Its chairwoman said Friday the agency might for the first time decide to borrow from the Treasury.
............................

During the housing boom, borrowers spurned the F.H.A. because it required them to fill out a few forms and come up with a down payment of 3 percent. Subprime lenders, by contrast, asked for neither money nor documentation. The F.H.A. became a wallflower, its share of the market dwindling nearly to nothing. Now the subprime lenders are gone, and traditional banks are so reluctant to issue mortgages they demand large down payments. But the F.H.A., which works with thousands of lenders to guarantee repayment of mortgages loans, only requires a down payment of 3.5 percent...The agency’s share of the loan market has risen rapidly, to more than 20 percent. Some of those borrowers are losing their jobs and, as a result, their houses. The default rate on F.H.A. loans is rising. About 14.4 percent of the agency’s loans in the second quarter were at least one payment past due but short of foreclosure. That is twice the delinquency rate for top-quality or prime loans, at 6.4 percent. The F.H.A. has become the government equivalent of Countrywide Financial, the hyper-aggressive private lender that crashed two years ago...

F.H.A. officials said Friday that rumors swirling around its reserve fund were untrue. “There will be no taxpayer bailout, there will be no special appropriations, no legislation, no action requesting any additional funds whatsoever,” said David H. Stevens, the F.H.A.’s commissioner, in a conference call with reporters.

[Demeter]

103. THE DECADE IN ONE PAGE Eugene Linden

http://www.eugenelinden.com/news3543.html

[Po_d Mainiac]

86. Shame about toxie :sad:

Toxie, Planet Money's pet toxic asset, died this week. She was killed by one of the worst housing busts in U.S. history.

Toxic assets — bundles of mortgages that Wall Street sliced up and sold to investors — were at the center of the financial crisis. When the housing market tanked, no one wanted to own them. That's when we bought one.

When we bought Toxie , in January of this year, she seemed like a great deal. We paid $1,000. That was 99 percent less than she cost dring the housing boom.

Every month, when homeowners paid their mortgages, we got a check. We thought we'd make back our investment before she died. But in the end, we collected only $449.

http://www.npr.org/blogs/money/2010/09/23/130079590/toxie-s-dead

[Demeter]

89. Glad You Showed Up, Po! I've Been Saving This Just For You!

Maine Coon Cat


So, somebody got suckered into buying toxic waste? Tsk, tsk. Did they think the banks were going through such gyrations for their health?

[Po_d Mainiac]

94. The Maine State Pussy

Neighbors have one..had to get a real cat from the pound to deal with the mice and red squirrels that overran their place.
:hi:

[Demeter]

90. IN SIMILAR VEIN FROM 2009: Bank of America: 40% of Junk Bonds to Default by 2013

http://www.nakedcapitalism.com/2009/09/bank-of-america-40-of-junk-bonds-to-default-by-2013.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

During the tense months of the crisis, every so often there would be a story on the looming threat of mounting corporate debt defaults. With more than half the corporate bonds rated junk, thanks to highly-levered takeovers, it wasn’t hard to imagine that a protracted economic bad spell could lead to a lot of defaults.

A related issue that has not gotten the press it deserves is that the novel feature of the binge of late-cycle merger loans, “cov lite” deals, will make the damage worse. Normally. companies that borrow heavily have to agree to meet certain requirements (covenants) like maintaining a minimum net worth. If the debtor breaches those stipulation, the lender can accelerate the debt, meaning demand it be repaid immediately. That does not necessarily happen, but the acceleration clause allows the creditor to renegotiate the obligation in light of the borrower’s deteriorating financial condition, and that can include tough measures like asset sales or a restructuring, or forcing the company into Chapter 11.

What happens in the new world of cov-lite? Well, the company goes to hell and the borrowers can’t do much to intervene. The result is if the company continues to decay, it will wind up in bankruptcy, but later and therefore in a weaker state than if the creditors had forced it into bankruptcy sooner. That means the odds of a successful structuring are lower, and more companies will wind up liquidating. Thus not only will defaults reach new post-war highs, but recoveries are likely to be lowere.

From Reuters (hat tip reader John D)http://www.reuters.com/article/idUSTRE58G6I720090917 :

About 40 percent of all U.S. junk bonds outstanding in late 2008 will likely default by 2013….By contrast, the cumulative five-year default rate was about 30 percent in the last two default cycles…

The worst recession since the 1930s has already pushed defaults to double-digit rates. According to Standard & Poor’s, the default rate rose to 10.4 percent in August from less than 1 percent in 2007 as the recession and credit crunch left companies unable to pay off debt.

Deleveraging by consumers and financial institutions and fiscal problems at federal and state governments will slow the economic recovery, keeping defaults high, Bank of America said. Failure of the “shadow banking system” to reinvent itself will also contribute to high defaults, it said, referring to hedge funds and other non-bank institutions that fueled the last credit boom.

Defaults will also be triggered by hundreds of billions of dollars of debt coming due, especially in 2013 and 2014, Bank of America said. About $361 billion of high-yield loans come due in those two years alone, or 72 percent of the total outstanding, the bank estimated in an earlier report.

Bank of America in December had forecast that the junk bond default rate could peak at 17 percent in the second quarter of 2010, the worst since the Great Depression. Thanks to numerous government lifelines, including near-zero interest rates, it now expects the default rate to peak at 12.8 percent in the fourth quarter this year.

However, defaults will remain higher than normal and peak again at 8.5 percent in late 2012, the bank estimated. Even by 2013, the default rate will still be around 6 percent, much higher than the sub-4-percent levels usually seen at the end of a default cycle, Bank of America said…..

Many so-called distressed debt exchanges are only postponing defaults and will also contribute to the second wave, the bank said. In a distressed debt exchange, companies buy back debt at steep discounts, usually replacing it with longer-maturity debt. About 40 percent of distressed debt exchanges typically default anyway within three years, the bank said.

[Po_d Mainiac]

93. Da fuckers knew

New Proof Wall Street Knew Its Mortgage Securities Were Subpar: Clayton Execs Testify

During a little-noticed hearing this week in Sacramento, Calif., a firm hired by Wall Street to analyze mortgages given to borrowers with poor credit, which were then packaged and sold to investors during the boom years, revealed that as much as 28 percent of those loans failed to meet basic underwriting standards -- and Wall Street knew all along.

Worse, when the firm flagged those loans for potential issues, Wall Street banks ignored its recommendation nearly half the time and likely purchased those loans anyway -- selling them to unwitting investors who were never told that the biggest home loan due diligence firm in the country had found potential defects in these mortgages.

The revelations give a better picture of what many have likely known for years: Wall Street firms knew they were buying lead yet passed it off as gold to investors who had no knowledge of the alchemy behind the scenes. But it also has real-world implications: the data released Thursday could bolster pension funds and other investors in their pursuit to force Wall Street banks to take back the bogus mortgages they peddled. An untold number of lawsuits have been filed in the wake of the subprime mortgage crisis and subsequent housing market collapse. Thus far, Wall Street has been winning that battle.

Clayton Holdings, a Connecticut-based firm that analyzes home mortgages for banks, hedge funds, insurance companies and government agencies, provided its data Thursday to the Financial Crisis Inquiry Commission, a bipartisan panel created by Congress to investigate the roots of the worst financial crisis since the Great Depression. The FCIC held its last public hearing in Sacramento, the home of the panel's chairman, where two current and former top Clayton executives testified under oath about the firm's role in the mortgage securitization chain.

http://www.huffingtonpost.com/2010/09/25/wall-street-subprime-crisis_n_739294.html

[Demeter]

95. Let Justice Prevail

and not the (In)Justice Dept.

[Demeter]

12. FUNNY CATS

AND GARFIELD, BILL THE CAT, AND TOO MANY MORE TO MENTION

[Demeter]

13. DILBERT

[Demeter]

14. MARK FIORE

http://www.markfiore.com/political-cartoons/watch-midterm-election-democrats-republicans-tea-party-tea-bag-carly-meg-whitman-animation-mark-fiore

TIES IN WITH THE FOLLOWING ARTICLES:

[Demeter]

15. Republicans Cry “Class Warfare” When They’re Winning the War

http://progressive.org/wx092010.html

Whenever Republicans are at risk of not getting their way for their millionaire constituents, they cry “class warfare.”

So it was that House Minority Whip Eric Cantor just whipped out the old accusation again in the Wall Street Journal, blaming the Democrats and “the progressive left” for “provocative class warfare rhetoric.”

What Cantor doesn’t like is the rhetoric.

But he’s content with the class warfare, because his class keeps winning, battle after battle, war after war....

[Demeter]

16. The Democratic surrender on tax cuts

http://www.salon.com/technology/how_the_world_works/index.html?story=/tech/htww/2010/09/23/the_democratic_surrender_on_tax_cuts&source=newsletter&utm_source=contactology&utm_medium=email&utm_campaign=Salon_Daily%2520Newsletter%2520%2528Not%2520Premium%2529_7_30_110

What is there left to say about the spinelessness of congressional Democrats? A consensus appears to be emerging from Washington that both the Senate and the House are bailing on their plans to hold a vote before the election that would force Republicans to put up or shut up on their pledge to keep tax cuts for the wealthy in place.

One Senate aide told TalkingPointsMemo that the decision to postpone dealing with the fact that all the Bush tax cuts will expire at the end of the year was no big deal -- it was a victory!

The aide said it's already a winning message without a vote since Obama and Democrats have framed the debate as the Republicans being for the rich and Democrats wanting to help the middle class. Others have made similar arguments, but several lawmakers have said they think a vote is the only way to score a political victory. The senior aide doesn't think so. "We have a winning message now, why muddy it up with a failed vote, because, of course, Republicans are going to block everything," the aide said.

The aide is wrong. What the Democrats have succeeded in doing is proving that they don't have the courage of their convictions and that they can be pushed around by the minority party with ease. It would have been much better never to have even raised the possibility of holding a vote to extend just the middle-class tax cuts, than to promise to do so, and buckle after a few mean looks from Mitch McConnell and John Boehner. After the election, a Republican push to keep all the Bush tax cuts in place will be much harder to resist. It's a complete policy failure.

[Demeter]

17. Downhill With the G.O.P. By PAUL KRUGMAN

http://www.nytimes.com/2010/09/24/opinion/24krugman.html?_r=1&th=&adxnnl=1&emc=th&adxnnlx=1285329669-DOdiPfGhi1wkkNxPbNrEOg

Once upon a time, a Latin American political party promised to help motorists save money on gasoline. How? By building highways that ran only downhill.

I’ve always liked that story, but the truth is that the party received hardly any votes. And that means that the joke is really on us. For these days one of America’s two great political parties routinely makes equally nonsensical promises. Never mind the war on terror, the party’s main concern seems to be the war on arithmetic. And this party has a better than even chance of retaking at least one house of Congress this November.

Banana republic, here we come.

On Thursday, House Republicans released their “Pledge to America,” supposedly outlining their policy agenda. In essence, what they say is, “Deficits are a terrible thing. Let’s make them much bigger.” The document repeatedly condemns federal debt — 16 times, by my count. But the main substantive policy proposal is to make the Bush tax cuts permanent, which independent estimates say would add about $3.7 trillion to the debt over the next decade — about $700 billion more than the Obama administration’s tax proposals.

True, the document talks about the need to cut spending. But as far as I can see, there’s only one specific cut proposed — canceling the rest of the Troubled Asset Relief Program, which Republicans claim (implausibly) would save $16 billion. That’s less than half of 1 percent of the budget cost of those tax cuts. As for the rest, everything must be cut, in ways not specified — “except for common-sense exceptions for seniors, veterans, and our troops.” In other words, Social Security, Medicare and the defense budget are off-limits.

[Demeter]

18. FUNDIE SPAMMAIL FROM MY AUNT

What the sneaky Left has really been doing to America

Astonishing story of how socialists have taken control of the greatest nation on earth

Sometime during the last half-century, America – the most magnificent and prosperous nation in the world – was stolen, according to June's special issue of Whistleblower magazine.

"Just 50 years ago, in the 1950s, America was a great place," writes author William Lind in the issue, titled "STEALTH ATTACK." "It was safe. It was decent. Children got good educations in the public schools. Even blue-collar fathers brought home middle-class incomes, so moms could stay home with the kids. Television shows reflected sound, traditional values.

"Where did it all go? How did that America become the sleazy, decadent place we live in today – so different that those who grew up prior to the '60s feel like it's a foreign country? Did it just 'happen'?

"It didn't just 'happen,'" Lind explains. "In fact, a deliberate agenda was followed to steal our culture and leave a new and very different one in its place. The story of how and why is one of the most important parts of our nation's history – and it is a story almost no one knows. The people behind it wanted it that way." AND SO ON, AND SO FORTH

NO LINK AVAILABLE--THE CURIOUS CAN GOOGLE, PERHAPS

[Demeter]

22. CATS THE MUSICAL

Cats is a musical composed by Andrew Lloyd Webber based on Old Possum's Book of Practical Cats by T. S. Eliot. It introduced the song standard "Memory".

It is currently the 2nd longest-running show in Broadway history and the 4th longest-running show in musical theatre history.

The musical first opened in the West End in 1981 and then on Broadway in 1982. Each time directed by Trevor Nunn and choreographed by Gillian Lynne, it won numerous awards, including both the Laurence Olivier Award and the Tony Award for Best Musical. The London production ran for twenty one years and the Broadway production ran for eighteen years, both setting long-run records. Actresses Elaine Paige and Betty Buckley became particularly associated with the musical. One actress, Marlene Danielle, performed in the Broadway production for its entire run (from 1982 until 2000).

Cats has been performed around the world many times and has been translated into more than 20 languages. In 1998 it was also made into a television video.

YOUTUBE HAS IT IN 22 PARTS, STARTING HERE:

http://www.youtube.com/watch?v=d56lTDX41gA&feature=related

[Demeter]

97. ARE YOU UNEMPLOYED? Comedy Video Game Show

http://globaleconomicanalysis.blogspot.com/2009/12/are-you-unemployed.html

[Demeter]

99. IRS Tells Single Mom She's Too Poor, Must Be Lying

tax cat does not approve

http://consumerist.com/2009/12/irs-tells-single-mom-shes-too-poor-must-be-lying.html

By Laura Northrup on December 6, 2009

A single mom in Seattle thought she was playing by the rules. She earned under $19,000 per year as a hairdresser, supported her two children, and shared a home with her parents. Then the IRS audited her, claiming that she simply didn't earn enough money to be able to live in Seattle, and must be hiding something. Two years and $10,000 in accountant bills later, the IRS has determined that she isn't trying to run a scam, but can't figure out who her children are dependents of.

At the root of the IRS's issue is the family's inter-generational living arrangement. To a rational person, this is a good way to get by when you're experiencing hard times. To the IRS, this raises red flags as to who really supports the children:

In the end, the parents were cleared. The IRS also backed off trying to reclaim Rachel's earned income tax credit.

But the agency insisted Rachel couldn't prove she was supporting her children — she didn't have enough receipts — so she had to stop claiming them as dependents. A few weeks ago she paid back $1,438 (plus penalties and interest!) on that issue.

...

Legally, Rachel's kids now are in tax limbo. I met them at the Porcaros' house and they seemed real enough, jostling and pleading to play video games. But as far as the IRS is concerned, they don't exist. Neither Rachel nor her parents can claim them as dependents.

"I tell you, we don't buy a roll of toilet paper anymore without keeping the receipt," Rob said.

Nicely done, IRS, for taking something rather straightforward--making sure a low-income person receiving the Earned Income Credit is entitled to it--and turning it into a bureaucratic nightmare for a whole extended family.

http://seattletimes.nwsource.com/html/dannywestneat/2010435946_danny06.html

[Demeter]

19. SPHYNX CATS

Colors: All.

Grooming: Sphynx require regular bathing to prevent oil build-up on the skin and producing a sticky film. Ears produce heavy amounts of waxy buildup that collects dust and dirt, as does the area around the nails. Both require frequent cleaning.




The Sphynx is known as the hairless cat; however, it does have an almost invisible fur. The coat of the Sphynx is sparse and does not have layers. The cat's skin is clearly visible on the muzzle, ears, paws and tail. They are highly sensitive to cold and abrupt changes in temperature. The Sphynx's skin comes in every color that a cat can be. Their temperament remains as fun-loving as their kittenhood antics.

[Demeter]

20. Arming the Saudis

http://www.truth-out.org/arming-saudis63570

The Pentagon has announced a $60 billion arms package to the repressive family dictatorship in Saudi Arabia, the largest arms sale of its kind in history. Rejecting the broad consensus of arms control advocates that the Middle East is too militarized already and that the Saudis already possess military capabilities well in excess of their legitimate security needs, the Obama administration is effectively insisting that this volatile region does not yet have enough armaments and that the United States must send even more.

According to reports, Washington is planning to sell 84 new F-15 fighters and three types of helicopters: 72 Black Hawks, 70 Apaches and 36 Little Birds. There are also reports of naval missile-defense upgrades in the works.

Though supporters of such arms sales argue that if the United States did not sell weapons to the oil-rich kingdom, someone else would, neither the Obama administration nor its predecessors have ever expressed interest in pursuing any kind of arms control agreement with other arms-exporting countries. A number of other arms exporters, such as Germany, are now expressing their opposition to further arms transfers to the region due to the risks of exacerbating tensions and promoting a regional arms race.

The United States is by far the largest arms exporter in the world, surpassing Russia - the second-largest arms exporter - by nearly two to one.

[Demeter]

23. TECHNOCATS

http://www.youtube.com/watch?v=Tpgh9djAQ5I

[Demeter]

24. Malicious computer worm launched at industrial targets

A piece of highly sophisticated malicious software that has infected an unknown number of power plants, pipelines and factories over the past year is the first program designed to cause serious damage in the physical world, security experts are warning

Read more >>
http://link.ft.com/r/8P1R88/ZBKGC3/T10SH/FXL7NU/BMEH43/HK/t?a1=2010&a2=9&a3=24

[Demeter]

27. Facebook founder’s wealth rises 245%

Mark Zuckerberg becomes America’s 35th richest person, as Bill Gates retains top slot for the 17th year in succession in Forbes magazine’s annual ranking of America’s wealthiest people

Read more >>
http://link.ft.com/r/8P1R88/ZBKGC3/T10SH/FXL7NU/8AD17J/HK/t?a1=2010&a2=9&a3=24

[Demeter]

30. Hyundai E&C set for bidding war

Creditors are putting a $2.6bn controlling stake in Hyundai Engineering & Construction up for sale, reigniting a feud in the founding family of the splintered conglomerate

Read more >>
http://link.ft.com/r/VKY5JJ/3OECZI/A5Q0X/3OEH5G/RNGW16/7V/t?a1=2010&a2=9&a3=24

[Demeter]

37. GM must sell for $134 a share for U.S. to recover investment

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/22/AR2010092205674.html

...The price needed for a full recovery of the U.S. investment is far higher than shares of the automaker have ever reached, and some analysts and government officials have expressed doubts that the United States will be able to recover the money....

[hamerfan]

44. As of 09/25/10

Shares of MTLQQ were at $0.36. Don't hold yer breath.

[Lucky Luciano]

85. MTLQQ is not the concern - GM will have an IPO next quarter.

The MTLQQ is a zero.

[Demeter]

25. EURO CATS

The European Burmese comes in 10 different colors. It is medium in size with expressive eyes. European Burmese cats are intelligent, affectionate and loyal, and love to live with other animals.

Color: Brown, chocolate, blue, lilac, red, cream, brown-tortie, chocolate-tortie, blue-tortie and lilac-tortie

Coat: Short, fine, close-lying, glossy and satin-like

Grooming: Occasional brushing, bathing if necessary

Best Home: Ideally, European Burmese like to live with other animals. However, they can also live happily as the only pet in the house.

National Breed Club: European Burmese Breed Council

Personality: Highly intelligent, affectionate and people-oriented

Appearance: Elegant cat of moderate type with gently rounded contours

[Demeter]

26. Eurozone crackdown on public finances

Members of the eurozone would be forced to pay punitive fines if they did not keep their public finances under control, according to proposals amounting to the most sweeping changes in the European Union’s economic governance since the introduction of the single currency

Read more >>
http://link.ft.com/r/8P1R88/ZBKGC3/T10SH/FXL7NU/ZBA98A/HK/t?a1=2010&a2=9&a3=24

[Demeter]

34. Bank of England ponders fresh stimulus measures

http://www.guardian.co.uk/business/2010/sep/22/bank-of-england-stimulus-measures

The pound slumped and the interest rate on UK government gilts saw their biggest drop in more than 18 months today after the Bank of England signalled that further action might be needed to boost the flagging economy.

Speculation that Threadneedle Street would embark on a fresh round of quantitative easing – boosting the supply of money by buying gilts from banks – sent sterling to its lowest level against the euro in four months and a two-month low when measured against a basket of leading currencies. Meanwhile gold hit a record high for a fifth straight day after the US Federal Reserve said on Tuesday night that it was prepared to print billions of dollars to prevent the world's biggest economy sliding into deflation...

[Demeter]

28. SOUTH OF THE BORDER CATS

[Demeter]

29. Petrobras gears up for record share issue

The biggest share issue in corporate history will be priced on Thursday evening as Brazil’s national oil company attempts to raise up to R$134bn

Read more >>
http://link.ft.com/r/VKY5JJ/3OECZI/A5Q0X/3OEH5G/26MRVM/7V/t?a1=2010&a2=9&a3=24

[Demeter]

42. WE'LL PICK IT UP IN THE MORNING

good night all! Sleep like kittens! Don't for get to get your claws into this material...

[alterfurz]

45. let's not forget Felis catus corporata

[Demeter]

47. I was wondering where those came from....

the photos, I mean

[Dr.Phool]

46. Is this the Catfood Commission?

Can I eat the cat?

[Demeter]

48. Awww!

Gee, Sara is getting big!

[Dr.Phool]

56. She's a national celebrity now.

Tarpon Springs Chamber of Commerce put out their 2011 Visitors and Relocation guide yesterday. One of their features was the dog park. And there's her picture, running around with the other dogs.

They mail it to all interested people around the country.

She's 13 mo. old now. About 6 more months, and we'll get her a little brother.

[Demeter]

55. Media Buries Reports on Financial Crime By Danny Schechter

http://www.informationclearinghouse.info/article26435.htm

WITHER AMERICA? OR WHITHER?

[Demeter]

60. HOUSE CATS

The Evolution of House Cats

http://www.scientificamerican.com/article.cfm?id=the-taming-of-the-cat

Genetic and archaeological findings hint that wildcats became house cats earlier--and in a different place--than previously thought...


A third of American households have feline members, and more than 600 million cats live among humans worldwide.

... recent genetic and archaeological discoveries indicate that cat domestication began in the Fertile Crescent, perhaps around 10,000 years ago, when agriculture was getting under way. The findings suggest that cats started making themselves at home around people to take advantage of the mice and food scraps found in their settlements.

[Demeter]

61. Ally Financial legal issue with foreclosures may affect other mortgage companies

http://www.washingtonpost.com/wp-dyn/content/article/2010/09/21/AR2010092105872.html

...The legal predicament compelled Ally Financial, the nation's fourth-largest home lender, to halt evictions of homeowners in 23 states this week. Now it appears hundreds of other companies, including mortgage giants Fannie Mae and Freddie Mac, may also be affected because they use Ally to service their loans...

[DemReadingDU]

67. uh oh

I would bet that there are so many shenanigans going on trying to hide all these toxic mortgages, that something can't be hidden any longer and will trigger the dam bursting. Although with the elections in November, Obama will attempt to plug the holes. I fear the meltdown is looming soon.

[Demeter]

68. No Happy Ending, for Sure

The US is facing its own Kobyashi Maru--unfortunately, there's no James T. Kirk to pull the fat out of the fire.

You remember the Admiral? "I don't believe in the 'no-win' scenario" Kirk?

Well, Wall Street doesn't either, but their only way to win is to lie, cheat and steal. Just how much can they get away with? They've walked off with everything they can.

[DemReadingDU]

69. And that rally Friday

With all the negative news, that rally was probably the last hurrah for the gamblers to take their profits, prior to the meltdown.


I am not a fan of Star Trek, had to look up Kobayashi Maru

The Kobayashi Maru is a test in the fictional universe of Star Trek. It is a Starfleet training exercise designed to test the character of cadets in the command track at Starfleet Academy. The Kobayashi Maru test was first depicted in the opening scene of the film Star Trek II: The Wrath of Khan and also appears in the 2009 film Star Trek. The test's name is occasionally used among Star Trek fans or those familiar with the series to describe a no-win scenario.

lots more...
http://en.wikipedia.org/wiki/Kobayashi_Maru

[Demeter]

83. Strategic Default Data Suggests Foreclosure Prevention Tactics Useless

FROM LAST YEAR--

http://globaleconomicanalysis.blogspot.com/2009/09/strategic-default-data-suggests.html

An interesting report in the Los Angeles Times shows that a person with super-prime credit scores is more likely to walk away from an underwater mortgage than a person with a subprime credit rating.

Inquiring minds are reading Homeowners who 'strategically default' on loans a growing problem:

http://www.latimes.com/classified/realestate/news/la-fi-harney20-2009sep20,0,2560658.story

Who is more likely to walk away from a house and a mortgage -- a person with super-prime credit scores or someone with lower scores?

Research using a massive sample of 24 million individual credit files has found that homeowners with high scores when they apply for a loan are 50% more likely to "strategically default" -- abruptly and intentionally pull the plug and abandon the mortgage -- compared with lower-scoring borrowers.

Among researchers' findings are these eye-openers:

* The number of strategic defaults is far beyond most industry estimates -- 588,000 nationwide during 2008, more than double the total in 2007. They represented 18% of all serious delinquencies that extended for more than 60 days in last year's fourth quarter.

* Strategic defaulters often go straight from perfect payment histories to no mortgage payments at all. This is in stark contrast with most financially distressed borrowers, who try to keep paying on their mortgage even after they've fallen behind on other accounts.

* Strategic defaults are heavily concentrated in negative-equity markets where home values zoomed during the boom and have cratered since 2006. In California last year, the number of strategic defaults was 68 times higher than it was in 2005. In Florida it was 46 times higher. In most other parts of the country, defaults were about nine times higher in 2008 than in 2005.

* Homeowners with large mortgage balances generally are more likely to pull the plug than those with lower balances.

* People who default strategically and lose their houses appear to understand the consequences of what they're doing.

[Po_d Mainiac]

98. The housing surplus ...in visual

[Demeter]

71. TOP CATS

http://www.youtube.com/watch?v=ykRZbOb1c5c

[Demeter]

72. The Problem with “Policy Measures” and “Quantitative Easing” By Eric Fry

http://dailyreckoning.com/the-problem-with-policy-measures-and-quantitative-easing/

The Federal Open Market Committee (FOMC) is worried. Very worried. It is worried that it is not destroying the dollar fast enough.

“Measures of underlying inflation are currently at levels somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability,” the FOMC declared Tuesday. “Inflation is likely to remain subdued for some time before rising to levels the Committee considers consistent with its mandate.” In other words, as every Ivy-League-educated economist understands very well, the Fed must nourish inflation if it is to have any hope of reviving the economy.

Possessing merely a bachelor’s degree from UCLA, your California editor naively maintains his low-brow economic ideas. He still suspects – poor, brutish lad – that debasing the currency is an ill-advised means toward a dubious end. Rather than debasing the dollar to repel the natural forces of creative destruction, as Chairman Bernanke and his colleagues advocate, your editor suspects that the best means toward sustainable economic growth is to allow failing enterprises to fail, so that stronger enterprises may take their place. (And leave the poor greenback alone, please).

[Demeter]

76. How Well Has The Federal Reserve Performed for America? By George Washington of Washington’s Blog.

THIS OPINION IS EVEN MORE VALID, ONE YEAR AFTER IT APPEARED ON NAKED CAPITALISM


http://www.nakedcapitalism.com/2009/09/5324.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+NakedCapitalism+%28naked+capitalism%29

How well has the Federal Reserve performed for America? Mainstream pundits, of course, say that Bernanke has saved the world . . . . but they said the same thing about Greenspan. So let’s look at the actual historical record to determine how well the Fed has done.

Initially, Milton Friedman and Ben Bernanke have both said that the Federal Reserve caused (or at least failed to cure) the Great Depression through its poor monetary policy.

Many also blame the Fed for blowing an unsustainable bubble between 2001-2007 through artificially low interest rates. If this sounds too much like an Austrian economics perspective, that may be true. But remember that Hayek won the Nobel prize in 1974 partly for arguing that artificially low interest rates lead to the misallocation of capital and to bubbles, which in turn lead to busts.

Moreover, one of the Fed’s main justification has been that it can provide a “counter-cyclical” balance. In other words, during boom times it can put on the brakes (”take the punch bowl away right as the party gets started”), and during busts it can get things moving again. But as economist Jane D’Arista has shown, the Fed has failed miserably at that task:

http://www.washingtonsblog.com/2009/03/fed-has-failed-by-its-own-terms.html

Jane D’Arista, a reform-minded economist and retired professor with a deep conceptual understanding of money and credit devastating critique of the central bank. The Federal Reserve, she explains, has failed in its most essential function: to serve as the balance wheel that keeps economic cycles from going too far. It is supposed to be a moderating force in American capitalism on the upside and on the downside, the role popularly described as “leaning against the wind.” By applying its leverage on the available supply of credit, the Fed can slow down a boom that is dangerously overwrought or, likewise, stimulate the economy if it is sinking into recession. The Fed’s job, a former chairman once joked, is “to take away the punch bowl just when the party gets going.” Economists know this function as “counter-cyclical policy.”

The Fed not only lost control, D’Arista asserts, but its policy actions have unintentionally become “pro-cyclical”–encouraging financial excesses instead of countering the extremes. “The pattern that has developed over the last two decades,” she wrote in 2008, “suggests that relying on changes in interest rates as the primary tool of monetary policy can set off pro-cyclical foreign capital flows that tend to reverse the intended result of the action taken. As a result, monetary policy can no longer reliably perform its counter-cyclical function–its raison d’être–and its attempts to do so may exacerbate instability.”…

The Fed is also supposed to act as a regulator for banks and their affiliates, but failed miserably in that role as well.

Indeed, the central bankers’ central banker – BIS – has itself slammed the Fed:

http://www.washingtonsblog.com/2009/07/bis-slammed-federal-reserve-and-other.html

In a pointed attack on the US Federal Reserve, (BIS and its chief economist William White) said central banks would not find it easy to “clean up” once property bubbles have burst…

Nor does it exonerate the watchdogs. “How could such a huge shadow banking system emerge without provoking clear statements of official concern?”

“The fundamental cause of today’s emerging problems was excessive and imprudent credit growth over a long period. Policy interest rates in the advanced industrial countries have been unusually low,” said.

The Fed and fellow central banks instinctively cut rates lower with each cycle to avoid facing the pain. The effect has been to put off the day of reckoning…

“Should governments feel it necessary to take direct actions to alleviate debt burdens, it is crucial that they understand one thing beforehand. If asset prices are unrealistically high, they must fall. If savings rates are unrealistically low, they must rise. If debts cannot be serviced, they must be written off.

“To deny this through the use of gimmicks and palliatives will only make things worse in the end,” he said.

As PhD economist Steve Keen has pointed out, the Fed (along with Treasury) has also given money to the wrong people to kick-start the economy.

Remember also that Greenspan acted as one of the main supporters of derivatives (including credit default swaps) between the late 1990’s and the present.

Greenspan was also one of the main cheerleaders for subprime loans.

The above list is only partial. And it ignores:

(1) allegations that the Fed has manipulated the markets; and

(2) claims that the Federal Reserve System saddles the U.S. government and American people with trillions of dollars in unnecessary debt (that would not be incurred if the government took back the “power to coin money” granted to the government itself in the Constitution).

Even so, it shows that the Federal Reserve has performed very poorly indeed.

GO TO LINK FOR MORE REFERENCE LINKS..

[Demeter]

81. THE MINSKY MOMENT: Why capitalism fails

http://www.boston.com/bostonglobe/ideas/articles/2009/09/13/why_capitalism_fails/

THE MAN, THE THEORY, THE TIMES...MUST READ!

[Demeter]

82. EGG ON FACE ONE YEAR LATER: Jim Grant

http://www.financialarmageddon.com/2009/09/jim-grant-ringing-the-bell-at-the-top.html

In the following Wall Street Journal commentary, "From Bear to Bull," a long-time critic of the excesses and wayward policies that brought this country to its knees suggests the outlook for the economy is brighter than many people, especially the pessimists, believe:

James Grant argues the latest gloomy forecasts ignore an important lesson of history: The deeper the slump, the zippier the recovery.

As if they really knew, leading economists predict that recovery from our Great Recession will be plodding, gray and jobless. But they don't know, and can't. The future is unfathomable.

Not famously a glass half-full kind of fellow, I am about to propose that the recovery will be a bit of a barn burner....


WELL, MANY A BARN HAS BEEN BURNED IN THE PAST 12 MONTHS, FOR SURE!

[Demeter]

96. THE MAN WHO MIGHT ACTUALLY SAVE AMERICA

His name is Ron Bloom, union organizer, MBA, investment banker, and the first competent person Obama appointed to anything.

With Ron and Elizabeth Warren our slim hopes rest. Details:

From 2009: http://www.tnr.com/article/metro-policy/manufacturing-bloom

From 2010: http://www.nytimes.com/2010/09/10/business/economy/10manufacture.html

[Demeter]

100. THE CRISIS--WHERE ARE WE NOW? WHERE WERE WE THEN?

http://us1.institutionalriskanalytics.com/pub/IRAMain.asp

This week in The IRA we thought to go back to some of the comments we published during the early days of the crisis and update our readers on what has changed and what has not. Given the announcement today by the New York Times that economic guru Larry Summers is leaving the Obama Administration, but apparently Timothy Geithner is not, an inventory of the state of things seems in order.

In our most recent report in The IRA Advisory Service , "Deflation Update: Are We Closer to the End or the Beginning?" we update our view of the forward losses possible for the largest zombie banks. Why do we still refer to the ugly girls -- BAC, JPM and WFC in particular -- as zombies? Because the avalanche of foreclosures and claims against the too-big-too-fail banks has not even crested.

You will recall that when we released our Q2 2010 bank stress index (BSI) ratings for all U.S. banks, ROE and efficiency were the areas of stress that showed elevation, contrary to the view of the industry in the latest FDIC Quarterly Banking Profile. The point of course is not that one perspective is right or wrong. Instead these are two perspectives on the same data which each highlight different issues.

The increased BSI score for efficiency shows that the industry is under rising operational stress, a typical trend as a credit cycle matures. Banks are spending more money on servicing, for example, as well as funding repurchase of defaulted loans from other banks, Fannie Mae and Freddie Mac, and investors. Banks are also increasingly choking on the sheer size of the flow of foreclosed properties, as evidenced by the announcement by Ally Financial (Q1 2010 BSI Rating: "A+") to impose a moratorium on residential foreclosures. Think of the REIT as the new model for banking. The GSEs, Fannie and Freddie, are becoming the largest landowners in America.

MUCH MUCH MORE WITH LINKS--A MUST READ

[Demeter]

101. The S&L Crisis: A Chrono-Bibliography

http://www.fdic.gov/bank/historical/s&l/index.html

EVERYTHING YOU'LL EVER WANT TO KNOW ABOUT REAGAN'S MORNING IN AMERICA...

[Papa Boule]

74. Witness the power of this armed and fully operational battle station

http://www.lvrj.com/news/vdara-visitor---death-ray--scorched-hair-103777559.html

"The tall, sleek, curving Vdara Hotel at CityCenter on the Strip is a thing of beauty.

"But the south-facing tower is also a collector and bouncer of sun rays, which -- if you're at the hotel's swimming pool at the wrong time of day and season -- can singe your hair and melt your plastic drink cups and shopping bags."...

[Demeter]

75. What idiocy

Why didn't they do it intentionally, and make something useful of it?

Sometimes I think that anyone living in the Sunbelt has had their brains melted by it...no offense to our Southern brethren on this thread...

[Papa Boule]

77. "Why didn't they do it intentionally, and make something useful of it"

Like, um, a giant ant killer?

[Demeter]

79. Solar Hot Water Heater

[Papa Boule]

87. Actually that's a great idea!

And if giant ants do show up, they can still use it for that. ;)

[Demeter]

88. Not My Idea--Read About It in the 70's

Don't think the demonstration plant ever got off the ground, but there were designs....

[Demeter]

84. This is getting really depressing

or maybe it's just that I'm frustrated in real life.

But looking at stuff from a year ago, and realizing that nothing has changed, that the same old whistling-past-the-graveyard, sweep-it-under-the-carpet, combo lies and disinformation and BS is still going on, is doing nothing for my peace of mind or confidence.

Perhaps tomorrow will be a better day...goodnight, folks!

[Dr.Phool]

92. Bitter Tales from the Massive White Underclass in Joe Bageant's "Redneck" Memoir

This is good.


http://www.alternet.org/books/148237/bitter_tales_from_the_massive_white_underclass_in_joe_bageant%27s_%22redneck%22_memoir/

[Demeter]

104. It's a Wrap, Folks

I leave you to your memories of life before the cataclysm:

http://www.youtube.com/watch?v=_slQkHIdXp4

[DemReadingDU]

105. Thanks for the weekend postings

Just now catching up.