ABCs of USA's Export Machine - Hooking people on Autos, Booze, Cigarettes and Credit

An interesting article in the WSJ....New Indian Middle Class Gets Caught In the Whirlwind of Revolving Credit. According to this article, "...consumerism that has helped drive India's surging economy in recent years is showing its dark side, as overextended Indian credit-card holders get their first taste of delinquency and deep debt....the most visible stress is on the cardholders, and it's showing up in headlines, in call-center employees under crushing debt, even in a new Bollywood movie about middle-class people struggling with credit. Consumer credit, whether cards or car loans, is relatively new to India. Fifteen years ago, even home loans were hard to come by. As regulations on lending were relaxed and India's urban middle class swelled with 20-somethings hungry for the latest cellphone model, credit expanded to meet the need. Banks went too far, analysts say, issuing cards indiscriminately to people in rural areas and lower-income groups without regular salaries. The number of credit cards in India, while still only a fraction of the population, has more than tripled in the past five years, to almost 30 million. In the year ended March 31, Indians charged more than $14 billion on their cards, more than three times the amount charged four years earlier."

As recently as the year 2000 credit cards were very rare and only a few merchants, even in the major urban areas accepted it. During my visit at the time I could not find even one place that would take my credit card.
Fast forward to 2008. Credit defaults.
What a wonderful world.... Louis Armstrong

Being underwater and being unable to swim

An interesting article in the Tribune. "6 states account for almost 60 percent of homeowners with mortgages higher than homes' value. Here's a shocker: almost half of Nevada homeowners with a mortgage owe more to the bank than their homes are worth. Here's another: If you add in the homeowners like them in California, Arizona, Florida, Georgia and Michigan, together they account for nearly 60 percent of all homeowners who are "underwater" on their mortgages. Nationwide, almost one out of every five homeowners with a mortgage owes more to their lender than their properties are worth."

Another insightful story- Consumer Spending Slowed in September, Signaling Depth of Economy’s Troubles.

Some data:

Personal spending fell 0.3 percent last month, the biggest decline since June 2004.

Incomes rose 0.2 percent in September, just half of the August increase.

Wages and benefits paid to workers rose 0.7 percent in the third quarter.

Personal saving as a percentage of disposable personal income was 1.3% in September, up from 0.8% in August.

The spending report showed that an inflation gauge tied to spending edged up 0.1 percent in September, and posted a 0.2 percent rise excluding energy and food. Prices over the last 12 months are up by 4.2 percent.

Consumer confidence in October fell to 57.6, the biggest one-month drop in the survey's history, which dates to 1978.

Personal savings in countries like China exceed 30%. These are the countries that lend money to us so generously.
Quite a few of the CNBC "guests" and anchors have argued for years that the savings rate is not important it only accounts for savings as a % of income, and does not use the gains in asset values, like the increase in home values or in equities and the like.
Well, with the downdraft in the markets and 20% of mortgages under water, these bozos should come forward and explain why the savings rate is not important.

While Slick Exxon Pulls in the Dough, AMEX does Express checkout, and Motorola gets cut-off

Once upon a time....

Exxon Mobil, one of the companies that Sarah Palin took ON, reported that it made nearly $15 Billion in net income in 3Q 2008. It is a truly staggering number. To put it in perspective, Wal-Mart will make approx. $14 Billion in Profit FOR THE ENTIRE YEAR. Microsoft will make around $18 Billion in net income FOR THE ENTIRE YEAR.

Sliding backward on a slick patch, American Express, in a stark acknowledgment of the tough times ahead in the credit card industry, said Thursday that it plans to cut 7,000 jobs, or about 10 percent of its worldwide work force, in an effort to slash costs by $1.8 billion in 2009. (AP)

Motorola, continuing to be plagued by problems in its cell phone business, posted a $397M loss in 3rd-qtr, and said it would get rid of 3,000 jobs by April, with about 2,000 of them coming from the cell phone unit. The company last announced 2,600 job cuts in April.

These stories highlight the strengths and weaknesses dotting the landscape.

McPalin Highlight their Lack of Education - don't know that "Social" is first in 'Socialism"

McCain, # 894 out of 899 in his graduating class, has taken a number of shots at educators, calling them elite. This follows the example of GWB who for years dismissed the calls from the vast number of scientists who had been raising warnings about global climate change. Mr. McCain, you never paid attention to studies, but there are people who spend many years studying specific topics and are knowledgeable.

On Socialism. Merriam-Webster Dictionary gives the following definitions for socialism:

1: any of various economic and political theories advocating collective or governmental ownership and administration of the means of production and distribution of goods
2 a: a system of society or group living in which there is no private property b: a system or condition of society in which the means of production are owned and controlled by the state
3: a stage of society in Marxist theory transitional between capitalism and communism and distinguished by unequal distribution of goods and pay according to work done

Mr. McCain, Obama has never advocated anything that falls into 1 or 2 above. Published reports indicate that even today, there is unequal distribution of goods and pay according to work done, and in fact, women could receive up to 20% less than men for a similar job. This could be socialism, but it has nothing to do with Obama.
Any government, by definition, serves society and not any one particular individual. By this broad definition any government is socialistic. You keep harping about the need for more regulation of the financial industry. That is socialistic.
In simple terms, government collects taxes from the people. Once the money comes in, it goes into the governmnent's coffers where all the money is pooled. The government does not differentiate taxes received from one person from the dollars received from another. Money gets pooled, and this pooled money then gets spent. This is socialism. However, in the case of U.S. government, since the government (of GWB) has been borrowing money for spending, it is depending on foreign countries for its socialism.
WHen Obama wants to raise taxes for those making >X amount of money, it is raising revenues for the government. McCain, separate that from providing tax cuts to the middle class. A tax cut just means that government collects less money from people. It is NOT giving back money, it is taking less money. This is NOT socialism, and is NOT redistributing wealth. If Obama borrowed money and provided a check to everyone in the country that could be considered socialism. Isn't that what President GWB did a few months ago, with support from Congress? You plan to cut taxes for everyone. That is not socialism either, McCain.
If Obama collected money from one group and sent checks to another that is redistributing wealth. Since the government has been in debt for decades, and since YOUR president GWB has jacked up the deficits, there is NO government wealth to redistribute, McCain. Since the Bush tax cuts and deregulation have given us this mess (fiscal and moral deficits), Obama is looking at a solution that will help people just survive. Yes, you don't have a problem, what with 8 houses and a wife who spends $300K on one dress. Many of us have to deal with day-to-day survival.

One simple reason to vote against McPain and the Republicans: These Morons are Proud to be Ignorant, and say one thing and then do the opposite. McPain is the recipe for McSized deficits- fiscal, intellectual, and moral.

An Eventful Day..Hopefully not A Remorseful Day

The Remorseful Day...one of the suspenseful Morse stories of Colin Dexter, with the brilliant (late) John Thaw.
Mr. Thaw, my eternal gratitude for the wonderful thought provoking entertainment you have given us for decades.

On to events of the day - The Ben Bank lowered the Funds rate to 1%, which is where Easy Alan (Greenspan) kept it for a long time! Ben also hinted that further cuts are to come.
Sen. Obama did his 30 minute show today, and sold tickets for the big get-together on Nov. 4th in Grant Park. The tix were sold out in a matter of hours.

While the Fed rate cuts, while expected, are depressing, the McPain campaign is cutting deeply into the mind and soul of any thinking person. The allegations brought out today-
Obama is getting money from "nefarious" sources - unaccounted-for credit card donations.
Obama is palling around with PLO
Obama is a child-killer because he does not oppose "all" abortions
Obama is a socialist
Obama is a Marxist
and Finally Obama is Not Ready Yet.

Clearly McPain is coming apart at the seams...better packaging is needed to hold this slime together.

Talking about packaging, McDonald's is giving its containers a new look.

According to the Tribune, "Tenneco Inc., citing the "worsening industry downturn" afflicting its auto-maker customers, disclosed restructuring plans Wednesday that will eliminate about 1,100 workers' jobs and generate up to $60 million in charges. The Lake Forest maker of automotive components and systems has been hard hit by the global weakening of the auto sector, and earlier this year it cut 1,150 jobs. The new round of cuts -- which calls for the closure of five U.S production-related facilities and certain other cost-cutting actions, is expected to reduce annual costs by $64 million once it's completed, Tenneco said."

Gannett Co., the nation's largest newspaper publisher, said Tuesday it will lay off another 10 percent of the work force in its local newspapers division as advertising revenue continues to plummet during the economic downturn. The latest reductions, to come by early December, follow a 10 percent cut announced in August. Neither round affects USA Today.

Appliance maker Whirlpool announced that it plans to cut work force by 5,000 by end of 2009.

Time to elect a smart person to manage the country- otherwise the country moves one step closer to a mass social unrest...

Creating another bubble

The stock market was up more than 10% today, anticipating another rate cut. Ben will not disappoint. The problem is, what bubble will be created next? History has taught us that low interest rates spawns bubbles.
At the same time Iceland raised its rates to 18%.
Rates need to be higher, not lower. Borrowing should be made more responsible, both for borrowers and for lenders. That is the path to disciplined growth.

High Praise- Will take it when I get it

Today a first year student came to see me to discuss the courses to take in Spring. As her adviser, I have to approve her selections. She told me that she was seriously considering majoring in Psychology. I gave her some ideas and suggestions regarding courses. After our discussion, I let her know that while she was stuck with me for the next few months, she would get an adviser in the Psych department next year. To which she replied, "I am OK with you as my advisor."

Of course, on the other side, one of my advisees wanted to major in Political Science and I had her assigned to a professor in that department. The student promptly shot me an email asking why I was taken away as her advisor. So I had to put in a request to have her re-assigned to me.

The ups and downs of a college professor!

General Motors Looking for Generous Treasury

Bloomberg reports that "General Motors Corp., the largest U.S. automaker, has asked the Treasury Department for financial aid to help complete a merger with Cerberus Capital Management LP's Chrysler LLC, two people with knowledge of the matter said. Treasury Secretary Henry Paulson would prefer any funding come from the $25 billion in low-interest loans approved last month for the auto industry to build more-efficient vehicles, not the $700 billion banking-system rescue, said the people, who asked not to be identified because the talks are private. GM executives have asked Treasury to consider taking a stake in the Detroit-based company, said one of the people, though the government is reluctant to do so."

So,

GM makes a big bet on SUVs, goes after short-term results, management gets away with the loot, shareholders make money trading paper, the SUVs flip over and out, management keeps raking it in, and now the Treasury, after giving the auto industry $25 billion in low-interest loans, is considering giving these folks more money.

How about a few conditions before giving more money to these lunatics?

• Every Board member of these companies has to return every penny they took from these firms over the past X years, X >10.
• Every manager in GM / Chrysler has to give back all the money he/she made over the past X years, X >10.
• Every shareholder who made a profit on these stocks has to give his/her profit to the Treasury.
• The top three layers of management agree to be fired.

This will not happen, but needs to happen to make these folks accountable for the destruction they cause.

This really Smells!

WSJ reports that "America's garbage dumps are reaping a windfall from the fight against global warming. But their payday might not be doing much to reduce greenhouse-gas emissions." The article discusses "Pollution Credits" that allow Landfill managers to get "New Revenue in Trading System Meant to Curb Greenhouse Emissions."

Sen. John McCain's presidential campaign is relying on loopholes in campaign finance law to raise and spend money outside of the government's public funding program.

The amount of money spent on this Presidential Election is mind-boggling. The final tally is not in yet, but should easily exceed a billion dollars. This is not the greatest democracy on earth, it is the most corrupted democracy on earth. Money corrupts, and Big Money Corrupts in a Big Way.
For some sanity to return to the system, money should be taken out of the electoral process. Public institutions should be used to provide equal and educated coverage of all candidates. All private fundraising and private institutional involvement should be prohibited. No "institution" should be allowed to play any role in the electoral process.

Socialism- U.S. Treasury Style

According to the WSJ's article New Loan Fix Is Unlikely the Last FDIC Plans Mortgage Guarantees; Lawmakers Consider Pressuring Reluctant Investors- the government wants to take losses on mortgages so that holders of mortgage based derivatives will be protected and will agree to a revision of the loan terms of the underlying mortgages. Spread the pain to the taxpayers, but deliver the gain to the greedy and the stupid.

According to Bloomberg, The U.S. Treasury is considering taking stakes in insurers as it prepares a new round of capital injections targeted at regional banks and other financial companies.

The nuclear assault launched by the Treasury and the Fed on the financial crisis will do very little to address the underlying problem - the systematic destruction of the working class by the system that has rigged institutions and rules to favor "investors" over workers, and "capital gains" over wage earnings. Until "wage earnings" are respected, and "investment gains" are taxed at a much higher rate than currently, and investors settle for much less returns on their capital and let firms invest more, the crisis will just morph. The bankers will just create one bubble to replace another.

Lost in America - Character

I have been pounding the table about jobs. The economy will start to form a foundation and recover on a sound footing only if people start working on productive things. This generates productive output and creates value and provides an income stream that can support and enhance standard of living.

However, the Ben and Hank tag team seem intent on "throwing the kitchen sink" at the financial mess. AIG has apparently borrowed $90 billion from the Fed. Based on the prices of treasuries, the market expects the Fed to cut rates to below 1% over the next few weeks. Alert readers will notice the similarity to Japan's actions in the 90s. That country still has not recovered from its excesses. The Fed will try to re-inflate the economy. What will be inflated is still unclear.

It is time for the citizens of the country to comprehend the magnitude of the problem, and act.

• Shareholders should accept significantly less return on their investment. They should encourage their companies to invest- in R&D, in education of their employees, and in education in schools and colleges.
• Shareholders should put caps on executive pay. No company should pay its top executive more than perhaps twice or thrice the lowest paid full-time employee.
• The politicians should stop this nonsense about rebate checks and bailouts. Let the market take care of itself. The government should invest in infrastructure and start other major projects that create jobs.
• Parents should really push their children to learn.
  
• CEOs and other leaders should start to donate a lot more of their money and time to causes like education.

Without good training and education for its citizens, the country and its democracy will be in Dire Straits.




This video was sent to me by a friend. I will try to find the original source and provide appropriate reference.

Time to Elect a High-GPA High IQ Candidate

Some facts about Obama/Biden and McPain

Barack Obama:
Columbia University - B.A. Political Science with a Specialization in International Relations.
Harvard - Juris Doctor (J.D.) Magna Cum Laude


Joseph Biden:
University of Delaware - B.A. in History and B.A. in Political Science.
Syracuse University College of Law - Juris Doctor (J.D.)

vs.
John McCain:
United States Naval Academy - Class rank: 894 of 899


Sarah Palin:
1978-1982: Wasilla High School, diploma, 2.2 GPA
1982: Hawaii Pacific College (dropped out)
1983: North Idaho Community College (dropped out)
1984-1985: University of Idaho (dropped out)
1985: Matanuska-Susitna Community College, AK (dropped out)
1986-1987: University of Idaho, BA Communications

Hair-Raising Revelations, Or One Way to Redistribute Wealth

Socialism, The Republican Way

Amy Strozzi, Gov. Sarah Palin’s traveling makeup artist, was paid $22,800 for the first two weeks of October alone, according to the FEC records. The McPain campaign categorized Ms. Strozzi’s payment as “Personnel Svc/Equipment.” In addition, Angela Lew, who is Ms. Palin’s traveling hair stylist, got $10,000 for “Communications Consulting” in the first half of October. Ms. Lew’s address listed in F.E.C. records traces to an Angela M. Lew in Thousands Oaks, Calif., which matches with a license issued by the California Board ofBarbering and Cosmetology.

So, Obama is a socialist because he wants to reduce taxes for 95% of Americans. But when the blasted Republicans take money from their donors, and then spend it on their personal grooming and personal excesses, it is being "Pro America." What the *&*%? is happening to the moral fabric of society?

What if the Obama/McPain parameters were reversed....

A friend of mine shared the following info about McPain and Obama/Biden.
Quite thought-provoking.

A question of perspective: Obama/Biden vs McCain/Palin, what if things were switched around?.. think about it.

What if the Obamas had paraded five children across the stage, including a three month old infant and an unwed, pregnant teenage daughter?

What if John McCain was a former president of the Harvard Law Review and Barack Obama finished fifth from the bottom of his graduating class?

What if McCain had married only once and Obama was a divorcee, having left his first wife after she survived a severe disfiguring car accident?

What if Obama had met his second wife in a bar and had a long affair while he was still married?

What if Michelle Obama was the wife who not only became addicted to pain killers but also acquired them illegally through her charitable organization? What if Cindy McCain graduated from Harvard?

What if Obama had been a member of the Keating Five? (The Keating Five were five United States Senators accused of corruption in 1989, igniting a major political scandal as part of the larger Savings and Loan crisis of the late 1980s and early 1990s.)

What if McCain was a charismatic, eloquent speaker and Obama couldn't read from a teleprompter?

What if Obama was the one who had military experience that included discipline problems and a record of crashing seven planes?

What if Obama was the one who was known to display publicly, on many occasions, a serious anger management problem?

What if Michelle Obama's family had made their money from beer distribution?

What if the Obamas had adopted a white child? Would the polls be different?

This is what racism does. It covers up, rationalizes and minimizes positive qualities in one candidate and emphasizes negative qualities in another when there is a color difference.

Flattened by Xerox, knocked out by Merck, Genie's out of Genie,

This is a follow-up to yesterday's piece, "Goldman 'Sacks,' eBay bids audieu, Tellabs 'disconnects' - But well-oiled McD is heating up."

Xerox Corp. plans to cut 3,000 jobs, or 5 percent of its work force, because a slowdown in orders from large U.S. companies has dragged down the printer and copier maker's profit margins.

The once-hallowed firm Merck and Co. has announced that it plans to reduce its workforce by 12%, which means that 7,200 people will be let go. The industry has shed about 100,000 jobs in the last five years, according to Viren Mehta, founder of Mehta Partners, a strategic and investment advisory firm that focuses on the pharmaceutical industry.(NYT).

Genie Industries has laid off another 375 employees in the second round of job cuts in less than four months. The company, which makes aerial lifts, platforms and light towers, said Wednesday that it was being hurt by the global economic slowdown and the near-freeze in the credit markets. That has limited its customers' ability to order new equipment. Genie said the cuts represent about 18 percent of its work force in Redmond, which had about 2,400 production and office workers. It also has cut about 100 jobs at its Moses Lake plant, where it had about 650 employees. In July, Genie's parent company, Terex Corp., laid off 120 full-time workers and an undisclosed number of part-time workers in its aerial platforms division.

Telecommunications equipment maker ADC expects to cut between 300 and 350 jobs, or about 3 percent of its total work force. It said in a statement that it expects most of the planned cuts to take place in North America.

Goldman 'Sacks,' eBay bids audieu, Tellabs 'disconnects' - But well-oiled McD is heating up

Oh yeah life goes on
Long after the thrill of livin is gone
Oh yeay say life goes on
Long after the thrill of livin is gone....John Cougar Mellencamp

Firms seem to be firing "The Lay-off Announcements" on all cylinders.

• eBay announced it would lay off 10 percent of its 16,000 workers, including 1,000 permanent employees.
• Goldman Sachs Group Inc. is cutting about 10 percent of its work force amid the ongoing downturn in the credit and lending markets, a person briefed on the plan said Thursday. Goldman Sachs will cut about 3,260 jobs.
• My former employer Tellabs is cutting 280 jobs.
• Chrysler LLC announced it would get rid of 1,825 factory jobs and General Motors Corp. trimmed some benefits and said it would make further white-collar cuts.

On the 'Flip' side, a jump in global sales boosted McDonald's Corp.'s third-quarter profit by 11 percent, the company said Wednesday, a bright spot among restaurant companies as strapped consumers balk at spending their cash on dining out. The nation's No. 1 hamburger chain cited the popularity of its sandwiches and drinks, but reiterated that it was discussing changes to its Dollar Menu because of the high cost of ingredients and expected to reach a decision soon.
Consumers -- spooked by bank failures, declines in the stock market and talk of a prolonged recession -- have cut back on spending and focused on necessities. Given their desire to save cash, fast food sales have held up far better than those at pricier sit-down restaurants. Oak Brook, Ill.-based McDonald's is "recession-resistant," Chief Executive Jim Skinner said on a conference call, adding that it is "operating from a position of strength."

Being Put on the Spot - thanks to Bush and the Gang

Some people hope for a miracle cure
Some people just accept the world as it is
But I'm not willing to lay down and die
Because I am an innocent man...........................Billy Joel


Today, one of my really smart advisees came to see me about courses she was planning to take in the next term. She had chosen Accounting as her major last year. She told me today that after taking a few accounting courses, she was not sure if Accounting was right for her. I quickly looked up her grades to make sure she still had her 4.0 GPA, and she said she was doing fine in all her courses, including Accounting ones. So, it was not poor performance but she said that she was not excited by a future spent in Accounting. I had given her plenty of grief in the past about there being no accounting for her choice of major, but she assured me that it did not play a role.
She then said that she was considering majoring in Finance. This put me in a difficult spot, given the turmoil in the financial industry- turmoil caused by Bush and the Gang's ownership society actions. Should I encourage or discourage this bright lady? After some quick but deep thinking, I told her that the 'financial market' patient could stabilize in the next year or two before starting a serious recovery. I added that if she chose Finance, she should become really, really good at it, and she would do well after graduation. Perhaps it was a reflection of my guarded optimism.

Greenspan 'Shocked' but his brain does not recover...

Greenspan testified in front of Congress and said that he is "shocked" at the breakdown in U.S. credit markets and said he was "partially" wrong to resist regulation of some securities.
Greenspan, whose claim to fame was that he never spoke straight, still refuses to take his share of the blame for the destruction of many lives and livelihoods. His wife is following the McCain campaign and keeps defending the actions of Alan and the gang.

Mr. Greenspan, fess up! You have proved to be Bush's equal. While the latter ensured that our standing in the world was ruined, you made sure that we don't even have our own terra firma to stand on!

What a Gas!

Thanks, CS.
Cheney, శని, in one of the Indian languages, Telugu, means the Grim Reaper....

See-through Palin: Empress who spent $150K but has no clothes

Reports have come out that Palin went on a Shopping Spree in September

Jeff Larson is a prominent Republican consultant whose firm has been tied to the onslaught of negative robocalls from Senator John McCain’s campaign. Mr. Larson was also the chief executive of the local host committee for the Republican National Convention. Now it appears that Mr. Larson may have been the personal shopper for Gov. Sarah Palin’s lavish shopping spree — or at least he initially picked up the tab. Federal Election Commission records show that Mr. Larson was reimbursed by the Republican National Committee in September for more than $130,000 in purchases at Saks Fifth Avenue, Neiman Marcus, Macy’s, Barney’s New York, and Atelier New York, a men’s clothing store. The spending spree, first reported by Politico.com, was apparently to outfit Ms. Palin and her family. Should she decide to keep the clothing, its value would have to be taxed as income. I.R.S. rules allow for employees to deduct the cost of uniforms worn for work — as long as the clothing has no use other than one’s job. Back Story with Leslie Wayne (mp3) But if the same clothing can also be worn day-to-day, the cost cannot be deducted from income. And if paid for by someone else, as in this case, the value of the clothing must be reported as taxable income, Robert S. McIntyre, director of Citizens for Tax Justice, a nonpartisan tax policy research group, said on Wednesday. “If the clothes were only used for work, it would not be taxable income,” Mr. McIntyre said. “But if you can use them to go to lunch with your husband, it would.” The Republican National Committee confirmed the reimbursements to Mr. Larson, but said that the clothing bought for Ms. Palin and her family would eventually be given to charity. Mr. Larson did not return messages left for him today at his business in Minnesota. Apart from Mr. Larson, the McIntosh Company in Dallas, which appears to be a fund-raising firm run by Alison McIntosh, who has been identified in news reports as a fund raiser for the McCain campaign, was apparently reimbursed for $4,537 in purchases at Macy’s in Minneapolis, according to the commission records. It also appears that a woman by the name of Lisa Kline was reimbursed for several hundred dollars in purchases made at high-end children’s stores in Minneapolis, the Gap and Macy’s as well as a sewing supply store in New York. The full shopping list for Ms. Palin and her family, according to records of the Federal Election Commission, looks like this:

• $75,062.63 spent at Neiman Marcus on Sept. 10.

• $41,850.72 to Saks Fifth Avenue in New York on Sept. 10.

• $7,575.02 to Saks Fifth Avenue in St. Louis on Sept. 10.

• $5,102.71 to Bloomingdale’s in New York on Sept. 10.

• $789.72 to Barney’s New York on Sept. 10.

• Charges of $4,396.94 and $512.92 at Macy’s in Minneapolis on Sept. 10.

• $4,537.85 to Macy’s in Minneapolis on Sept. 22.

• $349.50 to Lord & Taylor in New York on Sept. 25.

• $4,902.08 to Atelier New York, a men’s clothing boutique, on Sept. 10.

• Two separate charges of $98 to Pacifier, a high-end baby store in Minneapolis, on Sept. 10 and Sept. 25.

• $98.50 to Steinlauf & Stoller, a sewing supply store, in New York on Sept. 25.

• $133 to the Gap in Minneapolis on Sept. 25.

The money for the clothing came out of the budget of the Republican National Committee’s co-ordinated campaign fund, not the McCain campaign, an an important legal distinction, said Kenneth Gross, a campaign finance expert at Skadden Arps in Washington. Had the money come from the McCain campaign, it would be a conversion of campaign funds into personal use, which is prohibited. The same rule does not apply to money from party committees.

“The R.N.C. is not made up of campaign money,’’ said Mr. Gross. “It’s not subject to the same restrictions as campaign money. The R. N. C. cleverly used the party committee’s money to avoid the liability that would have occurred if campaigns funds were used. It’s a fine line, but it separates what is legal from what is not.”

This on top of Mrs. McCain and her Convention outfit - from her über-pricey earrings to her Oscar de la Renta designer dress to her shoes to the tune of $300,000.

And these folks are talking about working class/middle class people? We could surely appreciate a law that punishes deliberate deception by sending the perpetrator(s) to Alaska for life, to wait and watch for Putin's head to pop up.

A Cheesy Story to Crack One up into a Jell-O

CJ, one of my former MBA students who works at Kraft (the Cheese and Crackers company) came to talk to my International Marketing Class. It is always fascinating to me to see my former students do their act up on stage- CJ was writing a lot of stuff on the board and describing what he does for a living. I learnt a lot about the food business. I am sure the students did too.
Thanks, CJ.

Fear-mongering, hatred spewing, race baiting, divisive rather than unifying

That defines the Modern Day Republicans.

Sarah Palin is going around calling Obama a Socialist- again using 'labels' to promote hatred. McCain is shouting that Obama is redistributing wealth. Both of them keep saying that Obama is hiding something. Now these two, through their surrogate Rep. Michele Bachmann, claim that Obama and his supporters are Anti-American, and they should be investigated, McCarthy style.

That McPalin will stoop to this evil act, and perhaps to even worse crimes, to win is fathomable. The fact that more than 40% of the voting populace seems to support these dastardly allegations through their support of McPalin should be enough to get the rest of the public, in the USA and in the rest of the world worried.

Uncool to be 'Smart' in the USA

Recently the NYT ran an intelligent article titled "Math Skills Suffer in U.S., Study Finds." The author, Ms. Rimer, writes that "United States is failing to develop the math skills of both girls and boys, especially among those who could excel at the highest levels, a new study asserts, and girls who do succeed in the field are almost all immigrants or the daughters of immigrants from countries where mathematics is more highly valued..... A major reason, according to the study, is that American culture does not highly value talent in math, and so discourages girls — and boys, for that matter — from excelling in the field. “We’re living in a culture that is telling girls you can’t do math — that’s telling everybody that only Asians and nerds do math,” said the study’s lead author, Janet E. Mertz, an oncology professor at the University of Wisconsin, whose son is a winner of what is viewed as the world’s most-demanding math competitions. “Kids in high school, where social interactions are really important, think, ‘If I’m not an Asian or a nerd, I’d better not be on the math team.’ Kids are self selecting. For social reasons they’re not even trying.” .....“There is something about the culture in American society today which doesn’t really seem to encourage men or women in mathematics,” said Michael Sipser, the head of M.I.T.’s math department. “Sports achievement gets lots of coverage in the media. Academic achievement gets almost none.”"

While this article refers to math competencies, the current campaign run by McPalin is based on propagating the culture that says that being smart and 'good' is 'not good.' The emphasis on 'Joe the plumber,' asserting that 'Obama palls around with terrorists,' calling Obama a 'socialist' and other names all indicate a complete disregard for intelligence. Obama can talk coherently and make a point- so McCain refers to him derogatorily as 'eloquent.' Obama can speak in complete sentences, so he 'cannot relate to the hockey moms and the six pack Joes.'

Now wonder the country has become a basket case over the past eight years - no person with intelligence would want to be associated with this pathetic 'I am proud to get an F' culture.

Bush InAction

Nowadays nobody seems to be paying attention to Bush. Except for some members of his own administration who come out and tell a little truth occasionally, even if it conflicts with the version told by the great liar. Case in point - the article titled "Regions in Recession, Bush Aide Says" in the NYT. “We are seeing what anyone would characterize as a recession in some parts of the country,” the adviser, Edward P. Lazear, chairman of the Council of Economic Advisers, told CNN. Unemployment in some areas is “much higher” than the 6.1 percent national level, he said.

Finally! A call for a head-roll

Finally.

At least one mainstream writer, Maureen Dowd, has finally written explicitly what I have been hinting at. She writes "....Who are these looters of our loot? The New York Times should follow up the excellent Portraits of Grief it did after 9/11 with Portraits of Greed. Payback doesn’t have to go as far as the French Revolution. The grifters shafting us don’t have to shed blood, but they do have to give the money back. As far as these self-serving corporate con men and short-selling traders are concerned, off with their headsets....Let’s hope that if Barack Obama becomes president, the first thing he does is keep his promise to make the junketeers come to Washington (preferably by bus or carpooling) and write the U.S. Treasury a check, after which he will fire them on the spot. Heads must roll."

Way to go, Ms. Dowd. Yes, heads must roll, not only those on top of bodies of Fuld, Raines, Mr. Syron, Mr. Sullivan, and the like, but also those of the regulatory officials, the Fed heads, the Treasury traitors, and shameless stock-pushers like Kudlow and his ilk on channels like CNBC.

Flying for College Low-fliers

A useful article From the WSJ.

Flying to College on the Cheap As Fares Rise, Students and Teachers Can Still Snare Deals By SCOTT MCCARTNEY

Higher airfares have raised the cost of higher education, from trips home for college students at Thanksgiving to study-abroad semesters. But two little-known companies that negotiate big discounts with airlines can save hundreds of dollars for students and their ticket-buying parents.

Even though airlines have piled on fees and eliminated most special discounts like senior-citizen fares and half-price tickets for young children, one vestige of airline goodwill remains. Several air carriers still offer special deals for students -- and teachers as well.

The student-discount fares aren't offered directly by airlines or most travel sellers. Instead, they are available only through a backdoor channel -- a few travel companies that negotiate directly with airlines, verify buyers are students or teachers and offer discounted fares only on their own Web sites and through their own travel agents. The two largest discount student travel sellers are STA Travel Inc., a company founded in Australia that claims to be the largest seller of student travel in the world, and StudentUniverse.com Inc., a Waltham, Mass., agency founded in 1992 that now is only an online travel seller. They offer different rates for trips because they have different agreements with airlines. One of the biggest advantages is that the student-discount fares are available as cheap one-way tickets or round-trips without many of the restrictions that regular air fares carry, such as maximum-stay limits. That gives students and parents flexibility in buying tickets to go to college or for study-abroad programs even when they don't yet know exam schedules or when they can return home at the end of a semester. Between Dallas and Hartford, Conn., for example, STA Travel offers a $242 one-way fare for an American Airlines flight on Dec. 20; the regular price offered by AMR Corp.'s American is $1,006 one-way, according to Orbitz Inc. Between New York and London on the same date, StudentUniverse.com had a $364 fare on Virgin Atlantic Airways Ltd., compared to $865 on Virgin's Web site. Coming home from the Sorbonne at Christmas? StudentUniverse had a one-way Paris-to-Los Angeles fare for $673 on Dec. 18 on United Airlines flights, while the cheapest offering on UAL Corp.'s United Web site for the same trip was $4,740.

Not all markets have discounts, and often the discounts are small. On round-trips I checked for a Dec. 20 departure and Jan. 11 return, STA Travel offered a $291 ticket on American for a New York-Miami roundtrip, compared to $310 at Orbitz for the American flights. Between Boston and Chicago for the same dates, the lowest price on American and United was $450 for the same dates; StudentUniverse offered the same flights at $423.

Brianne Eggers, a recent graduate of San Diego State University, says she traveled abroad four times in her college career, all with assistance and savings from STA Travel. "I checked around but they always had the best price," she said. "It really helps when you're paying for school, too."

Norm Bendell

STA Travel requires that students purchase a $22 International Student Identity Card (there's a version for teachers, too) that verifies their status for one year. The card offers discounts beyond airfare, and is sometimes required for study-abroad programs. STA Travel sells the card, and requires that purchasers fax or email a copy of a valid student ID, a current class schedule or a tuition receipt to the company for verification.

STA Travel grew with a network of offices near college campuses, but recently decided to close 48 of its 65 offices and focus mostly on its online selling (www.statravel.com) and call center (800-781-4040).

StudentUniverse doesn't require an ISIC and instead has developed a proprietary system to automatically verify a student or teacher's eligibility for the discounts, based in part on student and faculty email addresses. Airlines that participate in its program are satisfied that the verification system works, says Atle Skalleberg, head of research and marketing for StudentUniverse.

The prices StudentUniverse offers are fairly stable, unlike airline offerings that can bounce up and down several times each day, and don't rise closer to departure. "As students procrastinate, we get more competitive," Mr. Skalleberg said.

Airlines often dump seats they don't think will sell at regular prices with "consolidators" -- agencies that can sell seats at depressed prices without forcing the airline to alter its published fares and spark price wars with competitors. The student-discount programs serve the same purpose, airlines say, but have an added advantage: cultivating loyalty among future business travelers -- students who will eventually become regular corporate customers.

Restrictions are relaxed, airlines say, because they recognize it's often difficult for students to plan return trips months in advance. "Student travel requirements are different than the typical leisure passenger or business passenger," says a spokesman for US Airways Group Inc. And airlines say the deals offered are among the lowest they offer anywhere.

"They are a very good value," said a spokesman for American.

StudentUniverse says it has agreements with 29 airlines, including some of the biggest in the world, like American, Air France-KLM SA, United, Deutsche Lufthansa AG, and British Airways PLC, and its average discount over published rates, based on a study of 900 student purchases, is 14%. Discount airlines such as Southwest Airlines Co. and JetBlue Airways Corp. rarely participate in student-discount programs and sometimes have fares that are lower than the student discounts. Continental Airlines Inc., one major carrier that doesn't offer student discounts, says it eliminated that category of discounts along with senior fares several years ago. "With a multitude of published retail discount fares, we don't feel it is necessary to have another category of discounts," a Continental spokesman said.

Availability of good deals rises and falls with the economy, says Renaud Cyr, vice president of airline product at StudentUniverse. When there's lots of travel, airlines are tight with discounts. During slowdowns, ultra-discounted seats are easier to get. Like now.

"I think everybody is looking for an opportunity to fill an empty seat right now," said Mr. Cyr. One airline he declined to identify had long refused to offer discounted seats to StudentUniverse, but is currently negotiating to participate.

Discounts are often focused in college towns like Tallahassee, Fla., for example, but extend to bread-and-butter travel routes like the East Coast shuttles, which often carry faculty back and forth between Boston, New York and Washington, D.C., during the week, and lots of students on weekends.

Searching for Value, in Food, Politics, and ....

In a historic, unprecedented call, The Chicago Tribune today wholeheartedly endorsed Sen. Obama for the Presidency. While the Tribune's Editorial Board applauded Obama for his positives, it also wrote that "McCain failed in his most important executive decision. Give him credit for choosing a female running mate--but he passed up any number of supremely qualified Republican women who could have served. Having called Obama not ready to lead, McCain chose Alaska Gov. Sarah Palin. His campaign has tried to stage-manage Palin's exposure to the public. But it's clear she is not prepared to step in at a moment's notice and serve as president. McCain put his campaign before his country." This is the first time that the Tribune has endorsed a Democrat for President.

In a similar call, the Los Angeles Times has also endorsed Obama. Its Editorial Board writes that "But as the presidential race draws to its conclusion, it is Obama's character and temperament that come to the fore. It is his steadiness. His maturity.
These are qualities American leadership has sorely lacked for close to a decade. The U.S. Constitution, more than two centuries old, now offers the world one of its more mature and certainly most stable governments, but our political culture is still struggling to shake off a brash and unseemly adolescence." On Mccain, it writes that "Indeed, the presidential campaign has rendered McCain nearly unrecognizable. His selection of Sarah Palin as his running mate was, as a short-term political tactic, brilliant. It was also irresponsible, as Palin is the most unqualified vice presidential nominee of a major party in living memory. The decision calls into question just what kind of thinking -- if that's the appropriate word -- would drive the White House in a McCain presidency. Fortunately, the public has shown more discernment, and the early enthusiasm for Palin has given way to national ridicule of her candidacy and McCain's judgment."

One common thread tying up McCain is Palin.....

While the stated reasons for supporting Obama are clear, the role that Obama's race played in this decision is hard to gauge. Did the Editorial Board consider how it would look if it endorsed McCain over a close African American opponent? Did it really separate the value of Obama's presidency from his racial background? Question of Values.
*****

Talking about "Values" and "Valuing Value", it appears that "In a bad economy, many rediscover the value meal." According to this article, "Fast food is the part of the restaurant business that usually holds up best when the economy tanks. Right now special offers and value pitches are keeping fast food humming, according to market researcher NPD Group."

****
In an action that is unusual for the Bush administration, the federal government on Friday placed beluga whales that live in Cook Inlet in Alaska on the endangered species list, rejecting efforts by Gov. Sarah Palin and others against increased protection,...according to NYT.
“I am especially concerned,” the governor said in a written statement in August 2007, when her administration submitted documents to fight the listing, “that an unnecessary federal listing and designation of critical habitat would do serious long-term damage to the vibrant economy of the Cook Inlet area.”On Friday, Ms. Palin said the state had had “serious concerns about the low population of belugas in Cook Inlet for many years,” but she called the listing “premature.” Her administration challenged the federal government’s data, as it did with the polar bear decision.
***
Values on E-Bay...For the first time, eBay’s gross merchandise volume, the total sum of all transactions on the eBay Marketplace, declined.

GWB - A Safety Hazard for Citizens

OCTOBER 15, 2008

Bush Rule Changes Could Block Product-Safety Suits

By ALICIA MUNDY

WASHINGTON -- Bush administration officials, in their last weeks in office, are pushing to rewrite a wide array of federal rules with changes or additions that could block product-safety lawsuits by consumers and states.

The administration has written language aimed at pre-empting product-liability litigation into 50 rules governing everything from motorcycle brakes to pain medicine. The latest changes cap a multiyear effort that could be one of the administration's lasting legacies, depending in part on how the underlying principle of pre-emption fares in a case the Supreme Court will hear next month. Bush Administration officials are using their last days in office to rewrite a wide array of federal rules in order to block product safety lawsuits by consumers and states.
This year, lawsuit-protection language has been added to 10 new regulations, including one issued Oct. 8 at the Department of Transportation that limits the number of seatbelts car makers can be forced to install and prohibits suits by injured passengers who didn't get to wear one. These new rules can't quickly be undone by order of the next president. Federal rules usually must go through lengthy review processes before they are changed. Rulemaking at the Food and Drug Administration, where most of the new pre-emption rules have appeared, can take a year or more. The Bush administration's efforts to protect corporations that comply with federal rules from legal action have fueled a long-running power struggle between business interests, which support the efforts, and consumer groups and trial lawyers who have denounced the moves. The U.S. Chamber of Commerce's Institute for Legal Reform supports pre-emption as part of its campaign to "neutralize plaintiff trial lawyers' excessive influence over the legal and political systems," according to its Web site. "It's exceedingly difficult for companies to comply with 50 different state standards," the Institute's president, Lisa Rickard, said in an interview.

The rule changes could be one of President George W. Bush's legacies.

The American Association for Justice, the trial lawyers' lobby, is trying to formulate a strategy to undo pre-emptive rules. "This is the gift that keeps on giving for corporations," said the association's chief executive, Jon Haber.

The use of rulemaking to protect corporations from product liability was discussed from early in the Bush administration, said former Bush domestic-policy adviser Jay Lefkowitz, who was instrumental in the process.

One administration concern was the spiraling number of multimillion-dollar product-liability lawsuits against corporations based on state "failure to warn" rules, said Mr. Lefkowitz and other former administration officials. Some state consumer-safety laws on product warnings are tougher than, and conflict with, federal standards, particularly in the pharmaceutical area.

"You can't ask companies to follow different standards," Mr. Lefkowitz said. The lobby for drug makers, the Pharmaceutical Research and Manufacturers of America, says that such inconsistencies on drug labels "may be, at best, confusing, or at worst, life-threatening."

The Office of Management and Budget, which reviews regulations, has denied there has been a top-down plan in the administration to end lawsuits via regulatory changes. But in March, the OMB directed wording on railroad-tank-car safety. According to an email titled, "Preemption language for the preamble in the tank car rule," the Federal Railroad Administration and the Pipeline Hazardous Materials Safety Administration, part of the Department of Transportation, were asked to use OMB's pre-emption wording. The rule hasn't been finalized.

Changing Rules

Some federal rules protecting industry from litigation:

• MATTRESS FLAMMABILITY Rule requires mattresses that burn more slowly. Prevents suits if consumer is injured in fire.
• DRUG LABELING A rule makes the FDA responsible for the wording of label warnings. Companies that comply get protection.
• RAILROAD SAFETY Requires stronger construction for rail cars carrying hazardous materials. Suits barred if cars catch fire.

Mr. Lefkowitz said the administration decided not to press its pre-emption agenda in Congress, where it might lose. "There was already authority within federal government statutes and regulations to start the reform process without legislation," he said. "Using that and legal briefs, we proceeded."

The FDA began entering lawsuits and submitting briefs on the side of drug makers and supporting federal pre-emption in 2001, though the agency previously supported the right to sue. The Supreme Court will hear arguments next month in a case called Wyeth v. Levine that will be a big test of federal pre-emption authority. Diana Levine, a musician, lost an arm to gangrene after receiving an antimigraine drug made by Wyeth in a hospital emergency room. She claims the company didn't adequately warn about side effects under Vermont law. Wyeth says it followed federal warning-label standards and is protected from Ms. Levine's claims.

The FDA, through the Justice Department, is defending pre-emption in that case, citing its own 2006 rule that says federal safety regulations trump state ones.

Pre-emption regulations are already affecting some pharmaceutical suits. The state of Alaska recently settled a case with Eli Lilly & Co. to recoup medical costs for the antipsychotic drug Zyprexa for $15 million, a fraction of the original amount demanded, because of the Wyeth case, which could undo a large jury verdict, said the state's assistant attorney general Ed Sniffen.

The "Money" is in the Details...

The WSJ and other newspapers are reporting the hidden details behind the bailout of the financial sector by the Ben and Hank team. Among the hidden gems, according to WSJ's "Obscure Tax Breaks Increase Cost of Financial Rescue - IRS and Treasury Take Series of Steps for Investors Caught Up in Crisis, Sparking Complaints of Overstepping Authority"

• Banks have free reign over the use of "tax losses" of the firms they have acquired
• Firms can borrow money from their foreign subsidiaries for longer periods. The current rule allows a company's foreign units to make a tax-free loan to the company as long as it is repaid in 30 days. Over a one-year period, the company can have outstanding loans from its subsidiaries for up to 60 days. Under the new rules, U.S. company can keep cash from a single loan for up to 60 days.In total, the company could have borrowed money for up to 180 days in a one-year period. See IRS eases tax rules on US firms with foreign units.
• Treasury/IRS has changed the capital loss deduction rules so that banks that have lost money on Fannie and Freddie preferred stocks can deduct them from ordinary income rather than deducting them from capital gains- again reducing the tax payments.
  

In both these cases, the Treasury is making changes to the tax code on its own, without legislation from the Congress. In fact, Congress was not even consulted about these changes. The cost to the tax payers- potentially tens of billions of dollars. One more data point that illustrates the way the "Corporate CEO Bush" is running the government to benefit his 'Corporate Buddies."

GWB - Dumping on the Citizens in his final days

Interior Department moves closer to easing mining waste dumping near streams

By H. JOSEF HEBERT

Associated Press Writer

5:55 PM EDT,

WASHINGTON (AP) _ The Interior Department has advanced a proposal that would ease restrictions on dumping mountaintop mining waste near rivers and streams, modifying protections that have been in place — though often circumvented by mining companies — for a quarter-century.

The department's Office of Surface Mining issued a final environmental impact analysis Friday on the proposed rule change, which has been under consideration for four years. It has been a top priority of the surface mining industry.

It sets the stage for a final regulation, one of the last major environmental initiatives of the Bush administration, after 30 days of additional public comment and interagency review.

The proposed rule would rewrite a regulation enacted in 1983 by the Reagan administration that bars mining companies from dumping huge waste piles — known as "valley fills" — from surface mining within 100 feet of any intermittent or perennial stream if the disposal adversely impacts water quality or quantity.

The revisions would require mining companies to minimize the debris they dump as much as possible, but also would let them skirt the 100-foot protective buffer requirement if compliance is determined to be impossible.

"The new rule will allow coal companies to dump massive waste piles directly into streams, permanently burying them," warned Joan Mulhern of Earthjustice, among the environmental groups that have fought the practice known as mountaintop removal mining widely used in Appalachia, especially in West Virginia, Kentucky and parts of Virginia and Tennessee.

Mining companies remove vast mountaintop areas to expose the coal. While they are required to restore much of the land, the removal includes many tons of rocks, debris and other waste that are trucked away and then dumped into valley areas, including stream beds.

Despite the 100-foot buffer requirement, environmentalists estimate hundreds of miles of streams have been impacted, some of them obliterated, because of lax enforcement of the 1983 restrictions or different interpretations of the federal rule.

This proposed rule "legitimizes mountaintop removal and its most damaging effect which is putting valley fill and sludge into streams," Mulhern said.

Jason Bostic, vice president of the West Virginia Coal Association, said the group was disappointed about the proposal to require companies to minimize waste. But he said of the 100-foot stream buffer revision: "We're relieved that the rule clearly enunciates congressional intent that valley fill construction and coal refuse construction can take place in intermittent and perennial streams."

The Office of Surface Mining maintains that the 1983 rule "has never been applied as an absolute prohibition of mining activities near a stream," according to a fact sheet included in the rulemaking. It acknowledged there has been confusion about the rule among federal and state regulators.

The revisions are an attempt to clarify the situation, the fact sheet says.

The mining agency, in a statement issued Friday, said the proposed changes reflect a "slightly positive" improvement in environmental protection because it would require coal companies to minimize impacts of the dumping by reducing the amount of wastes and the disposal areas.

Mulhern called that "a sham" and said the agency "did not even study, among available alternatives" the option of strictly enforcing the stream buffer rule that has been on the books since 1983.

"Instead they pretended that the existing stream buffer law does not apply. ... They claim their rule is better for the environment when the exact opposite is true," she said.

___

Associated Press writer Tim Huber in Charleston, W.Va., contributed to this report.

A Rewarding Education......

With all the problems facing the country including the destruction from the divisive McPalin campaign, little things can mean a whole lot more....

For the second time this Fall, I had a former student of mine come back and talk to one of my classes. DM graduated with a degree in Accounting earlier this year, and works for a tax and audit firm where he interned in his final term in College. This morning, he took a hour off from work. He came into my office and I had a brief chat with him for twenty minutes and then he talked to my class of 25 students for about half an hour. He discussed the importance of internships, work culture, the adjustment from taking classes in College to working professionally, and other topics. I had advised DM when he joined our College as a freshman four years ago. I was amazed and delighted to see his maturity and his poise now. I was also pleased to observe how much he had learnt in the short time he has been working as a professional. Earlier in the term, I had another former student, JB, come and talk to my current students about her work. She is a 'high potential' star and is climbing the corporate ladder at one of the country's largest packaged food manufacturers. JB talked about her experiences, and how she had decided to major in Supply Chain Management. She is quite an amazing person to watch.

While the 'job' of educating the students pays my bills, the 'Education' I get is the greatest reward. Observing the products of my process, and engaging in continuous process improvement is an enriching experience- a "no brainer" reward for the thinking educationalist.

Chicago Tribune, OTOH, takes a gloomy perspective in its article "Is college worth it?" where it states that 'Money is only one of the reasons to go to college, of course. But with college costs skyrocketing and the economy worsening, the question of whether higher education is a worthy financial investment is no longer a no-brainer."

Crooks, Liars, and Fakers

Plenty of News on the Crooks, Fliers on the Liars, and No Takers for the Fakers...


Report: Taxpayers paid for GOP politicking in 2006 elections
The White House dispatched cabinet members and other agency officials to more than 300 events nationwide to help Republican candidates in the run-up to the 2006 midterm elections, according to a House of Representatives committee report. Taxpayers paid for more than half of the events, the report said.....

Judge orders Palin staff private e-mails preserved... A state judge reaffirmed Wednesday that government-related e-mails Gov. Sarah Palin and her staff sent from private accounts must be preserved and ordered further arguments over whether to halt the use of such accounts for state business.....Palin has occasionally used private e-mail accounts to conduct state business, and her Yahoo accounts were hacked last month. It was not widely known that the governor and her staff were using private e-mail accounts until McLeod filed the first of several open records requests earlier this year that yielded some of the e-mail traffic. Alaska officials blacked out much of it, citing privacy reasons.

Banks’ Bailout Unlikely to Crimp Executive Pay.... the bailout plan for the nation’s banks unveiled on Tuesday, no heads will roll, as they did in the United Kingdom. No banking executives are likely to go hungry, either. But their parting may not be quite as sweet.....Banks that get an equity infusion from the government will have to follow some general rules on paying their top five executives. They will be restricted from offering golden parachutes, as rich severance packages are called, and they will have to pay more taxes if an individual’s compensation exceeds $500,000. ...WOW!!!!!!!!

Despite all the fakes by Ben and Hank the market is realizing that sometimes real reality trumps fake reality. The S&P 500 down 9.03% as 'em Wall Streeters and Main Streeters digest the ugly news about our economy and our lackluster leaders.

Zoning in on Ozone, McZone, JobZone and PepsicOne.

Not much attention has been paid recently to Ozone, the O3 molecule. Holes in ozone layer in the have been a serious cause for concern..
Now, results of a scientific study indicate that ground level Ozone Pollution is to Worsen Under Climate Change. Surface-level ozone, a poisonous gas that claims tens of thousands of lives annually, could get much worse thanks to the effects of climate change, according to this new research.
On another topic, McCain is going after Youtube after the latter removed some of his commercials from the site. The reason- McCain's promos used snippets from news clips, potentially violating the news organizations' copyrights. The Senator's campaign calls it fair use. This from someone who put his rubber stamp on Bush's actions w.r.t. the FCC.
More depressing news...
Daimler, the world’s largest maker of heavy vehicles, announced plans on Tuesday to eliminate its Sterling truck brand and shift production from the United States to Mexico, moves that will cut about 3,500 jobs in Canada and the United States.
One can understand the auto companies' actions.
But PepsiCo Inc. is cutting jobs and closing factories to "give it some "breathing room" to navigate the volatility that has permeated all corners of the global economy. "
The maker of Pepsi-Cola, Doritos and Sun Chips said Tuesday it plans to eliminate 3,300 jobs and shutter six plants in an effort to save $1.2 billion over three years. It plans to use the savings primarily to revive lagging U.S. soft drink sales.
This despite the fact that Pepsico made $1.58 Billion in net profit in the third quarter.....A profit of $1.58 billion in three months is not much to drink to, as far as Pepsico is concerned.

Focusing on the Job Market

While there is euphoria in the stock market today, the key indicators to watch are the quantity and quality of jobs.
Some stories today...

More Americans Vault Overseas to Search for Jobs. Asia, Europe attract financial pros as woes in the U.S. take a toll

How Toyota treats its full-time employees (compared to the US Auto Gia..., oops, Auto Dwarfs). Toyota Keeps Idled Workers Busy Honing Their Skills For years, Detroit's Big Three car makers have paid their workers even when they aren't needed on the assembly line. This year, as the industry's downturn intensifies, Toyota Motor Corp. finds itself doing the same thing. Instead of sending the workers home, as the Detroit makers often do, Toyota is keeping them at the plants, though. The employees spend their days in training sessions designed to sharpen their job skills and find better ways to assemble vehicles.

GM to Stamp Out factory in Grand Rapids, MI. General Motors Corp.'s efforts to hoard cash and outlast a prolonged economic slump claimed the jobs of more than 2,700 workers Monday as the automaker announced the demise of factories in Michigan and Wisconsin. GM said it would shutter a metal stamping factory in the Grand Rapids suburb of Wyoming by the end of next year, and it also sped up the closure of its Janesville, Wis., sport utility vehicle plant, with most of that facility shuttering Dec. 23.

International Business Machines Corp. is opening its first research facility in about a decade, inaugurating an operation in Shanghai that will work to build new applications for the Internet and small businesses.

Psychology and Statistics- Barkin' Palin and the Android Phone

All the Central Bankers and Treasury Managers have huddled together and pumped massive amounts of money into the 'system' - no wonder that Wall Street put together a massive gain with indexes up > 11% . As I tell students, there are only two subjects worth knowing - psychology and statistics. A 100% gain doubles your investment, but just a 50% loss returns it to its original value. So smaller numbers can pack a bigger punch. Dow going from 8000 to 14000 was a 75% gain, Dow going from 14000 to 8000 is a 42.9% loss.

With the pit bull 'Barkin Palin' who is trying to bite off Obama and Biden, there is simple psychology. Inspire fear and hatred. Get the 'white' voters to be scared and vote for her ticket. Statistics after the election will demonstrate if her strategy worked.
***
According to reports, T-Mobile has already taken 1.5 million preorders of Google's Android phone. "The staggering number of presales comes just 10 days before the T-Mobile-powered Android's official launch date Oct. 22. Neither T-Mobile, Google or handset manufacturer HTC has confirmed the reports that first appeared on Motley Fool. According to the Web site, Apple originally thought it would sell 10 million second-generation iPhones Apple this year. The G1 preorders are three times the original amount of phones T-Mobile ordered from Taiwan-based HTC, which rapidly sold out. ."

In perspective....

Quite a bit of interesting news over the weekend...

Golden Gate Managers Vote to Build Suicide Net: After decades of debate, and unknown numbers of lost lives, the board that controls the Golden Gate Bridge took a major step toward building a suicide barrier on Friday, voting to erect a net under the span.

Tropical Species Also Threatened by Climate Change. If you can't stand global warming, get out of the tropics. While the most significant harm from climate change so far has been in the polar regions, tropical plants and animals may face an even greater threat, say scientists who studied conditions in Costa Rica.

"Many lowland tropical species could be in trouble," the team of researchers, led by Robert K. Colwell of the University of Connecticut, warns in Friday's edition of the journal Science.

An interesting story..

Would you give up a super seat?

Rebecca- My Fair Lady

A wonderful movie is on TCM right now- Rebecca. Based on the novel by Daphne Du Maurier, this is my favorite Hitchcock movie- with fine performances by the great Sir Laurence Olivier, Joan Fontaine, and the irrepressible George Sanders. An interesting story- three years go I was teaching a course on Global Business and on the first day of class I took a roll call. As I was going through the roster I came across the name 'Rebecca.' I called out the name and a young lady responded. I asked her if she had seen the namesake movie. She replied that she had not only seen the movie but had also read the book by Ms. Du Maurier. I was impressed. As it turned out Rebecca was one of my best students ever! To emphasize the rarity of this type of event, I should mention that I have had quite a few "Christine"s in my courses who had never heard of Christine Lahti, an Audrey who had not heard of Audrey Hepburn, a Krissy who had not heard of Chrissy in Three's Company, and so on....Christine Lahti is a person I highly admire. She stands up and speaks out about fairness and justice and women's issues.

Another fine movie based on a Daphne Du Maurier novel is Don't Look Now.

Yesterday, I was watching, yet again, the wonderful My Fair Lady. Audrey Hepburn, in my view the finest Hollywood actress ever, is just marvellous as is the entire cast. A very enjoyable film anytime. It is amazing that this movie was up against Mary Poppins, for which Julie Andrews won the Oscar.

As Sarah Palin has proven 'eloquently,' appearances can be fake and deceiving. Of course, talking about Keeping up Appearances, Mrs. Hyacinth Bucket, the 'Bucket Woman,' always has (and provides) the last laugh!

Wall Street Wails and Papa Paulson works The Nationalization of Banks: What A Crisis of Ethics!

The stock market has gone down dramatically this week, looking like it has taken a big upper cut from Mohammed Ali. The S&P 500 is down nearly 16.3% for the week.

The Fed, the Treasury, the BOE, the ECB, and just about every Central Bank has been pumping money into the system and performing every trick in the playbook. Unfortunately, it is a classic question of the tail wagging the dog. Instead of earnings and good governance impacting prices, the 'officials' want to play their tricks to move the stock prices up first. The latest move is to NATIONALIZE THE BANKS. Headline: US to buy stake in banks, first since Depression.
"The government will buy an ownership stake in a broad array of American banks for the first time since the Great Depression, Treasury Secretary Henry Paulson said late Friday, announcing the historic step after stock markets jolted still lower around the world despite all efforts to slow the selling stampede. No one seems to display any sense of ethical behavior."

It helps to repeat the root cause of the current problem.
Everything begins with income- either from a job, or from return on assets like rental income from properties, or retirement income from sources like Social Security. Any family has to first pay taxes on income, then satisfy its essential, non-discretionary needs like basic food, clothing and shelter. If any cash is left, then it can be used for discretionary purchases, or can be saved. When on'es income goes down, then items have to be cut first, and then non-discretionary items may have to go too.
WHen the Internet Excess/Bubble burst, millions of well-paying jobs were wiped out. This was followed by 9/11. Right afterwards, Mr. Bush exhorted the public 'to go out and spend.' Jobs lost---> incomes down---> got to keep the life style going -----> borrow and spend. While the borrow and spend strategy has worked for the government it does not work for the common chump on the street.
For borrow and spend strategy to work ---> folks willing to lend. WaMu, Chase, Lehman, Fannie, Freddie, and all the others were more than eager to lend ----> these firms made huge 'accounting profits' because rising asset values meant that their loans were 'safe' and folks would pay back their loans with their rising income, rising from growth in asset prices.
Asset prices, primarily that of houses, drop because fake demand can be built up only for so long, but real supply keeps cropping up like cockroaches ----> income from jobs not enough to meet non-discretionary needs and discretionary needs AND pay the interest on debt ----> defaults on debt rises ----> assest, in the case of secured debt, are repossessed -----> asset prices of remaining properties fall further ----> downward spiral accelerates.

A serious examination of the 'job recovery' after 2001 reveals that a large percentage, certainly > 50%, of the jobs came from housing related industries and finance related industries. Any economy based just on the 'finance industry' is suspect, as this episode has proven.

All the solutions pushed by the officials, Obama, McCain and the bunch, just put more money into the system, make the taxpayers take possession of assets, some of them worthless, and enrich the bankers and the stockholders. These solutions do not address the fundamental issues that should be talked about and the expectations that should be set.
Some of the basic ideas that should be followed include:
1. Living within one's means
2. Getting used to a lower standard of living
3. Getting a more rigorous, higher quality education
4. Forcing the government to spend more on education and infrastructure and much less on defense and highways to nowhere
5. Pushing back the culture where 'faith' blinds reason and logic.

If the government does not intervene and let the market forces work, the system will reach an equilibrium. Lousy institutions fail, people will stop gambling on Wall Street for a long time and focus on productive work, banks will eventually start lending based on good credit evaluation principles, and the system will be rebuilt on solid foundations.

It's up to Everyone to Protest this Culture of Hatred and Fear

On Wednesday I had written about the McPalin campaign stoking the worst attributes of human behavior- fear, hatred, and animosity, among their base supporters, many of whom are evangelical Christians. Palin has been leading the charge, and has joined by McCain and his wife. Elements in the crowd have been shouting 'terrorist' and 'kill him,' referencing Obama.

In the context of this culture, my College experienced a dastardly hate crime today. What is even more disturbing is the number of people who refuse to comprehend that such crimes happen, and that hate can easily rear its ugly head.