Why Endorse? Bayh Asks Hoosier Reps | The Trail | washingtonpost.com: "With his state's critical primary in two short weeks, Democratic Indiana Sen. Evan Bayh -- a strong supporter of Sen. Hillary Rodham Clinton -- has been leaning on the Hoosier State's freshman House members to stay on the sidelines rather than endorse Sen. Barack Obama."
Israelis Claim Secret Agreement With U.S. - washingtonpost.com: "A letter that President Bush personally delivered to then-Israeli Prime Minister Ariel Sharon four years ago has emerged as a significant obstacle to the president's efforts to forge a peace deal between the Israelis and Palestinians during his last year in office."
democracyarsenal.org: McCain Five Years Ago Today - Praised Rumsfeld, Bush, Conduct of War
Five years ago today and a week prior to Bush's "mission accomplished" speech John McCain was on Chris Matthew's "Hardball" where he praised the President, Rumsfeld, and the strategy and tactics used to go into Iraq. Of note, McCain said Bush had “done a great job,” and that he was a "great admirer of Rumsfeld." He also said he thought the Sunni and Shia would "probably get along" and that we did not need any more international troops on the ground.
This interview - month after the war began - clearly shows that John McCain was not the critic he claims he was. But it does more than that. It shows that McCain was in lockstep with the strategy and tactics that the administration employed in invading Iraq.
McCain was proud of Bush's leadership on the war in Iraq:
MATTHEWS: Let me you about, are you proud of the work, and the leadership of the commander-in-chief in this war?
MCCAIN: Yes, I am. I think the president has led with great clarity and I think he's done a great job leading the country, don't you all? [MSNBC Hardball, 4/23/03]
McCain on admiring Rumsfeld.
MCCAIN: "…and I'm a great admirer of Rumsfeld."
...MCCAIN: I think the president is blessed to have two extremely talented people (Powell and Rumsfeld), experienced people, working for him, and others, but particularly those two. [MSNBC Hardball, 4/23/03]
McCain – Sunni Shia can probably get along.
UNIDENTIFIED MALE: Senator McCain, with what you've already said about the powerful presence of the Shiah majority in Iraq, how would you propose we represent that majority in the new democracy?
MCCAIN: Well, I don't think there's any doubt that as the largest population segment, that they would play a major role.
I think one of the tricky areas, of course, is the relationship they have with the Kurds. There's not a history of clashes that are violent between Sunnis and Shiahs. So I think they can probably get along. [MSNBC Hardball, 4/23/03]
Despite claiming to have called for more troops from the outset, McCain didn't think we needed more international troops on the ground.
MCCAIN: I think that the only military presence required right now would be American and British. [MSNBC Hardball, 4/23/03]
McCain talks about lessons he learned from Vietnam, lessons that apply pretty clearly to Iraq as well.
MCCAIN: ...I have been committed from my experience in Vietnam never to get into a conflict that the American people would not support over time.
I felt that the difference between the Vietnam conflict and this one we just went through is that in Vietnam, we didn't have clear cut objectives. We didn't have a strategy for victory. And obviously, we didn't have, over time, the support of the American people. I didn't feel that the Iraqi challenge in any way could be equated to that in Vietnam. [MSNBC Hardball, 4/23/03]
newsobserver.com | TV station rejects state GOP ad
At least one North Carolina TV station is refusing to air the N.C. Republican Party's ad about Sen. Barack Obama's former minister.
A spokesman for WRAL-TV in Raleigh said the station will not show the ad. A spokesman for another Triangle station, WTVD, said it had not been asked to air the ad but would have reservations about doing so.
The ad points out that Democratic gubernatorial candidates Beverly Perdue and Richard Moore have endorsed Obama. It calls Obama too "extreme" because of his ties to the Rev. Jeremiah Wright and implies that Obama heard Wright's controversial sermons.
The state GOP made a splash Wednesday when it rolled out the ad for reporters and the public. The Republican National Committee and presumptive Republican presidential nominee John McCain have condemned the ad.
Meanwhile, national Democratic Party Chairman Howard Dean said McCain should lead his party in protesting the ad.
In an e-mail message to supporters, Dean said if McCain were serious he should have no problem making sure the ad never runs.
"This is a test of leadership for John McCain," Dean said. "If he can't pick up the phone and make members of his own party stop airing a television ad he claims to oppose, how can he lead our country through an economic crisis or the war in Iraq?"
He said McCain should discipline state GOP chairwoman Linda Daves for producing the ad.
The state Republicans hoped the ad would help them raise money. But it also has become the focus of a fund-raising effort by state Democrats.
Jerry Meek, chairman of the N.C. Democratic Party, has sent out a letter to North Carolina Democrats saying the ad shows "just how out of touch North Carolina Republicans truly are."
"This much is clear: North Carolina Republicans will say anything and do anything to win," Meek writes.
Meek tells Democrats that they need to raise money to "prepare us for the challenges ahead." He asks them to send a contribution of $50, $25 or $15.
Bad Company: EMI Says You Can't Store Your Music Files Online
today, MP3tunes' CEO Michael Robertson sent out an email to all users of the online music backup and place-shifting service MP3tunes.com, asking them to help publicize EMI's ridiculous and ignorant lawsuit against the company. EMI believes that consumers aren't allowed to store their music files online, and that MP3tunes is violating copyright law by providing a backup service. (And we're not using a euphemism here—it really is a backup/place-shifting service and not a file sharing site in disguise.)
It's Just a Plant
It's Just a Plant is an illustrated children's book about marijuana. It follows the journey of a young girl as she learns about the plant from a diverse cast of characters including her parents, a local farmer, a doctor, and a police officer.
News - City - Turning the Tables - Portland Mercury: "A CITIZEN who watched a cop illegally park, then walk into a Chinese restaurant to wait for his food, has issued the officer a series of citizen-initiated parking violations."
Vous Pensez – The geekiest pants… ever?
Designer Erik De Nijs, has stitched together this eye catching pair of “Beauty and the Geek” jeans. These “modern shaped trousers which are often worn by youngsters..” are the perfect solution for Googling quick exits while running from the fashion police. Built into the knees are a pair of crotch rocking speakers, around the back you have the added convenience of a back pocket for your “mouse”, and for you gamers, there is a joystick controller located just behind the front zipper.
Pinkberry's "natural" desserts are made of toxic labratory gunk - Boing Boing
FOR a seller of “chilly bliss” and “swirly goodness,” Pinkberry has taken a lot of heat.
Pinkberry, a frozen yogurt chain, inspired a passionate following when its first store opened, in West Hollywood in 2005. Its “original” flavor is smooth and tangy, and tastes like nothing so much as plain yogurt with a small amount of sugar.
The company initially touted its product as healthy, nonfat and all-natural, but did not say exactly what was in it.
“It always seemed too good to be true,” said Christina Yeo, a graduate student, at a Manhattan Pinkberry on Monday. “That’s why people were so curious about it.”
After a class-action lawsuit was filed last year accusing the company of deceptive marketing, Pinkberry posted ingredients on its Web site. But that got little notice until the case was settled two weeks ago. (The company said the lawsuit had nothing to do with the posting.)
There is, it turns out, a great deal more than yogurt in those costly white cups.
The ingredients list for Original Pinkberry has 23 items. Skim milk and nonfat yogurt are listed first, then three kinds of sugar: sucrose, fructose and dextrose. Fructose and maltodextrin, another ingredient, are both laboratory-produced ingredients extracted from corn syrup.
The list includes at least five additives defined by the United Nations Food and Agriculture Organization as emulsifiers (propylene glycol esters, lactoglycerides, sodium acid pyrophosphate, mono- and diglycerides); four acidifiers (magnesium oxide, calcium fumarate, citric acid, sodium citrate); tocopherol, a natural preservative; and two ingredients — starch and maltodextrin — that were characterized as fillers by Dr. Gary A. Reineccius, a professor in the department of food science and nutrition at the University of Minnesota and an expert in food additives.
Some of them can be characterized as natural, while others are clearly not, he said.
“Isn’t it amazing how many additives it takes to make something taste natural?” Dr. Reineccius said.
Many of the ingredients give Pinkberry qualities that nonfat frozen yogurt would not have naturally, Dr. Reineccius said.
“They are there to make something smooth, sweet and tangy that would otherwise be gritty and flavorless in a frozen state,” he said.
Pinkberry acknowledged that some of the claims it made when its stores first opened could not be backed up.
In an e-mail message, Pinkberry’s chief executive, Ron Graves, said: “In the company’s early days some of its point-of-sale material contained the words ‘all natural’ — which was an honest mistake by the founders. The yogurt used was ‘all natural,’ which was the source of confusion.”
Pinkberry’s fiercest competitor, Red Mango, uses 14 ingredients in its frozen yogurt, the first of which is water. It also lists four types of active cultures. (Red Mango’s Web site has always listed the product’s ingredients.)
Both companies use nonfat dairy products, sweeteners, emulsifiers and acidifiers, but only Pinkberry’s frozen yogurt includes artificial colors and flavors. Guar gum, another ingredient, is commonly used in frozen desserts to slow the melting process. (Pinkberry’s Web site touts the product’s “pouty peaks,” which guar gum helps to achieve.)
Pinkberry and Red Mango now enjoy the Live and Active Cultures seal of the National Yogurt Association, certifying that their frozen yogurt contains at least 10 million live cultures per gram at the time of manufacture.
But the specific health effects of live cultures — now called probiotics — and how many of them are needed to provide a beneficial effect have not been determined.
In January another yogurt-related class action lawsuit was filed, against Dannon, challenging the company’s claims that the benefits of its trademarked probiotics were “clinically” and “scientifically” proven.
Pinkberry announced its certification two weeks ago, just as a preliminary settlement was reached in the class action suit. While saying it had done nothing wrong, Pinkberry agreed to donate $750,000 to hunger and children’s charities, and to pay the plaintiff’s legal costs.
“Personally, I would have preferred that the money go toward consumer advocacy against misleading food marketers,” said Ray Gallo, a lawyer for the plaintiff.
Graphic graphic: UK Office of Govt Commerce's new logo - Boing Boing: "Seen here is the new logo for the UK Office of Government Commerce. Tilt your head to the left and look at it again"
BLDGBLOG: Hotels in the Afterlife
Vienna's excellent Architekturzentrum will be hosting a new photography show, opening this Wednesday, April 24, called Sinai Hotels.
With images by Sabine Haubitz and Stefanie Zoche of Haubitz+Zoche, the show looks at "the concrete skeletons of five-star hotel complexes" abandoned on Egypt's Sinai Peninsula.
They are resorts that never quite happened, then, with names like Sultan's Palace and the Magic Life Imperial. This makes them "monuments to failed investment."
Global Voices Online » Japan: Where has all the butter gone?
Where is the butter? — cry Japanese consumers who have been hunting everywhere for the dairy product. The drastic reduction in raw milk production, complicated by hikes in the price of grain as well as changes in the global patterns of dairy product consumption, have caused a serious butter shortage in Japan. Empty shelves in the dairy section of grocery stores across the country have not seen a shipment of butter for days, and stores are posting signs apologizing for the shortage.
An empty shelf at a grocery store with a sign explaining that the management does not know when the next shipment of butter will come.
Modern Slavery In Florida? | PEEK | AlterNet
Bernie Sanders (D-Vt.) sat alone at an otherwise empty dais during today's Senate hearing on Immokalee tomato pickers, asking questions he already knew the answers to.
For months, Sanders has campaigned alongside workers to expose exploitation in Florida's tomato fields, where migrant laborers toil for a meager 45 cents for every 32-pound bucket of tomatoes they harvest and haul--a wage rate that, adjusted for inflation, has decreased by 75% over the past 30 years. Yet today even Sanders, once again hearing the extent of abuses in the fields, seemed hard-pressed to keep an expression of incredulity off his face. The Coalition of Immokalee Workers' Lucas Benitez testified about seven-day workweeks, debt bondage, and armed crew bosses that beat workers who attempt to leave. Eric Schlosser--who's written extensively about farm-labor sweatshops but describes conditions as such that nevertheless "defy words"--spoke of a culture of exploitation that allowed Abel Cuello, a man convicted in 1999 for enslaving at least 30 migrants in Florida and South Carolina, to readily find work again upon leaving prison with Ag-Mart Produce, one of Florida's largest tomato growers.
After listening to the witnesses, Sanders continued to duly interrogate them. But what questions could he really ask? The issue the hearing highlighted--tomato pickers' wages--could hardly be more unambiguous.
The back story is simple: In 2005, Taco Bell--dogged by a four-year consumer boycott led by CIW--agreed to pay an extra penny per pound for tomatoes it purchased. A small pittance for Taco Bell to give up, but the victory was real, granting workers their first significant pay raise in decades. And last year, those gains were solidified when McDonald's signed onto the agreement as well, alongside Pizza Hut and KFC.
But in November, the Florida Tomato Growers Exchange--which represents 90 percent of the state's growers--stepped in. Not only did they reject the agreement, but they also threatened a $100,000 fine against any grower who accepted extra payment for migrant wages. There's no reason for this, since the agreement doesn't actually cost growers. But as one grower explained his opposition to such worker concessions (and Benitez shared before the committee), "A tractor doesn't tell the farmer how to run the farm." Likewise in questioning today, FTGE's Reggie Brown maintained the tomato growers' line, declaring that he'd never heard of abuses like those his co-panelists (including a detective from the local county sheriff's office) described.
There were few cameras at today's hearing, and few of Sanders' colleagues, either. But of course, the real action Sanders and the Immokalee workers hope for couldn't happen in the hearing. Rather, theirs is the hope that the Southern Poverty Law Center's Mary Bauer expressed in her testimony: "I do not believe American people would be silent if they knew how their food was being produced." Or members of Congress, either.
Te-Ping Chen writes for The Nation.
Editor's Note: This post originally appeared on AlterNet's blog, PEEK.
For years, we've been financing our consumption with debt, offshoring our manufacturing base and living large -- at least some of us -- off of one speculative bubble after the next.
We can talk about stagnant wages and how dramatically inequality has increased, but that frames it passively, as a sort of natural phenomenon. But that obscures the fact that it's been an active process, with the wealthiest Americans gaming the system for a bigger piece of the pie at everyone else's expense. Meanwhile, we've been investing bupkis in our future, expecting, perhaps, to remain on the top through nothing more than raw American exceptionalism.
It's a model that was never sustainable. As the GAO once put the obvious, famously, "By definition, what is unsustainable will not be sustained." And it appears we're paying the piper, although nobody knows how much the bill will be, exactly.
A few signals of what's shaping up to be quite a crisis ...
According to the New York Sun:
Many parts of America, long considered the breadbasket of the world, are now confronting a once unthinkable phenomenon: food rationing.
Major retailers in New York, in areas of New England, and on the West Coast are limiting purchases of flour, rice, and cooking oil as demand outstrips supply. There are also anecdotal reports that some consumers are hoarding grain stocks.
The $20 hourly wage, introduced on a huge scale in the middle of the last century, allowed masses of Americans with no more than a high school education to rise to the middle class. It was a marker, of sorts, but it is becoming extinct.
Americans greeted the loss with anger and protest when it first began to happen in big numbers in the late 1970s, particularly in the steel industry in western Pennsylvania. But as layoffs persisted, in Pennsylvania and across the country, through the '80s and '90s and right up to today, the protests subsided and acquiescence set in.
The high point came in the 1970s, just as the United States was beginning to lose its controlling grip on the economies of the non-communist world. Since then the percentage of people earning at least $20 an hour has eroded in every sector of the economy, falling last year to 18 percent of all hourly workers from 23 percent in 1979 - a gradual unwinding of the post-World War II gains.
The decline is greatest in manufacturing, where only 1.9 million hourly workers still earn that much. That is down nearly 60 percent since 1979, the Bureau of Labor Statistics reports.
The shrinkage is sometimes quite open. The Big Three automakers are buying out more than 25,000 employees who earn above $20 an hour, replacing many with new hires tied to a "second tier" wage scale that never quite reaches $20. A similar buyout last year removed 80,000 autoworkers. Many were not replaced, but many were, with the new hires paid at the non-middle-class scale, and with fewer benefits.
Wages are stagnant while food prices are skyrocketing and oil is at an all-time high of $118 a barrel. I don't know about you, but I lead a pretty humble life, and I'm having a harder time making ends meet right now than I was a few short years ago.
The longer-term effects of the systematic dismantling of the New Deal are becoming evident as well. As I wrote last year ...
America's core infrastructure has been falling apart in very visible ways during the past few years. It's a predictable outcome of the rise of "backlash" conservatism; we've swallowed 30 years of small-government rhetoric, and it's led us to a point in which our infrastructure, once the pride of the developed world, is falling apart around us. We're reaping what we've sown.
It's all part of a larger picture. We have a crumbling power grid and are falling behind the rest of the world in broadband infrastructure. The American Society of Civil Engineers (ASCE) talks of "congested highways, overflowing sewers and corroding bridges" that are "constant reminders of the looming crisis that jeopardizes our nation's prosperity and our quality of life." Every year the engineering society issues a report card grading 15 categories of America's once-premier infrastructure. In 2005, that "core" infrastructure collectively got a "D-," slightly worse than the "D" it received in 2000.
As a nation, our physical health appears to be declining as well. We were once the tallest people in the world, but citizens of all the social democracies have been out-growing us, on average, and we now have the shortest average stature among all the countries with highly advanced economies.
The latest news on this front comes via the Washington Post:
For the first time since the Spanish influenza of 1918, life expectancy is falling for a significant number of American women.
In nearly 1,000 counties that together are home to about 12 percent of the nation's women, life expectancy is now shorter than it was in the early 1980s, according to a study published today.
"I think this is a harbinger. This is not going to be isolated to this set of counties, is my guess," said Christopher J.L. Murray, a physician and epidemiologist at the University of Washington who led the study. It is being published in PLoS Medicine, an open-access journal of the Public Library of Science.
The study found a smaller decline, in far fewer places, in the life expectancy of men in this country. In all, longevity is declining for about 4 percent of males.
The phenomenon appears to be not only new but distinctly American.
"If you look in Western Europe, Australia, Japan, New Zealand, we don't see this," Murray said.
The authors attribute much of this to increases in smoking-related illnesses, obesity and their sequelae, including diabetes and kidney failure. All preventable diseases, but we don't do prevention well. Our bottom-line-driven health care system is geared towards treating diseases once they spring up as opposed to keeping people healthy in the first place.
Recently PBS ran a doc called "Unnatural Causes: Is Inequality Making Us Sick?" According to producer Larry Adelman, "a growing body of evidence suggests there is much more to our health than bad habits, our meds or unlucky genes."
The social, physical and economic environments in which we are born, live and work can actually get under our skin as surely as germs and viruses. Because these conditions are distributed unequally--in the jobs we do, the wealth we enjoy, the schools we attend, the neighborhoods we inhabit, the power we have to manage our lives--so are our patterns of health and disease, particularly stroke, heart disease, asthma, hypertension, diabetes, kidney disease and even some cancers.
All of this is a snapshot of the big picture, but nobody really knows where we're really headed. A couple of years ago, economist Dean Baker told me that he could see average incomes falling by as much as 40 percent as the housing bubble bursts.
I sincerely hope I'm being an alarmist here, but it's not unrealistic to be worried and there's little reason to have a lot of faith in our political leaders' ability to come up with a new and sustainable economic paradigm, as it's becoming clear we must do sooner or later.
****
PS: if you haven't signed up for my Corporate Accountability and Workplace newsletter, you really should. Last week, I sent out 10 stories, half of which hadn't appeared on the front page. If you're not digging into the special coverage areas -- all of them -- then you're missing out on a lot of content. Sign up now, and stop missing out!
Joshua Holland is an editor and senior writer at AlterNet.
How the Right Hijacked America's Economic Model | Corporate Accountability and WorkPlace | AlterNet
Communist revolutionary Che Guevara rapidly became an inspirational figure for revolutionary socialist change after his execution in Bolivia in 1967. Forty years later, Che lives on but his image now adorns t-shirts that have become popular fashion statements. This transformation reflects the extraordinary power of markets to capture and transform, turning an avowed enemy of the market system into a profit opportunity.
The process of capture also holds for economic policy, which has witnessed the conservative capture of Keynesianism. This capture is now on display as U.S. policymakers struggle to contain the effects of a collapsing house price bubble that was recklessly funded by Wall Street. The sting is that the full powers of Keynesian policies are being invoked to save an economy that no longer generates Keynesian outcomes of full employment and shared prosperity.
The political economic philosophy of Keynesianism emerged after World War II following the catastrophic experience of the Great Depression. The new paradigm advocated an economy with full employment and shared prosperity, and gave government the critical role of regulating markets and adjusting monetary and fiscal policy to ensure levels of demand sufficient to generate full employment.
These Keynesian tools are now being applied forcefully. The Federal Reserve has dramatically cut its interest rate target in response to financial sector weakness. Its goal has been to shore up asset prices, prevent further financial losses, lower mortgage rates to make houses more affordable and prevent further defaults, and to stimulate spending by lowering the cost of capital. Moreover, the Fed has done this despite consumer price inflation being above four percent.
Simultaneously, the Bush administration has pushed for fiscal stimulus, albeit with its usual preference for tax cuts benefiting business and the rich that deliver little bang for buck. The Democratically controlled Congress has also gotten in on the act with stimulus packages that are better designed, but still contain plenty of expensive and relatively ineffective tax cuts.
On one level, policymakers are absolutely right taking these measures, as the costs of a financial and economic meltdown are so large. But true Keynesian policy would also address the failure to generate full employment and shared prosperity. The current U.S. economic expansion looks like being the first ever in which median household income fails to recover its previous peak. Job growth has been tepid for much of the time, and the employment-to-population ratio has remained well below its previous peak. This dismal experience comes on top of three decades of wage stagnation during which household income only grew because of longer working hours and having both household heads work.
The capture of Keynesianism has been a gradual process. In the 1950s military Keynesianism became the hallmark of American policy, with defense spending becoming a huge and permanent component of government spending, to the benefit of the war industry. President Reagan continued the process of capture, pushing rhetoric and policies that undermined working families while simultaneously running budget deficits that kept the lid on unemployment. In the last recession of 2001, the Bush administration again invoked Keynesian stimulus for tax cuts that contained minimal stimulus and were closer to looting of government finances.
In 1971 President Nixon famously declared "We are all Keynesians now." Nixon was half-right. Everyone recognizes the need and efficacy of Keynesian policy instruments, including conservatives who are happy to promote tax cuts and interest rate reductions to support asset prices. However, most have forgotten the Keynesian goals of full employment and shared prosperity.
The result is Keynesian policy instruments remain, but Keynesian policy goals have been abandoned. Both Democrats and Republicans are quick to push for Keynesian stimulus policies when financial stability is threatened, but most (including too many Democrats) are silent when the economy fails to deliver shared prosperity.
Keynesian full employment stimulus policies must be accompanied by Keynesian structural policies that ensure wages grow with productivity, thereby ensuring sustainable demand growth. These structural policies include labor and social insurance laws supportive of unions and worker bargaining power, and international economic policies that prevent inappropriate competition and unsustainable trade deficits. The conservative capture of Keynesianism has both obliterated these structural policies and put a brake on reaching for full employment.
Thomas Palley is the founder of the Economics for Democratic & Open Societies Project. Read more of his work at www.thomaspalley.com.
Case Studies: Fat-Cat CEOs' Short-Sightedness Fueled Mortgage Crisis | Corporate Accountability and WorkPlace | AlterNet: "But they're getting their pay-days nonetheless, while more and more families are getting the boot."
Millions of American families are losing their homes through foreclosures -- and the financial turmoil set off by the collapse of the mortgage market could total nearly $1 trillion, according to the International Monetary Fund. Meanwhile, CEOs of companies at the center of the crisis are walking away with big pay.
According to the AFL-CIO 2008 Executive PayWatch, the CEO of a Standard & Poor's 500 company made, on average, $14.2 million in total compensation in 2007, according to early estimates. In comparison, the median pay for workers rose only 3.5 percent, to $36,140 in 2007, from $34,892 the previous year, according to the U.S. Bureau of Labor Statistics.
This year, PayWatch features case studies of CEOs whose push for short-term financial gains helped spawn the mortgage crisis. The case studies highlight the need for reform to protect companies and their investors -- and the PayWatch site makes it easy for users to contact members of Congress to urge new rules on mortgage protection and executive pay.
What makes the excessive pay for the CEOs of mortgage-related companies so egregious is that for many Americans, their home is their most valuable asset and an important source of financial security for their retirement. And for a growing number of working families, the American Dream of homeownership has become a nightmare. American workers are being hit by a double-whammy as they lose not only their homes, but also their retirement savings, as pension funds bear the brunt of overwhelming losses faced by financial institutions.
Excessive CEO pay takes money out of the pockets of shareholders -- including the retirement savings of America's working families. Moreover, a poorly designed executive compensation package can reward decisions that are not in the long-term interests of a company, its shareholders and employees.
Among the PayWatch case studies is that of Angelo Mozilo, chairman and CEO of Countrywide Financial Corp., the nation's largest mortgage company. After a consultant said his pay package was too large, Mozilo brought in another consultant to renegotiate his package in 2006.
In an e-mail message, Mozilo complained to John England of Towers Perrin, who helped redo his pay package: "Boards have been placed under enormous pressure by the left-wing anti-business press and the envious leaders of unions and other so-called 'C.E.O. Comp Watchers.'"
Mozilo's renegotiated contract with Countrywide included an annual salary of $1.9 million, an incentive bonus of between $4 million and $10 million and fringe benefits, as well as $37.5 million in severance benefits. After the mortgage market collapsed, public pressure forced Mozilo to give up the severance package.
In seven case studies, including Mozilo, PayWatch shows the strong need for new laws to reign in CEO pay and to tie pay to real performance:
James Parks writes for the AFL-CIO news blog, http://blog.aflcio.org.
Just How Secure Is Your Employer-Based Health Insurance? | Health and Wellness | AlterNet: "Many workers believe that if they keep their job, their insurance is safe. That may have been true in the '90s, but not now, not even for top execs."
Andrea Mitchell made a feeble attempt to cut through John McCain's doublespeak.
MITCHELL: You know, you've added up and you talked about some $300 billion in savings -- pork barrel savings. Independent experts say that your tax cuts would cost at least $100 billion more than you say and that the savings would not materialize. You know, we've seen over decades...
MCCAIN: I disagree with the experts. I disagree. I disagree. I disagree with the experts.
MITCHELL: Well, let's say that there is a pork...
MCCAIN: I have experts of my own. I have many experts of my own who say that this will stimulate the economy, will create jobs and increase revenues over time.
And that's what we did in 1980 -- Ronald Reagan did when he came to office in 1981. We reduced taxes, we reduced regulation and we controlled spending.
MITCHELL: But it did bust the deficit.
MCCAIN: And a key part of this is controlling spending.
MITCHELL: I mean, you are a deficit hawk.
MSNBC Live, April 16, 2008
John McCain is a "deficit hawk"? These days, that's about as accurate as saying Donald Trump is homeless. Let's cut through the nonsense and talk about real numbers.
Numbers tell a story. Especially over time. They compel us to focus on results -- success and failure. Over the short term, maybe a few years, numbers can be manipulated or give false signals. But not over decades, and not over a generation. The numbers over the past 30 years are not refutable. When it comes to creating jobs and managing the nation's finances, Democratic presidents demonstrate success while Republican presidents show failure.
Job Creation
Jimmy Carter, 1977-1980: 10.5 million new jobs
Bill Clinton, 1993-1996: 11.6 million new jobs
Bill Clinton, 1997-2000: 12.4 million new jobs
Total: 33.6 million jobs created over 12 years, or 2.8 million jobs per year
Ronald Reagan 1981-1984: 5.2 million new jobs
Ronald Reagan 1985-1988: 10.8 million new jobs
George H.W. Bush 1989-1992: 2.6 million new jobs
George W. Bush 2001-2004: 0.2 million fewer jobs
George W. Bush 2005-2007: 5.5 million new jobs
Total: 24 million jobs created over 19 years, or 1.3 million jobs per year
Government Spending
How much did the government spend for every dollar of revenue?
Jimmy Carter, 1977-1980: $ 1.16
Bill Clinton, 1993-1996: $1.25
Bill Clinton, 1997-2000: $1.01
Democratic Average: $1.16
Ronald Reagan 1981-1984: $1.31
Ronald Reagan 1985-1988: $1.38
George H.W. Bush 1989-1992: $1.34
George W. Bush 2001-2004: $1.27
George W. Bush 2005-2007: $1.24
Republican Average: $1.29
The difference between $1.16 and $1.29 may not seem like a lot, but the impact on the national debt is huge, especially when you consider that $1.29 applies to 19 years, and the budgets under this president are so much larger.
Increases in Government Debt
Growth In Debt Held By the Public [$US trillions]
Jimmy Carter, 1977-1980: 0.2
Bill Clinton, 1993-1996: 0.7
Bill Clinton, 1997-2000: -0.3
Democratic Total: 0.6
Ronald Reagan 1981-1984: 0.6
Ronald Reagan 1985-1988: 0.7
George H.W. Bush 1989-1992: 0.9
George W. Bush 2001-2004: 0.9
George W. Bush 2005-2007: 1.1
Republican Total: 4.3
The financial markets only pay attention to the amount of debt held by the public. This is the number that helps drive down the value of the dollar and makes bankers nervous about inflation down the road.
Growth of Debt Held By "Government Accounts" [$US trillions]
Jimmy Carter, 1977-1980: 0.00
Bill Clinton, 1993-1996: 0.4
Bill Clinton, 1997-2000: 0.8
Democratic Total: 1.3
Ronald Reagan 1981-1984: 0.1
Ronald Reagan 1985-1988: 0.3
George H.W. Bush 1989-1992: 0.5
George W. Bush 2001-2004: 0.8
George W. Bush 2005-2007: 1.4
Republican Total: 3.0
Debt held in government accounts is very much a misnomer. Debt, in the real world, is a fixed obligation to make a payment on a specific date. Not so for debt held in government accounts, according to this White House.
The Bush administration opposes including Social Security and Medicare in the audited deficit. Its reason: Congress can cancel or cut the retirement programs at any time, so they should not be considered a government liability for accounting purposes." USA Today, August 3, 2006
This subject warrants a separate article, but, there, in a nutshell, is the basis for the Republicans' "Social Security Reform."
In very simple terms, what happens is that the money contributed by everyone into Social Security, intended to build up a surplus to fund the baby boomers' nest egg for their retirement years, is actually used to reduce the government's reported deficit. Is it a huge scam? You bet. President Clinton, anticipating the problem, proposed some kind of undefined "lockbox" to prevent the pillaging of the Social Security surplus that's taken place under the current White House. Of course, the Republicans shot that down.
Anyone who speaks of a crisis in Social Security is really talking about a problem that can be laid at the Republicans' doorstep. It's not class warfare, just simple arithmetic.
Sources:
Job Creation: Bureau of Labor Statistics Seasonally adjusted nonfarm payrolls, calculated on calendar years
Government Spending: OMB, On-Budget Outlays divided by On-Budget Revenues
Increases in Government Debt: OMB
David Fiderer, a former banker, writes about corporate and political corruption.
Charlie Gibson, ABC and Zombie Lies About Capital Gains Taxes | MediaCulture | AlterNet: "A zombie lie is one that never dies, no matter how many stakes are driven through its heart."
Despite the confident questions of anchorman Charles Gibson on ABC, capital gains tax cuts are not magic. Over time, cuts in taxes on profits made by investing do not raise total tax revenues. Gibson insisted in his questioning of Barack Obama that they did, and conversely that cuts in capital gains tax rates result in more federal tax revenues. Obama hedged. He should have known the answer: balderdash. Only in the short run do tax revenues rise.
But not only that. George Will condescendingly reiterated the assertion on This Week with George Stephanopoulos Sunday morning and his colleagues did not challenge him. This even after the web was filled with expert corrections of the Gibson claim by Friday: the Washington Post campaign fact checker, The New Republic, and Dean Baker in the American Prospect, to name the few I saw.
When capital gains tax rates are cut, those who are holding profits in stocks will often sell to take short-term advantage. In the first couple of years after the cut, tax revenues may go up. But the long-term effect is the opposite. The Congressional Budget Office agrees that the likely effect over time is lost revenues from tax cuts. So do the Treasury and the Joint Tax Committee of Congress; they simply forecast that that tax revenues rise over time with higher capital gains taxes. Those who claim otherwise are conservative think tanks and a handful of business lobbying organizations who have lost their capacity for objectivity.
Here's a good example of how the argument is distorted. The 1987 Tax Reform Act boosted capital gains tax rates, and capital gains tax collections fell that year. Proof of the pudding, I suppose Will would argue. But why did they rise? Because people sold their stocks the year before in anticipation of the increase in rates. In 1986, tax revenues increased a lot.
The advocates of capital gains tax cuts love to cite the 1997 cut in rates from 28% to 20%. Capital gains revenues went up because people were induced to sell in the short run. But does anyone plausibly believe the wild stock market boom of the late 1990s, which led to further capital gains tax receipts, was a consequence of the rate cut when a high-technology revolution was underway, productivity was taking off, Alan Greenspan had sharply loosened monetary policy, and a speculative bubble was soon to explode?
In fact, capital gains tax revenues fell sharply after the stock market bust in 2000. Then Bush engineered another capital gains tax cut, now from 20 percent to 15 percent in 2003. Yet capital gains tax revenues, adjusted for inflation, have not nearly reached their highs of 2000, despite the 25 percent (5 percentage point) cut in rates. Capital gains tax cuts are no elixir. And the extent capital gains depend on many factors. To isolate it to the tax rate is highly irresponsible economics.
One final point, even Harvard economist and former chief Bush economist Gregory Mankiw has written that such tax cuts do not result over time in higher revenues. In sum, here's the CBO on the issue: "Rising gains receipts in response to a rate cut are most likely to occur in the short run. Postponing or advancing realizations by a year is relatively easy compared with doing so over much longer periods."
It's easy to postpone stock and other investment sales until the time is propitious. But over the long run, tax revenues are lost by the lower rates. People must sell at some point and pay the higher taxes. And the federal government would have more money to pay the bills.
Jeff Madrick is director of policy research, Schwartz Center for Economic Policy Analysis, The New School, and editor of the long-standing economics magazine, Challenge.
Foreclosures to affect 6.5 mln loans by 2012-report | Markets | Bonds News | Reuters
NEW YORK, April 22 (Reuters) - Falling U.S. home prices and a lack of available credit may result in foreclosures on 6.5 million loans by the end of 2012, according to a Credit Suisse research report on Tuesday.
The foreclosures could put 12.7 percent of all residential borrowers out of their homes, Credit Suisse analysts, led by Rod Dubitsky, said in the report. That compares with a foreclosure rate of 2.04 percent in the last quarter of 2007, they said, citing Mortgage Bankers Association data.
The new forecast includes 2.7 million subprime loans whose risky characteristics sparked the worst housing market since the Great Depression. Subprime foreclosures, on top of the 676,000 already in or through the process, will hit 1.39 million in the next two years alone, an upward revision from the 730,000 predicted by Credit Suisse in October.
Falling home prices have made an increasing number of U.S. homeowners more vulnerable to default, they said. Nearly a third of subprime borrowers owed more than their home was worth at the end of last year, and that figure will double to 63 percent in 2009, they said.
The shutdown of mortgage bond markets that financed many risky borrowers during the housing boom has also made it harder to refinance into affordable loans, they added.
"These factors, coupled with snowballing negative psychology, are contributing to a rapid rise in foreclosures," the analysts said.
Credit Suisse expects home prices will fall by 10 percent in 2008 and 5 percent in 2009, before rebounding.
Plans by lenders and lawmakers to curb foreclosures must be aimed at reversing price declines to be successful, they said. A public-private partnership to purchase delinquent loans at a discount could help set a floor in home prices, they said. (Reporting by Al Yoon; Editing by Neil Stempleman)
This has commercials and is unedited. Each link is 1 hr of show. Approx 41 megs each.
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WallStreetFighter: Rice Riot Fears Hit the U.S.
Why are you wasting valuable time at home? You need to go out and get some rice before it's all gone!
Over the past few months, the rising cost of rice around the world has caused hoarding and riots to break out throughout Asia.
Come on, I can understand Montreal Canadiens's fans rioting in the streets after an unimpressive first-round NHL playoff win, but starving people wanting rice? Now, you're just pulling my leg.
It's true though, and in an ironic response to the very excesses they profit from, Sam's Club and Costco were the first to sound the alarm here on the home front. These discount warehouse stores are now limiting sales to 4 bags of rice per person per visit. Both stores have also seen increased demand for flour and oil, but as yet, have not imposed limits on those items.
In another ironic twist, this all comes the day after Earth Day. Many analysts claim that the newfound interest in 'going green' and being 'eco-friendly' has inadvertently caused the rice shortages. As global food trends change to accommodate the demand for more food being used as alternative fuels, less people will have the food to eat. Also, the major drought in Australia has added to rice shortage problems.
Similar to a stock sell-off or a bank-run, when people get worried something will run out, they go out and buy more than they need of it, causing even greater supply problem. According to an article from The Times Online things are particularly troubling in the Philippines: Any farmer in the Philippines caught hoarding rice risks spending the rest of his life in jail for the crime of “economic sabotage”.
Scary stuff. But I don't think most Americans realize how important rice is in these countries. There are 3 billion people in the world who rely on solely rice as a staple food. In both Thailand and the Philippines there has been a 40% increase in the price of rice since January. That's kind of like increasing the cost of sunshine in Florida by 40%. Or the price of a subway fare in New York City by 40%. Or even worse, increasing the price of the pleasure derived from quiet conversation and rustic landscapes in Montana.
But seriously, has anyone noticed any grain hoarding or increased lines at Costco recently?
The Times Online: Fears of rice riots as demand as surge in demand hits nations across the Far East, April 8, 2008
Reuters: Sam's Club limiting sales of rice, April 23, 2008
Natalie Bancroft on Dow Jones Board - Executive Articles - Portfolio.com: "The new (and only) woman on Rupert Murdoch's board is a 27-year-old fledgling opera diva. Murdoch may have gotten more than he bargained for."
Google-Backed Solar Startup Picks Up Steam, $130 Million: "For proof, look no further than the fat $130 million investment scooped up by eSolar, a company whose basic solar power strategy -- using sunlight-reflecting mirrors to generate steam -- was all but abandoned in the 1980s, and has recently recently caught investors' attention again."
When Positive Thinking Leads To Financial Irresponsibility Like Compulsive Gambling: "Looking on the bright side can lead to irresponsible financial behavior, reveals an article in the Journal of Consumer Research. In a series of studies, Elizabeth Cowley (University of Sydney) examines repeat gambling in the face of loss. She finds that people often engage in too much positive thinking, selectively focusing on one win among hundreds of losses when they think back on the overall experience."
On Thursday 4/10, Artie losses it on Teddy, Robin needs windshield wipers for her booth... Still think its a bit?
http://i25.tinypic.com/23wofhh.jpg
http://rapidshare.com/files/109528445/Artie.Quits.Again.XviD-AllzLoZT.part1.rar
http://rapidshare.com/files/109524537/Artie.Quits.Again.XviD-AllzLoZT.part2.rar
http://rapidshare.com/files/109520715/Artie.Quits.Again.XviD-AllzLoZT.part3.rar
http://rapidshare.com/files/109516991/Artie.Quits.Again.XviD-AllzLoZT.part4.rar
http://rapidshare.com/files/109512757/Artie.Quits.Again.XviD-AllzLoZT.part5.rar
Howard Stern - Various H100/H101 Shows - 4/22/08
and other Misc clips, uploads, etc
Jackie's Joke Hunt http://rapidshare.com/files/109684182/JACKIE-04.22.2008-96k.mp3
Greg Fitzsimmons http://rapidshare.com/files/109589585/GFS_04-22-08_CF64K.mp3
Ferrall http://rapidshare.com/files/109588496/2008-04-21-Ferrall_32K.mp3
Superfan (special edition) http://rapidshare.com/files/109586463/SFR_04-21-08_CF64K_Special.mp3
Miserable Men http://rapidshare.com/files/109585254/Miserable_Men.128k.CF.04-20-08.mp3
* Benjy's Disturbing Behavior. 04/23/08. 6:00am
* Howard Masturbating While Beth Is Away. 04/23/08. 6:10am
* Artie And Teddy Stories. 04/23/08. 6:20am
* Robin's Norma Kamali Dress Only $265. 04/23/08. 6:35am
* Robin's Craziness Rated. 04/23/08. 6:45am
* Artie Still Eating Tons Of Junk, Clogging Toilets. 04/23/08. 7:00am
* Lisa G's Howard 100 News Preview. 04/23/08. 7:25am
* An Old, Grey, Fat Mark Harris Visits. 04/23/08. 7:35am
* Stone Temple Pilots Singer Scott Weiland Calls In. 04/23/08. 8:15am
* Our Unpopular President. 04/23/08. 8:40am
* Tipping Stories. 04/23/08. 8:45am
* Comedian, And Egg Burned, Nick DiPaolo Visits. 04/23/08. 8:55am
* Howard Meets The Latest Miss Howard TV. 04/23/08. 9:15am
* Howard 100 News And Wrap Up Show Previews. 04/23/08. 9:35am
* Robin's News. 04/23/08. 9:50am
* Stuttering John Interview Audio Clips. 04/23/08. 10:05am
* More News, Eric The Midget Actor And More. 04/23/08. 10:25am
* Wrap Up Show - Mark Harris Discussions. 04/23/08. 11:00am
* Wrap Up Show - Benjy Discussions. 04/23/08. 11:05am
* Wrap Up Show - Robin's Crazy Stuff, Tipping And More. 04/23/08. 11:15am
* Wrap Up Show - Scott Weiland Discussions. 04/23/08. 11:30am
* Wrap Up Show - Nick DiPaolo Interview Discussions. 04/23/08. 11:35am
96k nCF morning wood:
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24k nCF morning wood:
This has commercials and is unedited. Each link is 1 hr of show.
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http://rapidshare.com/files/109839880/HSRS-04-23-08-56k.part1.rar
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An Uncomfortable Shareholder’s Meeting for Citigroup - New York Times: "Citigroup’s directors have been re-elected, but they were shelled with criticism at Tuesday’s annual meeting of shareholders, whose stock in the bank has lost half its value since they convened a year ago."
Another Big Media Deal for Murdoch
Rupert Murdoch is moving to tighten his already-imposing grip on American news media, striking a tentative agreement to buy his third New York-based paper, Newsday, from Tribune Company for $580 million. The deal would likely pose the first significant challenge to the media ownership rule that the Federal Communications Commission recently adopted.
His bid for Newsday is vintage Rupert Murdoch, a man who operates News Corporation like an old-style media mogul, making big bets on old and new media -- bankrolling the new Fox Business Network, aggressively pursuing a deal for Yahoo, and buying Dow Jones for far more than analysts thought it was worth. And that was just in the last year.
But the agreement is far from final as competing bidders consider their positions.
Mortimer B. Zuckerman, owner of The Daily News, the archrival of The Post, will make a counteroffer next week, according to The New York Times, which cited people involved in the bidding. Representatives of another bidder, the Observer Media Group, publisher of The New York Observer, plan to meet in a few days with Cablevision -- which had dropped out of the bidding -- to discuss a joint offer, The Times said.
Go to Article from The New York Times»
Go to Article from The New York Times»
Government Employees Could Be Fired For A Hobby | PEEK | AlterNet
Federal employees could be fired for blogging about politics with their personal computers, on their own time, Stephen Barr reports:
Blogging about politics at work falls into the don't-do category, but
blogging from home may also get a federal employee in trouble.
Presidential campaign Web sites, for example, encourage supporters
to create blogs on the site to advocate the candidate's positions. They
also usually carry a link for campaign donations, and that can be
trouble for a federal employee, even when using a home computer. The
OSC may view the donate button as soliciting for political
contributions, another no-no under the Hatch Act, and set off an
investigation. [WaPo]
This passage is part of a longer story about how the Office of Special Counsel (OSC) has decided crack down on political activities of federal employees in advance of the election.
The Hatch Act restricts the political activities of federal, state, and local government officials. The rules are very complicated. Presidential employees confirmed by the senate can even engage in political activities on government time, in government facilities, as long as these aren't paid for with government money. However, appointees must not compel their subordinates to play along.
Since the beginning of the Bush administration, the definition of electioneering has been very narrowly indeed, at least when it comes to Republicans helping Republicans. Karl Rove was allowed to make the rounds of 20 federal agencies, delivering regular PowerPoint presentations about how bureaucrats could help get Republicans elected. This went on for years. In fairness the OSC did investigate some of these allegations, but neither Rove nor the senior government employees who participated in these briefings has been sanctioned.
The highest-profile targets for Hatch investigation, Rove, Ken Mehlman, and Scott Jennings, all resigned before any action was taken. Proximately, Jennings was a casualty of the U.S. Attorney scandal. It's not clear how much influence the Hatch Act investigations by OSC and Rep. Henry Waxman's Oversight Committee had on the timing of Rove's exit.
According to Barr's story, government employees could be fined, suspended, or even fired for blogging at home, on their own time if their blogging takes place on a website associated with a presidential candidate. (Public policy grad student Isaac explains that Barr is talking specifically about employees who blog using software sponsored by presidential campaigns, such as McCain MySpace or MyBarack Obama.)
The law hasn't caught up to new technologies. It's not clear whether government employees are allowed to "friend" a candidate on Facebook, or leave a partisan comment on someone else's blog from the privacy of their own homes. If the problem is links soliciting campaign contributions, what happens if a federal employee posts non-electioneering content in a diary at DailyKos or some other site that has electioneering ads and links?
I predict that petty and tangential Hatch Act investigations will be disproportionately directed at Democratic-leaning government employees in the run-up to the elections. (Barr notes that Hatch Act enforcements have been on the rise since 2000.)
This is an empirical question, and I hope that I'm wrong. Maybe close scrutiny during this period will deter Hatch Act abuse.
If you are a government employee of any political persuasion who has been investigated or disciplined for blogging about politics outside of work, please email me. I want to hear your story.
Lindsay Beyerstein a New York writer blogging at Majikthise.
Olbermann Asks Clinton About Scaife Alliance | Video | AlterNet
Strange bedfellows indeed. Slate has a full story on just how awful Scaife is and what exactly Scaife did to the Clinton's during their time in the White House.
McCain's Temper Should Be A Liability | PEEK | AlterNet
The WaPo is the latest media outlet to notice (or drag themselves reluctantly to finally cover) what McCain watchers have been saying about him forever: He's a full-tilt asshole got a temperament problem. It's the usual litany of ugly behavior, going back to when he was a kid, although it's worth a read just to get a feel for how reprehensibly vindictive McCain is, in addition to having a hair-trigger temper.
Just one quick comment: I thought it was pretty amusing that not once but twice, recounted incidents of McCain's altercations with fellow Republicans ended with the pathetically low benchmark at least he didn't punch anyone.
It is unclear precisely what issue set off McCain that day. But at some point, he mocked Grassley to his face and used a profanity to describe him. Grassley stood and, according to two participants at the meeting, told McCain, "I don't have to take this. I think you should apologize."As I've said before, are a lot of scary things about the possibility of a President McCain, but the fact that he could make Bush look like a model statesman has to be right at the tippy-top of the list. I cannot even begin to convey what a terrible idea a McCain presidency would be for this reason alone, not to mention all the others. If you think Bush was an embarrassment as a paradigm of diplomacy, McCain could conceivably be even worse.
McCain refused and stood to face Grassley. "There was some shouting and shoving between them, but no punches," recalls a spectator, who said that Nebraska Democrat Bob Kerrey helped break up the altercation.
...Reports recently surfaced of Rep. Rick Renzi, an Arizona Republican, taking offense when McCain called him "boy" once too often during a 2006 meeting, a story that McCain aides confirm while playing down its importance. "Renzi flared and he was prickly," McCain strategist Mark Salter said. "But there were no punches thrown or anything."
Melissa McEwan writes and edits the blog Shakespeare's Sister.
Is Wall Street 'Full of Bull'?: "A well-respected analyst for 32 years, Stephen McClellan describes how analysts' advice is biased and misleading for individual investors"
The Epicurean Dealmaker: The Scorpion and the Frog
Once upon a time, there was a frog which lived happily on the bank of a broad river. It was a good riverbank, with plenty of flies to eat and lots of nice, cool water in which to swim and dive. Life was good for the frog.
Then, one day, another frog which had heard of the nice river came and made his home just down the riverbank from the first frog. At first, the two frogs were cordial and polite. While they were not really friends, and they were natural competitors for the bugs and other food on the bank, there seemed to be plenty to go around, so they lived in peace with one another.
After a while, though, the riverbank began to change. The river itself became wilder, colder, and more dangerous. At the same time, the flies, which had been so plentiful, began to disappear. Soon, the two frogs began to fight over the few bugs and pockets of calm water that remained on the riverbank, and they became implacable enemies. They would fight and squabble every day, until they were gaunt and exhausted from stress and lack of food. There came a day when they could not even rouse themselves to fight over a stray dragonfly that was blown onto the riverbank by a passing storm.
That morning, as the first frog lay panting and starving in his little hole, a scorpion wandered down to the riverbank and struck up a conversation.
"Hello there, Mr. Frog. How are you this fine morning?"
The frog just grunted, so the scorpion continued: "I have heard that the other bank of this river," which was too far away for the frog to see, "is a veritable paradise of gentle pools, soft breezes, and fat, juicy bugs." The frog perked up a little at this.
"Unfortunately," the scorpion continued, "I cannot swim. Therefore, I am looking for a trusty frog to take me across the river on his back so I can enjoy this riverine nirvana. Would you by any chance be interested in taking me?"
The frog was sorely tempted by this offer, thinking that he would no longer have to share the slim pickings of his current home with the second frog. However, he noted the morning sun glinting on the sharp tip of the scorpion's stinger and gulped.
"But how am I to know that you would not stab me with your stinger once you are on my back and kill me, Mr. Scorpion?"
"Why, Mr. Frog, I am surprised at you. If I stung you while we were in the river, you would drown, and so would I. Remember, I cannot swim. I only thought you might find my proposal interesting," the scorpion sniffed, looking around at the frog's dismal hole, "since it looks like you could use a change of scenery yourself."
"But," he continued, "if you are not interested, I hear there is another frog just down the bank from here. Perhaps he would be agreeable to my proposition."
"Oh, no, no, no!," exclaimed the frog, brushing aside his qualms, "I would be delighted to carry you across the river."
"Excellent," replied the scorpion. "Since I will be on your back and able to see over the river's waves to the other bank, I will act as your pilot and navigator. And once we reach the other side, I will catch and kill twenty juicy flies for you in recompense for your generous assistance."
The frog was well pleased with this, so he and the scorpion set out immediately for the water's edge to make their crossing.
As soon as they arrived, however, the frog had a nasty shock. There, at the water's edge, was his frog neighbor and a second scorpion, apparently preparing to cross the river just as he and his companion were planning to do. Each frog became enraged at the thought that his deadly enemy would cross the river to froggy paradise, so they began bellowing at each other and girding for battle.
The two scorpions, however, who just wanted to get to the other side and who needed these silly frogs to carry them, intervened with their companions and attempted to calm them down.
"Gentlefrogs, gentlefrogs," the first scorpion exclaimed, "surely there is no need to fight about this. I have heard that there are bugs enough for all of us on the other side of the river. Besides, the opposite riverbank is much larger than this one, so you will each be able to live in peace and plenty without ever even having to catch sight of one another."
"This is true," asserted the second scorpion. "I have heard it as fact from a raven which told me the tale last week. Please do not fight, and let us all cooperate, to our mutual benefit."
The frogs, who were frankly too exhausted to make a good fight of it anyway, saw the wisdom in the scorpions' words and allowed themselves to be talked out of a battle. After a while, they even suggested that the scorpions tie one of each frog's hind legs to the other with some grass, in order to make a more stable platform for the scorpions to ride on and to make the burden of swimming the turbulent river more manageable for the tired frogs.
The four companions now prepared for their crossing. There next erupted a bit of a scuffle between the scorpions, when it became clear that they each expected to have the prestigious role of pilot to the expedition, rather than the less important one of navigator, but the tolerant frogs were able to restore peace with a promise that the scorpions could share both duties equally in the crossing. All was well once more, the little expedition pushed off the bank, and the frogs began swimming to the promised land with the scorpions on their backs.
Unfortunately, however, the sun soon sank below the opposite bank, as the four companions had already wasted much of the day in argument. In the dark, the frogs became lost, and the scorpions began to argue heatedly, each blaming the other for getting the flotilla lost and complaining vociferously that his rights and privileges had been trampled on by the other.
The scorpions soon came to blows. In striking at the other with his tail, one of the scorpions missed and accidentally stabbed one of the frogs in the back. In the dark and confusion, it was not clear who had struck the fatal blow or indeed which frog had been stung. Nevertheless, since both frogs were tied together at the leg, the paralyzed frog dragged the other—and both of the still-squabbling scorpions—down to the bottom of the cold, dark river, where they all perished.
Fortunately, however, there is a happy ending to this sad story. A big catfish later found the four companions floating on the riverbed and enjoyed a wholesome and delicious evening meal.
Which leads us to the moral of our story:
Only bottom-feeders will benefit from an airline merger.
Calculated Risk: UPS: "Dramatic slowing in the U.S. economy"
From the UPS conference call: (hat tip Brian)
Chief Executive Scott Davis:
UPS's first quarter results illustrate the dramatic slowing in the U.S. economy. At our investor conference on March 12th, we told you that volume growth in January had been up 3%. But in the six weeks prior to the conference, it had been negative. We also said if these trends persisted through March, we would not achieve the earnings guidance we had provided for the quarter. [The] trends did continue. Many have become sharply more negative in the last two months. ... The great unknowns are the severity and the duration of the current economic slowdown. Many of our customers have tightened their belts resulting in a shift away from our premium air products to ground shipments.Chief Financial Officer Kurt Kuehn:
emphasis added
These results reflected a noticeable tradedown in service levels from express to saver, saver to deferred, and deferred to ground. As customers worked hard to reduce their costs. Tradedown was evident across all customer sectors but was most prevalent in retail. This is a tell tale sign of a progressively worsening economic environment. In addition, the timing of Easter had a negative impact on average daily volume.CFO: UPS Cutting investment and spending:
As Scott mentioned, we have put an action plan in place to address the impact of economic slowing on our U.S. business. We will, one, use the expansiveness of our service portfolio to help our customers navigate through these challenging times. Two, exercise discipline with respect to investment, supporting only those projects that are essential. And three, remain diligent in managing variable and semi-variable costs. With regard to the last point, we have a number of initiatives in place. We are restricting hiring, except in the sales arena. We are stopping all non-critical projects. And limiting discretionary spending including business travel, relocations and consulting services.Outlook:
Turning now to our outlook for the second quarter and the rest of the year. At this point, we see no immediate signs of economic improvement. ... On the international front, cross border trade remains robust, despite pockets of economic slowing.Q&A on internation shipments:
Analyst: Soes the 12 to 15% goal for international, does that suggest that we're not going to see a slowdown in that arena or is that consistent with kind of a decoupling where the brunt of recession is felt here in the U.S. and not beyond.
UPS: We're seeing certainly changing trade flows and U.S. imports are slowing, but at the same time, U.S. exports are increasing. Asia to the U.S. is perhaps not as robust as it was but Asia to Europe remains robust.
The Stalwart: Take My Cows... Please!
orld helps explain what's putting downward pressure on cattle prices:
U.S. feedlots slashed purchases of young cattle 11 percent last month, more than expected, as costs for corn-based feed surged and losses widened.
Feedlots bought 1.736 million young animals in March, down from 1.96 million a year earlier, the U.S. Department of Agriculture said Friday in a report. The average estimate of 10 analysts surveyed by Bloomberg was for a 7.6 percent drop.
Basically, cows are a hot potato. Nobody wants to hold them, cause they're so darned expensive to fee d. Why pay to carry a cow, when you can get on the other side of that trade -- selling corn to the feedlots. Question is: what happens when everyone starts crowding the same trade?
Sam, a cattle rancher writes:
I find this as no surprise. What the hell do you expect them to do. This really worries me since I sell calves but there is nothing I can do about it except weather the storm. Like I've said before it wouldn't surprise me if you see cow-calf producers like me having to hold on to the calf longer and put more weight on it with grass so the feedlots don't have to put so much corn through them. I am looking at working that way in my operation. Time will tell
It's an age-old issue. Everyone wants someone else to carry the inventory for the longest period of time. The rancher wants to sell it to the feedlot, and the feedlot wants to sell it to the slaughterer. So with the damn heifers so expensive to feed, the quicker you can move them along, the better.
EcoCho Apparently Not Green Enough For Google
Google terminates advertising partnerships regularly based on fraud or consumer protection issues, or just because. They never comment publicly on any particular instance, but it’s usually pretty easy to guess.
The most recent example is EcoCho
a new search engine that says they donate part of revenue to carbon offsets. I made fun of them last week when they launched, since the exact connection between their revenue and the carbon offsets was rather vague (they say “up to two trees” will be sponsored for every 1,000 searches on the site, which has exactly no meaning whatsoever).
Google has terminated them, the company says. That leaves EcoCho with only Yahoo to provide search and advertising to the site. You may want to go try out the service before it shuts down, because this thing is doing a belly flop into the deadpool.
The Ozzie Memo: Software is Dead, Long Live the Web
After a few years of trying to fill Bill Gates’ shoes as Microsoft’s chief software architect, Ray Ozzie is starting to hit his stride. In a remarkable strategy memo to employees (embedded below), Ozzie essentially shifts Microsoft’s mission from one of creating software for the PC and stand-alone servers to creating an interconnecting mesh between devices and people. He is not abandoning Windows or Office, but he is saying that the value of Microsoft’s software will increasingly depend less on what it can do on its own than what it can do with others. It is not about software anymore so much as it is about Web-based services. Ray, welcome to the club.
Want goooooooooooooooooooooooooooooooooooogle.com? Too Late
Uptime monitoring service Pingdom has put together a list of thousands of .com domain names owned by Google, based on an analysis of the root zone file. They then verified the most interesting ones with WHOIS information. Does GoogleWarnerbros.com represent a future partnership, or a failed tryout? Googlereligion.com? Why not. Googlepoo.com? Sure.
The entire list is embedded below. Some of the more interesting ones:
* 30dayfitness.com
* bayareaburritos.com
* donationcard.com
* essentialmommy.com
* greengardengifts.com
* mariolovespasta.com
* thesecretofburritos.com
* goooooooooooooooooooooooooooooooooooogle.com
* google4kids.com
* googlebackups.com
* googleauction.com
* googlebroadband.com
* googlecasinogames.com
* googlefamily.com
* googlejokes.com
* googlelovers.com
* googlepersonals.com
* googlereligion.com
* googlefaith.com
* googlegym.com
* googledaycare.com
* bankgoogle.com
* googlepaperproducts.com
* googletimewarner.com
* ebay-google.com
* googlewarnerbros.com
* checkoutsucks.com
* dejastinks.com
* frooglesucks.com
* fuckengoogle.com
* gmailblows.com
* gmailsucks.com
* googlefools.com
* googlemotherfucker.com
* googlepoo.com
* googlesucks.com
* errorpageassist.com
* googlemonitoring.com
* googleclusters.com
* googlewebmonitoring.com
Concerns rising that Fannie and Freddie could need bailout - Apr. 21, 2008: "Although few are predicting an imminent need for a bailout just yet, credit rating agency Standard & Poor's recently placed an estimated price tag on this worst case scenario -- $420 billion to $1.1 trillion of taxpayer's money."
Bloggers on the NYT's latest McCain coverage. - By Michael Weiss - Slate Magazine: "Song remains the same: The New York Times has again challenged John McCain's ethical conduct as a senator. At issue this time is his decadeslong relationship with Arizona developer Donald Diamond, who has raised more than $250,000 on behalf of McCain's current presidential campaign. The Times reports, 'Mr. McCain has helped Mr. Diamond with matters as small as forwarding a complaint in a regulatory skirmish over the endangered pygmy owl, and as large as introducing legislation remapping public lands.'"
Disapproval of Bush breaks record - USATODAY.com: "WASHINGTON — President Bush has set a record he'd presumably prefer to avoid: the highest disapproval rating of any president in the 70-year history of the Gallup Poll."
If we are going to judge character by who doesn't wear a flag pin, can't we judge character of those who do -- in their mug shot? This is Larry Craig's mug shot and look at what he's wearing. Thanks to The Smoking Gun for the picture.
Eric Zorn is a very good columnist for the Chicago Tribune. He has the ability to catch things others in the MSM miss. But he wasn't the first one to focus on the hypocrisy of why the patriotism questions were focused on Obama and not Sen. Clinton (or Sen. McCain). (Here's a hint: It was BuzzFlash.)
From today's column in the Chicago Tribune:
The moderators never followed up with a flag-related question for Hillary Clinton, but I wish they had.
Not "why aren't you wearing a flag pin tonight, Sen. Clinton?" though that would have been appropriate because, like presumptive Republican nominee John McCain, Clinton often doesn't wear such a pin.
But: "I want to know if you believe in what the American flag stands for?"
BuzzFlash was first to point out that neither candidate had a flag pin on the night of the ABC debacle debate in Philadelphia.
We think the idea of flag pins being an important issue in the race is a huge distraction from the real problems afflicting voters in this country. But if we have to spend some time on this issue, let's be consistent. If Larry Craig wears one, we're not sure that helps the cause of wearing flag pins.
A Shanda, A Shame | Medical Practice Business Blog: "n Yiddish, the word “shanda” means “shame” or “scandal.”
Here’s the latest surprise. It seems that health insurers are creating a “Tier 4” to cover very expensive drugs. These drugs, according to an article in the New York Times, are typically for chronic diseases and are very expensive, costing thousands of dollars per month. Rather than paying $40-50 that a branded, newer drug might cost, insurers have taken certain very high cost drugs and put them in a new class by themselves, charging perhaps 25% of cost as the co-payment."
ESPN - Blue Jays release Thomas after slow start to 2008 season - MLB: "With a career average of .302, Thomas is one of four players in baseball history with at least a .300 average, 500 home runs, 1,500 RBIs, 1,000 runs and 1,500 walks. The others are Mel Ott, Babe Ruth and Ted Williams."
