By ELIOT SPITZER, FRANK PARTNOY and WILLIAM BLACK
Published: December 19, 2009
WE end this extraordinary financial year with news that the Treasury is in discussions with American International Group about selling the taxpayers’ 80 percent ownership stake in that company. The government recently permitted several banks to break free of its potential oversight by repaying loans made during the rescue. But with respect to A.I.G., the Treasury should not move so fast. There is one job left to do.
A.I.G. was at the center of the web of bad business judgments, opaque financial derivatives, failed economics and questionable political relationships that set off the economic cataclysm of the past two years. When A.I.G.’s financial products division collapsed — ultimately requiring a federal bailout of $180 billion — those who had been prospering from A.I.G.’s schemes scurried for taxpayer cover. Yet, more than a year after the rescue began, crucial questions remain unanswered. Who knew what, and when? Who benefited, and by exactly how much? Would A.I.G.’s counterparties have failed without taxpayer support?
The three of us, as experienced investigators and prosecutors of financial fraud, cannot answer these questions now. But we know where the answers are. They are in the trove of e-mail messages still backed up on A.I.G. servers, as well as in the key internal accounting documents and financial models generated by A.I.G. during the past decade. Before releasing its regulatory clutches, the government should insist that the company immediately make these materials public. By putting the evidence online, the government could establish a new form of “open source” investigation.
Once the documents are available for everyone to inspect, a thousand journalistic flowers can bloom, as reporters, victims and angry citizens have a chance to piece together the story. In past cases of financial fraud — from the complex swaps that Bankers Trust sold to Procter & Gamble in the early 1990s to the I.P.O. kickback schemes of the late 1990s to the fall of Enron — e-mail messages and internal documents became the central exhibits in our collective understanding of what happened, and why.
So far, prosecutors and regulators have been unable to build such evidence into anything resembling a persuasive case against any financial institution. Most recently, a jury acquitted Bear Stearns employees of fraud related to the collapse of the subprime mortgage market, in part because available e-mail messages suggested the employees had done nothing wrong.
Perhaps A.I.G.’s employees would also be judged not guilty. But we would like to see the record to find out. As fraud investigators, we would like to examine the trading patterns of A.I.G.’s financial products division, and its communications with Goldman Sachs and other bank counterparties who benefited from the bailout. We would like to understand whether the leaders of A.I.G. understood that they were approaching a financial Armageddon, and whether they alerted their counterparties, regulators and shareholders to the impending calamity.
We would like to see how A.I.G. was able to pay huge bonuses to its officers based on the short-term income they received from counterparties for selling guarantees that, lacking adequate loss reserves, the companies would never be able to honor. We would also like to know what regulators knew, and what they did with the information they had obtained.
Congress wants answers, too. This month, during hearings on Ben Bernanke’s nomination to a second term as chairman of the Federal Reserve, several senators fumed about being denied access to his A.I.G.-related documents.
No doubt, some of the e-mail messages contain privileged conversations among lawyers. Others probably include private information that is irrelevant to A.I.G.’s role in the crisis. But the vast majority of these documents could be made public without legal concern. So why haven’t the Treasury and the Federal Reserve already made sure the public could see this information? Do they want to protect A.I.G., or do they worry about shining too much sunlight on their own performance leading up to and during the crisis?
A.I.G.’s board of directors, a distinguished group of senior business executives, holds the power to decide whether to publish the e-mail messages and other documents. But those directors serve at the behest of A.I.G.’s shareholders. And while small shareholders of public corporations generally do not have the right to force publication of internal documents, in this case one shareholder — the taxpayer — holds an 80 percent stake. Anyone with such substantial ownership has effective control over corporate decisions, even if the corporation is a large public one.
Our stake is held by something called the A.I.G. Credit Facility Trust, whose three trustees are Jill M. Considine, a former chairman of the Depository Trust Company and a former director of the Federal Reserve Bank of New York; Chester B. Feldberg, a former New York Fed official who was chairman of Barclays Americas from 2000 to 2008; and Douglas L. Foshee, chief executive of the El Paso Corporation and chairman of the Houston branch of the Federal Reserve Bank of Dallas.
Ultimately, these three trustees wield all the power at A.I.G., and have the right to vote out the 11 directors if the directors are unwilling to publish the e-mail messages. In other words, if these three people ask A.I.G.’s board to post the messages and other documents, the board will have no choice but to comply. Ms. Considine, Mr. Feldberg and Mr. Foshee have the opportunity to be among the most effective and influential investor advocates in history. Before A.I.G. escapes, they should demand the evidence.
The longer it remains hidden, the less likely we will be to answer many questions about the A.I.G. collapse and the larger economic crisis — including the most important one: how do we prevent a repeat? Time is the enemy of effective investigation; records disappear, memories fade. The documents should be released — without excuses, or delay.
Eliot Spitzer is a former attorney general and governor of New York. Frank Partnoy is a professor of law at the University of San Diego. William Black is a professor of economics and law at the University of Missouri-Kansas City.
Tuesday, December 22, 2009
Monday, November 16, 2009
The Lies They Told
By JACOB HEILBRUNN
Published: November 12, 2009
When Sept. 11, 2001, dawned, the Northeast Air Defense Sector in Rome, N.Y., went on full alert — to prepare for a training exercise that envisioned a sneak attack by Russian planes flying over the North Pole to bomb the United States, a prospect that Defense Secretary Robert McNamara had dismissed as outdated in 1966. Later that morning, after American Airlines Flight 11 and United Airlines Flight 175 had hit the World Trade Center and American Airlines Flight 77 the Pentagon, three F-16 fighter jets were scrambled from Langley Air Force Base to form a combat air patrol over Washington. But degraded radio transmission quality meant that the pilots were left clueless about the nature of their mission. On seeing the Pentagon in flames, the lead fighter pilot later explained, “I reverted to the Russian threat. . . . I’m thinking cruise missile threat from the sea. You know, you look down and see the Pentagon burning, and I thought the bastards snuck one by us. . . . You couldn’t see any airplanes, and no one told us anything.”
Published: November 12, 2009
When Sept. 11, 2001, dawned, the Northeast Air Defense Sector in Rome, N.Y., went on full alert — to prepare for a training exercise that envisioned a sneak attack by Russian planes flying over the North Pole to bomb the United States, a prospect that Defense Secretary Robert McNamara had dismissed as outdated in 1966. Later that morning, after American Airlines Flight 11 and United Airlines Flight 175 had hit the World Trade Center and American Airlines Flight 77 the Pentagon, three F-16 fighter jets were scrambled from Langley Air Force Base to form a combat air patrol over Washington. But degraded radio transmission quality meant that the pilots were left clueless about the nature of their mission. On seeing the Pentagon in flames, the lead fighter pilot later explained, “I reverted to the Russian threat. . . . I’m thinking cruise missile threat from the sea. You know, you look down and see the Pentagon burning, and I thought the bastards snuck one by us. . . . You couldn’t see any airplanes, and no one told us anything.”
For all the trillions of dollars lavished on it, for all the talk about confronting new security threats, for all the exhortations to reinvent government,
As senior counsel to the 9/11 Commission, Farmer, who was the attorney general of New Jersey and is the dean of the Rutgers School of Law, investigated the derelict conduct of the national security apparatus. He was well prepared to do so. In their valuable account of the commission’s activities, “Without Precedent,” the commission chairman, Thomas Kean, and the vice chairman, Lee Hamilton, noted that shortly after the attacks, Farmer — “one of our most important hires” — established a victims’ assistance center in New Jersey and helped the F.B.I. uncover important evidence in garbage at Newark International Airport. But the commission’s efforts to reconstruct the tragedy itself were, at best, resented and, at worst, impeded by the sprawling defense bureaucracy and the Bush administration, both of which had much to hide. Even two reports by the inspectors general of the Defense and Transportation Departments, released in 2006, whitewashed government failures. Now that numerous transcripts and tapes have been declassified, however, Farmer draws on them to assail the government’s official depiction of 9/11 as so much public relations flimflam.
Perhaps nothing perturbs Farmer more than the contention that high-ranking officials responded quickly and effectively to the revelation that Qaeda attacks were taking place. Nothing, Farmer indicates, could be further from the truth: President George W. Bush and other officials were mostly irrelevant during the hijackings; instead, it was the ground-level commanders who made operational decisions in an ad hoc fashion. The memoirs of the White House terrorism expert Richard Clarke, which Farmer credits with good faith, make it sound as though a dramatic videoconference that Clarke led played a crucial role in organizing a response to the hijackings, but Farmer says that “this account does not square in any significant respect with what occurred that morning.”
To bolster such contentions, Farmer focuses minutely on newly available transcripts from the Federal Aviation Administration and the North American Aerospace Defense Command (Norad). He shows that, perversely enough, the one defense agency that had suffered draconian budget cuts was Norad, which had seen its alert sites reduced from about two dozen to a pitiful seven and, in any case, was unable to view large areas of the continental United States owing to its antiquated radar system.
In addition, local commanders bypassed established protocols for reporting and requesting assistance for a hijacking, in part because they had so little time in which to act. Farmer superbly renders the knuckle-biting tension and confusion engendered by the hijackings, and says the leadership of the F.A.A. and the Defense Department “would remain largely irrelevant to the critical decision making and unaware of the evolving situation ‘on the ground’ until the attacks were completed” — thereby making it close to impossible for the military to intercept any aircraft.
Yet both Deputy Defense Secretary Paul Wolfowitz and Vice President Dick Cheney, Farmer says, provided palpably false versions that touted the military’s readiness to shoot down United 93 before it could hit Washington. Planes were never in place to intercept it. By the time the Northeast Air Defense Sector had been informed of the hijacking, United 93 had already crashed. Farmer scrutinizes F.A.A. and Norad records to provide irrefragable evidence that a day after a Sept. 17 White House briefing, both agencies suddenly altered their chronologies to produce a coherent timeline and story that “fit together nicely with the account provided publicly by Deputy Defense Secretary Wolfowitz and Vice President Cheney.”
Farmer further observes that the Bush administration wrongly asserted that the chain of command functioned on 9/11; that President Bush issued an authorization to shoot down hijacked commercial flights; and that top officials at F.A.A. headquarters coordinated their actions with the military. Farmer’s verdict: “History should record that whether through unprecedented administrative incompetence or orchestrated mendacity, the American people were misled about the nation’s response to the 9/11 attacks.”
Farmer explains that his hope is to lay some conspiracy theories to rest “by identifying and establishing the deception that actually did occur.” Surprisingly, however, he contends that the administration’s account of 9/11 “didn’t provide a pretext for aggression, as did the government’s manipulation of intelligence regarding the existence of weapons of mass destruction in
It doesn’t require scouring the archives to notice that 9/11 was relentlessly exploited by the Bush administration to serve as the founding myth for the war on terror, which was seamlessly expanded from
Farmer also suggests that the cold war did not come to an end until the 9/11 attacks took place. But this, too, is questionable. In trumpeting an ill-defined war against terrorism, Bush simply transposed the bombast of the cold war to the present to suggest that he was a new Churchill staring down evil and that
Jacob Heilbrunn is a regular contributor to the Book Review and a senior editor at The National Interest.
Sunday, October 25, 2009
From the Capital Journal:
PIERRE —
A parking study contains plans for facilities ranging in price from $1.5 million to $3.5 million.
The first concept is a three-level 44,970-square-foot facility that would have 120 parking spaces. It would go between the Hyde Building and the State 123 at a cost of $1.5 million.
The third structure, at 91,777 square feet, would go in on the corner of Pierre Street and Pleasant Drive. The four-level facility would have room for 280 parking spots and cost about $3.2 million.
The final concept, would be located on the corner of Capitol Avenue and Euclid Avenue. That four-level facility would be 100,058 square feet and have room for 306 parking spaces for an approximate price of $3.5 million.
________________________________________________
Do these options REALLY revitalize downtown? Seriously? If you wanted more parking downtown, wouldn't you at least start with paving the open space on the northwest of the actual downtown block. A space there could probably get 40 cars or more with just the cost of paving.
But wait, is this really about the downtown? Do you think that people will walk the three blocks to downtown to shop? Could this possibly be about the big buildings that BankWest president Charles Burke own adjacent to one of the proposed parking gargages? Do you think that just because those buildings sit renovated and EMPTY it might be in his best interest to get a parking garage there? Gee, doesn't commissioner Norm Weaver work at BankWest?
Wake up and smell the coffee people.
PIERRE —
A parking study contains plans for facilities ranging in price from $1.5 million to $3.5 million.
The first concept is a three-level 44,970-square-foot facility that would have 120 parking spaces. It would go between the Hyde Building and the State 123 at a cost of $1.5 million.
The third structure, at 91,777 square feet, would go in on the corner of Pierre Street and Pleasant Drive. The four-level facility would have room for 280 parking spots and cost about $3.2 million.
The final concept, would be located on the corner of Capitol Avenue and Euclid Avenue. That four-level facility would be 100,058 square feet and have room for 306 parking spaces for an approximate price of $3.5 million.
________________________________________________
Do these options REALLY revitalize downtown? Seriously? If you wanted more parking downtown, wouldn't you at least start with paving the open space on the northwest of the actual downtown block. A space there could probably get 40 cars or more with just the cost of paving.
But wait, is this really about the downtown? Do you think that people will walk the three blocks to downtown to shop? Could this possibly be about the big buildings that BankWest president Charles Burke own adjacent to one of the proposed parking gargages? Do you think that just because those buildings sit renovated and EMPTY it might be in his best interest to get a parking garage there? Gee, doesn't commissioner Norm Weaver work at BankWest?
Wake up and smell the coffee people.
Friday, October 23, 2009
Geithner’s Secret Plan - The Illusion of Growth
The illusion, simply put, is to deflate the dollar (by printing massive amounts of money) in order to create a vacuum in the stock market. The vacuum in the market is then filled by stocks inflating because with the dollar decreasing in value it takes more dollars to create the same, previous level of stock. Check the level the dollar is currently trading at, this is real.
The trick on us, simply put, is now we are seeing the stocks inflate and we think the economy is recovering (which it isn’t – look at unemployment). That false sense of recovery has lurered us all back in to the stock market once again and creating actual investments further inflating the stock market. Check the DOW, this is real.
The trick on the rest of the world, simply put, is they see the stock market in America revitalize itself, for real because of all the new investments, and the confidence in the dollar is restored and the dollar gains value again. This part hasn’t happened yet.
Look at the evidence, dollar tanking, stocks soaring. So some research and check the graphs and facts. This is the real plan set forth by the Obama administration and the scary thing is that it seems to be working at the moment. The revitalization of the dollar still has not seen fruition because of all the insider selling IMO. That scares would-be foreign investors in the dollar. But we now know why the insiders are trading their stocks off. They see the illusion and do not have faith in it. Also, as a corporation, the insiders can further inflate their company’s stocks by selling at high price times. This raises the price of their company’s stock and is another illusion - one that is making the insiders very, very rich at this point in time… What do YOU think about all this hubbub?
If we want the economy to bounce back we need to buy into this illusion, however, I just don't like not being told the truth in the first place. This is a case, however, that if the truth or the plan was told, it wouldn't work. No one would buy in to an illusion unless they perceived it to be the truth.
The trick on us, simply put, is now we are seeing the stocks inflate and we think the economy is recovering (which it isn’t – look at unemployment). That false sense of recovery has lurered us all back in to the stock market once again and creating actual investments further inflating the stock market. Check the DOW, this is real.
The trick on the rest of the world, simply put, is they see the stock market in America revitalize itself, for real because of all the new investments, and the confidence in the dollar is restored and the dollar gains value again. This part hasn’t happened yet.
Look at the evidence, dollar tanking, stocks soaring. So some research and check the graphs and facts. This is the real plan set forth by the Obama administration and the scary thing is that it seems to be working at the moment. The revitalization of the dollar still has not seen fruition because of all the insider selling IMO. That scares would-be foreign investors in the dollar. But we now know why the insiders are trading their stocks off. They see the illusion and do not have faith in it. Also, as a corporation, the insiders can further inflate their company’s stocks by selling at high price times. This raises the price of their company’s stock and is another illusion - one that is making the insiders very, very rich at this point in time… What do YOU think about all this hubbub?
If we want the economy to bounce back we need to buy into this illusion, however, I just don't like not being told the truth in the first place. This is a case, however, that if the truth or the plan was told, it wouldn't work. No one would buy in to an illusion unless they perceived it to be the truth.
Thursday, October 22, 2009
Ha ha ha ha ha!
From the Capital Journal:
WASHINGTON (AP) -- First came the bailout. Now comes the payback.
The Treasury Department is ordering seven big companies that haven't paid back last year's government bailouts to halve their top executives' average compensation.
The cuts apply to the 25 highest-paid executives at the companies, with salaries being slashed up to 90 percent, according to a person familiar with the matter. The companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.
_______________________
My response. DAAaahahahahahahahahhaaaaaa... whhahaahahahahahaaaa... hehehhehehheh... heh ... heheh... wheee.. man.... hehehhehehee....
Ow! That actually hurt a little.
WASHINGTON (AP) -- First came the bailout. Now comes the payback.
The Treasury Department is ordering seven big companies that haven't paid back last year's government bailouts to halve their top executives' average compensation.
The cuts apply to the 25 highest-paid executives at the companies, with salaries being slashed up to 90 percent, according to a person familiar with the matter. The companies are: Bank of America Corp., American International Group Inc., Citigroup Inc., General Motors, GMAC, Chrysler and Chrysler Financial.
_______________________
My response. DAAaahahahahahahahahhaaaaaa... whhahaahahahahahaaaa... hehehhehehheh... heh ... heheh... wheee.. man.... hehehhehehee....
Ow! That actually hurt a little.
MILLIONS in NEW TAXES!
By Bob Mercer
State Capitol Bureau
Published/Last Modified on Thursday, Oct 22, 2009 - 12:14:57 am CDT
PIERRE — A new analysis conducted for the Legislature shows how much money could be collected by five of South Dakota’s largest cities if municipal governments receive authority to charge an additional 1 percent sales tax.
The South Dakota Municipal League plans to pursue the “third penny” option during the 2010 session of the Legislature, according to Yvonne Taylor, the league’s executive director.
__________________________________
Wonderful, wonderful, wonderful! They can't balance the budget at the city, state, OR national level, so let's give them all More money! At what point do the voters begin to say, "Alright, enough is enough. Give me those keys. No, no... you really are in no shape to be driving."
BALANCE THE FRIGGING BUDGET!!! Sheesh, it's not that tough! Hopefully they are all doing it on their own personal budgets. I'll even explain how it's done..
You look at your monthly income.
You look at your monthly expenses.
You make changes until they at least MATCH! You don't... I repeat, you DO NOT keep coming back to the voters for more, more more. This is insane!
State Capitol Bureau
Published/Last Modified on Thursday, Oct 22, 2009 - 12:14:57 am CDT
PIERRE — A new analysis conducted for the Legislature shows how much money could be collected by five of South Dakota’s largest cities if municipal governments receive authority to charge an additional 1 percent sales tax.
The South Dakota Municipal League plans to pursue the “third penny” option during the 2010 session of the Legislature, according to Yvonne Taylor, the league’s executive director.
__________________________________
Wonderful, wonderful, wonderful! They can't balance the budget at the city, state, OR national level, so let's give them all More money! At what point do the voters begin to say, "Alright, enough is enough. Give me those keys. No, no... you really are in no shape to be driving."
BALANCE THE FRIGGING BUDGET!!! Sheesh, it's not that tough! Hopefully they are all doing it on their own personal budgets. I'll even explain how it's done..
You look at your monthly income.
You look at your monthly expenses.
You make changes until they at least MATCH! You don't... I repeat, you DO NOT keep coming back to the voters for more, more more. This is insane!
Thursday, October 15, 2009
Focus on Prevention not Reaction
Dr. Vinay Goyal is an MBBS,DRM,DNB (Intensivist and Thyroid specialist) having clinical experience of over 20 years. He has worked in institutions like Hinduja Hospital , Bombay Hospital , Saifee Hospital , Tata Memorial etc. Presently, he is heading our Nuclear Medicine Department and Thyroid clinic at Riddhivinayak Cardiac and Critical Centre, Malad (W).
The following message given by him, I feel makes a lot of sense and is important for all to know
The only portals of entry are the nostrils and mouth/throat. In a global epidemic of this nature, it's almost impossible to avoid coming into contact with H1N1 in spite of all precautions. Contact with H1N1 is not so much of a problem as proliferation is.
While you are still healthy and not showing any symptoms of H1N1 infection, in order to prevent proliferation, aggravation of symptoms and development of secondary infections, some very simple steps, not fully highlighted in most official communications, can be practiced (instead of focusing on how to stock N95 or Tamiflu):
1. Frequent hand-washing (well highlighted in all official communications).
2. "Hands-off-the-face" approach. Resist all temptations to touch any part of face (unless you want to eat, bathe or slap).
3. *Gargle twice a day with warm salt water (use Listerine if you don't trust salt). *H1N1 takes 2-3 days after initial infection in the throat/ nasal cavity to proliferate and show characteristic symptoms. Simple gargling prevents proliferation. In a way, gargling with salt water has the same effect on a healthy individual that Tamiflu has on an infected one. Don't underestimate this simple, inexpensive and powerful preventative method.
4. Similar to 3 above, *clean your nostrils at least once every day with warm salt water. *Not everybody may be good at Jala Neti or Sutra Neti (very good Yoga asanas to clean nasal cavities), but *blowing the nose hard once a day and swabbing both nostrils with cotton buds dipped in warm salt water is very effective in bringing down viral population.*
5. *Boost your natural immunity with foods that are rich in Vitamin C (Amla and other citrus fruits). *If you have to supplement with Vitamin C tablets, make sure that it also has Zinc to boost absorption.
6. *Drink as much of warm liquids (tea, coffee, etc) as you can.
*Drinking warm liquids has the same effect as gargling, but in the reverse direction. They wash off proliferating viruses from the throat into the stomach where they cannot survive, proliferate or do any harm.
Neti pots and sinus rinse kits are available at the drug store and relatively inexpensive....under $15.
The following message given by him, I feel makes a lot of sense and is important for all to know
The only portals of entry are the nostrils and mouth/throat. In a global epidemic of this nature, it's almost impossible to avoid coming into contact with H1N1 in spite of all precautions. Contact with H1N1 is not so much of a problem as proliferation is.
While you are still healthy and not showing any symptoms of H1N1 infection, in order to prevent proliferation, aggravation of symptoms and development of secondary infections, some very simple steps, not fully highlighted in most official communications, can be practiced (instead of focusing on how to stock N95 or Tamiflu):
1. Frequent hand-washing (well highlighted in all official communications).
2. "Hands-off-the-face" approach. Resist all temptations to touch any part of face (unless you want to eat, bathe or slap).
3. *Gargle twice a day with warm salt water (use Listerine if you don't trust salt). *H1N1 takes 2-3 days after initial infection in the throat/ nasal cavity to proliferate and show characteristic symptoms. Simple gargling prevents proliferation. In a way, gargling with salt water has the same effect on a healthy individual that Tamiflu has on an infected one. Don't underestimate this simple, inexpensive and powerful preventative method.
4. Similar to 3 above, *clean your nostrils at least once every day with warm salt water. *Not everybody may be good at Jala Neti or Sutra Neti (very good Yoga asanas to clean nasal cavities), but *blowing the nose hard once a day and swabbing both nostrils with cotton buds dipped in warm salt water is very effective in bringing down viral population.*
5. *Boost your natural immunity with foods that are rich in Vitamin C (Amla and other citrus fruits). *If you have to supplement with Vitamin C tablets, make sure that it also has Zinc to boost absorption.
6. *Drink as much of warm liquids (tea, coffee, etc) as you can.
*Drinking warm liquids has the same effect as gargling, but in the reverse direction. They wash off proliferating viruses from the throat into the stomach where they cannot survive, proliferate or do any harm.
Neti pots and sinus rinse kits are available at the drug store and relatively inexpensive....under $15.
Tuesday, October 13, 2009
Bear Stearns ex-managers on trial
Published by BBC
The trial of two former managers at investment bank Bear Stearns on fraud charges opens in New York on Tuesday.
Ralph Cioffi and Matthew Tannin, who managed two failed hedge funds that collapsed in June 2007, could be jailed for 20 years if convicted.
They deny allegations that they knew of the funds' problems but did not inform investors, who lost $1.4bn (£709m).
They are among the first financial executives to face charges since the global financial crisis began.
The hedge funds bet on the high-risk sub-prime mortgage market in the US before they collapsed.
Their closure was one of the first signs of the problems in the sub-prime market, which triggered a massive loss of confidence in financial markets.
Both men deny charges of fraud and conspiracy, while Mr Cioffi has denied an additional charge of insider trading.
Proceedings in Brooklyn federal court are set to begin with the selection of the jury. Opening arguments are expected later in the week.
Sub-prime 'worry'
The BBC's Michelle Fleury in New York says prosecutors intend to use the two men's own words against them, thanks to e-mails obtained by investigators and quoted in the indictment.
These include an e-mail that Mr Cioffi sent to Mr Tannin in March 2007 in which he states: "The worry for me is that sub-prime losses will be far worse than anything people have modelled."
According to the papers, the two men subsequently told senior Bear Stearns personnel that the funds were "in good shape and would continue to be successful".
Matthew Tannin
Matthew Tannin had said that the funds were in "good shape"
Sub-prime mortgages, which are loans issued to people with a poor credit history, were repackaged as securities and sold across the globe.
The collapse of these hedge funds preceded Bear Stearns' own demise in 2008.
It was later bought by JP Morgan, with the backing of the US Federal Reserve.
Bear Stearns was one of the most high-profile victims of the credit crunch, which was triggered by bank losses linked to the US housing market.
___________________________________________________________________________
Ok, so these guys are just being made an example of and taking the fall for the whole company's screw up? Is that the correct thing to do? Bear Stearns was bailed out because the government said they were too big to fail. What do you think about that? In my opinion, there are a lot more heads that should roll at the company than ust these two...
The trial of two former managers at investment bank Bear Stearns on fraud charges opens in New York on Tuesday.
Ralph Cioffi and Matthew Tannin, who managed two failed hedge funds that collapsed in June 2007, could be jailed for 20 years if convicted.
They deny allegations that they knew of the funds' problems but did not inform investors, who lost $1.4bn (£709m).
They are among the first financial executives to face charges since the global financial crisis began.
The hedge funds bet on the high-risk sub-prime mortgage market in the US before they collapsed.
Their closure was one of the first signs of the problems in the sub-prime market, which triggered a massive loss of confidence in financial markets.
Both men deny charges of fraud and conspiracy, while Mr Cioffi has denied an additional charge of insider trading.
Proceedings in Brooklyn federal court are set to begin with the selection of the jury. Opening arguments are expected later in the week.
Sub-prime 'worry'
The BBC's Michelle Fleury in New York says prosecutors intend to use the two men's own words against them, thanks to e-mails obtained by investigators and quoted in the indictment.
These include an e-mail that Mr Cioffi sent to Mr Tannin in March 2007 in which he states: "The worry for me is that sub-prime losses will be far worse than anything people have modelled."
According to the papers, the two men subsequently told senior Bear Stearns personnel that the funds were "in good shape and would continue to be successful".
Matthew Tannin
Matthew Tannin had said that the funds were in "good shape"
Sub-prime mortgages, which are loans issued to people with a poor credit history, were repackaged as securities and sold across the globe.
The collapse of these hedge funds preceded Bear Stearns' own demise in 2008.
It was later bought by JP Morgan, with the backing of the US Federal Reserve.
Bear Stearns was one of the most high-profile victims of the credit crunch, which was triggered by bank losses linked to the US housing market.
___________________________________________________________________________
Ok, so these guys are just being made an example of and taking the fall for the whole company's screw up? Is that the correct thing to do? Bear Stearns was bailed out because the government said they were too big to fail. What do you think about that? In my opinion, there are a lot more heads that should roll at the company than ust these two...
Sunday, October 11, 2009
We don't do things that way 'round here, Pardner...
From the Pierre Capital Journal...
Around 150 Fort Pierre residents signed petitions to refer to a popular vote the council’s decision to sign a water purchase agreement with West River/Lyman-Jones Rural Water Systems. Petitioners are upset over the higher fees involved — up 66 percent higher for many customers — and believe the city is rushing into the deal.
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Sixy six percent higher? Oooooooh, the city council is gonna take a BEATDOWN!!! Fort Pierre is notorious for not wanting to spend money. They got their big diesel power generator a while back, which irritated some. My money is on this deal getting kaiboshed.
There's some thought that the deal isn't referrable. If that's the case, plan on interesting elections!
Around 150 Fort Pierre residents signed petitions to refer to a popular vote the council’s decision to sign a water purchase agreement with West River/Lyman-Jones Rural Water Systems. Petitioners are upset over the higher fees involved — up 66 percent higher for many customers — and believe the city is rushing into the deal.
---------------------------
Sixy six percent higher? Oooooooh, the city council is gonna take a BEATDOWN!!! Fort Pierre is notorious for not wanting to spend money. They got their big diesel power generator a while back, which irritated some. My money is on this deal getting kaiboshed.
There's some thought that the deal isn't referrable. If that's the case, plan on interesting elections!
SD Unemployment fund BROKE!!
From the Pierre Capital Journal
PIERRE — South Dakota’s unemployment fund is on a path to be $24 million in the hole by the end of December.
Even so, the state Unemployment Insurance Advisory Council voted Thursday to recommend providing unemployment benefits for an additional 26 weeks to jobless workers who are in state-approved training programs.
The benefit expansion would qualify South Dakota to receive a one-time grant of $11.7 million next year from the federal government.
The cost of the expansion in the long run could be $800,000 to $1.6 million annually, according to an official estimate by the state Labor Department.
----------------------------
So how are we going to balance this fund? Why by just charging every employer in the state $150 PER EMPLOYEE this year. The following years? Why we're just going to charge an additional $100 per employee.
The forecast for 2010 shows the surcharges will generate about $36 million. That will be in addition to the $26 million expected from normal contributions and interest. But Labor Department analysts predict benefits will cost $40 million in 2010, and the $16.9 million federal loan needs to be paid back no later than Dec. 31, 2010, in order to avoid paying interest charges.
At what point are we going to quit spending ourselves into oblivion and begin doing what's right and responsible? God forbid that we disagree with the plan that Godbama is driving us down towards supposed recovery.
PIERRE — South Dakota’s unemployment fund is on a path to be $24 million in the hole by the end of December.
Even so, the state Unemployment Insurance Advisory Council voted Thursday to recommend providing unemployment benefits for an additional 26 weeks to jobless workers who are in state-approved training programs.
The benefit expansion would qualify South Dakota to receive a one-time grant of $11.7 million next year from the federal government.
The cost of the expansion in the long run could be $800,000 to $1.6 million annually, according to an official estimate by the state Labor Department.
----------------------------
So how are we going to balance this fund? Why by just charging every employer in the state $150 PER EMPLOYEE this year. The following years? Why we're just going to charge an additional $100 per employee.
The forecast for 2010 shows the surcharges will generate about $36 million. That will be in addition to the $26 million expected from normal contributions and interest. But Labor Department analysts predict benefits will cost $40 million in 2010, and the $16.9 million federal loan needs to be paid back no later than Dec. 31, 2010, in order to avoid paying interest charges.
At what point are we going to quit spending ourselves into oblivion and begin doing what's right and responsible? God forbid that we disagree with the plan that Godbama is driving us down towards supposed recovery.
Wednesday, October 7, 2009
SWEEPS, swept away for the moment
Sorry for the lateness on this one. I was busy this weekend and just found this online.
From the Capital Journal:
Published/Last Modified on Friday, Oct 02, 2009 - 12:31:12 am CDT
PIERRE — Sweeps, a controversial attendance practice implemented this year at T.F. Riggs, has been temporarily suspended for legal reasons.
Superintendent Dr. Kelly Glodt made the decision Thursday morning. He said the delay is intended to give those at the high school time to draft a new tardy policy to include Sweeps, a practice that bars students from classes when they are late and docks their grades.
“When we went through with our legal counsel — even though he agreed it was procedure more than policy — we prefer to change the policy,” Glodt said. “Instead of our current policy of four tardies and then a detention, we’d like it to be something similar to the Sweeps.”
The procedure was put in place at the beginning of the school shortly after staff recommended it. It was the dominant topic of the September school board meeting with one parent speaking against it and others present critical of it as well.
Yeah, right, the legal cousel agreed it was more of a procedure than a policy. He probably said something like you could get sued and lose bigtime if you go ahead with this POLICY change without actually changing the policy. It's about time that the policymakers in Pierre at least make a token effort at following procedural rules before blatantly implementing a major change.
Perhaps remedial Business Law or Constitutional Law would be in order? Do they still even teach that? Bahh.. why bother?
From the Capital Journal:
Published/Last Modified on Friday, Oct 02, 2009 - 12:31:12 am CDT
PIERRE — Sweeps, a controversial attendance practice implemented this year at T.F. Riggs, has been temporarily suspended for legal reasons.
Superintendent Dr. Kelly Glodt made the decision Thursday morning. He said the delay is intended to give those at the high school time to draft a new tardy policy to include Sweeps, a practice that bars students from classes when they are late and docks their grades.
“When we went through with our legal counsel — even though he agreed it was procedure more than policy — we prefer to change the policy,” Glodt said. “Instead of our current policy of four tardies and then a detention, we’d like it to be something similar to the Sweeps.”
The procedure was put in place at the beginning of the school shortly after staff recommended it. It was the dominant topic of the September school board meeting with one parent speaking against it and others present critical of it as well.
Yeah, right, the legal cousel agreed it was more of a procedure than a policy. He probably said something like you could get sued and lose bigtime if you go ahead with this POLICY change without actually changing the policy. It's about time that the policymakers in Pierre at least make a token effort at following procedural rules before blatantly implementing a major change.
Perhaps remedial Business Law or Constitutional Law would be in order? Do they still even teach that? Bahh.. why bother?
Tuesday, October 6, 2009
Mom, can I have $650,000? It's for charity!
One can almost hear the heiress teenager imploring her mother for a paltry $650k to donate to the poor. It sounds pretty good, but unfortunately the whining teen in our tale is the Mayor Gill's Food Bank Task Force and the money that they are begging for is yours!
They want $650,000 to purchase the former Pepsi building in Pierre. "This building is PERFECT!", the heiress screamed. "We simply MUST have it!" There's a couple of problems with this situation starting with money. They need to find a funding source. Ahem... hint, hint Mayor Gill. I mean jeez, it's only a half million. You guys just washed away double that and then some only last week when you "balanced" the budget.
"It's gonna serve like 20 counties and like Dozens of communities," the heiress continued, popping her gum like punctuation. "There are like, um, Needy people and they like need stuff."
Funding mechanisms for this grand plan were put forth by Commissioner Dave Kelley, "I don't care if it's a bake sale." he said. Wow, that's a pretty big bake sale.
Here's my brief problems with this "plan":
1. No funding.
2. Overpriced building. Retail value is around $100,000 less according to sources.
3. Do they *really* need that much building and does it have to be on one of the highest volume streets in Pierre? You do realize you pay for that sort of access?
4. Once you own (or the city) owns a building, you have to staff it and you have to pay taxes, utilities, maintenance etc. You might as well figure that you are massively in the food bank business. Sure it feels good, but is it needed and secondly do you really WANT that?
"If you build it, they will come" Kevin Coster, Field of Dreams
They want $650,000 to purchase the former Pepsi building in Pierre. "This building is PERFECT!", the heiress screamed. "We simply MUST have it!" There's a couple of problems with this situation starting with money. They need to find a funding source. Ahem... hint, hint Mayor Gill. I mean jeez, it's only a half million. You guys just washed away double that and then some only last week when you "balanced" the budget.
"It's gonna serve like 20 counties and like Dozens of communities," the heiress continued, popping her gum like punctuation. "There are like, um, Needy people and they like need stuff."
Funding mechanisms for this grand plan were put forth by Commissioner Dave Kelley, "I don't care if it's a bake sale." he said. Wow, that's a pretty big bake sale.
Here's my brief problems with this "plan":
1. No funding.
2. Overpriced building. Retail value is around $100,000 less according to sources.
3. Do they *really* need that much building and does it have to be on one of the highest volume streets in Pierre? You do realize you pay for that sort of access?
4. Once you own (or the city) owns a building, you have to staff it and you have to pay taxes, utilities, maintenance etc. You might as well figure that you are massively in the food bank business. Sure it feels good, but is it needed and secondly do you really WANT that?
"If you build it, they will come" Kevin Coster, Field of Dreams
Monday, October 5, 2009
Sunday, October 4, 2009
Downside- Taxpayers Upside- Owners!
From Paul Tucker, Bank of England Deputy Governor. This is one of the more sensible things I’ve read this week:
"We cannot continue with a regime where, crudely, the downside is picked up by the taxpayers and the upside is picked up by the shareholders and the bank’s managers."
----------------
Thoughts? Comments?
"We cannot continue with a regime where, crudely, the downside is picked up by the taxpayers and the upside is picked up by the shareholders and the bank’s managers."
----------------
Thoughts? Comments?
Friday, October 2, 2009
Economy Healed while Jobless Increase???
Excerpts from the Wall Street Journal
But Friday's Labor Department report underscored the risk that without jobs, consumers won't have income to spend and that will restrain growth and give employers little reason to resume hiring after 21 consecutive months of job losses.
With the economy propped up by government spending on programs such as "cash for clunkers," economists worry the fragile recovery will fizzle if employers don't soon begin hiring. Programs such as extensions of unemployment benefits to the $8,000 tax credit for first-time homebuyers have helped stabilize the housing market and construction spending.But hiring hasn't followed.
The number of unemployed -- officially at 15.1 million -- is greater than the population of all but four states. The proportion of people who have been searching for work for longer than half a year rose to 35.6% of the unemployed, from a third of the work force in August.
A separate report Friday showed more disappointing news: Factory orders fell 0.8% in August from a month earlier, after four months of increases.
..................................................
As I said in an earlier post, nothing has been fundamentally changed. They are using words like "propped up", "fragile" for a reason. That's exactly what Obama has accomplished with the various bailouts, propped up the economy and bought himself some time.
But Friday's Labor Department report underscored the risk that without jobs, consumers won't have income to spend and that will restrain growth and give employers little reason to resume hiring after 21 consecutive months of job losses.
With the economy propped up by government spending on programs such as "cash for clunkers," economists worry the fragile recovery will fizzle if employers don't soon begin hiring. Programs such as extensions of unemployment benefits to the $8,000 tax credit for first-time homebuyers have helped stabilize the housing market and construction spending.But hiring hasn't followed.
The number of unemployed -- officially at 15.1 million -- is greater than the population of all but four states. The proportion of people who have been searching for work for longer than half a year rose to 35.6% of the unemployed, from a third of the work force in August.
A separate report Friday showed more disappointing news: Factory orders fell 0.8% in August from a month earlier, after four months of increases.
..................................................
As I said in an earlier post, nothing has been fundamentally changed. They are using words like "propped up", "fragile" for a reason. That's exactly what Obama has accomplished with the various bailouts, propped up the economy and bought himself some time.
Insider Trading Rampant
This article is at CNNMoney.com
NEW YORK (Fortune) -- Can hundreds of stock-selling insiders be wrong?
The stock market has mounted an historic rally since it hit a low in March. The S&P 500 is up 55%, as U.S. job losses have slowed and credit markets have stabilized.
But against that improving backdrop, one indicator has turned distinctly bearish: Corporate officers and directors have been selling shares at a pace last seen just before the onset of the subprime malaise two years ago.
While a wave of insider selling doesn't necessarily foretell a stock market downturn, it suggests that those with the first read on business trends don't believe current stock prices are justified by economic fundamentals.
"It's not a very complicated story," said Charles Biderman, who runs market research firm Trim Tabs. "Insiders know better than you and me. If prices are too high, they sell."
Biderman, who says there were $31 worth of insider stock sales in August for every $1 of insider buys, isn't the only one who has taken note. Ben Silverman, director of research at the InsiderScore.com web site that tracks trading action, said insiders are selling at their most aggressive clip since the summer of 2007.
Silverman said the "orgy of selling" is noteworthy because corporate insiders were aggressive buyers of the market's spring dip. The S&P 500 dropped as low as 666 in early March before the recent rally took it back above 1,000.
"That was a great call," Silverman said. "They were buying when prices were low, so it makes sense to look at what they're doing now that prices are higher."
Straightforward trading
In the case of firms such as discount broker TD Ameritrade (AMTD), they are selling with abandon. Chairman Joe Moglia has netted more than $10 million in profits from stock sales since April, by selling shares on each of the last 106 business days, according to Securities and Exchange Commission filings.
0:00 /4:07The stock market's lost decade
A TD Ameritrade spokeswoman said Moglia's sales are being made under a pre-arranged selling plan he filed with the SEC last August. Under that plan, his brokers exercise some options he got eight years ago and sell the underlying shares every day the company's stock price is above a certain level.
Moglia's not the only insider selling at TD Ameritrade. The company's founder and former chairman, Joe Ricketts, and his wife Marlene last month sold 5.7 million shares to help fund the family's purchase of the Chicago Cubs baseball team. They owned 16% of the company's stock at last count.
Silverman said the TD Ameritrade insider sales don't particularly raise concerns about the company's health, because "special circumstances" -- the Cubs deal and the pending expiration of Moglia's options -- are evident.
He said it's potentially more worrisome when insiders suddenly make big sales without obvious motivating factors.
Fossil (FOSL) CEO Tom Kartsotis has sold $25 million of the watchmaker's stock over the past month. Shares of Fossil have more than doubled since early March. Fossil didn't immediately return a call seeking comment.
At video game maker Activision Blizzard (ATVI), CEO Robert Kotick and director Brian Kelly each made more than $10 million last month by selling shares after exercising stock options.
While some of Kotick's options were due to expire next year, others weren't due to expire until 2014 in his case and 2012 in Kelly's. The stock sales took place at prices that were about 50% above their 52-week low. Activision didn't respond to a request for comment.
Adding to the flurry of stock sales, companies are selling stock to the public at a brisk clip while buybacks have tailed off. All told, U.S. corporations have been net sellers of $105 billion of stock over the past four months, Biderman said.
Insiders have managed to cash in on some of those offerings. Healthcare payment administrator Emdeon (EM), for instance, last month raised $155 million in an initial public offering. At the same time, selling shareholders led by private equity investor General Atlantic Partners raised $188 million.
Though the wave of selling by insiders doesn't necessarily predict a pullback in their stocks or the market as a whole, it's hard to put a happy spin on the recent trends.
"The disparity between buyers and sellers right now is vast," said Silverman. "That's the beauty of following insider trading -- these guys are talking with their checkbooks."
First Published: September 10, 2009: 2:36 PM ET
NEW YORK (Fortune) -- Can hundreds of stock-selling insiders be wrong?
The stock market has mounted an historic rally since it hit a low in March. The S&P 500 is up 55%, as U.S. job losses have slowed and credit markets have stabilized.
But against that improving backdrop, one indicator has turned distinctly bearish: Corporate officers and directors have been selling shares at a pace last seen just before the onset of the subprime malaise two years ago.
While a wave of insider selling doesn't necessarily foretell a stock market downturn, it suggests that those with the first read on business trends don't believe current stock prices are justified by economic fundamentals.
"It's not a very complicated story," said Charles Biderman, who runs market research firm Trim Tabs. "Insiders know better than you and me. If prices are too high, they sell."
Biderman, who says there were $31 worth of insider stock sales in August for every $1 of insider buys, isn't the only one who has taken note. Ben Silverman, director of research at the InsiderScore.com web site that tracks trading action, said insiders are selling at their most aggressive clip since the summer of 2007.
Silverman said the "orgy of selling" is noteworthy because corporate insiders were aggressive buyers of the market's spring dip. The S&P 500 dropped as low as 666 in early March before the recent rally took it back above 1,000.
"That was a great call," Silverman said. "They were buying when prices were low, so it makes sense to look at what they're doing now that prices are higher."
Straightforward trading
In the case of firms such as discount broker TD Ameritrade (AMTD), they are selling with abandon. Chairman Joe Moglia has netted more than $10 million in profits from stock sales since April, by selling shares on each of the last 106 business days, according to Securities and Exchange Commission filings.
0:00 /4:07The stock market's lost decade
A TD Ameritrade spokeswoman said Moglia's sales are being made under a pre-arranged selling plan he filed with the SEC last August. Under that plan, his brokers exercise some options he got eight years ago and sell the underlying shares every day the company's stock price is above a certain level.
Moglia's not the only insider selling at TD Ameritrade. The company's founder and former chairman, Joe Ricketts, and his wife Marlene last month sold 5.7 million shares to help fund the family's purchase of the Chicago Cubs baseball team. They owned 16% of the company's stock at last count.
Silverman said the TD Ameritrade insider sales don't particularly raise concerns about the company's health, because "special circumstances" -- the Cubs deal and the pending expiration of Moglia's options -- are evident.
He said it's potentially more worrisome when insiders suddenly make big sales without obvious motivating factors.
Fossil (FOSL) CEO Tom Kartsotis has sold $25 million of the watchmaker's stock over the past month. Shares of Fossil have more than doubled since early March. Fossil didn't immediately return a call seeking comment.
At video game maker Activision Blizzard (ATVI), CEO Robert Kotick and director Brian Kelly each made more than $10 million last month by selling shares after exercising stock options.
While some of Kotick's options were due to expire next year, others weren't due to expire until 2014 in his case and 2012 in Kelly's. The stock sales took place at prices that were about 50% above their 52-week low. Activision didn't respond to a request for comment.
Adding to the flurry of stock sales, companies are selling stock to the public at a brisk clip while buybacks have tailed off. All told, U.S. corporations have been net sellers of $105 billion of stock over the past four months, Biderman said.
Insiders have managed to cash in on some of those offerings. Healthcare payment administrator Emdeon (EM), for instance, last month raised $155 million in an initial public offering. At the same time, selling shareholders led by private equity investor General Atlantic Partners raised $188 million.
Though the wave of selling by insiders doesn't necessarily predict a pullback in their stocks or the market as a whole, it's hard to put a happy spin on the recent trends.
"The disparity between buyers and sellers right now is vast," said Silverman. "That's the beauty of following insider trading -- these guys are talking with their checkbooks."
First Published: September 10, 2009: 2:36 PM ET
GOD Failed? No Olympics in "the One"s home town?
The bringer together of nations and Lord of everything on this earth was snubbed by the Olympics? The President, the first lady and EVEN Oprah were all snubbed when Chicago was voted out in the FIRST ROUND. I'd hate to be the rest of the world, since fire and brimstone will surely blow them to smithereens, or maybe a flood or something. You just never know what the ire of a superhuman God can bring.
"His wife tugged at IOC members’ heart strings by discussing her late father, who had multiple sclerosis. She recounted sitting on his lap, watching Olympians such as Carl Lewis and Nadia Comaneci compete, and how her father “taught me how to throw a ball and a mean right hook.”
“My dad would have been so proud to witness these games in Chicago,” she said."
Not to be! Are these people suicidal? Don't they know what He is capable of?
The Daley Plaza crowd reacted to Chicago’s elimination in silence. Some members of the crowd were crying as they walked away. People blamed negative media attention on the bid and former Chicago Bulls star Michael Jordan’s lack of participation as reasons for the loss.
“We weren’t unified as a city. We didn’t get behind this enough,” said Rob Fox of Chicago.
“Michael Jordan didn’t show up,” said Margaret Johnson of Chicago. “His city asked him for help and he turned his back on us.""
So I guess they are going to blame Michael Jordan now? I don't blame these Chicagoans one bit. It surely couldn't have been the Messiah's fault. Definitely not. It couldn't have been the fact that Chicago is more dangerous than Iraq and Afghanistan put together. It couldn't have been the fact that a good boy, with good grades, got his head bashed in on the streets of the windy city, the model for the American Welfare system and HUGE proponent of anti-gun programs. I can see how Micheal Jordan would have been immediately blamed.
"“The violence in the schools became an international issue, and all the corruption, the rest of the world just sees us as Crook Town,” said Reyes, 59, currently unemployed, who bought his first TV two decades ago specifically to watch the Olympics."
The rest of the world sees you as a "crook town" because, well, the rest of the world has pretty good eyesight. Does anyone remember the Black Panthers standing in front of voting places? I do. The Olympic committee seems to remember that too.
Chicago can't get rid of their high crime because they have such an overwhelming mass of unarmed citizens. If the average Jehovah's Witness moved there, they would be compelled into a life of crime. It's just too easy. It's like a wolf looking at 200 retarded sheep. Why not kill and rob them?
But keep blaming others for the Olympic thing Chicago... It's surely not the result of ineffective, touchy feely Chicago politicians.
"His wife tugged at IOC members’ heart strings by discussing her late father, who had multiple sclerosis. She recounted sitting on his lap, watching Olympians such as Carl Lewis and Nadia Comaneci compete, and how her father “taught me how to throw a ball and a mean right hook.”
“My dad would have been so proud to witness these games in Chicago,” she said."
Not to be! Are these people suicidal? Don't they know what He is capable of?
The Daley Plaza crowd reacted to Chicago’s elimination in silence. Some members of the crowd were crying as they walked away. People blamed negative media attention on the bid and former Chicago Bulls star Michael Jordan’s lack of participation as reasons for the loss.
“We weren’t unified as a city. We didn’t get behind this enough,” said Rob Fox of Chicago.
“Michael Jordan didn’t show up,” said Margaret Johnson of Chicago. “His city asked him for help and he turned his back on us.""
So I guess they are going to blame Michael Jordan now? I don't blame these Chicagoans one bit. It surely couldn't have been the Messiah's fault. Definitely not. It couldn't have been the fact that Chicago is more dangerous than Iraq and Afghanistan put together. It couldn't have been the fact that a good boy, with good grades, got his head bashed in on the streets of the windy city, the model for the American Welfare system and HUGE proponent of anti-gun programs. I can see how Micheal Jordan would have been immediately blamed.
"“The violence in the schools became an international issue, and all the corruption, the rest of the world just sees us as Crook Town,” said Reyes, 59, currently unemployed, who bought his first TV two decades ago specifically to watch the Olympics."
The rest of the world sees you as a "crook town" because, well, the rest of the world has pretty good eyesight. Does anyone remember the Black Panthers standing in front of voting places? I do. The Olympic committee seems to remember that too.
Chicago can't get rid of their high crime because they have such an overwhelming mass of unarmed citizens. If the average Jehovah's Witness moved there, they would be compelled into a life of crime. It's just too easy. It's like a wolf looking at 200 retarded sheep. Why not kill and rob them?
But keep blaming others for the Olympic thing Chicago... It's surely not the result of ineffective, touchy feely Chicago politicians.
Thursday, October 1, 2009
Mosquitos equal Government Grants
Some time ago, the city of Pierre decided that it would be a good idea to spray the entire town from the air with mosquito repellent, in the aftermath of the "great West Nile epidemic of 2000". I think a total of 6 or 7 folks died statewide from the dreaded West Nile epidemic. Might have been less. I only make fun because the small city of Pierre spent 1.6 million dollars on chemicals to be sprayed from a plane, and then had it printed in the local paper that the chemicals were not dangerous, but "just make sure you are inside" when they spray! Does this sound rational? How many people do car wrecks kill each year? How many die from the common flu? West Nile kills less people than lightning? West Nile kills less people than BEE STINGS? Really???
Really.
In New York State in the year 2000 the common flu killed about 2,000 people. West Nile only killed something like 8. So this town in New York sprayed a chemical on their community, and got sued for millions. When is this going to happen in Pierre? Who knows... Can we afford it?
No.
As I recall, about 80% of the West Nile victims are over the age of 70. Not saying that it's okay to die if you're over 70, but it's fairly well known that at higher ages people are more susceptable to the many ills of life. According to all the statistics, the death rate for West Nile is "less than 1%" yet, this malady is treated like a nationwide epidemic, worthy of spraying dangerous chemicals all over your yard, where your small children play. Would it surprise anyone to find out that West Nile is NOT a mosquito disease, but instead a BIRD disease? So the only real way to get rid of West Nile is to kill all the birds within 30 miles of Pierre. But birds are fuzzy wuzzy critters and nobody wants to stir up the political storm that would undoubtably make them "bird killer Jones". Hard to win elections with that kind of moniker.
Instead, lets spray those pesky critters than not even a mother could love. The fog has got to hit the mosquito on the back to kill it, and can anyone tell me the life span of a mosquito?
The real issue here is, as always, money. There are grants for spraying for mosquitos. Chemical companies gain billions from these types of grants. Chemical company lobbyists make sure there are West Nile mosquito control grants. Once again, the American people pay for something that makes corporations big bucks! There is a "No Spray Zone" list, yes, but that isn't too comforting when you look up the side effects of Anvil 10/10. It lives in the grass for 15 weeks, and being a chemical, NEVER disolves. So this stuff eventually ends up in our ground water, or more precisely, your kid's ground water.
One more point to make: 80 years ago, the cancer rate was one in every 10. Today it's one in every three. So how about some of you lazy idiots get on your computers and start researching this issue, instead of not trusting what I'm saying, and then, after that, maybe it might be a good idea to call the mayor.
Really.
In New York State in the year 2000 the common flu killed about 2,000 people. West Nile only killed something like 8. So this town in New York sprayed a chemical on their community, and got sued for millions. When is this going to happen in Pierre? Who knows... Can we afford it?
No.
As I recall, about 80% of the West Nile victims are over the age of 70. Not saying that it's okay to die if you're over 70, but it's fairly well known that at higher ages people are more susceptable to the many ills of life. According to all the statistics, the death rate for West Nile is "less than 1%" yet, this malady is treated like a nationwide epidemic, worthy of spraying dangerous chemicals all over your yard, where your small children play. Would it surprise anyone to find out that West Nile is NOT a mosquito disease, but instead a BIRD disease? So the only real way to get rid of West Nile is to kill all the birds within 30 miles of Pierre. But birds are fuzzy wuzzy critters and nobody wants to stir up the political storm that would undoubtably make them "bird killer Jones". Hard to win elections with that kind of moniker.
Instead, lets spray those pesky critters than not even a mother could love. The fog has got to hit the mosquito on the back to kill it, and can anyone tell me the life span of a mosquito?
The real issue here is, as always, money. There are grants for spraying for mosquitos. Chemical companies gain billions from these types of grants. Chemical company lobbyists make sure there are West Nile mosquito control grants. Once again, the American people pay for something that makes corporations big bucks! There is a "No Spray Zone" list, yes, but that isn't too comforting when you look up the side effects of Anvil 10/10. It lives in the grass for 15 weeks, and being a chemical, NEVER disolves. So this stuff eventually ends up in our ground water, or more precisely, your kid's ground water.
One more point to make: 80 years ago, the cancer rate was one in every 10. Today it's one in every three. So how about some of you lazy idiots get on your computers and start researching this issue, instead of not trusting what I'm saying, and then, after that, maybe it might be a good idea to call the mayor.
Contributors
Right now we have four contributors to our little mousehole in the Internet. Our interests are varied, so the content of this site will be varied. My expectation is that we will comment on items of interest on a local, state, national and international level rather than keeping our focus solely on Pierre. Let's face it, Pierre really isn't that big or that interesting.
Wednesday, September 30, 2009
SWEEPS
I am opposed to the SWEEPS program that the Pierre Public Schools have implemented. To summarize the program, once the final bell rings for a class if you're not inside the classroom you're hosed. You are locked out of the room and get a D for the day. Proponents of the program, including students, say that tardiness is virtually eliminated by the program. Many words have been written on this subject about how in the "real world" people who are late for jobs face disciplinary action including termination. They feel that students need to learn this lesson early and SWEEPS is a good way to do this.
However, in the "real world" if your employer had a program in the employee handbook stating how tardiness was going to be handled and then they deviated from that program and did something radically different, you would have grounds for a nice, juicy lawsuit. The same situation exists here.
The school has a program in their handbook on how they are to handle tardiness. The SWEEPS program was implemented as supposedly a "implementation change", but the results are very different from what's in the student handbook.
My personal thought is that there should be a penalty for tardiness. Being locked out of class and having to catch up is a big enough pain without adding the insult of the reduction in grade as well, especially for a first offense. I think that's a bit harsh, and would argue that the same exists in the "real world" where flat tires happen, kids are sick, traffic jams up, cars don't start etc, etc. Tardiness is a concern when it's an ongoing problem, not a single event.
However, in the "real world" if your employer had a program in the employee handbook stating how tardiness was going to be handled and then they deviated from that program and did something radically different, you would have grounds for a nice, juicy lawsuit. The same situation exists here.
The school has a program in their handbook on how they are to handle tardiness. The SWEEPS program was implemented as supposedly a "implementation change", but the results are very different from what's in the student handbook.
My personal thought is that there should be a penalty for tardiness. Being locked out of class and having to catch up is a big enough pain without adding the insult of the reduction in grade as well, especially for a first offense. I think that's a bit harsh, and would argue that the same exists in the "real world" where flat tires happen, kids are sick, traffic jams up, cars don't start etc, etc. Tardiness is a concern when it's an ongoing problem, not a single event.
Pierre Budget
The city of Pierre just approved a $41 million dollar budget. This is just a week or so after a story hit the paper about how they had to cut $910,000 from the budget. After spending hours working the budget over, they finally trimmed $5,000. Seriously? Well, at that rate they would need almost 200 more meetings to get to their target.
Since that would be impossible, they did what every other government body has done when faced with a similar situation. The raided the reserves cookie jar for the $910,000, took out another $2 million from the electrical department reserves "just in case", and passed the budget.
We have a $41,000,000 budget for the city with roughly 14,000 residents and they cut a whopping $5,000 from their budget. Wow. Way to tighten the belts there people. Oh but wait, that's not the end of the joy. This "new improved" budget includes a 4% increase in electrical rates, and a 3% increase in water rates!
Additionally their number crunching is including a 3.5% increase in sales taxes collected. Has anyone else heard about Sioux Falls, the growth wunderkind of South Dakota, having problems with their budget because sales figures are off dramatically which is causing budgetary shortfalls? No? How about state numbers on sales tax? Oh.. guess it's just me.
It wasn't that long ago that the city was raising rates and changing their minimum usages (ie: hidden rate change), and here they go doing it again. Why? Well according to Mayor Gill, they need $21,000,000 to overhaul the electrical system to "meet Pierre's growth". Does anyone even look at economic numbers down there? Are we really growing that rampantly?
Then today in the Journal, I see that they are allocating $53,000 for a road design to go from River Rim to Country Drive. Do we have the money budgeted to build the road, or are we just designing it for when we finally get around to building the road? Heck, I could have done ten times better on balancing the budget just by cutting this line item. The residents there already have a road. This is another road, just in case.
What has the city said that they are going to spend your money on? And this is just a recent list...
$20,000,000 on a water treatment plant
$21,000,000 on electrical system upgrades
$9,000,000 on a water splashy park
$75,000 for design on a library expansion
$53,000 for design on a road to serve 1 block of houses
$70,000 for design of a possible parking garage for Pierre St, IF they get participation from the businesses
The list goes on and on... well, until it hits $41 million obviously.
Since that would be impossible, they did what every other government body has done when faced with a similar situation. The raided the reserves cookie jar for the $910,000, took out another $2 million from the electrical department reserves "just in case", and passed the budget.
We have a $41,000,000 budget for the city with roughly 14,000 residents and they cut a whopping $5,000 from their budget. Wow. Way to tighten the belts there people. Oh but wait, that's not the end of the joy. This "new improved" budget includes a 4% increase in electrical rates, and a 3% increase in water rates!
Additionally their number crunching is including a 3.5% increase in sales taxes collected. Has anyone else heard about Sioux Falls, the growth wunderkind of South Dakota, having problems with their budget because sales figures are off dramatically which is causing budgetary shortfalls? No? How about state numbers on sales tax? Oh.. guess it's just me.
It wasn't that long ago that the city was raising rates and changing their minimum usages (ie: hidden rate change), and here they go doing it again. Why? Well according to Mayor Gill, they need $21,000,000 to overhaul the electrical system to "meet Pierre's growth". Does anyone even look at economic numbers down there? Are we really growing that rampantly?
Then today in the Journal, I see that they are allocating $53,000 for a road design to go from River Rim to Country Drive. Do we have the money budgeted to build the road, or are we just designing it for when we finally get around to building the road? Heck, I could have done ten times better on balancing the budget just by cutting this line item. The residents there already have a road. This is another road, just in case.
What has the city said that they are going to spend your money on? And this is just a recent list...
$20,000,000 on a water treatment plant
$21,000,000 on electrical system upgrades
$9,000,000 on a water splashy park
$75,000 for design on a library expansion
$53,000 for design on a road to serve 1 block of houses
$70,000 for design of a possible parking garage for Pierre St, IF they get participation from the businesses
The list goes on and on... well, until it hits $41 million obviously.
You get a “D” in Deficit
• $1,000,000 budget deficit. (Cost: $1,000,000 tax-payer dollars to make-up)
• Hours upon hours combing out unnecessary spending (Cost: days of paid salary for politicians from tax payers)
• Landing only a $5,000 difference. (Cost: Priceless)
• Hours upon hours combing out unnecessary spending (Cost: days of paid salary for politicians from tax payers)
• Landing only a $5,000 difference. (Cost: Priceless)
Welcome to Trouble in River City, South Dakota
There's trouble in River City. Trouble that starts with a "T" and rhymes with "P" and P stands for Pierre. In this blog, we're going to be exploring all the things that seem to be troublesome for moving our community forward, and ensuring that our city leaders act with integrity, and with the taxpayers in mind.
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