My Republican friends are all trending toward Conspiracy Theories to explain what happened and what is happening to the US economy. The party of wealth creation and free markets presided over the greatest wealth destruction in a century, and there must be some explanation. It couldn't happen without some invisible hand. Whose could it be?
The military industrial complex? Mostly Republican. The bankers. Republican. Insurers and financial engineers. Republican. Detroit auto executives? The brainiacs who wanted to hobble government by throttling regulatory capacity. Republican. It is a bad time to be a Republican. Now don't get me wrong. I'm not giving the Democrats a free pass. Far from it.
But to watch the Republican leaders in Congress walk en masse to the evening news microphones and solemnly say what America needs is tax cuts, and to hear their talk show bloviators hope that President Obama fails-- all this, in his first week-- well, it is a performance in spitting sand.
Among wealthy Republicans, who needs a tax cut when stock market losses will dramatically lower their April taxes and in years to come? The rest of America doesn't need a tax cut: America needs jobs, confidence and security. And, for thinking Republicans, cutting taxes at a time of severe recession makes no more sense than cutting taxes in a time of war. Which happened, of course, thanks to their incurious leader, George W. Bush.
To my Republican friends: don't turn your back on President Obama and his administration's efforts; necessary responses to emergencies your policies triggered. Yes I know Robert Rubin and President Clinton did Wall Street's work in the 1990's. But the wheels came off the wagon when you were at the wheel; you just look worse for denial. If you are going to be the minority party, the party of opposition, then stand for something constructive along the lines of reviving the economy by supporting new industries and, above all, transparency and accountability in the disposition of a trillion dollars or more of future obligations to taxpayers. Don't whine about the nationalization of industries, when it was your party's policies that so badly miscalculated risk. Abjure the fraud and corruption that took over financial markets. Reject the K Street Project.
I wonder what percentage of private jets hiding in hangers belong to Republicans. There are no escape routes for 99 percent of Americans from the peril we are in. Think about it: if the Democrats fail-- as you apparently hope they will-- the GOP could inherit an even greater mess than the one we are in. Cutting taxes is going to be the last thing on anyone's mind should that happen. So. Mess up your hair styles. Loosen your ties. And look contrite for a change. To err is human, to forgive is divine.
Thursday, January 29, 2009
Wednesday, January 28, 2009
Throw State Farm Insurance Out of Florida! By Geniusofdespair
(Hit image to enlarge it.)Simple: If State Farm won't carry our property insurance don't let them do ANY INSURANCE BUSINESS IN THE STATE OF FLORIDA.
No cherry picking State Farm! Insurance Companies tried this years ago in New Jersey. When the State refused to let them write any auto policies they backed off.
Solar energy, not baseball: how to create thousands of new jobs in a time of economic crisis, by gimleteye
I never liked the deal for a new professional baseball stadium in Miami. I never have. Today's front page story in The Miami Herald gives me reason to like it even less. I could enumerate my reasons (Michael Lewis, of Miami Today, has done it better). My reasons probably correspond with lots of our readers'. But instead I'll just focus on this one theory, stated by Mayor Carlos Alvarez at the end of the article: "The stadium will create thousands of jobs."
I disagree that serial event venues-- like the Homestead Raceway or the Performing Arsht Center-- create thousands of jobs. What they do create is transient profits for engineering and construction firms and temporary jobs that fade away once the project is finished. How many permanent jobs and at what pay scale will be created by a new baseball stadium? I'd like to see them, and measure the nonsense against what was promised for the Arsht Center.
Here is what I'd like to see before any baseball stadium in built in Miami: put a solar panel and battery storage for solar energy on every rooftop in the county.
First of all, provide through an ease-to-access county fund the opportunity for citizens to lease or purchase solar at a low cost, to demonstrably lower monthly energy costs. Second, require equipment suppliers to manufacture and assemble the majority of components in Miami-Dade County. Third, provide installation training and certification to engineers and installers through a program that is made available to local, small businesses. Tax credits and insurance issues should also be part of the plan, to create a low threshold for entry and allow for business growth. Require FPL's participation, but make the program independent of its influence that has proven so irresponsible in Miami-Dade. Finally, use county-funded business services to promote the program and participants to other parts of the state and nation.
Let me put it bluntly: stop this idiocy that entertainments provide economic growth. They don't! If half the energy spent by county and city staff on making more millions for millionaire sports entrepreneurs and players was put into removing the obstacles to growing jobs through solar and other sustainable technologies, there would be more hope for the South Florida than any sports fantasy could ever provide. Oh, but the critics say, government shouldn't be involved in telling the free market what to do. EX-CUSE ME?
Put another way: if government can subsidize so much of so little consequence, why can't it find something of substance to do first?
I disagree that serial event venues-- like the Homestead Raceway or the Performing Arsht Center-- create thousands of jobs. What they do create is transient profits for engineering and construction firms and temporary jobs that fade away once the project is finished. How many permanent jobs and at what pay scale will be created by a new baseball stadium? I'd like to see them, and measure the nonsense against what was promised for the Arsht Center.
Here is what I'd like to see before any baseball stadium in built in Miami: put a solar panel and battery storage for solar energy on every rooftop in the county.
First of all, provide through an ease-to-access county fund the opportunity for citizens to lease or purchase solar at a low cost, to demonstrably lower monthly energy costs. Second, require equipment suppliers to manufacture and assemble the majority of components in Miami-Dade County. Third, provide installation training and certification to engineers and installers through a program that is made available to local, small businesses. Tax credits and insurance issues should also be part of the plan, to create a low threshold for entry and allow for business growth. Require FPL's participation, but make the program independent of its influence that has proven so irresponsible in Miami-Dade. Finally, use county-funded business services to promote the program and participants to other parts of the state and nation.
Let me put it bluntly: stop this idiocy that entertainments provide economic growth. They don't! If half the energy spent by county and city staff on making more millions for millionaire sports entrepreneurs and players was put into removing the obstacles to growing jobs through solar and other sustainable technologies, there would be more hope for the South Florida than any sports fantasy could ever provide. Oh, but the critics say, government shouldn't be involved in telling the free market what to do. EX-CUSE ME?
Put another way: if government can subsidize so much of so little consequence, why can't it find something of substance to do first?
Turkey Point: Will Fallout Leave You Gasping Toxic Air? By Guest Blogger Miacane
(Hit on image to enlarge it)Florida Power and Light, the star player in many of our fine environmental justice efforts (Barley Barber swamp being the latest), could well be the center of another. All we hear about from our ratings-obsessed news media recently (aside from new administration and economic news) is the overarching threat of terrorism and the calamity of the Wars in Iraq (and occasionally a place called Afghanistan). They've talked over all of the "nuclear threats" facing us from foreign nations, but never have they really focused on the threats in our own backyard:
Turkey Point goes forgotten by most of the county, churning away providing us power. The only times we ever really hear about it are when things go wrong ($6 million hole anyone?). Thankfully, so far, things haven't gotten to the critical point. However, with their plan to put two more reactors at the site, it's important for us to consider what would happen in the event of the worst situation: a nuclear meltdown.
We never hear about it from them, because honestly, what kind of PR would that be for their environmental conscience?
A few years ago I ran across a fallout map for Turkey Point, and the estimated affected areas, as well as the evacuation plans in the event of a catastrophe. After an hour of searching on Google, I found the very well-hidden document once again! Keeping in mind that winds would alter this a bit (radiation spikes were measured in Canada following Chernobyl), this diagram shows what areas would be primarily affected by the radiation. So if you're in these areas, you might want to consider investing in a fallout shelter, maybe some face masks, or just donating your time to fighting FPL's environmentally-negligent agenda. Either way, stay safe...and don't forget to stock up on that cherry flavored iodide for the kids!
State Records on Senate Candidates. by Geniusofdespair
Kendrick Meek and Dan Gelber might say they are running...but here is who the State has listed as actually running for U.S. Senator. (Hit on image to enlarge it)
Tuesday, January 27, 2009
Miami Herald’s Jim Morin on County Commission Bailout. By Geniusofdespair
We have one the countries top cartoonists, Jim Morin, at the Miami Herald. Lucky us. He did this cartoon today (hit to enlarge it) which goes with my blog of yesterday, lampooning the County Commission. His caricatures of Commissioners Vile Natacha Seijas and Bully Joe Martinez are on the money. Be forewarned, if you hit the link above there is an ad at top with a heaving fat belly. Mesmerizing...like watching yuletide logs (damn went back, the belly is gone)."Paving Paradise": a new book worth buying, by St. Pete Times journalists ... by gimleteye
"Paving Paradise: Florida's Vanishing Wetlands and the Failure of No Net Loss" by St. Pete Times' journalists Craig Pittman (Author), Matthew Waite (Author) is about to be released. It's a book I've been waiting for.
Only a few newspapers raised a skeptical eye at the outrageous excess of the housing asset bubble, now crashed, while it was occurring. Notably, South Florida's main newspapers were absent. The Herald continues to publish excellent investigative series on the fallout of the housing implosion, but notably fails to connect for readers the political origins of the worst economic crisis since the Depression; a crisis whose flip side is the deterioration of the environment and quality of life that made Florida attractive in the first place.
The Times' 2006 series, co-authored by Pittman with Matthew Waite, "Florida's Vanishing Wetlands" was the most devastating indictment of the growth-at-any-cost policies that rule Florida to appear in any newspaper before or since. Read it yourself and understand the difference between a newspaper owned by a foundation (The Times) and newspapers owned by corporations (The Herald) that pay lip service to the "fire wall" between publishers, executives and real estate advertisers and their lobbyists. You can pre-order Pittman and Waite's book at Books and Books in Coral Gables.
... click 'read more'.
The Review at Amazon says: "This is an exhaustive, timely, and devastating account of the destruction of Florida's wetlands and the disgraceful collusion of government at all levels. It's an important book that should be read by every voter, every taxpayer, every parent, every Floridian who cares about saving what's left of this precious place." - Carl Hiaasen "Pittman and Waite pulled the lid off federal and state wetlands regulation in Florida and peered deep into the cauldron of 'mitigation,' 'no net loss,' 'banking,' and the rest of the regulatory stew. This is an eye-opening, must-read book." - J. B. Ruhl"
Florida possesses more wetlands than any other state except Alaska, yet since 1990 more than 84,000 acres have been lost to development despite presidential pledges to protect them. How and why the state's wetlands are continuing to disappear is the subject of "Paving Paradise". Journalists Craig Pittman and Matthew Waite spent nearly four years investigating the political expedience, corruption, and negligence on the part of federal and state agencies that led to a failure to enforce regulations on developers. They traveled throughout the state, interviewed hundreds of people, dug through thousands of documents, and analyzed satellite imagery to identify former wetlands that were now houses, stores, and parking lots. Exposing the unseen environmental consequences of rampant sprawl, Pittman and Waite explain how wetland protection creates the illusion of environmental protection while doing little to stem the tide of destruction. What is happening to Florida's 'protected' wetlands?
Only a few newspapers raised a skeptical eye at the outrageous excess of the housing asset bubble, now crashed, while it was occurring. Notably, South Florida's main newspapers were absent. The Herald continues to publish excellent investigative series on the fallout of the housing implosion, but notably fails to connect for readers the political origins of the worst economic crisis since the Depression; a crisis whose flip side is the deterioration of the environment and quality of life that made Florida attractive in the first place.
The Times' 2006 series, co-authored by Pittman with Matthew Waite, "Florida's Vanishing Wetlands" was the most devastating indictment of the growth-at-any-cost policies that rule Florida to appear in any newspaper before or since. Read it yourself and understand the difference between a newspaper owned by a foundation (The Times) and newspapers owned by corporations (The Herald) that pay lip service to the "fire wall" between publishers, executives and real estate advertisers and their lobbyists. You can pre-order Pittman and Waite's book at Books and Books in Coral Gables.
... click 'read more'.
The Review at Amazon says: "This is an exhaustive, timely, and devastating account of the destruction of Florida's wetlands and the disgraceful collusion of government at all levels. It's an important book that should be read by every voter, every taxpayer, every parent, every Floridian who cares about saving what's left of this precious place." - Carl Hiaasen "Pittman and Waite pulled the lid off federal and state wetlands regulation in Florida and peered deep into the cauldron of 'mitigation,' 'no net loss,' 'banking,' and the rest of the regulatory stew. This is an eye-opening, must-read book." - J. B. Ruhl"
Florida possesses more wetlands than any other state except Alaska, yet since 1990 more than 84,000 acres have been lost to development despite presidential pledges to protect them. How and why the state's wetlands are continuing to disappear is the subject of "Paving Paradise". Journalists Craig Pittman and Matthew Waite spent nearly four years investigating the political expedience, corruption, and negligence on the part of federal and state agencies that led to a failure to enforce regulations on developers. They traveled throughout the state, interviewed hundreds of people, dug through thousands of documents, and analyzed satellite imagery to identify former wetlands that were now houses, stores, and parking lots. Exposing the unseen environmental consequences of rampant sprawl, Pittman and Waite explain how wetland protection creates the illusion of environmental protection while doing little to stem the tide of destruction. What is happening to Florida's 'protected' wetlands?
Dan Gelber is in the Running for Florida's U.S. Senator. By Geniusofdespair
Newly elected State Senator, Dan Gelber (he replaced Gwen Margolis), has announced that he is throwing his hat in the ring to become the Junior Senator from Florida, to replace that awful Mel Martinez. He joins Congressman Kendrick Meek who announced earlier this month that he too would run.Has either of these guys done polling in the North of the State and the I-4 Corridor?
I am a big supporter of Dan Gelber (not with money, just support). I requested a meeting with him years ago and got a one-on-one with him. Imagine that.
Monday, January 26, 2009
Miami's media still MIA on housing crash impacts, by gimleteye
Miami-Fort Lauderdale is the most overbuilt market in the nation for subdivision homes, according to a report released last Thursday by housing market data provider Metrostudy. You didn't read the story in The Miami Herald.
Six out of the top ten areas of the nation with the most oversupply of subdivision housing are in Florida. That's quite a record, but local readers at the epicenter of the political and economic ground zero of the housing asset bubble and collapse wouldn't have seen it. You had to read the Fort Myers News-Press for that.
Instead on Saturday, the Herald published "New rules raise the bar for condo mortgages in Florida." (Miami Herald, Jan 24, 2009). The story skips past the vast oversupply of condos in Miami and focuses on grievances against Fannie Mae's new lending bar against certain condominiums in Miami.
The article could easily have moved in the direction of reporting how Fannie Mae was responding to its own dire financial circumstances, brought about by greedy executives paid hundreds of millions to inflate the risk to taxpayers to the bursting point. That point is buried in the middle of the story: "Charles Foschini, vice chairman of debt and equity finance for brokerage CB Richard Ellis in Miami, said Fannie was protecting investors, borrowers and taxpayers, as it should in a climate of increased risk."
Instead the focal point of the Herald's report is that Fannie Mae will be making it even harder to fill buildings that are struggling under the weight of low occupancy, high maintenance costs, and foreclosures as credit tightens. The story leans to the point of view of South Florida real estate consultant Jack McCable, who says Fannie Mae's timing "couldn't be worse." Then it goes on, to end: ''To have the major source of loans draw a line through us is terrible; it's wrong and it shouldn't happen,'' Dodge said. "The feds can't pull the rug out from under us.''
The timing couldn't be worse; a result in part because Miami's media was part and parcel of the building boom and housing asset bubble. Without independent criticism of the bubble as it was inflating by the media, how was any countervailing force to build? Critics of the boom--environmentalists, for instance-- were given short shrift by the mainstream media; it was OK to be an advocate for wildlife, for instance, but not for economics which were, by some form of reasoning influenced by advertisers, only the provenance of qualified, sober, community-minded business interests. The Miami Herald, in particular, stifled any reporting of dissent or breath of consequences. It is still missing in action, on connecting the dots of the political origins in Miami of the housing bust despite strong investigative reporting like "Borrowers Betrayed" and "House of Lies". Those focus on poor exploited victims of fraud. In 2005, former president of the Latin Builders Association Willy Bermello was given the space on the Herald editorial page to write, "The bubble is not latex, it is stainless steel," the Herald editorial board allowed no counterpoint, no hint of doubt; it still is missing the story of the political origins of this economic disaster and its conception in subdivisions allowed to proliferate in Miami-Dade farmland.
Not only should the rug be pulled out, the US Department of Justice should go after those who caused this economic calamity.Would Alex Acosta, the US Attorney for Miami, be willing to test the principle of the "Honest Services Act" rule, as DOJ did in Palm Beach County?
The concept of “honest services” is derived from 18 U.S.C. Chapter 63 on Mail Fraud.
Under 18 U.S.C. § 1341 (Frauds and swindles),
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or
other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both.
And, pursuant to 18 U.S.C. § 1343 (Fraud by wire, radio, or television): Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both.
Fixin' to pitch a fit over Wall St. greed
By Jay Bookman
The Atlanta Journal-Constitution
Monday, January 26, 2009
If you're looking for a place to put the pittance you salvaged from
the stock market, I've spotted the next hot commodity, the next growth
industry. Under these conditions, demand is going to soar for this
item, and there's money to be made.
You ready? I'll whisper it in your ear, just between us friends:
"Pitchforks."
Yup, pitchforks. With good solid handles and sharp tines. When the
angry mobs start assembling to march on Wall Street and Washington,
ready to take out their anger at the greed and excess of the last few
years, they're gonna need pitchforks and torches. We'll sell 'em by
the thousands, like Obama buttons at the inauguration.
Tar-and-feather futures might not be a bad investment either.
I'm kidding of course, but only sort of. Like a lot of Americans, I'm
aggravated and frankly astonished to see the sense of royal
entitlement to other people's money that developed over the years on
Wall Street. And nothing seems to shake it.
The story of Bank of America, Merrill Lynch and Merrill's former CEO
John Thain illustrates that sense of entitlement all too well.
Last year, Merrill Lynch lost tens of billions of dollars —- $15
billion in the last quarter alone. Yet even after that performance,
Merrill executives felt they were entitled to billions in bonuses paid
with stockholders' money.
It didn't matter that Merrill's losses were so bad that in effect the
brokerage had to be rescued by taxpayers. It didn't matter that the
U.S. Treasury had to give Bank of America a total of $45 billion in
TARP funds to help the bank buy Merrill and save it from bankruptcy.
Not even that was enough to shake the sense of royal entitlement. Late
last month, just before the merger was made official and with Bank of
America still finalizing the taxpayer subsidy, Merrill executives
collected an estimated $3 billion to $4 billion in bonuses. They even
accelerated the payment schedule by a month to make sure the money
flowed their way before anybody could stop it.
Like I said: Pitchforks.
Thain, Merrill's CEO, at first tried to include himself in the gravy
train, pushing for a $10 million bonus even as the company collapsed.
Public outrage prevented that injustice, but it did not stop Thain
from pocketing a separate $9.7 million payment triggered by the change
of ownership. That was on top of the $15 million bonus he received
just for taking the Merrill job just a year earlier.
And as the cherry on the sundae, Thain had also spent an estimated
$1.2 million just redecorating his office.
On the scale of threats to the economy, such sums are admittedly
almost too minor to notice. Officials in government and on Wall Street
are trying to free up the flow of credit; they're trying to bolster
confidence in the banking industry; they're trying to save the jobs of
millions of Americans. And the honest ones admit that they aren't
really sure what will turn things around.
"The answer is nobody knows. The economists don't know. All you know
is you throw everything at it …" Warren Buffett said last week. "What
we do know is to stand by and do nothing is a terrible mistake or to
follow Hooverlike policies would be a mistake."
The American people seem to understand that. President Obama said in
his inaugural address that it's time to put away childish things, and
most Americans have taken a pretty mature approach to a frightening
situation.
However, their support for committing hundreds of billions of
additional taxpayer dollars to corporate bailouts hangs on the belief
that Wall Street shares their understanding of the gravity of this
situation. People have lost half of their life savings, and perhaps
their homes and jobs too, and they want some assurance that the greed
and excess has ended. They want to know that they're not being scammed
again.
And if government officials aren't willing or able to provide that
assurance —- well, the public probably won't respond with pitchforks.
They'll just insist the bailout be stopped in its tracks, and it'll be
hard to blame them.
jbookman@ajc.com
Six out of the top ten areas of the nation with the most oversupply of subdivision housing are in Florida. That's quite a record, but local readers at the epicenter of the political and economic ground zero of the housing asset bubble and collapse wouldn't have seen it. You had to read the Fort Myers News-Press for that.
Instead on Saturday, the Herald published "New rules raise the bar for condo mortgages in Florida." (Miami Herald, Jan 24, 2009). The story skips past the vast oversupply of condos in Miami and focuses on grievances against Fannie Mae's new lending bar against certain condominiums in Miami.
The article could easily have moved in the direction of reporting how Fannie Mae was responding to its own dire financial circumstances, brought about by greedy executives paid hundreds of millions to inflate the risk to taxpayers to the bursting point. That point is buried in the middle of the story: "Charles Foschini, vice chairman of debt and equity finance for brokerage CB Richard Ellis in Miami, said Fannie was protecting investors, borrowers and taxpayers, as it should in a climate of increased risk."
Instead the focal point of the Herald's report is that Fannie Mae will be making it even harder to fill buildings that are struggling under the weight of low occupancy, high maintenance costs, and foreclosures as credit tightens. The story leans to the point of view of South Florida real estate consultant Jack McCable, who says Fannie Mae's timing "couldn't be worse." Then it goes on, to end: ''To have the major source of loans draw a line through us is terrible; it's wrong and it shouldn't happen,'' Dodge said. "The feds can't pull the rug out from under us.''
The timing couldn't be worse; a result in part because Miami's media was part and parcel of the building boom and housing asset bubble. Without independent criticism of the bubble as it was inflating by the media, how was any countervailing force to build? Critics of the boom--environmentalists, for instance-- were given short shrift by the mainstream media; it was OK to be an advocate for wildlife, for instance, but not for economics which were, by some form of reasoning influenced by advertisers, only the provenance of qualified, sober, community-minded business interests. The Miami Herald, in particular, stifled any reporting of dissent or breath of consequences. It is still missing in action, on connecting the dots of the political origins in Miami of the housing bust despite strong investigative reporting like "Borrowers Betrayed" and "House of Lies". Those focus on poor exploited victims of fraud. In 2005, former president of the Latin Builders Association Willy Bermello was given the space on the Herald editorial page to write, "The bubble is not latex, it is stainless steel," the Herald editorial board allowed no counterpoint, no hint of doubt; it still is missing the story of the political origins of this economic disaster and its conception in subdivisions allowed to proliferate in Miami-Dade farmland.
Not only should the rug be pulled out, the US Department of Justice should go after those who caused this economic calamity.Would Alex Acosta, the US Attorney for Miami, be willing to test the principle of the "Honest Services Act" rule, as DOJ did in Palm Beach County?
The concept of “honest services” is derived from 18 U.S.C. Chapter 63 on Mail Fraud.
Under 18 U.S.C. § 1341 (Frauds and swindles),
Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, or to sell, dispose of, loan, exchange, alter, give away, distribute, supply, or furnish or procure for unlawful use any counterfeit or spurious coin, obligation, security, or
other article, or anything represented to be or intimated or held out to be such counterfeit or spurious article, for the purpose of executing such scheme or artifice or attempting so to do, places in any post office or authorized depository for mail matter, any matter or thing whatever to be sent or delivered by the Postal Service, or deposits or causes to be deposited any matter or thing whatever to be sent or delivered by any private or commercial interstate carrier, or takes or receives therefrom, any such matter or thing, or knowingly causes to be delivered by mail or such carrier according to the direction thereon, or at the place at which it is directed to be delivered by the person to whom it is addressed, any such matter or thing, shall be fined under this title or imprisoned not more than 20 years, or both.
And, pursuant to 18 U.S.C. § 1343 (Fraud by wire, radio, or television): Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both.
Fixin' to pitch a fit over Wall St. greed
By Jay Bookman
The Atlanta Journal-Constitution
Monday, January 26, 2009
If you're looking for a place to put the pittance you salvaged from
the stock market, I've spotted the next hot commodity, the next growth
industry. Under these conditions, demand is going to soar for this
item, and there's money to be made.
You ready? I'll whisper it in your ear, just between us friends:
"Pitchforks."
Yup, pitchforks. With good solid handles and sharp tines. When the
angry mobs start assembling to march on Wall Street and Washington,
ready to take out their anger at the greed and excess of the last few
years, they're gonna need pitchforks and torches. We'll sell 'em by
the thousands, like Obama buttons at the inauguration.
Tar-and-feather futures might not be a bad investment either.
I'm kidding of course, but only sort of. Like a lot of Americans, I'm
aggravated and frankly astonished to see the sense of royal
entitlement to other people's money that developed over the years on
Wall Street. And nothing seems to shake it.
The story of Bank of America, Merrill Lynch and Merrill's former CEO
John Thain illustrates that sense of entitlement all too well.
Last year, Merrill Lynch lost tens of billions of dollars —- $15
billion in the last quarter alone. Yet even after that performance,
Merrill executives felt they were entitled to billions in bonuses paid
with stockholders' money.
It didn't matter that Merrill's losses were so bad that in effect the
brokerage had to be rescued by taxpayers. It didn't matter that the
U.S. Treasury had to give Bank of America a total of $45 billion in
TARP funds to help the bank buy Merrill and save it from bankruptcy.
Not even that was enough to shake the sense of royal entitlement. Late
last month, just before the merger was made official and with Bank of
America still finalizing the taxpayer subsidy, Merrill executives
collected an estimated $3 billion to $4 billion in bonuses. They even
accelerated the payment schedule by a month to make sure the money
flowed their way before anybody could stop it.
Like I said: Pitchforks.
Thain, Merrill's CEO, at first tried to include himself in the gravy
train, pushing for a $10 million bonus even as the company collapsed.
Public outrage prevented that injustice, but it did not stop Thain
from pocketing a separate $9.7 million payment triggered by the change
of ownership. That was on top of the $15 million bonus he received
just for taking the Merrill job just a year earlier.
And as the cherry on the sundae, Thain had also spent an estimated
$1.2 million just redecorating his office.
On the scale of threats to the economy, such sums are admittedly
almost too minor to notice. Officials in government and on Wall Street
are trying to free up the flow of credit; they're trying to bolster
confidence in the banking industry; they're trying to save the jobs of
millions of Americans. And the honest ones admit that they aren't
really sure what will turn things around.
"The answer is nobody knows. The economists don't know. All you know
is you throw everything at it …" Warren Buffett said last week. "What
we do know is to stand by and do nothing is a terrible mistake or to
follow Hooverlike policies would be a mistake."
The American people seem to understand that. President Obama said in
his inaugural address that it's time to put away childish things, and
most Americans have taken a pretty mature approach to a frightening
situation.
However, their support for committing hundreds of billions of
additional taxpayer dollars to corporate bailouts hangs on the belief
that Wall Street shares their understanding of the gravity of this
situation. People have lost half of their life savings, and perhaps
their homes and jobs too, and they want some assurance that the greed
and excess has ended. They want to know that they're not being scammed
again.
And if government officials aren't willing or able to provide that
assurance —- well, the public probably won't respond with pitchforks.
They'll just insist the bailout be stopped in its tracks, and it'll be
hard to blame them.
jbookman@ajc.com
The Miami Herald Editorial Board Weighs in on Miami-Dade Bailout. By Geniusofdespair
The Miami Herald’s Editorial Board agrees with my January 22nd post that the proposed Miami-Dade County bailout for small businesses is an excuse to add to Commissioner’s slush funds. The Herald says just that, and more interesting:The county government already helps small businesses, and it does so through a process that determines qualifications, viability and job-creating ability. It's called the Community and Economic Development agency. The county also appropriates money to the Beacon Council for furthering economic development here and for nurturing existing firms. Miami International Airport and the Port of Miami also have had programs to boost businesses connected to their industries. The county's agencies follow set guidelines and must be impartial in awarding grants and other aid.
I see this Bailout idea of Commissioner Rolle as just another example of trading money for votes. So, County Commissioners, do not vote for the 13 Commission District Bailout, as I said:
“Let’s get out of crisis-think and really do a reality check on the use of shrinking County funds.”
Sunday, January 25, 2009
The All Powerful "Non-Group" in Miami. By Geniusofdespair
According to a 2004 article in BNet, Raul Masvidal said he and Armando Codina were the first Cuban Americans to join the “Non-Group” (Miami’s power elite in the 80’s). In (disgraced Miami Beach's) Former Mayor Alex Daoud’s tell-all book, “Sins of South Beach”, he said Union Leader, Ed Stevens, named some of the members of the Non-Group during a meeting they had in 1984(5?):
Ted Arison, CEO of Carnival; Alvah Chapman, CEO of Knight Ridder; David Paul, CEO of CenTrust; Arthur Courshon, CEO of Jefferson National Bank; Stephen Muss owner of the Fontainebleau (Muss calls himself a "third generation developer" according to BNet).
Daoud said Stephens also said rumor had it that auto giant, Norman Braman was affiliated with the group, and: “Several Cubans have been allowed to join, but they’re the leaders of the Latin Builders Association.” Stephen’s said (Daoud’s recollection) of the group: “They’re a very secretive organization, and it’s impossible to get a complete list of the members.”
Daoud asked Stephens why, if the Non-Group is so powerful, hasn’t the Miami Herald written about them. Stephen’s told Daoud: “The Herald isn’t going to write about them. They control the newspaper. Never forget that the Miami Herald is a moneymaking corporation with no social conscience. They only care about advertising dollars.”
So, when Gimleteye emphasizes the power wielded by certain individuals, think about the Non-Group. Miami is pretty much still run by developers and a select few. Names might change but the power structure is still there. Frankly, I was surprised at the power of bankers to manipulate our political system, that Daoud describes. Bankers get off easy on our pages.
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