Tag: banks

Survival of the Shorties

Just so you know up front: I’m not big on April Fools jokes. The only thing I ever did was send a new maintenance guy to fix a toilet in a non-existent apartment. My boss was more amused by it than I was. Anyways, on to the Shorties!

Unemployment is Certainly No Joke: It’s high. There’s no sign that it will get better soon. We’re still losing jobs in this economy, and Spring Semester doesn’t end that long off now.  Tim Geithner calls it “unacceptable” but hasn’t really offered a plan on what to do about it. Well then, as long as he’s clear on that! Perhaps we could have some sort of, I dunno, public job creation plan? Well, here’s an “ugly truth” about how you can buff your resume.

Something Approaching Justice: The terrorist who killed a doctor in the middle of a church because he happened to perform a medical procedure he didn’t like (and couldn’t have in any event) has been sentenced to life in prison. The soonest he could possibly get parole is 50 years.

Something Light: Barack Obama Looking at Awesome Things.

Doing Something: It’s better than doing nothing. School tries new ways of stopping bullies that don’t involve platitudes to the victims.

Maybe Doing Nothing Would Be Better?: A doctor talks about unnecessary tests. No, not because a doctor is covering his ass.

Something to do when you grow up: Perhaps something that begins with a K.

Something Old: a little history lesson regarding our nation’s banking issues.

Something Serious: It’s Autism Awareness Month.

Something you probably already suspected: Asset Forfeiture Laws can be horribly abused.

Something that will either horrify or amuse you: Scarface, as performed by pre-schoolers. Come on, it’s only 2 minutes and 11 seconds!

And finally, Something I Totally Do Not Need!: Hello Kitty Message Watches. Price, $620-800.

Paging Dr. Dynasaur!

For the benefit of younger readers: Back in the old days before cell phones, there were pagers. And before that, there was the overhead paging system. Not that many years ago, it was normal to hear things like “Dr. Jones to 4B nursing station, please” on the hospital public address system.

Ok. It’s law now. It looks like the health insurance reform bill that got passed and signed into law was neither as bad as it could be nor as good as it should be. There’s some benefits, and some stuff that’s absolutely odious. However, it is only a first step. At least two crucial things are missing.

First and probably most important is a non-profit health insurance option. The law, as it stands, requires us to all buy health insurance by 2014, which forces us to do business with the very same companies that got us into this mess. The best answer to this problem by far is Alan Grayson’s Medicare-For-Anybody bill, which has 80 co-sponsors so far (click here to sign the petition to demand a vote!). Howard Dean has even endorsed Rep. Grayson at least partly as a result. You remember Howard? The doctor who became a Governor and managed to get health insurance for almost every kid in his state despite the fact that they don’t vote? This bill is revenue neutral for the Government — it won’t raise the deficit a cent because it says the premiums will be set at what it costs to provide the insurance. Bringing this thing to a vote puts the opposition in a tough spot: if Medicare is good enough for Grandma, why isn’t it good enough for me?

The other thing it needs is a program I like to call MediKids. Regular readers have heard me beat this drum before, but we have a system where most health insurance is purchased by employers. And most kids don’t have employers. The existence of an automatic enrollment health insurance program for kids under 18 (and in my ideal dream world, any full time student under 25) would help almost every family in America. It would of course have a disproportionate effect on low income families that are likely to have inadequate insurance for themselves and their kids, if they have insurance at all. Moreover, by keeping our kids healthy, it would improve schools and the quality of our future workforce. Even if there were a modest premium associated with the program like there is for Vermont’s Dr. Dynasaur program, it would be worthwhile.

In Closing: Why aren’t you in school, you lazy bastards?; stupid banker tricks; three times more Chapter 7 than Chapter 13 bankruptcies; air worship is like air guitar for shrine visits (maybe the Catholics could try this? Then it doesn’t matter if the priest is a pedophile); as fast as financial reform made it through committee, I must wonder what political favors are embedded in it; and let Mr. Otis get you high. I mean, like to the 20th floor.

Shorties Row

Follow Up on Sexting Case: Remember a while back we learned about a Pennsylvania prosecutor who decided to prosecute girls whose pictures had been taken unless they submitted to a re-education class on what it means to be a girl? A judge has ruled that the parents have the right to block the prosecution. No ruling on the fundamental Constitutional issue of not letting anybody see the evidence.

Stick a fork in the airlines, they’re done: TSA official has gone on the record that full body scans will very likely become mandatory for airline passengers, despite the fact that the scanners don’t really do half of what they would like us to think they do towards deterring — let alone preventing — terrorism. That’s over and above the health and privacy issues. Heck, if they want to strip search everybody, just be honest about it.

In Memoriam: There will be a memorial garden in honor of the pets killed by tainted food. Scroll down for information and links on how to donate.

Why do we need Health Insurance Reform to stop this crap?: Fortis (and probably other insurers that just haven’t been caught yet) has been actively trying to find ways to cancel the policies of HIV positive customers. Stopping recission and punitive cancellation should be a simple, 3-5 page bill that should have unanimous support in both houses of Congress (or else), but no! They want to pass a monster-behemoth bill that nobody has read that’s loaded with oodles of political favors.

Hey Mister, Wanna Buy a Factory?: Factory utilization is near an all time low. This means we have lots of currently unused capacity. Pair that with the current unemployment rate and it sounds like an opportunity to make some stuff and get the economy going again. Maybe you could even get a piece of that new $38,000,000,000 jobs bill to do it.

Modest, by Billionaire Standards: Warren Buffett, one of the richest men in the world, makes do in a 5000 square foot home.

Oh, you knew I couldn’t resist giving you some obligatory Health Insurance Reform items: Susie Madrak got to interview Michael Moore, and here’s part of what he had to say. Ok, the bill is supposed to cost roughly $940,000,000,000, but it’s supposed to save $1,300,000,000,000. Did the progressives win anything here? Enh, a little. This is why buying your abortion coverage separately is a terrible idea for every woman. Well, actually it’s only one of several reasons. And thankfully, Grayson’s Medicare-for-Anybody bill is up to 75 co-sponsors. I love the fact that it’s short, and politically difficult to stand against. It gives me hope that some things can be fixed with this turd in the punchbowl of a bill after it gets passed.

Where Health Care Meets the Scandal of the Day: Senator John Ensign’s office “organized a telephone call Wednesday night to thousands of Southern Nevadans represented by Rep. Dina Titus, where he spoke out against the pending health care reform bill and urged his audience to call her about it.” A local political scientist called the move “clumsy”. Rep. Titus, if you hadn’t guessed, is a Democrat, newly elected in 2008. Now, the interesting thing about this is that today, Senator Ensign got subpoenaed by the Department of Justice. Oh, and his wife. His Chief of Staff. His political advisor. A few local businesses. Probably the local power company. And a veritable “who’s who” of local political rainmakers. And they don’t just want stacks of documents, they want people to appear before the Grand Jury at the end of the month.

No Child Left Behind: What the heck went wrong? I mean, other than “better” as a standard, and rules designed to make even good schools fail.

You mean they want the banks to pay up? Crazy Talk!: It so happens that 82 of the roughly 700 banks that got TARP funds aren’t paying the dividends they owe the Feds.

And now, a moment of Spring: how to tell if last year’s seeds are still good.

Twist the Facts

Yesterday morning, I wrote a post over at Age Against the Machine on British research showing that oral contraceptives reduce women’s risk of death from cancer and cardiovascular disease. Those happen to be the top two causes of death for American women, so it’s a big deal. And we aren’t talking about some teeny study, but over 46,000 women in a study that went on for 39 years. I think this is good news for the vast majority of women!

Yet I could not help but think that this news might not be welcomed by all. After all, there is a segment of our society that might think this encourages promiscuity. When I ran this past my partner, he thought that was just nuts.

But unfortunately, we live in a society where parents withhold vaccines that could someday save a woman’s life not because of safety concerns with the vaccine itself, but because they think she might think it’s ok to have sex (because good girls don’t like sex, good girls are never sexually assaulted, and good girls certainly never have cheating husbands). We live in a society where pharmacists who should know better are arbitrarily deciding not to dispense oral contraceptives because of “moral objections” and/or the mistaken belief that they can cause “abortion” of an embryo that has not implanted (never mind the other medical indications for oral contraceptives, and never mind that these pills prevent pregnancy rather than end it; arguably they prevent abortions by preventing unwanted pregnancy). We live in a society where the so-called-pro-life crowd thinks abortion causes breast cancer. We live in a society where some people value the lives of embryos more than the lives of full-grown adult women and their families.

So yes, I expect this study to be either ignored, mis-quoted, or mis-used by the Religious Right. They will focus on the small but unexplained increased risk of death by accident or violence — See? The Pill increases your risk of [violent] death! —  if they acknowledge the research at all.

Mere minutes after posting, I found this article at the Christian Science Monitor — hardly a “liberal media” source — with the headline “High divorce rates and teen pregnancy are worse in conservative states than liberal states.” It turns out that educated women and access to contraceptives lead to greater family stability and fewer unwed or teen mothers than “that old time religion.” Yet the Religious Right  has hamstrung both trends by getting the Feds to go along with “abstinence only” sex ed, which not only doesn’t work, fails to teach about contraceptives and disease control, and outright lies to children, but attempt to reinforce very outdated gender roles.

And then I read about how the Texas State Board of Education has decided to re-write history, decreeing what may and may not appear in textbooks. Sure, the Civil War was about “states rights” — specifically the right of states to say it’s ok to own other human beings! Sadly, Texas is a large enough textbook market that students around the country may be subjected to this ultra-conservative, highly Protestant, reinterpretation of reality.

You can say what you like about reality, but you can’t change it.

In Closing: 30! 30 bank failures this year, ah ha ha ha! (reference); fattiest fast foods; mortgage insurance providers say “sorry, we won’t cover this fraudulent claim“; obligatory health insurance reform items (notice I don’t call it health care reform, or worse yet HCR which always makes me think HRC instead) includes Go Grayson Go! Put them on the spot of either saying yes to a real public option, or going on the record as being against Medicare!; oh sure, let’s make it more complicated; what recovery?; Oh No! Obama’s Liberal base is “disengaged!” Could that be because they’ve kicked it in the butt at every opportunity?; most Americans think Wall Street needs better (i.e., more) regulation; for that matter, most Americans would like to see the Government make some progress on anything; don’t take the battery for granted; median wealth, $5; and Blog Against Theocracy weekend is coming.

They Don’t Like Baths

Complimentary water bottle, courtesy of the Cashman Cougars of Cashman Middle School.

In Closing: Anybody know where we can score 11 million jobs?; women need to stay the heck out of Utah; aw, poor banks may have to write down some “assets” to what they are worth!; obligatory health insurance reform would be incomplete without pointing out that Rep. Grayson has written a brilliant, 4 page law that would let anybody buy in to Medicare at cost — but only if they want to of course; “Today, Richard Nixon would be considered a flaming liberal. In Nixon’s day, Barack Obama would have passed as a typical conservative….” (my, how the labels have shifted since Archie Bunker’s day!); a picture worth a billion dollars words; poor effing babies; and finally, can everybody shut up about overpaid doctors now? That’s a load of crap! Now CNN tells us the obvious, that some nurses make more than your typical family practice doctor — the guy you actually need for your sore throats and blood pressure meds —  and I bet they have lower student loan debt too.

Economy Jigsaw Puzzle

Normally, you start a jigsaw puzzle with the edge pieces. However, that’s really hard on this one because the fallout of the dysfunctional banking system that resulted in many of our economic issues is in the process of bringing down a foreign nation: Greece.

Mr. Buffett is really good at these puzzles, so let’s let him have a go first. Oh look, he’s put together a housing recovery in 2011 (I think that’s assuming we actually get through all the foreclosures) and a slow recovery. He thinks that something has got to be done to punish the financial whiz kids who got us into this mess, and that our current system of paying for health care is a colossal drain on our economy. This is one of the two richest guys in the world and as nearly as I can tell he didn’t need to defraud anybody to get there, so just maybe we ought to listen to him.

Of course there are other parts of the puzzle that bring into question whether there is really a recovery, even a slow one. We’ve got millions of people who are unemployed, millions more who are “underemployed”, stagnant wages, and just enough inflation to mean the savings rate is going down. Those low interest rates — which were supposed to make businesses borrow money from banks who won’t lend it and renters buy houses they can’t afford (but that are actually tempting people with higher mortgage rates and underwater homes to walk away and buy something nicer and cheaper at a lower rate) — mean that there’s not much point in saving money. That hooks in with lousy consumer sentiment, the continuing (and at least partly bank-caused) bubble and subsequent crash of housing prices, and a trillion with a T dollars in lost economic growth. That’s a million million dollars. $1,000,000,000,000.

See? These puzzles are a lot easier when people work together!

Over by the bankers, brokers, and other financial whiz kids there’s these rumors of “reform” and “consumer financial protections.” Careful, though. If you don’t put that together just right, it’s worse than nothing.

Oh yeah, and in this corner over by underemployment, we unfortunately have government budget deficits. It doesn’t take a financial whiz kid to know that when income is stagnant, unemployment is up, underemployment is high, and not enough jobs are being created, that means tax revenues aren’t what they should be either. That in turn means bigger deficits, even without any sort of spending on economic stimulus. Senator McCain wants to cut that deficit just exactly the way Reagan did, which I suppose means he proposes higher deficits.

The nice people at Forbes think all those government workers need a pay cut. Now riddle me this, Batman: while I understand their sentiment, exactly how is cutting the pay of the guy who delivers my mail or the lady who processes my passport application going to help? That’s just going to exacerbate the “stagnant wages” problem. I feel certain that they can’t really mean cutting pay for high wage workers like our Congressmen and key people in the Executive branch; such a proposal would never make it out of committee. Besides, until campaigns become solely publicly funded, I think you can argue that all those people are underpaid. After all, every one of them spent more to get elected than they will ever make at the job itself!

Of course, state governments don’t have the option of deficit spending. That’s why Nevada is moving most employees to a 4 day workweek. The only way this works, of course, is to make all those offices like the DMV open only 4 days a week. Right, because nobody needs to get a drivers license or car registration on a Saturday, right? That way they aren’t spending money to light, heat, air condition, and clean those buildings all weekend. And I suppose it’s probably good for the environment that all those state workers will be sitting at home instead of getting on the freeway. Maybe they will spend some money on their extended weekends — assuming they aren’t deathly afraid of job cuts.

There’s still pieces missing. I’ll check the box and under the sofa. In the meantime, it’s a pretty ugly picture.

In Closing: How much scientific research is thwarted by harassment that borders on textbook definition terrorism?; the Chile quake actually tilted the Earth on its axis, such that the day is 1.26 milliseconds longer (funny how Pat Robertson isn’t dredging up some made up reason why Chile has a pact! with! Satan! that explains why they had an even bigger quake than Haiti); no **** ***** cuss free week at this **** **** blog!; man accused of selling outdated videogame systems to help a terrorist group; origin of the peace symbol; ok, ok, something on health insurance reform; happy daddies; and your overdue dose of Japanfilter, Cat Costumes. Oddly enough the cat doesn’t look unhappy, and the human has no obvious wounds.

Why Housing Prices Won’t Go Up Soon

I know, I usually talk about housing over on my real estate site.

Today there’s a bunch of conflicting information about whether nationwide, house values are going up or not. Prices fell 2.5% in Q4 of 2009 (not in Vegas, but nationwide), but rose in December, but only if you looked at it on a “seasonally adjusted” basis. That’s a nice way of saying you ignore the fact that prices “always” go down in December. You could get dizzy trying to make sense of this data.

But here’s the thing. 1 in 4 homes is “underwater” right now — the mortgage is more than the house is worth — and it’s more like 7 in 10 here in Nevada. That means among other things, that the owners of those homes have limited ability to pick up and move to a new job, and that unless a very specific set of circumstances apply to them, they can’t realistically reduce their housing costs. Add to that the fact that a record number of mortgages are seriously delinquent or in foreclosure. Add to that the expert opinion that over 6 million delinquent homeowners will not be able to negotiate with lenders and will lose their properties. The mortgage system is overwhelmed and in need of reconstruction, and the latest program announced by the President is little more than a bandage on a chest wound.

So we’re not out of the woods yet, even though there are some signs of a trail ahead.

Here’s the next set of hazards as I see them. First, none of the plans out there do a thing to help legitimate investors. Investors are necessary, because not everybody will own their primary dwelling when all is said and done. If there is to be affordable rental housing, somebody must invest in it. Right now, it’s hard for investors to buy unless they have cash. And right now it’s almost impossible for investors to refinance or get any sort of assistance; somebody decided that only owner-occupants deserve help, so screw the family that rents from the investor. To a lesser extent, a sub-problem of this is the difficulty that non-citizens have getting mortgages for property in the United States. I currently have no, zero, zip, nada sources for mortgages for Asian or European clients (I speak Japanese and French), and can only help Canadians if they plan to live in the property.

Second hazard strikes close to home. Most of my neighbors are underwater on their mortgages. Banks are dumping properties for less than half what they sold for 3 years ago. None of the current refinance or loan modification programs has anything to offer people like me and my neighbors, people who can continue paying the bills each month but are underwater and have interest rates 1-3% above current levels. Now, every book about stock market investing advises that you must have an exit strategy — a plan for when to sell if things go right or even if they go horribly wrong. It’s far better to take a loss, even a loss of 50%, than wait for your losses to get even greater in the vain hope that things will turn around. If you buy on margin, sometimes this decision will be made for you by the brokerage and it is a very painful mercy. This being the case, the rational thing for many of my neighbors is to stop paying the mortgage, buy something nearby for half what they currently owe, and let the bank have their overpriced asset back.

Until banks are forced to face the reality that something must be done to fix every seriously underwater mortgage, and not just the delinquent ones, we will be at risk of more foreclosures coming onto the market. And since they will continue to dump these properties at unrealistically low prices, property values will continue to decline and housing construction will continue to be a money-losing proposition. That will in turn continue to put pressure on the budget of any state or local government that depends on property taxes for revenue, and that will put pressure on the Federal government to make up the inevitable shortfall.

In closing: Mr. Volker has some good ideas, some very smart people agree with him, and don’t cry for the banks (oh, I know you want to do just that!) because they won’t go bankrupt; The Senate is highly dysfunctional right now, with record numbers of cloture votes and 290 bills passed by the House sitting in the docket collecting dust (Hey Reid and Ensign! Get to work, you bums!); unemployed people don’t buy fast food breakfasts; and Rich People Sure Are Different (yeah, they pay almost nothing in taxes).

Shorties Todd

Well, “free” does appear in the title: someone is suing FreeCreditReport.com for charging them a monthly fee for credit monitoring in order to get that “free” credit report.

“How can payrolls and the unemployment rate both go down at the same time?“: More than you want to know about how those figures are manipulated and tortured.

Data bears out common sense: Layoffs are often very bad for the companies that make them. Not only are there severance costs and bad morale (duh), it’s harder to hire back good people when market conditions improve.

Speaking of employment: The President is still of the opinion that small business hiring can and must get us out of this recession. Specifically, he said “Government can’t create these businesses, but it can give entrepreneurs the support they need to open their doors, expand, or hire more workers.” And what does he want to do about it? He wants to expand a couple of SBA programs designed to help well established businesses that already have debt. You know what would really help small businesses? Leveling the playing field with large businesses when it comes to taxes. Dave’s point is that only profits get taxed, which benefits large companies rather than small ones; tax cuts benefit big businesses while shafting the government that needs taxes to run. But let’s face it, Joe’s Hardware Shop has no leverage with city hall, but Wal-Mart can threaten to open in the next town over unless it gets tax breaks.

5th Amendment takes a beating: apparently the Obama Administration reserves the right to assassinate Americans overseas with “special permission.”

Makes me wonder why I bother to pay my mortgage: Here’s your real “phantom inventory,” banks refusing to foreclose on homes where the owner is well over a year in arrears. People are paying credit cards ahead of the mortgage now, which makes sense in a way. Financial planners have always said to pay down your high interest rate debts first! And, well, if the mortgage company is unlikely to foreclose, what incentive is there to pay?

Shackleton’s Whiskey: it’s been freed from ice near the south pole, and sent off for analysis and hopefully recreating lost liquor formulas.

Speaking of drinking: did you know that a 7-11 Double gulp is twice the size of what your stomach should reasonably be able to hold? And, at 64 oz, it’s the equivalent of 8 servings of soda.

And speaking of serving sizes: the FDA wants to crack down on misleading serving sizes on nutrition labels. You know, the ones that say a bowl of cereal is 2 servings, or 6 chips is a serving?

Glad to see someone holding the banks accountable: Cuomo has filed a lawsuit against B of A and several of it’s executives, charging that they hid information from shareholders and lied to the Feds to get bailout money.

And last but not least: a lesson about inflation.

Stay warm and dry, wherever you are.

Reform. For Freedom.

We have officially gotten to the point where corporations control us.

They control how much money we are allowed to make. They control our finances on the national, international, and personal level — badly. They control our health care in a system that is doomed to collapse under the weight of its own expense real soon now. Worst of all, they play by whatever rules they like while squeezing ordinary people to desperation. Now they have a green light to even more openly control our government.

And unless this worthless Congress remembers that the one thing corporations can’t do — yet, anyway — is vote, things are going to get worse rather than better. We desperately need real financial reform now, the kind that restores rules that worked through most of the 20th century and not the kind so riddled with loopholes as to be a gift to the financial services industry. We need insurance reform that puts more of our health care dollars to work providing health care and curtailing the abuse of patients who foolishly want the care they think they (or their bosses) are paying for, not a “reform” that forces everyone to participate in a broken system through mandatory coverage.

“I’m proud to be an American, where at least I know I’m free,” the song goes. Free to do what? Free to get involved in staged protests of issues we don’t understand? Free to loudly proclaim “facts” with no basis in reality? Free to watch propaganda dressed up as news? Free to owe everything to the companies that hire us, care for us, and mis-manage our money with no hope of anything else?

If you don’t mind, I’d prefer a different flavor of freedom.

In Closing: Roman Army Knife; “Um, because it was the right thing to do and we didn’t want any lawyers saying we did wrong later? Was the 5th Amendment repealed while I wasn’t looking?”; nice to see that we are going to count job losses more honestly, but it’s a shame that Mr. Obama will be blamed for “losing” these jobs when he merely counted Bush Administration losses correctly; I couldn’t have said it better either; at least child abuse is down!; where genetic testing and “pro-life” collide; trees are loving global warming (much more so than the polar bears); and Americans are drinking more, but we’re not paying for the Good Stuff. So, uh, maybe the price of Scotch will return to rational levels? No? I thought not.

Wake-Up Call

Wake up call! Come home from the polls
With another one in my Senate!
Don’t you care about Ted anymore?
Care about Ted? I don’t think so!

No 60 votes, health care bill in trouble
So I had to shoot it dead.
Won’t come around here anymore.
Come around here… I don’t feel so bad!

Yesterday, everybody went crazy trying to figure out what went wrong and what was going to happen next. So what went wrong? You can’t blame it all on Coakley’s terrible and tone-deaf campaign as much as some people would like to. The party has to take some blame for not delivering on very darn much.

Very interesting that all of a sudden today, we are talking about financial services reform. The administration spent a year playing nice and begging the banks to do likewise, and now we’re playing hardball. Go figure! My theory is that it’s a combination of quid pro quo (they didn’t do their part towards making sure that seat went to a Democrat, any Democrat), and a desire to at least appear that they are finally going to protect the American people from the predatory financial services industry that has been robbing the economy blind.

So, let’s hope the Democratic party takes the situation in Massachusetts for what it is: a wake-up call. They have 10 months to get their act together! That means doing The People’s Work, and not just for show.

In closing: reasons profiling won’t catch terrorists go beyond Tim McVeigh; don’t feel too bad about your house’s value, even the White House lost value last year (hold the jokes about the President, please); better shoelace tying; and giant cattle.