coolhand's Account Talk

I'm not specifically looking for bad news, it's just that the sources I go to seem to focus on it. But it's main stream stuff for the most part.

Besides, if you want good news, stop by BT's thread. ;)

I should have places <SARCASM> tags around my comment - yuk, yuk:D

Even though we San Diegans are now known as "ENRON by the Sea" I would be looking at Los Angeles or San Francisco as the first major failure. Especially Los Angeles. Los Angeles will not survive the year. They have to be praying for the “Obama Economic Miracle” to get rolling – very soon.
 
OEM, buddy, OEM:D:D
btw, with the knowledge "His Swanage" isn't exactly your favorite pres, but who else would it have been??;)
http://www.slate.com/id/2248566
Don't Short Obama

Why political futures markets got the health care bill so wrong.

By Daniel GrossPosted Monday, March 22, 2010, at 6:05 PM ET


Barack Obama


It would be very difficult to tote up all the times pundits pronounced the health care bill dead, and the prospects for the Obama administration dire—especially after the election of Scott Brown in January. Intrade, the political futures market, which functions as a conventional-wisdom-processing machine, also got health care wrong. Check out this chart for the contract on health care reform being passed by June 2010. The contract is worth 100 if it is passed, zero if it is not. After Brown's election, it slumped to as low as 20. As recently as March 17, it was below 40. Even as late as Friday, it was trading in the mid-80s. These trading data show that "investors" in this market were skeptical of the Obama administration's ability to pass significant health care legislation, right up until the end.

Is there a larger lesson here? (Aside from the obvious one, which is political futures markets usually aren't very good at predicting what actually will happen in the future?) I think so. And it's this: Don't short Obama. In fact, that's been the lesson of Obama's entire career so far.
Think of Obama as a stock. When he came onto the national scene, he was small and undercapitalized. Some investors (i.e., donors and organizers) went long, but plenty of the heaviest hitters bet against him. During the campaign, the prospects of his success were continually downplayed by the Clintons, the national media, and the Republicans.
Advertisement


Those shorting the Obama candidacy got crushed. And since January 2009, so, too, have those who have shorted the Obama presidency—especially the performance of the markets and economy under Obama. The same Republican politicians and economic pundits who (wrongly) said Bill Clinton's 1993 budget would destroy the economy and the stock markets, and who (wrongly) said President Bush's tax cuts would usher in an era of endless prosperity and wonderful market performance, warned again that the presence of a Democrat in the White House would spell doom for the Dow.
Here's a two-year chart of the S&P 500; if you shorted the market after the election, or after the inauguration, you've lost money. And if you shorted in March 2009, after the passage of the stimulus package, when Stanford economist Michael Boskin penned the foolish op-ed in the Wall Street Journal with the headline's "Obama's Radicalism is Killing the Dow," you'd really be feeling some pain. The S&P 500 is up 72 percent since then.
The shorting of the economy's performance under Obama wasn't limited to the ideologues who populate the Journal's editorial page. Economist forecasters have also effectively shorted Obama, arguing that the economy would not respond to the stimulus and other efforts. In the second quarter of 2009, economic forecasters surveyed by the Philadelphia Fed said the economy would grow at a 0.4 percent rate in the third quarter of 2009 and a 1.7 percent rate in the fourth quarter of 2009. The reality: The economy grew at a 2.2 percent rate in the third quarter (more than five times the rate they projected) and at 5.9 percent in the fourth quarter (more than three times the rate they projected). Oh, and if you shorted the dollar on the grounds Obama's policies would debase our currency, you've lost money, too.
On some level, it's tough to blame the Intrade crowd for getting Obama and health care wrong. The type of people who trade there, folks who think they're quite savvy about money, the market, and politics, are the same conventional wisdom hawkers who were so monumentally wrong before the financial crisis. If you've tuned into CNBC or Fox Business Channel, or read the Wall Street Journal since January 2009, you would have been subject to a constant stream of money managers, pundits, talking heads, and policy wonks declaring that the U.S. economy is becoming a socialist hellhole that is hostile to business and investors. (If there were a way to short Fox Business Channel, I'd do it in a hurry.


Dude,

The negative effect of:
  • Higher income taxes
  • Higher capital gains taxes
  • Negative dividend tax treatment
  • Current regulatory 'enhancement'
  • Expected higher medical insurance rates
is a given.
 
I'll definitely give you something, crws...
The other option was only marginally better - and, that is only a maybe:p

I have never had the opportunity to vote for two less qualified candidates with regards to the economy - and, that was when the economy was in full swoon.

But, I think the "Black Swan" thinks he knows stuff about subjects he obviously knows nothing about. McCain probably would have realized he was in over his head and found someone who knew what was happening.

Regardless, I am willing to make a wager of some sort. My bet:
  • The S&P 500 will be at most 3% higher on 2010/12/31 than 2009/12/31.
  • Unemployment will be higher on December 31 than it is now.
  • The Small/Mid Caps will be at best even for the year.
  • EAFA will be in the tank. Maybe a -30%+
  • Gas will be $5.00+/gallon

And, Liberals will be complaining that the Obama Administration is incompetent and that their Economic Planning dream requires competency. The crying will be deafening – and, kinda embarrassing.

Those are conservative points. I wouldn't want to go too much out on a limb and lose a wager over a longer stretch. Are you a taker! :)
 
I should have places <SARCASM> tags around my comment - yuk, yuk:D

Even though we San Diegans are now known as "ENRON by the Sea" I would be looking at Los Angeles or San Francisco as the first major failure. Especially Los Angeles. Los Angeles will not survive the year. They have to be praying for the “Obama Economic Miracle” to get rolling – very soon.

FYI...I'm gonna be in "Enron by the Sea" next week.
 
I'll take you up on that!:D:D
No offense, but I hope you're not right.
I'm getting sick of the uber left having fits. Seems like the crowd expects progress at page load speed. It's only 18 months since inauguration, FCS.
I just figure the media likes to drum up the drama, and finds the best participants on the edges of both parties.

Did you see this John Stewart segment?
Succinctly on point as usual...
http://www.thedailyshow.com/watch/wed-june-16-2010/an-energy-independent-future

Robo finds some good stuff i.e. http://www.tsptalk.com/mb/showthread.php?p=275575#post275575

http://www.decisionpoint.com/TAC/HARDING.html
Being Street Smart
Sy Harding
But Go Away for How Long? June 11.
[FONT=&quot]‘[/FONT]Sell in May and Go Away’ sure did work for the month of May, the worst May for the stock market since 1962. And so far the month of June has not been much better.
But go away for how long? Two months? Three months? July is usually a pretty good month for a summer rally isn’t it?
You could decide that, given the continuing global economic recovery, and that interest rates remain low and accommodative,
the 10% correction already seen is more than sufficient and the correction is already over.

Or you might judge that the contagious debt crisis in Europe will spread, and combined with the austerity measures being imposed in European countries,
will slow global economies, and that hasn’t been factored into stock prices by a mere 10% correction.

You could determine that investor sentiment remains too bullish and complacent for a correction bottom to be in yet,
and that corporate insiders are still selling and usually begin buying again before a market correction ends.

Or you might look at technical charts and conclude the market is short-term oversold and due for at least a short-term rally
that could get something going on the upside and leave the correction behind.

However, you could also look at convincing research that seems to say you don’t have to guess how long to stay away,
don’t have to suffer headaches trying to fathom what cold winds blowing around the globe from Europe and China,
or disappointing jobs or retail sales reports might do to the economic recoveries, and therefore to stock markets.

For instance, there is the mountain of evidence that supports the annual seasonal pattern from which the mantra ‘Sell in May and Go Away’ was born.
It says sell everything on May 1, and stay away until November 1, standing aside for the entire unfavorable period between, when history shows
the market experiences most of its serious corrections and only in rare years experiences meaningful rallies.

Recognizing that the market does not top out into a correction on the same day in the spring every year, nor does it launch into a rally on the same day in the fall each year,
in 1999 I introduced a similar strategy that has been one of the portfolios in my newsletter since. It is also based on the market’s annual seasonality,
but utilizes a technical ‘momentum reversal’ indicator to better identify the best entry and exit dates each year.
Its simple rules over the last 11 years resulted in a gain of 124% compared to a gain of 6.6% for the S&P 500 over what has become known to investors as ‘the lost decade’,
in which two bear markets have devastated portfolios. Meanwhile the worst annual decline of the seasonal investor in those 11 years was 4.2%.

So, the market’s annual seasonal pattern says stay away until the October/November time-frame, take only 50% of market risk, and yet outperform the market,
and therefore most professional money managers and mutual funds by a wide margin over the long-term (and the long-term is all that counts in investing).


Another consistent historical pattern may also be of assistance in this second year of the current Four-Year Presidential Cycle.

Since at least 1918, the stock market has experienced a substantial rally from the low in the 2nd year of every presidential administration to the high in the following year. That rally has averaged a gain of 50% for the Dow.
A study published in 2005 by Dr. Marshall D. Nickles of Pepperdine University showed that for the period from 1942 to 2004,
if an investor bought the S&P 500 index on October 31 in the 2nd year of each presidential term, and held until December 31 of the following election year,
he would not have lost money in any of those periods of being in the market, and would have gained a total of 7,170% (not counting interest on cash when out of the market).

He compared that to an investor being invested only in the opposite periods, who would have had losses in six of the 13 periods, the largest of which was 36%.
And rather than see a 7,170% gain over the period, would have seen his original investment shrink by 35%.

I have a similar strategy based on the Four-Year Presidential Cycle that can have an entry as early as August 15 in the 2nd year of the cycle.
(And we also have a non-seasonal Market-Timing Strategy, that will also help us identify when the bottom is in, and which takes also downside positions for profits in market declines).

So there you have proven seasonal strategies that say the odds are the low for the year will not be seen until at least August, but more likely not until the October/November time-frame.
Of course that does not preclude rallies in the meantime that fail at lower highs on the way down to the probable low later in the year.
And you could also bet against the odds and, like playing a roulette wheel, might win occasionally and think you have something that will work long-term.

But now you know why I have been saying that the February low was probably not the market low for the year,
and short-term rallies notwithstanding the low is still probably several months away, and is likely to be significantly lower.


You saw this quadruple witching discussion, right?
http://www.tsptalk.com/mb/showthread.php?p=275597#post275597

Nice win last nite, eh?
http://nbcsports.msnbc.com/id/37678521/ns/sports-nba/
"The Celtics have never blown a 3-2 lead in the NBA finals."


See ya round!

I'll definitely give you something, crws...
The other option was only marginally better - and, that is only a maybe:p

I have never had the opportunity to vote for two less qualified candidates with regards to the economy - and, that was when the economy was in full swoon.

But, I think the "Black Swan" thinks he knows stuff about subjects he obviously knows nothing about. McCain probably would have realized he was in over his head and found someone who knew what was happening.

Regardless, I am willing to make a wager of some sort. My bet:
  • The S&P 500 will be at most 3% higher on 2010/12/31 than 2009/12/31.
  • Unemployment will be higher on December 31 than it is now.
  • The Small/Mid Caps will be at best even for the year.
  • EAFA will be in the tank. Maybe a -30%+
  • Gas will be $5.00+/gallon

And, Liberals will be complaining that the Obama Administration is incompetent and that their Economic Planning dream requires competency. The crying will be deafening – and, kinda embarrassing.

Those are conservative points. I wouldn't want to go too much out on a limb and lose a wager over a longer stretch. Are you a taker! :)
 
http://www.bloomberg.com/news/2010-...ation-by-announcement-before-g-20-summit.html

Chinese President Hu Jintao may have succeeded in removing the yuan’s valuation from debate at this week’s Group of 20 leaders’ summit, economists and political analysts say. How much time he’s bought depends on how flexible the currency will become.

Days before China’s central bank announced on June 19 that the yuan’s “flexibility” would increase, officials said the currency’s value was not a suitable item for discussion at the G-20 meeting in Toronto. Hu will meet with President Barack Obama and other world leaders at the June 26-27 summit to discuss items ranging from the global response to the European sovereign-debt crisis to increasing the influence of developing countries in the International Monetary Fund.

U.S. lawmakers threatened to thwart China’s wish to keep the yuan off the meeting’s agenda. House Ways & Means Chairman Sander Levin, a Michigan Democrat, said on June 16 that China needed to act by the end of the summit or risk U.S. legislation which could levy penalties on Chinese imports.

“I think the announcement is in a sense preemptive and will probably keep currency off the agenda at the G-20 meeting, a well advertised Chinese goal,” said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington. “My view is that they have at a minimum bought some time.”
 
http://www.bloomberg.com/news/2010-...s-yuan-s-flexibility-to-threaten-profits.html

Toyota Motor Corp. and Honda Motor Co. suppliers sacrificed earnings in China by raising wages to end strikes, and the government’s decision to allow greater exchange-rate flexibility may slow plans to export vehicles from the nation as the currency appreciates.

China’s central bank will allow the yuan more flexibility, it said in a statement on June 19, signaling an end to the currency’s two-year-old peg to the dollar. The currency climbed the most in 20 months against the dollar and forwards jumped.

The looser currency stance comes “on the back of all these moves to endorse the wage increases,” Jim O’Neill, Goldman Sachs Group Inc.’s chief global economist, said in a Bloomberg Television interview yesterday. “It’s all part of moving to the consumer, more domestic-demand-driven economy.”

Labor unrest that disrupted output at Toyota and Honda’s plants in China in the past month forced their suppliers in the country to increase wages. In addition to the higher labor costs, an appreciation of the yuan may hamper plans to export Chinese- made vehicles by carmakers including Honda, which operates an export-only factory in Guangzhou, Guangdong province.

“Honda probably has to have second thoughts on its export plant,” Koji Endo, managing director at Advanced Research Japan, said today in a Bloomberg Television interview.
 
http://www.bloomberg.com/news/2010-...terest-rate-swaps-decline-credit-markets.html

Corporate bond sales are back to levels not seen since April as interest-rate swap spreads show investors are gaining confidence that Europe’s debt crisis is contained.

Total SA, Europe’s third-largest oil producer, and Petah Tikvah, Israel-based Teva Pharmaceutical Industries Ltd. led $36.1 billion of global sales last week, the most since the period ended April 23, according to data compiled by Bloomberg. Even the riskiest debt is staging a comeback, with cognac maker Remy Cointreau SA raising 205 million euros ($255 million) of debt in the first European junk bond offering in a month.

Markets are moving past concern that the euro region’s struggle with budget deficits will undermine the global economic recovery and make it harder for borrowers to meet debt payments. Since April 1, equity analysts have boosted their second-quarter earnings estimates for companies in the Standard & Poor’s 500 Index to $19.72 per share from $19.11, according to JPMorgan Chase & Co.

“We could see further issuance in the next month if the overall tone of the market stays positive,” said Felix Freund, a money manager at Frankfurt-based Union Investment GmbH who helps oversee 160 billion euros.

Investors put $164 million in high-yield bond funds in the week ended June 16 after withdrawing $6.27 billion in the five previous periods, according to EPFR Global, a Cambridge, Massachusetts-based research firm that tracks asset allocations.

‘Improved Tone’

“It’s a confirmation of the improved tone we’ve seen over the last few days,” said Martin Fridson, a global credit strategist at BNP Paribas Asset Management in New York. “It looks like some deals that had been talked about but put on the back-burner will start to re-emerge.”

One measure of investor fear, two-year interest-rate swap spreads, fell last week to 34.13 basis points, the narrowest since May 13 and down from 52.25 on May 24. Swap spreads reflect the difference between the rate to exchange floating for fixed interest payments and Treasury yields for two years.

Elsewhere in credit markets, the extra yield investors demand to own corporate bonds rather than government debt shrank last week for the first time since the period ended May 14, credit-default swaps tied to U.S. and European corporate bonds dropped and prices of leveraged loans reversed a monthlong decline.
 
http://online.wsj.com/article/SB10001424052748703438604575314833883953898.html?KEYWORDS=grain

Two years after the global food crisis peaked, grain shortages are turning into surpluses that could create their own problems.

Some traders and economists are speculating that if the U.S. and world economies don't heat up soon, surpluses could turn into price-depressing gluts. While cheap grain is good news for consumers and livestock producers, excessive supplies increase a government's cost for farm subsidies and tend to ignite trade fights between the big farming powers.

This tension is growing partly because many of the farmers in the U.S. Midwest who were plagued by rainy growing seasons in recent years are having few problems so far this year.

Harvesting near Norwich, Kan. The wheat crop should be big this year.
Although the corn harvest is months away, farmer Clay Mitchell of Buckingham, Iowa, is preparing his storage bins for what's shaping up as a record-large crop. The corn plants are already as tall as his chest, helped by a warm spring that permitted early planting, followed by well-timed summer rains.

"So far, this has been the best growing season ever," says the 37-year-old newlywed, who planted 1,600 acres of corn.

In some northern Texas towns, the unfolding wheat harvest is so big that farmers delivering grain to local elevators in recent weeks have had to wait all day in long lines of trucks. Some elevators are so full that wheat is being stored in cotton warehouses.

"There's probably never been this much wheat in our county before," says Steven Sparkman, Texas A&M agricultural extension agent in Hardeman County. "We've got a glut."

This is a big change from most of the last decade, when farmers' inability to keep up with expanding global demand for grain set the stage for what became known as the food crisis of 2007 and 2008.

World grain stocks—what's left by the time new harvests can replenish supplies—shrank as the growing middle-class in emerging nations such as China demanded more meat from livestock fattened on grain. Industrialized nations, stung by soaring oil prices, were increasing support for fuels made from crops. In the U.S., the ethanol industry began consuming one-third of the nation's biggest crop, corn.
 
http://online.wsj.com/article/SB100...326.html?mod=WSJ_hpp_sections_personalfinance

Bank on it: Higher fees, and more of them, are coming soon to a financial institution near you.

Banks are gearing up for a wave of new fees in an attempt to make up for lost revenue from new regulatory rules on credit cards and overdraft fees. Robin Sidel has details.

Regulators in the past year have pushed through a raft of changes designed to rein in banks' most abusive practices, from excessive overdraft fees to the way lenders raise interest rates when a credit-card payment is late. The new rules are expected to slice billions from firms' profits—and more if lawmakers move forward with a bill to limit how much financial institutions can charge merchants for debit-card transactions.

Banks, of course, aren't giving up those revenues without a fight. Instead, industry leaders like Bank of America Corp., Wells Fargo & Co., HSBC Holdings PLC's HSBC North America, Fifth Third Bancorp and others are experimenting with new ways to nick their customers, from imposing maintenance fees on checking accounts to rolling out new charges for services like fraud alerts, debit cards and credit reports.

Making matters trickier, while the banks must disclose the new fees fully, they likely will do so only in the ordinary-looking correspondence that most consumers toss in the trash without reading. The result: Many people will learn of the new charges only after opening their monthly statements.

"You've got to read those annoying messages that you get because they will be the ones that will tell you what is happening, so you can be prepared to vote with your checkbook and take it somewhere else," says Gail Hillebrand, a senior attorney at Consumers Union in San Francisco.

Consumer advocates worry that the new fees will unfairly whack consumers who keep low balances and manage their accounts responsibly to avoid any penalty fees.

"That's the group that will be most penalized in this environment," says Bill Handel, vice president of research and product development at Raddon Financial Group, which advises banks and is a unit of Open Solutions Inc.

The first and biggest casualty in the new fee assault: free checking. Most consumers haven't paid for a checking account in years; banks have long given away their checking services to establish relationships with customers who might later take out a mortgage, invest in one of their mutual funds or otherwise give them more business. Such free accounts have often included other popular—and valuable—perks, such as free online bill payment, debit-card rewards and free check printing.

But, "that is going to change in the next six to 12 months, and there may be some surprises," says Greg McBride, a senior financial analyst at Bankrate.com.

Banking executives and analysts say the new world of checking is likely to resemble the cable-television industry, where customers pay one amount for bare-bones service and then can load on additional options, such as cash-back programs.

Some bank customers already are getting a sense of what is coming. In recent weeks, HSBC North America has told customers that it is converting their free checking accounts to ones that carry a monthly maintenance fee of up to $15.

Wells Fargo, one of the nation's largest consumer banks, is eliminating free checking on July 1. Bank of America, the largest U.S. bank as measured by assets, is testing new tiered checking accounts that will encourage customers to increase their activity with the bank. TCF Financial Corp., a Wayzata, Minn.-based bank that built its reputation on the slogan "totally free checking" for 24 years, began charging its customers earlier this year.
 
http://www.nytimes.com/2010/06/20/business/20foreclose.html?ref=todayspaper&pagewanted=all

CASA GRANDE, Ariz. — Fannie Mae and Freddie Mac took over a foreclosed home roughly every 90 seconds during the first three months of the year. They owned 163,828 houses at the end of March, a virtual city with more houses than Seattle. The mortgage finance companies, created by Congress to help Americans buy homes, have become two of the nation’s largest landlords.

Bill Bridwell, a real estate agent in the desert south of Phoenix, is among the thousands of agents hired nationwide by the companies to sell those foreclosures, recouping some of the money that borrowers failed to repay. In a good week, he sells 20 homes and Fannie sends another 20 listings his way.

“We’re all working for the government now,” said Mr. Bridwell on a recent sun-baked morning, steering a Hummer through subdivisions laid out like circuit boards on the desert floor.

For all the focus on the historic federal rescue of the banking industry, it is the government’s decision to seize Fannie Mae and Freddie Mac in September 2008 that is likely to cost taxpayers the most money. So far the tab stands at $145.9 billion, and it grows with every foreclosure of a three-bedroom home with a two-car garage one hour from Phoenix. The Congressional Budget Office predicts that the final bill could reach $389 billion.
 
http://money.cnn.com/2010/06/18/news/economy/medicare_congress/index.htm

Doctors who receive Medicare payments won a round Friday in their bid for a raise - but first they'll suffer a big cut in their government reimbursements.

The Senate passed a bill Friday rescinding a 21% cut and adding a 2.2% increase for Medicare payments. The bill was passed by unanimous consent after lawmakers found a way to pay for the boost without raising the budget deficit.

The bill now goes back to the House of Representatives, which had previously approved it, because of Senate changes to the measure. A Democratic leadership aide said the House would take up the bill early next week.

But the delay in congressional action came too late to stop the first reduced Medicare payments to doctors from the scheduled 21.3% cut that went into effect June 1.

The Centers for Medicare & Medicaid Services said that after waiting since May for congressional approval, it can't wait any longer. So it is processing all claims from June 1 up till now.

"This is the largest reduction that the doctors' payment has ever experienced," said centers spokesman Peter Ashkenaz.

With their future payments still uncertain, physicians found little reason to rejoice over the Senate approval.

"It's going to go back to the House now, and it looks like they're not going to be in session until Tuesday afternoon," said Dr. Lori Heim, president of the American Academy of Family Physicians.

"It's definitely something that physicians are concerned about," said Jack Hoadley, research professor at Georgetown University's Health Policy Institute.

Hoadley said Congress usually makes fixes such as this one retroactive. But, he added, "even if it turns out there's a retroactive fix, there's a real cash issue."

Heim said she knows physicians who "already decided that they could no longer continue to see Medicare patients if the cut went through. There are other physicians that I've heard from who have decided to stop taking Medicare patients."

"This is really outrageous," she added.

The American Medical Association also weighed in.

"Congress is playing Russian roulette with seniors' health care," said AMA President Dr. Cecil B. Wilson. "Congress has finally taken its game of brinkmanship too far, as the steep 21% cut is now in effect and physicians will be forced to make difficult practice changes to keep their practice doors open."

More than 43 million Americans receive medical care through Medicare.
 
http://www.businessinsider.com/davi...ll-cause-1-million-permanent-lost-jobs-2010-6

David Kotok of Cumberland Advisors is out with the latest in his sobering, but must-read OIl Slickonomics series. This time he does some math on the direct economic impact on Gulf States.

We estimate that an extended moratorium, which we now expect to continue because of Obama political calculus, will cost up to 200,000 higher-paying jobs in the oil drilling and oil service business and that the employment multiplier of 4.7 will put the total job loss at nearly 1 million permanent employment shrinkage occurring over the next few years. Five states have a regional recession/depression development underway. Alaska could become the sixth state on the damaged list.

Readers may note that for the Gulf region, they can watch the Beige Books of the Atlanta and Dallas Federal Reserve Banks for economic details over the next several months.

And we must not be deceived by the $20 billion fund. It is not nearly enough to cover the liabilities that may develop for BP and its partners, who are already in dispute with each other over who is going to pay for what and when and how much. Remember at $4300 fine for each leaked barrel of oil, the $20 billion is likely to just cover the fine. We expect that the total cleanup and payment of the liabilities to all injured parties in all five states may approach 5 times that amount.
 
http://www.zerohedge.com/article/12...rier-and-one-israeli-corvette-cross-suez-cana

Arabic newspaper Al-Quds al-Arabi reports that 12 American warships, among which one aircraft carrier, as well as one Israeli corvette, and possibly a submarine, have crossed the Suez Canal on their way to the Red Sea. Concurrently, thousands of Egyptian soldiers were deployed along the canal to protect the ships. The passage disrupted traffic into the manmade canal for the "longest time in years." The immediate destination of the fleet is unknown. According to Global Security, two other carriers are already deployed in the region, with the CVN-73 Washington in the western Pacific as of May 26, and the CVN-69 Eisenhower supporting operation Enduring Freedom as of May 22. It is unclear at first read what the third carrier group may be, but if this news, which was also confirmed by the Jerusalem Post and Haaretz, is correct, then the Debka report about a surge in aircraft activity in the Persian Gulf is well on its way to being confirmed. There has been no update on the three Israeli nuclear-armed subs that are believed to be operating off the coast of Iran currently.
 
http://www.pittsburghlive.com/x/pittsburghtrib/opinion/columnists/zito/s_686743.html

Just days after the dramatic highway separating this old mining town from Aspen opened, 15-foot snowdrifts still line the narrow Independence Pass, even with the temperature at 60 degrees.

Below the 13,000-foot peaks ringing the pass, a large homemade sign dominates a front yard on the edge of town: "Vote Obama? Embarrassed Yet?"

Welcome to "flyover" country -- the nation's midsection, which Washington only views from the air and never really experiences on the ground.

President Obama may parachute in sporadically for invitation-only town hall meetings to promote "Recovery Summer," but that doesn't count as real in flyover country.

The administration's six-week push to reinvigorate its stimulus narrative will showcase jobs in stimulus-funded projects to improve highways, parks and other public works. Yet stimulus dollars never hit the ground here.

"We didn't receive any of the stimulus money," says Leadville Mayor Bud Elliot. "We weren't eligible because we are considered too poor of a community."

Elliott, a Democrat, says the American Recovery and Reinvestment Act was "designed to help large cities, not small-town America."

The Old West charm of Leadville, once a thriving mining town, remains remarkably intact. Described proudly by locals as "a hard-drinking town where most people own at least three guns," its economy now rests on tourism.

Aspen transplant Chad Rose, 28, is puzzled that such a well-polished 2008 political campaign, which promised so much, has failed to connect so spectacularly: "I know that we weren't voting for this much spending. In fact, we were voting against it."

An Orlando, Fla., native who began his career in Wall Street finance, he wonders where the stimulus money really went.

"You had to be shovel-ready. We are small-town, (so) we weren't," Elliott says after attending a three-day seminar to see if his area could reap new jobs from stimulus-funded projects.

"The stimulus program had very little stimulus," says Allan Meltzer, Carnegie Mellon University political economy professor. Its largest item was a transfer to pay for state budget deficits, he explains, adding: "Transferring the deficit from the state to the federal budget doesn't do much."

That relief for states was temporary; this year, as many as 300,000 teachers may be terminated for lack of funding.

Public policy is supposed to be about fixing problems. To fix a problem, you must change people's behavior.

"The stimulus spent a lot of money, ran up the deficit and debt and, worst of all, generally did not change people's behaviors," says Jeff Brauer, Keystone College political science professor. "That's bad public policy."

If the stimulus was so necessary, the money should have gone entirely to much-needed infrastructure improvements. At least we'd have something to show for it.

"More importantly, it would change people's behaviors," Brauer says, explaining that businesses -- particularly small businesses -- would create new jobs that would lead to more permanent employment.

Elliott would have loved to see stimulus money used for infrastructure projects nationwide, not just in Leadville: "You could say I am somewhat disappointed in this administration so far."

Three hundred miles down the road, the mayor of Lamar, Colo., says his town of 10,000, which also did not receive federal stimulus dollars, created its own stimulus.

"Very little of what Washington does helps us out here," says Mayor Roger Stagner. "While there is always an expectation that you might get help, our economy depends on ourselves."

Brauer says flyover voters, especially those who supported Obama, feel a major disconnect with the administration. "They wanted Washington to tighten its belt and balance its books, just as they have had to do with their own families in these tough economic times."

What they got was more out-of-control deficit spending with no regard for the implications.

"And worse than that," he adds, "they are not seeing the benefits of this deficit spending. It's not giving them better lives, it's not fixing the problems."

From one end of Colorado to the other, shiny new "Project funded by the American Recovery and Reinvestment Act" signs dot highways -- large, small and barely navigable -- with no visible evidence of recent, current or coming construction.

Yet in the shadow of Pikes Peak, on the outskirts of Cimarron Hills, stands another oversized homemade sign expressing displeasure with the White House.
 
Ah yes, the Jupiter Uranus conjunction called this one as we move forward. I still like Stickan - thanx again for posting.
 
Now we shall see how their strategery plays out!:cheesy::suspicious:

http://www.bloomberg.com/news/2010-...ation-by-announcement-before-g-20-summit.html

Chinese President Hu Jintao may have succeeded in removing the yuan’s valuation from debate at this week’s Group of 20 leaders’ summit, economists and political analysts say. How much time he’s bought depends on how flexible the currency will become.

Days before China’s central bank announced on June 19 that the yuan’s “flexibility” would increase, officials said the currency’s value was not a suitable item for discussion at the G-20 meeting in Toronto. Hu will meet with President Barack Obama and other world leaders at the June 26-27 summit to discuss items ranging from the global response to the European sovereign-debt crisis to increasing the influence of developing countries in the International Monetary Fund.

U.S. lawmakers threatened to thwart China’s wish to keep the yuan off the meeting’s agenda. House Ways & Means Chairman Sander Levin, a Michigan Democrat, said on June 16 that China needed to act by the end of the summit or risk U.S. legislation which could levy penalties on Chinese imports.

“I think the announcement is in a sense preemptive and will probably keep currency off the agenda at the G-20 meeting, a well advertised Chinese goal,” said Nicholas Lardy, a senior fellow at the Peterson Institute for International Economics in Washington. “My view is that they have at a minimum bought some time.”
 
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