Archive for April, 2009

US Supreme Court Justice Souter to resign

Thursday, April 30th, 2009

NPR  reports the US Supreme Court judge David Souter – the guy nobody knew anything about or what he believed – who lived with his mother in a cabin on a farm in New Hampshire (appointed by George Bush #41) will end his time at the Supreme Court at the end of the current term, giving President Obama his (probably) first opportunity to appoint a Supreme Court Justice.

Ruth Bader Ginsburg, former lawyer for the ACLU, is currently fighting pancreatic cancer and may also need to retire in the near future for her health.    NPR suggests Souter only decided to resign based on the belief that Ginsburg won’t.   Interesting that it was NPR who broke this news…

Bankruptcy Watch – Filene’s Basement

Monday, April 27th, 2009

According to Bloomberg, clothing retailer Filene’s Basement is preparing for bankruptcy.   The company had previously been through bankruptcy in 1999, and is currently owned by a company that specializes in liquidating companies, so this isn’t a huge surprise.   They do intend to try to renegotiate leases with the shopping centers where they are located – which might further push some shopping center operators into problems.

Bankruptcy Watch – GM

Monday, April 27th, 2009

GM is peering over the edge of the brink of default now.

GM presented its final offer today.  90% of the bondholders must accept their final offer or they go into Chapter 11.   Liveblogging comments are available here

Regardless of whether the company goes into bankruptcy, Pontiac is history.  (I bought an Oldsmobile about a week before they dumped that brand in 2001 – and my car dealer is long ago out of business – the Chevrolet dealer who last repaired my car is also now out of business).

Hummer is going to be sold off,  Saturn – which was going to be GM’s prototype for the future way to do business – is going to be shut down unless they can sell it.

The interesting question from the news conference is – some of the bondholders surely have credit default swaps that will be triggered if GM files chapter 11 – so the bondholders are motivated to vote against the plan, which will trigger the CDS and the lenders get their money back.

Looking forward to the next question, which companies are on the hook having sold those GM Credit Default Swaps – and will they fail when they have to pay off on the bet?   Or are they companies like AIG already on the Geithner bailout bandwagon?

This Bloomberg story contains a quote from a bond analyst in Vermont says the plan seems to be designed to ensure that it fails.  If adopted, GM’s common stock would be 89% owned by the UAW’s health insurance fund, the bondholders would have 10% equity, and the current GM stockholders would have the remaining 1%.

Taliban to take over Pakistan?

Saturday, April 25th, 2009

Hillary Clinton is publicly ringing the alarm bell that the Taliban are on the march to the Capital of Pakistan, and now that the United States administration is stuck in a quagmire in Afghanistan and failed to get any European support, the Taliban are marching in unopposed and will likely seize the entire country of Pakistan soon.  NY Times Story

According to this story from London Times, the Obama administration has told Pakistan if they don’t push the Taliban back, the United States may have to do it for them.   US Secretary of State Hillary Clinton has described the situation as  “I think we cannot underscore [enough] the seriousness of the existential threat posed to the state of Pakistan by the continuing advances,” said Clinton, adding that the nuclear-armed nation could also pose a “mortal threat” to the United States and other countries.

Usually, the State Department is the part of government that understates danger and suggests that a little diplomacy will solve all problems.  Now its head is suggesting the country of Pakistan may fall to the Taliban, and that this could cause nuclear war with the United States (or more likely India).

Wow, I don’t remember that in the Hope for Change campaign last year. Words have consequences.

Meanwhile, the US Media is going to be preoccupied with printing photographs of “US Torture” as the result of the ACLU lawsuit and the Obama administration turning over photos it has.  

Hey, how about that NFL draft?

State of Fear – Craigslist

Saturday, April 25th, 2009

If you’ve been living in a cave, Craigslist is a place where people can post free classified ads that are immediately viewable on the Internet.

Because one man is accused (not yet convicted) of using Craigslist to meet women for sex and then robbing them (and possibly killing one), the politicians see an opportunity to “regulate” Craiglist (and similar sites like Facebook and MySpace) and making them responsible for what people do using their service.  “We must protect the children” and the innocent prostitutes from danger, of course.

Newspapers will be particularly anxious to jump on this Fear Mongering bandwagon.  One of the reasons so many papers are going broke is that Craigslist has destroyed sales of classified ads printed and distributed on dead trees.

State of Fear – OMG, it’s a pandemic!

Saturday, April 25th, 2009

Here comes the next round  in the Obama administration’s Game of Fear to get Americans to turn over all their personal freedoms to the Federal Government.  We have been prepared for this one for several years.  The seeds have been planted, and the scientific illiterates in the media (especially Fox News) will be glad to facilitate spreading the Fear to increase their ratings.

The “OMG, someone in a nursing home died from peanut butter” ploy worked so well that it destroyed an entire staple of the U.S. diet based on no evidence – now it’s time for the full court press – “OMG, someone died from a strain of flu we haven’t seen before”. 

Regardless that in a normal year in the United States, the CDC estimates that 36,000 people die of complications of the flu.  Early indications are that this “new” swine flu is not particularly virulent and easily treated with normal medications.   People die in Mexico because they lack basic health care services.   All “swine flu” means is that it contains pig DNA.

Influeuza is now understood to be a result of a virus that picks up fragments of DNA from ducks, pigs and humans living in close contact with each other.  That’s why the flu starts in Asia (mostly China), where people live with their farm animals, and pigs are used to eat human fecal matter.   Suggesting that farmers not live with pigs and ducks inside their house is culturally insensitive, if not outright racist.

The virus then spreads to migratory birds, which then spread it the next year to their bird cousins who fly South and North in the Western Hemisphere.   Your neighbor who thinks ducks are cute and feeds them is unknowingly helping to spread the flu.

The Drum Beats of Fear are pounding their rhythms now at high volume, and will be in full motion next week.  Expect government and mass media hysteria to call for limits on travel, forced inoculations, “emergency” spending on billions of doses of useless vaccines, and maybe even martial law if citizens resist.

If you think I’m the fear mongerer, read this Reuters account of the “special powers” the government of Mexico has already given itself:

  • Shut schools and museums
  • Cancel sporting events
  • forced testing of people
  • “Isolation” of people who are infected
  • Power to enter homes and businesses without consert to search for the infected 
  • Regulate Air, Sea and land transportation

Perhaps your reaction is “Yeah, but that’s Mexico.  President Obama would never do that here.”   Are you sure of that?

*** Update 4/26/09  5 pm ET ***

Despite the CDC saying the strain found in the U.S. is different than the one that caused the deaths in Mexico, Department of Homeland Security Janet Napolitano has declared a “Public Health Emergency“. [Thank you George Bush for creating this out of control agency]

Of course, we won’t close the border with Mexico or require health checks of people crossing at the border or quarantine immigrants for a few days when they enter the country.  That would be racist.

GM employee 401(k) plan sells all 75 million shares of GM

Friday, April 24th, 2009

Detroit News Story

The trustee of the GM Employee 401(k) plan has dumped all 75 million shares over the past 3 weeks for under $2 a share .  That leaves very little doubt that GM is going into bankruptcy.

– If this was done based on knowledge of a definite decision to proceed with bankrupcty, someone is in serious legal jeapordy.  It seems unlikely they aren’t aware of the situation and the law.   Trading on non-public information is a crime called “insider trading”.   “Tim Geithner told us it is okay” is not a legal defense.

– if your employer holds much of your 401(k) plan in company stock, you’re working for a bad employer.  GM (until recently) required 1/2 of all 401(k) contributions to be in GM Stock.

Bankruptcy Watch – Charter Cable

Friday, April 24th, 2009

Charter is already in the bankruptcy process – so this isn’t about a new bankruptcy.

According to the International Business Times here, Charter’s plans to get in and out of bankruptcy fast have run into a snag. Wells Fargo and JP Morgan have both objected to the “quick prepackaged bankruptcy” and will not agree to it.

Are you listening Tim Geithner? GM? Chrysler?

Seeing how the CEO of Bank of America is being treated now for “going along with the government”, look for a lot more resistance to being told by the U.S. Treasury “the way things are going to work”.

It’s possible that a US Bankruptcy judge may have more power than the U.S. President.  Perhaps people working at the Federal Reserve bank didn’t know that.

BofA/Merrill – the other shoe drops

Friday, April 24th, 2009

One of the principles of a good lawyer is you don’t ask a question of a witness unless you already know the answer.

NY Attorney General Andrew Cuomo released to the SEC details of his questioning of Bank of America Kenneth Lewis. What has become clear is that as BofA was becoming aware of how much money Merrill Lynch was losing, they wanted to back out of the deal.

Then Secretary of Treasury Henry (“Hank”) Paulson and current Federal Reserve Chairman Bernanke threatened Lewis that the entire management of BofA would be fired if he didn’t complete the merger and conceal the financial mess Merrill Lynch was in from Bank of America’s shareholders. Paulson and Bernanke were in clear violation of US Securities law, according to the former SEC Chairman Harvey Pitt and other industry experts according to the Bloomberg News Story.

The future of Health Care

Friday, April 24th, 2009

The Washington Times has a story today about problems with the EMS ambulances in Washington D.C.   It’s primarily a local story (Washington Times is a local newspaper in addition to trying to have a national audience), but it has clear national implications.

Washington DC is peculiar in the entire country in that it is a city run by the Federal Government.  D.C. is not part of Maryland or Virginia – the city gets its funding from Congress.   The normal city funding model of using Property Taxes can’t work in D.C. because so much of the real estate is owned by the Federal Government and cities and states are not allowed to tax the Federal Government.

The District sent its paramedics off to be evaluated to see how evaluate there ability to perform life saving tasks were.   Only three of 95 paramedics tested had passing scores for entry level paramedics. 

What has been the ciy’s reaction?  They threatened to take legal action against the Washington Times for disclosing the results of the testing.

Welcome to your new heath care system, America.