Blog Archives

The other shoe just dropped

Monday, August 31st, 2009

http://www.reuters.com/article/marketsNews/idUSN2414172020090824

The NY Federal Reserve Bank (the most important) has just announced that the head of the AFL-CIO in New York is being named to be the chairman of the NY Fed (the job that Tim Geithner held last year).

All is clear now who is calling the shots and in control of our federal  government.    There is no reasonable reason why a labor union thug  should be making banking policy.   The coup has happened.

Or if you are slightly less pessismistic, Goldman Sachs just got their butt kicked out of any role in making monetary policy.

Bankruptcy Watch – Freedom Communications

Monday, August 31st, 2009

http://online.wsj.com/article/SB125166593642570507.html

The operator of the Orange County (California) Register is preparing to join the string of major newspapers who have filed for bankruptcy.  When all the newspapers are dead, where will Matt Drudge get his news?

Not to worry, the Obama administration is starting to put together a task force to study how to “fix” the newspaper business.   Maybe they’ll create a government run news service to keep us informed on what we need to know.

Everywhere, all the time Wireless

Sunday, August 30th, 2009

I’ve just spent 5 days experiencing a revolution in wireless technology – it probably isn’t that “new”, but it was new to me.   I’ve written before about how LTE or WiMax is going to change every aspect of our lives very soon in ways we don’t even think about yet.

When I was in the hospital, I was put on a cardiac monitor that monitored every little pitter patter of my heart 24 hours a day.   It is a device about the size of an iphone that is in constant contact with the monitoring center via wireless (which in theory could be anywhere in the world).   If a lead came loose, within seconds a page would go out to the nurse telling them to go to the room and fix the problem.   Had anything “exciting” shown up on the monitor (it didn’t), the response would have been in seconds to start to deal with an issue with a real time display in front of a doctor with the skills to make informed decisions in real time.

Now broaden that picture out to be that someone with a heart issue could wear this device and go pretty much anywhere in an entire city, and be just as much in touch, including the ability of a doctor to remotely intervene (perhaps adjust a pacemaker or zap with an implanted defibrillator to restart a heart).

This technology has great potential to do wonderful things – but it also could be the technology that enslaves us if used by the wrong people with the wrong motivations. 

It’s critical that the government recognize that trust is the key for any solution.  Trying to beat people into submission without adequate thought and discussion will result in failure and extreme danger to the future.  I’m hoping the adults are beginning to take control of the process and we can stop with the “emergency” crap and have some balanced rationale dialog soon.

OMG, did the world go sane?

Sunday, August 30th, 2009

http://finance.yahoo.com/news/Rep-Frank-eyes-Fed-audit-rb-3402785272.html?x=0

This is certainly one of the signs of the end times – Barney Frank and I agree.    Did I turn into a mushy liberal from a bump to my head, or has Representative Frank finally realized how deep the hole is and that he’s the guy holding the football?

According to the story, the more important piece to me is that he wants to quickly “pull back” a lot of the emergency powers that were given to Tim Geithner (originally Henry Paulson) to deal with emergencies – things like waving your hand and declaring American Express to be a “bank” so you can have the entire country pay the costs of AMEX’s bad lending practices.

The other part is Representative Frank seems to be getting on board that the Federal Reserve needs a colonoscopy to see what the hell is going on.   Apparently, Ron Paul has critical mass now to force an unprecedented audit of the Federal Reserve and its processes.   I’m thinking that the Paulson / Geithner / Goldman-Sachs “connections” have finally been figured out (the stuff I’ve been screaming out loud as they were happening for close to a year) and how the U.S. Treasury has been plundered using the threat of an existential “emergency”.

Well, better late than never.    You can’t start fixing a problem until you recognize there is a problem.

WSJ declares Tim Geithner honorable

Friday, August 21st, 2009

http://online.wsj.com/article/SB125088307063549883.html

So the Wall Street Journal interviewed Tim Geithner, and asked him if he acted honorably when he advised Henry Paulson to kill Lehman Brothers and save AIG to protect Goldman Sachs (the previous employer of Mr Paulson and Mr Geithner), and Mr Geithener says “Of Course I did”.

No story here, please move long.

In a totally unrelated story, Chicago based Walgreen’s (one of the country’s largest retailers of prescription drugs) has hired a new Treasurer, who currently works for Goldman Sachs.

http://www.forbes.com/feeds/ap/2009/08/21/business-specialized-consumer-services-us-walgreen-personnel_6803331.html

No story here, why don’t you conspiracy kooks just give this crap up and go back to watching American Idol!!!

Bankruptcy Watch – First United Ethanol

Friday, August 21st, 2009

http://atlanta.bizjournals.com/atlanta/stories/2009/08/24/story1.html?b=1251086400%5E1970491

Just one of many ethanol plants that have been built that make no economic sense – “because the government said we had to”.

Encouraging Bank Failure

Wednesday, August 19th, 2009

By now, you probably have noticed the pattern – every Friday, the FDIC shuts down a handful of banks, usually allowing another larger healthier bank to take over the accounts and branches of the failed bank, and the bigger bank gets to pick and choose which of the assets of the failed bank they would like to buy, and the FDIC throws in enough cash to make the deal work.    If the FDIC just shut down the bank, and mailed everyone a check for their bank balance, that is more disruptive to the customers and ends up costing the FDIC more money.

According to John Batchelor’s sources, there are at least 700 “zombie banks” that need to be shut down right away, and the longer they linger in insolvency, the more the eventual damage will be.    The FDIC has limited staff to supervise these transactions, especially if the FDIC is picking up toxic assets for eventual sale.    At 3-5 banks per week, the FDIC will never catch up with problem

Why aren’t the healthy banks buying up their smaller failing competitors to gain customers and market share?   The answer is obvious – the FDIC is providing an incentive if the bigger bank waits until the FDIC approaches them and wants to make a deal.   If the “good” bank pursued a failing bank on its own, not only won’t it get FDIC money, it will potentially face lawsuits and anti-trust from the U.S. Justice Department.    When the proposed sale is made known to the public, depositors  in the failing bank with create a “run” on the bank, stripping it of the deposits the bigger bank wants to buy.

“Subsidize failure, you get more of it”.

WiMax vs LTE: the contest has begun

Tuesday, August 18th, 2009

Even if you don’t know what means, it is going to change the rest of your life, whether you want it to or not.

WiMax and LTE are two competing technologies being rolled out into the real world to provide inexpensive “High Speed Internet Anywhere” service.  This is similar to the VHS vs Betamax showdown, which VHS ultimately won, even though many people believe that Betamax was the better technology.

Sprint/Clearwire turned on WiMax this week (August 2009) in Atlanta, Las Vegas and Portland, Oregon.   Sprint has about a six month lead on LTE, with several months of experience already in Baltimore.  Sprint’s main partner is Comcast, which can help them with building out the transmitter network in a city and backhaul capability.

Most of the other forces are lined up behind LTE – AT&T and Verizon being the big players… but they are only now starting their pilot programs.

Once WiMax and/or LTE are widely deployed, cell phones will begin to use its IP based phone capabilities.    The one area where WiMax has spent a lot of their effort is to ensure that a WiMax device in a car traveling at 60 MPH will work seamlessly as it hands off between cell towers.   Time will tell if that gives it the edge over LTE.

But no matter which technology “wins”, the Internet being “everywhere” very inexpensively will change the use of computers and computer like devices just as much as cell phones have changed the telephone business.

Seizing the moment

Monday, August 17th, 2009

Over the past few days, Tom Taylor has been reporting recurring rumors that Bonneville Broadcasting (which is owned by the Mormon Church) may be  in discussions to acquire the former ABC radio stations from Citadel.   Citadel has been in financial limbo for about 6 months now, having failed to keep its obligations on its credit lines.  Their stock was delisted and is close to worthless.

For those of us over 50, the list of radio stations that were part of ABC radio is a who’s who of major market AM radio:

  • WABC/WPLJ-FM – New York
  • KABC/KLOS-FM – Los Angeles
  • WLS AM/FM – Chicago
  • KGO / KSFO – San Francisco
  • WBAP /  Baltimore
  • WMAL /  Washington DC
  • WJR / Detroit

Curiously, not a single former ABC Radio O&O station carries the show of  Glenn Beck.   I have to believe there is a reason for that.

Despite the pressing urgency to organize effective opposition to the looting of the country’s treasury, the Republican Party is showing no signs of competency and some leaders appear to just want to be sure they get their share of the loot.

The “family oriented” Conservative message of the Mormon Church probably has never had a more receptive audience among the American public than right now.    Owning these stations would give them a very big platform on which to influence public opinion.

Bankruptcy Watch – Reader’s Digest

Monday, August 17th, 2009

Per Bloomberg

The publisher of Reader’s Digest plans to go through an orderly bankruptcy proceding to get out from under $1.6 billion in debt.    It’s hard to see how Reader’s Digest has much of a future as a paper magazine.   For much of its history, Reader’s Digest did not accept advertisements and was funded entirely by the subscription fees and consumer point of purchase sales.

The bankruptcy should not affect publication of the magazine, at least for now – and doesn’t involve the company’s non-U.S. subsidiaries