Friday, November 30, 2012

The Two State Solution: Israel And Palestine


No national boundaries are forever.  Just look at a map of Europe now versus prior to World War II. The strength and vitality that build nations and empires get sapped from complacency and abuse over time.  New realities are continually occurring.  With that in mind, it should come as no surprise that the UN has moved Arabs who call themselves Palestinians closer to becoming a new nation.  A nation of violence and extremism, but a nation nonetheless.

It should also come as no surprise that Israel is laying claim to some of the territory that might become part of Israel having taken control of it decades before in a war foolishly started by its Arab neighbors. The West Bank is not something that Israel is about to give up... United Nations or not.

From the Chicago Tribune:

Israel to expand settlements over UN's Palestine vote - media. 
JERUSALEM, Nov 30 (Reuters) - Israel plans to build 3,000 new homes for its settlers in the occupied West Bank and East Jerusalem in defiance of a U.N. vote implicitly recognising Palestinian statehood there, Israeli media reported on Friday. 
The Ynet news site said the move had been approved by Prime Minister Benjamin Netanyahu's inner council of nine senior cabinet members on Thursday, as the United Nations General Assembly upgraded the Palestinians to "non-member observer state" from "entity" - a resolution Israel and Washington had opposed.
The Haaretz news site carried a similar report, describing the new homes as a part of a "construction wave" planned byIsrael, which deems all of Jerusalem its undivisible capital and wants to keep swathes of West Bank settlements under any eventual peace treaty with the Palestinians.
Given the present situation, this post is worth re-posting here.  At the time, Israel was less forceful about the West Bank being permanently part of Israel, but that was before statehood for Palestine was a serious consideration.  Now the situation is a little more thorny.  Rather than giving up the West Bank and absorbing Gaza as described below, the opposite may be the only possible reality outside of war.  In return for statehood and possibly some additional Israeli land north of the Egyptian border, all claim by any Arab contingent to the West Bank would have to be relinquished and the West Bank would be permanently annexed as part of Israel.

What will not happen is what was described below... an East Palestine [West Bank] and a West Palestine [Gaza] for the reasons cited below.

SUNDAY, JUNE 07, 2009.

Creating Palestine.


President Obama'sgive-and-take speech in Cairo brought to mind a situation that somewhat parallels the Israeli-Palestinian issues... the partitioning of British India into India, West Pakistan and East Pakistan plus additional territories to the east. The portion of Pakistan known as East Pakistan split politically from West Pakistan to form Bangladesh. It was geographically untenable to have one political entity split by a hostile nation, India. [maps source]

When one looks at Israel and Palestinian-occupied territories, there is a very similar situation that is unlikely to be the solution in President Obama's speech. The Golan Heights is likely to become part of Syria in any long-term solution... or perhaps split in half to provide Israel some security from bombardment from that vantage point. The West Bank may serve as a general geography for any future Palestine, but there may be some territorial cessession to Israel to swing that deal. Finally, the Gaza Strip is wholly untenable as part of a new Palestine. It is isolated between two forces that have little love for a Palestinian presence: Israel and Egypt. [map source]

It is likely that Gaza will have to become part of Israel and that the present occupants will have to be resettled into the West Bank or agree to Israeli rule. Israel would probably prefer that the Palestinians in Gaza move out. There may be a remote possibility that an agreement can be worked out with Egypt to create a "neutral zone" administered by Egypt with Israeli military rights.

The Golan Heights will probably remain as Israeli-occupied and a separate agreement worked out at some future point when Arab and Iranian actions show Israel that any agreement can be trusted. This would include a repudiation of the "destruction of Israel" mantra by the Palestinians and Iranians.

All of this would require significant "give and take." And even if all of this happened, any subsequent attacks on Israel from Palestine or any other Middle East country would be sure to dramatically change the political geography again.



Obama: Safe From Irony In Hawaii


From Hope n' Change:



Winter Is Coming: How Is That Solar And Wind Energy Working For You


President Obama, in an oft-quoted interview, said that under his plan energy prices would necessarily skyrocket.  But we'd have less CO2, right?  That would be good, right?

Well, it's been tried in England.

From the Daily Mail:

Energy giant that provides gas and electricity to eight million customers lifts prices by nine per cent - now will rivals follow?
  • Energy company SSE will increase its rates by 9 per cent
  • It will increase the monthly bill by £8.53
  • SSE boss says it is 'regrettably unavoidable'
  • Experts predict that other energy companies will follow
Hey, what's a few quid?  Those rich, old geezers can afford a little of their Bingo money.

Old folk under threat as cold snap sets in.

Dozens of older and vulnerable people could die in South Holland this winter because of the cold.
As the district braces itself for an icy snap this weekend, shocking figures which show that more than 50 people a year die as a result of winter-related problems have been described as “unforgiveable”.
Excess winter deaths – the number of extra deaths in the winter compared to the summer – have a number of causes, such as an increase in respiratory problems, complications arising from falls in slippery conditions, as well as flu epidemics and even hypothermia.
Latest figures show South Holland has one of the worst records in the county for these extra deaths – many believed to be related to the district’s high levels of fuel poverty.
Around 20 per cent of households in South Holland are classed as living in fuel poverty – meaning they spend more than ten per cent of their income on energy bills. 

Thursday, November 29, 2012

State Health Care Exchanges


The Obama administration has given individual states until December 14 to decide whether or not to participate in "Health Care Exchanges."  The State of Michigan has chosen today.

It is not alone.

Where the States Stand
Interactive map available at: The Advisory Board Company


Congress And President Staring Down The Fiscal Cliff


Congress is trying to work toward some solution to the "fiscal cliff crisis" facing the government and our nation.

NEW YORK (CNNMoney) -- There's one part of the fiscal cliff that nearly everyone agrees on: avoiding the $1.2 trillion in automatic spending cuts scheduled to begin on Jan 2. [full story]
As congressional leaders exited the White House today after an opening round of discussions with President Obama, the mood seemed upbeat and lawmakers relied heavily on optimistic  metaphors. [source]
Well, yes here is what the President is doing as his part in the difficult process.

Obama So Worried About Fiscal Cliff He’s Taking 3 Weeks Off To Vacation.

After making a few more recent campaign-style class warfare speeches about the need for Congress to raise taxes, Barack Obama is preparing to spend a 3-week holiday in Hawaii for much of December and the first week of January.  Looks like he’s not so concerned about that “fiscal cliff” disaster, eh?

Bill Was Kid-napped


And who says the military is humorless?  From Military Times:

Bill the Goat kidnapped, left on roadside

Bill the Goat, the Naval Academy Mascot, was stolen over the weekend and attached to a median near the Pentagon. He was recovered Saturday morning in good condition.
Kid-napped, indeed.

What Do White Males And Christians Have In Common?


Neither are a "special interest" group favored by the Obama administration.

Consequently, while Obamabuddies are readily exempt from Obamacare, white males and Christians find themselves on the outside looking in.  That is probably justified in Obamathink because white males and Christians are oppressors.

From Fox News:

Hobby Lobby Stores has appealed a federal judge’s decision denying the craft supply chain’s request to not provide employees with insurance that covers morning-after and week-after birth control pills, as mandated by the ObamaCare law. 
The Christian-owned company asked for relief in the face of fines they say could reach $1 million a day for not providing the coverage. 
The appeal was filed Tuesday in the 10th Circuit Court of Appeals after a federal judge in Oklahoma on Monday denied the owners’ request for a temporary injunction against the provisions of the Obama administration's health law. 
The chain's appeal states in part that Chief Executive Officer David Green his family in less than six weeks “must either violate their faith by covering abortion-causing drugs or be exposed to severe penalties -- including fines of up to $1.3 million per day, annual penalties of about $26 million and exposure to private suits.” [more.]
Here is a link to some of the organizations and companies exempted from Obamacare.  The question is: why should there need to be an exemption ... or hundreds of exemptions ... if the law were reasonable and just?  The answer: the law is unreasonable and unjust.

As noted in The Blaze:
“Documents released in a classic Friday afternoon news dump show that labor unions representing 543,812 workers received waivers from President Barack Obama‘s signature legislation,” writes Paul Conner of the Daily Caller. “By contrast, private employers with a total of 69,813 employees, many of whom work for small businesses, were granted waivers.”
Because of the backlash over the waivers, HHS announced last summer that it would stop accepting applications for one-year waivers and would simply grant or deny waivers all the way through the end of 2013, according to The Hill.

Wednesday, November 28, 2012

The Weaker Sex: Not These Marines


It was inevitable.  Once "gender equality" came to mean "no differences between the sexes" it became a foregone conclusion that "anyone can do anything."

From Military Times:

USMC changes fitness requirement for women

By Andrew deGrandpré - Staff writer
Posted : Tuesday Nov 27, 2012 11:46:04 EST
Female Marines soon will be required to perform pull-ups, just like male Marines do, as part of their annual physical fitness tests, the Marine Corps’ top general announced Tuesday. [more]
For years, women have been excused from some of the rigors that men had to face because women supposedly lacked upper body strength.  But recent experiments by the Marine Corp have proved conclusively that with the correct basic training regimen, there is absolutely no difference in the performance results between men and women... and, in fact, some women scared the hell out the men.

The Marines have published a picture of a typical female recruit after participating in the Marine's experimental training program.

The disclaimer was that some genetic and chemical modifications were required, but they did not see any long-term downside from that.

These women Marines will not be required to wear head covering scarves in Afghanistan and the Marine Corp does not expect any protests by the Afghans.


Obama Administration To Rename Fiscal Cliff "Bump In The Road"


Life is full of little "bumps in the road."  Bumps in the road are much more palatable to the guy in the car than "cliffs ahead."

So, with discussions in Washington going nowhere to address the "fiscal cliff" situation, the Obama administration will shortly announce that we are headed toward a "fiscal bump in the road" which will hardly be noticeable by most people... except those with taxes to pay, retirement savings, and homes which are worth less than they paid... and maybe doctors... and perhaps the armed forces... and people who use dollars to pay for goods and services.

But those are just minor "bumps in the road."  The good news is that Washington, D. C. will still be home to the Congress and the President who, incidentally, are not subject to bumps in the road.

Isn't it amazing how things that seem big can be made much more manageable if we just use the right words?  And if you use the right words and they worked once, why not use them again... and again?

Bumpity, bumpity, bump, bump, bump....




Tuesday, November 27, 2012

Obama On Egypt: Leading From Behind Again


Recently, this post discussed President Obama's reaction to the Muslim Brotherhood and Egypt's President Morsi:


Now Obama's administration is expressing concern about Morsi's power grab.  But don't expect the same pressure or actions taken against Egypt's former leader Hosni Mubarak or Libya's dictator Qaddafi.  There will be no U.S. fly-overs.  There will be no U.S. calls for Morsi to step down.  There will just be a statement about how establishing a new government in a troubled area can sometimes require "strong leadership" to protect a "fledgling democracy" ... or some such tripe.
The Wall Street Journal published this a day later.
"Mr. Obama told aides he was impressed with the Egyptian leader's pragmatic confidence," the Times reported. "He sensed an engineer's precision with surprisingly little ideology. Most important, Mr. Obama told aides that he considered Mr. Morsi a straight shooter who delivered on what he promised and did not promise what he could not deliver."
Going on in this gushing vein, the Times concluded: "As for Mr. Obama, his aides said they were willing to live with some of Mr. Morsi's more populist talk as long as he proves constructive on substance. 'The way we've been able to work with Morsi,' said one official, 'indicates we could be a partner on a broader set of issues going forward.' "
A day after this era of good feelings had begun, Mr. Morsi awarded himself dictatorial powers. The worst that White House spokesman Jay Carney would say is that the administration is "concerned." 
You could call that "tripe."  While President Obama once again "leads from behind," the people of Egypt have taken action.
Tens of thousands of people have held protests in Cairo against Egyptian President Mohammed Mursi, who last week granted himself sweeping new powers.
Flag-waving demonstrators chanted slogans accusing the president and the Muslim Brotherhood of betraying last year's revolution.
On Monday Mr Mursi sought to defuse the crisis by saying the decree granting him new powers was limited in scope.
However, his opponents want him to withdraw the measure completely.
Ahead of Tuesday's rally, opposition activists clashed with police protecting the nearby US embassy. A protester, who was in his fifties, died of a heart attack after inhaling tear gas.
Activists later converged on Tahrir Square - the main focus of the revolution that ousted President Hosni Mubarak - for one of the largest demonstrations to date against Mr Mursi.
"We don't want a dictatorship again. The Mubarak regime was a dictatorship. We had a revolution to have justice and freedom," protester Ahmed Husseini was quoted as saying by Reuters news agency."The people want to bring down the regime," marchers chanted, echoing slogans used in last year's protests. [more including video here]
You can forgive President Obama for misjudging the situation in Egypt.  After all, he is viewing the world through the eyes of someone who appreciates the "precision" of people such as Morsi... and Chavez... and Ahmadinejad... and Stalin... and Mao.


Despising Christian Views While Cheering On The Proponents Of Sharia


Don't you find it peculiar that the "liberals" who are so overwhelming antagonistic toward conservative Christians and their positions on sex and abortion and homosexual marriage... those very same liberals embrace the wonderful changes occurring in the Middle East led by the Muslim Brotherhood [nothing in that name that should sound alarm bells for a liberal] who want to institute...


"Homosexuality is one of the most disgusting sins and greatest crimes.... It is a vile perversion that goes against sound nature, and is one of the most corrupting and hideous sins.... The punishment for homosexuality is death. Both the active and passive participants are to be killed whether or not they have previously had sexual intercourse in the context of a legal marriage.... Some of the companions of the Prophet stated that [the perpetrator] is to be burned with fire. It has also been said that he should be stoned, or thrown from a high place."

That doesn't seem all that liberal.
In accordance with hadith, stoning to death is the penalty for married men and women who commit adultery. In addition, there are several conditions related to the person who commits it that must be met. One of the difficult ones is that the punishment cannot be enforced unless there is a confession of the person, or four male eyewitnesses who each saw the act being committed. All of these must be met under the scrutiny of judicial authority.[123] For unmarried men and women, the punishment prescribed in the Quran and hadith is 100 lashes.[124] However, Islamists in northern Mali, citing shariah law, stoned an unmarried couple who allegedly had children together to death in 2012.[125] [source]

Ouch! A rather liberal use of deadly force.
For most instances, Islam forbids abortion. For instance, if a woman becomes pregnant due to committing fornication or adultery, she cannot abort her child simply to avoid shame or hide her sin.
Likewise, if a man impregnates a women [sic], whether she is his wife or not, he cannot force her to get an abortion, regardless of his reason for doing so. He cannot request her to abort her child to save face or because he fears he may not be able to take care of the child. [source]
How very conservative!

So, tell us once again why the Muslim Brotherhood led Arab Spring is so beloved by the liberals whose biggest agenda beyond more federal benefits is fighting the "war on women"?  Why love these misogynists so much?
CAIRO — Egypt's Muslim Brotherhood said Wednesday it is committed to enshrining Islamic Shariah law as the main source of a new constitution, seeking to mollify ultraconservative Islamists who accuse the group of not advocating strongly enough for Islamic rule. [source]
Okay, everybody back.  Let's give the liberals plenty of room to tap dance.

Hey, at least they're not those horrible Zionists who are so evil because they resist extermination.
  • Israel has some of the most liberal laws in the world when it comes to homosexual rights, and is in many ways ahead of many countries in Europe and the United States.[source]
  • In 1999, 19,674 applications out of 20,581 were approved (96%) and 18,785 pregnancies were terminated. In addition, 16,000 abortions were illegally performed in private doctors' clinics. In general, about 40,000 abortions are carried out in Israel every year. The Health Ministry approves about half of them, and private doctors perform the rest, without the supervision of the state and at the cost of thousands of shekels. [source]
  • The court held that adultery may be a ground for a tort action as well as for an action based on breach of contract. Although Israel's Civil Wrongs Ordinance (New Version), as amended, does not contain any specific tort based on adultery, the court held that adultery might constitute negligence in some circumstances, in accordance with section 35 of the Ordinance. The court found that adultery might also be recognized as a breach of a contractual obligation that is inferred from a marriage; specifically, that of respecting mutual loyalty and the commitment not to engage in adultery. [source]
Now you see why liberals love the Arab revolutions and find Israel to be so revolting.  I mean, how harsh is that last dot point.  OMG!

Yup, Muslim Brotherhood ... Sharia ... live and let live they always say ... don't they?

Monday, November 26, 2012

The War On: Name Your Victim


Now that the 2012 elections are over and the victims have re-elected President Obama, we should stand back and examine how stereotypes have become so ingrained that all you have to do to be re-elected after four years of outstanding failure is declare that you are against the WAR ON [VICTIMS].

So, just to make it clear, here are three very important victim groups that re-elected President Obama.

You got your women victims...

and Latino victims...

and African American victims.

President Obama focused on these special interest groups while taking firm action against the oppressor group.

Why are these stereotypes any more unfair than the opposite stereotypes?

If women pay more than men for health insurance, why is that more unfair than men paying more than women for car insurance and life insurance?

If some white males earn more than some Latinos and some blacks, why is that more unfair than if some Latinos and some blacks earn more than some white males?

Our first half-white President made up some half-assed stories and 51%-ers swallowed it hook, line, and sinker.  What do you mean you don't like the descriptive phrase before "President?"

Sunday, November 25, 2012

Obama: Egypt Will Never Be The Same


President Obama has had an agenda to legitimize the Islamist forces in the Middle East while sidestepping the pachyderm in the room: the Arab Spring is about new Arab tyrannies.

This is the shallow mind of a man with an agenda, but not an understanding of the world.

Just a few days ago, President Obama was praising Egypt's new Pharaoh Morsi for brokering a cease fire between Israel and Muslim Brotherhood backed Hamas after the Muslim Brotherhood Morsi government allowed arms to flow between Egypt and Gaza.  No hint of a possible problem there as far as Obama was concerned.

Now Obama's administration is expressing concern about Morsi's power grab.  But don't expect the same pressure or actions taken against Egypt's former leader Hosni Mubarak or Libya's dictator Qaddafi.  There will be no U.S. fly-overs.  There will be no U.S. calls for Morsi to step down.  There will just be a statement about how establishing a new government in a troubled area can sometimes require "strong leadership" to protect a "fledgling democracy" ... or some such tripe.

Yes, Egypt will never be the same.



Friday, November 23, 2012

Obama's Newest Buddy Morsi Reveals The Essence Of The Arab Spring


Arab Spring?  Hardly.

Mohammed Morsi grants himself sweeping new powers in wake of Gaza.

Mohammed Morsi, the Egyptian president, was accused of appointing himself as “Egypt’s new pharaoh” after he gave himself sweeping powers to oversee the country’s political transition in the wake of his success in negotiating a ceasefire in Gaza. [read more]


This is the guy that President Obama was anxious to legitimize before the torches of revolution had cooled and the voices of reason were heard.


This is the guy who wanted to destroy the Camp David accord for peace with Israel.


This is the guy who allowed all manner of armaments to pass from Egypt to Gaza to be used against Israel.


This is the guy who helped set up the recent attacks against Israel so that he could step in to "broker" a cease-fire [in which rockets still kept hitting Israel] and proclaim himself the new "leader" of the Middle East.


This is the guy who President Obama sees as the "model" for the future... a model tyrant who has the same Islamist sympathies as Barack Obama's and Hillary Clinton's close friends and advisors Valerie Jarrett of Iranian extraction and Huma Abedin of Saudi Arabian extraction.


This is the guy the 51%-ers have ensured will get increasing U.S. money to foster more Islamist terrorism.

So much for the "Arab Spring."  Here comes the Arab Hell.  Watch for more in Syria and Jordan.

You have to wonder what those Jews for Obama were thinking.  Well, they weren't.  One can only conclude they have a fatalistic death wish.  You have to wonder what those women who voted for Obama were thinking.  They must love the burqa fashion statement.

This is becoming all too familiar.


Obama administration... friend to tyrants around the world.



Wednesday, November 21, 2012

Thankful We Do Not Live In New York City


While many of us contemplate a Thanksgiving Day meal of freshly baked turkey and stuffing and potatoes and vegetables and pies, New York City has decided that if you are to receive a meal from charity, you can't have the kind of meal the rest of us would enjoy.

From the Heritage Foundation:

Just in Time for Thanksgiving: Bloomberg Puts Homeless on a Diet.

Thinking of giving food to the homeless this Thanksgiving? Well, if you’re in New York City, that food had better comply with new nutrition standards issued by Mayor Michael Bloomberg’s Health Department.
As of October 31, shelters, soup kitchens, and the like are barred from accepting food donations unless packaged and bearing nutrition data. That, according to a recent report at, effectively means an end to the tons of free meals previously provided by the likes of Glenn Richter, who has collected surplus food from synagogues to share with the poor for some 20 years.
The new rules require that meals and snacks served to the needy be prepared in compliance with precise nutrition standards laid out by government bureaucrats.
Consequently, shelters are unable to accept food donations that are not prepackaged, because it is nearly impossible to know the exact nutritional content of such foods. This means that restaurants, churches, and community groups can no longer easily give surplus or prepared food to those who need it most.
Well, Happy Thanksgiving America ... except for New York City which has elected the likes of Big Nanny Mayor Bloomberg who is practicing his role as the Grinch for Christmas ... er, the Winter Solstice Festival.

No, you can't have a candy cane.

Sanity: If Muslims Want Peace... Stop Attacking


Here is a solution for Middle East peace.  Convince the Muslims to stop attacking Israel. [image] Then Israel will stop attacking Muslims in retaliation.

What's wrong with that?

Muslims will not stop attacking Israel.  Why?  They don't want peace with Israel; they want Israel destroyed.  Why?  Because Israel represents the antithesis of Islam.  What do you mean?  Islam is the forcible subjugation of rational thinking.

Insanity: expecting a different outcome while repeating the same action.  Insanity: expecting Muslims to seek peace as understood by the rest of the world.  Insanity: supporting the efforts of the Muslims.


Tuesday, November 20, 2012

2013: Housing: Boom Or Bust?


Everyday it seems there are new stories about how the U.S. housing situation is getting better.  But there are a few voices in the wilderness who are calling out, "Watch out below!"

The Wall Street Journal supports that general contention with this specific warning about the Federal Housing Authority:
The Latest Taxpayer Housing Bust. 
With the election over, we learn that the FHA is insolvent.
Vindication is overrated, especially in a losing cause, so it brings no satisfaction to have predicted that the Federal Housing Administration would sooner or later threaten taxpayers. That day has arrived. Safely past the election, the feds announced Friday that the FHA's liabilities exceed its assets by at least $16.3 billion—and the gap could reach $93.7 billion in the worst case. [more]
And what is the Obama administration doing about this?


Yup, fiscal responsibility be damned.  We're going to have social justice.

Maybe it's time for the Social Justicer In Chief to go back to doing what he does best.


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There is always an easy solution to every human problem—neat, plausible, and wrong.
Henry Louis Mencken (1880–1956)
“The Divine Afflatus,” A Mencken Chrestomathy, chapter 25, p. 443 (1949)
... and one could add "not all human problems really are."
It was beautiful and simple, as truly great swindles are.
- O. Henry
... The Government is on course for an embarrassing showdown with the European Union, business groups and environmental charities after refusing to guarantee that billions of pounds of revenue it stands to earn from carbon-permit trading will be spent on combating climate change.
The Independent (UK)

Tracking Interest Rates

Tracking Interest Rates


SEARCH BLOG: FEDERAL RESERVE for full versions... or use the Blog Archive pulldown menu.

February 3, 2006
Go back to 1999-2000 and see what the Fed did. They are following the same pattern for 2005-06. If it ain't broke, the Fed will fix it... and good!
August 29, 2006 The Federal Reserve always acts on old information... and is the only cause of U.S. recessions.
December 5, 2006 Last spring I wrote about what I saw to be a sharp downturn in the economy in the "rustbelt" states, particularly Michigan.
March 28, 2007
The Federal Reserve sees no need to cut interest rates in the light of adverse recent economic data, Ben Bernanke said on Wednesday.
The Fed chairman said ”to date, the incoming data have supported the view that the current stance of policy is likely to foster sustainable economic growth and a gradual ebbing in core inflation”.

July 21, 2007 My guess is that if there is an interest rate change, a cut is more likely than an increase. The key variables to be watching at this point are real estate prices and the inventory of unsold homes.
August 11, 2007 I suspect that within 6 months the Federal Reserve will be forced to lower interest rates before housing becomes a black hole.
September 11, 2007 It only means that the overall process has flaws guaranteeing it will be slow in responding to changes in the economy... and tend to over-react as a result.
September 18, 2007 I think a 4% rate is really what is needed to turn the economy back on the right course. The rate may not get there, but more cuts will be needed with employment rates down and foreclosure rates up.
October 25, 2007 How long will it be before I will be able to write: "The Federal Reserve lowered its lending rate to 4% in response to the collapse of the U.S. housing market and massive numbers of foreclosures that threaten the banking and mortgage sectors."
"Should the elevated turbulence persist, it would increase the possibility of further tightening in financial conditions for households and businesses," he said.

"Uncertainties about the economic outlook are unusually high right now," he said. "These uncertainties require flexible and pragmatic policymaking -- nimble is the adjective I used a few weeks ago."

December 11, 2007 Somehow the Fed misses the obvious.
[Image from:]
December 13, 2007 [from The Christian Science Monitor]
"The odds of a recession are now above 50 percent," says Mark Zandi, chief economist at Moody's "We are right on the edge of a recession in part because of the Fed's reluctance to reduce interest rates more aggressively." [see my comments of September 11]
January 7, 2008 The real problem now is that consumers can't rescue the economy and manufacturing, which is already weakening, will continue to weaken. We've gutted the forces that could avoid a downturn. The question is not whether there will be a recession, but can it be dampened sufficiently so that it is very short.
January 11, 2008 This is death by a thousand cuts.
January 13, 2008 [N.Y. Times]
“The question is not whether we will have a recession, but how deep and prolonged it will be,” said David Rosenberg, the chief North American economist at Merrill Lynch. “Even if the Fed’s moves are going to work, it will not show up until the later part of 2008 or 2009.
January 17, 2008 A few days ago, Anna Schwartz, nonagenarian economist, implicated the Federal Reserve as the cause of the present lending crisis [from the Telegraph - UK]:
The high priestess of US monetarism - a revered figure at the Fed - says the central bank is itself the chief cause of the credit bubble, and now seems stunned as the consequences of its own actions engulf the financial system. "The new group at the Fed is not equal to the problem that faces it," she says, daring to utter a thought that fellow critics mostly utter sotto voce.
January 22, 2008 The cut has become infected and a limb is in danger. Ben Bernanke is panicking and the Fed has its emergency triage team cutting rates... this time by 3/4%. ...

What should the Federal Reserve do now? Step back... and don't be so anxious to raise rates at the first sign of economic improvement.
Individuals and businesses need stability in their financial cost structures so that they can plan effectively and keep their ships afloat. Wildly fluctuating rates... regardless of what the absolute levels are... create problems. Either too much spending or too much fear. It's just not that difficult to comprehend. Why has it been so difficult for the Fed?

About Me

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Michigan, United States
Air Force (SAC) captain 1968-72. Retired after 35 years of business and logistical planning, including running a small business. Two sons with advanced degrees; one with a business and pre-law degree. Beautiful wife who has put up with me for 4 decades. Education: B.A. (Sociology major; minors in philosopy, English literature, and German) M.S. Operations Management (like a mixture of an MBA with logistical planning)