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Sunday, September 12, 2010

Was This An Effing [ham] Joke?

SEARCH BLOG: HOMELAND SECURITY

Effingham deputies call feds after arresting Russians with shovel, wire cutters outside Georgia Power plant
Posted: September 9, 2010 - 6:05pm | Updated: September 9, 2010 - 7:31pm
SPRINGFIELD — Effingham County sheriff deputies have reported the early Sunday morning arrest of three men to the federal Joint Terrorism Task Force.
The men, two from Russia and one from Kazakhstan, were found near Georgia Power’s Plant McIntosh on Old Augusta Road about 1 a.m. Sunday after a ranger with the Department of Natural Resources reported a suspicious vehicle, Effingham County sheriff’s spokesman David Ehsanipoor said.
Deputies reported the men, who were inside a 1995 Nissan Pathfinder, had a machete, shovel, wire cutters and ski masks. One man also had black silk stockings in his front left pocket.
Arrested were Evgeniy Luzhetskiy, of Kazakhastan, Nail Idiatullin and Rustem Ibragimov of Russia. All three reported they lived in Charleston, S.C., deputies reported.
The men were all charged with possession of tools during the commission of a crime.
The three were released after being interviewed by task force members, Ehsanipoor said.
"They did all have visas that allowed them to be here and are supposed to be leaving the country soon.". [source]
So, three men from "Russia" outside of a power plant with tools to break in and masks to conceal their identities are charged with a crime [indeterminate] and released because they had "visas that allowed them to be here and are supposed to be leaving the country soon." 


They probably wanted to run an illegal line to their double-wide.  The silk stockings were probably to impress a girl friend.


Perhaps she has a better explanation.

2012 IS GETTING CLOSER

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No Offense Meant

SEARCH BLOG:


From Man-Sized Target:

General Petraeus has suggested that this Koran burning hurts the war effort. Isn’t that interesting? What other things that Americans take for granted hurt the war effort? Wouldn’t the recent push for same sex marriage or five minutes of MTV or women wearing bikinis at the beach also offend Muslim sensibilities? Didn’t our protection of the Saudis from Saddam offend Muslim sensibilities, simply by allowing Americans to set foot in an Islamic land? Doesn’t our presence now in Iraq and Afghanistan deeply offend Muslims, not to mention the numerous civilians killed accidentally (but inevitably) by airstrikes and drones and scared shitless 19 year old American soldiers. Indeed, much of our country and its practices, some good and some not so good, are deeply offensive to any traditionally religious person. Nonetheless, none of these things have typically been up for debate as part of a “hearts and minds” campaign halfway around the world. Recall the Danish cartoons, which were eminently defensible, also caused similar mass Muslim rioting. While uneasy with Koran burning, I see that there is something valuable in Terry Jones’ provocation simply for revealing so many people’s true colors, and this was, in fact, one of his stated reasons for this event.
Well, we wouldn't want to offend anyone... especially anyone still living in the 7th century.

By the way, what is this thing about "Muslim land?"  Did the ground convert to Islam?  Does that make England and the U.S. "Christian land?"  Should we be offended because a Muslim enters or tries to build a religious edifice?

2012 IS GETTING CLOSER

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A Drug On Our Society

SEARCH BLOG:

The other day, Mark Perry ran a post about the legalization of drugs.  I posted this comment:

I have no problem with legalizing drugs provided: 
1. users are ineligible for state assistance in other areas; if users can afford legalized drugs, they can afford food, shelter, health care insurance, and gaining employable skills.
2. users who commit crimes under the influence of drugs are subject to mandatory "COLD TURKEY" withdrawal from use; they obviously can't handle their drugs and are a danger to others.
3. sellers who do not pay their taxes are subject to forfeiture of all of their property and money unless they can prove that the property was not purchased from drug funds and the money was not acquired from the sale of drugs... it is assumed their property and money come from unreported drug sales.
4. sellers must have their facilities inspected monthly on a random basis by different inspectors each time; the government must ensure that the product is "safe" and inspectors cannot establish a relation with the sellers to encourage bribery.
5. legalization must be reaffirmed by vote 5 years after the date legalized; if legalization spreads the use of drugs, violence, social problems, and user inability to function productively, drug sale and use should be re-criminalized; citizens will have a chance to reconsider voting for those who legalize drug sale/use.
I have no issue with those who want to ruin their own lives except they want the privilege... the right... of having others bail them out of their irresponsibility... and no one seems concerned about that aspect.   [picture source]

2012 IS GETTING CLOSER

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Fun Football

SEARCH BLOG: FOOTBALL

It was a good week for Michigan football in the Big Ten.  Both Michigan State University and the University of Michigan squeezed out wins.

MSU won with relative ease as was expected against an outmanned Florida Atlantic University team that doesn't even have its own stadium.  Still FAU didn't exactly roll over for the big guys from the Big Ten.  MSU has some work before it is ready for Big Ten competition.

The University of Michigan continues to surprise everyone after two very disappointing seasons.  Their new starting quarterback, Denard Robinson, has run and passed for almost 1,000 yards, in just two games.  Could he be the first 10,000 yard single-season player?  Not likely, but he is fun to watch.

UM defensive coordinator  [picture from The Detroit News], Greg Robinson [no relation], called the infamous "prevent defense"... three slow linemen rushing the passer... with about 4 minutes to go in the game and Notre Dame on its own 4 yard line.  Surprise!  The quarterback had approximately 3 months to find a receiver and toss a touchdown pass.

UM came back with Denard Robinson to score the go-ahead touchdown with about a minute to go.  Then Greg Robinson decided to use the same 3-man rush that got UM burned a few minutes earlier.  What's the definition of doing the same thing over and over and expecting different results?

Well, UM was fortunate and Notre Dame's quarterback threw a pass from UM's 26 yard line that only my 1-1/2 year-old grandson could be proud of, so the game ended in UM's favor.  But Greg Robinson should reconsider his defensive strategy in those late game situations so that he doesn't screw up the effort of young Denard Robinson in some future game.

2012 IS GETTING CLOSER

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Saturday, September 11, 2010

Friday, September 10, 2010

Before Islamophobia Ran Rampant In The U.S.

SEARCH BLOG: ISLAM

9/10/01


The U.S. during more enlightened times when no one even thought about making an issue about the location of a mosque.

2012 IS GETTING CLOSER

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Thursday, September 09, 2010

Your Green Subsidy Dollars Working - In China

SEARCH BLOG: CHINA

Now, Changsha and two adjacent cities are emerging as a center of clean energy manufacturing. They are churning out solar panels for the American and European markets, developing new equipment to manufacture the panels and branching into turbines that generate electricity from wind. By contrast, clean energy companies in the United States and Europe are struggling. Some have started cutting jobs and moving operations to China in ventures with local partners. [source]
Some will argue that is just fine.  We get cheap goods to solve our future energy problems.  Free trade wins again!

The rest of the story:
But much of China’s clean energy success lies in aggressive government policies that help this crucial export industry in ways most other governments do not. These measures risk breaking international rules to which China and almost all other nations subscribe, according to some trade experts interviewed by The New York Times. 
Free trade, not a chance; it is time to demand reciprocal trade.  China is using trade as a weapon to undermine the manufacturing and strategic capabilities of the United States and Europe.  This is beyond the ken of economists.

2012 IS GETTING CLOSER

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Wednesday, September 08, 2010

Who Is Planning To Declare Independence?

SEARCH BLOG: DECLARATION OF INDEPENDENCE



I find it odd that in the almost two months since I ran a series of posts centered on the Declaration of Independence, that about one in every five visits goes to those pages... and not just from the U.S.

What's the attraction?  It's as if there are a lot of people looking back more than two centuries and thinking, "Maybe we need another go 'round on this."

 Ironically, quite a few were from the United Kingdom.  Perhaps they were just enjoying a little laugh at our expense.

2012 IS GETTING CLOSER

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Tuesday, September 07, 2010

The One Gets One Right

SEARCH BLOG: ECONOMY

From Rasmussen Reports:

It’s all midterm-election politics, but Obama’s last-minute idea for 100 percent tax write-offs for corporate investment is, in fact, a good idea.
He proposes a two-year window to incentivize businesses to bring forward their investments. From the standpoint of investment, it’s the right way to go. Perhaps Larry Summers now thinks tax cuts are the right way to go, too.
CEOs like Fred Smith of FedEx have argued for full cash expensing for many years, along with a big drop in the corporate tax rate itself. This is what Team Obama should have done in the first place: Slash business tax rates and accelerate investment-depreciation schedules.
Years ago, Gary and Aldona Robbins did work showing that accelerated investment depreciation gives the biggest bang for the buck -- roughly $10 of new GDP for each dollar of faster tax write-offs for investment. Those write-offs, a lower capital-gains tax rate, and a cut in the corporate tax have been powerful economic stimulants in the past. [source]
The problem may be that it's a bit late in the game... after spending all of those hundreds of billions on Soviet-style programs... but maybe better late than never.   Of course, The One has no intention of giving up his Soviet-style programs because he might have something that actually helps the economy.  He doesn't want to be perceived as a Conservative.

2012 IS GETTING CLOSER

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New Study: Asphalt Surfaces Hotter Than Watered Fields

SEARCH BLOG: ENVIRONMENT

A new study indicates that "urbanization"... the process of replacing natural landscapes or agricultural land with paved streets and concrete structures... seems to make temperatures in the areas higher. [source]  Well, duh!

Haven't you ever heard something like, "Lows tonight in the 50s; cooler in the outlying areas?"  Replace a naturally cooled system with a giant heat sink and what do you get?  Come on, the answer isn't that hard.  Now put your weather stations inside those heat sinks and what do you get?  Really, it isn't that hard.

Now, reflect upon the fact that this urbanization process has increased remarkably over the past century and that weather stations are increasingly within the areas affected by these giant heat sinks and what do you suppose happens to the weather data?  No, I won't explain it further.  You're smart enough to figure that out.

2012 IS GETTING CLOSER

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President Obama's New Idea For The Economy

SEARCH BLOG: STIMULUS


Interesting concept. But how does his track record speak?
(AP) A group of Democratic senators is urging the Obama administration to suspend an economic stimulus program aimed at financing renewable energy, complaining that money is going to projects that are creating jobs in foreign countries. [source]
Okay, but this is for highways and bridges and infrastructure!

WASHINGTON -- President Obama's top economist gave administration support for a new $75 billion stimulus plan that passed the House last month, but a new analysis shows the government has stimulated little in the past year through one of its most vaunted programs -- road construction.

In fact, regions and states that received ample stimulus funding for building roads and bridges had equally high unemployment rates as areas that didn't get cash from the $787 billion recovery package signed in February of last year, a new Associated Press analysis found. [source]

Okay, maybe not so much highways and bridges... but infrastructure!  Is this what he had in mind?


And how about those tax cuts?  No, not the cut in rates and the elimination of the marriage penalty.  Those neat $250 rebates!  Keep those in mind when the Bush tax cuts expire in 2011.
A couple earning $80,000 a year in adjusted gross income might pay about $2,200 extra. A married couple on $160,000 a year: Maybe $5,500 extra. [source]
Not a big deal if you are not working or paying taxes.  Maybe a big deal to the small business owner who might hire you otherwise.

I have to hand it to the President; he found the groove in front of his union buddies... even if he didn't make any sense to anyone else.

2012 IS GETTING CLOSER

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Monday, September 06, 2010

As American As...

SEARCH BLOG: DIVERSITY


From Weasel Zippers:

Colorado: High School Forces Student to Take American Flag Off Truck, Worried it Would Make Others “Feel Uncomfortable”…
If someone is “uncomfortable” seeing an American flag then too farking bad, this is America, deal with it or GTFO (the latter being preferable)…
“She said I should take my flags down. She said this is a school that focuses on diversity and she doesn’t want anyone to feel uncomfortable,” Stoppel said. “How do you suppose anyone would feel uncomfortable in America with an American flag? That’s where I’m confused.”
H/T:Scott Baker
Posted by ZIP on Monday, September 6, 2010, at 1:20 PM
She wanted this flag on the truck...? to make "others" feel comfortable...?

... as tamales and tequila.

Or this one?

The colors are close enough.

What's the matter with 50 stars and 13 stripes.  That's a lot of diversity.

2012 IS GETTING CLOSER

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Laboring On Labor Day

SEARCH BLOG: ECONOMY

As Americans take a day off to enjoy the defacto end of summer with a made for fun holiday, there are many who by choice or by need work this day.  Once the vast majority of Americans earned their living off the land.  Today, those who do so are in a small minority.  But they represent a picture of America that is closer to its soul than anything else.

The American farmer lives where he works.  He gets up before the sun and does so every day, every week, every month and every year.

He invests more to keep his farm productive, competitive, and efficient than most businessmen will for their businesses.  His livelihood depends on his shrewdness, his risk tolerance, and sometime a lot of luck.  He has to deal with the whims of the government, the whims of the weather, and the whims of the marketplace.

He raises crops, but often not for sale, but rather to feed the animals that either are his products for sale or produce his products for sale.  He deals with the organic; the crops, the animals, the manure, the flies, the smell of living off the land.  Sometimes his product gets tainted and the news reporter in his blue suit and red tie reads in a most aghast tone that his animals were raised where there was manure and flies and smell... as if somehow those eggs or that milk or those chickens or that beef came from sterile laboratories.  What should be surprising is that most of these farmers can and do produce high quality, healthy products for our table in spite of nature.  These farmers have their pride and their lives wrapped up in what they produce and do not take their task lightly.

100 years for a family farm is not really a long time, but it's a big deal if a manufacturer lasts that long.  Sometimes there are four generations living and maybe even working on a farm.  Kids who are too young to drive on the roads are navigating rutted fields in equipment that dwarfs a tractor-trailer.  They may not be able to manipulate money in a hedge fund, but they actually produce things that this nation needs... and get paid a lot less for their efforts.

So, while the unions and the rest of us sit around and enjoy our morning omelets or afternoon grilled hamburgers or steak or chicken, these gritty Americans get up before the sun and do what has to be done for the rest of us... and a lot of other people around the world.  They know that every day is a labor day.

2012 IS GETTING CLOSER

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Saturday, September 04, 2010

It's The Fault Of The School System

SEARCH BLOG: EDUCATION

If your child simply doesn't care about school, it's the system that is biased against him.  [Warning: MA L]


I'd put him in a for-profit private charter school paid for by the Federal government and run by Libertarians.

2012 IS GETTING CLOSER

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Friday, September 03, 2010

Oxymoron: Free Trade With China

SEARCH BLOG: CHINA

In a world of "free trade" theory, China once again reminds us that reality bites:

Foreign companies ‘losing out’ in China
By Jamil Anderlini in Beijing
Published: September 2 2010 13:24 | Last updated: September 2 2010 13:24
Foreign companies are losing market share in China across a broad range of industries because of discriminatory treatment by the government and regulators, according to the European Chamber of Commerce in China.
In its annual position paper, the organisation aired a host of complaints from its member companies and explicitly accused Beijing of violating its World Trade Organisation commitments through its heavy-handed certification requirements.  [full story]
If ifs and buts were candy and nuts....

Trade reciprocity, not fictitious free trade.

2012 IS GETTING CLOSER

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Thursday, September 02, 2010

Maybe Better Than Public, Charter, Or Private Schools

SEARCH BLOG: EDUCATION

Al Fin has been a big proponent about changing the way children and young adults should be educated.  This is a good site for a variety of interesting reason, so you should check it out.

After my wife came across a video about the Khan Academy and I viewed it and check out the Khan Academy site, I sent a note to Al Fin about it before I realized there was already a link on the Al Fin site.  Regardless, it is worth a few minutes of your time.  Here is an example of an individual [Salman Khan] and a corporation [Google's YouTube] working in tandem without any formal association between them to create something of potentially great value and efficiency.

It would be great if other brilliant thinkers [not just brilliant and not just thinkers, but those who can brilliantly make their thoughts understandable] did something similar?

2012 IS GETTING CLOSER

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Wednesday, September 01, 2010

Nuclear Armed Iran - Don't Worry Be Happy

SEARCH BLOG: IRAN

Recently, the U.S. government came up with this proposal to Israel if Israel would agree not to attack a nuclear-armed Iran.

To make Israel feel secure in the new reality, Riedel "proposed" four steps for strengthening the Israeli armed forces and lending it a second-strike capability - even against an Iranian nuclear attack.
1. The US must spread a nuclear umbrella over Israel that would entail the installation of American nuclear depots in Israel to show Tehran that a nuclear attack on the Jewish state would meet with a US nuclear response.
2. American nuclear submarines would be supplied to the Israeli Navy as the backbone of its nuclear counter-strike capability. There are two categories - ballistic missile submarines and attack submarines.
3. The Israeli Air Force would receive US F-22 Raptor stealth jets, the most sophisticated warplane in the skies today. They would be equipped with all the systems and ordnance needed to strike the Iranian nuclear program.
4. The US would arrange for Israel's full membership of NATO, so rendering an Iranian nuclear attack on Israel subject not just to US retaliation but a declaration of war by the 26-member alliance. [full story]
Let's look at the items:
  1.  If Iran was belligerent enough to attack Israel with nuclear weapons, what makes the U.S. think that Iran would not attempt to deliver strikes against the U.S. in a variety of ways... by ocean transport, by suitcase bombs, by EMP attack?  This is a meaningless point.  The Obama administration would want to "negotiate" after the fact.
  2. American submarines are nice, but Israel already has a submarine force with nuclear missiles.  That counterpunch already exists for Israel.
  3. Israel has already demonstrated the ability to fly sorties into areas with sophisticated defenses and return them safely.  The U.S. overestimates its technology advantages versus what the Israelis have developed for themselves.
  4. Wow! NATO.
What makes the U.S. government think that Israel is willing to let Iran strike its tiny country with nuclear weapons just to please President Obama and his "report human rights violations" Secretary of State Clinton?

The Israelis know that military commitments under the Obama administration come with a very limited time warranty and the warranty is subject to change of content.

2012 IS GETTING CLOSER

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Illegals Si; Soldiers No

SEARCH BLOG: GOVERNMENT

It may be illegal under federal law to check to see if someone is attempting to vote who is an illegal alien, but it is legal under federal law to delay the voting process for U.S. soldiers so that their votes do not count.  [you need to register ... email, password of your choosing, screen name to view this... nothing sinister]


2012 IS GETTING CLOSER

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The Fantasy Of Smaller Government

SEARCH BLOG: GOVERNMENT

Everyone talks about smaller government, but the reality is that governments cannot easily get smaller once they have been instituted.  More than likely, governments will expand regardless of which political party to which politicians claim allegiance is in power.

Here is a perspective of what political philosophies claim and then... what is....



The reality of politics in the United States is that there are two fringe groups... Libertarian and Communist... that make a lot of noise, but generally get ignored when it comes to reality.  That leaves so-called conservatives and liberals, both of which practice government essentially in the same way.

Conservatives will argue that they want smaller government, but the reality is that conservatives simply want government to spend tax dollars differently... and, perhaps, less.  In practice, Conservatives have been more than willing to let the government purchase services from them rather than have the government purchase services directly from government employees.  That's outsourcing.  Think charter schools.  It is the notion that if the government spends tax dollars to purchase services from a for-profit entity, the services will be better and more efficient that if purchased from permanent employees.  There may be some degree of truth in some instances, but the effect is the same... government controls... taxpayers pay.

It all boils down to control.  Who controls the money and how is the money spent... not necessarily that money will not be spent... that government will get smaller.  It is a matter of degree and direction... and perhaps rate of growth.

Libertarians argue that their approach is the only alternative to large government.  Libertarians are correct.  Libertarians are also out of touch with reality.  Why?  Because most people want a government that provides structure, predictability, security, rules... people do not want to face the rest of the world simply as individuals.  Well, a few people are okay with that, but the vast majority are not.  Many specific agendas the Libertarians espouse are well-intentioned and might work in a world where corruption, greed, manipulation, and crime don't infest the economic world... but they do.  And individuals involved in economic transactions are not necessarily sufficient to deal with that... unless a 40 cal. Glock is in play.

It is a matter of being practical in a world where power is easily organized.  A million individuals, each going their own way without regard to the wants and needs of others, cannot compete against a million organized individuals... even if that organization costs more and may be restrictive on an individual basis.  The Libertarian might argue that a million individuals could simply hire those among them to provide protection and other services as needed.  But the reality is that, without organization, a million people could never create an efficient and effective pseudo-system because no one would be willing to give up their individual "liberty" to achieve a "group benefit."

It's human nature... from the time that the first proto-humans banded together and leaders emerged and a hierarchal structure was created.  Free-agent individuals in the absence of some form of government is a fantasy.  What is also human nature is to live with a situation until it becomes intolerable... and then destroy the root of that situation... and start all over again with another government that will eventually run amok.

"The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. ... God forbid we should ever be twenty years without such a rebellion; what country can preserve its liberties if their rulers are not warned from time to time that their people preserve the spirit of resistance? Let them take arms." -- Thomas Jefferson to William Stephens Smith, 1787
That wasn't a threat; it was just an observation.  The faster central government grows, the more likely there will be resistance... whether in the form of protests and "voting out the bums" or in the form that Thomas Jefferson envisioned.  Then Libertarians will have another chance.  But watch out for the communist totalitarians as well.  Chaos breeds extremes.

2012 IS GETTING CLOSER

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Tuesday, August 31, 2010

Freddie Mac Diversifies

SEARCH BLOG: GOVERNMENT

Michelle Malkin was a bit upset about this:



Terrific: Bankrupt Freddie Mac hires “diversity officer”
via Michelle Malkin by Michelle Malkin on 8/31/10

Taxpayer-supported mortgage behemoth Freddie Mac — yes, the same government-sponsored entity that is sucking $64 billion of your money to stay afloat — is proud to announce that it is squandering more of your bucks on a “diversity officer.” [more]
It seems reasonable that an organization as large as Freddie Mac should look for opportunities to diversify.  What's that... oh, excuse me... that was a "t" in that word.  Okay then, the eyes are getting a bit old.


It seems reasonable that an organization as large as Freddie Mac should look for opportunities to acquire people with a diversity of skills and expertise related to finance and mortgages.  What's that... oh, excuse me.  Forget the skills and expertise part.


It seems reasonable that an organization as large as Freddie Mac should look for opportunities to acquire people with a diversity of political capital.  In order to do that, it may be necessary to ignore the lack of skills and expertise related to finance and mortgages.  Regardless, there probably will be enough "old timers" still working to keep Freddie afloat for awhile... even though they haven't done such bang-up jobs lately.


Fortunately, for most people, there are alternative to doing business with Freddie Mac.  Unfortunately for most people, they are taxpayers who will foot the bill for Freddie's excellent adventure [sorry Bill and Ted].

2012 IS GETTING CLOSER

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Can"t Find It?

Use the SEARCH BLOG feature at the upper left. For example, try "Global Warming".

You can also use the "LABELS" below or at the end of each post to find related posts.

Blog Archive

Cost of Gasoline - Enter Your Zipcode or Click on Map

CO2 Cap and Trade

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

FEDERAL RESERVE & HOUSING

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."
November 28, 2007 FED VICE CHAIRMAN DONALD KOHN
"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."
http://www.reuters.com/

December 11, 2007 Somehow the Fed misses the obvious.
fed_rate_moves_425_small.gif
[Image from: CNNMoney.com]
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 Economy.com. "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

My photo
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)