Weekend Economists Go on Hajj November 26-28, 2010

[Demeter]

As promised, we are going to survey the people and history of Islam.

1 in 5 of all the people on this planet hold to this religion as a part of their lives. (I suspect if Catholicism were more honest and didn't pad the rolls by never reducing the count by those who renounce following involuntary infant baptisms, that ratio might be larger.)

Hajj, the pilgrimage to Mecca, Saudi Arabia, is one of the five basic requirements (arkan or "pillars") of Islam. Its annual observance corresponds to the major holy day id al-adha, itself a commemoration of Abraham's readiness to sacrifice his son on Divine orders. While the hajj is a religious obligation to be fulfilled at least once in the course of the life of each Muslim, religious law grants many exclusions on grounds of hardship. The hajj is a series of extensively detailed rituals. These include wearing a special garment that symbolizes unity and modesty, collective circumambulations of the Kaaba Kaaba or Caaba , the central, cubic, stone structure, covered by a black cloth, within the Great Mosque in Mecca, Saudi Arabia, and the symbolic stoning of evil. A central event of the pilgrimage is at the station on the plain of Arafat, some ten miles from Mecca, where, the massive crowds notwithstanding, the pilgrim is required to be completely alone with God performing the rite of wuquf or "standing." It is here that the Prophet Muhammad addressed his followers during his last pilgrimage. The Mecca rituals are customarily followed by a visit to the Prophet's Mosque in Medina. The hajj, gathering today millions of Muslims annually, was perhaps the greatest impetus to voluntary mobility before modern times. The economic, cultural, and political importance of this major annual gathering of Muslims from around the world has further increased with the advent of telecommunications and transport technologies, though the increased numbers have taxed the available facilities. Those who have completed the pilgrimage are entitled to add the phrase al-Hajj or hajji (pilgrim) to their name.

http://encyclopedia2.thefreedictionary.com/Hajj

In economics, there seems to be similar rituals and "pillars", justified by faith more than by efficacy: tax cuts, bonuses, and the like. Let's throw some stones at Economic Evils as well, as we go in search of belief and faith this weekend...

http://www.tntmagazine.com/cfs-filesystemfile.ashx/__key/CommunityServer.Components.SiteFiles/TNT+TODAY+BLOG.1420/hajj_2D00_pilgrimage_2D00_2.jpg



The Kaaba

[Demeter]

1. FDIC-Insured Institutions Earned $14.5 Billion. Third Quarter of 2010, Up from $2 Billion, Q3 2009

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate profit of $14.5 billion in the third quarter of 2010, a $12.5 billion improvement from the $2 billion the industry earned in the third quarter of 2009. This is the fifth consecutive quarter that earnings have registered a year-over-year increase.

"The industry continues making progress in recovering from the financial crisis. Credit performance has been improving, and we remain cautiously optimistic about the outlook," said FDIC Chairman Sheila C. Bair. "Lower provisions for loan losses are driving bank earnings by allowing a larger share of revenues to reach the bottom line."

But Chairman Bair also said, "At this point in the credit cycle it is too early for institutions to be reducing reserves without strong evidence of sustainable, improving loan performance and reduced loss rates. When it comes to the adequacy of reserves, institutions should always err on the side of caution."

Almost two-thirds of all institutions (63.3 percent) reported improvements in their quarterly net income from a year ago, but nearly one in five institutions (18.9 percent) had a net loss for the quarter. The average return on assets (ROA), a basic yardstick of profitability, rose to 0.44 percent, from 0.06 percent a year ago.

Chairman Bair also indicated that the end of a two-year period of contraction in loan portfolios may have run its course. "Total loans and leases held by FDIC-insured institutions declined by just $6.8 billion, or 0.1 percent, in the third quarter," she said. "Many large banks have had sizable reductions in their loan portfolios over the past couple of years, but in the third quarter, such reductions were notably absent. I hope we are close to seeing genuine increases in loan balances again."

Total assets increased by $163 billion (1.2 percent) during the quarter. Investment securities holdings increased by $113.7 billion (4.5 percent). Assets in trading accounts rose by $86.9 billion (12.8 percent).

The primary factor contributing to the year-over-year improvement in quarterly earnings was a reduction in provisions for loan losses. While quarterly provisions remained high, at $34.9 billion they were $28 billion (44.5 percent) lower than a year earlier. Net interest income was $8.1 billion (8.1 percent) higher than a year ago, and realized gains on securities and other assets improved by $7.3 billion from a year ago.

The FDIC noted signs of further improvement in asset-quality trends as the amount of loans and leases that were noncurrent (90 days or more past due or in nonaccrual status) fell for a second consecutive quarter. Insured banks and thrifts charged off $42.9 billion in uncollectible loans during the quarter, down $8.1 billion (15.8 percent) from a year earlier. This is the second quarter in a row that net charge-offs posted a year-over-year decline.

Financial results for the third quarter are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:

Loan-loss reserves declined for the first time since the fourth quarter of 2006. Although almost 60 percent of all institutions increased their loan-loss reserves in the quarter, the industry's total reserves declined by $9.6 billion (3.8 percent), as a number of large banks reduced their loan-loss provisions. The industry's ratio of reserves to total loans and leases fell from 3.40 percent to 3.27 percent during the quarter, but this is still a very high level by historical standards. The industry's "coverage ratio" of reserves to noncurrent loans declined from 65 percent to 63.9 percent, as the reduction in loss reserves outpaced the decline in noncurrent loans.

The number of institutions on the FDIC's "Problem List" rose from 829 to 860. However, the total assets of "problem" institutions declined from $403 billion to $379 billion. The number of "problem" institutions is the highest since March 31, 1993, when there were 928. Forty-one insured institutions failed during the third quarter, bringing the total number of failures for the first three quarters of the year to 127.

The Deposit Insurance Fund (DIF) balance improved for the third consecutive quarter. The DIF balance — the net worth of the fund — improved from negative $15.2 billion to negative $8 billion during the third quarter. The improvement stemmed primarily from assessment revenues and from a reduction in the contingent loss reserve. This reserve, which covers the costs of expected failures, declined from $27.5 billion to $21.3 billion during the quarter. While part of the decline reflects the removal of amounts reserved for banks that failed, part also reflects lower costs for future failures.

The FDIC's liquid resources — cash and marketable securities — remained strong. Liquid resources stood at $43.7 billion at the end of the third quarter, essentially unchanged from the second quarter.

"While we expect demands on cash to continue," Chairman Bair said, "our projections indicate that our current resources are more than enough to resolve anticipated failures and meet outstanding obligations for banks that have already failed."

Total insured deposits declined by 0.3 percent ($15 billion) during the quarter.

In conclusion, Chairman Bair said, "The industry has come a long way in cleaning up balance sheets, building capital, and adjusting to changes in financial markets and the economy. But the adjustments are not over, and this is no time for complacency."

The complete Quarterly Banking Profile is available at http://www2.fdic.gov/qbp on the FDIC Web site.

[Demeter]

2. FDIC Issues Final Guidance on Automated Overdraft Payment Programs

The Federal Deposit Insurance Corporation (FDIC) Tuesday issued final guidance to address the risks associated with overdraft payment programs. The guidance is intended to ensure robust oversight of automated overdraft programs offered by certain FDIC-insured institutions.

"This guidance promotes common sense overdraft programs by setting out our expectations. While many community banks already prudently manage their overdraft programs, some banks operate automated programs that lead to excessive use of these high-cost, short-term credit products," said FDIC chairman Sheila C. Bair. "When banks spot a pattern of excessive use of an automated overdraft program, they should contact their customers about a more appropriate and lower-cost alternative that better suits their needs."

In response to concerns about automated overdraft programs, the FDIC on August 11, 2010, proposed guidance for public comment on how the banking institutions it supervises should monitor and oversee overdraft programs. The proposed guidance stemmed from both the FDIC's November 2008 Study of Bank Overdraft Programs that disclosed growing use of such programs and increases in consumer complaints related to overdraft programs. The FDIC received more than 900 written comments on the proposed guidance from financial institutions, their industry trade groups, individual consumers, consumer advocacy and public interest groups, and one member of Congress. The final guidance incorporates suggestions from commenters to refine and clarify expectations.

The final guidance provides information to assist FDIC-supervised institutions in identifying, managing and mitigating risks associated with overdraft payment programs, including risks that could result in serious financial harm to certain consumers. The guidance focuses on automated overdraft programs and encourages banks to offer less costly alternatives if, for example, a borrower overdraws his or her account on more than six occasions where a fee is charged in a rolling 12-month period. Additionally, to avoid reputational and other risks, the FDIC expects institutions to institute appropriate daily limits on customer costs and ensure that transactions are not processed in a manner designed to maximize the costs to consumers, such as by processing checks from the largest to the smallest. The guidance also reminds institutions of existing requirements under applicable laws and regulations.

In order to give institutions sufficient time to review, consider and respond to the expectations set out in the final guidance, the FDIC expects any additional efforts to mitigate risks to be in place by July 1, 2011.

[Demeter]

3. FDIC Makes Public October Enforcement Actions; No Administrative Hearings Scheduled for December 20

The Federal Deposit Insurance Corporation (FDIC) today released a list of orders of administrative enforcement actions taken against banks and individuals in October. No administrative hearings are scheduled.

The FDIC processed a total of 57 matters in October. These included one cease and desist order; 16 consent orders; eight removal and prohibition orders; two cross guarantee liabilities; 18 civil money penalties; one prompt corrective action; two section 19 orders; and nine orders terminating an order to cease and desist.

Copies of the orders referred to above can be obtained from or inspected at the FDIC's Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA (telephone [phone] or 1-877-275-3342). To view individual orders below, click the link for the PDF next to the order. To view all orders online, visit the FDIC's Web page at http://www.fdic.gov/bank/individual/enforcement/index.html. A list of orders made public today follows.

PDF Help - Information on downloading and using the PDF reader.

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Cease-and-Desist)

Savoy Bank, New York, NY; FDIC-09-118b; Issued 10/25/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(b), 12 U.S.C. § 1818(b)
(Consent Orders)

Heritage First Bank, Orange Beach, AL; FDIC-10-636b; Issued 10/22/10 - PDF
Sanibel Captiva Community Bank, Sanibel, FL; FDIC-10-502b; Issued 10/1/10 - PDF
Farmers State Bank, Lumpkin, GA; FDIC-10-407b; Issued 10/26/10 - PDF
Brimfield Bank, Brimfield, IL; FDIC-10-554b; Issued 10/27/10 - PDF
McHenry Savings Bank, McHenry, IL; FDIC-10-739b; Issued 10/29/10 - PDF
Town & Country Bank and Trust Company, Bardstown, KY; FDIC-10-560b; Issued 10/8/10 - PDF
American Founders Bank, Inc., Lexington, KY; FDIC-10-444b; Issued 10/12/10 - PDF
Holbrook Co-operative Bank, Holbrook, MA; FDIC-10-744b; Issued 10/6/10 - PDF
Border State Bank, Greenbush, MN; FDIC-10-640b; Issued 10/27/10 - PDF
West One Bank, Kalispell, MT; FDIC-10-592b; Issued 10/27/10 - PDF
Nantahala Bank & Trust Company, Franklin, NC; FDIC-10-501b; Issued 10/21/10 - PDF
The Delaware County Bank and Trust Company, Lewis Center, OH; FDIC-10-559b; Issued 10/27/10 - PDF First Capital Bank, Guthrie, OK; FDIC-10-591b; Issued 10/7/10 - PDF
First Century Bank, Tazewell, TN; FDIC-10-653b; Issued 10/18/10 - PDF
D'Hanis State Bank, D'Hanis, TX; FDIC-10-662b; Issued 10/29/10 - PDF
Nixon State Bank, Nixon, TX; FDIC-10-504b; Issued 10/12/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(e), 12 U.S.C. § 1818(e)
(Removal and Prohibition Orders)

Naugatuck Savings Bank, Naugatuck, CT (f/k/a Castle Bank & Trust Company); FDIC-10-595e;
Robert A. Nixon; Issued 10/21/10 - PDF

Farmers State Bank & Trust Company, Church Point, LA; FDIC-10-202e; against Steve J. Broussard; Issued 10/13/10 - PDF

Eastern Bank, Boston, MA; FDIC-10-704e; against Maria C. Faranda; Issued 10/21/10 - PDF

Branch Banking and Trust Company, Winston-Salem, NC; FDIC-10-370e; against Marilyn R. Davis; Issued 10/13/10 - PDF

Citizens Bank of Pennsylvania, Philadelphia, PA; FDIC-10-381e; against Kiesha L. Merrick;
Issued 10/21/10 - PDF

Citizens Bank of Pennsylvania, Philadelphia, PA; FDIC-10-628e; against Erlanda L. Naranjo;
Issued 10/21/10 - PDF

Macon Bank and Trust, Lafayette, TN; FDIC-09-354e; against Jill C. Troutt; Issued 10/13/10 - PDF

Passumpsic Savings Bank, St. Johnsbury, VT; FDIC-10-742e; against Tina M. Desrochers;
Issued 10/21/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 5(e), 12 U.S.C. § 1815(e)
(Cross Guarantee Liabilities)

Southern Arizona Community Bank, Tucson, AZ; FDIC-10-438kk; Order Conditionally Granting Approval For Waiver of Cross Guarantee Liability; Issued 10/26/10 - PDF

Fort Collins Commerce Bank, Fort Collins, CO and Loveland Bank of Commerce, Loveland, CO; and Larimer Bank of Commerce, Fort Collins, CO; FDIC-10-433kk; FDIC-10-434kk; FDIC-10-435kk; Order Conditionally Granting Approval For Waiver of Cross Guarantee Liability; Issued 10/26/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 8(i), 12 U.S.C. § 1818(i)
(Civil Money Penalties)

EvaBank, Eva, AL; FDIC-10-363k; in the amount of $15,000.00; Issued 10/5/10 - PDF

Valley Bank, Fort Lauderdale, FL; FDIC-10-440k; in the amount of $22,000.00; Issued 10/1/10 - PDF

Sunshine State Community Bank, Port Orange, FL; FDIC-10-600k; in the amount of $4,000.00; Issued 10/12/10 - PDF

First Bank of Dalton, Dalton, GA; FDIC-10-683k; in the amount of $5,500.00; Issued 10/29/10 - PDF

BankOrion, Orion, IL; FDIC-10-503k; in the amount of $3,950.00; Issued 10/8/10 - PDF

The Farmers and Merchants Bank, Boswell, IN; FDIC-10-664k; in the amount of $4,000.00; Issued 10/27/10 - PDF

Kentucky Farmers Bank Corporation, Catlettsburg, KY (f/k/a Kentucky-Farmers Bank of Catlettsburg, Kentucky); FDIC-10-527k; in the amount of $2,650.00; Issued 10/27/10 - PDF

Kalamazoo County State Bank, Schoolcraft, MI; FDIC-10-487k; in the amount of $2,500.00; Issued 10/27/10 - PDF

New Millennium Bank, New Brunswick, NJ; FDIC-10-712k; in the amount of $10,045.00; Issued 10/12/10 - PDF

American Heritage Bank, Clovis, NM; FDIC-10-638k; in the amount of $12,750.00; Issued 10/27/10 - PDF

The Bank of Clovis, Clovis, NM; FDIC-10-652k; in the amount of $18,825.00; Issued 10/21/10 - PDF

American Community Bank, Glen Cove, NY; FDIC-10-741k; in the amount of $5,405.00; Issued 10/26/10 - PDF

Mountain 1st Bank & Trust Company, Hendersonville, NC; FDIC-10-257k; in the amount of $10,395.00; Issued 10/28/10 - PDF

Riverhills Bank, New Richmond, OH; FDIC-10-594k; in the amount of $2,100.00; Issued 10/19/10 - PDF

United-American Savings Bank, Pittsburgh, PA; FDIC-10-556k; in the amount of $5,500.00; Issued 10/19/10 - PDF

The First State Bank, Huntsville, TX; FDIC-10-573k; in the amount of $58,900.00; Issued 10/26/10 - PDF

International Bank of Commerce, Laredo, TX; FDIC-10-572k; in the amount of $10,000.00; Issued 10/27/10 - PDF

Integrity First Bank, Wausau, WI; FDIC-10-525k; in the amount of $5,550.00; Issued 10/28/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 38, 12 U.S.C. § 1831o
(Prompt Corrective Action)

First Vietnamese American Bank, Westminster, CA; FDIC-10-691PCAS; Amended Supervisory Prompt Correction Action; Issued 10/13/10 - PDF

FINAL ORDERS ISSUED PURSUANT TO SECTION 19, 12 U.S.C. § 1829
(Section 19)

Ashish Aggarwal; FDIC-10-669L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affair of any Insured Depository Institution; Issued 10/5/10 - PDF

Harshvardhan Kanda; FDIC-10-641L; Order Granting Permission to File Application and Approving Application for Consent to Participate in the Affair of any Insured Depository Institution; Issued 10/5/10 - PDF

TERMINATIONS

Orders Terminating Consent Orders and Cease and Desist Orders
Torrey Pines Bank, San Diego, CA; FDIC-09-448b; Order Terminating a Consent Order;
Issued 10/20/10 - PDF

Haven Trust Bank Florida, Ponte Vedra Beach, FL; FDIC-09-623b; Order Terminating the Consent Order; Issued 10/13/10 - PDF

First Commerce Community Bank, Douglasville, GA; FDIC-08-339b; Order Terminating the Order to Cease and Desist; Issued 10/1/10 - PDF

Bank of Ellijay, Ellijay, GA; FDIC-09-338b; Order Terminating the Consent Order;
Issued 10/1/10 - PDF

The Peoples Bank, Winder, GA; FDIC-09-590k; Order Terminating the Consent Order;
Issued 10/4/10 - PDF

American Founders Bank, Inc., Lexington, KY; FDIC-07-026b; Order Terminating Order to Cease and Desist; Issued 10/12/10 - PDF

Westbridge Bank and Trust, Chesterfield, MO; FDIC-09-016b; Order Terminating the Cease and Desist Order; Issued 10/28/10 - PDF

Carolina First Bank, Greenville, SC; FDIC-10-121b; Order Terminating the Consent Order;
Issued 10/5/10 - PDF

First Bank, Farmersville, TX; FDIC-09-420b; Order Terminating Order to Cease and Desist;
Issued 10/13/10 - PDF

FOR LINKS, SEE http://www.fdic.gov/news/news/press/2010/pr10258.html

[Demeter]

12. It is unlikely that any banks will be shut down this weekend

due to the holiday. But all these lovely press releases came out this week, instead.

[Po_d Mainiac]

45. PDF's are easier on the budget...n/t

[Demeter]

46. ?

[molly77]

58. Let the banksters enjoy their house built on sticks for a foundation

Pride goeth before a fall.It won't be long before they are going to be running for high ground.

[Demeter]

4. Iceland Is No Ireland as State Free of Bank Debt, Grimsson Says

http://www.bloomberg.com/news/2010-11-26/iceland-faring-much-better-after-permitting-banks-to-fail-grimsson-says.html

Iceland’s President Olafur R. Grimsson said his country is better off than Ireland thanks to the government’s decision to allow the banks to fail two years ago and because the krona could be devalued. “The difference is that in Iceland we allowed the banks to fail,” Grimsson said in an interview with Bloomberg Television’s Mark Barton today. “These were private banks and we didn’t pump money into them in order to keep them going; the state did not shoulder the responsibility of the failed private banks.”

Ireland’s Prime Minister Brian Cowen said this week his government has discussed an 85 billion-euro ($112 billion) bailout with the European Union and International Monetary Fund after the country’s banks threatened to bring the euro member to the brink of bankruptcy. Iceland’s banks, which still owe creditors about $85 billion, were split to create domestic units needed to keep the financial system running, while foreign liabilities remained within the failed lenders. As a consequence, “Iceland is faring much better than anybody expected,” Grimsson said. The Icelandic state’s liability on foreign depositor claims stemming from Icesave accounts at failed Landsbanki Islands hf should be put to a national referendum, he said...

Accept Losses

Iceland is relying on a $4.6 billion IMF-led loan to rebuild its economy. Grimsson said today the government may not need the entire amount...Bondholders of European banks should be prepared to accept losses because voters are becoming increasingly unwilling and unable to fund bailouts, FXPro Financial Services Ltd. said in a Nov. 24 note. “The taxpayer has no realistic prospect of being able to save their banks, such is the magnitude of their bad loans and their extraordinary dependence on central bank support,” wrote Michael Derks, chief strategist in London at foreign-exchange firm FXPro. “Both junior and senior bondholders in these insolvent banks need to suffer huge haircuts,” he said. Forcing bond holders to “share the burden,” may help the euro region remain intact, Derks wrote.

Junk

Grimsson, who said Iceland’s talks to join the European Union are ongoing, in January this year blocked a $5.2 billion deal to cover British and Dutch depositor claims stemming from Icesave accounts. The move prompted Fitch Ratings to downgrade the island’s debt to “junk” as a normalization of international relations grew more remote. Iceland’s Finance Ministry on Nov. 16 said the country may now be weeks away from a “final resolution” to the Icesave dispute as it secures broad lawmaker backing for a new accord.

Kaupthing Bank hf, Landsbanki and Glitnir Bank hf failed within weeks of each other in October 2008 after they were unable to secure short-term funding. The banking crisis led to an 80 percent slump in the krona against the euro offshore, until the slump was stemmed by the introduction of capital controls at the end of 2008...Kaupthing’s winding-up committee today said it finished dealing with claims lodged against it. The bank is dealing with a total of 28,167 claims filed by creditors across 119 countries totaling 7.32 trillion kronur ($63 billion), it said in a statement today.

[Demeter]

7. Eating the Irish By PAUL KRUGMAN

http://www.nytimes.com/2010/11/26/opinion/26krugman.html?_r=2&ref=opinion

What we need now is another Jonathan Swift.

Most people know Swift as the author of “Gulliver’s Travels.” But recent events have me thinking of his 1729 essay “A Modest Proposal,” in which he observed the dire poverty of the Irish, and offered a solution: sell the children as food. “I grant this food will be somewhat dear,” he admitted, but this would make it “very proper for landlords, who, as they have already devoured most of the parents, seem to have the best title to the children.”

.....................................

Before the bank bust, Ireland had little public debt. But with taxpayers suddenly on the hook for gigantic bank losses, even as revenues plunged, the nation’s creditworthiness was put in doubt. So Ireland tried to reassure the markets with a harsh program of spending cuts... there is no alternative, say the serious people: all of this is necessary to restore confidence.

..................................

In early 2009, a joke was making the rounds: “What’s the difference between Iceland and Ireland? Answer: One letter and about six months.” This was supposed to be gallows humor. No matter how bad the Irish situation, it couldn’t be compared with the utter disaster that was Iceland...But at this point Iceland seems, if anything, to be doing better than its near-namesake. Its economic slump was no deeper than Ireland’s, its job losses were less severe and it seems better positioned for recovery. In fact, investors now appear to consider Iceland’s debt safer than Ireland’s. How is that possible?...Iceland let foreign lenders to its runaway banks pay the price of their poor judgment, rather than putting its own taxpayers on the line to guarantee bad private debts. As the International Monetary Fund notes — approvingly! — “private sector bankruptcies have led to a marked decline in external debt.” Meanwhile, Iceland helped avoid a financial panic in part by imposing temporary capital controls — that is, by limiting the ability of residents to pull funds out of the country...

But Ireland is now in its third year of austerity, and confidence just keeps draining away. And you have to wonder what it will take for serious people to realize that punishing the populace for the bankers’ sins is worse than a crime; it’s a mistake.

[Demeter]

21. Right-Wing Think Tank Praised Ireland's 'Economic Freedom' ... and Then Its Economy Crashed

http://www.alternet.org/story/148993/right-wing_think_tank_praised_ireland%27s_%27economic_freedom%27_..._and_then_its_economy_crashed

Any time the Heritage Foundation holds up any country as an economic example, it should set off alarm bells.

It hasn't even been a year since the Heritage Foundation placed Ireland among the top ten countries on its Economic Freedom Index. I wasn't intending to write about Ireland at the time, but any time the Heritage Foundation holds up any country as an economic example attention must be paid. It's an invaluable opportunity to learn what not to do, in terms of economic policy.

Even way back then, in April of this year, Ireland's economic crisis was serious enough to make it a real head-scratcher that anyone would place it on top ten list, and hold it as an example of economic success, as the Heritage Foundation's Index is intended to do. Ireland is indeed an example. It's nearly a textbook example of the epic failure of conservative economics to grow an economy and austerity to spark a recovery....



Ireland’s problems are, sadly, far deeper than the need for simple fiscal austerity. The Celtic tiger’s impressive reported growth over the past decades was in part based on its aggressive attempts to help major corporations in the United States reduce their tax bills. The Irish government set corporate taxes at just 12.5 percent of profits, thus attracting all sorts of businesses — from computer services such as Google and Yahoo, to drug companies such as Forest Labs — that set up corporate bases and washed profits through Ireland to keep them out of the hands of the Internal Revenue Service.

The remarkable success of this tax haven means that roughly 20 percent of Irish gross domestic product (G.D.P.) is actually “profit transfers” that raise little tax for Ireland and are owned by foreign companies. Since most of these profits are subject to the tax code, they are accounted for in Ireland where they are lightly taxed; they should not be counted as part of Ireland’s potential tax base.

Corporate profits were essentially funneled through Ireland, and money funneled through a country's economy doesn't get reinvested in that economy in any meaningful way for the middle and working class who provide labor for those multinationals. It did considerable damage to with what Polly Toynbee called "tax piracy" in The Guardian this week, lowering not only it's own tax base with a corporate tax rate that not only failed to enrich Ireland, but beggared its neighbors by attracting corporations to move their headquarters and thus their profits to Ireland.

The "efficient business regulations," for which Heritage rated Ireland so highly were non-existent. In a review of Fintan Toole's book Ship of Fools: How Stupidity and Corruption Sank the Celtic Tiger, Henry Farrell cites lax regulation and bad business judgement as factors in Irelands economic crisis, and relates that in one instance in which the Irish Central Bank failed to discipline Ansbacher Bank for running a tax evasion scheme for prominent individuals.

Banks suffered no consequences for behavior that ruined the economy and destabilize the public finances. Regulators abdicated their authority to discipline financial institutions, and the result was akin to 50-foot toddlers running amok. Even a major tax evasion scam warranted no consequences. What else went on while the regulatory lights were out, the culprits have largely escaped under the cover of austerity...

[Demeter]

30. Irish Minister Suffers Humiliating Take-Down Over Handling of Financial Crisis

VIDEO CLIP

http://www.alternet.org/newsandviews/article/342614/irish_minister_suffers_humiliating_take-down_on_prime-time_television_over_handling_of_financial_crisis/

[Demeter]

32. Ireland unveils four-year austerity plan

Ireland will cut welfare expenditure, slash the minimum wage, raise income tax and introduce a levy on land and property owners under a drastic austerity plan intended to put the public finances on a stable long-term footing.

Under the four-year programme, announced on Wednesday, the government intends to save €15bn ($20bn) between 2011 and 2014 – or about 4 per cent of annual economic output – with €10bn in public spending cuts and €5bn in new taxes and revenues.

Read more >>
http://link.ft.com/r/ZE9K33/OJZG7J/3CWTA/NSAC20/A7R4LK/ZH/t?a1=2010&a2=11&a3=24

[Demeter]

39. €12bn cash injection mooted for Irish banks

Ireland’s three largest banks could receive immediate funding from the government and be given access to a much larger pool of rescue funds, as they grapple to meet tough new capital requirements

Read more >>
http://link.ft.com/r/CTBPCC/D4HNOB/1O51V/LQVC3Q/PR0P5T/JY/t?a1=2010&a2=11&a3=25

[Demeter]

42. €9.5m Donegal property development receives one bid at auction – for €5,000

http://www.guardian.co.uk/business/2010/nov/25/donegal-property-development-auction-bid-5000

It was the story of Ireland's boom and bust in a nutshell: a newly built apartment block near the windswept coast of far-flung Donegal, once valued at €9.5m, was selling for €500,000 (£425,000).

But now, it seems, it's not even worth that. Navenny Place, a 47-apartment complex, was withdrawn from auction this week after just one token bid of €5,000 – and that was after the auctioneer reduced the starting price to €300,000, or €6,383 per flat.

The apartments are situated on the edge of Ballybofey, a pretty town in the heart of Donegal, and are described by the estate agent as "architecturally superior", akin "to the type of property found in London's Docklands", with spectacular beaches and the wilderness of Glenveagh National Park 35 minutes away.

They were aimed at young, upwardly mobile singles and couples, who in the boom years would have easily got a mortgage of up to seven or eight times their salary. But they were put up for auction as one lot by Patrick McDermott, a receiver appointed by Ulster Bank, after the developer went bust.

The auction seemed doomed from the start, as a crowd of about 100 builders and subcontractors gathered outside the hotel where the sale was taking place to protest about the €900,000 they say they are owed by the developer....

[Demeter]

43. State to take control of banks as fears deepen new onslaught

http://www.independent.ie/national-news/state-to-take-control-of-banks-as-fears-deepen-new-onslaught-2433031.html

URGENT action to keep the banks afloat will be taken within 72 hours, it emerged last night.

The current crisis will force the Government to inject hundreds of millions in new capital into the banks, leaving the State with majority ownership -- effectively nationalising AIB and Bank of Ireland. The drastic measures were seen as inevitable following a plunge in shares, negative market reaction to the bailout and a deepening crisis for the euro.

High-level talks were continuing last night about pumping extra cash into the banks before the weekend.

Shares in AIB have plunged 73pc so far this year. That means investors value the entire bank, including all its branches and deposits, at just €357m. At its peak, it was valued at around €22bn. Shares in the bank closed at just 33c last night -- a long way from their peak of €23.95 in February 2007.

Bank of Ireland's share price tumbled to a record low of 25c before closing at 30c last night. That means its value was €1.59bn -- less than a tenth of its value in the boom...

[Demeter]

52. Economist: Ireland must leave the euro

http://newswhip.ie/national-2/economist-ireland-must-leave-the-euro

As the government unveils its economic stability plan, economist Richard Douthwaite has said Irish politicians must face four essential truths or else face ruin.

Writing in Construct Ireland magazine, the Green-inclined Douthwaite says the country must leave the euro.

Speaking to Newswhip.ie this afternoon, Douthwaite said the eurozone and European Central Bank (ECB) are harming Ireland.

“Unless the eurozone is restructured I don’t think it’s going to be possible to make it work,” he says. “It’s not just in Ireland where there’s been a collapse. It’s worse in Ireland but it’s common in all eurozone countries.”

[Demeter]

53. Irish government too optimistic on GDP: S&P

http://www.reuters.com/article/idUSTRE6AN4OF20101124

The Irish government's growth assumptions are too optimistic and Ireland's economy will struggle to grow at all over the next two years, ratings agency S&P said on Wednesday.

S&P cut Ireland's rating to A from AA-minus on Tuesday and placed the sovereign on CreditWatch negative, a move that in two-thirds of cases results in a further downgrade in about a month's time.

In a conference call to explain the decision, S&P said there were downside risks to growth and a strong chance the government would need to fund further capital injections into the troubled banking system.

"The fate of the government and the fate of Ireland's banking system really are one and the same," said Frank Gill, director of S&P's EMEA sovereigns ratings group...

[Demeter]

54. Memo to Ireland: "Tell the EU and the IMF to 'Shove It'" By Mike Whitney

http://www.informationclearinghouse.info/article26909.htm

...
This is a black day for Ireland. The Irish people will now face a decade or more of grinding poverty and depression thanks to their venal leaders. As soon as the ink dries on the IMF loans, the second occupation of Ireland will begin, only this time there won't be armored cars and Paramilitaries in fatigues, but nerdy-looking bureaucrats trained in the art of spreading misery. In fact, the loans haven't even been signed yet, and already IMF officials are urging the government to cut jobless benefits and the minimum wage. They're literally champing at the bit. They just can't wait to get their hands on the budget and start slashing away.

And don't believe the hype about European unity or saving Ireland. My ass. This is about bailing out the banks. The bondholders get a free ride while workers get kicked to the curb...

Here's a clip from the Financial Times that spells it out in black and white:

"According to data compiled by the Bank of International Settlements, the three largest creditors to the Irish economy at the end of June...were Germany to the tune of €109bn, the UK at €100bn and France at €40bn. These sums amount to 2 per cent of France’s gross domestic product, 4.5 per cent of Germany’s GDP, and 7 per cent of British GDP."

See? Another bank bailout. Ireland is being asked to cut to social services, slash wages, renegotiate contracts, and dismantle the welfare state so that undercapitalized banks in France and Germany can get their pound of flesh. But, why? They're the ones who bought the bonds. No one put a gun to their head. They knew they could lose money if Irish banks went south. That's the risk they took. "You pays your money, and you takes your chances." Right? That's how capitalism works.

Not any more, it doesn't. Not while Cowen's in charge, at least. The Irish PM has decided to bail them out; make the bondholders "whole again." But who made Cowen God? Who gave Cowen the right to hand over his country to the IMF?

No one. Cowen is a rogue agent kowtowing to international capital. After he finishes his work in Ireland, he'll probably join globalist Tony Blair on the French Riviera for a little hobnobbing with the tuxedo crowd...

[Demeter]

55. Ireland's Brutal Four-Year Economic Plan is Announced

http://www.informationclearinghouse.info/article26910.htm

...
Market insiders have called the plan "staggeringly austere" and the proof of their scepticism lies in the fact that bond yields widened further still after the plan was announced. David Begg, head of the Irish Congress of Trade Unions said: "It appears that the day of reckoning has arrived. The Barbarians are at the gates."

The key points of the plan will have already been approved by the EU and IMF. The plan aims to save €15 billion over a four year period. Disciplined implementation of the Four Year Plan will no doubt be a condition of the EU-IMF rescue package. This means that, no matter who is elected next, and no matter what their policies, they are likely to be bound by the plan announced today: Ireland's fiscal path has been fixed for the next four years.

EU economics commissioner Olli Rehn has said that the four-year plan must still be "validated" by the Commission and the European Central Bank. Eurozone finance ministers have said that the plan should be subject to an annual review by the European authorities.

It remains to be seen if the Irish opposition will agree with Irish Prime Minister Brian Cowen when he introduced the plan by saying: "We will do this because we love our country." In the event that they don't like the plan, they may be able to block December's budget. Perhaps, we must hope that the EU and the IMF also love our country...

[Demeter]

89. Details of Irish bail-out to be announced on Sunday

The outline of an €85bn bail out deal for Ireland will be published on Sunday, in an effort to calm the turmoil in Europe’s financial markets, a Dublin minister has indicated. “There has to be some clarity on our deal before Monday because what we’ve seen is a real uncertainty affecting markets, affecting this country, affecting other countries,” Eamon Ryan, the communications minister, told Irish radio on Saturday.
The loan – from the International Monetary Fund and members of the European Union – was likely to be for nine years, not the 3 year duration of the Greek bail out loan, an Irish government officials told the Financial Times.

Read more >>
http://link.ft.com/r/BLH300/M92VUU/Q38E1/0GQRML/FXU35J/MQ/t?a1=2010&a2=11&a3=27

[Demeter]

90. Good Advice for the Ir from DU

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9636967

[Demeter]

5. One Country’s Fugitive Is Another’s Investor

http://blogs.forbes.com/walterpavlo/2010/11/25/one-country%E2%80%99s-fugitive-is-another%E2%80%99s-investor/?partner=yahoofpapp

Kobi Alexander, former CEO of Comverse Technology, is spending his days as a fugitive from the US government in Namibia on Africa’s southwest coast. Back in 2006 Alexander was looking at charges for back-dating stock options….based on some recent trials, I don’t even think that’s illegal anymore (see Bruce Karatz of KB Home gets 8 months of home confinement). He fled the country in 2006, and was arrested by Interpol, pretty cool status symbol trumping an FBI arrest, but has since been released pending an appeal on his extradition back to the U.S.

Namibia does not have an extradition treaty with the U.S. and Alexander is spending his free days working on projects to improve life for Namibians through investing in low-cost solar panels (excellent Public Relations). Whilst he gains favor with the locals, he is mending his ways with the U.S. government by agreeing to pay $53 million in penalties and fines without having to admit he did anything wrong, according to the Wall Street Journal. His co-conspirators have already gone to prison and been home for a few years….my how time flies.

As Mr. Alexander lives out his days as a fugitive in the eyes of U.S. authorities, he is a bit of a local hero in Namibia. By contributing to those less fortunate and bringing business ideas to a country more noted for poverty than budding businesses, even a fugitive from justice can gain favor. While we won’t miss Kobi Alexander in the states, perhaps his redemption will come in another part of the world that will benefit others.

Perhaps Kobi Alexander’s example shows alternatives to prison sentences for white-collar felons. By parting with the money and contributing back to the world, Alexander has done more than most felons who simply go to prison holding on to millions in ill-gotten gains. While the U.S. gets the money, Namibia is getting a business partner who will do a lot more good than harm to this underdeveloped country.

No sense worrying about putting guys like this in jail when they have found a new place and a new purpose. Just give us the money, you can have your life.

[DemReadingDU]

6. First!

Yay!
Hope everyone enjoyed Thanksgiving yesterday. NO shopping for me today, too crazy out there.

[Tansy_Gold]

13. Third!

No shopping for me either.

After a cold morning (35, and that's cold for central Arizona!) the sun came out and we had a gorgeous day of about 65. I can't complain about that!

[hamerfan]

16. Fifth!

But at least I got the day right this time!
hamerfan

[Demeter]

17. That Makes a Major Dominant Chord!

[Hugin]

19. Octet...

Doesn't that take us back to Do?

[Demeter]

22. Like This?

http://www.youtube.com/watch?v=7EYAUazLI9k

[DemReadingDU]

24. I love these random acts of music. Here's another

10/30/10 Opera Company of Philadelphia "Hallelujah!" Random Act of Culture
http://www.youtube.com/watch?v=wp_RHnQ-jgU&feature=player_embedded#!

[Demeter]

8. High court handling of Wal-Mart appeal will have wider implications

http://www.latimes.com/news/nationworld/nation/la-na-walmart-bias-20101126,0,6358247.story

The retailer argues that a lawsuit alleging discrimination against 1.5 million female employees is unfair. Whether the justices hear the case could affect future class-action suits...

The fate of the largest job bias lawsuit in the nation's history — a claim that Wal-Mart Stores Inc. shortchanged women in pay and promotions for many years — hinges on whether the Supreme Court will let the class-action case go to trial.

The court is likely to announce as soon as Monday whether it will hear the retail giant's appeal asserting that a single lawsuit cannot speak for more than 1.5 million employees.

Business lawyers and civil rights advocates are closely following the Wal-Mart case for its implications for class-action litigation.

"This may sound like just a technical, procedural issue, but because of the economics of it, class-action certification is often the most important issue to be decided," said Washington lawyer Roy T. Englert Jr....

[Tansy_Gold]

15. I still carry in my car a blue umbrella printed with the message

Wal-Mart Hates Women, from a protest staged at a local store during the 2004 National NOW conference in Vegas. NOW provided the umbrellas.

Depending on the actual dates of employment that will be included in the settlement, I may or may not be in the class. For me, any personal monetary gain is secondary to the settlement imposed on Walmart. I saw what happened to women employees in one store. I watched the men in the same positions get treated with special privileges. It did no good to point it out to management -- which was virtually all male.

I'm not holding my breath, but I will definitely celebrate when Walmart loses this case. Even if I'm not in the class, even if I gain 2 cents, just to see them put in their place will be satisfaction enough.


Tansy Gold, Walmart Hater

[Demeter]

9. How Are the Kids? Unemployed, Underwater, and Sinking

http://www.truth-out.org/how-are-kids-unemployed-underwater-and-sinking65444

...In the United States, the state of the kids should be an important indicator. Young workers bear the significant burden of funding intergenerational transfer programs and maintaining the structure of payments that flow in the economy. Today, the kids' outlook is almost as bleak as the housing market; they are unemployed, underwater on student debt, and out of luck from a reluctant political system.

Currently, even after a slight boost in jobs growth, unemployment for 18-24 year olds stands at 24.7%. For 20-24 year olds, it hovers at 15.2%. These conservative estimates, using the Bureau of Labor Statistics U3 measure, do not reflect the number of marginally attached or discouraged young workers feeling the lag from a nearly moribund job market.

The U3 measure also does not count underemployment, yet with only 50% of B.A. holders able to find jobs requiring such a degree, underemployment rates are a telling index of the squeezing of the 18-30 year old Millennial generation. While it appears everyone is hurting since the financial collapse, young adults bear a disproportionate burden, constituting just 13.5% of the workforce while accounting for 26.4% of those unemployed. Even with good credentials, it is difficult for young people to find work and keep themselves afloat....

[Demeter]

10. CBO: Recovery Act Raised GDP and Lowered Unemployment but Effects Are 'Expected to Wane'

http://www.truth-out.org/cbo-recovery-act-raised-gdp-and-lowered-unemployment-effects-are-expected-wane65447

...CBO estimates that the Recovery Act’s policies in the third quarter of the calendar year 2010 had the following effects (emphasis added):

* They raised real (inflation-adjusted) gross domestic product (GDP) by between 1.4 percent and 4.1 percent,
* Lowered the unemployment rate by between 0.8 percentage points and 2.0 percentage points,
* Increased the number of people employed by between 1.4 million and 3.6 million, and,
* Increased the number of full-time-equivalent jobs by 2.0 million to 5.2 million compared with what would have occurred otherwise (see Table 1). (Increases in FTE jobs include shifts from part-time to full-time work or overtime and are thus generally larger than increases in the number of employed workers).

At the same time however, the CBO said that the Recovery Act’s effects “on output peaked in the first half of 2010 and are now diminishing” and that its effect “on employment and unemployment are estimated to lag slightly behind the effects on output; they are expected to wane gradually beginning in the fourth quarter.” The Republican Study Committee and other GOP members of Congress picked up on this latter point on twitter today, presumably acknowledging that the Recovery Act did indeed have a positive impact on the economy?

[Demeter]

11. A Brief Definition of Islam

the monotheistic religion articulated by the Qur’an, a text considered by its adherents to be the verbatim word of God (Arabic: الله‎, Allah), and by the teachings and normative example (called the Sunnah collected in the hadith) of Muhammad, the last Prophet of Islam. The word Islam means 'Submission (to God)', and an adherent of Islam is called a Muslim (see Islam (term)).

Muslims believe that God is one and incomparable. Muslims also believe that Islam is the complete and universal version of a primordial faith that was revealed at many times and places before, including through the prophets Abraham, Moses and Jesus. Muslims maintain that previous messages and revelations have been partially changed or corrupted over time, but consider the Quran to be both unaltered and the final revelation from God. Religious practices include the Five Pillars of Islam, which are five obligatory acts of worship, and following Islamic law (Arabic: شريعة Šarīʿah), which touches on virtually every aspect of life and society, encompassing everything from banking and welfare, to warfare and the environment.

The Muslims belong to two denominations, with the majority (c. 80-90%) practicing Sunni Islam and approximately 10-20% Shia Islam. About 13% of Muslims live in Indonesia, the largest Muslim country, 25% in South Asia, 20% in the Middle East, 2% in Central Asia, 4% in the remaining South East Asian countries, and 15% in Sub-saharan Africa. Sizable communities are also found in China and Russia, and parts of the Caribbean. Converts and immigrant communities are found in almost every part of the world. With about 1.57 billion Muslims comprising about 23% of the world's population (see Islam by country), Islam is the second-largest religion and arguably the fastest-growing religion in the world...

http://en.wikipedia.org/wiki/Islam

[kickysnana]

14. Here is to my late friend...

Born in Gujarat, at age 11 was in boarding school when his mother died. When his father remarried he was sent to live with his mother's family who had no male children to be raised and inherit his maternal grandfather's new wealth from working in the Gold Mines in Africa. He watched the transition to Independence by India.

He took his education and left for Uganda with his wife and children to make his own fortune, opening a successful business school. He gave up his Indian citizenship to be able to stay in Uganda during the early madness of Idi Amin but in the end left everything behind and left for an unknown future in the US. He worked as a clerk at Sears until he found his niche as an insurance salesman but kept teaching part time because he loved it up to his death.

His children attended college and got advanced degrees and did well. He loved India, he loved Uganda, he loved the US. He hated Idi Amin and Bush equally. Because of him I can never look at Muslim people as "them" and I learned that moderate Muslim people are identical to moderate Christian people, indeed the religious differences are only a 2000 year old family squabble and being one or the other does not make one better or worse than the other.

He never went on Hajj because despite high blood pressure and and aging body he did not feel old and wasn't sure he was ready to not occasionally yield to temptation after his Hajj. He was an honest man. He told me that an honest businessman had a get into heaven free card in his brand of Islam, and he had always been an honest businessman. He died in his sleep almost four years ago.

Rest in peace Ismial (sic).

[Demeter]

18. Let's Build the New Economy

LIKE WE HAVE A CHOICE?

http://www.truth-out.org/lets-build-new-economy65322

We need to build a new economy, one that promotes widespread prosperity while protecting us against ecological disaster. The problem is that the current economy has been structured explicitly to extract wealth from the global commons and accumulate it in the coffers of an extremely powerful elite. And it is standing in our way.

I say let the U.S. economy collapse. It’s not serving us anyway...I would be perfectly happy to let this economy collapse if a better one were to replace it. Luckily, the collapse is about to be accelerated. We’re about to see the federal political system become even more dysfunctional. And the life supports for our economy — the vital infrastructure funded by public dollars — is about to be cut even further to extract wealth for the super rich. Tea Party supporters have ensured that the next few years will further corrode the existing economy through the attack of a thousand cuts...

Now is the time for social entrepreneurs to mobilize and begin the creative process of building the foundational institutions of the 21st Century economy. Look around and you will see that this effort is already underway. Micro-credit lending institutions are revolutionizing the world of finance (see Kiva and Grameen Bank). Social media platforms are replacing the elite communication systems set up to broadcast information from a central source to the masses. Legal hackers are creating benefit corporations that merge the social missions of non-profits with the economic power of publicly traded corporations. And urban designers are creating cityscapes that mimic natural ecosystems.

So let’s begin the work of building 21st Century political and economic systems. The need is clear and the time is right. Many bottlenecks to progress are about to be removed de facto as state governments grapple with bankruptcy and corporations expand their stranglehold on our judicial and legislative systems. The weakening of our economic foundations will bring with it a loosening of control that these powerhouses have on economic development.

Rough times lie ahead, no doubt about it. But we can take heart in the entrepreneurial spirit of the American people and the considerable economic power of our major cities. A truism that we must all take to heart is that, while the 20th Century was dominated by nations, the 21st Century will be shaped primarily by cities. If you don’t believe me, look at the rapid urbanization of China and India and ask yourself how many of the remaining resources will be sucked up by the unprecedented growth of buildings, regional transit systems, and commerce in the developing world.

Many Americans are going to be caught off guard when the carpet is pulled out from under their feet. Others will be relieved that we can finally begin to catch up with the rest of the world, presuming of course that our own cities aren’t entirely decimated by the hoarding of wealth by short-sighted elites. We currently house most of the world’s best research labs and continue to attract global intellectual talent to our shores. (Of course, this may change if the xenophobic tenor of our immigration debate doesn’t catch up with the times.) And we have several awe-inspiring regional economies like the San Francisco Bay Area, Puget Sound in the Pacific Northwest, and a number of hubs in New England....

[Demeter]

20. Minimum wage is worth less than in 1968

[Demeter]

23. Thanksgiving leftovers: What 21 Leading Progressives Say They're Thankful for

http://www.alternet.org/story/148992/what_21_leading_progressives_say_they%27re_thankful_for

[bread_and_roses]

25. 9th! At least I'm in the single digits - and Sufism, just to make some sort of contribution

http://www.uga.edu/islam/Sufism.html

Sufism or tasawwuf, as it is called in Arabic, is generally understood by scholars and Sufis to be the inner, mystical, or psycho-spiritual dimension of Islam. Today, however, many Muslims and non-Muslims believe that Sufism is outside the sphere of Islam. Nevertheless, Seyyed Hossein Nasr, one of the foremost scholars of Islam, in his article The Interior Life in Islam contends that Sufism is simply the name for the inner or esoteric dimension of Islam.

After nearly 30 years of the study of Sufism, I would say that in spite of its many variations and voluminous expressions, the essence of Sufi practice is quite simple. It is that the Sufi surrenders to God, in love, over and over; which involves embracing with love at each moment the content of one's consciousness (one's perceptions, thoughts, and feelings, as well as one's sense of self) as gifts of God or, more precisely, as manifestations of God.

or wiki, of course

[Demeter]

26. Higher Wages, Profit Sharing and Greater Flexibility Benefit All Employees -- And the Bottom Line

http://www.alternet.org/story/148975/higher_wages%2C_profit_sharing_and_greater_flexibility_benefit_all_employees_--_and_the_company_bottom_line_too

Costco is so certain that its policy is sound that it has kept paying better wages than rivals, even as Wall Street has pressured the company to conform to industry standards...

As the economy slowly recovers, it's no secret that companies would like to boost productivity and profits. Many think the best way to do so is to slash costs. As an entrepreneur and business owner, though, I'd like to suggest another idea: Pay your employees more.

That's not as crazy as it sounds. A growing body of evidence is revealing that companies that pay fair wages, and offer flexibility and training to even entry-level and lower-skilled employees, do better than those that don't. A vast number of businesses mistakenly assume that their lowest-wage workers are easily replaced or not worth investing in, but those that do the right thing soon find that they're doing the right thing for their bottom lines. It's time that this becomes a business norm.

Certainly, in tough times, higher wages, profit-sharing and training seem like optional perks. But here's the other side of the story: When you invest in people, they respond by performing well. In her rigorously researched book, Profit at the Bottom of the Ladder, Jody Heymann presents a well-documented lineup of businesses that have flourished in large part because their management practices include respecting and empowering their lowest-paid workers. Jenkins Brick, a major U.S. brick manufacturer in Alabama, credits higher wages and profit-sharing with increased productivity and quality, as well as reduced turnover and lowered accident rates. Dancing Deer, a Boston-based high-end baked goods company, opens the financial books, and makes training and stock options available to all employees because they are convinced that this gives the firm a competitive advantage. Specifically, management credits these practices with improving sales, boosting productivity and helping them attract talent.

ASK HENRY FORD--HE HAD MANY UNUSUAL IDEAS, BUT THEY WEREN'T ALL A RESULT OF RELIGIOUS BIGOTRY OR MADNESS....

[Demeter]

27. Millions Are on the Brink of Disaster, as Extended Unemployment Benefits Are in Doubt

http://www.alternet.org/story/148982/millions_are_on_the_brink_of_disaster%2C_as_extended_unemployment_benefits_are_in_doubt

Congress has always extended benefits when unemployment was over 7.2%. Today's unemployment rate is over 9% and the lame duck session of Congress has so far failed to extend them...


According to official statistics, nearly 15 million Americans are unemployed. Between 2 and 4 million of them are expected to exhaust their state unemployment insurance benefits between now and May. Historically, during times of high unemployment, Congress provides extra cash to extend the benefits. Congress has never failed to do so when unemployment is above 7.2%. Today's unemployment rate is above 9% and the lame duck session of Congress has so far failed to extend the benefits.

Congress has until November 30 to renew two federal programs to extend unemployment benefits, as David Moberg reports for Working In These Times. Last week, a bill to extend benefits for an additional three months failed to garner the two-thirds majority it needed to pass in the House. The House will probably take up the issue again this session, possibly for a one-year extension, but as Moberg notes, it's unclear how the bill will fare in the Senate. The implications are dire, as Moberg notes:

The result? Not just huge personal and familial hardships that scars the lives of young and old both economically and psychologically for years to come. But failure to renew extended benefits would also slow the recovery, raise unemployment, and deepen the fiscal crises of state and federal governments.

But Wait! There's More:

* The Paycheck Fairness Act died in the Senate last week, as Denise DiStephan reports in The Nation. The bill would have updated the 1963 Equal Pay Act to close loopholes and protect employees against employer retaliation for discussing wages. All Republican senators and Nebraska Democrat Ben Nelson voted not to bring the bill to the floor, killing the legislation for this session of Congress. The House already passed its version of the bill in 2009 and President Barack Obama had pledged to sign it.

* Economist Dean Baker talks with Laura Flanders of GritTV about quantitative easing (a.k.a. the Fed printing more money) and the draft proposal from the co-chairs of the deficit commission. Baker argues that we're facing an unemployment crisis, not a deficit crisis.

* Charles Ferguson's documentary "Inside Job" is a must-see, according to Matthew Rothschild of The Progressive. An examination of how Wall Street devastated the U.S. economy, the film details the reckless speculation in housing derivatives, enabled by crooked credit rating schemes, that brought the entire financial system to the brink of collapse. The film is narrated by Brad Pitt and features appearances by former Governor and anti-Wall Street corruption crusader Eliot Spitzer, financier George Soros, and Prof. Nouriel Roubini, the New York University economist who predicted the collapse of the housing bubble.

This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues:

http://www.themediaconsortium.org/issues/economy/

[Demeter]

28. DILBERT TRIES TO CHEER US UP

[Demeter]

91. MORE REALITY HUMOR FROM DILBERT

[Demeter]

29. What Voters Really Care, and Don't Care, About by: Paul Krugman

http://www.truth-out.org/what-voters-really-care-and-dont-care-about65226

READ IT AND WEEP

[Demeter]

31. Fair Pay Could Mean a More Fertile Future

http://blogs.alternet.org/speakeasy/2010/11/17/fair-pay-could-mean-a-more-fertile-future/

At first blush, the debate over the Paycheck Fairness Act may not look like part of our ongoing national fertility discourse. But the two kinds of “women’s work”—the labor done outside the home (for 23 percent less pay than for men), and the bearing and rearing of the citizenry done at home (for nothing)—are entirely interdependent. Failure to pass the PFA will give women yet another reason to have fewer kids.

Sound drastic? Look at the bottom line. In the days before birth control, women were stuck having kids, and could be compensated unfairly—if at all–for the work they did both inside and outside the home. But things have changed since the arrival of birth control. Women don’t have to have any kids anymore, let alone several, and though the ongoing media campaign for the pleasures of pregnancy and childrearing continues, the deal is looking less satisfactory and less necessary to many women. Discriminatory pay is a hidden tax on women and their families – averaging more than $10,000 annually. Add to that the additional costs of rearing and educating the next generation that families bear, and you’ve got a major disincentive to have more kids.

As you’ve noticed, the terms on which women are taking up the motherhood role are changing. Single-child families have more than doubled since the sixties (now 1 in 5). Exploding numbers of women are delaying children into their thirties and forties, in large part because delay provides a shadow benefits system. Delay gives them time to climb career ladders to higher (but still not equal) pay and flexibility that they can’t access by other means, ensuring that their kids will be better off and better educated than they would otherwise. Delay also limits the number of kids women can bear by the usual means to one or two in general (though that’s okay with most). And many women (and men) are seeing attractions in living childfree. Though a lifetime of indoctrination prepares women for the job of reproduction, the spin is losing speed. Failure to pass the PFA would add more drag...

[Demeter]

33. Eurozone borrowing costs hit record

Irish, Portuguese and Spanish bond yields surge to their highest points since the launch of the euro amid signs the debt crisis that forced Ireland into a multibillion-euro bail-out was spreading

Read more >>
http://link.ft.com/r/6NPSBB/PR72TX/HI3M9/RN540H/6VQXIU/1G/t?a1=2010&a2=11&a3=26

[Demeter]

34. Lisbon's cuts unlikely to ease nerves

Due to be approved by parliament on Friday, Portugal’s austerity budget is unlikely to calm jittery financial markets amid growing expectations of a recession

Read more >>
http://link.ft.com/r/6NPSBB/PR72TX/HI3M9/RN540H/V170AE/1G/t?a1=2010&a2=11&a3=26

[Demeter]

41. Portuguese unions strike over austerity plan

Trade unions caused widespread disruption with their biggest general strike in recent history, adding to pressures on the Lisbon government

Read more >>
http://link.ft.com/r/TWK799/9ZUJ7F/LSLXF/UUXWO5/S32LMN/LE/t?a1=2010&a2=11&a3=25

[Demeter]

35. Berlin rejects rescue fund increase

The German government has rejected an increase in the size of the €440bn European financial stability facility – the eurozone rescue fund established in May

Read more >>
http://link.ft.com/r/6NPSBB/PR72TX/HI3M9/RN540H/BMFEJ1/1G/t?a1=2010&a2=11&a3=26

[Demeter]

37. Bundesbank cautions over German banking

German banks are in better shape than a year ago but the country must do more to sort out vulnerable parts of the system, according to the Bundesbank

Read more >>
http://link.ft.com/r/H60H77/40R9GN/B49CK/5CFNRU/A7RIRY/E4/t?a1=2010&a2=11&a3=26

[Demeter]

36. Citi looks to Europe retail revival

The US bank plans to resuscitate its retail presence in Europe as it seeks to move beyond a period of enforced shrinkage and back into a mode of targeted growth

Read more >>
http://link.ft.com/r/H60H77/40R9GN/B49CK/5CFNRU/729K9D/E4/t?a1=2010&a2=11&a3=26

[Demeter]

38. UBS sued by Madoff trustee on fraud counts

Trustee charged with recovering money for the victims of jailed financier Bernard Madoff has sued UBS for fraud

Read more >>
http://link.ft.com/r/CTBPCC/D4HNOB/1O51V/LQVC3Q/LQGRAR/JY/t?a1=2010&a2=11&a3=25

[Demeter]

40. Arrest in US insider dealing probe

An executive at a US firm that links expert sources at public companies with hedge funds has been arrested on conspiracy charges in what could be a ground-breaking criminal insider trading case.

The FBI’s arrest of Don Ching Trang Chu, 56, an Asia and technology expert at Primary Global Research, at his home in New Jersey is part of a broader investigation of insider dealing at hedge funds.

Read more >>
http://link.ft.com/r/TWK799/9ZUJ7F/LSLXF/UUXWO5/QFCUAE/LE/t?a1=2010&a2=11&a3=25

[Demeter]

44. DOJ Seeks to Broaden Patriot Act on Asset Freezes

http://online.wsj.com/article/SB10001424052748703572404575635060975706040.html?mod=WSJ_hpp_sections_news

After two losses in court, the Justice Department is pushing Congress to broaden a provision of the Patriot Act that allows U.S. judges to freeze assets linked to foreign crimes.

In recent cases in New York and Washington, D.C., federal judges ruled the Justice Department acted prematurely on requests by foreign governments for restraining orders against hundreds of millions of dollars in assets allegedly controlled by a Russian businessman and a Brazilian banker, both ensnared in criminal investigations in their native countries.

The cases have raised questions about the extent to which U.S. prosecutors and courts should rely on the legal processes of foreign governments, particularly in countries with unproven or uneven criminal justice systems. The issue has taken on more weight amid a global trend for greater international cooperation in law enforcement, spurred in large part by the U.S.

The courts ruled the department may seek to have assets frozen based on a judgment from a foreign court, but not on allegations of violations of foreign law or temporary orders by foreign courts.

That reading of the law, prosecutors argued in pleadings, could hamper "significant national interests" by undermining the Justice Department's ability to assist foreign governments during—rather than after—criminal investigations...

HEY JUSTICE DEPARTMENT! HOW ABOUT US COMPANIES COMMITTING CRIMES AT HOME AND ABROAD? CAN WE ASSET-STRIP THEM? PLEASE?

[Demeter]

47. Next Up: a "Flat Tax" for the Rich By MICHAEL HUDSON MUST READ!!

http://www.informationclearinghouse.info/article26914.htm

The danger the United States faces today is that the government debt crisis scheduled to hit Congress next spring (when Republicans are threatening to vote against raising the federal debt limit as the government deficit soars) will provide an opportunity for the wealthy to give a coup de grace on what is left of progressive taxation in this country. A flat tax on wage income and consumer sales would “free” the rentiers from taxes on their property.

All governments have to levy taxes – that is, they have to tax somebody. Naturally, the super-rich would like this tax to be shifted off their shoulders onto those who have to work for a living. In diametric opposition to Adam Smith and other putative “founding fathers” of “free market” neoliberalism, the super-rich want to shift taxes off “free lunch” economic rent – off interest, dividends, rents and capital gains – onto wage-earners.

This tax shift already has been underway for the past thirty years. It has doubled the proportion of the returns to wealth (interest, dividends, rents and capital gains) enjoyed by the wealthiest 1 per cent, from a reported one-third in 1979 to an estimated two-thirds of the U.S. total today.

This regressive tax shift off wealth onto wage earners has occurred in three ways. The largest and most egregious was the Greenspan Commission’s ploy of moving the cost of Social Security and Medicare out of the general budget (where it would have to be financed by taxpayers in the higher brackets) onto the bottom of the scale in 1982....

[Demeter]

48. Global Poverty Doubled since 1970s: UN By Agence France-Presse

http://www.informationclearinghouse.info/article26918.htm

The number of very poor countries has doubled in the last 30 to 40 years, while the number of people living in extreme poverty has also grown two-fold, a UN think-tank warned Thursday.

In its annual report on the 49 least developed countries (LDCs) in the world, the UN Conference on Trade and Development (UNCTAD) said that the model of development that has prevailed to date for these countries has failed and should be re-assessed.

"The traditional models that have been applied to LDCs that tend to move the LDCs in the direction of trade-related growth seem not to have done very well," said Supachai Panitchpakdi, secretary general of UNCTAD.

"What happened is that in the past 30-40 years, the number of LDCs have doubled so it has actually deteriorated, the number of people living under the poverty line has doubled from the 1980s."

[Demeter]

49. Putin Ditches Dollar, Backs Euro Putin - Euro should be World's Reserve Currency

http://www.informationclearinghouse.info/article26917.htm

VIDEO AT LINK

Putin: Russia will Join the Euro One Day By Louise Armitstead

Vladimir Putin said it is "quite possible" that Russia will one day join the eurozone and create a currency that would eclipse the US dollar as the global reserve standard.

Speaking at a conference in Germany the Russian prime minister, who is in the country for talks with Chancellor Angela Merkel, said he was convinced the euro would stabilise and strengthen despite the current sovereign debt crisis.

He said: "Yes, there are problems. But the economic policy of the European Central Bank and of the governments of leading European economies ... convinces me that the stability of the euro will be ensured."

He added: "We know there are problems in Portugal, Greece, Ireland and the euro is wobbling a bit. On the whole it is a solid, good currency and it should take its place, its role as a reserve currency."

[Demeter]

50. Several Lawmakers Invested in L-3 Communications, Maker of Airport Body-Scanning Machines

http://www.opensecrets.org/news/2010/11/several-federal-lawmakers-invested.html

By Michael Beckel on November 23, 2010 6:05 PM

L3 Communications Full Body Scan.jpgA handful of federal lawmakers are invested in one of the companies behind the controversial full-body scanning machines now in more than 60 U.S. airports. The individual investments are worth thousands, and in some cases tens or hundreds of thousands, of dollars.

According to a Center for Responsive Politics review of the most recent personal financial disclosure filings, eight members of Congress -- three Democrats and five Republicans -- owned at least $2,000 worth of stock in L-3 Communications, which is one of the two main contractors involved in the full-body scanning machines.

Sen. John Kerry (D-Mass.) disclosed possessing the most stock in L-3 Communications -- with a minimum investment of at least $500,000 and a maximum value of $1 million. The L-3 Communications stock is fully owned by his wife, Teresa Heinz, according to federal financial disclosure reports.


Name Value

Sen. John Kerry (D-Mass.) $500,001 to $1,000,000

Rep. Michael Castle (R-Del) $16,002 to $65,000

Rep. Michael McCaul (R-Texas) $16,002 to $65,000

Rep. Judy Biggert (R-Ill.) $15,001 to $50,000

Rep. Ron Klein (D-Fla.) $1,001 to $15,000

Rep. Robert Scott (D-Va.) $1,001 to $15,000

Sen. Jon Kyl (R-Ariz.) $2,173

Rep. Kenny Marchant (R-Texas) $2,086

[Demeter]

51. An alliance of opposites takes on Pentagon

http://www.boston.com/news/nation/washington/articles/2010/11/21/frank_paul_make_a_case_for_pentagon_cuts/?page=2

...Frank and Ron Paul began working together on the matter earlier this year, after President Obama announced a three-year spending freeze across the federal government but exempted the Pentagon, Medicare, Medicaid, and Social Security...

To offer specifics on how defense spending can be trimmed, Frank and Paul set up what they called the Sustainable Defense Task Force, a group of specialists led by the Project on Defense Alternatives, a Cambridge, Mass.-based think tank focused on reducing military spending.

The task force released a report in June that identified about $1 trillion in cuts over the next decade out of a projected $6 trillion in spending during that period. It called for cutting expensive weapons systems with a history of problems, including the F-35 Joint Strike Fighter, the Expeditionary Fighting Vehicle, and the Osprey aircraft, and for a 26 percent reduction in personnel at US military bases in Europe and Asia.

“If England and Germany feel threatened, they can increase their own militaries,’’ said Frank, who noted that both European allies are cutting their own defense budgets.

[Demeter]

56. Goldman on Economy: Two Scenarios, ‘Fairly Bad’ or ‘Very Bad’

http://blogs.wsj.com/marketbeat/2010/10/06/goldman-on-economy-two-scenarios-fairly-bad-or-very-bad/

...Jan “Johnny the Hat” Hatzius and his crew of Goldman Sachs econowonks were out with a pretty dismal read on the U.S. economy:

We see two main scenarios for the economy over the next 6-9 months—a fairly bad one in which the economy grows at a 1½%-2% rate through the middle of next year and the unemployment rate rises moderately to 10%, and a very bad one in which the economy returns to an outright recession. There is not much probability of a significantly better outcome. The reason is that “short-cycle” factors such as the inventory cycle and the impulse from fiscal policy are likely to continue deteriorating through early 2011, keeping GDP growth very sluggish.

Of course, while Goldman’s calls get plenty of attention, it’s always important to note that the organization is merely a vampire squid, not a clairvoyant vampire squid. Case in point, Goldman Treasurys analysts have been on record saying that they thought the rally in U.S. debt would have run its course with the 10-year yield around 2.50%. We’re punching lower through 2.40% this morning. For more on the Goldman note, check out this story over on Bloomberg:

http://noir.bloomberg.com/apps/news?pid=20601087&sid=agZ93VxOIJQQ&pos=3

[Demeter]

57. Corporatism: The Cyborg Amongst Us By by Aetius Romulous MUST READ

http://www.informationclearinghouse.info/article26517.htm

In a world of fragile mortal beings, the corporation is a cyborg.

A corporation is nothing more than a legal construct, a packet of documents and papers that conforms to law (or more properly, has law conform to it). The corporation is a "virtual person" - a cyborg. It has been unchanged in its essential form since the first corporations were designed in the early 17th century. Its purpose was - as it is today - to concentrate the capital of individuals, provide that concentration with legal protections and rights under law and legislation, and to then use that concentrated capital to create profits from projects beyond the scope and reach of individual mortal men.

This corporate cyborg proved to be so remarkably adept at concentrating capital and earning returns on investment that the corporations use today has become essential in a marketplace dominated by other corporations. Individuals have no chance of competing, expressly because the intended purpose of a corporate cyborg was to defeat the meager returns and profit of mortal individuals. Corporations were created, and are still employed, precisely because the individual cannot provide capital and returns on the scale that the corporation can. The corporate format works like a charm.

The concentration of capital is an important and necessary function however. Without a framework for the concentrated power of capital, it is hard to imagine how the great works of our modern civilization could have been developed. From the early railroads and canal systems, through to the worldwide network of fibre optic cables and satellite systems, the corporate format has wrought great and wonderful things. We are all a species much advanced because of it.

But while the current corporate format certainly does these things - it also does a great deal more. Modern corporations, for instance, have an unlimited lifespan, and outlive the original purpose of the capital and the humans that designed it. Limited liability joint stock companies can and regularly do shed appropriate risk, or avoid it altogether - risks no human would ever take on themselves, or any society would otherwise accept.

[Demeter]

59. Cali. couple charged with trashing foreclosed home

http://www.todaysthv.com/news/local/story.aspx?storyid=121295&catid=288

A San Diego police officer and his wife are facing possible jail time, after allegedly trashing their home that went into foreclosure near San Diego. They're accused of doing $200,000 damage to their home in Southwest Riverside.
Advertisement

It is another shattered American dream. This house owned by Monique and Robert Acosta taken over by the bank. Neighbor Keith Peet says, "They loved it so much. They put their heart and soul and just everything into it. I mean, it was the best house on the street."

When the couple, she, a real estate worker and he, a San Diego policeman learned the bank was foreclosing, prosecutors say they tore the home apart, ripping off doors, light fixtures, sledge hammering stones, even throwing trees into the swimming pool. Destroying many of the improvements they had made throughout the years.

Keith says, "It didn't hit me until they actually asked me to sledge hammer that they were going way beyond damage. And it was out of control."

The Riverside County district attorney has filed charges against the couple, and issued warrants for their arrest with charges that could lead up to four years in prison.

Jennifer Peet says, "I think they were just . mad. Cause they tried to do everything. You know the bank told them to get a cheaper car payment. They got a cheaper car payment. They told them to do something else, They did it."

In these tough economic times, Keith and Jennifer have watched many homes in this community get repossessed by the bank. They fear their home is in jeopardy too. Jennifer says, "Yeah, the bank denied our modification just last week we got a letter saying it was denied."

They feel sorry for their friends who first lost their dream and now may now lose their freedom.

The couple reportedly stole doors, cabinets and other fixtures from the house as well. Those items were later recovered. Acosta is on unspecified administrative leave from the police department.

[Demeter]

60. IMF admits that the West is stuck in near depression

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8039789/IMF-admits-that-the-West-is-stuck-in-near-depression.html

If you strip away the political correctness, Chapter Three of the IMF's World Economic Outlook more or less condemns Southern Europe to death by slow suffocation and leaves little doubt that fiscal tightening will trap North Europe, Britain and America in slump for a long time. ....

The IMF report – "Will It Hurt? Macroeconomic Effects of Fiscal Consolidation" – implicitly argues that austerity will do more damage than so far admitted.

Normally, tightening of 1pc of GDP in one country leads to a 0.5pc loss of growth after two years. It is another story when half the globe is in trouble and tightening in lockstep. Lost growth would be double if interest rates are already zero, and if everybody cuts spending at once.

"Not all countries can reduce the value of their currency and increase net exports at the same time," it said. Nobel economist Joe Stiglitz goes further, warning that damn may break altogether in parts of Europe, setting off a "death spiral".

The Fund said damage also doubles for states that cannot cut rates or devalue – think Spain, Portugal, Ireland, Greece, and Italy, all trapped in EMU at overvalued exchange rates...

[Demeter]

61. Fraud Factories: How Banks Profit From The Foreclosure Crisis By Rep. Alan Grayson

I HOPE THIS IS NOT THE LAST WORD FROM ALAN GRAYSON...IF EVER A MAN WAS NEEDED!

http://www.informationclearinghouse.info/article26507.htm


MUST WATCH VIDEO!!

[Demeter]

71. Grayson: What Republicans Can Do With Their Tax Cuts For The Rich

http://www.youtube.com/watch?v=4-mZtdI7-hY&feature=player_embedded

[bread_and_roses]

62. Gee - Islam abuses and exploits workers just like Christiendom!

What a surprise, eh? I've read any number of stories on this over the years, particularly from Saudi Arabia and - I think - Dubai, but right now there are hundreds of links on abuse of domestic workers due to some recent grisly high-profile cases, so I'll just reference a Wiki article for brief summary (however, I take exception to the exculpatory phrases in the introduction):

http://en.wikipedia.org/wiki/Human_rights_in_the_United_Arab_Emirates

Migrants, particularly migrant workers, make up a majority (approximately 80%) of the resident population of the UAE, and account for 90% of its workforce.<6> They lack rights associated with citizenship and face a variety of restrictions on their rights as workers.<7><8>

It is common practice, although illegal, for employers in the UAE to retain employees' passports for the duration of the employment contract to prevent expatriate employees from changing jobs. On termination of an employment contract, certain categories of expatriates are banned from obtaining a work permit in the country for six months.<9>

Migrants, mostly of South Asian origin, constitute for 42.5% of the UAE’s workforce<10> and are subject to a range of human rights abuses. Workers typically arrive in debt to recruitment agents from home countries and upon arrival are often made to sign a new contract in English or Arabic which pays them less than had originally been agreed.<11> Visa and travel costs are typically added on to the original debt, and thus within hours of their arrival, workers often find that their debt-repayment time has increased significantly, possibly by years.

and

http://in.reuters.com/article/idINIndia-47815720100419

Reuters) - Gulf Arab countries must end their sponsorship system for migrant workers that leaves labourers beholden to employers and exposed to potential abuse, the U.N. High Commissioner for Human Rights said on Monday.

"Some are held in prolonged detention after they escape abusive employers and may be unable to obtain access to judicial recourse and effective remedies for their plight."

The world's largest oil exporting region has attracted tens of millions of mostly blue-collar migrants from Asian countries, many of whom work in construction or as domestic maids.

Under the sponsorship systems in place in much of the Gulf, nationals or companies can hire large numbers of migrant workers who are dependent on their employers for food and shelter.

Many workers complain that agencies or employers confiscate their passports for the duration of their contracts, do not pay them regularly or deduct housing or health costs from their pay.

To paraphrase the song... "RELIGION ... What is it good for?"

[Demeter]

63. Perhaps More Accurately: the Obscenely Wealthy Abuse the Vulnerable

It's not a matter of religion, but of personality disorder.

[bread_and_roses]

70. I take your point - which was the sub-text of mine, but yes, there's a slam at religion there too

I have always found it utterly amazing that what I think Gore Vidal called the "sky god" religions - Judaism, Christianity, and Islam - despite tenets of care for the poor, etc - seem to have no impact at all on either the behavior of the rich or pervasive structural inequality, exploitation, abuse, and institutional violence. (of course, that's true of non-sky-god religions as well)

While there are individuals who fully embrace the dictates to "minister to the poor," and while many individuals (including, ironically, many of the "poor" themselves) who try to follow these principles, they have absolutely no impact on structural injustice, abuse, cruelty, and violence.

I admit my views are not free of bias - I really detest all religion. Nor do I respect anyone's religious beliefs or practices - I respect only their right to them as long as they don't impinge on the rights of others or harm other people or abuse animals in their practice.

[Demeter]

82. Money Is the Only Real Religion Today

The rest is bigotry, superstition and fairy tales, with a little ethics thrown in for "respectability".

[DemReadingDU]

95. Greed

The quest for who gets the most money, whatever the country or religion or currency. It appears that whoever gets the most money is the winner. Sad, they really don't care about the toes they step on in their quest to be the richest.

[Demeter]

64. California Will Default On Its Debt, Says Chris Whalen

VIDEO AND SUPPORTING DATA

http://finance.yahoo.com/tech-ticker/california-will-default-on-its-debt-says-chris-whalen-535616.html;_ylt=As2ihD9Zc5vFD8CIQu7GhUa7YWsA;_ylu=X3oDMTE1ZGgyY3Q3BHBvcwM0BHNlYwN0b3BTdG9yaWVzBHNsawNjYWxpZm9ybmlhd2k-?tickers=^dji,^gspc,^ixic,^tnx,tlt,tb

[Demeter]

65. The Federal Reserve and the Pathology of Power

http://www.oftwominds.com/blognov10/pathology-of-power11-10.html

WORTHY ESSAY

[Demeter]

66. Morgan Stanley: It's Starting To Look A Lot Like Stagflation

While the world worries about inflation or deflation, Morgan Stanley believe their is another specter out there ready to haunt markets: stagflation.

Their opinion is that right now, the global monetary environment looks a lot like the 1970s, where high levels of liquidity forced OPEC to raise oil prices causing high inflation and low growth in the global economy.

Their findings also show great differences between the two time periods, including the flexibility of oil prices, and high U.S. unemployment.

But what's more worrying are the similarities. With quantitative easing 2 in place, global monetary policy is extremely loose, driving inflation, especially in emerging markets. If oil prices were to spike to catch up the result could be stagflation, as high oil prices limit global growth.


Read more: http://www.businessinsider.com/morgan-stanley-heres-how-it-is-starting-to-look-like-1970s-stagflation-2010-11##ixzz16UU5MKD7

WHY NOT SAY THAT THEY ARE BETTING ON IT, BY SPECULATING IN OIL FUTURES?

[Name removed]

67. Deleted message

Message removed by moderator. Click here to review the message board rules.

[Demeter]

68. FCIC Delays Report Despite Republican Opposition, Citing 'Very Powerful Interests' Undermine Investi

http://www.huffingtonpost.com/2010/11/17/fcic-delays-report-angelides-powerful-interests_n_785205.html

FCIC Delays Report Despite Republican Opposition, Citing 'Very Powerful Interests' Seeking To Undermine Investigations

The bipartisan panel created to investigate the roots of the financial crisis voted Wednesday to delay the Dec. 15 publication of their report despite Republican opposition, foreshadowing disagreements that are sure to arise when the commission attempts to reach a consensus on the causes of the worst financial crisis since the Great Depression.

The Financial Crisis Inquiry Commission's 6-to-3 vote came after the panel's four Republicans argued privately against the decision to ignore the statutory deadline set by Congress. One of the Republicans, former Congressional Budget Office Director Douglas Holtz-Eakin, was unable to participate in the vote, though he made his dissent known. The report will now be released in January...

MUCH MORE AT LINK

[Demeter]

69. Waking People Up, Getting Them To Realize That American Dream Is Becoming The American Nightmare

http://endoftheamericandream.com/archives/the-washington-post-runs-an-article-entitled-five-myths-about-the-federal-reserve-authored-by-an-economist-linked-to-the-rothschilds

The Washington Post Runs An Article Entitled “Five Myths About The Federal Reserve” Authored By An Economist Linked To The Rothschilds

There have been so many attacks on the Federal Reserve recently that the mainstream media now feels almost forced to try to defend their actions. The most blatant example of this recently was an article in the Washington Post entitled "Five Myths About The Federal Reserve". The article was authored by Greg Ip, the U.S. economics editor of The Economist. According to Wikipedia, the Rothschild banking family is a partial owner of the firm that operates The Economist. You would have thought that they would have gotten someone a whole lot less obvious to produce this propaganda piece, but apparently they did not think anyone would notice. Of course an economics editor of The Economist is going to defend the Federal Reserve. He would be fired if he didn't. The Economist is well known to be a mouthpiece for the international central banking establishment. But what is really sad is how poor a job Greg Ip did in defending the Fed. If these are the best intellectual arguments they can come up with then they are in huge trouble.

Below are the "five myths" that Greg Ip attempted to debunk in his article. I will tackle them one by one.....

#1 The First Myth About The Federal Reserve The Washington Post Supposedly "Debunked": By printing money, the Fed will create runaway inflation.

Are we going to have hyper-inflation tomorrow because the Federal Reserve is pumping $600 billion into the U.S. economy?

No.

CONTINUE AT LINK

[Demeter]

73. Three Potentially Disastrous Outcomes From Ben Bernanke's QE 2 Wager

http://www.zerohedge.com/article/three-potentially-disastrous-outcomes-ben-bernankes-qe-2-wager?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+t

Ben Bernanke has made a very dangerous bet.

The Fed’s Quantitative Easing 2 announcement of $600 billion in additional Treasury purchases is literally a “bet the farm” move. True, the Fed had already engaged in an unbelievable amount of bailouts both known and unknown. However, the Fed’s previous moves were all made when 1) the world financial system was teetering on the brink of collapse and 2) other countries were engaging in similar practices.

In contrast, the Fed’s new QE 2 announcement comes at a time when the consensus is that the US economy is recovering (I don’t buy it, but most analysts/ commentators do) and other central banks have publicly declared they won’t be engaging in additional easing (the ECB and UK) or are outright tightening credit and raising interest rates (China and Australia).

So this time, the Fed is going at it alone. Indeed, the only other major economy that is determined to engage in more intervention is Japan, which has thrown trillions of yen down the toilet for decades with nothing to show for it. And it’s not like Japan is pleased about the Fed’s move as it devalues the Dollar and cuts into Japanese export margins.

Consequently, even the country engaging in more QE is NOT a fan of Bernanke’s QE 2 plan. However, this is just ONE of the myriad of problems QE 2 faces. The three biggest problems with QE 2 are:

1. 1) The potential for a US Dollar break-down
2. 2) Treasuries falling and pushing interest rates UP
3. 3) China retaliating.

MORE AT LINK

[Demeter]

74. Atlantic Capital Management Explains Why QE2 Is A Hail Mary Throw Toward The Wrong Endzone

http://www.zerohedge.com/article/atlantic-capital-management-explains-why-qe2-hail-mary-throw-toward-wrong-endzone?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+f

[Demeter]

75. WTF! Are Progressives Seriously Defending the Federal Reserve?

http://ampedstatus.com/wtf-are-progressives-seriously-defending-the-federal-reserve

...Watching Progressives defend the Federal Reserve is one of the most horrifying developments I have seen, and we all know how horrifying things currently are. Just because some Republicans have come out against the Fed’s QE2 policy, doesn’t mean that you should think the policy is a good thing.

Don’t be such a reactionary partisan hack!

[Demeter]

72. A Lesson in US Job Creation: The Civilian Conservation Corps

http://triplecrisis.com/a-lesson-in-job-creation-the-civilian-conservation-corps

A LITTLE HISTORY LESSON

[Demeter]

76. Shop Till You Drop Will Not Bring The Economy Back, Capital Punishment for Wall Street?

http://www.newsdissector.com/blog/2010/11/21/shop-till-you-drop-will-not-bring-the-economy-back-capital-punishment-for-wall-street-tehran-day-7/

...Paul Farrell offers 15 reasons on Marketwatch about how the people behind the economic collapse continue to get away with it.

Here are 5 of them.

“1. Gross denial of any moral damage caused by their rampant greed

2. Narcissistic egomaniacs with secret ‘God complexes’
Today, all of Wall Street is dual diagnosed: They’re morally blind money addicts who believe they’re “God’s chosen.” AA would say: They haven’t “bottomed,” won’t recover from their disease till a disaster hits, with another market meltdown and the “Great Depression 2.” Then maybe they’ll “quit playing God.”

3. Paranoid obsessives about secrecy, guilt and non-disclosure

4. Power-hungry need to control government using Trojan Horses

5. Borderline personalities who regularly ignore conflicts of interest”
He goes on with an indictment that clearly suggests nothing has really changed when it comes to the folks who are making money and sucking in bonuses when others aren’t....

[Demeter]

77. The Road to Revolution: 99% Uprising (Recut MaxKeiser.com Version)

http://www.youtube.com/watch?v=32H_yNNg5mo&feature=player_embedded

VIDEO

[Demeter]

78. International Soccer Star: Reclaim Your Power By Pulling Your Money Out of Your Bank on December 7th

http://georgewashington2.blogspot.com/2010/11/international-soccer-star-pull-your.html


Most Americans haven't heard of him, but Eric Cantona is a huge international soccer star known throughout Europe and much of the world.
Cantona is calling for Europeans to pull their money out of banks on December 7th:

I don't think we can be entirely happy seeing such misery around us. Unless you live in a pod. But then there is a chance... there is something to do. Nowadays what does it mean to be on the streets? To demonstrate? You swindle yourself. Anyway, that's not the way any more.

We don't pick up weapons to kill people to start the revolution. The revolution is really easy to do these days. What's the system? The system is built on the power of the banks. So it must be destroyed through the banks.

This means that the three million people with their placards on the streets, they go to the bank and they withdraw their money and the banks collapse. Three million, 10 million people, and the banks collapse and there is no real threat. A real revolution.

We must go to the bank. In this case there would be a real revolution. It's not complicated; instead of going on the streets and driving kilometres by car you simply go to the bank in your country and withdraw your money, and if there are a lot of people withdrawing their money the system collapses. No weapons, no blood, or anything like that.

It's not complicated and in this case they will listen to us in a different way.

[mbperrin]

88. Great idea! We pulled all our dealings with banks in 1978

and have never looked back - no accounts, no loans, nothing. It's nice not having to pay someone else for using your own money.

[Demeter]

79. "Inexcusable" breakdown of foreclosure process cited

http://www.reuters.com/article/idUSTRE6AM4UW20101123

Regulators have found widespread and "inexcusable" problems in the way banks have foreclosed on homes and a fix is needed, a senior Treasury Department official said on Tuesday.

Michael Barr, assistant Treasury secretary for financial institutions, took mortgage service companies to task in summarizing the preliminary findings of a probe regulators have launched into how lenders have seized homes on which mortgage payments have fallen behind.

"The bulk of the examination work to date focused on the foreclosure process has found widespread and, in our judgment, inexcusable breakdowns in the foreclosure process," Barr told the second meeting of the Financial Stability Oversight Council. Its task is to make the financial system less prone to systemic breakdowns.

"These problems must be fixed," Barr added.

A Treasury-led task force is due to present a formal report of findings from its ongoing reviews at the top regulator council's next meeting in January, Barr said.

The task force includes the federal financial regulators, the Federal Trade Commission, the Department of Justice and the Department of Housing and Urban Development, as well as state attorneys general and bank supervisors.

[Demeter]

80. Foreclosure Crisis Triggers Debate on Role of Mortgage Registry

http://www.bloomberg.com/news/2010-10-19/u-s-electronic-mortgage-registry-comes-under-fire-in-foreclosure-crisis.html

COMPLEX WONKY

[Demeter]

83. SEC Discussing Foreclosures With Other Regulators, Chairman Schapiro Says

http://www.bloomberg.com/news/2010-10-19/sec-discussing-foreclosures-with-other-regulators-chairman-schapiro-says.html

EVERYBODY WANTS TO GET INTO THE ACT

[Demeter]

81. SOUR GRAPES? South America Should Slow Domestic Demand to Avoid Overheating, IMF Says

http://www.bloomberg.com/news/2010-10-19/south-america-should-slow-domestic-demand-to-avoid-overheating-imf-says.html

South American governments face a risk of accelerating inflation and worsening trade deficits if rising domestic demand in the wake of the global financial crisis isn’t tempered, the International Monetary Fund said.

Driven by exports such as soybeans and copper, Latin American and Caribbean economies will grow 5.7 percent this year, led by an 8.3 percent expansion in Peru and 7.5 percent growth in both Argentina and Brazil, the IMF said in its Regional Economic Outlook today. In May, the Washington-based lender had estimated 4 percent growth in the region this year.

South American countries that have seen a surge in domestic demand growth need to unwind stimulus programs they implemented during the 2008-2009 financial crisis, when the region’s economy contracted 1.7 percent, the IMF said. Inflationary pressures could increase and current account deficits will widen if policy makers fail to moderate demand growth, the lender said.

“For most of South America, it is all about the risks of too much of a good thing, to avoid possible excesses of demand and finance,” Nicolas Eyzaguirre, director of the IMF’s Western Hemisphere department, said in a statement released with the report. “Demand needs to moderate in these countries or they may risk experiencing overheating.”

TWO WORDS, IMF:

MORDA ME!

[Demeter]

84. China restarts rare earth shipments to Japan

http://www.washingtonpost.com/wp-dyn/content/article/2010/11/23/AR2010112308147.html?hpid=sec-business

A SIGNIFICANT SETBACK FOR CHINA? AFTER JAPAN GETS NEW SUPPLIER!

[Demeter]

85. Investors pressure Bank of America to buy back bad mortgages

http://www.latimes.com/business/la-fi-bank-of-america-loss-20101020,0,5193498.story

Several major investment firms are moving to force Bank of America Corp. to buy back bad mortgages that were issued by Countrywide before the lender was acquired by the financial giant.

News of the effort by mortgage-bond investors — including Pimco of Newport Beach, TCW Corp. of Los Angeles and BlackRock Inc. of New York — came LAST MONTH after BofA posted a $7.3-billion third-quarter loss....

[Demeter]

86. A Joyful Announcement to the readership

I am BELOW 200 emails! for the first time in months. Could it be possible to get down to no backlog?

Well, read up on what is here...real life calls. See you all tonight!

Demeter

[Demeter]

87. Music Identified as Islamic on Youtube

http://www.youtube.com/watch?v=2OWt0sc71-k

http://www.youtube.com/watch?v=zvU4uxJviow&feature=related

http://www.youtube.com/watch?v=mMUcCjsxScc&feature=related

[Demeter]

92. A LITTLE MORE ABOUT ISLAM

The word islam is a verbal noun originating from the triliteral root s-l-m, and is derived from the Arabic verb ’áslama, which means "to give up, to desert, to surrender (to God)." Another word derived from the same root is salaam (سلام) which means 'Peace'. Muslim, the word for an adherent of Islam, is the active participle of the same verb of which Islām is the infinitive. Believers demonstrate submission to God by worshipping Him, following His commands, and avoiding polytheism. The word sometimes has distinct connotations in its various occurrences in the Qur'an. In some verses (ayat), there is stress on the quality of Islam as an internal conviction: "Whomsoever God desires to guide, He expands his breast to Islam." Other verses connect islām and dīn (usually translated as "religion"): "Today, I have perfected your religion (dīn) for you; I have completed My blessing upon you; I have approved Islam for your religion." Still others describe Islam as an action of returning to God—more than just a verbal affirmation of faith. Another technical meaning in Islamic thought is as one part of a triad of islam, imān (faith), and ihsān (excellence) where it represents acts of worship (`ibādah) and Islamic law (sharia). ---http://en.wikipedia.org/wiki/Islam

MORE FROM WIKI

Allah means God in Arabic

Allāh is the term with no plural or gender used by Muslims to refer to the one God while ʾilāh is the term used for a diety or a god in general. Other non-Arab Muslims might use different names as much as Allah, for instance "Tanrı" in Turkish or "Khodā" in Persian.

Islam's fundamental concept is a rigorous monotheism, called tawhīd. God is described in chapter 112 of the Qur'an as: "Say: He is God, the One and Only; God, the Eternal, Absolute; He begetteth not, nor is He begotten; And there is none like unto Him." (112:1-4) Muslims repudiate the Christian doctrine of the Trinity and divinity of Jesus, comparing it to polytheism but accept Jesus as a prophet. In Islam, God is beyond all comprehension and Muslims are not expected to visualize God. God is described and referred to by certain names or attributes, the most common being al-rahman, meaning "the compassionate" and al-rahim, meaning "the merciful" (See Names of God in Islam).

Muslims believe that the purpose of existence is to worship God. He is viewed as a personal God who states “We are nearer to him than (his) jugular vein” and responds whenever a person in need or distress calls Him. There are no intermediaries, such as clergy, between God and the creation that he brought into being by the sheer command “‘Be’ and it is.”

[Demeter]

93. Islamic view of angels AND Revelations

Belief in angels is fundamental to the faith of Islam. The Arabic word for angel (malak) means "messenger", like its counterparts in Hebrew (malakh) and Greek (angelos). According to the Qur'an, angels do not possess free will, and worship God in total obedience. Angels' duties include communicating revelations from God, glorifying God, recording every person's actions, and taking a person's soul at the time of death. They are also thought to intercede on man's behalf. The Qur'an describes angels as "messengers with wings—two, or three, or four (pairs): He adds to Creation as He pleases..."

The Islamic holy books are the records which most Muslims believe were dictated by God to various prophets. Muslims believe that parts of the previously revealed scriptures, the Tawrat (Torah) and the Injil (Gospels), had become distorted—either in interpretation, in text, or both. The Qur'an (literally, “Reading” or “Recitation”) is viewed by Muslims as the final revelation and literal Word of God and is widely regarded as the finest piece of literature work in the Arabic language. Muslims believe that the verses of the Qur'an were revealed to Muhammad by God through the archangel Gabriel (Jibrīl). on many occasions between 610 and his death on June 8, 632. The Qur'an was reportedly written down by Muhammad's companions (sahabah) while he was alive, although the prime method of transmission was orally. It was compiled in the time of Abu Bakr, the first caliph, and was standardized under the administration of Uthman, the third caliph.

The Qur'an is divided into 114 suras, or chapters, which combined, contain 6,236 āyāt, or verses. The chronologically earlier suras, revealed at Mecca, are primarily concerned with ethical and spiritual topics. The later Medinan suras mostly discuss social and moral issues relevant to the Muslim community. The Qur'an is more concerned with moral guidance than legal instruction, and is considered the "sourcebook of Islamic principles and values". Muslim jurists consult the hadith, or the written record of Prophet Muhammad's life, to both supplement the Qur'an and assist with its interpretation. The science of Qur'anic commentary and exegesis is known as tafsir.

When Muslims speak in the abstract about "the Qur'an", they usually mean the scripture as recited in Arabic rather than the printed work or any translation of it. To Muslims, the Qur'an is perfect only as revealed in the original Arabic; translations are necessarily deficient because of language differences, the fallibility of translators, and the impossibility of preserving the original's inspired style. Translations are therefore regarded only as commentaries on the Qur'an, or "interpretations of its meaning", not as the Qur'an itself.

[bread_and_roses]

94. Capitalist heaven: "a massive new structural downshift in wages"

I posted this Wednesday, but wanted to re-post it - it's a good summation:

http://www.commondreams.org/headline/2010/11/24-2

Firms See Long-Sought Goal in Sight: Major Pay Cuts

by Roger Bybee

The outlines of a massive new structural downshift in wages are emerging more and more clearly.

The largest wage-cutting wave since the Great Depression has already been sweeping the United States for the last couple years. The recession camouflages a far more insidious and long-lasting corporate strategy: Instead of temporary pay cuts to get through a few tough months, major corporations have something very, very different in mind.

... In each case, the powerful threat of relocating jobs provides the corporations overwhelming leverage to impose their low-wage vision of the future for working people.

This has, of course, been going on for years and years and well documented and referred to here by myself and others. Still, it bears repeating, I think - especially this part:

RESULT: STUNNING INEQUALITY

The statistics on income distribution in the U.S. are staggering in their inequality. According to the latest analysis, in 2005 the top 1 percent earned more income than the bottom 50 percent of Americans—with the top 300,000 earners making more money than the bottom 150 million.

With the continuing imbalance of power between workers and corporations, we can expect the picture to grow only more lopsided until workers discover new modes of effective resistance to unbridled corporate power.

Of course, we don't really need to "discover" "new methods" - there are some old methods that would work quite well. And no doubt if we find the courage to use them, however peacefully, we too will be labeled terrorists, like those activists opposing "fracking" in PA.

[AnneD]

96. I came in too late to recommend.....

but I do give it a big kick. A good read and overdue. Great choice. It is the lack of knowledge that keeps us frightened and easy to control.

Of all the philosophies I have read, those of Sufism attract me the most. It is lumped together with Islam but I always felt it was a kinder more cerebral version. Unfortunately, Sufi are under vicious attack in the Muslim world by the more fundamentalist elements. I have met with many Sufis around the world and have nothing to say but good things.

Let me just say, if it were again WWII and you were a Jew trying to escape-they would be the ones that would hide and feed you. Nuff said.

[bread_and_roses]

97. Thousands March In Dublin Demanding Irish Default, Election

http://online.wsj.com/article/BT-CO-20101127-700922.html

DUBLIN (Dow Jones)--Thousands of people marched through Dublin Saturday, demanding the Irish government default on the country's debts, call an immediate election, and reverse plans for tough budget cuts and financial support from the International Monetary Fund.

Police said about 45,000 took part in the demonstration organized by the Irish Congress of Trade Unions, an umbrella group for unions representing some 800,000 workers across the island of Ireland that wants the government to do more to generate growth and jobs.

Blowing whistles, and to the sound of a marching band and drummers, the protesters chanted "Burn the bondholders" and "They say cut back, we say fight back," as they made their way to a gathering at the city's General Post Office, the site of an uprising in 1916 that served as a catalyst to events that led to Irish independence...

... "We are suffering so the bondholders don't suffer--it's capitalism gone mad,"

"Fight Back!" Would be good to see a little of that here.

[DemReadingDU]

98. Americans have become too complacent

Until, they have no money, no credit, no food, then they will fight back.

[bread_and_roses]

99. now saying 100.000

(entirely possible I misread earlier)

http://www.guardian.co.uk/business/2010/nov/27/ireland-bailout-dublin-protest