Birds and bees

Mandatory bird.

Phila of Bouphonia's Friday Hope.

I guess the Koch brothers didn't buy the right scientist...

Koch-Funded Berkeley Temperature Study Does “Confirm the Reality of Global Warming”

Honeybees and bumblebees. And lighting their hives on fire.

How Japan cleans up after a disaster.

Now they've pissed off the nurses...

Outraged by the arrest of two nurses and a union organizer volunteering at the Occupy Chicago protest over the weekend, National Nurses United is planning a protest at Mayor Rahm Emanuel's office today.

The group, the nation's largest union of registered nurses, is calling on its membership in Chicago to picket City Hall this morning to demand that misdemeanor trespassing charges against the nurses and all of the protesters be dropped.

Do you think they've learned anything? The Iraq war is finally over. And it marks a complete neocon defeat

About time:

Regulator throws lifeline to underwater borrowers

and

'We can't wait': Obama to use executive authority to boost economy as Republicans dither on jobs

And magic! There is no more poverty!

Stupidity and insanity and banksters run amok

Wisconsin Senate hopeful Ron Johnson in all his glory.

Rand Paul.

Teapartiers love Ayn Rand but have no idea who she really was. Sickeningly,

...she became enthralled by a real-life American serial killer, William Edward Hickman, whose gruesome, sadistic dismemberment of 12-year-old girl named Marion Parker in 1927 shocked the nation.

Being rewarded for torture:

A psychologist whose research was used in constructing the US's program to torture terrorism suspects has been granted a $31-million no-bid Army contract to provide "resilience training" to US soldiers.

The Pentagon needs more money:

The latest talking point du jour has been around in one form or another for years. It asks us to forget that A) America spends more on defense than every other major nation combined and B) the Pentagon, whose annual budget is now approaching World War II levels in inflation-adjusted terms, has lost track of trillions of taxpayer dollars. In light of those troubling truths, we are nonetheless urged by Beltway Republicans to focus on the fact that defense spending is "4.9 percent of our gross domestic product, significantly below the average of 6.5 percent since World War II," as a recent Wall Street Journal editorial proclaimed.

That widely circulated article, aimed squarely at grassroots conservatives, was jointly written by three of the most influential Republican think tanks in Washington -- the Heritage Foundation, the American Enterprise Institute and the Foreign Policy Initiative. And like clockwork, the "percentage of GDP" nugget went from their pen to the GOP's well-oiled media machine.

For those who just don't have enough:

A gold and jewel bedazzled version of Monopoly worth $2 million is heading to Wall Street this Friday. That's not a metaphor.

Crafted by master jeweler Sidney Mobell and 22 years in the making, the set features dice with 42-cut diamonds and a photo-etched 18k gold board.

Krugman on the lack of property mortgage documents:

True to form, the Obama administration’s response has been to oppose any action that might upset the banks, like a temporary moratorium on foreclosures while some of the issues are resolved. Instead, it is asking the banks, very nicely, to behave better and clean up their act. I mean, that’s worked so well in the past, right?

The response from the right is, however, even worse. Republicans in Congress are lying low, but conservative commentators like those at The Wall Street Journal’s editorial page have come out dismissing the lack of proper documents as a triviality. In effect, they’re saying that if a bank says it owns your house, we should just take its word. To me, this evokes the days when noblemen felt free to take whatever they wanted, knowing that peasants had no standing in the courts. But then, I suspect that some people regard those as the good old days.

What should be happening? The excesses of the bubble years have created a legal morass, in which property rights are ill defined because nobody has proper documentation. And where no clear property rights exist, it’s the government’s job to create them.

That won’t be easy, but there are good ideas out there. For example, the Center for American Progress has proposed giving mortgage counselors and other public entities the power to modify troubled loans directly, with their judgment standing unless appealed by the mortgage servicer. This would do a lot to clarify matters and help extract us from the morass.

One thing is for sure: What we’re doing now isn’t working. And pretending that things are O.K. won’t convince anyone.

Why can't we bail out the homeowners

Who would then pay off the bank loans and everybody would be happy?

Brave New Foundation Asks 1.3 Million Supporters to Urge Congress to Pass 'Helping Families Save Their Homes' Act

LOS ANGELES - Yesterday, Brave New Foundation asked its email list of 1.3 million people to call their Congressional Representatives and ask them to support H.R. 1106, Rep. John Conyers' new bill authorizing judges to modify home loans in bankruptcy proceedings.

As part of its "Fighting For Our Homes" campaign, Brave New Foundation has released a new online documentary video featuring a former subprime lender speaking anonymously about the mortgage sales industry, describing club promoters and drug dealers being hired and trained to deliberately mislead people into taking out loans they could not afford.

Watch the video: http://www.youtube.com/watch?v=KNBqP5j1FZQ

Over the last several weeks, Brave New Foundation's "Fighting For Our Homes" campaign has collected dozens of stories in text and video of people all over the country who are impacted by the housing meltdown. These stories are aggregated at FightingForOurHomes.com, a website that seeks to put a human face on the foreclosure crisis.

Now, the Fighting For Our Homes campaign is encouraging people to take action in support of struggling homeowners.

Congressman John Conyers, the author of the new bill, was recently interviewed by Brave New Foundation about his legislation in a state-of-the-art newscast that appeared exclusively online: http://www.youtube.com/watch?v=g9GTqpTKddk

Prior to that interview, Rep. Marcy Kaptur from Ohio also spoke to Brave New Foundation about the foreclosure crisis, stating that if not repaired soon, the housing crisis "will crush finance in this country for years to come." See video here: http://www.youtube.com/watch?v=JHl_tXvBmO4&feature=channel_page

Contact:

Nathan Havey
310-204-0448 x231
nhavey@bravenewfoundation.org

Forrest Gump Explains Mortgage Backed Securities

An email making the rounds...

Mortgage Backed Securities are like boxes of chocolates. Criminals on Wall Street stole a few chocolates from the boxes and replaced them with turds. Their criminal buddies at Standard & Poor rated these boxes AAA Investment Grade chocolates. These boxes were then sold all over the world to investors. Eventually somebody bites into a turd and discovers the crime. Suddenly nobody trusts American chocolates anymore worldwide.

Hank Paulson now wants the American taxpayers to buy up and hold all these boxes of turd-infested chocolates for $700 billion dollars until the market for turds returns to normal. Meanwhile, Hank's buddies, the Wall Street criminals who stole all the good chocolates are not being investigated, arrested, or indicted. So far
nothing is back to normal.

Mama always said: "Sniff the chocolates first Forrest".

Fannie and Freddie found not guilty

WASHINGTON — As the economy worsens and Election Day approaches, a conservative campaign that blames the global financial crisis on a government push to make housing more affordable to lower-class Americans has taken off on talk radio and e-mail.

Commentators say that's what triggered the stock market meltdown and the freeze on credit. They've specifically targeted the mortgage finance giants Fannie Mae and Freddie Mac, which the federal government seized on Sept. 6, contending that lending to poor and minority Americans caused Fannie's and Freddie's financial problems.

Federal housing data reveal that the charges aren't true, and that the private sector, not the government or government-backed companies, was behind the soaring subprime lending at the core of the crisis.

Try pointing the finger somewhere else, like at yourselves, guys. Blaming the victim is not going to work.

Gaffe number one...

Tell us, Governor Palin, what are the functions of Freddie Mac and Fannie Mae?

Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers."

Hello?

Economists and analysts pounced on the misstatement, which came before the government had spent funds baling the two entities out, saying it demonstrated a lack of understanding about one of the key economic issues likely to face the next administration.

"You would like to think that someone who is going to be vice president and conceivable president would know what Fannie and Freddie do," said Dean Baker, co-director of the Center for Economic and Policy Research. "These are huge institutions and they are absolutely central to our country's mortgage debt. To not have a clue what they do doesn't speak well for her, I'd say."

Added Andrew Jakabovics, an economic analysts for the progressive think tank, Center for American Progress: "It is somewhat nonsensical because up until yesterday there was sort of no public funding there. Even today they haven't drawn down any of the credit line they have given to Treasury. 'Gotten too big and too expensive' are two separate things. The too big has been a conservative mantra for a while and there is something to be said of that in that they hold about half of the mortgage guarantees that are out there. And in the last year they have been responsible for roughly 80 percent out there. The 'too expensive to tax payers,' I don't know where that comes from."

Even conservative analysts acknowledged that the statement simply did not hold true.

Delete! Delete!

What is that whistling sound?

Via Sorghum Crow at Sorghum Crow's General Store, The Telegraph:

Saudi Arabia has refused to cut interest rates in lockstep with the US Federal Reserve for the first time, signalling that the oil-rich Gulf kingdom is preparing to break the dollar currency peg in a move that risks setting off a stampede out of the dollar across the Middle East.

[snip]

"This is a very dangerous situation for the dollar," said Hans Redeker, currency chief at BNP Paribas.

"Saudi Arabia has $800bn (£400bn) in their future generation fund, and the entire region has $3,500bn under management. They face an inflationary threat and do not want to import an interest rate policy set for the recessionary conditions in the United States," he said.

The Saudi central bank said today that it would take "appropriate measures" to halt huge capital inflows into the country, but analysts say this policy is unsustainable and will inevitably lead to the collapse of the dollar peg.

As a close ally of the US, Riyadh has so far tried to stick to the peg, but the link is now destabilising its own economy.

[snip]

There is now a growing danger that global investors will start to shun the US bond markets. The latest US government data on foreign holdings released this week show a collapse in purchases of US bonds from $97bn to just $19bn in July, with outright net sales of US Treasuries.

The danger is that this could now accelerate as the yield gap between the United States and the rest of the world narrows rapidly, leaving America starved of foreign capital flows needed to cover its current account deficit - expected to reach $850bn this year, or 6.5pc of GDP.

And also from The Telegraph, China gets in the act:

The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

[snip]

Two officials at leading Communist Party bodies have given interviews in recent days warning - for the first time - that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

Shifts in Chinese policy are often announced through key think tanks and academies.

Described as China's "nuclear option" in the state media, such action could trigger a dollar crash at a time when the US currency is already breaking down through historic support levels.

It would also cause a spike in US bond yields, hammering the US housing market and perhaps tipping the economy into recession. It is estimated that China holds over $900bn in a mix of US bonds.

Via JJ at Unrepentant Old Hippie, the Canadian 'loonie' dollar:

TORONTO - Boosted by high commodity prices and a weakening U.S. dollar, the loonie reached parity with the greenback Thursday for the first time in nearly 31 years, promising to boost the energy and import sectors and give consumers cheaper vacations but spelling more trouble for Canada's industrial heartland.

The loonie, which has been gaining on its American counterpart since bottoming out below 62 cents in early 2002, has recently been on a spectacular run, up from 95 cents at the start of September and from under 90 cents last spring.

And via Atrios at Eschaton:

Losses from sub-prime mortgages have far exceeded "even the most pessimistic estimates", US Federal Reserve chairman Ben Bernanke has said.

His comments to a US finance committee come two days after the Fed cut base interest rates to 4.75% from 5.25%.

[snip]

Mr Bernanke told the committee that US mortgage woes were set to continue - especially with adjustable rate mortgages (ARMs).

Proceedings for about 320,000 foreclosures - or repossessions - were begun in each of the first two quarters of 2007 he said, against an average of 225,000 per quarter in the past six years.

"With house prices still soft and many borrowers of recent-vintage sub-prime ARMs still facing their first interest rate resets, delinquencies and foreclosure initiations in this class of mortgages are likely to rise further," he said.

Mr Bernanke added that it was difficult to be precise about how many repossessions would take place, but he said that in normal circumstances about half of homeowners who were given repossession notices ended up losing their homes.

"That ratio may turn out to be higher in coming quarters because the proportion of sub-prime borrowers, who have weaker financial conditions than prime borrowers, is higher," Mr Bernanke said.

Do we start stuffing our mattresses with Euros? Or do we start burying jars of gold coin about our backyards?

Can anyone tell us how much trouble we are in?