http://news.bbc.co.uk/2/hi/americas/7511426.stm
enjoy.
peace.
Thursday, July 17, 2008
Tuesday, July 15, 2008
"take a deep breath"?!
The New York Times
July 16, 2008
Bernanke Is Pessimistic, but Bush Urges a ‘Deep Breath’
By STEVEN R. WEISMAN
WASHINGTON — Warning of the risks of a further slowdown and higher inflation, Ben S. Bernanke, chairman of the Federal Reserve, offered a gloomy assessment of the economy on Tuesday as President Bush, speaking a few blocks away, urged Americans to have faith in the country’s financial foundation.
In testimony before the Senate Banking Committee, Mr. Bernanke avoided the word “recession” in characterizing the current economy, noting instead that consumer spending and exports were keeping growth “at a sluggish pace” while the housing sector “continues to weaken.”
He added that spending for personal goods had “advanced at a modest pace so far this year, generally holding up somewhat better than might have been expected given the array of forces weighing on household finances and attitudes.”
While the risks to the overall economy were still “skewed to the downside,” he said, inflation “seems likely to move temporarily higher in the near term.”
Even as Mr. Bernanke fielded questions from senators, a different view of the economy emanated from the White House.
President Bush, speaking at a White House news conference that coincided with the Fed chair’s testimony, urged Americans to “take a deep breath.”
“My hope is — is that people take a deep breath and realize that their deposits are protected by our government,” the president said. He added that economic growth “was not the growth we’d like” but expressed confidence that the country would overcome “a time of uncertainty.” The nation’s troubled financial system is "basically sound," he added.
The president said that the economy and the pillars on which it rests were “basically sound.” And he dismissed questions about reports that wholesale prices rose 1.8 percent in June, the fastest 12-month inflation rate in more than a quarter century.
Mr. Bernanke’s mixed assessment of the economy appeared to signal that the Fed would not be lowering interest rates further in spite of the economic sluggishness, as it did earlier this year, out of concern that lower rates would spur more inflation. In June, the Fed declined to lower rates and instead suggested it might raise rates later in the year.
In his testimony, he was especially pessimistic about any easing of energy prices, dismissing suggestions that they were being driven by speculation in futures markets. Instead, he said high energy costs reflected the markets’ recognition that demand was outstripping supplies.
“Over the past several years, the world economy has expanded at its fastest pace in decades, leading to substantial increases in the demand for oil,” Mr. Bernanke said. “On the supply side, despite sharp increases in prices, the production of oil has risen only slightly in the past few years.”
President Bush’s remarks, and Mr. Bernanke’s testimony, came at an unusually turbulent time in financial markets, since it followed on the heels of the Fed’s announcement that it would temporarily open its discount window to the two troubled mortgage giants, Fannie Mae and Freddie Mac.
The actions to stabilize Fannie and Freddie occurred over the weekend as the Treasury secretary, Henry M. Paulson Jr., also called for Congress to approve emergency legislation giving the federal government power to inject billions of federal funds through investments and loans.
The actions announced Sunday echoed similar actions in mid-March, when the Fed moved to avert a financial collapse of the investment bank Bear Stearns by offering an emergency loan to facilitate its sale to JPMorgan Chase. At the same time, the Fed set up emergency lending facilities for major investment banks hit by the credit crunch.
“These steps to address liquidity pressures coupled with monetary easing seem to have been helpful in mitigating some market strains,” Mr. Bernanke said. But despite the “positive effects” of the Fed’s actions, he said that the problems of unstable markets continued because of “declining house prices, a softening labor market and rising prices of oil, food and some other commodities.”
After Mr. Bernanke’s testimony, Mr. Paulson and the chairman of the Securities and Exchange Commission, Christopher Cox, took center stage.
In prepared remarks, Mr. Paulson focused on the government’s efforts to assist Fannie Mae and Freddie Mac, complementing comments earlier by Mr. Bush, who urged Congress to pass housing legislation that would modernize federal regulatory procedures while stabilizing the two companies.
Continued confidence in the two companies “is important to maintaining financial system and market stability,” Mr. Paulson said. While lawmakers have said that they would attach the bailout plan to housing legislation, the timing was uncertain.
Representative Barney Frank, Democrat of Massachusetts and the chairman of the House Financial Services Committee, said Monday that a bill could be sent to President Bush by week’s end. But on Tuesday, Congressional Democrats said it would take at least until early next week for the House to act, citing resistance among some Republicans to the administration’s rescue plan for Fannie and Freddie.
In his testimony Tuesday, Mr. Paulson said Fannie and Freddie “are central to the availability of housing finance, which will determine the pace at which we emerge from this housing correction.”
“Our plan is aimed at supporting the stability of financial markets,” he said, “not just these two enterprises. This is consistent with Treasury’s mission to promote the market stability, orderliness and liquidity necessary to support our economy.”
David Stout contributed reporting.
Copyright 2008 The New York Times Company
July 16, 2008
Bernanke Is Pessimistic, but Bush Urges a ‘Deep Breath’
By STEVEN R. WEISMAN
WASHINGTON — Warning of the risks of a further slowdown and higher inflation, Ben S. Bernanke, chairman of the Federal Reserve, offered a gloomy assessment of the economy on Tuesday as President Bush, speaking a few blocks away, urged Americans to have faith in the country’s financial foundation.
In testimony before the Senate Banking Committee, Mr. Bernanke avoided the word “recession” in characterizing the current economy, noting instead that consumer spending and exports were keeping growth “at a sluggish pace” while the housing sector “continues to weaken.”
He added that spending for personal goods had “advanced at a modest pace so far this year, generally holding up somewhat better than might have been expected given the array of forces weighing on household finances and attitudes.”
While the risks to the overall economy were still “skewed to the downside,” he said, inflation “seems likely to move temporarily higher in the near term.”
Even as Mr. Bernanke fielded questions from senators, a different view of the economy emanated from the White House.
President Bush, speaking at a White House news conference that coincided with the Fed chair’s testimony, urged Americans to “take a deep breath.”
“My hope is — is that people take a deep breath and realize that their deposits are protected by our government,” the president said. He added that economic growth “was not the growth we’d like” but expressed confidence that the country would overcome “a time of uncertainty.” The nation’s troubled financial system is "basically sound," he added.
The president said that the economy and the pillars on which it rests were “basically sound.” And he dismissed questions about reports that wholesale prices rose 1.8 percent in June, the fastest 12-month inflation rate in more than a quarter century.
Mr. Bernanke’s mixed assessment of the economy appeared to signal that the Fed would not be lowering interest rates further in spite of the economic sluggishness, as it did earlier this year, out of concern that lower rates would spur more inflation. In June, the Fed declined to lower rates and instead suggested it might raise rates later in the year.
In his testimony, he was especially pessimistic about any easing of energy prices, dismissing suggestions that they were being driven by speculation in futures markets. Instead, he said high energy costs reflected the markets’ recognition that demand was outstripping supplies.
“Over the past several years, the world economy has expanded at its fastest pace in decades, leading to substantial increases in the demand for oil,” Mr. Bernanke said. “On the supply side, despite sharp increases in prices, the production of oil has risen only slightly in the past few years.”
President Bush’s remarks, and Mr. Bernanke’s testimony, came at an unusually turbulent time in financial markets, since it followed on the heels of the Fed’s announcement that it would temporarily open its discount window to the two troubled mortgage giants, Fannie Mae and Freddie Mac.
The actions to stabilize Fannie and Freddie occurred over the weekend as the Treasury secretary, Henry M. Paulson Jr., also called for Congress to approve emergency legislation giving the federal government power to inject billions of federal funds through investments and loans.
The actions announced Sunday echoed similar actions in mid-March, when the Fed moved to avert a financial collapse of the investment bank Bear Stearns by offering an emergency loan to facilitate its sale to JPMorgan Chase. At the same time, the Fed set up emergency lending facilities for major investment banks hit by the credit crunch.
“These steps to address liquidity pressures coupled with monetary easing seem to have been helpful in mitigating some market strains,” Mr. Bernanke said. But despite the “positive effects” of the Fed’s actions, he said that the problems of unstable markets continued because of “declining house prices, a softening labor market and rising prices of oil, food and some other commodities.”
After Mr. Bernanke’s testimony, Mr. Paulson and the chairman of the Securities and Exchange Commission, Christopher Cox, took center stage.
In prepared remarks, Mr. Paulson focused on the government’s efforts to assist Fannie Mae and Freddie Mac, complementing comments earlier by Mr. Bush, who urged Congress to pass housing legislation that would modernize federal regulatory procedures while stabilizing the two companies.
Continued confidence in the two companies “is important to maintaining financial system and market stability,” Mr. Paulson said. While lawmakers have said that they would attach the bailout plan to housing legislation, the timing was uncertain.
Representative Barney Frank, Democrat of Massachusetts and the chairman of the House Financial Services Committee, said Monday that a bill could be sent to President Bush by week’s end. But on Tuesday, Congressional Democrats said it would take at least until early next week for the House to act, citing resistance among some Republicans to the administration’s rescue plan for Fannie and Freddie.
In his testimony Tuesday, Mr. Paulson said Fannie and Freddie “are central to the availability of housing finance, which will determine the pace at which we emerge from this housing correction.”
“Our plan is aimed at supporting the stability of financial markets,” he said, “not just these two enterprises. This is consistent with Treasury’s mission to promote the market stability, orderliness and liquidity necessary to support our economy.”
David Stout contributed reporting.
Copyright 2008 The New York Times Company
Sunday, July 13, 2008
Friday, July 11, 2008
Sunday, July 06, 2008
Sunday, June 29, 2008
Wednesday, June 25, 2008
today's quote
An intellectual is a person who has discovered something more interesting than sex.
- Aldous Huxley
- Aldous Huxley
Friday, June 20, 2008
what would you do?
June 20, 2008
Official recommends Manson follower stay in prison
The Associated Press
The state director of adult prisons is recommending that former Charles Manson follower and convicted murderer Susan Atkins be denied a compassionate release because of terminal illness.
A prison spokeswoman says director Suzan Hubbard made the decision Wednesday.
Officials at the California Institution for Women where the 60-year-old Atkins was held for decades before a recent move to the hospital to treat her brain cancer had recommended that she be released to die in the care of her family.
Hubbard’s recommendation is only advisory.
The Board of Parole Hearings must decide whether to take up Atkins’ case, and her original sentencing court in Los Angeles County would make the final decision on her release.
Atkins confessed to killing pregnant actress Sharon Tate during a murderous rampage with other Manson followers in 1969.
Official recommends Manson follower stay in prison
The Associated Press
The state director of adult prisons is recommending that former Charles Manson follower and convicted murderer Susan Atkins be denied a compassionate release because of terminal illness.
A prison spokeswoman says director Suzan Hubbard made the decision Wednesday.
Officials at the California Institution for Women where the 60-year-old Atkins was held for decades before a recent move to the hospital to treat her brain cancer had recommended that she be released to die in the care of her family.
Hubbard’s recommendation is only advisory.
The Board of Parole Hearings must decide whether to take up Atkins’ case, and her original sentencing court in Los Angeles County would make the final decision on her release.
Atkins confessed to killing pregnant actress Sharon Tate during a murderous rampage with other Manson followers in 1969.
Quote of the day
Do not condemn the judgement of another because it differs from your own.
You may both be wrong.
- Dandemis
You may both be wrong.
- Dandemis
Monday, June 16, 2008
Friday, June 13, 2008
Quote of the day
We are continually faced with a series of great opportunities brilliantly disguised as insoluble problems.
- John W. Gardner
so true!
- John W. Gardner
so true!
Thursday, June 12, 2008
Tuesday, June 10, 2008
another interesting article...
BBC uncovers lost Iraq billions
By Jane Corbin
BBC News
A BBC investigation estimates that around $23bn (£11.75bn) may have been lost, stolen or just not properly accounted for in Iraq.
For the first time, the extent to which some private contractors have profited from the conflict and rebuilding has been researched by the BBC's Panorama using US and Iraqi government sources.
A US gagging order is preventing discussion of the allegations.
The order applies to 70 court cases against some of the top US companies.
War profiteering
While George Bush remains in the White House, it is unlikely the gagging orders will be lifted.
To date, no major US contractor faces trial for fraud or mismanagement in Iraq.
The president's Democrat opponents are keeping up the pressure over war profiteering in Iraq.
Henry Waxman who chairs the House Committee on Oversight and Government Reform said: "The money that's gone into waste, fraud and abuse under these contracts is just so outrageous, its egregious.
"It may well turn out to be the largest war profiteering in history."
In the run-up to the invasion one of the most senior officials in charge of procurement in the Pentagon objected to a contract potentially worth seven billion that was given to Halliburton, a Texan company, which used to be run by Dick Cheney before he became vice-president.
Unusually only Halliburton got to bid - and won.
Missing billions
The search for the missing billions also led the programme to a house in Acton in West London where Hazem Shalaan lived until he was appointed to the new Iraqi government as minister of defence in 2004.
He and his associates siphoned an estimated $1.2 billion out of the ministry.
They bought old military equipment from Poland but claimed for top class weapons.
Meanwhile they diverted money into their own accounts.
Judge Radhi al-Radhi of Iraq's Commission for Public Integrity investigated.
He said: "I believe these people are criminals.
"They failed to rebuild the Ministry of Defence , and as a result the violence and the bloodshed went on and on - the murder of Iraqis and foreigners continues and they bear responsibility."
Mr Shalaan was sentenced to two jail terms but he fled the country.
He said he was innocent and that it was all a plot against him by pro-Iranian MPs in the government.
There is an Interpol arrest out for him but he is on the run - using a private jet to move around the globe.
He stills owns commercial properties in the Marble Arch area of London.
By Jane Corbin
BBC News
A BBC investigation estimates that around $23bn (£11.75bn) may have been lost, stolen or just not properly accounted for in Iraq.
For the first time, the extent to which some private contractors have profited from the conflict and rebuilding has been researched by the BBC's Panorama using US and Iraqi government sources.
A US gagging order is preventing discussion of the allegations.
The order applies to 70 court cases against some of the top US companies.
War profiteering
While George Bush remains in the White House, it is unlikely the gagging orders will be lifted.
To date, no major US contractor faces trial for fraud or mismanagement in Iraq.
The president's Democrat opponents are keeping up the pressure over war profiteering in Iraq.
Henry Waxman who chairs the House Committee on Oversight and Government Reform said: "The money that's gone into waste, fraud and abuse under these contracts is just so outrageous, its egregious.
"It may well turn out to be the largest war profiteering in history."
In the run-up to the invasion one of the most senior officials in charge of procurement in the Pentagon objected to a contract potentially worth seven billion that was given to Halliburton, a Texan company, which used to be run by Dick Cheney before he became vice-president.
Unusually only Halliburton got to bid - and won.
Missing billions
The search for the missing billions also led the programme to a house in Acton in West London where Hazem Shalaan lived until he was appointed to the new Iraqi government as minister of defence in 2004.
He and his associates siphoned an estimated $1.2 billion out of the ministry.
They bought old military equipment from Poland but claimed for top class weapons.
Meanwhile they diverted money into their own accounts.
Judge Radhi al-Radhi of Iraq's Commission for Public Integrity investigated.
He said: "I believe these people are criminals.
"They failed to rebuild the Ministry of Defence , and as a result the violence and the bloodshed went on and on - the murder of Iraqis and foreigners continues and they bear responsibility."
Mr Shalaan was sentenced to two jail terms but he fled the country.
He said he was innocent and that it was all a plot against him by pro-Iranian MPs in the government.
There is an Interpol arrest out for him but he is on the run - using a private jet to move around the globe.
He stills owns commercial properties in the Marble Arch area of London.
interesting article...
"Republicans block extra taxes on oil companies
By H. JOSEF HEBERT, Associated Press Writer
2 hours, 4 minutes ago
Senate Republicans blocked a proposal Tuesday to tax the windfall profits of the largest oil companies, despite pleas by Democratic leaders to use the measure to address
America's anger over $4 a gallon gasoline.
The Democratic energy package would have imposed a tax on any "unreasonable" profits of the five largest U.S. oil companies and given the federal government more power to
address oil market speculation that the bill's supporters argue has added to the crude oil price surge.
"Americans are furious about what's going on," declared Sen. Byron Dorgan, D-N.D.,
and want Congress to do something about oil company profits and "an orgy of speculation"
on oil markets.
But Republicans argued the Democratic proposal focusing on new oil industry taxes is not
the answer to the country's energy problems.
"The American people are clamoring for relief at the pump," said Sen. Pete Domenici, R-N.M., but if taxes are increased on the oil companies "they will get exactly what they don't want. The bill will raise taxes, increase imports."
The Democrats failed, 51-43, to get the 60 votes needed to overcome a GOP filibuster and bring the energy package up for consideration.
Separately, Democrats also failed to get Republican support for a proposal to extend tax breaks for wind, solar and other alternative energy development, and for the promotion of energy efficiency and conservation. The tax breaks have either expired or are scheduled to end this year.
The tax provisions were included in a broader $50 billion tax measure blocked by a GOP filibuster threat. A vote to take up the measure was 50-44, short of the 60 votes needed.
The windfall profits bill would have imposed a 25 percent tax on profits over what would be determined "reasonable" when compared to profits several years ago. The oil companies could have avoided the tax if they invested the money in alternative energy projects or refinery expansion. It also would have rescinded oil company tax breaks — worth $17 billion over the next 10 years — with the revenue to be used for tax incentives to producers of wind, solar
and other alternative energy sources as well as for energy conservation.
The legislation also would:
_Require traders to put up more collateral in the energy futures markets and open the way for federal regulation of traders who are based in the United States but use foreign trading platforms. The measures are designed to reduce market speculation.
_Make oil and gas price gouging a federal crime, with stiff penalties of up to $5 million
during a presidentially declared energy emergency.
_Authorize the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are
hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."
"Republicans by and large believe that the solution to this problem, in part, is to increase domestic production," McConnell said.
A GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip
of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states
to opt out of the national moratorium that has been in effect for a quarter century
against oil and gas drilling in more than 80 percent of the country's coastal waters."
By H. JOSEF HEBERT, Associated Press Writer
2 hours, 4 minutes ago
Senate Republicans blocked a proposal Tuesday to tax the windfall profits of the largest oil companies, despite pleas by Democratic leaders to use the measure to address
America's anger over $4 a gallon gasoline.
The Democratic energy package would have imposed a tax on any "unreasonable" profits of the five largest U.S. oil companies and given the federal government more power to
address oil market speculation that the bill's supporters argue has added to the crude oil price surge.
"Americans are furious about what's going on," declared Sen. Byron Dorgan, D-N.D.,
and want Congress to do something about oil company profits and "an orgy of speculation"
on oil markets.
But Republicans argued the Democratic proposal focusing on new oil industry taxes is not
the answer to the country's energy problems.
"The American people are clamoring for relief at the pump," said Sen. Pete Domenici, R-N.M., but if taxes are increased on the oil companies "they will get exactly what they don't want. The bill will raise taxes, increase imports."
The Democrats failed, 51-43, to get the 60 votes needed to overcome a GOP filibuster and bring the energy package up for consideration.
Separately, Democrats also failed to get Republican support for a proposal to extend tax breaks for wind, solar and other alternative energy development, and for the promotion of energy efficiency and conservation. The tax breaks have either expired or are scheduled to end this year.
The tax provisions were included in a broader $50 billion tax measure blocked by a GOP filibuster threat. A vote to take up the measure was 50-44, short of the 60 votes needed.
The windfall profits bill would have imposed a 25 percent tax on profits over what would be determined "reasonable" when compared to profits several years ago. The oil companies could have avoided the tax if they invested the money in alternative energy projects or refinery expansion. It also would have rescinded oil company tax breaks — worth $17 billion over the next 10 years — with the revenue to be used for tax incentives to producers of wind, solar
and other alternative energy sources as well as for energy conservation.
The legislation also would:
_Require traders to put up more collateral in the energy futures markets and open the way for federal regulation of traders who are based in the United States but use foreign trading platforms. The measures are designed to reduce market speculation.
_Make oil and gas price gouging a federal crime, with stiff penalties of up to $5 million
during a presidentially declared energy emergency.
_Authorize the Justice Department to bring charges of price fixing against countries that belong to the OPEC oil cartel.
Republican leader Mitch McConnell of Kentucky has acknowledged that Americans are
hurting from the high energy costs but strongly opposes the Democrats' response and has ridiculed those who "think we can tax our way out of this problem."
"Republicans by and large believe that the solution to this problem, in part, is to increase domestic production," McConnell said.
A GOP energy plan, rejected by the Senate last month, calls for opening a coastal strip
of the Arctic National Wildlife Refuge in Alaska to oil development and to allow states
to opt out of the national moratorium that has been in effect for a quarter century
against oil and gas drilling in more than 80 percent of the country's coastal waters."
Monday, June 09, 2008
Quote of the day
There is still a difference between something and nothing, but it is purely geometrical and there is nothing behind the geometry.
- Martin Gardner
- Martin Gardner
Friday, June 06, 2008
Thursday, June 05, 2008
Quote of the day
If people never did silly things, nothing intelligent would ever get done.
- Ludwig Wittgenstein
- Ludwig Wittgenstein
Tuesday, June 03, 2008
Quotes of the day
Public speaking is the art of diluting a two-minute idea with a two-hour vocabulary.
- Evan Esar
Never believe anything until it has been officially denied.
- Claud Cockburn
- Evan Esar
Never believe anything until it has been officially denied.
- Claud Cockburn
Monday, June 02, 2008
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