Thursday, December 25, 2008
How to be Governor Paterson and keep friends – cont’d
LOOKING AHEAD by Wally Dobelis
Life for Governor David Paterson is getting harder, with the pressures of out-of-state –worthies for the appointment of Caroline Kennedy to replace Sen. Clinton. Ted Kennedy, the Senator from MA, is pulling all stops in finding support – labor unions, his own political staff, the US Senate Majority Leader, Harry Reid of NV. Fortunately the Governor has until nearly January 20 to let things straighten out, before the appointment.
One cannot but feel concerned about and, actually, sorry for Caroline Kennedy, who looks somewhat timid and speaks verbatim, as though rehearsed, as seen in the few announcements of her Senatorial candidacy noted on TV. She is unwilling to be interviewed, all of the above presenting major difficulties for a reticent person who will have to address individuals and make quid-pro-quo alliances. The little girl in the White House, who lived through the assassinations of her father and her uncle Robert, grew up in relative privacy in New York with her mother and her husband, became herself subject of an IRA car bomb at 18 while an intern studying art at Sotheby’s in London (it blew up the car of her host, a conservative MP, killing a passer-by; she herself was saved by being late for a departure). In 1995 she also experienced the mysterious airplane deaths of her brother JFK Jr., his wife and her sister, as well as other problems that seem to befall the Kennedy family.
Zealously protecting the privacy of her marriage (she is Mrs. Edwin Schlossberg, since 1988, and mother of Rose, 20, Tatiana , 18 and John, 15), she stepped back into limelight with the Obama campaign, undertaken because she felt the reformer’s similarities with her father. She appears to have been drawn into claiming Robert Kennedy’s former Senate seat by Ted Kennedy, the senior Senator from Massachusetts and a revered senior statesman, who has lived down his own histories by 40 years of assiduous liberal advocacies and forming of collaborative efforts with other parties. The reasons for her return to limelight might be a genuine desire for Democratic reform, her personal need for fulfillment at 51, and, most likely, her uncle’s quest for continuation of the Kennedy dynasty, including a shot for the Presidency – since the several politically active cousins’ careers (Kathleen K. Townsend was lieutenant governor to 2002 in MD, Joseph Kennedy II was a Congressman in MA until 1999, Patrick J. Kennedy is a Congressman from RI, and a foreign-born in-law is governor in CA) have heavy default lines.
This power play has overshadowed the other declared experienced candidates with real qualifications for the Clinton seat – our own 74th Assembly District’s strong candidate, Congresswoman Carolyn Mahoney, Kirsten Gillibrand who holds the Congressional seat for the Albany district, Tom Suozzi, Nassau County executive and 2006 candidate for Governor, and capable and experienced Attorney-General Andrew Cuomo, whose position is further complicated by the fact that his ex-wife Kerry Kennedy is an active supporter of Caroline Kennedy.
Meanwhile, work towards recovery is complicated by three Democratic troublemakers, senators who want jobs and concessions (e.g. no gay marriage legislation to be considered) before voting Democratic in choosing a Senate Majority Leader. In 1965 a similar situation led Gov. Rockefeller to ask the Republican senators to vote for a Democrat (it was Joseph Zaretzki) to stop the deadlock, NYTimes tells us. A hint? What would it cost Gov. Paterson to reach such a compromise?
It would cost, lots. As to work towards recovery, Gov. Paterson has to close a $15.4 billion deficit in the $121.1 billion state budget for the balance of the fiscal year that ends March 31, 2009, and the next fiscal year, the largest deficit in the state’s history, due to the shrunken economy and the loss of Wall Street’s contribution. He projects a $9 billion spending cut and increased taxes. New York City will be hurt the most, through a loss of $600 million general purpose aid, plus a large portion of the state’s $700 million in education aid, and will require increased SUNY and CUNY tuitions. Projected cuts in aid for health care providers alone will be $1.1 billion. Other areas of cuts include closing 13 prison camps, eliminating property-tax rebate checks, and merging some seven small state agencies.
Tax increases include 18% levy on sugary soft drinks, 5% on car rentals, doubling and more of taxes on alcoholic drinks, upping the tax revenue on gas, cable and satellite TV service, cigars, licenses for barbers and other cosmetologists and more small businesses – and an i-tax on downloads!
As expected, unions and hospitals and the Republican Majority leader find the education and health cost reductions excessive, and the tax increases harsh. Only Sheldon Silver, the Assembly Speaker, pointing out that education and health constitute half of the budget, has asked the constituency to face the facts that these are the areas where savings need be taken. More anon.
Wally Dobelis and the T&V staff wish all our reader families Happy Holidays and good health.
Life for Governor David Paterson is getting harder, with the pressures of out-of-state –worthies for the appointment of Caroline Kennedy to replace Sen. Clinton. Ted Kennedy, the Senator from MA, is pulling all stops in finding support – labor unions, his own political staff, the US Senate Majority Leader, Harry Reid of NV. Fortunately the Governor has until nearly January 20 to let things straighten out, before the appointment.
One cannot but feel concerned about and, actually, sorry for Caroline Kennedy, who looks somewhat timid and speaks verbatim, as though rehearsed, as seen in the few announcements of her Senatorial candidacy noted on TV. She is unwilling to be interviewed, all of the above presenting major difficulties for a reticent person who will have to address individuals and make quid-pro-quo alliances. The little girl in the White House, who lived through the assassinations of her father and her uncle Robert, grew up in relative privacy in New York with her mother and her husband, became herself subject of an IRA car bomb at 18 while an intern studying art at Sotheby’s in London (it blew up the car of her host, a conservative MP, killing a passer-by; she herself was saved by being late for a departure). In 1995 she also experienced the mysterious airplane deaths of her brother JFK Jr., his wife and her sister, as well as other problems that seem to befall the Kennedy family.
Zealously protecting the privacy of her marriage (she is Mrs. Edwin Schlossberg, since 1988, and mother of Rose, 20, Tatiana , 18 and John, 15), she stepped back into limelight with the Obama campaign, undertaken because she felt the reformer’s similarities with her father. She appears to have been drawn into claiming Robert Kennedy’s former Senate seat by Ted Kennedy, the senior Senator from Massachusetts and a revered senior statesman, who has lived down his own histories by 40 years of assiduous liberal advocacies and forming of collaborative efforts with other parties. The reasons for her return to limelight might be a genuine desire for Democratic reform, her personal need for fulfillment at 51, and, most likely, her uncle’s quest for continuation of the Kennedy dynasty, including a shot for the Presidency – since the several politically active cousins’ careers (Kathleen K. Townsend was lieutenant governor to 2002 in MD, Joseph Kennedy II was a Congressman in MA until 1999, Patrick J. Kennedy is a Congressman from RI, and a foreign-born in-law is governor in CA) have heavy default lines.
This power play has overshadowed the other declared experienced candidates with real qualifications for the Clinton seat – our own 74th Assembly District’s strong candidate, Congresswoman Carolyn Mahoney, Kirsten Gillibrand who holds the Congressional seat for the Albany district, Tom Suozzi, Nassau County executive and 2006 candidate for Governor, and capable and experienced Attorney-General Andrew Cuomo, whose position is further complicated by the fact that his ex-wife Kerry Kennedy is an active supporter of Caroline Kennedy.
Meanwhile, work towards recovery is complicated by three Democratic troublemakers, senators who want jobs and concessions (e.g. no gay marriage legislation to be considered) before voting Democratic in choosing a Senate Majority Leader. In 1965 a similar situation led Gov. Rockefeller to ask the Republican senators to vote for a Democrat (it was Joseph Zaretzki) to stop the deadlock, NYTimes tells us. A hint? What would it cost Gov. Paterson to reach such a compromise?
It would cost, lots. As to work towards recovery, Gov. Paterson has to close a $15.4 billion deficit in the $121.1 billion state budget for the balance of the fiscal year that ends March 31, 2009, and the next fiscal year, the largest deficit in the state’s history, due to the shrunken economy and the loss of Wall Street’s contribution. He projects a $9 billion spending cut and increased taxes. New York City will be hurt the most, through a loss of $600 million general purpose aid, plus a large portion of the state’s $700 million in education aid, and will require increased SUNY and CUNY tuitions. Projected cuts in aid for health care providers alone will be $1.1 billion. Other areas of cuts include closing 13 prison camps, eliminating property-tax rebate checks, and merging some seven small state agencies.
Tax increases include 18% levy on sugary soft drinks, 5% on car rentals, doubling and more of taxes on alcoholic drinks, upping the tax revenue on gas, cable and satellite TV service, cigars, licenses for barbers and other cosmetologists and more small businesses – and an i-tax on downloads!
As expected, unions and hospitals and the Republican Majority leader find the education and health cost reductions excessive, and the tax increases harsh. Only Sheldon Silver, the Assembly Speaker, pointing out that education and health constitute half of the budget, has asked the constituency to face the facts that these are the areas where savings need be taken. More anon.
Wally Dobelis and the T&V staff wish all our reader families Happy Holidays and good health.
Labels: David Paterson
Wednesday, December 17, 2008
US Army visits at Brotherhood Synagogue
LOOKING AHEAD by Wally Dobelis
This is about our neighbors, the US Army. Just up from Baruch College, at 26th Street and Lexington Ave is the Armory serving as the Fighting 69th National Guard Infantry Regiment headquarters, As part of their Synaplex Shabbat neighborhood services the Brotherhood Synagogue invited one of their company commanders, 1st Sgt Troy J. Haley and his staff members to talk about the impact of the Iraq and Afghanistan wars on the National Guard, and on our neighborhood.
Troy Haley, 1st Sgt, age 39, was uniquely qualified to tell the tale of events, expectations, motivations and terrors in a volunteer professional military life. An archetypal military man, the young Californian became tired of family fruit farming and 19 years ago joined the Marines. He learned to swim the marines way, by repeated immersions (the Marines are part of the Navy), then went on to serve in the dry desert – first in the gulf war, then in Somalia, for Operation Restore Hope, moving on to embassy guard in Chad, then in the Netherlands. Joining the National Guard in 1996 as an Intelligence Analyst, he was selected in 2000 to be a full-time National Guard trainer in Little Rock Arkansas, to train 5,000 National Guard soldiers from across the US. In 2004 he joined the Fighting 69th and served in Iraq, protecting the vital and frequently attacked Route Irish, between the airport and Baghdad (research indicates this to be the most dangerous road in the world, all 12 kilometers of it). In 2007 he was moved back to Manhattan, to serve as the 69th’s Operations Sergeant, then 1st Sgt of its largest company.
We were given glimpses of the modern army’s fast moving assignments and opportunities – he had a colleague who had served in the Army, Air Force, Navy and the Marines, all within less than two decades- with a tolerance for goofy training methods, such as learning to swim by having to jump in the water or else – confirming that the military of Mister Roberts, Catch 22 and even Captain Queeg may be alive and well. However, to get a taste of current day military attitudes, the visitors, not being an overly book-reading lot, recommended movies – We Were Soldiers Together and A Band of Brothers - and we learned a bit about a significant change in attitudes.
One is a Vietnam War movie and the other a WWII miniseries, but the heroes are similar, commanding officers who promise to stay with their men and manage to keep them together and save lives. The emphasis in the volunteer army has changed to the positive. Moreover, while military career life may tend to resemble business career path, with employment changes, the risk-taking involves signing on for more physical danger, and the moving factors, besides the material ones, embrace the feelings for the country and for honor. It comes through, in this materialistic age, in spite of the rigors of toll of Iraq service that the narrator fully recognized, in terms of personal psyche, family problems, kids growing without a parent’s presence, all that without even mentioning threat death. Fortunately, one can quit and resign from this volunteer army, at the end of a tour.
To the question about resumption of draft, to relieve the overused National Guard, the answer seemed to favor a dedicated military, by choice, rather than impressed troops. The points raised involved pride of service, national need, of respect (not always given to the soldier, even after 9/11). The latter was a topic. Bringing democracy to people who had it denied for 60 years was another, with examples of its recognition, albeit at times reluctantly.
There were other soldiers who typified the volunteer service. Specialist Jennifer Fish joined the military two years ago, six months after high school. An Army child, born on a German base, she wanted to go to John Jay College for Criminal Justice, but they discontinued the girls’ soccer tem, so Army was the next best bet. She will go to John Jay after she completes her current enlistment, which in six more months will take her to Iraq (voluntarily, they do not send women soldiers there unless they ask, and are willing to wait), and has a tour as a drill sergeant (she’s eagerly studying for it, it is a responsible job and a point of pride). Then she’ll go to John Jay and ROTC, and the world better look out, this is a 5’4 and 112 lb young tiger. So far she’s been in accelerated training, served as honor guard (folding the flag right is very important), an MP (currently attached to a military police unit) and a Humwee driver. She can offer special training for detection of IEDs, the improvised explosive devices that have cost more lives and injuries on some roads of Iraq than guns.
The event ended with a social get-together and discussions, and offers of visits to the Armory. Public is invited, the Army has a lot to show and tell. This unit has been in four wars, starting with the Civil War, and 27 campaigns, and legend has it that it was nicknamed – a/k/a the Fighting Irish -by Robert E. Lee. We can be proud of them.
This is about our neighbors, the US Army. Just up from Baruch College, at 26th Street and Lexington Ave is the Armory serving as the Fighting 69th National Guard Infantry Regiment headquarters, As part of their Synaplex Shabbat neighborhood services the Brotherhood Synagogue invited one of their company commanders, 1st Sgt Troy J. Haley and his staff members to talk about the impact of the Iraq and Afghanistan wars on the National Guard, and on our neighborhood.
Troy Haley, 1st Sgt, age 39, was uniquely qualified to tell the tale of events, expectations, motivations and terrors in a volunteer professional military life. An archetypal military man, the young Californian became tired of family fruit farming and 19 years ago joined the Marines. He learned to swim the marines way, by repeated immersions (the Marines are part of the Navy), then went on to serve in the dry desert – first in the gulf war, then in Somalia, for Operation Restore Hope, moving on to embassy guard in Chad, then in the Netherlands. Joining the National Guard in 1996 as an Intelligence Analyst, he was selected in 2000 to be a full-time National Guard trainer in Little Rock Arkansas, to train 5,000 National Guard soldiers from across the US. In 2004 he joined the Fighting 69th and served in Iraq, protecting the vital and frequently attacked Route Irish, between the airport and Baghdad (research indicates this to be the most dangerous road in the world, all 12 kilometers of it). In 2007 he was moved back to Manhattan, to serve as the 69th’s Operations Sergeant, then 1st Sgt of its largest company.
We were given glimpses of the modern army’s fast moving assignments and opportunities – he had a colleague who had served in the Army, Air Force, Navy and the Marines, all within less than two decades- with a tolerance for goofy training methods, such as learning to swim by having to jump in the water or else – confirming that the military of Mister Roberts, Catch 22 and even Captain Queeg may be alive and well. However, to get a taste of current day military attitudes, the visitors, not being an overly book-reading lot, recommended movies – We Were Soldiers Together and A Band of Brothers - and we learned a bit about a significant change in attitudes.
One is a Vietnam War movie and the other a WWII miniseries, but the heroes are similar, commanding officers who promise to stay with their men and manage to keep them together and save lives. The emphasis in the volunteer army has changed to the positive. Moreover, while military career life may tend to resemble business career path, with employment changes, the risk-taking involves signing on for more physical danger, and the moving factors, besides the material ones, embrace the feelings for the country and for honor. It comes through, in this materialistic age, in spite of the rigors of toll of Iraq service that the narrator fully recognized, in terms of personal psyche, family problems, kids growing without a parent’s presence, all that without even mentioning threat death. Fortunately, one can quit and resign from this volunteer army, at the end of a tour.
To the question about resumption of draft, to relieve the overused National Guard, the answer seemed to favor a dedicated military, by choice, rather than impressed troops. The points raised involved pride of service, national need, of respect (not always given to the soldier, even after 9/11). The latter was a topic. Bringing democracy to people who had it denied for 60 years was another, with examples of its recognition, albeit at times reluctantly.
There were other soldiers who typified the volunteer service. Specialist Jennifer Fish joined the military two years ago, six months after high school. An Army child, born on a German base, she wanted to go to John Jay College for Criminal Justice, but they discontinued the girls’ soccer tem, so Army was the next best bet. She will go to John Jay after she completes her current enlistment, which in six more months will take her to Iraq (voluntarily, they do not send women soldiers there unless they ask, and are willing to wait), and has a tour as a drill sergeant (she’s eagerly studying for it, it is a responsible job and a point of pride). Then she’ll go to John Jay and ROTC, and the world better look out, this is a 5’4 and 112 lb young tiger. So far she’s been in accelerated training, served as honor guard (folding the flag right is very important), an MP (currently attached to a military police unit) and a Humwee driver. She can offer special training for detection of IEDs, the improvised explosive devices that have cost more lives and injuries on some roads of Iraq than guns.
The event ended with a social get-together and discussions, and offers of visits to the Armory. Public is invited, the Army has a lot to show and tell. This unit has been in four wars, starting with the Civil War, and 27 campaigns, and legend has it that it was nicknamed – a/k/a the Fighting Irish -by Robert E. Lee. We can be proud of them.
Monday, December 15, 2008
Stock market collapse and bailout proposals considered
LOOKING AHEAD by Wally Dobelis
In this scary market and credit collapse situation, I do not know how to judge our economy, except by pouring out the facts, putting them down and looking at them. Bear with me and think along, because that’s what you are getting here.
It seems like pre-history already, but there was the subprime mortgage crash, Bear-Sterns a major broker went broke in March, Treasury/Fed Reserve interfered and it was bought by Chase, saved because Bear is also a credit transfer agent..
June saw Countrywide Financial’s takeover, after its spin-off IndyMacBank collapsed.. and Lehman went broke and the Fed let it happen,
Then Fanny Mae and Freddie Mac, mortgage giants had to be bailed out by the Fed, costing the taxpayer beaucoup, say 4100B. They hold $5.2T in mortgages, .
AIG, insurance giant, was brought down when the mortgage tranches it has insured by swaps become unredeemable, and the Fed will bail it out with $85B taxpayer money guarantees.
Then Merrill Lynch went down, and again, The Bank of America picked it up for a song. Hmmm, like Countrywide…Now WaMu , the number Four bank, lost it, and Chase again was the buyer.
Wachovia now disclosed that it is overextended with $330B toxic mortgages – it had bought Golden State with $68B of the same in 2006. Citigroup bought a fraction of W’s losses, but Wachovia reneged and let Wells Fargo buy the whole, at seven times the price Now Citi, a dangerously overleveraged case itself is suing for having lost a steal.
Moving right along, investment banks Goldman Sachs and MorganStanley ran under the protection of FDIC. End of Big Wall Street.
In Europe Benelux giant Fortis was nationalized, by three national treasuries buying shares, same in Britain.
The world of commerce is going down, it is evident, when depositors start fleeing, and bank reserves with loans on a $30 to $1 leverage become insufficient, The credit system on which the working world lives is has shut down, banks cannot give daily operations cash for commercial paper and companies cannot meet payroll, in extreme cases. The economy is sound, only the commerce and daily operations money is not available.
At this point Paulsen and Bernanke decided that buying up to $700B worth of toxic mortgage tranches will restore customer confidence and save the credit system. After seesaw battle in Congress the compromise was written with an escape, to let government inject cash by buying bank shares. Surprise, Bush bought it
Suppose this will be accepted . Now the questions: How to ratio it? Presumably take the book value and mark-to-market value and first bolster the banks with the worst ratio?? How about if loss is 80%, cut the CEOs golden parachute also by 80% ?Hmmm.
Suppose the banks just raise the distress ratio and suck up the taxpayers’ money without doing anything to restore depositors’ confidence? That’s not rational behavior:, the banks will go broke and stockholder lawyers will kill the CEO’s assets.
Why not just buy up all defaulted mortgages, and save the poor schnooks’ lives, McCain’s social service solution, and let the banks fend for themselves? Yeah, but credit needs to be restored or else we all will be poor schnooks.
Why did the US not learn from the Great Depression? FDR did, and the 1933 Glass-Steagall Act separated bankers, brokers and insurers. But in 1982 decontrol-happy Pres. Reagan’s Depository Institution Act created the Savings & Loan bubble, mortgage sales rampant by uncontrolled S&Ls, while banks remained controlled, until the S&Ls collapsed in 1989, costing the US, as Resolution Trust Corp, $125B. James Keating, McCain’s benefactor, ignored a Home Loan Bank Board controls edict (Greenspan supported him).
Next, the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 that permitted retail banking, investment banking and insurance in one entity, further destroyed Glass-Steagall, now freeing regular banks from the restrictions that limited leverage during the S&L rampage. McCain voted for it, Clinton signed it. This act is deemed to be the real villain in creating uncontrolled operations. Then, Sen. Phil Gramm in Commodity Futures Modernization Act in Oct. 2000 set up nontransparent trading tools – the Enron loophole decontrolling energy trading cost CA $13B; Greenspan liked the credit default swaps in 2002, despite Arthur Lewitt’s (SEC) 1999 warnings of Congress against lack of transparency.
What’s the solution? . Well, writing it clears the mind, somewhat.. First, the market has to bottom out, as soon as possible, a 936 Dow points day is not enough. Second,. we need the bailout, in stages, controlled, with a triage to help potential survivors first, by buying bank shares. We need transparency, suspending mark-to-value calculations for fear of irrational dips would slow down bottoming. Above all, restore credit.
In this scary market and credit collapse situation, I do not know how to judge our economy, except by pouring out the facts, putting them down and looking at them. Bear with me and think along, because that’s what you are getting here.
It seems like pre-history already, but there was the subprime mortgage crash, Bear-Sterns a major broker went broke in March, Treasury/Fed Reserve interfered and it was bought by Chase, saved because Bear is also a credit transfer agent..
June saw Countrywide Financial’s takeover, after its spin-off IndyMacBank collapsed.. and Lehman went broke and the Fed let it happen,
Then Fanny Mae and Freddie Mac, mortgage giants had to be bailed out by the Fed, costing the taxpayer beaucoup, say 4100B. They hold $5.2T in mortgages, .
AIG, insurance giant, was brought down when the mortgage tranches it has insured by swaps become unredeemable, and the Fed will bail it out with $85B taxpayer money guarantees.
Then Merrill Lynch went down, and again, The Bank of America picked it up for a song. Hmmm, like Countrywide…Now WaMu , the number Four bank, lost it, and Chase again was the buyer.
Wachovia now disclosed that it is overextended with $330B toxic mortgages – it had bought Golden State with $68B of the same in 2006. Citigroup bought a fraction of W’s losses, but Wachovia reneged and let Wells Fargo buy the whole, at seven times the price Now Citi, a dangerously overleveraged case itself is suing for having lost a steal.
Moving right along, investment banks Goldman Sachs and MorganStanley ran under the protection of FDIC. End of Big Wall Street.
In Europe Benelux giant Fortis was nationalized, by three national treasuries buying shares, same in Britain.
The world of commerce is going down, it is evident, when depositors start fleeing, and bank reserves with loans on a $30 to $1 leverage become insufficient, The credit system on which the working world lives is has shut down, banks cannot give daily operations cash for commercial paper and companies cannot meet payroll, in extreme cases. The economy is sound, only the commerce and daily operations money is not available.
At this point Paulsen and Bernanke decided that buying up to $700B worth of toxic mortgage tranches will restore customer confidence and save the credit system. After seesaw battle in Congress the compromise was written with an escape, to let government inject cash by buying bank shares. Surprise, Bush bought it
Suppose this will be accepted . Now the questions: How to ratio it? Presumably take the book value and mark-to-market value and first bolster the banks with the worst ratio?? How about if loss is 80%, cut the CEOs golden parachute also by 80% ?Hmmm.
Suppose the banks just raise the distress ratio and suck up the taxpayers’ money without doing anything to restore depositors’ confidence? That’s not rational behavior:, the banks will go broke and stockholder lawyers will kill the CEO’s assets.
Why not just buy up all defaulted mortgages, and save the poor schnooks’ lives, McCain’s social service solution, and let the banks fend for themselves? Yeah, but credit needs to be restored or else we all will be poor schnooks.
Why did the US not learn from the Great Depression? FDR did, and the 1933 Glass-Steagall Act separated bankers, brokers and insurers. But in 1982 decontrol-happy Pres. Reagan’s Depository Institution Act created the Savings & Loan bubble, mortgage sales rampant by uncontrolled S&Ls, while banks remained controlled, until the S&Ls collapsed in 1989, costing the US, as Resolution Trust Corp, $125B. James Keating, McCain’s benefactor, ignored a Home Loan Bank Board controls edict (Greenspan supported him).
Next, the Gramm-Leach-Bliley Financial Services Modernization Act of 1999 that permitted retail banking, investment banking and insurance in one entity, further destroyed Glass-Steagall, now freeing regular banks from the restrictions that limited leverage during the S&L rampage. McCain voted for it, Clinton signed it. This act is deemed to be the real villain in creating uncontrolled operations. Then, Sen. Phil Gramm in Commodity Futures Modernization Act in Oct. 2000 set up nontransparent trading tools – the Enron loophole decontrolling energy trading cost CA $13B; Greenspan liked the credit default swaps in 2002, despite Arthur Lewitt’s (SEC) 1999 warnings of Congress against lack of transparency.
What’s the solution? . Well, writing it clears the mind, somewhat.. First, the market has to bottom out, as soon as possible, a 936 Dow points day is not enough. Second,. we need the bailout, in stages, controlled, with a triage to help potential survivors first, by buying bank shares. We need transparency, suspending mark-to-value calculations for fear of irrational dips would slow down bottoming. Above all, restore credit.
Thursday, December 11, 2008
How to be Governor Paterson and keep friends
LOOKING AHEAD by Wally Dobelis
Governor David Paterson has several headaches besides the failing economy, the collapse of Wall Street and its tax dollars, and the state budget shortfalls. Now the rule of the three historic feudal chiefs may be splitting up.
The most frenzied activity is in the election of Senate leadership. It has long been guessed that keeping Senate in Republican hands has given the Democratic governors a fine excuse for breaking election promises and unfulfilled harebrained commitments and such, all items that the Senate has stopped. Now that 32 Democrats have been elected to the Senate, a majority over the 30 Republicans, the innuendoes should have ceased and politics should be simple. Come baton-passing time, the Minority Leader, Malcolm Smith should be easily elected Majority Leader, and life would go on, with all leadership roles and responsibilities in one party.
Not no. There are three Democratic senators who did not want Smith and would vote with the GOP to create a 33 member majority for re-electing the incumbent Republican Dean Skelos as the Majority Leader. Why? Well, two Bronx senators, Pedro Espada Jr. and Ruben Diaz, want the Hispanics to have more of a role in government, and Karl Kruger of Brooklyn agrees. They also gave gay-marriage issues, and doubts about Malcolm Smith, who has luggage – a paternity lawsuit, two failed construction businesses, and a conversion, from Catholicism to join the church of his mentor, Rev. Floyd W. Flake. The Gang of Three knew full well that they would be under pressure from fellow legislators, also Albany and Washington, but the 2010 re-election is far away, and who knows..
Well, the Gang forced a deal, with the aid of Sen. Gregory Meeks, Rev. Flake’s successor, and of Tom Golisano the Buffalo financier and Governor-hopeful. It is not quite certain that Smith has agreed 100 percent, in fact as of 12/9 he denies it. What a complex deal!
It seems that the Majority Leader role is two-part, the basic ML being head of the conference of the majority party, elected by his party peers . Additionally, the ML also serves as President Pro-Tempore, that is head of the entire Senate. Past MLs, Joe Bruno and Dean Skelos, held both designations. Now Malcolm Smith, for the sake of a compromise, has accepted the President Pro-Tem role, letting Espada be the ML. and apportioning Sen. Bill Stachowski of Buffalo to role of the Deputy ML, finally a major influential job for the neglected upstaters (23 0f 32 Democratic senators are from NYC area). Sen. Jeffrey Klein, an important organizer and fund-raiser from the Bronx who was the Deputy Minority Leader, will become the Deputy President Pro-Tem, an undefined role. With Stachowski’s move Karl Kruger gets to be the head of the powerful Finance Committee, approving finance bills before they reach the entire membership.
What is the local impact to us, Midtown Manhattanites? For one, there were no women mentioned, and with the departure of US Sen. Hillary Clinton for State Department, the demand that her Senate seat be given to a woman has strengthened.
There is a major rush the vacant US Senate seat, and the pressure is on Gov Paterson, who makes the appointment. It impacts our area, because Congresswoman Carolyn Maloney, who has represented our District (Manhattan East Side, part of Queens) since 1994, is a declared candidate. Our Assembly District Democratic clubs have a great deal of interest in backing her.
There are some half a dozen other candidates, including women of stature, such as Congresswoman Kirsten Gillibrand, ready to claim this seat. A sentimental favorite, pushed by her Senator uncle, is Caroline Kennedy, a friend of the President-Elect. He admires and loves her, but seriously asks to be kept out of NYS politics. No matter who his interim appointee is, Gov. Paterson will lose some friends.
There is more than friendship at stake. Up until a few months ago Gov. Paterson was not given much of a chance against Mayor Michael Bloomberg in 2010. Now the Mayor is committed to a third term race, and in any event has lost some of his dollar-a-year savior shine. That gives Paterson a good shot to be elected, provided he handles the economic emergency and the budget shortfall – and he is doing it – and no heavy-weight Democrat decides to run. The strongest opponent to date would seem to be Attorney General Andrew Cuomo, who’s also been working hard, and very much by the book. Political strategy would dictate that the junior Cuomo be given the Senate appointment.
Paterson has another gender issue in the appointment of a successor for Judith S. Kaye, New York’s chief judge, who is reaching age 70, the obligatory retirement age. This must be completed by mid- January, from the panel of seven candidates recommended by a state panel. The recommendations include two sitting judges of the Court of Appeals, two other judges and three lawyers, but no women. More anon.
Governor David Paterson has several headaches besides the failing economy, the collapse of Wall Street and its tax dollars, and the state budget shortfalls. Now the rule of the three historic feudal chiefs may be splitting up.
The most frenzied activity is in the election of Senate leadership. It has long been guessed that keeping Senate in Republican hands has given the Democratic governors a fine excuse for breaking election promises and unfulfilled harebrained commitments and such, all items that the Senate has stopped. Now that 32 Democrats have been elected to the Senate, a majority over the 30 Republicans, the innuendoes should have ceased and politics should be simple. Come baton-passing time, the Minority Leader, Malcolm Smith should be easily elected Majority Leader, and life would go on, with all leadership roles and responsibilities in one party.
Not no. There are three Democratic senators who did not want Smith and would vote with the GOP to create a 33 member majority for re-electing the incumbent Republican Dean Skelos as the Majority Leader. Why? Well, two Bronx senators, Pedro Espada Jr. and Ruben Diaz, want the Hispanics to have more of a role in government, and Karl Kruger of Brooklyn agrees. They also gave gay-marriage issues, and doubts about Malcolm Smith, who has luggage – a paternity lawsuit, two failed construction businesses, and a conversion, from Catholicism to join the church of his mentor, Rev. Floyd W. Flake. The Gang of Three knew full well that they would be under pressure from fellow legislators, also Albany and Washington, but the 2010 re-election is far away, and who knows..
Well, the Gang forced a deal, with the aid of Sen. Gregory Meeks, Rev. Flake’s successor, and of Tom Golisano the Buffalo financier and Governor-hopeful. It is not quite certain that Smith has agreed 100 percent, in fact as of 12/9 he denies it. What a complex deal!
It seems that the Majority Leader role is two-part, the basic ML being head of the conference of the majority party, elected by his party peers . Additionally, the ML also serves as President Pro-Tempore, that is head of the entire Senate. Past MLs, Joe Bruno and Dean Skelos, held both designations. Now Malcolm Smith, for the sake of a compromise, has accepted the President Pro-Tem role, letting Espada be the ML. and apportioning Sen. Bill Stachowski of Buffalo to role of the Deputy ML, finally a major influential job for the neglected upstaters (23 0f 32 Democratic senators are from NYC area). Sen. Jeffrey Klein, an important organizer and fund-raiser from the Bronx who was the Deputy Minority Leader, will become the Deputy President Pro-Tem, an undefined role. With Stachowski’s move Karl Kruger gets to be the head of the powerful Finance Committee, approving finance bills before they reach the entire membership.
What is the local impact to us, Midtown Manhattanites? For one, there were no women mentioned, and with the departure of US Sen. Hillary Clinton for State Department, the demand that her Senate seat be given to a woman has strengthened.
There is a major rush the vacant US Senate seat, and the pressure is on Gov Paterson, who makes the appointment. It impacts our area, because Congresswoman Carolyn Maloney, who has represented our District (Manhattan East Side, part of Queens) since 1994, is a declared candidate. Our Assembly District Democratic clubs have a great deal of interest in backing her.
There are some half a dozen other candidates, including women of stature, such as Congresswoman Kirsten Gillibrand, ready to claim this seat. A sentimental favorite, pushed by her Senator uncle, is Caroline Kennedy, a friend of the President-Elect. He admires and loves her, but seriously asks to be kept out of NYS politics. No matter who his interim appointee is, Gov. Paterson will lose some friends.
There is more than friendship at stake. Up until a few months ago Gov. Paterson was not given much of a chance against Mayor Michael Bloomberg in 2010. Now the Mayor is committed to a third term race, and in any event has lost some of his dollar-a-year savior shine. That gives Paterson a good shot to be elected, provided he handles the economic emergency and the budget shortfall – and he is doing it – and no heavy-weight Democrat decides to run. The strongest opponent to date would seem to be Attorney General Andrew Cuomo, who’s also been working hard, and very much by the book. Political strategy would dictate that the junior Cuomo be given the Senate appointment.
Paterson has another gender issue in the appointment of a successor for Judith S. Kaye, New York’s chief judge, who is reaching age 70, the obligatory retirement age. This must be completed by mid- January, from the panel of seven candidates recommended by a state panel. The recommendations include two sitting judges of the Court of Appeals, two other judges and three lawyers, but no women. More anon.
Labels: Andrew Cuomo, Carolyn Kennedy, Carolyn Maloney, Governor David Paterson, Judith S. Kaye, Malcolm Smith
Expert in Cheap Chinese watches speaks up
LOOKING AHEAD by Wally Dobelis
Some 25 years ago a near relative whom I took to school daily was expert in breaking or losing his watch every week. So I became adept in getting him new 99 cent watches from the successors to Wooloworth’s dime empire stores , on a regular scheduled basis.
These Chinese watches fascinated me. After Nixon opened China to us in 1972, they cane, a dollar apiece, easy to activate and set, and easier to throw away rather than replace a battery. But I kept some dead ones.
I was in the habit of using drugstore watches after my good Rolex metal wristband broke, and it was fine, but the leather straps kept eroding. The mechanics worked forever, but the leather strips – which I preferred over metal – were decaying, or too stiffly constructed and had to be trimmed . They just would not last. Now I have this cemetery of electronically working watches that cannot be worn as intended.
Finally, a light broke. A drugstore watch that has lost its eroded strap, and a dead Chinese 99 cent watch had good plastic straps– can the straps be swapped? It all depends on the pin. In my case the pin fitted well and the watch was back in use.
To explain – watch straps are attached to the body by a spring-driven pin, fitted into an appx. 2 cm wide attachment space, Swiss or Chinese. If the pin fits, you can fit a hardy Chinese plastic strap on a Swiss or or a drugstore watch, and voila! You will have a new watch for a few years, your faith in the free trade and multinational cooperation will be strengthened, you will believe in the world as a unity, an will save a few dollars.
My contribution to world peace and cooperation.
Some 25 years ago a near relative whom I took to school daily was expert in breaking or losing his watch every week. So I became adept in getting him new 99 cent watches from the successors to Wooloworth’s dime empire stores , on a regular scheduled basis.
These Chinese watches fascinated me. After Nixon opened China to us in 1972, they cane, a dollar apiece, easy to activate and set, and easier to throw away rather than replace a battery. But I kept some dead ones.
I was in the habit of using drugstore watches after my good Rolex metal wristband broke, and it was fine, but the leather straps kept eroding. The mechanics worked forever, but the leather strips – which I preferred over metal – were decaying, or too stiffly constructed and had to be trimmed . They just would not last. Now I have this cemetery of electronically working watches that cannot be worn as intended.
Finally, a light broke. A drugstore watch that has lost its eroded strap, and a dead Chinese 99 cent watch had good plastic straps– can the straps be swapped? It all depends on the pin. In my case the pin fitted well and the watch was back in use.
To explain – watch straps are attached to the body by a spring-driven pin, fitted into an appx. 2 cm wide attachment space, Swiss or Chinese. If the pin fits, you can fit a hardy Chinese plastic strap on a Swiss or or a drugstore watch, and voila! You will have a new watch for a few years, your faith in the free trade and multinational cooperation will be strengthened, you will believe in the world as a unity, an will save a few dollars.
My contribution to world peace and cooperation.
Labels: 99 cent watches, cheap Chinese watches, Chinese watches, world peace
