See it Here: Emergency Economic Stabilization Act of 2008

H.R. 1424: A bill to provide authority for the Federal Government to purchase and insure certain types of troubled assets for the purposes of providing stability to and preventing disruption in the economy and financial system and protecting taxpayers, to amend the Internal Revenue Code of 1986 to provide incentives for energy production and conservation, to extend certain expiring provisions, to provide individual income tax relief, and for other purposes. Overview http://www.govtrack.us/congress/bill.xpd?bill=h110-1424 Summary http://www.govtrack.us/congress/bill.xpd?bill=h110-1424&tab=summary Full Text http://www.govtrack.us/congress/billtext.xpd?bill=h110-1424 FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Treasury Would Emerge With Vast New Power

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Floyd Norris - September 28, 2008 During its weeklong deliberations, Congress made many changes to the Bush administration’s original proposal to bail out the financial industry, but one overarching aspect of the initial plan that remains is the vast discretion it gives to the Treasury secretary. The draft legislation, which will be put to a House vote on Monday, gives Treasury Secretary Henry M. Paulson Jr. and his successor extraordinary power to decide how the $700 billion bailout fund is spent. For example, if he thinks it wise, he may buy not only mortgages and mortgage-backed securities, but any other financial instrument. To be sure, the Treasury secretary’s powers have been tempered since the original Bush administration proposal, which would have given Mr. Paulson nearly unfettered control over the program. There are now two separate oversight panels involved, one composed of legislators and the other including regulatory and administration officials. Still, Mr. Paulson can choose to buy from any financial institution that does business in the United States, or from pension funds, with wide discretion over what he will buy and how much he will pay. Under most circumstances, banks owned by foreign governments are not eligible for the money, but under some conditions, the secretary can choose to bail out foreign central banks. Under the bill, the Treasury is to buy the securities at prices he deems appropriate. Mr. Paulson may set prices through auctions but is not required to do so. Rarely if ever has one man had such broad authority to spend government money as he sees fit, with no rules requiring him to seek out the lowest possible price for assets being purchased. - - - - http://www.nytimes.com/2008/09/29/business/29bill.html?partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Big Tax Breaks for Businesses in Housing Bill

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Stephen Labaton and David M. Herszenhorn - April 16, 2008 WASHINGTON - The Senate proclaimed a fierce bipartisan resolve two weeks ago to help American homeowners in danger of foreclosure. But while a bill that senators approved last week would take modest steps toward that goal, it would also provide billions of dollars in tax breaks - for automakers, airlines, alternative energy producers and other struggling industries, as well as home builders. The tax provisions of the Foreclosure Prevention Act, which consumer groups and labor leaders say amount to government handouts to big business, show how the credit crisis, while rattling the housing and financial markets, has created beneficiaries in the power corridors of Washington. It also shows how legislation with a populist imperative offers a chance for lobbyists to press their clients’ interests. - - - - http://www.nytimes.com/2008/04/16/business/16bailout.html?ex=1366084800&en=30abe1fe0651f26b&ei=5124&partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Rebuilding Babel?

Mile-high tower: Saudi prince promises £5bn desert spire TWICE as tall as nearest rival being built LONDON DAILY MAIL [Associated Newspapers/DMGT] - By Barry Wigmore - March 31, 2008 On a clear day, the view from the top will take in the Middle East, North Africa and the Indian Ocean - providing you've a head for heights. Plans for a mile-high tower in the Saudi Arabian desert have been unveiled by the billionaire owner of London's Savoy Hotel. At 5,250ft, the £5billion project, masterminded by two British engineering consultancies, will be twice as high as its nearest rivals, skyscrapers under construction in Dubai and Kuwait, and almost seven times as high as the Canary Wharf tower in London's Docklands. It is being planned for a new city near the Red Sea port of Jeddah. Behind the scheme is 51-year-old Prince al-Walid bin Talal, who bought the Savoy for £1.25billion in 2005. The plan gives the Middle East a clear lead over Asian countries and the U.S., who have vied in the past to construct the world's tallest buildings. None of the other skyscrapers under construction, including New York's Freedom Tower on the World Trade Centre site, will exceed 2,296ft. The prince's company, Riyadh-based Kingdom Holdings, has set up a joint venture with the London firms Hyder Consulting and Arup. Experts say the technical challenges are enormous. Much of the lifting will be carried out by helicopters, which will also be used as commuter transport for builders. The tower will have to be capable of withstanding a wide range of temperatures, with its top baking in the desert sun by day but dropping to well below freezing at night. To resist the strong winds prevalent in the area and stop it swaying, giving its occupants a form of high-rise seasickness, it will be fitted with a giant computer-operated damper. Two "mini-towers" - both taller than Canary Wharf - will be built on either side of the main tower. Linked to it by elevated walkways, they will anchor it and act as stabilisers. Until recently, the still-under-construction Dubai Tower was expected to be the world's tallest building. Plans have changed several times to make it higher, but the final version is expected to be 2,300ft with 160 storeys. Original Report http://www.dailymail.co.uk/pages/live/articles/news/worldnews.html?in_article_id=550548&in_page_id=1811 Developer: Dubai Tower at 'new record height' ASSOCIATED PRESS - September 1, 2008 DUBAI, United Arab Emirates - The developer of a Dubai skyscraper set to become the world's tallest building says the rising tower now stands at a "new record height" of 2,257 feet. Emaar Properties says the skyscraper - known as Burj Dubai - now has "more than 160 stories." Its exterior is almost done and work has started on the interior. The company's Monday statement gave no other details. The silvery steel-and-glass building's final height is a secret. Last summer, the developer announced the building surpassed Taiwan's Taipei 101 which has dominated the global skyline at 1,667 feet since 2004. In the four years of construction, Emaar twice postponed the skyscraper's finish, now slated for September 2009. Original Report http://news.yahoo.com/story//ap/20080901/ap_on_re_mi_ea/dubai_tallest_building World's First 'Building In Motion' Set For Dubai Italian Architect Poised To Build 80-Story Tower With Revolving Floors Powered By Wind Turbines CBS NEWS America [CBS Corporation] - June 25, 2008 NEW YORK - ... Italian architect Dr. David Fisher announced on Tuesday the launch of a revolutionary skyscraper in Dubai dubbed as the "world's first building in motion," an 80-story tower with revolving floors that give it an ever-shifting shape. The spinning floors, hung like rings around an immobile cement core, would offer residents a constantly changing view of the Persian Gulf and the Dubai's futuristic skyline. At a news conference in New York, Rotating Tower Dubai Development Ltd headed by the Dynamic Group, revealed the design and floor plans of the rotating building. The one planned for Dubai will rise 1,380 feet into the air. Sales of individual apartments will begin in September, with asking prices of around $3,000 per square foot. The smallest, at 1,330 square feet, would cost about $4 million and the largest, a 12,900-square-foot villa, $38.7 million. - - - - Read Full Report http://wcbstv.com/national/dubai.david.fisher.2.756027.html Philadelphia: Zoning bill marks 1st step toward 1,500-foot skyscraper here PHILADELPHIA DAILY NEWS [Knight Ridder] - By Chris Brennan - June 20, 2008 A local developer took the first step yesterday toward building the tallest skyscraper in America when City Councilman Darrell Clarke introduced legislation for zoning changes needed at the 18th and Arch streets location. Clarke's action came on the same week that Mayor Nutter laid out his goal to restore to the City Planning Commission the power to shape such developments. The councilman and the mayor agree the commission should run the show on the proposed skyscraper, which Walnut Street Capital has named the "American Commerce Center." At 1,500 feet, the skyscraper would be more than 50 percent taller than the Comcast Center, which recently opened one block away. The Comcast Center takes up a full city block while the American Commerce Center would be built on a 1.5-acre half-block. Clarke said the site's narrow footprint was one reason the developer chose to build so high. - - - - Read Full Report http://www.philly.com/philly/hp/news_update/20080620_Zoning_bill_marks_1st_step_toward_1_500-foot_skyscraper_here.html World’s Biggest Building Coming to Moscow: Crystal Island INHABITAT - By Karim - December 26, 2007 Moscow’s rapidly growing skyline will soon feature an eye-popping new addition: Crystal Island, which will be the world’s biggest building when completed. Sir Norman Foster’s mountainous 27 million square feet spiraling “city within a building” will cost $4 billion and it is scheduled to be built within next 5 years. The Crystal Island will be Lord Foster’s second large scale project in the Russian capital, and his third new building design that resembles a volcano (we’re talking about his two mountainous buildings in Astana, Kazakstan). Although many people are calling this design the ‘Christmas Tree’ of Moscow - we can’t help but be reminded of the utopian and also rather volcanic X-Seed 4000 design for Tokyo. Unlike that pipe-dream project, however, Foster has a track record of getting buildings built, so the likelihood is high that we will see this striking structure towering over the Kremlin within 5 years time. - - - - Read Full Report http://www.inhabitat.com/2007/12/26/tallest-skyscraper-in-the-world-coming-to-moscow/ FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Agency’s ’04 Rule Let Banks Pile Up New Debt

NEW YORK TIMES [NYTimes Group/Sulzberger] - By Stephen Labaton - October 2, 2008 “We have a good deal of comfort about the capital cushions at these firms at the moment.” — Christopher Cox, chairman of the Securities and Exchange Commission, March 11, 2008. As rumors swirled that Bear Stearns faced imminent collapse in early March, Christopher Cox was told by his staff that Bear Stearns had $17 billion in cash and other assets — more than enough to weather the storm. Drained of most of its cash three days later, Bear Stearns was forced into a hastily arranged marriage with JPMorgan Chase — backed by a $29 billion taxpayer dowry. Within six months, other lions of Wall Street would also either disappear or transform themselves to survive the financial maelstrom — Merrill Lynch sold itself to Bank of America, Lehman Brothers filed for bankruptcy protection, and Goldman Sachs and Morgan Stanley converted to commercial banks. How could Mr. Cox have been so wrong? Many events in Washington, on Wall Street and elsewhere around the country have led to what has been called the most serious financial crisis since the 1930s. But decisions made at a brief meeting on April 28, 2004, explain why the problems could spin out of control. The agency’s failure to follow through on those decisions also explains why Washington regulators did not see what was coming. On that bright spring afternoon, the five members of the Securities and Exchange Commission met in a basement hearing room to consider an urgent plea by the big investment banks. They wanted an exemption for their brokerage units from an old regulation that limited the amount of debt they could take on. The exemption would unshackle billions of dollars held in reserve as a cushion against losses on their investments. Those funds could then flow up to the parent company, enabling it to invest in the fast-growing but opaque world of mortgage-backed securities; credit derivatives, a form of insurance for bond holders; and other exotic instruments. The five investment banks led the charge, including Goldman Sachs, which was headed by Henry M. Paulson Jr. Two years later, he left to become Treasury secretary. A lone dissenter — a software consultant and expert on risk management — weighed in from Indiana with a two-page letter to warn the commission that the move was a grave mistake. He never heard back from Washington. One commissioner, Harvey J. Goldschmid, questioned the staff about the consequences of the proposed exemption. It would only be available for the largest firms, he was reassuringly told — those with assets greater than $5 billion. “We’ve said these are the big guys,” Mr. Goldschmid said, provoking nervous laughter, “but that means if anything goes wrong, it’s going to be an awfully big mess.” Mr. Goldschmid, an authority on securities law from Columbia, was a behind-the-scenes adviser in 2002 to Senator Paul S. Sarbanes when he rewrote the nation’s corporate laws after a wave of accounting scandals. “Do we feel secure if there are these drops in capital we really will have investor protection?” Mr. Goldschmid asked. A senior staff member said the commission would hire the best minds, including people with strong quantitative skills to parse the banks’ balance sheets. Annette L. Nazareth, the head of market regulation, reassured the commission that under the new rules, the companies for the first time could be restricted by the commission from excessively risky activity. She was later appointed a commissioner and served until January 2008. “I’m very happy to support it,” said Commissioner Roel C. Campos, a former federal prosecutor and owner of a small radio broadcasting company from Houston, who then deadpanned: “And I keep my fingers crossed for the future.” The proceeding was sparsely attended. None of the major media outlets, including The New York Times, covered it. After 55 minutes of discussion, which can now be heard on the Web sites of the agency and The Times, the chairman, William H. Donaldson, a veteran Wall Street executive, called for a vote. It was unanimous. The decision, changing what was known as the net capital rule, was completed and published in The Federal Register a few months later. With that, the five big independent investment firms were unleashed. In loosening the capital rules, which are supposed to provide a buffer in turbulent times, the agency also decided to rely on the firms’ own computer models for determining the riskiness of investments, essentially outsourcing the job of monitoring risk to the banks themselves. Over the following months and years, each of the firms would take advantage of the looser rules. At Bear Stearns, the leverage ratio — a measurement of how much the firm was borrowing compared to its total assets — rose sharply, to 33 to 1. In other words, for every dollar in equity, it had $33 of debt. The ratios at the other firms also rose significantly. The 2004 decision for the first time gave the S.E.C. a window on the banks’ increasingly risky investments in mortgage-related securities. But the agency never took true advantage of that part of the bargain. The supervisory program under Mr. Cox, who arrived at the agency a year later, was a low priority. The commission assigned seven people to examine the parent companies — which last year controlled financial empires with combined assets of more than $4 trillion. Since March 2007, the office has not had a director. And as of last month, the office had not completed a single inspection since it was reshuffled by Mr. Cox more than a year and a half ago. The few problems the examiners preliminarily uncovered about the riskiness of the firms’ investments and their increased reliance on debt — clear signs of trouble — were all but ignored. The commission’s division of trading and markets “became aware of numerous potential red flags prior to Bear Stearns’s collapse, regarding its concentration of mortgage securities, high leverage, shortcomings of risk management in mortgage-backed securities and lack of compliance with the spirit of certain” capital standards, said an inspector general’s report issued last Friday. But the division “did not take actions to limit these risk factors.” Drive to Deregulate The commission’s decision effectively to outsource its oversight to the firms themselves fit squarely in the broader Washington culture of the last eight years under President Bush. A similar closeness to industry and laissez-faire philosophy has driven a push for deregulation throughout the government, from the Consumer Product Safety Commission and the Environmental Protection Agency to worker safety and transportation agencies. “It’s a fair criticism of the Bush administration that regulators have relied on many voluntary regulatory programs,” said Roderick M. Hills, a Republican who was chairman of the S.E.C. under President Gerald R. Ford. “The problem with such voluntary programs is that, as we’ve seen throughout history, they often don’t work.” As was the case with other agencies, the commission’s decision was motivated by industry complaints of excessive regulation at a time of growing competition from overseas. The 2004 decision was aimed at easing regulatory burdens that the European Union was about to impose on the foreign operations of United States investment banks. The Europeans said they would agree not to regulate the foreign subsidiaries of the investment banks on one condition — that the commission regulate the parent companies, along with the brokerage units that the S.E.C. already oversaw. A 1999 law, however, had left a gap that did not give the commission explicit oversight of the parent companies. To get around that problem, and in exchange for the relaxed capital rules, the banks volunteered to let the commission examine the books of their parent companies and subsidiaries. The 2004 decision also reflected a faith that Wall Street’s financial interests coincided with Washington’s regulatory interests. “We foolishly believed that the firms had a strong culture of self-preservation and responsibility and would have the discipline not to be excessively borrowing,” said Professor James D. Cox, an expert on securities law and accounting at Duke School of Law (and no relationship to Christopher Cox). “Letting the firms police themselves made sense to me because I didn’t think the S.E.C. had the staff and wherewithal to impose its own standards and I foolishly thought the market would impose its own self-discipline. We’ve all learned a terrible lesson,” he added. In letters to the commissioners, senior executives at the five investment banks complained about what they called unnecessary regulation and oversight by both American and European authorities. A lone voice of dissent in the 2004 proceeding came from a software consultant from Valparaiso, Ind., who said the computer models run by the firms — which the regulators would be relying on — could not anticipate moments of severe market turbulence. “With the stroke of a pen, capital requirements are removed!” the consultant, Leonard D. Bole, wrote to the commission on Jan. 22, 2004. “Has the trading environment changed sufficiently since 1997, when the current requirements were enacted, that the commission is confident that current requirements in examples such as these can be disregarded?” He said that similar computer standards had failed to protect Long-Term Capital Management, the hedge fund that collapsed in 1998, and could not protect companies from the market plunge of October 1987. Mr. Bole, who earned a master’s degree in business administration at the University of Chicago, helps write computer programs that financial institutions use to meet capital requirements. He said in a recent interview that he was never called by anyone from the commission. “I’m a little guy in the land of giants,” he said. “I thought that the reduction in capital was rather dramatic.” Policing Wall Street A once-proud agency with a rich history at the intersection of Washington and Wall Street, the Securities and Exchange Commission was created during the Great Depression as part of the broader effort to restore confidence to battered investors. It was led in its formative years by heavyweight New Dealers, including James Landis and William O. Douglas. When President Franklin D. Roosevelt was asked in 1934 why he appointed Joseph P. Kennedy, a spectacularly successful stock speculator, as the agency’s first chairman, Roosevelt replied: “Set a thief to catch a thief.” The commission’s most public role in policing Wall Street is its enforcement efforts. But critics say that in recent years it has failed to deter market problems. “It seems to me the enforcement effort in recent years has fallen short of what one Supreme Court justice once called the fear of the shotgun behind the door,” said Arthur Levitt Jr., who was S.E.C. chairman in the Clinton administration. “With this commission, the shotgun too rarely came out from behind the door.” Christopher Cox had been a close ally of business groups in his 17 years as a House member from one of the most conservative districts in Southern California. Mr. Cox had led the effort to rewrite securities laws to make investor lawsuits harder to file. He also fought against accounting rules that would give less favorable treatment to executive stock options. Under Mr. Cox, the commission responded to complaints by some businesses by making it more difficult for the enforcement staff to investigate and bring cases against companies. The commission has repeatedly reversed or reduced proposed settlements that companies had tentatively agreed upon. While the number of enforcement cases has risen, the number of cases involving significant players or large amounts of money has declined. Mr. Cox dismantled a risk management office created by Mr. Donaldson that was assigned to watch for future problems. While other financial regulatory agencies criticized a blueprint by Mr. Paulson, the Treasury secretary, that proposed to reduce their stature — and that of the S.E.C. — Mr. Cox did not challenge the plan, leaving it to three former Democratic and Republican commission chairmen to complain that the blueprint would neuter the agency. In the process, Mr. Cox has surrounded himself with conservative lawyers, economists and accountants who, before the market turmoil of recent months, had embraced a far more limited vision for the commission than many of his predecessors. ‘Stakes in the Ground’ Last Friday, the commission formally ended the 2004 program, acknowledging that it had failed to anticipate the problems at Bear Stearns and the four other major investment banks. “The last six months have made it abundantly clear that voluntary regulation does not work,” Mr. Cox said. The decision to shutter the program came after Mr. Cox was blamed by Senator John McCain, the Republican presidential candidate, for the crisis. Mr. McCain has demanded Mr. Cox’s resignation. Mr. Cox has said that the 2004 program was flawed from its inception. But former officials as well as the inspector general’s report have suggested that a major reason for its failure was Mr. Cox’s use of it. “In retrospect, the tragedy is that the 2004 rule making gave us the ability to get information that would have been critical to sensible monitoring, and yet the S.E.C. didn’t oversee well enough,” Mr. Goldschmid said in an interview. He and Mr. Donaldson left the commission in 2005. Mr. Cox declined requests for an interview. In response to written questions, including whether he or the commission had made any mistakes over the last three years that contributed to the current crisis, he said, “There will be no shortage of retrospective analyses about what happened and what should have happened.” He said that by last March he had concluded that the monitoring program’s “metrics were inadequate.” He said that because the commission did not have the authority to curtail the heavy borrowing at Bear Stearns and the other firms, he and the commission were powerless to stop it. “Implementing a purely voluntary program was very difficult because the commission’s regulations shouldn’t be suggestions,” he said. “The fact these companies could withdraw from voluntary supervision at their discretion diminished the mandate of the program and weakened its effectiveness. Experience has shown that the S.E.C. could not bootstrap itself into authority it didn’t have.” But critics say that the commission could have done more, and that the agency’s effectiveness comes from the tone set at the top by the chairman, or what Mr. Levitt, the longest-serving S.E.C. chairman in history, calls “stakes in the ground.” “If you go back to the chairmen in recent years, you will see that each spoke about a variety of issues that were important to them,” Mr. Levitt said. “This commission placed very few stakes in the ground.” http://www.nytimes.com/2008/10/03/business/03sec.html?partner=permalink&exprod=permalink FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Cosmetic Surgery Expected to Soar

LIVE SCIENCE.com - By Robert Roy Britt - June 24, 2008 By 2015, 17 percent of the residents of the United States will be getting cosmetic procedures, the body enhancement industry predicts. A new study published by the American Society of Plastic Surgeons (ASPS) predicts there will be more than 55 million cosmetic surgery procedures performed in 2015. That's nearly one procedure for every five Americans, including children, based on U.S. Census Bureau population projections. Of course, the bulk of procedures are done on adults, and some people might get more than one body part fixed in a year. The industry is well aware of what is driving all this: "Pushing this growth is increasing consumer awareness, direct-to-consumer marketing and advertising, as well as technological advances in non-surgical options," the group said in a statement today. In 2007, Americans spent more than $13 billion for nearly 11.7 million cosmetic procedures. That's up from nearly 8.5 million procedures in 2001. Sales sag Thanks to the bad economy, times are tough in human body shops right now, however. "While today's economy reflects a slow-down in plastic surgery procedures, the specialty will weather the current decline in economic growth just as it has previous declines, such as the stock market correction after the 2001 Internet bubble," said ASPS President Richard D'Amico, MD. "This prediction for 2015 is exciting." Some caution might be in order before the nation plunges head-long into fulfilling the industry's expectations. "Our concern is that with predicted growth and interest in the broad spectrum of cosmetic procedures, patients will look to the closest, easiest solution," said D'Amico. "Potential patients, however, need to know that board-certified plastic surgeons are uniquely qualified with an in-depth medical knowledge of the entire human body. They have the training necessary to accurately assess your individual needs and map health and beauty goals for your entire lifetime." The study was based on annual ASPS National Clearinghouse of Plastic Surgery statistics from 1992-2005. The researchers also analyzed the impact of economic and non-economic variables on industry growth. What's hot? Women's top-five cosmetic surgical procedures for 2007: Breast augmentation: 399,440 procedures Liposuction: 398,848 Eyelid surgery: 208,199 Men's top-five cosmetic surgical procedures for 2007: Liposuction: 57,980 procedures Eyelid surgery: 32,564 Nose reshaping: 31,713 In 2005, 34 percent of all procedures performed by ASPS Member Surgeons were surgical and 66 percent were non-surgical, the new study finds. Also in 2005, for non-ASPS members 9.5 percent of their procedures were surgical, while 90.5 percent were non-surgical. But non-surgical procedures grew 27.9 percent between 1992 and 2005, while surgical procedures grew just 7.5 percent. The No. 1 non-surgical cosmetic procedure for U.S. men and women last year was Botox injection. By 2015, the researchers predict that 88 percent of all cosmetic procedures will be non-surgical. http://www.livescience.com/health/080624-plastic-surgery.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Short-selling’ church leaders accused of failing to practise what they preach

THE TIMES of LONDON [News Corporation/Murdoch] - By Ruth Gledhill, Religion Correspondent - September 26, 2008 The Church of England was accused last night of having used short-selling to maximise profit on a £5 billion investment hours after its archbishops criticised banking practices. After the call from the archbishops of Canterbury and York for tighter regulation of the markets, the liberal think-tank Ekklesia said that the Church was implicated in stock market speculation. It said that in 2006 the Church Commissioners, which manages the Church of England’s investments, set up a currency hedging programme against a fall in the value of sterling, effectively short-selling the pound to guard against rises in other currencies. It also criticised the Church for its shareholdings in oil and mining companies. On Wednesday the Archbishop of York, Dr John Sentamu, branded the traders who cashed in on falling share prices in the troubled bank HBOS as “bank robbers” and “asset strippers”. In an interview with The Times, he said that people had become enslaved to the god of money, and that leaving the market to regulate itself was like leaving a pack of hyenas in charge of a herd of cattle. He called for a judicial inquiry into the financial services industry. The Archbishop of Canterbury, Dr Rowan Williams, accepted that making a profit was a legitimate goal, “if not a morally supreme” one, but called in an article in The Spectator for more regulation of the financial world. Jonathan Bartley, the co-director of Ekklesia, said: “The archbishops should be extremely careful when attacking City ‘bank robbers’ for short-selling and speculation. Amongst the billions of pounds that the Church currently invests in property and shares are hundreds of millions invested in oil and mining companies. “The Church has benefited significantly from the speculation that has underpinned rising oil and commodity prices such as gold and copper. The Church has substantial shareholdings in banks and a stated aim of making an excess profit of 5 per cent each year, over and above the rate of inflation, on its investments.” The Church Commissioners’ annual report last year revealed that its average return over the past decade was 9.5 per cent per year. Mr Bartley continued: “By its own admission it has also hedged against a fall in the value of sterling, and set up a currency hedging programme in 2006, effectively short-selling sterling in the currency markets.” He suggested that the Church should invest in institutions such as cooperatives, friendly societies and housing associations, and to work for the good of society, accepting a slightly lower profit. “The £5 billion investments that the Church currently holds provide a valuable opportunity for the Church to put its money where its mouth is, and use its wealth for good,” Mr Bartley said. The Church denied last night that it indulged in any dubious practices and said that its investment decisions were informed by its Ethical Investment Advisory Group. A spokesman said: “The commissioners do not short equities, nor have they delegated any shorting powers to their external equities fund managers. They do not have any exposure to hedge funds that short stocks. “The currency hedging programme, set up in 2007, is designed to protect the sterling value of the commissioners’ foreign currency denominated assets. The commissioners invest in a wide range of equities, including those of mining, oil and financial companies, as part of a broadly diversified asset base.” Evangelical leaders came out in support of the two archbishops as Dr Sentamu last night prepared to preach in New York and speak at the United Nations on the importance of the Millennium Development Goals, aimed at eradicating poverty. The Rev Joel Edwards, of Micah Challenge International, a global Christian campaign that works to challenge international leaders to achieve its goals, said: “Archbishop Sentamu’s challenge goes to the heart of the issue. The current financial crisis has demonstrated not only the degree of our self-interest and human greed in the West, but also our abject reluctance to rise to the challenges of taking our promises seriously.” David Muir, public policy director at the Evangelical Alliance, said: “We live to consume and now our greed is consuming us. We are reaping the consequences of always wanting more.” Collection box - £2.25bn portfolio of company shares held by the Church of England - 123,000 acres of agricultural land, worth an estimated £237 million, also owned by the Church. - About 31 per cent of its assets are invested in property - 85% of all the listed places of worship in England are owned by the Church - £250m has been spent by the Church of England since 1996 on repairing churches around the country - £177m annual estimated income of the Church - £5.7bn estimated value of Church’s central assets Sources: Times database; Centre for Citizenship http://www.timesonline.co.uk/tol/comment/faith/article4828516.ece FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Seven Days That Shook Wall Street

A look back at the historic-and often scary-events that changed the U.S. financial system forever BUSINESS WEEK [McGraw-Hill] - By Phil Mintz - September 19, 2008 It was the week that shook the financial world to the core. On Friday, Sept. 12, traders left the New York Stock Exchange for the weekend. But key banking officials, facing the impending failure of the venerable Lehman Brothers investment house and a shaky outlook for two other huge financial players-investment firm Merrill Lynch (MER) and insurance giant American International Group (AIG)-began a series of weekend meetings in an effort to prevent a possible collapse of the global financial system. Over the next seven days, the nation's financial leaders, captained by Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke, produced a rapid succession of moves that reversed a decades-long trend toward financial deregulation and fundamentally changed the face of the American financial system. Lehman failed and Merrill was sold to Bank of America (BAC). The government took effective control of AIG in an $85 billion bailout. And, in the biggest intervention of all, officials proposed to purchase the troubled mortgage assets of financial firms, a move that could cost hundreds of billions of additional dollars. Meanwhile, worried investors sent the stock markets into a dizzying ride of huge gains and losses. Here's how the events unfolded: Friday, Sept. 12: The trading week ends with the fate of 158-year-old Lehman Brothers in grave doubt. Its stock had fallen sharply due to fears over its financial condition. Paulson, Bernanke, and New York Fed President Tim Geithner begin a series of meetings in Lower Manhattan with top bankers in an effort to engineer a bailout of Lehman, which had bet heavily in the subprime mortgage market. Two possible buyers emerge: Britain's Barclays (BCS) and Bank of America. Saturday, Sept. 13: Talks on a possible Lehman buyout continue. The would-be rescuers look to the government to take on some of the risk, as it did in the shotgun sale of Bear Stearns to JPMorgan Chase (JPM) in March and the effective nationalization on Sept. 8 of mortgage giants Fannie Mae (FNM) and Freddie Mac (FRE). Government officials hold fast that there will be no federal bailout. Talks are inconclusive. Sunday, Sept. 14: The negotiators continue meeting, facing a deadline to act before Asian markets open for Monday morning trading. But government officials insist there will be no federal backing of a Lehman rescue. With no help from Washington forthcoming, Barclays-the only possibility left after Bank of America leaves the table-withdraws. Lehman is done for. Meanwhile, Merrill Lynch CEO John Thain, seeing the writing on the wall, arranges the sale of his company to Bank of America for about $50 billion. In one day, the fates of two storied companies are sealed. Monday, Sept. 15: Lehman Brothers Holdings, the bank's holding company, files for Chapter 11 bankruptcy protection and says it will try to sell key business units. Investor concern now turns to the fate of AIG, fearing a liquidity crisis. Rating agencies cut AIG's credit rating. Despite reassurances about the economy from Paulson and President George W. Bush, the stock market plummets. The Dow Jones industrial average drops more than 504 points, or 4.4%, the biggest loss since right after the September 11, 2001, terror attacks. The failure also roils overseas stocks, sending them plunging. Meanwhile, concerns about a slowing economy take oil below the psychological benchmark of $100 a barrel, its lowest level since February. Tuesday, Sept. 16: The Federal Reserve meets and keeps the federal funds rate unchanged at 2%. Asian markets, some of which had been closed for a holiday on Monday, plummet. The Russian stock market goes into a tailspin, with the largest exchange down more than 17% before the Russian government halts trading. Managers of the Primary Fund, a supposedly supersafe money market fund, say that shares have fallen below the sacrosanct $1 valuation. Meanwhile, Goldman Sachs (GS) and Morgan Stanley (MS), the two remaining independent investment banks, report stronger-than-expected results. However, investors continue to beat down the companies' shares. Amid all the turbulence, U.S. officials decide that AIG is indeed "too big to fail." In a move that would have been unthinkable before the credit crisis began, the Fed arranges to lend $85 billion to AIG in exchange for a 79.9% equity stake. The deal is announced Tuesday evening. Even before the deal is finalized, the Dow reverses an earlier loss and gains 141 points. Wednesday, Sept. 17: The government bailout of AIG fails to stem investor fears as they flee to safety. Credit markets tighten. The New York Times reports that Washington Mutual (WM), the nation's largest thrift, has put itself up for sale. The Dow plunges 449 points. Thursday, Sept. 18: The New York Times reports that Morgan Stanley has "stepped up" merger talks with Wachovia (WB). The Fed moves to pump money into the financial system through lending programs operated by several overseas central banks and the Fed's own moves. At the same time, the government begins action on the hugest bailout of all, committing hundreds of billions of taxpayer dollars to buy troubled mortgage assets from beleaguered financial institutions. As word of the evolving plan spreads, stocks rally. The Dow closes up 410 points. In the evening, Paulson and Bernanke and Securities & Exchange Commission Chairman Christopher Cox go to the U.S. Capitol to brief lawmakers on the plan, which requires congressional authorization. Friday, Sept. 19: The buyout plan-with few firm details-is announced and stocks soar worldwide. President Bush says the move puts "a significant amount of taxpayer dollars on the line," but he says the risk of not acting "would be far higher." In additional actions, the Treasury and Fed act to guarantee the assets of money-market funds, which had been threatened by the meltdown of the financial markets, and the SEC places a temporary ban on the short-selling of nearly 799 financial stocks. The Dow closes up 368.75 points, 45 points below where it was a week earlier but still 911 points over its bottom on Thursday morning. A momentous week indeed, but there is no sign the economic drama will limit itself to a mere seven days. Lawmakers and regulators are to work through this weekend in an effort to devise bailout plan legislation that can come to a vote next week. The bipartisan consensus surrounding the deal can come undone as the details are ironed out. But for drama, it will be hard to match events that have reshaped the U.S. financial landscape for years, if not decades to come. Mintz is BusinessWeek.com's B-schools channel editor in New York. Original Report http://www.businessweek.com/print/bwdaily/dnflash/content/sep2008/db20080919_945045.htm FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Digging out the truth?

THE JERUSALEM POST [Mirkaei Tikshoret/CanWest] - Op-Ed By Lela Gilbert - August 14, 2008 My first introduction to Jerusalem in 2006 took place on Tisha Be'av, the fast commemorating the destruction of the First and Second Temples. I stood at the Western Wall, during that time of the Second War in Lebanon, watching thousands of Jewish faithful, from all different walks of life - women and men, soldiers and Hassidim, Sephardim and Ashkenazim - gathered in unity to remember and to mourn. It was like entering the very soul of Israel. This Tisha Be'av caused me to reflect further on those lost Temples, particularly now that I have spent two years in the country, during which I had occasion to visit the Temple Mount. After passing through two security checks before entering, a different world appeared - one with no visible vestige of Judaism - on that ancient and holiest of Jewish sites. Christianity hasn't fared any better. In fact, for Christians, the writing is on the wall - literally and figuratively - the wall inside the Dome of the Rock. In Arabic calligraphy dating from the seventh century, the text declares that God has no son; that Jesus was not resurrected (Islam also denies that he was crucified); that Jews and Christians, "the People of the Book," transgress by not embracing Muhammad's revelation; and that Allah's reckoning will come swiftly on those who do not believe. Christians' attachment to the Temple Mount is based on Jesus's words and deeds as recorded in the Gospels. It was strange enough for me to discover, therefore, that Jews and Christians are not permitted to read their scriptures or pray aloud there. But it wasn't until learning that during the 2000 Camp David negotiations, PLO chairman Yasser Arafat had denied that any Jewish Temple had ever existed on the Mount that I grasped the depth of the divergence from the Hebrew Scripture, New Testament and historical records that is out there, and not as fringe an idea as one might assume. SIFTING THROUGH tons of rubble that had been illicitly dug up on the Temple Mount by the Muslim Wakf and stealthily dumped into a landfill, biblical archeologist Dr. Gabriel Barkay, professor at Bar-Ilan University, is in the midst of the project of a lifetime. I put the question of Temple denial to him. "This denial of the historical, spiritual and archeological connections of the Jews to the Temple Mount is something new," he says. "There was always talk about the temple of Solomon in Jerusalem - called the 'praise of Jerusalem'- in Arabic literature, in Islamic literature. This new idea of Temple denial is due to the Arabic fear of Jewish aspirations connected to the Temple Mount. It is part of something I call the 'cultural intifada.'" Barkay says the change took place in the 1990s: "In the Washington DC think tanks surrounding president Bill Clinton, it was understood that the Temple Mount was the crux of the problem of the Middle East conflict. These think tanks decided that if there could be 'split sovereignty' on the Temple Mount, then split sovereignty could also be achieved over the entire land of Palestine. So they suggested that in a future agreement, the Temple Mount would be split horizontally. That is to say that whatever is above ground, the part that includes the shrines of the Muslims, would be under Palestinian sovereignty. Whatever is underground, which would include the remnants of the Temple of the Jews, would be under Israeli sovereignty. "It's a brilliant idea, an excellent idea, but totally idiotic from a practical point of view. You cannot have a building standing with its foundations in another country. You cannot have a building with the infrastructure and the plumbing in another country. And you cannot have sovereignty on the subground without having accessibility to the subground, because the accessibility is from above ground. The whole thing was stupid." Barkay explains that the Temple Mount is honeycombed with more than 50 different cavities, holes, passageways and cisterns that are "filled with earth which is saturated with very valuable archeological materials. Enormous damage was done in these works which were carried out mainly from 1996 and onward. The idea that came from the circles surrounding Bill Clinton and leaked to the Wakf authorities is what generated the illicit building activities - I wouldn't call them excavations - but destructive work which was carried out brutally on the Temple Mount. The fear, the fear of anything representing a Jewish presence on the Temple Mount drove them mad." PRIOR TO my own visits to the Mount, I had been warned not to carry a bible or "holy objects" with me, and to stay away from the Dome of the Rock shrine and the Aksa Mosque, into which non-Muslims are forbidden to go. Nor was I allowed to see a third edifice which I'd read about - the Marwani Mosque - a gigantic, subterranean building, located in the southeast corner of the Temple Mount Plaza. In 1996, the Wakf had reconfigured an underground structure, formerly known as "Solomon's Stables," into a mosque. Their contractors lowered the inside surface of the building by removing large quantities of priceless soil, rich in archeological evidence. According to Barkay, the history they hauled away in dump trucks was not Muslim. "The building was never a mosque. It is actually more connected to traditions about Jesus. There are quite solid hints in the literature of the existence of an early Christian church there, marking the place where St. James was killed in the first century. The place is more Christian than Muslim." In November 1999, the Wakf asked permission from the Israeli government to open an emergency exit leading from the Marwani Mosque. "The prime minister at that time was Ehud Barak, and as usual he didn't consult with anybody else," Barkay recalls. "He gave them permission. But instead of an emergency exit, they created a main entrance to the building - a monumental entrance. For that entrance, they dug a pit 40 meters long and 12 meters deep. They did it with bulldozers in the most destructive manner possible, that of a bull in a china shop. The work on that place should have been done carefully, not with bulldozers. They removed 400 truckloads of earth." For Barkay, sifting through those truckloads of material is essential, because it amounts to exploring a black hole in archeological history. Although Israel is one of the most excavated places in the world, explored continuously since the 1850s, the Temple Mount has been surveyed but never excavated. Therefore, ironically, the digging and removal of earth in the 1990s has provided a new opportunity. "At least it enables us to look at the soil, though everything comes from a very disturbed context," Barkay says. "But we know it comes from the Temple Mount. And we have tens of thousands of finds." These finds, that cover approximately 15,000 years, have altered the historic understanding of the area's history. Sponsored by the Ir David Foundation, volunteers working with Barkay have been sifting through the debris, and have found Stone Age flint implements. They have discovered pre-Israelite material, Bronze Age pottery, two Egyptian scarabs and several seals and seal impressions. One very significant find, confirming the recorded history of the Temple's existence, is the fragment of a bulla, a clay lump with a seal impression upon it, which is about 2,600 years old and dates from the First Temple period. Its inscription bears part of official's name, Gealyahu son of Immer. The Immer family is recorded in the Bible. "In Jeremiah 20:1," Barkay says, "probably the brother of Gealyahu is mentioned, a priestly man named Pashur son of Immer. He is introduced as the man in charge of the Temple." Findings from the time of Solomon's Temple up to the 20th century illuminate the raging conflicts of passing civilizations. "We have enormous quantities of war artifacts: We have lead slingshots of the Seleucid armies in the battles of Judah Maccabee. We have arrowheads of the army of Nebuchadnezzar, who destroyed the First Temple. We have arrowheads of the Hellenistic period. We have one arrowhead bearing distinguishing markings of having been shot by a catapult. Those machines were only used by the armies of Titus in 70 CE in the destruction of the Second Temple. We have stone slingshots; we have spearheads; and we have medieval arrowheads from the Crusader conquest of the Temple Mount. There are even bullets from both the Turkish army and the British army in World War I." Other findings on the Temple Mount - jewelry, coins, pottery shards and architectural fragments - provide specific details of human life spanning several millennia. "We have material dating back to the 10th century BCE, the time of David and Solomon. We have material from the time of the kings of Judah. We have material in abundance from the early Christian period. This is very significant, because it is written in most history books that the churches moved to the Church of the Holy Sepulcher after it was built (it dates back to at least the fourth century), and that thereafter the Temple Mount was neglected and was a garbage heap. But now we have to build a new history, based on archeological evidence. "We have fragments of capitals from church buildings. We have remnants of chancel screens that separated the presbytery from the nave of the church. We have several bronze weights for weighing gold coins from the Christian era. We have to rethink the role of the Temple Mount in the time of early Christianity. Was it a garbage heap? Or is that biased history? I think that history was ideological." Barkay says that large quantities of animal bones have been found on the Mount. "Bones are very important. We have pig bones which had to have come from pagan or Christian times. We also have bones of foxes. And that is interesting, because in the Talmud we have a story about foxes which until recently I thought was a legend." IN SPITE of these discoveries, Temple denial remains a growing phenomenon in Europe and America, particularly in leftist intellectual circles. It is supported by the reality that there are no visible remains of the temples of Jerusalem on the Temple Mount. Barkay contends that there were remains still visible in the 1960s and 1970s, which have either been removed or covered up by gardens. "The Islamic Wakf says, 'We are not going to let you dig, but show us any remains of the Temple.' You cannot have it both ways. If you don't allow people to dig, then don't use this absence of remains as an argument. "Temple denial is a very tragic harnessing of politics to change history. It is not a different interpretation of historical events or archeological evidence. This is something major. I think that Temple denial is more serious and more dangerous than Holocaust denial. Why? Because for the Holocaust there are still living witnesses. There are photographs; there are archives; there are the soldiers who released the prisoners; there are testimonies from the Nazis themselves. There were trials, a whole series of them, starting with Nuremberg. There are people who survived the Holocaust still among us. Concerning the Temple, there are no people among us who remember. "Still, [to deny the Temples], you have to dismiss the evidence of Flavius Josephus; you have to dismiss the evidence of the Mishna and of the Talmud; and you have to dismiss the writings of Roman and Greek historians who mention the Temple of Jerusalem. And you have to dismiss The Bible. That is, I think, way too much." The writer has authored or co-authored more than 60 books, primarily in the field of ecumenical Christian non-fiction. Her work includes the recently released biography Baroness Cox: Eyewitness to a Broken World and the award-winning Their Blood Cries Out, co-authored with Paul Marshall. She is also an Adjunct Fellow at the Center for Religious Freedom at the Hudson Institute. Original Report Here http://www.jpost.com/servlet/Satellite?cid=1218710365298&pagename=JPost%2FJPArticle%2FShowFull FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

The $55 trillion question

The financial crisis has put a spotlight on the obscure world of credit default swaps - which trade in a vast, unregulated market that most people haven't heard of and even fewer understand. Will this be the next disaster? FORTUNE MAGAZINE [Time, Inc./Time Warner] - By Nicholas Varchaver, senior editor and Katie Benner, writer-reporter - September 30, 2008 As Congress wrestles with another bailout bill to try to contain the financial contagion, there's a potential killer bug out there whose next movement can't be predicted: the Credit Default Swap. In just over a decade these privately traded derivatives contracts have ballooned from nothing into a $54.6 trillion market. CDS are the fastest-growing major type of financial derivatives. More important, they've played a critical role in the unfolding financial crisis. First, by ostensibly providing "insurance" on risky mortgage bonds, they encouraged and enabled reckless behavior during the housing bubble. "If CDS had been taken out of play, companies would've said, 'I can't get this [risk] off my books,'" says Michael Greenberger, a University of Maryland law professor and former director of trading and markets at the Commodity Futures Trading Commission. "If they couldn't keep passing the risk down the line, those guys would've been stopped in their tracks. The ultimate assurance for issuing all this stuff was, 'It's insured.'" Second, terror at the potential for a financial Ebola virus radiating out from a failing institution and infecting dozens or hundreds of other companies - all linked to one another by CDS and other instruments - was a major reason that regulators stepped in to bail out Bear Stearns and buy out AIG (AIG, Fortune 500), whose calamitous descent itself was triggered by losses on its CDS contracts (see "Hank's Last Stand"). And the fear of a CDS catastrophe still haunts the markets. For starters, nobody knows how federal intervention might ripple through this chain of contracts. And meanwhile, as we'll see, two fundamental aspects of the CDS market - that it is unregulated, and that almost nothing is disclosed publicly - may be about to change. That adds even more uncertainty to the equation. "The big problem is that here are all these public companies - banks and corporations - and no one really knows what exposure they've got from the CDS contracts," says Frank Partnoy, a law professor at the University of San Diego and former Morgan Stanley derivatives salesman who has been writing about the dangers of CDS and their ilk for a decade. "The really scary part is that we don't have a clue." Chris Wolf, a co-manager of Cogo Wolf, a hedge fund of funds, compares them to one of the great mysteries of astrophysics: "This has become essentially the dark matter of the financial universe." *** AT FIRST GLANCE, credit default swaps don't look all that scary. A CDS is just a contract: The "buyer" plunks down something that resembles a premium, and the "seller" agrees to make a specific payment if a particular event, such as a bond default, occurs. Used soberly, CDS offer concrete benefits: If you're holding bonds and you're worried that the issuer won't be able to pay, buying CDS should cover your loss. "CDS serve a very useful function of allowing financial markets to efficiently transfer credit risk," argues Sunil Hirani, the CEO of Creditex, one of a handful of marketplaces that trade the contracts. Because they're contracts rather than securities or insurance, CDS are easy to create: Often deals are done in a one-minute phone conversation or an instant message. Many technical aspects of CDS, such as the typical five-year term, have been standardized by the International Swaps and Derivatives Association (ISDA). That only accelerates the process. You strike your deal, fill out some forms, and you've got yourself a $5 million - or a $100 million - contract. And as long as someone is willing to take the other side of the proposition, a CDS can cover just about anything, making it the Wall Street equivalent of those notorious Lloyds of London policies covering Liberace's hands and other esoterica. It has even become possible to purchase a CDS that would pay out if the U.S. government defaults. (Trust us when we say that if the government goes under, trying to collect will be the least of your worries.) You can guess how Wall Street cowboys responded to the opportunity to make deals that (1) can be struck in a minute, (2) require little or no cash upfront, and (3) can cover anything. Yee-haw! You can almost picture Slim Pickens in Dr. Strangelove climbing onto the H-bomb before it's released from the B-52. And indeed, the volume of CDS has exploded with nuclear force, nearly doubling every year since 2001 to reach a recent peak of $62 trillion at the end of 2007, before receding to $54.6 trillion as of June 30, according to ISDA. Take that gargantuan number with a grain of salt. It refers to the face value of all outstanding contracts. But many players in the market hold offsetting positions. So if, in theory, every entity that owns CDS had to settle its contracts tomorrow and "netted" all its positions against each other, a much smaller amount of money would change hands. But even a tiny fraction of that $54.6 trillion would still be a daunting sum. The credit freeze and then the Bear disaster explain the drop in outstanding CDS contracts during the first half of the year - and the market has only worsened since. CDS contracts on widely held debt, such as General Motors' (GM, Fortune 500), continue to be actively bought and sold. But traders say almost no new contracts are being written on any but the most liquid debt issues right now, in part because nobody wants to put money at risk and because nobody knows what Washington will do and how that will affect the market. ("There's nothing to do but watch Bernanke on TV," one trader told Fortune during the week when the Fed chairman was going before Congress to push the mortgage bailout.) So, after nearly a decade of exponential growth, the CDS market is poised for its first sustained contraction. *** ONE REASON THE MARKET TOOK OFF is that you don't have to own a bond to buy a CDS on it - anyone can place a bet on whether a bond will fail. Indeed the majority of CDS now consists of bets on other people's debt. That's why it's possible for the market to be so big: The $54.6 trillion in CDS contracts completely dwarfs total corporate debt, which the Securities Industry and Financial Markets Association puts at $6.2 trillion, and the $10 trillion it counts in all forms of asset-backed debt. "It's sort of like I think you're a bad driver and you're going to crash your car," says Greenberger, formerly of the CFTC. "So I go to an insurance company and get collision insurance on your car because I think it'll crash and I'll collect on it." That's precisely what the biggest winners in the subprime debacle did. Hedge fund star John Paulson of Paulson & Co., for example, made $15 billion in 2007, largely by using CDS to bet that other investors' subprime mortgage bonds would default. So what started out as a vehicle for hedging ended up giving investors a cheap, easy way to wager on almost any event in the credit markets. In effect, credit default swaps became the world's largest casino. As Christopher Whalen, a managing director of Institutional Risk Analytics, observes, "To be generous, you could call it an unregulated, uncapitalized insurance market. But really, you would call it a gaming contract." There is at least one key difference between casino gambling and CDS trading: Gambling has strict government regulation. The federal government has long shied away from any oversight of CDS. The CFTC floated the idea of taking an oversight role in the late '90s, only to find itself opposed by Federal Reserve chairman Alan Greenspan and others. Then, in 2000, Congress, with the support of Greenspan and Treasury Secretary Lawrence Summers, passed a bill prohibiting all federal and most state regulation of CDS and other derivatives. In a press release at the time, co-sponsor Senator Phil Gramm - most recently in the news when he stepped down as John McCain's campaign co-chair this summer after calling people who talk about a recession "whiners" - crowed that the new law "protects financial institutions from over-regulation ... and it guarantees that the United States will maintain its global dominance of financial markets." (The authors of the legislation were so bent on warding off regulation that they had the bill specify that it would "supersede and preempt the application of any state or local law that prohibits gaming ...") Not everyone was as sanguine as Gramm. In 2003 Warren Buffett famously called derivatives "financial weapons of mass destruction." *** THERE'S ANOTHER BIG difference between trading CDS and casino gambling. When you put $10 on black 22, you're pretty sure the casino will pay off if you win. The CDS market offers no such assurance. One reason the market grew so quickly was that hedge funds poured in, sensing easy money. And not just big, well-established hedge funds but a lot of upstarts. So in some cases, giant financial institutions were counting on collecting money from institutions only slightly more solvent than your average minimart. The danger, of course, is that if a hedge fund suddenly has to pay off on a lot of CDS, it will simply go out of business. "People have been insuring risks that they can't insure," says Peter Schiff, the president of Euro Pacific Capital and author of Crash Proof, which predicted doom for Fannie and Freddie, among other things. "Let's say you're writing fire insurance policies, and every time you get the [premium], you spend it. You just assume that no houses are going to burn down. And all of a sudden there's a huge fire and they all burn down. What do you do? You just close up shop." This is not an academic concern. Wachovia (WB, Fortune 500) and Citigroup (C, Fortune 500) are wrangling in court with a $50 million hedge fund located in the Channel Islands. The reason: A dispute over two $10 million credit default swaps covering some CDOs. The specifics of the spat aren't important. What's most revealing is that these massive banks put their faith in a Lilliputian fund (in an inaccessible jurisdiction) that was risking 40% of its capital for just two CDS. Can anyone imagine that Citi would, say, insure its headquarters building with a thinly capitalized, unregulated, offshore entity? That's one element of what's known as "counterparty risk." Here's another: In many cases, you don't even know who has the other side of your bet. Parties to the contract can, and do, transfer their side of the contract to third parties. Investment firms assert that transfers are well documented (a claim that, like most in the world of CDS, is impossible to verify). But even if that's true, you're still left with the fact that a given company's risks are being dispersed in ways that they may not know about and can't control. It doesn't help that CDS trading is a haphazard process. Most contracts are bought and sold over the phone or by instant message and settled manually. Settlement has been sloppy, confirms Jamie Cawley of IDX Capital, a firm that brokers trades between big banks. Pushed by New York Fed president Timothy Geithner, the players have been improving the process. But even as recently as a year ago, Cawley says, so many trades were sitting around unfulfilled that "there were $1 trillion worth of swaps that were unsettled among counterparties." Trade settlement is not the only anachronistic aspect of CDS trading. Consider what will happen with CDS contracts relating to Fannie Mae and Freddie Mac. The two were placed in conservatorship on Sept. 7. But the value of many contracts won't be determined till Oct. 6, when an auction will set a cash price for Fannie and Freddie bonds. We'll spare you the technical reasons, but suffice it to ask: Can you imagine any other major market that would need a month to resolve something like this? *** WITH WASHINGTON SUDDENLY in a frenzy of outrage over the financial markets, debating everything from the shape and extent of the mortgage plan to what should be done about short-selling, the future for CDS is very blurry. "The market is here to stay," asserts Cawley. The question is simply: What sorts of changes are in store? As this article was going to press, SEC chairman Christopher Cox asked the Senate to allow his agency to begin regulating CDS - mostly, it should be said, to rein in short-selling. And the SEC separately announced that it was expanding its investigation of market manipulation, which initially targeted the short-sellers, to CDS investors. Under other circumstances, Cox's request might have been met with polite silence. But the convulsions over the mortgage bailout are so dramatic that they are reminiscent of the moment, soon after the Enron scandal, when Congress drafted the Sarbanes-Oxley legislation. The desire to blame short-sellers may actually result in powers for Cox that, until very recently, he showed no signs of wanting. Should legislators wade into this issue, the measures most widely seen as necessary are straightforward: some form of centralized trading or clearing and some form of capital or reserve requirements. Meanwhile, New York State's insurance commissioner, Eric Dinallo, announced new regulations that would essentially treat sellers of some (but not all) CDS as insurance entities, thereby forcing them to set aside reserves and otherwise follow state insurance law - requirements that would probably drive many participants from the market. Whether CDS players will find a way to challenge the rules remains to be seen. (ISDA, the industry's trade group, has already gone on record in opposition to Cox's proposal.) If nothing else, the New York law may provide additional impetus for the feds to take action. For now, the biggest impact could come from the Financial Accounting Standards Board. It is implementing a new rule in November that will require sellers of CDS and other credit derivatives to report detailed information, including their maximum payouts and reasons for entering the contracts, as well as assets that might allow them to offset any payouts. Anybody who has tried to parse CEO compensation in recent years knows that more disclosure doesn't guarantee clarity, but any increase in information in the CDS realm will be a benefit. Perhaps that would limit the baleful effect of CDS on (must we consider it?) the next disaster - or even help us prevent it. http://money.cnn.com/2008/09/30/magazines/fortune/varchaver_derivatives_short.fortune/index.htm FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

FrankenFighters: Be More Than You Can Be

WIRED NEWS [Advance/Newhouse] - By Noah Shachtman - March 2007 As in the days of Noah...

http://www.wired.com/wired/archive/15.03/bemore_pr.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Barack Obama-the Muslim Christian?

CHRISTIAN WORLDVIEW NETWORK - By Jill Martin Rische - July 8, 2008 In the crazy world of American politics, it should come as no surprise when a fast-talking presidential candidate attempts, yet again, to redefine Christianity. This time around, we have Barack Obama and his cohort of political reformationists nailing their 95 Theses smack dab in the middle of our foreheads. “I am a Christian!” Obama proclaims from rooftops all over America as swooning women breathe his name like a prayer. The junior Senator from Illinois has become the messiah of millions: Obama will cure what ails American society and-yes-the world. Change We Can Believe In is his mantra, ringing like a funeral dirge to the few who remember that change is not always good. Barack Obama aka Barry Soetoro (his name throughout his Muslim youth) claims to be a “committed Christian” and yet the emerging truth about him is a study in contradiction and frankly, alarming: I am a Christian (but I was a devout Muslim); I am a Christian (but I never renounced Islam); I am a Christian (but there is more than one way to God). [1] Add to this the fact that Barack Obama flatly denies his Muslim roots, even labeling the word Muslim a “smear,” and suddenly the question of integrity pops into the picture. Who is telling the truth: Barack Obama aka Barry Soetoro or his relatives, teachers, and childhood friends? Eyewitness testimony, reported on credible websites, reveals that Barack Obama was raised Muslim and was, in fact, quite devout throughout his youth. [2] Today, Senator Obama states that his “Christian” faith is not the only way to God, and he rejects Christian positions on key moral issues. Finally, he never formally renounced the Islamic faith he followed until he met his wife, Michelle. [3] So who, exactly, is Barack Obama? It’s only fair to let the man speak for himself: The Gospel According to Barack Obama 1. God/Jesus: “I believe that there are many paths to the same place, and that is a belief that there is a higher power, a belief that we are connected as a people.” “Jesus is an historical figure for me, and he’s also a bridge between God and man, in the Christian faith, and one that I think is powerful precisely because he serves as that means of us reaching something higher.” [4] 2. Heaven: “What I believe in is that if I live my life as well as I can, that I will be rewarded. I don’t presume to have knowledge of what happens after I die.” [5] 3. Hell: “I find it hard to believe that my God would consign four-fifths of the world to hell. I can’t imagine that my God would allow some little Hindu kid in India who never interacts with the Christian faith to somehow burn for all eternity. That’s just not part of my religious makeup.” [6] 4. Sin: What is sin? “Being out of alignment with my values.” [7] 5. Salvation - The Born Again Experience: “I’m not somebody who is always comfortable with language that implies I’ve got a monopoly on the truth, or that my faith is automatically transferable to others. I’m a big believer in tolerance. I think that religion at its best comes with a big dose of doubt.” [8] “If all it took was someone proclaiming I believe Jesus Christ and that he died for my sins, and that was all there was to it, people wouldn’t have to keep coming to church, would they.” [9] 6. Doctrine: “Obviously as an African American politician rooted in the African American community, I spend a lot of time in the black church. . . . Rarely in those settings do people come up to me and say, what are your beliefs. They are going to presume, and rightly so. Although they may presume a set of doctrines that I subscribe to that I don’t necessarily subscribe to.” [10] 7. Abstinence and Abortion: “Look, I've got two daughters, 9 years old and 6 years old. I am going to teach them first of all about values and morals. But if they make a mistake, I don't want them punished with a baby. I don't want them punished with an STD at the age of 16.” [11] “I think women, in consultation with their pastors and their doctors and their families are in a better position to make these decisions than some bureaucrat in Washington. That's my view. Again, I respect people who may disagree, but I certainly don't think it makes me less Christian.” [12] 8. Same-sex marriage “As your President, I will use the bully pulpit to urge states to treat same-sex couples with full equality in their family and adoption laws. I personally believe that civil unions represent the best way to secure that equal treatment. But I also believe that the federal government should not stand in the way of states that want to decide on their own how best to pursue equality for gay and lesbian couples-whether that means a domestic partnership, a civil union, or a civil marriage.” [13] 9. Fundamentalism: “I am a great admirer of our founding charter, and its resolve to prevent theocracies from forming, and its resolve to prevent disruptive strains of fundamentalism from taking root in this country. . . . As I said before, in my own public policy, I’m very suspicious of religious certainty expressing itself in politics.” [14] 10. Faith and Life Role Model: “I think Gandhi is a great example of a profoundly spiritual man who acted and risked everything on behalf of those values but never slipped into intolerance or dogma. He seemed to always maintain an air of doubt about him. I think Dr. King, and Lincoln. Those three are good examples for me of people who applied their faith to a larger canvas without allowing that faith to metastasize into something that is hurtful.” [15] And so, my friends and associates, that is the gospel according to Barack Obama. Senator Obama believes you can be a Christian and not believe in the biblical Jesus Christ. He believes you can support homosexuality-including civil marriages and adoptions-and still be a follower of Jesus Christ. Barack Obama believes the taking of innocent life in the form of an unborn child is acceptable under most circumstances. He believes there is more than one way to God. He has never publicly renounced the Prophet Mohammed. This is the “Christianity” of Barack Obama, who seems to think he can take historic theology and spin it like cotton candy. But the bottom line in life is that words have specific meanings. A heart is a heart-it can never be a lung. Definition is the foundation of logic, and logic fuels a rational society. Barack Obama may use and abuse the name “Christian,” but as long as he rejects the biblical definition of Christianity, he can never be one. For information on the cults and the occult, and a free listening library, visit WalterMartin.com. [1] Reuven Koret, “Is Barack Obama a Muslim wolf in Christian wool?” Israel Insider, http://web.israelinsider.com/Articles/Politics/12745.htm (accessed June 23, 2008). For further analyses see “Obama: Sermon on Mount Justifies Same-Sex Unions,” CNS News, http://www.cnsnews.com/ViewPolitics.aspPage=/Politics/archive/200803/POL20080303b.html, and “Obama was ‘quite religious in Islam,’ WorldNet Daily, http://www.wnd.com/index.php?fa=PAGE.view&pageId=60559. [2] Koret, Is Barack Obama a Muslim wolf in Christian wool? Koret documents the fact that Barack Obama took “mengaji” classes (Koran recitation)-at his Muslim school. “To put it quite simply, ‘mengaji classes’ are not something that a non practicing or so-called moderate Muslim family would ever send their child to. To put this in a Christian context, this is something above and beyond simply enrolling your child in Sunday school classes.” “The fact that Obama had attended mengaji classes is well known in Indonesia and has left many there wondering just when Obama is going to come out of the closet.” [3] Koret, Is Barack Obama a Muslim wolf in Christian wool? Senator Obama’s church did not require him to renounce his Muslim beliefs in order to embrace Christianity. Koret writes, “On Feb 15/08, Usama K. Dakdok, President of The Straight Way of Grace Ministry called Obama’s Church and reported the following conversation: “I then asked the person who answered what I needed to do to join. She told me that I needed to attend two Sunday School classes in a row and then I would walk the aisle. I replied, “That sounds easy. One last question please. If I am Muslim and I believe in the Prophet Mohammed, peace be unto him and I also believe in Jesus, peace be unto him, do I have to give up my Islamic faith to be a member in your church? She answered: “No, we have many Muslim members in our church.” [4] Cathleen Falsani, “Barack Obama: The 2004 ‘God Factor’ Interview Transcript,” http://falsani.blogspot.com/2008/04/barack-obama-2004-god-factor-interview.html (accessed June 24, 2008). Falsani says of Obama: “It's perhaps an unlikely theological position for someone who places his faith squarely at the feet of Jesus to take, saying essentially that all people of faith-Christians, Jews, Muslims, animists, everyone-a know the same God.” [5] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. [6] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. Falsani says of Obama: “Obama doesn’t believe he or anyone else, will go to hell. But he’s not sure if he’ll be going to heaven, either.” [7] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. [8] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. [9] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. [10] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. [11] CNN, “Ballot Bowl 2008,” http://transcripts.cnn.com/TRANSCRIPTS/0803/29/bb.01.html, (accessed July 6, 2008). [12] Barack Obama Rally at Hocking College in Nelsonville, Ohio, Sunday, March 2, 2008. Transcript available at http://www.wtap.com/news/headlines/16161977.html. (Hear audio from WTAP-TV) See also, “Reaction to Obama -- babies are God’s gift, not a ‘punishment’,” One News Now, http://www.onenewsnow.com/Election2008/Default.aspx?id=74609 (accessed June 24, 2008). [13] Barack Obama.com, Open Letter “Equality is a Moral Imperative.” http://pride.barackobama.com/page/content/lgbthome, Obama states, “We also need a president who’s willing to confront the stigma-too often tied to homophobia-that continues to surround HIV/AIDS. I confronted this stigma directly in a speech to evangelicals at Rick Warren’s Saddleback Church, and will continue to speak out as president.” [14] Barack Obama, Open Letter, “Equality is a Moral Imperative,” http://my.barackobama.com/page/community/post/alexokrent/gGggJS (accessed July 6, 2008). [15] Falsani, Barack Obama: The 2004 ‘God Factor’ Interview Transcript. Distributed by www.ChristianWorldviewNetwork.com http://www.christianworldviewnetwork.com/article.php/3729/By_Jill_Martin_Rische FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.

Milford Schools Adopt Breath Testing For Alcohol

Christians: Protect Your Children Under New Policy Students Subject To Breathalyzer Test ASSOCIATED PRESS - September 9, 2008 MILFORD, Conn. ― Milford's school board has adopted a new policy that students are subject to breath testing for alcohol at school functions. Under the policy, students entering a public school-sponsored dance will have to take a Breathalyzer test. The policy has been adopted as an effort to cut down on teen drinking. The policy also allows school administrators to test individual high schoolers during the school day if there's reason to suspect they've been drinking alcohol. School officials say if a student refuses to take the Breathalyzer, the student could be suspended for 10 days. - - - - http://wcbstv.com/local/milford.high.school.2.813105.html FAIR USE NOTICE: This blog contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available in our efforts to advance understanding of religious, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond 'fair use', you must obtain permission from the copyright owner.