| "Only dull people are brilliant at breakfast" -Oscar Wilde |
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"The liberal soul shall be made fat, and he that watereth, shall be watered also himself." -- Proverbs 11:25 |

The latest exit polls from the Associated Press showed that among moderates, who represented about a quarter of the vote, McCain was beating Huckabee two-to-one. The majority of the South Carolina electorate was conservative but Huckabee had only a narrow lead over McCain among them.
McCain, 71, led easily among older voters; those 65 years old or older made up about a quarter of the vote in a state heavy with retirees.
The Obama campaign has provided NBC News with a recording of robocall that a Nevadan received. The call, first reported by the Politico, repeats the Illinois senator’s middle name, Hussein and attacks his relations with “Washington lobbyists” and “special interest groups.” It makes no mention of Clinton or Edwards.
It's unclear how many Nevadans heard it. The Politico mentions just one who did.
Here's the a full transcript of the roughly 30-second call is below: “Hi, I'm calling with some information about Barack Hussein Obama that you don't know. Barack Hussein Obama says he doesn't take money from Washington lobbyists or special interest groups, but the record is clear. He does. In fact, Barack Hussein Obama has taken millions of dollars from federal lobbying firms, Wall Street fat cats, big oil and pharmaceutical companies. It's all there on the record, the facts are clear. We just can't take a chance on Barrack Hussein Obama.”
Labels: 2008 election
This is happening in a state where election officials were recently asked about their paperless ES&S iVotronic touch-screen (DRE) voting system and the fact that other states have found the machines to be insecure, poorly designed, inaccurate and not accessible for voters with disabilities. These officials have all said that they anticipate a smooth voting process for both the Republican presidential preference primary on Jan. 19 and the Democratic primary on Jan. 26 in South Carolina.
Prior to the reports of the mass failure of their voting machines, Horry County had released their plan on how they were going to conduct two primary elections on two straight Saturdays.
Late in the week poll workers picked up the iVotronic machines that they are using today. They took them home on voting machine "sleepovers" and then set-up the poll sites for today's primary.
Today only the Republicans are voting.
When the polls close this evening all memory cards, machines and supplies will be returned to the county election office.
The tallies will be done and results reported. The machines will then be prepared to be picked-up next Thursday by the same poll workers who will take them home and repeat the "sleepover" process for the Democratic primary next Saturday.
This plan seems to be a welcome mat for security problems, since the machines are highly susceptible to tampering, and even short periods outside the view of the public and election officials can be a recipe for disaster. Also in question is whether memory cards will be saved between the two primaries, as per federal law. This Train Wreck will probably throw a locomotive wheel into the counties plans.
Labels: 2008 election, electronic voting machines
Experts believe Bush’s proposal hints at a tax-rebate program, much like the one that was conducted in 2001 when Bush was first elected. Where would the rebate come from?
No one knows for sure, but an analysis by the Tax Foundation speculates that the current 10 percent tax bracket would be dropped to 0 percent for one year – meeting Bush’s goal of creating a temporary but swift break.
Currently, single filers pay 10 percent tax on about $8,000 in taxable income, while married couples pay 10 percent on the first $16,000 they earn. By dropping this bracket to zero, singles would pay $800 less and married couples would pay $1,600 less on their 2008 returns.
But because Bush wants to stimulate the economy quickly, the tax cut would be advanced to taxpayers through checks sent by the Internal Revenue Service.
Labels: economic death watch, taxes
A high-ranking executive of a collapsed subprime mortgage lender jumped to his death from the Delaware Memorial Bridge on Friday, shortly after his wife's body was found inside their Burlington County home, authorities said.
The deaths of Walter Buczynski, 59, and his wife, Marci, 37 -- the parents of two boys -- were being investigated as a murder-suicide, according to the Burlington County Prosecutor's Office.
Prosecutor Robert Bernardi said Evesham Township police went to the couple's home in the Marlton section of the township around noon after a male caller asked them to check on Marci Buczynski's welfare. Her body was found in a bedroom.
Authorities would not provide further details on her death, saying only that she was pronounced dead at the scene and that an autopsy would be performed sometime Saturday by the county medical examiner's office.
About 20 minutes after her body was found, officers from the Delaware River and Bay Authority Police Department received reports that a man -- later identified as Walter Buczynski -- had parked his car on the bridge and jumped from the span.
Crews continued to search for his body Friday night.
Bernardi said a motive for the murder-suicide was not immediately clear. The couple's children were being cared for by family members, Bernardi said.
Walter Buczynski was vice president of Columbia, Md.-based Fieldstone Mortgage, a high-flying subprime mortgage lender that made $5.5 billion in mortgage loans and employed about 1,000 people as late as 2006.
However, it has since filed for bankruptcy and now has less than 20 employees. The company had recently filed court papers seeking approval to pay about $1.1 million in bonuses that would be divided among Buczynski and other staffers so the company could wind down its lending operations and go out of business.
Labels: economic death watch

I've made no secret that I'm supporting John Edwards in the primary race. Some of the Obamaniacs who spam the diaries at Le Grand Orange trying to squelch all criticism of their candidate, have called for Edwards to leave the race in the name of party unity. I say fuck that. The primaries are the only place (and this year, even New Jersey has a voice) where you can vote for the candidate you want. I haven't wanted to turn B@B into an Edwards campaign blog, because his campaign already has an excellent one. But Edwards' campaign wants to send a message by raising $7 million in one day -- today.Labels: 2008 election, John Edwards
QUESTIONER: Is it your goal to bring the Constitution into strict conformity with the Bible? Some people would consider that a kind of dangerous undertaking, particularly given the variety of biblical interpretations.
HUCKABEE: Well, I don’t think that’s a radical view to say we’re going to affirm marriage. I think the radical view is to say that we’re going to change the definition of marriage so that it can mean two men, two women, a man and three women, a man and a child, a man and animal. Again, once we change the definition, the door is open to change it again. I think the radical position is to make a change in what’s been historic.

c/p RIPCocoLabels: Chris Matthews, lies, sociopathy
For decades, the theory that lowering cholesterol is always beneficial has been a core principle of cardiology. It has been accepted by doctors and used by drug makers to win quick approval for new medicines to reduce cholesterol.
But now some prominent cardiologists say the results of two recent clinical trials have raised serious questions about that theory — and the value of two widely used cholesterol-lowering medicines, Zetia and its sister drug, Vytorin. Other new cholesterol-fighting drugs, including one that Merck hopes to begin selling this year, may also require closer scrutiny, they say.
“The idea that you’re just going to lower LDL and people are going to get better, that’s too simplistic, much too simplistic,” said Dr. Eric J. Topol, a cardiologist and director of the Scripps Translational Science Institute in La Jolla, Calif. LDL, or low-density lipoprotein, is the so-called bad cholesterol, in contrast to high-density lipoprotein, or HDL.
For patients and drug companies, the stakes are enormous. Led by best sellers like Lipitor from Pfizer, cholesterol-lowering medicines, taken by tens of millions of patients daily, are the largest drug category worldwide, with annual sales of $40 billion.
Despite widespread use of the drugs, though, heart disease remains the biggest killer in the United States and other industrialized nations, and many people still have cholesterol levels far higher than doctors recommend.
As a result, drug companies are investing billions of dollars in experimental new cholesterol-lowering medicines that may eventually be used alongside the existing drugs. If the new questions result in slower approvals, it would be yet another handicap for the drug industry.
Because the link between excessive LDL cholesterol and cardiovascular disease has been so widely accepted, the Food and Drug Administration generally has not required drug companies to prove that cholesterol medicines actually reduce heart attacks before approval.
They have not had to conduct so-called outcome or events trials beforehand, which are expensive studies that involve thousands of patients and track whether episodes like heart attacks are reduced.
So far, proof that a drug lowers LDL cholesterol has generally been enough to lead to approval. Only then does the drug’s maker begin an events trial. And until the results of that trial are available, a process that can take several years, doctors and patients must accept the medicine’s benefits largely on faith.
“You’ve got a huge chasm between F.D.A. licensure and a clinical events trial,” said Dr. Allen J. Taylor, the chief of cardiology at Walter Reed Army Medical Center.
Nonetheless, the multistep process has worked well for several cholesterol drugs — including Lipitor and Zocor, which are in a class of drugs known as statins. In those cases, the postapproval trials confirmed that the drugs reduce heart attacks and strokes, adding to confidence about the link between cholesterol and heart disease.
Doctors generally believe that the amount by which cholesterol is lowered, not the method of lowering it, is what matters.
That continues to be the assumption of Dr. Scott M. Grundy, a professor of medicine at the University of Texas Southwestern Medical Center who was the chairman of a panel in 2001 that set national guidelines for cholesterol treatment.
“LDL lowering, however it occurs, delays development of coronary atherosclerosis and reduces risk for heart attack,” Dr. Grundy said this week. In atherosclerosis, plaque builds up in the arteries, eventually leading to blood clots and other problems that cause heart attacks and strokes.
In the last 13 months, however, the failures of two important clinical trials have thrown that hypothesis into question.
"You work three jobs? … Uniquely American, isn't it? I mean, that is fantastic that you're doing that...do you get any sleep?"
I am so proud to be from the state of Minnesota. We’re the workingest state in the country, and the reason why we are, we have more people that are working longer hours, we have people that are working two jobs.
Labels: health
Labels: 2008 election, comedy, New Hampshire, Sam Seder
Numbers are now being posted from both the Democratic and Republican hand-counts in the NH Primary Election contest. So far, only wards in Manchester (Hillsborough County) have been hand-counted, and disparities between the original counts from the Diebold optical-scan machine and the hand inspections seem to be occurring in many wards, and for many candidates.
Here is the SoS Recount page with the totals, that I haven't yet been able to review in full.
While sources on the ground at the counting today have told me that officials were not announcing the originally counted results at the counting room, the SoS web page lists what they claim are the original counts --- previously verified by nobody --- versus the recounted numbers.
The disparities, as I've quickly been able to review them, are small, but consistent, in ward after ward, across almost all of the candidates. I'm told that the manufacturers of the optical-scan machines (in this case, Diebold) have estimated an expected error rate of 1% on this type of tallying device which, as noted by one of our contacts in NH, is ridiculous, if you consider that most states and counties only kick in "automatic recounts" when the margin between the two leading candidates is less than .5% or so.
ADDITIONALLY...Public records requests are being made on the spot, for errors and malfunctions at various voting precincts. An early review of the error forms turned over from the public record request made by Election Integrity experts overseeing the counting, has revealed that in Stratham there were some 550 ballots that were not read by the op-scan at all. They were seen as blank ballots. Officials there noticed the problem, and then hand-counted some 3000 ballots after the error was discovered.
Apparently, as we've seen elsewhere, voters were given the wrong pen to use and the op-scanners did not "see" this particular type of ink.
[snip]LHS, apparently, is the one responsible for tracking (or not) and reporting (or not) any such errors, rather than the Secretary of State or local election officials, it would seem. That tracks with previous BRAD BLOG reporting on LHS, and how they operate in Connecticut, where there are similar concerns for whether or not the SoS even knows what the error rates are for the system they use, since problem reports are given to LHS instead of to public officials.
The BRAD BLOG has reported within the past few days machine problems during the election in a number of towns. In fact, of the first four towns we called that used the Diebold machines, all four reported machine failures of one type or another.
Labels: 2008 election, Diebold, New Hampshire
The findings also raise doubts about the current belief that lowering cholesterol is the key to cardiovascular health. The study showed that Vytorin reduced bad cholesterol significantly more than Zocor alone. The problem was that it failed to reduce the formation of plaque.
Labels: FDA, pharmaceutical industry
An embattled but comfortable Rudy Giuliani turned up the anti-terror rhetoric yesterday to receptive crowds across the state in a last fierce dash to lock in votes before Republican rivals converge on Florida next week
Giuliani has been telling voters throughout his statewide bus tour to vote early. But his comments Tuesday highlighted an added benefit of the strategy. By getting voters to the polls through the two weeks of early voting, he can secure their support before they see him likely lose in Michigan, Nevada and South Carolina, and before other Republicans start campaigning and advertising in the Sunshine State.
Campaign aides acknowledged its part of the plan, but they said the early and absentee ballot push is more focused on ensuring his supporters actually go to the polls.
After weeks of staying “above the fray,” Rudy Giuliani drew a line in the Florida sand Tuesday, signaling that his rivals’ fiscal records will be in his sights when they arrive in the Sunshine State next week.
For an hour Monday, Rudolph W. Giuliani passionately made his case to voters seated in the Shell Point retirement community chapel.
He talked of tax cuts and terrorist attacks, of building up the military and cracking down on illegal immigration.
Dozens of the more than 1,000 who attended the town hall event took off before Giuliani finished his speech, leaving rows of seats empty.
"I didn't hear anything I hadn't heard before," said Barbara Vitello, 71. "It's the first time ever I'm going into the [presidential] election not knowing who I'll vote for," she said.
Labels: democratic debate
Forrester Research forecasts that the value of legal outsourcing to India will grow to $4 billion by 2015 from $80 million today. Legal Process Outsourcing, or LPO as it is popularly called, is the latest trend in outsourcing. The impact of globalization along with the significant cost savings and increases in productivity and efficiency which can be realized, are but a few of the reasons why law firms and in-house counsel are shifting operations abroad.
Some of the latest legal specialties and tasks that "...are susceptible to outsourcing": (or, in other words, Jobs Americans Won't Do - JAWD) are:
To be honest, most of this work is not even done by full-fledged lawyers, but by law clerks, paralegals, legal secretaries, word processors, or (if given a chance) even just smart people off the street. Junior lawyers may be found doing this work as entry-level work assignments.
Is it even necessary for me to say that many Americans enjoy this type of work, and find it challenging and rewarding rather than mundane and routine? Or how about the fact that top-level lawyers start off by doing this kind of work, which can serve as a solid foundation for a successful career?
One of the speakers is David Perla, the Co-CEO of Mumbai-based Pangea3 LLC. The Careers section of their website indicates openings in India for contract lawyers, scientists, engineers, technologists, patent lawyers, legal researchers and litigation lawyers. Notice how the New York office only publishes openings for a Litigation Sales Lawyer and a Patent Lawyer. Notice also how the openings in India specify they want applicants who have between 2-10 years of experience or 1-7 years of experience. I'm not sure what 40-year old Indians are supposed to do with themselves after they've reached the upper limit on the experience chart.
Check out the Pangea3 blog section where Kevin Colangelo, on December 6, 2007, wrote about the presentation he gave at the Center for Economic Policy Studies’ (CEPS) Fall Symposium at Princeton University:
Simply stated, it’s clear to me that the intellectual debate over offshoring has become merely that: intellectual. Finally. Complex, thoughtful discussions on global economics are indeed valuable and necessary, but at the end of the day, a roomful of non-attorneys did not seem fazed by the notion of Pangea3’s Indian attorneys doing U.S. and U.K. legal work. Their questions were focused on the details of how we do the work, rather than whether it is good for the economy or how this will impact the distinguished U.S. and U.K. legal professions.
I’m hopeful that the insight demonstrated at this Symposium is further proof that offshoring, and in particular, the offshoring of legal services, has matured to the point where it is viewed as a key, but uncontroversial, element of our economy.
In other words, the offshoring geniuses don't have to justify sending our jobs overseas anymore. They are off the hook. Everyone does it now, and there's not a damn thing the peasants can do about it.
(Special thanks to a loyal reader for letting me know about Pangea3. Cross-posted to Carrie's Nation.)
Labels: offshoring, outsourcing
In the latest Newsweek, Michael Hirsh reports that, during a private conversation with Israeli Prime Minister Ehud Olmert, Bush "all but disowned" the agencies' Dec. 3 National Intelligence Estimate on Iran. A "senior administration official who accompanied Bush" on the trip confided to Hirsh that Bush "told the Israelis that he can't control what the intelligence community says, but that [the NIE's] conclusions don't reflect his own views."
The NIE—which was signed by all 16 U.S. intelligence agencies—concluded "with high confidence" that Iran had "halted its nuclear weapons program" back in the fall of 2003. The estimate, released to the public in sanitized form, seriously undercut efforts by the Bush-Cheney White House to portray Iran's nuclear ambitions as an imminent threat—and left the world either relieved or (especially in Israel's case) alarmed that the option of a U.S. airstrike on Iran was pretty much off the table.
[snip]
For the president of the United States to wave away the whole document—which, in its classified form, is more than 140 pages and has nearly 1,500 source notes, according to an enlightening story in today's Wall Street Journal—is gratuitous and self-destructive.
Then again, such behavior is of a piece with the pattern of relations between President Bush and his intelligence agencies. In September 2004, when he was asked about a pessimistic CIA report on the course of the occupation in Iraq, Bush replied that the agency was "just guessing."
Labels: delusion, George W. Bush, Iran
The Iraqi defense minister said Monday that his nation would not be able to take full responsibility for its internal security until 2012, nor be able on its own to defend Iraq’s borders from external threat until at least 2018.
Those comments from the minister, Abdul Qadir, were among the most specific public projections of a timeline for the American commitment in Iraq by officials in either Washington or Baghdad. And they suggested a longer commitment than either government had previously indicated.
Pentagon officials expressed no surprise at Mr. Qadir’s projections, which were even less optimistic than those he made last year.
President Bush has never given a date for a military withdrawal from Iraq but has repeatedly said that American forces would stand down as Iraqi forces stand up. Given Mr. Qadir’s assessment of Iraq’s military capabilities on Monday, such a withdrawal appeared to be quite distant, and further away than any American officials have previously stated in public.
Mr. Qadir’s comments are likely to become a factor in political debate over the war. All of the Democratic presidential candidates have promised a swift American withdrawal, while the leading Republican candidates have generally supported President Bush’s plan. Now that rough dates have been attached to his formula, they will certainly come under scrutiny from both sides.
Senior Pentagon and military officials said Mr. Qadir had been consistent throughout his weeklong visit in pressing that timeline, and also in laying out requests for purchasing new weapons through Washington’s program of foreign military sales.
“According to our calculations and our timelines, we think that from the first quarter of 2009 until 2012 we will be able to take full control of the internal affairs of the country,” Mr. Qadir said in an interview on Monday, conducted in Arabic through an interpreter.
“In regard to the borders, regarding protection from any external threats, our calculation appears that we are not going to be able to answer to any external threats until 2018 to 2020,” he added.
He offered no specifics on a timeline for reducing the number of American troops in Iraq.
Labels: Iraq
From the moment he took the microphone at a Clinton town meeting at Columbia College, Johnson came across as an accident waiting to happen. He started off referring to Barack Obama as "a young, articulate black man" before explaining, "As a black person, I can call him articulate." Johnson ended up sniffing that Obama is "a guy who says that: I want to be a reasonable, likable Sidney Poitier [in] 'Guess Who's Coming to Dinner.'"
But these were not the lines that gave Johnson Sunday honors for self-inflicted political wounds. What did it was Johnson's riff that Bill and Hillary Clinton were "deeply and emotionally involved in black issues when Barack Obama was doing something in the neighborhood ... I won't say what he was doing, but he said it in his book." Despite the laughter from the largely white crowd sparked by the obvious cocaine reference, the Clinton campaign later released a statement from Johnson claiming (warning to readers: Be prepared to giggle) that he was "referring to Barack Obama's time spent as a community organizer."
It is implausible that Clinton (or anyone else in her campaign) whispered to Johnson backstage, "Bob, be sure to mention that coke thing." As political surrogates, billionaires -- just like big-name actors -- are the sort of ego-driven figures who are far too self-assured to follow the make-no-waves scripts provided by a campaign. But what Johnson's off-message comments may reflect is the larger frustration within the Clinton campaign over how to challenge Obama, a candidate bathed in non-stick coating.
Normally, the afterglow from winning the New Hampshire primary lasts more than five days. But Sunday was a day unlikely to be commemorated in Hillary's personal highlight reel. In addition to Johnson's gift of gab, Clinton had to endure an hour of jousting with Tim Russert on "Meet the Press," complaining on six separate occasions that her words were being "taken out of context." She was buffeted over her earlier maladroit comment that Lyndon Johnson had more to do with passing civil rights legislation than Martin Luther King Jr. (It is never a good sign when a Democratic candidate feels compelled to stress, "Dr. King ... is one of the people I admire most in the world.") And once again Clinton had to justify her 2002 vote authorizing the use of force in Iraq. (It is never a good sign when a candidate for president complains to Russert that he is pursuing a "Jesuitical argument.")
After facing off with Russert, Clinton found blessed refuge at Sunday services at Northminster Presbyterian Church in Columbia. Speaking from the pulpit to the largely black congregation, Clinton declared, "This is a moment worthy of celebration. Many of our parents and our grandparents -- and, I dare say, probably many of us -- never thought they would see the day when an African-American and a woman were competing for the presidency of the United States." John Edwards is, of course, still in the mix, but it is a telling symbol of change that the white male is running third.
Labels: 2008 election, Barack Obama, Hillary Clinton
U.S. President George W. Bush said on Sunday that Iran was threatening security around the world by backing "extremists" and urged its Gulf Arab allies to "confront this danger before it is too late".
Speaking in Abu Dhabi, the third stop of his tour of Arab allies, Bush said that Shi'ite Muslim Iran was the world's number one sponsor of terrorism and accused it of undermining peace by supporting the Hezbollah guerrilla group in Lebanon, Palestinian Islamist group Hamas and Shi'ite militants in Iraq.
"Iran's actions threaten the security of nations everywhere. So the United States is strengthening our longstanding security commitments with our friends in the Gulf and rallying friends around the world to confront this danger before it is too late," he said in his keynote speech which, with the auditorium two-thirds full, received only polite applause at the end.
"Iran is today the world's leading state sponsor of terror. It sends hundreds of millions of dollars to extremists around the world while its own people face repression and economic hardship at home."
Returning to familiar themes that have been at the core of Bush's approach during seven years in the White House, the president praised democratisation efforts in the Arab world, but acknowledged "some setbacks". He did not name any country but cited arrests of political opponents.
Earlier in the day, Bush visited the U.S. Navy's Fifth Fleet in Bahrain amid new tensions with Iran over an incident in which Washington says its ships were harassed in the Strait of Hormuz.
The United States says Iranian boats threatened its warships on Jan. 6 along the vital route for crude oil shipments from the world's biggest producing region.
'DEADLY SERIOUSLY'
Vice Admiral Kevin Cosgriff, commander of the Fifth Fleet, made it clear to Bush his forces took the incident "deadly seriously," White House spokeswoman Dana Perino told reporters.
"All of the people in the military remember what's happened in the past such as the USS Cole," she said, referring to the attack on the U.S. warship in Yemen in 2000 using a boat packed with explosives.
During a stop in Israel at the start of his Middle East trip last week, Bush warned Iran of "serious consequences" if it attacked U.S. ships and said all options were on the table.
Labels: George W. Bush, insanity, Iran
When President Bush announced the surge of troops in support of a new counterinsurgency strategy a year ago, Barack Obama, Hillary Clinton and Democratic Congressional leaders predicted failure. Obama, for example, told Larry King that he didn’t believe additional U.S. troops would “make a significant dent in the sectarian violence that’s taking place there.” Then in April, the Senate majority leader, Harry Reid, asserted that “this war is lost, and this surge is not accomplishing anything.” In September, Clinton told Gen. David Petraeus that his claims of progress in Iraq required a “willing suspension of disbelief.”
The Democrats were wrong in their assessments of the surge. Attacks per week on American troops are now down about 60 percent from June. Civilian deaths are down approximately 75 percent from a year ago. December 2007 saw the second-lowest number of U.S. troops killed in action since March 2003. And according to Lt. Gen. Ray Odierno, commander of day-to-day military operations in Iraq, last month’s overall number of deaths, which includes Iraqi security forces and civilian casualties as well as U.S. and coalition losses, may well have been the lowest since the war began.
Do Obama and Clinton and Reid now acknowledge that they were wrong? Are they willing to say the surge worked?
No. It’s apparently impermissible for leading Democrats to acknowledge — let alone celebrate — progress in Iraq. When asked recently whether she stood behind her “willing suspension of disbelief” insult to General Petraeus, Clinton said, “That’s right.”
When Obama was asked in the most recent Democratic presidential debate, “Would you have seen this kind of greater security in Iraq if we had followed your recommendations to pull the troops out last year?” he didn’t directly address the question. But he volunteered that “much of that violence has been reduced because there was an agreement with tribes in Anbar Province, Sunni tribes, who started to see, after the Democrats were elected in 2006, you know what? — the Americans may be leaving soon. And we are going to be left very vulnerable to the Shias. We should start negotiating now.”
But Sunni tribes in Anbar announced in September 2006 that they would join to fight Al Qaeda. That was two months before the Democrats won control of Congress. The Sunni tribes turned not primarily because of fear of the Shiites, but because of their horror at Al Qaeda’s atrocities in Anbar. And the improvements in Anbar could never have been sustained without aggressive American military efforts — efforts that were more effective in 2007 than they had been in 2006, due in part to the addition of the surge forces.
Last year’s success, in Anbar and elsewhere, was made possible by confidence among Iraqis that U.S. troops would stay and help protect them, that the U.S. would not abandon them to their enemies. Because the U.S. sent more troops instead of withdrawing — because, in other words, President Bush won his battles in 2007 with the Democratic Congress — we have been able to turn around the situation in Iraq.
Labels: Iraq, William Kristol, wingnuttia
Bill Cheney, chief economist at John Hancock Financial Services, puts the odds of a recession as high as 40 percent. "There are a lot of headwinds and the economy probably has enough momentum to get through, but when things get rough, there are a lot of ways things could go wrong," Cheney said.
The fear is that people will clamp down on the spending and businesses will put a lid on hiring and capital investment, sending the economy into a tailspin.
By one rough rule of thumb, a recession occurs when there are two consecutive quarters -- six straight months -- when the economy shrinks.
The National Bureau of Economic Research, the recognized arbiters for dating recessions, uses a more complicated formula. It takes into account such things as employment and income growth. By that measure, the last recession was in 2001, starting in March and ending in November.
Tax rebates aimed at stimulating the economy were part of Bush's $1.35 trillion in tax cuts in 2001. They were credited with helping to make the recession short and mild.
Strong evidence is emerging that consumer spending, a bulwark against recession over the last year even as energy prices surged and the housing market sputtered, has begun to slow sharply at every level of the American economy, from the working class to the wealthy.
The abrupt pullback raises the possibility that the country may be experiencing a rare decline in personal consumption, not just a slower rate of growth. Such a decline would be the first since 1991, and it would almost certainly push the entire economy into a recession in the middle of an election year.
There are mounting anecdotal signs that beginning in December Americans cut back significantly on personal consumption, which accounts for 70 percent of the economy.
A raft of consumer companies — high-end stores like Nordstrom and Tiffany, and middle-of-the-road ones like Target and J. C. Penney — reported a pronounced slowdown in growth last month, and in several cases an outright drop in business.
American Express said that starting in early December the growth in the rate of spending by its 52 million cardholders, a generally affluent group of consumers, fell 3 percentage points, from 13 percent to 10 percent, the first slowdown since the 2001 recession.
And consumer confidence, an important barometer of economic health, has plunged. Andrew Kohut, president of the Pew Research Center, says consumer satisfaction with the economy has reached a 15-year low, according to the firm’s polling.
Even wealthier consumers, who were seen as invulnerable to rising gasoline prices and falling home values, are feeling the squeeze.
“People are clearly concerned that we are headed into a recession,” said Stephen I. Sadove, the chief executive of Saks Fifth Avenue, the upscale department store whose runaway growth throughout much of the year slowed markedly in December.
Gia Trumpler, 37, a travel consultant who lives in Manhattan, shops at luxury chains like Saks. But she is trimming costs where she can by bringing lunch to work from home, rather than eating out. “Everything just feels more expensive to me now,” she said, including the cost of heating her apartment this winter.
[snip]
There are some bright spots now in consumer spending. Sales of sports gear and electronic gadgets — particularly G.P.S. navigation devices and flat-panel television sets — have risen over the last three months. To Stephen Baker, vice president for industry analysis at the research firm NPD Group, that suggests there is still enough purchasing power for people to buy what they really want.
“We probably would not have seen strong sales for electronics products that people really want if the overriding issue was economic,” Mr. Baker said.
Labels: economic death watch

Labels: Chris Matthews, MSNBC, Tim Russert

Such a payout would come on top of huge gains Mozilo has made selling Countrywide stock during the mortgage crisis. As the mortgage industry went into a nose dive in late 2006 and 2007, Mozilo cashed out about $140 million in stock options, becoming one of the highest-paid executives in the country, the L.A. Times reported in November.
The newspaper reports tonight that in his contract agreement, which extended the 69-year-old's employment contract through 2009, Mozilo was guaranteed three times his base salary, plus a cash payment equal to three times the greater of his average bonus or the incentive bonus paid the previous year. Net value: $87.8 million.
In addition, Mozilo has two pensions that his severance agreement gives him the right to receive as a lump sum upon his departure. Those pensions were worth $24 million as of December 2006, the last time the company was required to report their value.
There is more. The Times reports Mozilo would receive continuing health benefits for life for himself and his spouse, three years of life and financial planning benefits, and "tax-gross-up payments" to compensate him for any penalties he'd have to pay for receiving payments the IRS might consider excessive.
Given the slashing of 10,900 jobs at Countrywide this year, and the 81% decline in Countrywide stock over the last year, it is likely Mozilo's severage package will prove more controversial than his previous stock sales.
Guess who's helping Bank of America pay for its $4.1 billion purchase of Countrywide Financial? Answer: The taxpayers of the United States.
That's because Bank of America (BAC, Fortune 500), which is solidly profitable, will be able to use some of Countrywide's losses to offset its own taxable income. The tax break could total about half a billion dollars over the first five years, according to an estimate by tax guru Robert Willens, who left Lehman Brothers Friday after a 20-year run and will be in business as Robert Willens LLC starting next week. The losses could be worth considerably more to Bank of America starting in the sixth year, depending on how big Countrywide's losses are when Bank of America formally acquires it.
At this point, of course, no one knows how much in losses Countrywide has run up since the junk mortgage market began souring and defaults accelerated. Countrywide (CFC, Fortune 500) itself probably doesn't know. But it seems almost certain to ultimately be in the billions.
In tax circles, Bank of America is famous for its 1988 purchase of the failed FirstRepublic Bank of Dallas, which was being auctioned off by federal regulators. Bank of America, then known as NCNB Corp., the parent of North Carolina National Bank, discovered a way to structure the deal to save $1 billion of taxes, using a convoluted strategy that none of the other bidders knew about. That allowed NCNB to outbid its rivals for the bank, and still come out way ahead.
The Countrywide tax break isn't in that league, but it would still be worth a lot of money. Willens estimates that Bank of America will be able to deduct $270 million of Countrywide's losses annually for the first five years it owns the firm.
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A $270 million annual deduction would save Bank of America something more than $100 million a year in federal and state income taxes. The long-term tax-exempt rate, which is based on Treasury rates and other things so complicated that they make my teeth hurt. The rate changes each year, Willens says, but not by much. When I asked how it's calculated, Willens, a master of tax arcana, threw up his hands. (Metaphorically, of course.) "It's like the formula for Coca-Cola," he said, "no one outside the circle knows it" and it's so complicated that, "no one else wants to find out."
So over the first five years, Bank of America can use a total of $1.35 billion of Countrywide's losses to shelter its income. (That's five years of $270 million annual losses.) If Countrywide's embedded losses when Bank of America buys it exceed $1.35 billion, Willens says, the bank will be able to deduct the rest of the losses, without limit, starting in the sixth year.
Labels: corporatism, greed, mortgage crisis
