What’s news today?
The hits to their story just keep on coming.
From CBS
“CBS News has obtained the CIA talking points given to U.N. Ambassador Susan Rice on Sept. 15 regarding the fatal attack on the U.S. Consulate in Benghazi, Libya, four days earlier. CBS News correspondent Margaret Brennan says the talking points, which were also given to members of the House intelligence committee, make no reference to terrorism being a likely factor in the assault, which left U.S. Ambassador Chris Stevens and three other Americans dead.
Rice, who was considered a likely nominee to replace Hillary Clinton as secretary of state, has been attacked by Republican lawmakers for saying on “Face the Nation” (video) on Sept. 16 that all indications were the attack “began spontaneously” – suggesting it likely sprang from a protest against an anti-Muslim video found on the Internet. Protests of that nature had been seen in other Muslim nations in the days and weeks before the Benghazi attack.”
Budgets? BUDGETS! We don’t need no stinkin’ budgets!
From TheHill
“Sen. Patty Murray (D-Wash.) confirmed Thursday that she will seek the chairmanship of the Senate Budget Committee next year but told The Hill that she cannot commit to doing a budget. This opens up the possibility that Senate Democrats will avoiding passing a budget resolution for the fourth year in a row.”
“Sessions said. “It is very distressing to me that Sen. Reid has, for political reasons, not allowed Senate Democrats to be on record for anything.”
“They don’t need a single Republican vote to pass a budget,” he said.
Unlike most bills, the budget resolution cannot be filibustered on the floor and it takes only 51 votes to pass. Democrats will control 55 seats next year.”
GOP leaders are backing Allen West’s calls for a recount. Shocking right?
From TheWashingtonTimes
“State and national Republican Party officials are getting behind Rep. Allen B. West’s call for a recount of all early votes in St. Lucie County, Fla., saying it would be “unconscionable” not to answer lingering questions about the results, which show the outspoken GOP lawmaker trailing Democratic challenger Patrick Murphy.”
“The congressman has gone to court to ask for the full recount, and his case is slated for a hearing on Friday.
“The supervisor of elections owes it to the people that elected her to count all of their votes that were cast early in the 2012 election cycle,” Florida Republican Party Chairman Lenny Curry said in a statement Thursday. “She has already admitted there was a problem with the counting process and announced she would count all the votes. It makes no sense to arbitrarily cut off the counting process before it was finished.”
Jobless claims spiked last week. Also not shocking.
Bloomberg blames Hurricane Sandy.
“More Americans than forecast submitted claims for unemployment insurance and factory production declined in the northeastern U.S. after superstorm Sandy struck the region.
Applications for jobless benefits surged by 78,000 to 439,000 in the week ended Nov. 10, the most since April 2011, the Labor Department said today in Washington. Indexes of manufacturing in the New York and Philadelphia areas showed contractions this month.
The reports add to evidence of the economic toll taken by Sandy, which killed more than 100 people in the U.S., disrupted rail and subway service, left more than 8 million homes and businesses without power for days and caused insured losses estimated at $20 billion. Many of those who lost their jobs were unable to immediately file claims because of the disruption caused by the storm, swelling the numbers last week.”
OK, sounds reasonable. Except this says it was PA. and Ohio that caused the spike.
From Breitbart
“From the Department of Labor press release this morning: In the week ending November 10, the advance figure for seasonally adjusted initial claims was 439,000, an increase of 78,000 from the previous week’s revised figure of 361,000. The 4-week moving average was 383,750, an increase of 11,750 from the previous week’s revised average of 372,000.
Some of the new claims, especially in New Jersey, were due to Hurricane Sandy–but these were offset by a decline in claims filed in New York. The highest numbers of new filings came from Pennsylvania and Ohio, where there were thousands of layoffs in the construction, manufacturing, and automobile industries.
Both states had been targeted by the presidential campaigns. President Obama highlighted his record of job creation in Ohio in particular, focusing on the automobile industry. The state reported 6,450 new jobless claims in the week after the election–second-highest after Pennsylvania, which recorded 7,766 new claims.”
Here we go again. Move over Fannie and Freddie, we’ve got a new housing bailout coming.
From ZeroHedge
“A very important article came out from the Wall Street Journal yesterday titled “FHA Nears Need for Taxpayer Funds,” and it outlines the serious financial problems facing the Federal Housing Administration. For those that are unaware or need a refresher, the FHA has been the key element to the phony “housing recovery” the government has been trying to create. In the wake of the collapse of 2008, Fannie Mae and Freddie Mac blew up and what was left to pick up the pieces was the FHA. No private player would issue loans with down payments of 3%, but this was no problem for the FHA!
Interestingly enough, a lot of the subprime borrowers that blew up the housing market the last time became the primary customers of the FHA. Let’s see, 3% down and subprime borrowers…what could possibly go wrong?! From the WSJ:
The Federal Housing Administration is expected to report this week it could exhaust its reserves because of rising mortgage delinquencies, according to people familiar with the agency’s finances, a development that could result in the agency needing to draw on taxpayer funding for the first time in its 78-year history.
Together with Fannie and Freddie, federal agencies are backing nearly nine in 10 new mortgages.”
Housing market recovery? No.
Insanely doing more of what got us here? Yes.
So what exactly is fitting punishment for an employee who walks off the job, in a planned protest, on your biggest day of the year?
From ClickOrlando.com
“A group of Wal-Mart workers are planning to stage a walkout next week on Black Friday, arguably the biggest holiday shopping day for the world’s largest retail store.
The walkout builds on an October strike that started at a Wal-Mart in Los Angeles and spread to stores in 12 other cities. More than 100 workers joined in the October actions.”
I’d want to fire every single one, but I’m a great big meany, so…..
😡
Wandering Views 
AJ
I don’t understand how the CBS is story is a hit to Ambassador Rice’s contention that she followed the brief she had been given — looks to me like the talking points square with that.
On Senate Dems not wanting a budget — I say: IDIOTS! Now is the time to address the budget, not to play power politics.
Sandy and Pennsylvania — I know this was not well covered in the news because of New York City and the Jersey Shore, but Penn did see some damage. 1.6 million people lost power in Penn and there was wind damage and public transportation was shut down for a bit, so Brietbart might want to read the news a little more closely. I’m not sure what the issue in Ohio, is, but it is reasonable that when a highly populated portion of the country is hit that manufacturing orders would go down and cause knock on effects in a state like Ohio. I know connecting the dots — that takes a more serious consideration of a story …
I’d need to do more research on housing than I have time for this morning to make an in depth comment. The one thing I do note on the fly is that no small part of what got us here includes derivative swaps from Wall Streets biggest financial gurus who found a neat way to make money by passing around bad debt and risks, so it’s not quite the same as what got us here.
Lastly, WalMart walk out — I’ll be shocked if WalMart doesn’t fire them. WalMart fires folks who try to do any labor organizing pretty much summarily.
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In The Future of Freedom, Fareed Zakaria examined the history of developing countries and concluded that the creation of a democratic government before a nation reaches a certain level of economic development and its people attain a certain level of wisdom, can actually be harmful to the cause of freedom.
It is now time for the sequel. I would call places like Greece and the US undeveloping nations. They are becoming poorer and their people are becoming more foolish even as access to the ballot has become universal. At what point in a nation’s undevelopment, does democracy undermine freedom?
In the first book, Zakaria looked at developing countries in Africa, Asia and Latin America. The author of the second book might study Detroit, as that city’s government in recent years has reminded me of Zimbabwe’s.
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CB, My mother-in-law has worked at Walmart for 35 years. She is a receiving clerk. She loves the company, but believes it should fire a number of her co-workers who exhibit a poor work ethic.
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Ricky,
Re Walmart: firing employees that are poor workers is sensible, of course.
On undeveloping countries, I would note that 40 year old infrastrucure in America is a problem of our own doing and is something that could be changed but it isn’t free.
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CB, My mother-in-law has high standards. I’m glad she is not my boss. I am afraid I might be judged to be a “poor worker”. If Walmart ever unionized, she would immediately quit and no doubt find new employment at age 72. She is a good example of why older Hispanics are my favorite people. My wife is the youngest of the “older Hispanics”.
All of America’s problems are of our own doing. All could be changed, but at a cost. What has happened to our infrastructure is merely a reflection of what has happened to our people. I am a poor replacement for my grandparents. Charles Murray is the best chronicler of our deterioration.
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From Drudge. We used to land at Lajes on the way to Europe when I was at Westover. C-97’s couldn’t make it in one flight, and the crew needed a rest.
On June 27, a plane carrying Wen Jiabao made a “technical” stop on the island of Terceira, in the Azores. Following an official greeting by Alamo Meneses, the regional secretary of environment of the sea, the Chinese premier spent four hours touring the remote Portuguese outpost in the middle of the Atlantic Ocean.
……….
Terceira, however, has one big attraction for Beijing: Air Base No. 4. Better known as Lajes Field, the facility where Premier Wen’s 747 landed in June is jointly operated by the U.S. Air Force and its Portuguese counterpart. If China controlled the base, the Atlantic would no longer be secure. From the 10,865-foot runway on the northeast edge of the island, Chinese planes could patrol the northern and central portions of the Atlantic and thereby cut air and sea traffic between the U.S. and Europe. Beijing would also be able to deny access to the nearby Mediterranean Sea
http://www.nationalreview.com/articles/332454/red-flag-over-atlantic-gordon-g-chang#
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Air raid sirens are going off in Jerusalem; the sound of impacts–off a CNN Twitter feed.
I don’t feel very good about what’s happening in that part of the world today. Somewhere I read that Israel was just waiting until after the election before making moves.
My daughter-in-law’s closest childhood friend lives in Tel Aviv with an Israeli husband and two pre-school children. I asked my husband this morning, if that were you, what would you be doing?
He shrugged. Whatever the neighbors were doing.
Me: Not sending the children to their grandparents in west Los Angeles?
Pray for the peace of Jerusalem, yes. Hold your family close.
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Sending the children away for a while is a good choice. The British did it in WW II, when planes had limited range.
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Tokyo Rose would have loved Twitter.
Interesting piece on the unedited tech site’s role in the current Mideast unrest with the growing use of governments & militaries using the feature to spin their side of things:
http://www.cnn.com/2012/11/15/tech/social-media/twitter-war-gaza-israel/index.html?hpt=hp_c1
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CB,
“Sandy and Pennsylvania — I know this was not well covered in the news because of New York City and the Jersey Shore, but Penn did see some damage.”
Really? I did not know that. And here I thought the power was out for a 6 days because I didn’t pay the bill or something.
🙄
Sorry, I couldn’t resist.
🙂
“I don’t understand how the CBS is story is a hit to Ambassador Rice’s contention that she followed the brief she had been given — looks to me like the talking points square with that.”
I don’t think it’s necessarily a hit to her so much as the Obama admin, her Boss Hillary, and the CIA, who provided the FALSE talking points. But I don’t think it’s a stretch to think she knew it was lies as well.
And I know you want to blame Wall St., but it was the govt who forced banks to make these loans in the first place. Wall St. ditched them because they knew it was junk too. You can’t let the govt off the hook for their roll in this. Barney Frank and the “Fannie/Freddie are financially sound” crowd played the biggest, most damaging roll. And as the link from the other day on the Justice Dept releasing new rules threatening to sue those who refuse to make bad loans, because that must mean they’re racists shows, they’re doubling down on the samed failed ideas that got us here. Don’t ignore the obvious.
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And I know you want to blame Wall St., but it was the govt who forced banks to make these loans in the first place. Wall St. ditched them because they knew it was junk too. You can’t let the govt off the hook for their roll in this. Barney Frank and the “Fannie/Freddie are financially sound” crowd played the biggest, most damaging roll. And as the link from the other day on the Justice Dept releasing new rules threatening to sue those who refuse to make bad loans, because that must mean they’re racists shows, they’re doubling down on the samed failed ideas that got us here. Don’t ignore the obvious.
AJ, I see this said all over the place in conservative circles and it just is NOT so. If you had a passig acquaintance with CRA regulations and HMDA reporting, you would no better. I have odne both HMDA and CRA dtata reporting at a bank that is scrupulous in abiding not merely by the letter but by the spirit of those regulationss, and is quite profitable, thank you very much.
No one forces us to make bad loans. What we can’t do, and yes, was prevalent among some banks, is redline – that is, simply draw boundaries around certain low-income or primarily minority sections of the cities where we do business – and decide, a priori that there are no qualified borrowers or properties there.
If we decline a loan we have to also show we did not do it on a prohibited basis, ie race. And yes, you can pick out statistical trends, and these things do happen and do show up in the data.
We did see unscrupulous lenders and firms eager to buy any loan that were the root causes of the housing crisis. It was bottom-feeding firms that knowingly made loans to people who could not pay, and used this as a very convenient excuse for doing so. It was categorically not the CRA or HMDA nor the firms following the law that were to blame, but the bad actors who used such for an excuse.
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CB,
I’m not denying banks played a roll. The way they ditched those mortgages off to others was shady indeed. But you can’t deny the roll govt played in it all.
It’s also why conservatives wanted to let those banks who acted stupidly to fail. But instead, the govt bailed them out, with our money. They should have paid a price, but didn’t. I also don’t doubt for a minute that yhey’ll do the same again, especially now that they know the govt will bail them out. Again. And the govt seems intent on again forcing risky loans to unqualified borrowers.
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I must say this is a pleasant surprise.
http://thehill.com/blogs/floor-action/senate/268363-senate-passes-resolution-condoning-israels-strikes-on-hamas
“The Senate passed a resolution by unanimous consent Thursday night supporting Israel’s strikes on Gaza earlier this week.
S.Res.599 expresses “vigorous support and unwavering commitment to the welfare, security, and survival of the State of Israel as a Jewish and democratic state with secure borders, and recognizing and strongly supporting its right to act in self-defense to protect its citizens against acts of terrorism.””
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Anonymous, you are quite mistaken in your view that exculpates the federal government for the mortgage market meltdown that led to the 2008 recession.
In my view the most cogent analyst of this meltdown is Peter Wallison of AEI whose views are summarized as follows:
Fannie Mae and Freddie Mac were the implementers of a substantial portion of the government’s housing policy. Basically, the government’s housing policy was intended to provide financing to people who were unable for one reason or another—mostly lack of resources—to get mortgage credit. And Fannie and Freddie were agents that the government worked through. However, they also used something called the Community Reinvestment Act. HUD [the Department of Housing and Urban Development], which was basically in charge of all of these programs, also had its own program which involved the mortgage bankers’ association, and there were other HUD programs that encouraged the granting of mortgages to people who didn’t have the financial resources to support them.
In the end, by 2008 there were 28 million subprime or very weak mortgages. Those are known as Alt-A mortgages. That’s half, incidentally, of all mortgages in the financial system. Of that 28 million, 20.4 million were on the books of government agencies like Fannie Mae and Freddie Mac and the FHA [Federal Housing Administration] and other government agencies and banks that were holding them as a requirement of the Community Reinvestment Act, which applied to banks. So that’s why I say that the government’s housing policy was responsible for creating these mortgages. They never would have been created without the government demanding that they be created and providing the funds to buy them.
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Well Patraeus is talking. He says the original CIA talking points refrenced Al-Quaeda, but that other agencies removed the refrences from Rice’s talking points. Yeah Barry and Hillary, what about that?
http://www.cbsnews.com/8301-250_162-57550932/rep-king-cia-story-on-benghazi-changed/
“Former CIA Director David Petraeus told the House Intelligence Committee today that it’s unclear why the Obama administration’s original talking points on the Sept. 11 attack on the U.S. consulate in Benghazi, Libya, don’t match the CIA’s original talking points.”
“House Intelligence Committee member Rep. Peter King, R-N.Y., told reporters that Petraeus insisted today that he was clear with Congress from the start that the event was a terrorist attack. However, King added, Petraeus said that after the CIA prepared its talking points, they were vetted by agencies including the Justice Department and the State Department, but “no one knows yet exactly who came up with the final talking points.”
“The original talking points prepared by the CIA were different than the final ones put out,” King said. Originally, he said, they were “much more specific on al Qaeda involvement.”
Hmmmmm……….
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Yeah, and what a good choice it was. If they hadn’t, the Pevensie kids would never have discovered Narnia. And without them, it would still be winter and never Christmas!
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Ree,
🙂
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🙂
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Hostess looks to be finished. So union leaders, what did this strike accomplish, besides putting 18,000 people outta work?
http://money.cnn.com/2012/11/16/news/companies/hostess-closing/
“Hostess Brands — the maker of such iconic baked goods as Twinkies, Devil Dogs and Wonder Bread — announced Friday that it is asking a federal bankruptcy court for permission to close its operations, blaming a strike by bakers protesting a new contract imposed on them.
The closing will result in Hostess’ nearly 18,500 workers losing their jobs as the company shuts 33 bakeries and 565 distribution centers nationwide, as well as 570 outlet stores. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union represents around 5,000 Hostess employees.
“We deeply regret the necessity of today’s decision, but we do not have the financial resources to weather an extended nationwide strike,” said CEO Gregory Rayburn in a statement.”
“”The industry has overcapacity. We’re overcapacity. Our rivals are overcapacity,” said Rayburn in an interview on CNBC. Asked if the shutdown decision could be reversed if the Bakers’ union agreed to immediately return to work, he responded, “Too late.””
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Here’s another Hostess story. An interesting read for sure.
http://www.zerohedge.com/news/2012-11-16/hostess-liquidation-curious-cast-characters-twinkie-tumbles
“Perhaps one of the most interesting aspects of the just announced Hostess liquidation, one that will be largely debated and discussed in the media, or maybe not at all, is the curious cast of characters and the peculiar history of this particular bankruptcy. Some may not be aware that the company’s Chapter 11 (or colloquially known as 22) bankruptcy filing this January, which today became a Chapter 7 liquidation, was the second one in the company’s recent history, with Hostess, previously Interstate Bakeries, emerging from its previous protracted multi-year bankruptcy in 2009. What is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then “bad.” Only this time there is a twist: because it wasn’t really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters’ long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.
But it only gets better. Because the full cast of characters involved here is quite stunning, as David Kaplan summarized so well recently:”
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Oh where, Oh where is Mrs. Clinton and Mr. Obama we have the Middle East about to go into War. A Hamas again started another war with Israel… It will be only a matter of time when Israel sends in ground troops and start to remove Hamas again from the playing field; the problem is how wills the Muslim Brotherhood that Control Egypt respond?
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Will they order the Egypt Military to come to the aid of Hamas? Will Egypt permitted Iran to send in Air Supports to the aid of Hamas?
If this happens who will Mr. Obama do then? Which side will he take?
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AJ where is the Government Bailout for those poor union workers? Mr. Obama has set the standard that the Government is going to bailout Unions that companices face bankruptcy. Maybe this Union has not given as money to the Dem Party as the Auto Unions, so they are able to get a Government Bailout.
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After reading the Zerohedge link above with this,
“What is curious is that its emergence had all the drama of a anti-Mitt Romney PAC funded thriller, with a PE firm, in this case Ripplewood holdings, injecting $130 million in order to obtain equity control of Hostess as it was emerging last time. There were also more hedge funds, investment banks, strategic buyers, politicians involved in this particular story than one can shake a deep fried numismatic value Twinkie at. More importantly, however, as America has been habituated following the last season of the reality TV show known as the presidential election, if Private Equity then “bad.” Only this time there is a twist: because it wasn’t really PE that was the pure evil in the Obama long-term campaign, it was associating PE with Republicans, and thus: with jobs outsourcing. And here comes the Hostess twist: because Tim Collins of Ripplewood, was a prominent Democrat, a position which allowed him to get involved in the first bankruptcy process in the first place, due to his proximity with the Teamsters’ long-term heartthrob Dick Gephardt (whose consulting group just happens to also be an equity owner of Hostess). In other words, the traditional republican-cum-PE scapegoating strategy here will be a tough one to pull off since the narrative collapses when considering that it was a Democrat who rescued the firm, only to see it implode in a trainwreck that has resulted in the liquidation of a legendary brand, and 18,500 layoffs.”
Then read this.It might be hard to pull off, but it won’t stop them from trying. Cue the idiot Trumka,
http://www.politico.com/news/stories/1112/83979.html
“The Bain attack is back.”
““What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor,” Trumka said in a public statement. “Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price.””
“Trumka’s comparing Hostess to Bain comes after an election in which former GOP presidential nominee Mitt Romney was criticized for co-founding Bain Capital.
The union leader took the workers’ the side, saying Hostess’ leaders and policies were “wrecking America.””
Someone sure is clown. Here’s a hint about who. Take a look in the mirror, and there’s your answer.
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Roy,
SSHHHHHHHHHHH……..
Don’t go given ’em ideas.
🙂
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Progressives offer a bigger lifeline.
Conservatives offer more opportunity.
Progressives say conservatives offer tricked down economics.
Conservatives say progressives offer trickle down government.
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D’Souza, op. cit. p. 205
Muslim leaders say they need an Islamic revival. “……the fundamentalists must take over a major state. The state would then provide a beachhead for launching the takeover of other Muslim countries. The ultimate objective, repeatedly stressed by Ben Laden and others, is the unification of the Muslim community into a single Islamic nation. Governed by Islamic holy law.”
This is what happened with Iran. Muslim leaders consider Turkey, (previous) Egypt, etc. not to be truly Islamic states. They are in the process of correcting that. They want a unified caliphate under the control of one man. And we have assisted them in this. It also supports Shoebat, God’s War on Terror who says that Islam will be unified and the Mahdi will appear. We call him the Antichrist.
I am not prophesying here, but it looks mighty close.
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One of the issues in the Hostess labor negotiation was whether to continue birthdays as a holiday. The union wouldn’t budge.
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They won – they get their birthdays off now.
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Well Sails all 18,000 plus are now part of Mr. Obama army of people who lost their jobs and good luck in finding one.
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Actually, Since the First Lady declared war on junk foods, the President probably wants Hostess and other junk food companies out of business.
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Susan Rice’s miserable record at the UN
By Richard Grenell
Published November 15, 2012
FoxNews.com
Read more: http://www.foxnews.com/opinion/2012/11/15/susan-rice-miserable-record-at-un/?intcmp=obnetwork#ixzz2CQohNYI1
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Sails, I am sorry, but you are just wrong in viewing CRA as the primary cause of the housing bubble.
No one FORCED banks to make bad or risky loans. They were merely required NOT to practice discriminatory practices with respect to redlining or not serving certain parts of their markets.
Shoot, back in around 1990, I did an internship at a largish bank (before I ever thought I would wind up working in the mortgage industry), and they analyzed CRA and how it impacted them. Subject to some minor tweaks, they were all for it. They knew redlining and discrimination in the loan approval process was wrong, they didn’t do it, and they wanted all banks held to the same high standards they practiced.
If you want a long but cogent analysis, check the following article, especially the section beginning at page 1214.
Click to access LevitinWachter.pdf
Unregulated derivatives and private issue securities that lumped together the riskiest of loans and passed off dross as gold are far more to blame in this fiasco.
I will agree with you on one point. The large banks should not have been bailed out. The bank I interned at, and the bank I work at now, followed the rules you like to criticize, understood the need for them, and have continued to be profitable for years before and after this crisis. The banks that caused it, not so much. Let ’em fail, and your honest bankers will pick up the pieces.
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