What I hate about blogging.

Monday Business Edition

I hate repeating myself, and yet I feel people need to be reminded about… well… facts.

Archaeology is the search for fact… not truth. If it’s truth you’re looking for, Dr. Tyree’s philosophy class is right down the hall.

I woke up this morning convinced that someone, somewhere would be picking up on the fact that this “Tax Cut Stimulus Deal” is actually a A TAX HIKE for any Household in America making less than $40,000 a year (WHICH IS JUST ABOUT 50% OF THEM!) so your average Millionaire can pocket $70,000 a year.

And there’s the totally non-stimulative nature of continuing the Bush Tax Cuts for the Weathiest 2% to begin with.  Over 10 years it hasn’t contributed a single job AND people already have that money, they’re not going to be doing anything new with it.  Washington/Wall Street Economics just doesn’t add up in the ways (DID I MENTION A TAX HIKE ON 50% OF HOUSEHOLDS?) people understand.

And now Obama weighs effort to overhaul tax code.

I suppose I’m not surprised so much as appalled.

Tax Cuts don’t work.  Supply Side Trickle Down Voodoo Economics is a fraud.

But if you’re going to buy into that and get past your hefting bigotry and prejudice, then Mitt Romney is your boy and he’ll kick Obama’s ass.

Bloomberg denies interest, Dean and Feingold also, but blood is in the water.

One Term?  He’ll be lucky to make it to ’12 because he’ll be impeached over his corrupt deals on the Health Insurance Companies Welfare Mandate.

Can’t say I disagree.

The Why-Should-I-Get-Out-Of-My-Chair Gap in 2012

Robert Reich

Sunday, December 12, 2010

In the 2010 midterm elections Democrats suffered from a so-called “enthusiasm gap.”

If Dems agree to the tax plan just negotiated by the White House with Republican leaders, they’ll face a “why-should-I-get-up-out-of-my-chair” gap that will make 2010’s Dem enthusiasm seem like a pep rally by comparison.

It’s a $70,000 gift for every millionaire, financed by a gigantic hole in the federal budget that will put on the cutting board education, infrastructure, and everything else most other Americans need and want.

Business News below.

From Yahoo News Business

1 OECD warns eurozone on debt

AFP

Mon Dec 13, 4:54 am ET

PARIS (AFP) – Eurozone nations are enjoying a sustained if muted recovery but need to adopt biting sanctions to correct economic imbalances and must soon begin to cut their massive debt loads, the OECD said on Monday.

The eurozone should also put in place a permanent crisis resolution mechanism that would force nations to carry out reforms to get aid, the OECD said, an issue European leaders are expected to tackle at a summit later this week.

In its latest survey of the 16 nations which share the euro, the Organisation for Economic Cooperation and Development said a “gradual and sustained recovery” is underway in the but that “the pace of recovery is likely to be muted…”

2 Moody’s says Spain banking outlook "negative"

by Katell Abiven, AFP

52 mins ago

MADRID (AFP) – Credit rating agency Moody’s issued a negative outlook on Spain’s banks on Monday and warned that total economic losses could reach 176 billion euros.

New York-based Moody’s Investors Service said it was maintaining a negative view for the next 12-18 months because it expected Spanish banks’ capital, profits and access to finance to remain weak.

The verdict comes as Spain battles to convince nervous markets that its finances are solid and there is no reason to fear it will need an Irish-style economic and banking rescue.

3 Pharma major Sanofi extends bid for Genzyme

by Martin de Montvalon, AFP

1 hr 41 mins ago

PARIS (AFP) – French pharmaceutical giant Sanofi-Aventis said on Monday it had extended its bid for US biotechnology group Genzyme without improving an offer that attracted only a fraction of Genzyme shares.

Sanofi’s original offer of 69 dollars per share, launched October 4 after months of fruitless talks with Genzyme, expired at midnight New York time on Friday.

As the deadline ran out, the offer had attracted only 0.9 percent of Genzyme’s total ordinary shares in circulation.

4 Australia unveils sweeping banking reforms

by Amy Coopes, AFP

Sun Dec 12, 7:14 am ET

SYDNEY (AFP) – Australia unveiled tough changes to finance laws on Sunday, banning unpopular mortgage fees and cracking down on price collusion between major banks in a bid to boost competition in the sector.

Treasurer Wayne Swan said the reforms aimed to empower consumers, bolster smaller lenders and secure credit flows to both consumers and business, pledging a “fair go in the banking system”.

Targeting Australia’s “big four” banks, the reforms ban exit fees on new home loans and allow the competition regulator to prosecute lenders for colluding on rates, after large hikes sparked an angry consumer backlash.

5 Trichet: Spain must ‘deepen’ labour reforms

AFP

Fri Dec 10, 2:17 pm ET

MADRID (AFP) – European Central Bank President Jean-Claude Trichet urged Spain on Friday to expand a labour market overhaul and deepen pension reforms, saying both were “essential” to its prosperity.

Spurred by market fears of a Greek-style debt crisis, Spain’s Socialist government has embarked on reforms to make it easier to hire and fire workers, and it plans to raise the retirement age.

“It is extremely important to deepen the reform of the labour market, to have deep reforms of the pensions” system, Trichet told a news conference in Madrid.

6 Fed vs Obama: rates up on tax deal

By Pedro Nicolaci da Costa, Reuters

36 mins ago

WASHINGTON (Reuters) – What the Federal Reserve giveth, Obama taketh away.

The central bank’s $600 billion stimulus plan was supposed to lower interest rates. But President Barack Obama’s tax deal with Republicans, by rekindling fears of budget deficits in the bond market, has pushed them higher.

As the Fed meets this coming week, the surprise shot in the arm from the fiscal authorities might strengthen the case of hawks at the central bank, who think the economy is already growing of its own momentum. They could argue to scale down the $600 billion in bond purchases announced in November.

7 Grocery chain A&P files for bankruptcy

By Michael Erman and Caroline Humer, Reuters

58 mins ago

NEW YORK (Reuters) – Grocery store chain Great Atlantic & Pacific Tea Co (GAP.N) filed for bankruptcy on Sunday, drained of cash by tough competition and a sluggish economic recovery.

Once the largest U.S. grocer, the owner of about 400 stores under brands such as A&P, Waldbaum’s and Super Fresh filed for Chapter 11 bankruptcy in New York with more than $1 billion in assets and more than $1 billion in debt, according to court documents.

As of September 11, A&P had total debt of more than $3.2 billion, but it is unclear how much the company is currently carrying.

8 Sanofi extends $18.5 billion Genzyme offer to January 21

By Caroline Jacobs, Reuters

1 hr 37 mins ago

PARIS (Reuters) – Sanofi-Aventis (SASY.PA) has extended its snubbed $18.5 billion cash bid for U.S. biotech group Genzyme (GENZ.O) by six weeks, buying the French drugmaker time to persuade its reluctant target to talk.

Only 0.9 percent of shares were tendered by a Friday deadline for the $69-a-share bid, which Genzyme has rejected as too low, and Sanofi has said it won’t raise unless Genzyme’s board is willing to talk.

“This gives time to pursue discussions behind the scenes,” Raymond James analyst Eric Le Berrigaud said. “They will try to determine at what price Genzyme will decide to partially open the door.”

9 Cosmopolitan casino aiming for the "curious" in Las Vegas

By Deena Beasley, Reuters

Sun Dec 12, 11:40 pm ET

LAS VEGAS (Reuters) – Billed as “polish without pretense,” the latest, and likely the last for at least the next decade, new casino-resort will open this week on a Las Vegas Strip still grappling with a weak economy.

The $3.9 billion Cosmopolitan of Las Vegas, owned by Germany’s Deutsche Bank after it foreclosed on the original developer in 2008, will open 2,000 of its 3,000 hotel rooms on Wednesday.

Television commercials — featuring pantless bellboys and plenty of white rabbits — are on heavy rotation in markets like nearby Southern California, but industry experts are wary about the new venue’s ability to attract new business to the Strip.

10 Is Santa Claus rally almost done?

By Edward Krudy, Reuters

Sun Dec 12, 11:53 am ET

NEW YORK (Reuters) – The December rally may be reaching its climax, with just two weeks to go before Santa Claus makes his midnight run. Dwindling volume, excess optimism, and history all point to a stock market that could be running out of steam.

Investors appear to have grown complacent as the CBOE Volatility Index, or VIX (.VIX), has fallen to levels not seen since April. Stocks have made new highs on almost a daily basis. The S&P 500 (.SPX) closed on Friday at its highest level since September 2008 and the Nasdaq (.IXIC) scored its best finish since late December 2007, with many expecting gains to run through the end of the year.

But Cleveland Rueckert, an analyst at Birinyi Associates in Stamford, Connecticut, believes the year-end rally may be largely done.

11 Governments, not ECB, should solve debt crisis: ECB’s Stark

Reuters

Sat Dec 11, 3:58 pm ET

FRANKFURT (Reuters) – Governments, not the European Central Bank, have to solve the sovereign debt crisis, one of the bank’s top policymakers Juergen Stark was quoted as saying on Saturday.

ECB policymakers have become increasingly vocal in urging governments to take action to tackle the current debt crisis, which has forced a near 200 billion euro bailout of Greece and Ireland, and put pressure on countries like Portugal and Spain.

They fear that if the problems escalated further they would be forced to ramp up the bank’s controversial purchases of sovereign bonds, something they are eager to avoid.

12 France wants broad debate to push G20 goals: Lagarde

By Catherine Bremer, Reuters

Sat Dec 11, 7:24 am ET

PARIS (Reuters) – France wants a wide international debate as it takes over the G20 presidency to drive its plans for an overhaul of the global monetary system and economic governance, Economy Minister Christine Lagarde said on Saturday.

Lagarde told a meeting of some of France’s top economic policymakers and thinkers that the 2008-09 crisis had shown the need to rethink a monetary framework based on 40-year-old ideas that are increasingly outdated.

France wants to focus on ways to control the huge and erratic shifts in capital that buffet emerging economies and on moving away from the dollar as a reserve currency to a diversified system that would reduce imbalances.

13 Boston emerges as a major hub in insider probe

By Matthew Goldstein and Svea Herbst-Bayliss, Reuters

Fri Dec 10, 5:20 pm ET

NEW YORK/BOSTON (Reuters) – Think of hedge fund hubs in the United States, and the names that tend to come to mind are New York and Greenwich, Connecticut. Yet when it comes to a major U.S. insider trading investigation, Boston is taking center stage.

A number of the traders and analysts drawing scrutiny in the more than two-year-old probe into improper trading in mainly technology stocks either work in Boston, or have long-standing ties to New England’s largest city.

The series of Boston connections that keep cropping up in the probe is no mere coincidence, said people familiar with the inquiry.

14 American lawmakers press China ahead of talks

By JOE McDONALD, AP Business Writer

Sun Dec 12, 10:14 pm ET

BEIJING – American lawmakers are pressing China for action on currency and high-tech trade in talks this week, and a planned Washington visit by President Hu Jintao next month has raised hopes Beijing might offer concessions.

The meeting of the U.S.-China Joint Commission on Commerce and Trade on Tuesday and Wednesday in Washington comes as Beijing faces rising congressional pressure over its swollen trade surplus. The U.S. House of Representatives has approved a measure to allow Washington to punish currency manipulation and the Senate is considering it.

Both sides are likely hoping for a “successful meeting with some deliverables” ahead of Hu’s arrival in Washington in January, said Christian Murck, president of the American Chamber of Commerce in China.

15 Stylish Cosmopolitan in Las Vegas needs every edge

By OSKAR GARCIA, Associated Press

Sun Dec 12, 4:24 pm ET

LAS VEGAS – The last major Las Vegas resort approved before the Great Recession will have to lure thousands of gamblers from established neighbors to survive after it opens Wednesday.

The $3.9 billion Cosmopolitan of Las Vegas, built by a German investment bank after its original developer defaulted, may have the hippest-ever TV commercials: Over a garage rock soundtrack with a jazzy interlude, guests with crafty smiles stray across a landscape of shiny dance floors, soothing guest rooms and tables laden with food and drink.

But the 2,995-room Cosmopolitan is entering a market that’s struggling. And analysts say that just to cover its debt, it will need to do better than even the top-performing Bellagio, its neighbor to the north with 3,933 rooms and the same amount of casino space as Cosmopolitan.

16 Web video future at heart of Comcast, NBC review

By JOELLE TESSLER, AP Technology Writer

Sun Dec 12, 3:17 pm ET

WASHINGTON – It won’t be long before video from the Internet is always within reach – whether it’s on a smart phone, a tablet computer or a high-end television in your living room.

But what if there’s nothing worth watching?

Just as the online video market is starting to take shape, federal regulators have a rare opportunity to help protect its future as they scrutinize Comcast Corp.’s proposal to take over NBC Universal.

17 Payroll tax cut worries Social Security advocates

By STEPHEN OHLEMACHER, Associated Press

Sun Dec 12, 2:43 pm ET

WASHINGTON – President Barack Obama’s plan to cut payroll taxes for a year would provide big savings for many workers, but makes Social Security advocates nervous that it could jeopardize the retirement program’s finances.

The plan is part of a package of tax cuts and extended unemployment benefits that Obama negotiated with Senate Republican leaders. It would cut workers’ share of Social Security taxes by nearly one-third for 2011. Workers making $50,000 in wages would get a $1,000 tax cut; those making $100,000 would get a $2,000 tax cut.

The government would borrow about $112 billion to make Social Security whole. Advocates and some lawmakers worry that relying on borrowed money to fund Social Security could eventually force it to compete with other federal programs for scarce dollars, leading to cuts.

18 Analysis: On climate, the elephant that’s ignored

By CHARLES J. HANLEY, AP Special Correspondent

Sat Dec 11, 3:02 pm ET

CANCUN, Mexico – The latest international deal on climate, reached early Saturday after hard days of bargaining, was described by exhausted delegates as a “step forward” in grappling with global warming. If they step too far, however, they’re going to bump into an elephant in the room.

That would be the U.S. Republican Party, and nobody at the Cancun meetings wanted to talk about the impending Republican takeover of the U.S. House of Representatives. It essentially rules out any new, legally binding pact requiring the U.S. and other major emitters of global warming gases to reduce their emissions.

In endless hours of speeches at the annual U.N. climate conference, the U.S. political situation was hardly mentioned, despite its crucial role in how the world will confront what the Cancun final documents called “one of the greatest challenges of our time.”

19 OPEC ministers make no change in output

By FRANK BAJAK, AP Business Writer

Sat Dec 11, 8:11 pm ET

QUITO, Ecuador – OPEC ministers decided Saturday to keep oil output at current levels, citing ample inventories amid persisting global economic uncertainty and a price of just under $90 a barrel.

The 12-member cartel said after an unusually short meeting that it based its decision on projections showing demand for crude would grow more slowly in 2011 than this year.

It’s statement also cited the “challenging risks to the fragile global economic recovery” including “fears of a second banking crisis in Europe.”

20 Agreement sought on Afghan-Pakistan gas pipeline

By ALEXANDER VERSHININ and PETER LEONARD, Associated Press

Sat Dec 11, 6:38 am ET

ASHGABAT, Turkmenistan – The leaders of Afghanistan and Pakistan were in the capital of gas-rich Turkmenistan Saturday to push forward on ambitions to build a pipeline across their countries.

The pipeline, which would terminate in India, would bring huge amounts of gas to underdeveloped regions and could earn impoverished Afghanistan hundreds of millions of dollars in transit fees. But it would cross both Taliban-intensive stretches of Afghanistan and parts of Pakistan’s unruly tribal areas.

The leaders, along with Turkmenistan’s president and India’s oil minister are expected to sign a document expressing support for the project. The next step would likely be to seek proposals and bids from energy companies.

21 Bucking trend, Bolivia lowers retirement age to 58

By PAOLA FLORES and FRANK BAJAK, Associated Press

Fri Dec 10, 9:28 pm ET

LA PAZ, Bolivia – Bolivia enacted a law Friday lowering the country’s retirement age to 58, bucking a global trend in which countries push people to work longer to counteract the burden on national treasuries of rising life expectancy.

Critics say the law, which also nationalizes the pension system and generously extends coverage to the poor, is overly ambitious and unsustainable.

Leftist President Evo Morales signed the bill surrounded by members of the powerful Bolivian workers federation, which helped draft the law.

22 Hunting traditions sag as land, desire disappear

By TODD RICHMOND, Associated Press

28 mins ago

MADISON, Wis. – Classroom desks and office cubicles stand empty. Hunters in blaze orange stand out like drops of bright paint against brown fields. Pub parking lots are crowded with pickup trucks draped with deer carcasses.

This is Wisconsin’s gun deer season, a tradition as engrained in this rugged state’s identity as beer, brats and cheese. But as the years slide by, fewer people seem to care.

Hunting’s popularity has waned across much of the country as housing tracts replace forests, aging hunters hang up their guns and kids plop down in front of Facebook rather than venture outside.

23 Urban Phoenix mansions reborn at half price

By BOB CHRISTIE, Associated Press

Sun Dec 12, 1:20 pm ET

PHOENIX – Modeled on a turreted 1890s-era mansion, the sturdy, brick Chateaux on Central seems an unlikely symbol for the nation’s devastating housing collapse.

But the luxury 21-unit project just north of downtown Phoenix was halted in mid-development, chained and padlocked, marred by a suicide, its rear units partially without roofs and exposed to the elements. And so it sat, month after month, years passing, the only sign of life the occasional sweep of a police spotlight as officers checked for vagrants.

Now, more than five years after construction began, a new investor is putting the townhomes on the market for $1.4 million to $2.46 million – half the original price – and optimists hope it shows that big residential projects are poised to sell after being shuttered by failed lenders or plummeting prices.

24 Farmers across the South contend with drought

By RAY HENRY, Associated Press

Sun Dec 12, 11:27 am ET

LYONS, Ga. – Farmer Aries Haygood grabbed the top of a freshly planted onion and gave it a gentle pull. The green plant sprang from the ground with little resistance, a sign its roots weren’t grabbing hold because the powdery soil is too dry.

“Right now, we should start seeing that the roots are catching, and they’re not,” said Haygood, who was supervising planting of Vidalia onions on his fields. “The main reason is because we have not had the rain on them.”

Farmers across the South are contending with abnormally dry weather and a drought that began this spring. Crops in dry fields then baked during stretches of record-setting summer heat that scorched peanut fields, stressed cotton plants and stunted citrus fruit.

2 comments

    • on 12/13/2010 at 15:50
      Author
    • on 12/13/2010 at 16:07

    $1.4 to $2.46 million for what amounts to a studio/2 bedroom apartment. Some Americans will throw their money at anything because they can.

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