08/23/2011 archive

Find out why Congressman Lamar Smith of Texas is WORSE, Tony Perkins of the Family Research Council is WORSER, and Congressman Eric Cantor of Virginia, is the WORST PERSON IN THE WORLD for August 22, 2011.

Since the tremor has now taken over the news. This is a hint that Mother Earth is annoyed with us and wants us off her rock, making it a good reason to fund the space program.

My commute home will suck and there is no bar at the Ferry terminal anymore.

5.9-Magnitude Earthquake Strikes East Coast

An earthquake sent tremors from the nation’s capital to New York City and New England Tuesday afternoon, the result of what officials said was a 5.9 magnitude earthquake based in Virginia.

Buildings throughout major metropolitan centers in the northeast were evacuated after the quake, and tremors were felt as far north as Concord, N.H., and as far south as Hampstead, N.C., with some limited reports of damage reported near the quake’s epicenter in Virginia, where a nearby nuclear power plant was taken offline.

The streets of downtown Washington filled with thousands of people on Tuesday afternoon as buildings from the capital to the White House were evacuated.

A mild shake and tremble could be felt shortly before 2 p.m. The movement lasted no more than 30 seconds in downtown Washington.

Obama was on the golf course but unknown if his game was interrupted.

Ah yes, exceptional Americanism or American exceptionalism.

You know, whatever.

The 787 project has been delayed for over 4 years now, principally due to the fact that Boeing outsourced all the parts to nickle and dime their highly skilled and unionized labor force to death.

Unsurprisingly when they got them back for assembly they didn’t fit together.

Now this is a problem that was solved by one of Connecticut’s favorite sons, Eli Whitney, in 1798 because he needed some money after making institutionalized slavery profitable (we are proud of our Benedict Arnolds here in the Nutmeg State) but apparently ideas like interchangeability take a long, long time to get over the the Oregon trail to Washington.

And so as a consequence there are airports full of uncompleted 787s in various stages of decrepitude, covered in plastic tarps and weighed down with high tech cinder blocks so they don’t blow away.

Boeing’s 787 Glut Casts $16.2 Billion Cloud Over FAA Approval

By Susanna Ray, Bloomberg News

Aug 23, 2011 12:01 AM ET

Boeing amassed $16.2 billion worth of inventory related to the 787 through June 30, with so many almost-finished jets the company ran out of room to park them. There are 35 scattered outside the Everett, Washington, plant, in leased space across an adjacent airfield and in a facility in Texas. Many lack seats and lavatories and have black plastic over the windows and concrete blocks hanging from the wings to keep them from tipping over before engines are installed.

…

The mothballed jets represent almost $6 a share in inventory growth since 2009. Counting four planes in the factory and six test jets, Boeing has more 787s on hand than Richard Branson’s Virgin Atlantic Airways has planes in service.

…

Credit-default swaps tied to Boeing bonds, which rise as investor confidence falls, closed yesterday at the highest since Dec. 7, 2009, gaining 1.3 basis points to 84.5 basis points, according to data compiled by CMA. A basis point is $1,000 a year on a contract protecting $10 million of debt.

…

Boeing can “eat some of the dirt of the inventory cost” by spreading it out over the initial block of 787s, using so- called program accounting, said Demisch, the consultant. The company plans to reveal the size of that accounting block with its third-quarter earnings in October.

…

The 45th plane to be built — in the factory now — will probably cost Boeing at least $184 million, Harned estimated after analyzing inventory figures. That would make the average cost over the first 1,000 jets, including a learning curve, at least $116 million per plane, he projects. FAA approval this week after a flight-test program that began in December 2009 would set the stage for delivery of the first 787 to All Nippon Airways Co. next month.

…

Each plane is in a different state of readiness, since Boeing kept improving processes after the jets began rolling out of the factory in 2009.

They have undergone waves of repairs based on testing discoveries, and numerous jobs remain on “various and sundry components” before they’re ready for delivery, said Scott Fancher, Boeing’s 787 chief.

…

“Anytime you’re building an airplane out of sequence, the amount of work that’s required probably goes up by a factor of 10, because they have to unbuild all the things you built on top of whatever you have to change, and then build it all back,” said Demisch, the consultant. “It’s better than starting the airplanes from scratch, but it’s cost that will be added to production and make the likelihood of a profit on this program over the next half-dozen years very, very low.”

As much as I hate flying in general, let me just say I can’t wait to strap myself into one of those puppies.

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Not All Recessions Are Created Equal

Earlier this month, The Financial Times linked to a post by commentator Mike Shedlock about the failure of Keynesianism. I’m not sure why: the post was a standard-issue evidence-free rant. But there is something interesting about it, all the same: None of the alleged policy mistakes used to declare Keynesian economics a failure have anything to do with Keynesian economics.

Here’s the list cited by Mr. Shedlock. Written by Urs Paul Engeler, it originally appeared in the conservative Swiss magazine Die Weltwoche: “By following today’s apologists of the British economist John Maynard Keynes (1883-1946), the so-called ‘welfare’ states pumped too much money (which they didn’t have) into consumption: into pensions for all (Europe), exorbitant armament (U.S.), endangered industries (both) and, finally, bailouts for ailing mortgage banks (also both). This intervention was celebrated by Keynes’ disciples as the ‘return of politics.’ ”

Pensions are Keynesian economics? Bloated defense budgets are Keynesian economics? Who knew? Even bank bailouts, whatever you think of them, have nothing to do with anything in the Keynesian  model per se.

So what’s going on here?

New York Times Editorial: It’s a Flawed Settlement

The Obama administration has turned up the heat on Eric Schneiderman, New York’s attorney general, to go along with a proposed settlement with the nation’s largest banks over dubious foreclosure practices. Mr. Schneiderman should stand his ground in not supporting the deal. The administration says that a settlement would quickly deliver much needed relief to hard-pressed borrowers, but it’s doubtful it would provide redress on a par with the banks’ wrongdoing or borrowers’ needs.

The deal has been in the works for nearly a year, after the state attorneys general announced an investigation into a robo-signing scandal in which banks were found to have filed false foreclosure papers in state courts. It was widely believed that the scandal would lead to a broad inquiry into how banks inflated the housing bubble, profiting as it expanded.

Yesterday, August 22, I posted the History diary for today, August 23. I plead guilty to a brain fart due to my acute case of CRS (Can’t Remember S!@t) these days. So here is yesterday’s, August 22 History. At least it was only the date that confused me.

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

August 22 is the 234th day of the year (235th in leap years) in the Gregorian calendar. There are 131 days remaining until the end of the year.

On this day in 1950, Althea Gibson became the first African American on the US Tennis Tour.

On this day in 1950, officials of the United States Lawn Tennis Association (USLTA) accept Althea Gibson into their annual championship at Forest Hills, New York, making her the first African-American player to compete in a U.S. national tennis competition.

Growing up in Harlem, the young Gibson was a natural athlete. She started playing tennis at the age of 14 and the very next year won her first tournament, the New York State girls’ championship, sponsored by the American Tennis Association (ATA), which was organized in 1916 by black players as an alternative to the exclusively white USLTA. After prominent doctors and tennis enthusiasts Hubert Eaton and R. Walter Johnson took Gibson under their wing, she won her first of what would be 10 straight ATA championships in 1947.

In 1949, Gibson attempted to gain entry into the USLTA’s National Grass Court Championships at Forest Hills, the precursor of the U.S. Open. When the USLTA failed to invite her to any qualifying tournaments, Alice Marble–a four-time winner at Forest Hills–wrote a letter on Gibson’s behalf to the editor of American Lawn Tennis magazine. Marble criticized the “bigotry” of her fellow USLTA members, suggesting that if Gibson posed a challenge to current tour players, “it’s only fair that they meet this challenge on the courts.” Gibson was subsequently invited to participate in a New Jersey qualifying event, where she earned a berth at Forest Hills.

snip

Though she once brushed off comparisons to Jackie Robinson, the trailblazing black baseball player, Gibson has been credited with paving the way for African-American tennis champions such as Arthur Ashe and, more recently, Venus and Serena Williams. After a long illness, she died in 2003 at the age of 76.

Ms. Gibson became the first African American woman to join the Ladies Professional Golf Association  tour, in 1963, retiring in 1978.