December 2013 archive

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.

December 3 is the 337th day of the year (338th in leap years) in the Gregorian calendar. There are 28 days remaining until the end of the year.

On this day in 1947,A Streetcar Named Desire opened on Broadway.

Marlon Brando‘s famous cry of “STELLA!” first booms across a Broadway stage, electrifying the audience at the Ethel Barrymore Theatre during the first-ever performance of Tennessee Williams‘ play A Streetcar Named Desire.

The 23-year-old Brando played the rough, working-class Polish-American Stanley Kowalski, whose violent clash with Blanche DuBois (played on Broadway by Jessica Tandy), a Southern belle with a dark past, is at the center of Williams’ famous drama. Blanche comes to stay with her sister Stella (Kim Hunter), Stanley’s wife, at their home in the French Quarter of New Orleans; she and Stanley immediately despise each other. In the climactic scene, Stanley rapes Blanche, causing her to lose her fragile grip on sanity; the play ends with her being led away in a straitjacket.

Widely considered a landmark play, A Streetcar Named Desire deals with a culture clash between two iconic characters, Blanche DuBois, a fading relic of the Old South, and Stanley Kowalski, a rising member of the industrial, urban working class.

The play presents Blanche DuBois, a fading but still-attractive Southern belle whose pretensions to virtue and culture only thinly mask alcoholism and delusions of grandeur. Her poise is an illusion she presents to shield others (but most of all, herself) from her reality, and an attempt to make herself still attractive to new male suitors. Blanche arrives at the apartment of her sister Stella Kowalski in the French Quarter of New Orleans, on Elysian Fields Avenue; the local transportation she takes to arrive there includes a streetcar route named “Desire.” The steamy, urban ambiance is a shock to Blanche’s nerves. Blanche is welcomed with some trepidation by Stella, who fears the reaction of her husband Stanley. As Blanche explains that their ancestral southern plantation, Belle Reve in Laurel, Mississippi, has been “lost” due to the “epic fornications” of their ancestors, her veneer of self-possession begins to slip drastically. Here “epic fornications” may be interpreted as the debauchery of her ancestors which in turn caused them financial losses. Blanche tells Stella that her supervisor allowed her to take time off from her job as an English teacher because of her upset nerves, when in fact, she has been fired for having an affair with a 17-year-old student. This turns out not to be the only seduction she has engaged in-and, along with other problems, has led her to escape Laurel. A brief marriage marred by the discovery that her spouse, Allan Grey, was having a homosexual affair and his subsequent suicide has led Blanche to withdraw into a world in which fantasies and illusions blend seamlessly with reality.

In contrast to both the self-effacing and deferential Stella and the pretentious refinement of Blanche, Stella’s husband, Stanley Kowalski, is a force of nature: primal, rough-hewn, brutish and sensual. He dominates Stella in every way and is physically and emotionally abusive. Stella tolerates his primal behaviour as this is part of what attracted her in the first place; their love and relationship are heavily based on powerful-even animalistic-sexual chemistry, something that Blanche finds impossible to understand.

The arrival of Blanche upsets her sister and brother-in-law’s system of mutual dependence. Stella’s concern for her sister’s well-being emboldens Blanche to hold court in the Kowalski apartment, infuriating Stanley and leading to conflict in his relationship with his wife. Blanche and Stanley are on a collision course, and Stanley’s friend and Blanche’s would-be suitor Mitch, will get trampled in their path. Stanley discovers Blanche’s past through a co-worker who travels to Laurel frequently, and he confronts her with the things she has been trying to put behind her, partly out of concern that her character flaws may be damaging to the lives of those in her new home, just as they were in Laurel, and partly out of a distaste for pretense in general. However, his attempts to “unmask” her are predictably cruel and violent. In their final confrontation, Stanley rapes Blanche, which results in her nervous breakdown. Stanley has her committed to a mental institution, and in the closing moments, Blanche utters her signature line to the kindly doctor who leads her away: “Whoever you are, I have always depended on the kindness of strangers.”

Shopping on Black Friday takes consumer confidence, consumer courage, and a subscription to Sky Mall magazine.

Gloomy Numbers for Holiday Shopping’s Big Weekend

by Elizabeth A. Harris, The New York Times

With the economy bumping along at a lackluster pace, and this year’s shorter-than-usual window between Thanksgiving and Christmas, sales and promotions began weeks before Thanksgiving Day, making this holiday shopping season more diffuse than ever. That left Black Friday weekend itself, the season’s customary kickoff, looking a bit gloomy.

Over the course of the weekend, consumers spent about $1.7 billion less on holiday shopping than they did the year before, according to the National Retail Federation, a retail trade organization.  [..]

More than 141 million people shopped online or in stores between Thursday and Sunday, according to a survey released Sunday afternoon by the retail federation, an increase of about 1 percent over last year. And the average amount each consumer spent, or planned to spend by the end of Sunday, went down, dropping to $407.02 from $423.55. Total spending for the weekend this year was expected to be $57.4 billion, a decrease of nearly 3 percent from last year’s $59.1 billion. [..]

Many retailers have been warning of a muted holiday shopping season. Walmart and Target both trimmed their yearly forecasts recently, citing economic factors like slow wage growth, unemployment and sliding consumer confidence. Executives at Best Buy cautioned that intense price competition on some items during the holidays was likely to affect their bottom line, despite its healthier performance recently.

“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”.

Follow us on Twitter @StarsHollowGzt

Paul Krugman: Better Pay Now

‘Tis the season to be jolly – or, at any rate, to spend a lot of time in shopping malls. It is also, traditionally, a time to reflect on the plight of those less fortunate than oneself – for example, the person on the other side of that cash register.

The last few decades have been tough for many American workers, but especially hard on those employed in retail trade – a category that includes both the sales clerks at your local Walmart and the staff at your local McDonald’s. Despite the lingering effects of the financial crisis, America is a much richer country than it was 40 years ago. But the inflation-adjusted wages of nonsupervisory workers in retail trade – who weren’t particularly well paid to begin with – have fallen almost 30 percent since 1973.

So can anything be done to help these workers, many of whom depend on food stamps – if they can get them – to feed their families, and who depend on Medicaid – again, if they can get it – to provide essential health care? Yes. We can preserve and expand food stamps, not slash the program the way Republicans want. We can make health reform work, despite right-wing efforts to undermine the program.

And we can raise the minimum wage.

New York Times Editorial Board: Debt and Taxes

The debacle of the housing bust is not over. In addition to 10 million borrowers who have already lost their homes, nearly nine million still owe some $500 billion more on their mortgages than their homes are worth and, of them, 2.3 million are in or near foreclosure.

Making matters worse, help is about to get even harder to come by. Unless Congress acts soon, a debt-relief law – the Mortgage Forgiveness Debt Relief Act, enacted in 2007 – will expire at the end of 2013, leaving homeowners without the legal protection they need to manage their overwhelming mortgage debt. [..]

If the relief act is not renewed, the potential tax bill on many such modifications will force hard-pressed homeowners to turn down the help. As a result, the aid will flow to higher-income borrowers who can afford the taxes, leaving lower-income borrowers to face foreclosure.

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.

December 2 is the 336th day of the year (337th in leap years) in the Gregorian calendar. There are 29 days remaining until the end of the year.

On this day in 2001, Enron filed for Chapter 11 bankruptcy protection in a New York court, sparking one of the largest corporate scandals in U.S. history.

An energy-trading company based in Houston, Texas, Enron was formed in 1985 as the merger of two gas companies, Houston Natural Gas and Internorth. Under chairman and CEO Kenneth Lay, Enron rose as high as number seven on Fortune magazine’s list of the top 500 U.S. companies. In 2000, the company employed 21,000 people and posted revenue of $111 billion. Over the next year, however, Enron’s stock price began a dramatic slide, dropping from $90.75 in August 2000 to $0.26 by closing on November 30, 2001.

As prices fell, Lay sold large amounts of his Enron stock, while simultaneously encouraging Enron employees to buy more shares and assuring them that the company was on the rebound. Employees saw their retirement savings accounts wiped out as Enron’s stock price continued to plummet. After another energy company, Dynegy, canceled a planned $8.4 billion buy-out in late November, Enron filed for bankruptcy. By the end of the year, Enron’s collapse had cost investors billions of dollars, wiped out some 5,600 jobs and liquidated almost $2.1 billion in pension plans.

Accounting practices

Enron had created offshore entities, units which may be used for planning and avoidance of taxes, raising the profitability of a business. This provided ownership and management with full freedom of currency movement and the anonymity that allowed the company to hide losses. These entities made Enron look more profitable than it actually was, and created a dangerous spiral, in which each quarter, corporate officers would have to perform more and more contorted financial deception to create the illusion of billions in profits while the company was actually losing money. This practice drove up their stock price to new levels, at which point the executives began to work on insider information and trade millions of dollars worth of Enron stock. The executives and insiders at Enron knew about the offshore accounts that were hiding losses for the company; however, the investors knew nothing of this. Chief Financial Officer Andrew Fastow led the team which created the off-books companies, and manipulated the deals to provide himself, his family, and his friends with hundreds of millions of dollars in guaranteed revenue, at the expense of the corporation for which he worked and its stockholders.

In 1999, Enron launched EnronOnline, an Internet-based trading operation, which was used by virtually every energy company in the United States. Enron president and chief operating officer Jeffrey Skilling began advocating a novel idea: the company didn’t really need any “assets.” By pushing the company’s aggressive investment strategy, he helped make Enron the biggest wholesaler of gas and electricity, trading over $27 billion per quarter. The firm’s figures, however, had to be accepted at face value. Under Skilling, Enron adopted mark to market accounting, in which anticipated future profits from any deal were tabulated as if real today. Thus, Enron could record gains from what over time might turn out to be losses, as the company’s fiscal health became secondary to manipulating its stock price on Wall Street during the Tech boom. But when a company’s success is measured by agreeable financial statements emerging from a black box, a term Skilling himself admitted, actual balance sheets prove inconvenient. Indeed, Enron’s unscrupulous actions were often gambles to keep the deception going and so push up the stock price, which was posted daily in the company elevator. An advancing number meant a continued infusion of investor capital on which debt-ridden Enron in large part subsisted. Its fall would collapse the house of cards. Under pressure to maintain the illusion, Skilling verbally attacked Wall Street Analyst Richard Grubman, who questioned Enron’s unusual accounting practice during a recorded conference call. When Grubman complained that Enron was the only company that could not release a balance sheet along with its earnings statements, Skilling replied “Well, thank you very much, we appreciate that . . . asshole.” Though the comment was met with dismay and astonishment by press and public, it became an inside joke among many Enron employees, mocking Grubman for his perceived meddling rather than Skilling’s lack of tact. When asked during his trial, Skilling wholeheartedly admitted that industrial dominance and abuse was a global problem: “Oh yes, yes sure, it is.”

In covering the upcoming vote on the planned North Metro Rail line in Denver, the Denver Post writes:

People and circumstances over the years have tried to change the gritty image of Commerce City. There have been high-end homes on its eastern border and a world-class soccer and concert stadium not far from the city’s oil refineries, and even an attempt to wipe the city’s industrial name off of the map and replace it with the more low-key moniker of Derby. But it may be a stop on the Regional Transportation District’s North Metro Rail Line that brings some shine to the center of the city.

They quote the Commerce City Mayor:

“I’m very optimistic about the commercial opportunities that come with transit-oriented development,” said Commerce City Mayor Sean Ford. “Once rail comes, we can develop around it, and I think it will be highly beneficial.”

… as well as the Adams County Commissioner and Chairman of the North Area Transportation Alliance:

“In our world, the successful communities are going to be the ones who get rail,” said Adams County Commissioner Erik Hansen

And on Tuesday night, the Metro North line was approved, for a 2014 start and 2018 completion, when it had been previously set back to 2044 (an oddly exact date that clearly meant, “not now, but maybe later”):

A spontaneous offer from Graham Contracting in February stepped up the plans for the North Metro line after the company teamed with three other private developers and gave the Regional Transportation District’s board of directors a viable, ambitious construction plan, said RTD spokeswoman Pauletta Tonilas.

This week has a certain nostalgia for me. I am working the last four shifts in my home, Humboldt County. Nestled between pristine redwoods and dramatic cliffs overlooking the west coast of California, I want to stay here, but cannot. I am feeling the full force of the United States health care crisis. In the four years I have worked here eight of ten obstetricians in the southern half of the county have left, and now I find I am one of them.

Two obstetricians, far apart geographically and serving two different hospitals, are all that is left to serve an area once supporting 10 obstetricians. Both doctors are men over 60, who have a tough future ahead of them. Without outside help there is no way they can see all the patients that will need them. They have to remain within 30 minutes of the hospital and can be told to come to work any time of the day or night. They can never have a moment off, a full night’s sleep, a drink of alcohol to ring in the New Year. Watching a full length movie, or having a nice dinner with the spouse without interruption is a thing of the past. Neither of the remaining doctors can get sick or injured. This is really asking them to be super human and there is no cavalry on their horizon. In fact, if Catholic Health Systems is successful at closing one of the two hospitals, only one physician will remain.

As a young person, I wanted to take my medical skills to a disadvantaged third world nation. Looks like I got my wish – right here in the US. How did we get here?

November 22, 2013 – Dan Savage joined Bill Maher Friday night for a no-holds-barred talk about all the gay news happening in the world, and Savage was his usual unrestrained self, going off on the “dykes” in the Cheney family and saying he’s getting sick and tired of “kiddy-fucking Catholic priests” lecturing everyone else about morality and the welfare of young children.

Warning video contains offensive language that may not be suitable for the work place or young children.

Cross posted from The Stars Hollow Gazette

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.

December 1 is the 335th day of the year (336th in leap years) in the Gregorian calendar. There are 30 days remaining until the end of the year

.

On this day in 1990, the Chunnel makes breakthrough. Shortly after 11 a.m. on December 1, 1990, 132 feet below the English Channel, workers drill an opening the size of a car through a wall of rock. This was no ordinary hole–it connected the two ends of an underwater tunnel linking Great Britain with the European mainland for the first time in more than 8,000 years.

The Channel Tunnel, or “Chunnel,” was not a new idea. It had been suggested to Napoleon Bonaparte, in fact, as early as 1802. It wasn’t until the late 20th century, though, that the necessary technology was developed. In 1986, Britain and France signed a treaty authorizing the construction of a tunnel running between Folkestone, England, and Calais, France.

The Channel Tunnel (French: Le tunnel sous la Manche), (also informally known as the Chunnel) is a 50.5-kilometre (31.4 mi) undersea rail tunnel linking Folkestone, Kent near Dover in the United Kingdom with Coquelles, Pas-de-Calais near Calais in northern France beneath the English Channel at the Strait of Dover. At its lowest point, it is 75 metres (250 ft) deep. At 37.9 kilometres (23.5 mi), the Channel Tunnel possesses the second longest undersea portion of any tunnel in the world. The Seikan Tunnel in Japan is both longer overall at 53.85 kilometres (33.46 mi), and deeper at 240 metres (790 ft) below sea level.

The tunnel carries high-speed Eurostar passenger trains, Eurotunnel Shuttle roll-on/roll-off vehicle transport-the largest in the world-and international rail freight trains. The tunnel connects end-to-end with the LGV Nord and High Speed 1 high-speed railway lines. In 1996 the American Society of Civil Engineers identified the tunnel as one of the Seven Wonders of the Modern World.

Ideas for a cross-Channel fixed link appeared as early as 1802, but British political and press pressure over compromised national security stalled attempts to construct a tunnel. However, the eventual successful project, organised by Eurotunnel, began construction in 1988 and opened in 1994. The project came in 80% over its predicted budget. Since its construction, the tunnel has faced several problems. Fires have disrupted operation of the tunnel. Illegal immigrants and asylum seekers have attempted to use the tunnel to enter Britain, causing a minor diplomatic disagreement over the siting of the Sangatte refugee camp, which was eventually closed in 2002.

Just as it does every month one week after it announces its estimates of unemployment and related statistics, last Friday the Bureau of Labor Statistics reported its evaluation of the employment situation in the individual states and regions. As has been the case for much of the past four years, there is good news and bad in the numbers.

As Niraj Choksi at the Washington Post points out, 16 states now have unemployment rates lower than they have been in four years:

  In all but two, October unemployment was at its lowest level since late 2008 or the early months of 2009. In Minnesota, unemployment hasn’t been this low since January 2008. And it’s been more than a decade since North Dakota saw an unemployment rate of 2.7 percent as it did in October. (The last time was August 2001.) In all, unemployment dropped from September to last month in 39 states. And only three states-Arkansas, Oklahoma and Ohio-saw nearly two-year highs.

  But the situation isn’t as rosy as those statistics suggest. The jobs recovery still pales in comparison to the recoveries following the 1981, 1990 and 2001 recessions, according to data from Doug Hall, director of the Economic Analysis and Research Network at the Economic Policy Institute, a think tank focused on the needs of low- and middle-income workers.

In fact, 70 months after the Great Recession began in December 2007, in only nine states is the official unemployment rate now below the five percent pre-recession average. And that only tells part of the story.

Just how slow the growth in jobs has been nationwide is reflected in the fact that in only one state-North Dakota-has job growth outpaced population growth. That is a factor of the oil production boom in the state’s Bakken formation. For every other state, however- as we’ve reported for years-the drop in the unemployment rate is mostly due to Americans leaving the work force. As of October, the labor-force participation rate was 62.8 percent, its lowest level since March 1978.  

A portion of that is demographic. The first wave of post-World War II baby boomers is retiring, although the percentage of people over 65 who have continued working-out of desire or necessity-has grown significantly since 2008. EPI estimates that about one-third of drop in the civilian work force is a consequence of such retirements. Meanwhile, labor-force participation among adults 16-24 is continuing a long time downward trend and is now nearly nine percent below its 1987 peak of 79.1 percent. But the key statistic, the most worrisome one, is that job participation of people in their prime working years-25-54 years old-remains down from its 2007 peak of 80.3 percent at 75.8 percent.

Despite the millions of private-sector jobs created since the recession was officially declared over in the summer of 2009, there continues to be a substantial jobs deficit and that has distorted the unemployment rate. Excluding retirees, EPI calculates that if those who have dropped out of the labor force or never entered it because of the weak economy had chosen to stay in, the official unemployment rate right now would be 10.8 percent, not 7.3 percent.

What these numbers point to, have pointed to for years, is the need for what many economists and activists have long sought: a multi-faceted full employment program.

Four years ago next month, President Obama held a jobs summit that was billed as a think session to kick-start employment growth. Unfortunately, partly because of the summit’s agenda, which failed to focus on the big picture, and partly because even the modest proposals that emerged from it were hamstrung by naysayers in Congress, the improvements that could have been made were not. Which means the economic pain of millions of Americans was not alleviated even though the policy tools were available to do so.

And they remain so. Heading the pack are the setting forth an industrial policy like those every other developed nation and some emerging economies already have and investing in rebuilding and innovating America’s crumbling infrastructure. But few of our elected representatives have come close to making such policies a priority or even mentioning them at all. What will it take to get them to show leadership in this realm?