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On This Day In History March 25

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.

March 25 is the 84th day of the year (85th in leap years) in the Gregorian calendar. There are 281 days remaining until the end of the year.

On this day in history, two tragic fires occurred in New York City. In 1911, the Triangle Shirtwaist Factory fire claimed 146 lives and 79 years later, in 1990, the Happy Land fire killed 87 people, the most deadly fire in the city since 1911.

The Triangle Shirtwaist Factory fire in New York City on March 25, 1911, was the deadliest industrial disaster in the history of the city of New York and resulted in the fourth highest loss of life from an industrial accident in U.S. history. The fire caused the deaths of 146 garment workers, who either died from the fire or jumped to their deaths. Most of the victims were recent immigrant Jewish women aged sixteen to twenty-three. Many of the workers could not escape the burning building because the managers had locked the doors to the stairwells and exits. People jumped from the eighth, ninth, and tenth floors. The fire led to legislation requiring improved factory safety standards and helped spur the growth of the International Ladies’ Garment Workers’ Union, which fought for better working conditions for sweatshop workers.

The factory was located in the Asch Building, at 29 Washington Place, now known as the Brown Building, which has been designated a National Historic Landmark and a New York City landmark.

Fire

The Triangle Waist Company factory occupied the eighth, ninth, and tenth floors of the Asch Building on the northwest corner of Greene Street and Washington Place, just to the east of Washington Square Park, in the Greenwich Village area of New York City. Under the ownership of Max Blanck and Isaac Harris, the factory produced women’s blouses, known as “shirtwaists.” The factory normally employed about 500 workers, mostly young immigrant women, who worked nine hours a day on weekdays plus seven hours on Saturdays.

As the workday was ending on the afternoon of Saturday, March 25, 1911, a fire flared up at approximately 4:45 PM in a scrap bin under one of the cutter’s tables at the northeast corner of the eighth floor. Both owners of the factory were in attendance and had invited their children to the factory on that afternoon. The Fire Marshal concluded that the likely cause of the fire was the disposal of an unextinguished match or cigarette butt in the scrap bin, which held two months’ worth of accumulated cuttings by the time of the fire. Although smoking was banned in the factory, cutters were known to sneak cigarettes, exhaling the smoke through their lapels to avoid detection. A New York Times article suggested that the fire may have been started by the engines running the sewing machines, while The Insurance Monitor, a leading industry journal, suggested that the epidemic of fires among shirtwaist manufacturers was “fairly saturated with moral hazard.” No one suggested arson.

A bookkeeper on the eighth floor was able to warn employees on the tenth floor via telephone, but there was no audible alarm and no way to contact staff on the ninth floor. According to survivor Yetta Lubitz, the first warning of the fire on the ninth floor arrived at the same time as the fire itself. Although the floor had a number of exits – two freight elevators, a fire escape, and stairways down to Greene Street and Washington Place – flames prevented workers from descending the Greene Street stairway, and the door to the Washington Place stairway was locked to prevent theft. The foreman who held the stairway door key had already escaped by another route. Dozens of employees escaped the fire by going up the Greene Street stairway to the roof. Other survivors were able to jam themselves into the elevators while they continued to operate.

Within three minutes, the Greene Street stairway became unusable in both directions. Terrified employees crowded onto the single exterior fire escape, a flimsy and poorly-anchored iron structure which may have been broken before the fire. It soon twisted and collapsed from the heat and overload, spilling victims nearly 100 feet (30 m) to their deaths on the concrete pavement below. Elevator operators Joseph Zito and Gaspar Mortillalo saved many lives by traveling three times up to the ninth floor for passengers, but Mortillalo was eventually forced to give up when the rails of his elevator buckled under the heat. Some victims pried the elevator doors open and jumped down the empty shaft. The weight of these bodies made it impossible for Zito to make another attempt.

The remainder waited until smoke and fire overcame them. The fire department arrived quickly but was unable to stop the flames, as there were no ladders available that could reach beyond the sixth floor. The fallen bodies and falling victims also made it difficult for the fire department to approach the building.

The Happy Land fire was an arson fire which killed 87 people trapped in an unlicensed social club called “Happy Land” (at 1959 Southern Boulevard) in the West Farms section of The Bronx, New York, on March 25, 1990. Most of the victims were ethnic Hondurans celebrating Carnival. Unemployed Cuban refugee Julio Gonzalez, whose former girlfriend was employed at the club, was arrested shortly after and ultimately convicted of arson and murder.

The Incident

Before the blaze, Happy Land was ordered closed for building code violations in November 1988. Violations included no fire exits, alarms or sprinkler system. No follow-up by the fire department was documented.

The evening of the fire, Gonzalez had argued with his former girlfriend, Lydia Feliciano, a coat check girl at the club, urging her to quit. She claimed that she had had enough of him and wanted nothing to do with him anymore. Gonzalez tried to fight back into the club but was ejected by the bouncer. He was heard to scream drunken threats in the process. Gonzalez was enraged, not just because of losing Lydia, but also because he had recently lost his job at a lamp factory, was impoverished, and had virtually no companions. Gonzalez returned to the establishment with a plastic container of gasoline which he found on the ground and had filled at a gas station. He spread the fuel on the only staircase into the club. Two matches were then used to ignite the gasoline.

The fire exits had been blocked to prevent people from entering without paying the cover charge. In the panic that ensued, a few people escaped by breaking a metal gate over one door.

Gonzalez then returned home, took off his gasoline-soaked clothes and fell asleep. He was arrested the following afternoon after authorities interviewed Lydia Feliciano and learned of the previous night’s argument. Once advised of his rights, he admitted to starting the blaze. A psychological examination found him to be not responsible due to mental illness or defect; but the jury, after deliberation, found him to be criminally responsible.

Found guilty on August 19, 1991, of 87 counts of arson and 87 counts of murder, Gonzalez was charged with 174 counts of murder- two for each victim he was sentence maximum of 25 years. It was the most substantial prison term ever imposed in the state of New York. He will be eligible for parole in March 2015.

The building that housed Happy Land club was managed in part by Jay Weiss, at the time the husband of actress Kathleen Turner. The New Yorker quoted Turner saying that “the fire was unfortunate but could have happened at a McDonald’s.” The building’s owner, Alex DiLorenzo, and leaseholders Weiss and Morris Jaffe, were found not criminally responsible, since they had tried to close the club and evict the tenant.

What You Need to Know

The tragic murder of a 17 year old black walking home in the rain by a so-called neighborhood watchman who apparently chased him down and shot him because this young black man “looked suspicious” has dominated the news this past week. It has the media and the country enraged about the law in Florida that allowed the perpetrator to not just walk away, but walk away never having been questioned by the police about what occurred and walk away with the gun that killed an unarmed child. This man is still free, still unquestioned by authorities and still armed.

MSNBC’s Up with Chris dedicated its entire two hours to a discussion about the public call for justice, how these “Stand Your Ground” laws that allowed his assailant to walk were passed by state legislatures and the ramifications. The Up w/ Chris Hayes panel, The Atlantic‘s Ta-Nehisi Coates, The Nation‘s Liliana Segura, the Bernard Center’s Michelle Bernard, and former police officer Peter Moskos, discuss the case in detail and the national cause it has become.

The tragedy of Trayvon Martin

Gun lobby influence on ‘Stand Your Ground’

Lisa Graves, the executive director of the Center for Media and Democracy, joins the Up w/ Chris Hayes panelists to discuss “Stand Your Ground” and the nationwide gun lobby.

Now We Know: Increase of justified homicides in Florida

MSNBC host Chris Hayes and his panel share what they know from the week’s news, including reports that the number of justified homicides in Florida has increased since the state’s “Stand Your Ground” bill was signed into law.



     

Punting the Pundits: Sunday Preview Edition

Punting the Punditsis 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”.

The Sunday Talking Heads:

Up with Chris Hayes:This Sunday’s Up guests are Richard Dawkins (@RichardDawkins), author of The God Delusion and The Magic of Reality: How We Know What’s Really True; Steven Pinker (@sapinker), cognitive scientist, professor at Harvard University’s Department of Psychology, and author of The Better Angels of Our Nature: Why Violence Has Declined; Susan Jacoby, author of Freethinkers: A History of American Secularism; Jamila Bey (@jbey), host of The Sex, Politics, and Religion Hour on the Voice of Russia Radio Network and contributor to the Washington Post blog “She the People”; Robert Wright, author of The Evolution of God and senior editor at The Atlantic; and Jamie Kilstein (@jamiekilstein), comedian and co-host of Citizen Radio.

The Melissa Harris-Perry Show: MHP’s guests were not listed at this time.

This Week with George Stephanopolis: This weeks guests are Obama senior advisor David Plouffe and former Republican presidential candidate Rep. Michele Bachmann (R-MN).

The roundtable guests are ABC’s George Will and Cokie Roberts, Democratic strategist and ABC News contributor Donna Brazile, political strategist and ABC News political analyst Matthew Dowd, and “Nightline” co-anchor Terry Moran.

Face the Nation with Bob Schieffer: Mr. Schieffer’s guests are presidential hopeful Rick Santorum; plus, House Budget Chairman Paul Ryan (R-WI); Senator Chuck Schumer (D-NY) and Norah O’Donnell.

The Chris Matthews Show: This week’s guests Kelly Evans, CNBC Reporter; David Leonhardt, The New York Times Washington Bureau Chief; Gloria Borger, CNN Senior Political Analyst; and John Heilemann, New York Magazine National Political Correspondent.

Meet the Press with David Gregory: Sunday’s guests are White House Senior Adviser David Plouffe and MSNBC’s Rachel Maddow.

The rountable panel guests are former Mississippi Governor Haley Barbour (R); head of the NAACP, Ben Jealous; NPR’s Michele Norris; presidential historian Doris Kearns Goodwin; and the New York TimesDavid Brooks.

State of the Union with Candy Crowley: Ms. Crowley’s guests are White House Senior Adviser David Plouffe, Senator Lindsey Graham (R-SC), Florida’s Governor Rick Scott (R), Time Magazine‘s Mike Duffy and USA Today‘s Susan Page.

Health and Fitness News

Welcome to the Stars Hollow Health and Fitness weekly diary. It will publish on Saturday afternoon and be open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

Recipes From the Cabbage Patch

Stuffed Cabbage Leaves

   Last week I couldn’t believe the size and beauty of the cabbages one farmer was selling by the piece. I bought one for $2, took it home and weighed it: five pounds on the dot. It made five terrific meals, all with ingredients I had on hand.

   I’ve been covering a lot of brassicas lately – those healthy phytochemical-rich cruciferous vegetables like kale, kohlrabi, broccoli and cabbage. That’s what we have plenty of at this time of year, and there’s no reason to be bored with them. I stuffed the tough outside leaves of my big cabbage, quartered the rest and made a pizza, a pie, a stir-fry and the most wonderful baked beans I’ve ever eaten.

Martha Rose Shulman

Stir-Fried Tofu With Cabbage, Carrots and Red Peppers

A variation of this colorful stir-fry substitutes thinly sliced chicken for the tofu.

Stuffed Cabbage Leaves

The tough outer leaves of a large cabbage are perfect for stuffing.

Cabbage and Onion Marmalade

The sweet mixture that comes from slowly cooking these vegetables is perfect on a pizza that conjures the South of France.

Cabbage, Onion and Sweet Pepper Tart

Think of this tart as a quiche that has traded in some of its eggs for an extra helping of vegetables.

Baked Giant White Beans With Cabbage

The cabbage almost melts into the velvety bean broth in this dish, which gets a flavor boost from Parmesan.

Punting the Pundits

“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”.

Eugene Robinson: To Be Black in America …

For every black man in America, from the millionaire in the corner office to the mechanic in the local garage, the Trayvon Martin tragedy is personal. It could have been me or one of my sons. It could have been any of us.

How many George Zimmermans are out there cruising the streets? How many guys with chips on their shoulders and itchy fingers on the triggers of loaded handguns? How many self-imagined guardians of the peace who say the words “black male” with a sneer?

We don’t yet know every detail of the incident between Martin and Zimmerman in Sanford, Fla., that ended with an unarmed 17-year-old high-school student being shot dead. But we know enough to conclude that this is an old, familiar story.

Deborah James: Change is Gonna Come? Global Health Expert Nominated by US for World Bank Presidency

For the very first time, the U.S. government has nominated a qualified candidate to be the President of the World Bank. In order to maintain control of the institution by donors, rather than those impacted by its decisions, the U.S. and EU share a tacit agreement that the World Bank president has always been the American nomination – just as the head of the International Monetary Fund (IMF) is always a European (although one that Washington approves of). This job’s previous occupants included several top U.S. military brass (including Robert McNamara after the Vietnam War debacle, and most recently Paul Wolfowitz) as well as top bankers from Chase, Bank of America, JP Morgan and Goldman Sachs.

On Friday, however, President Obama nominated Korea-born Jim Yong Kim as the US candidate for the position. Dr. Kim is a co-founder, with Paul Farmer, of Partners In Health. In an email to supporters, Farmer and another PIH co-founder, Ophelia Dahl, said that “Jim is an inspired choice to lead the World Bank. Having seen him work in settings from inner-city Boston to the slums of Peru, from Haiti to Rwanda to the prisons of Siberia, we know that for three decades Jim has committed himself to breaking the cycle of poverty and disease. This has been his goal as a physician, a teacher, a policy maker, and a university president; it was ever his goal as a founder and director of Partners In Health, which now operates in more than a dozen countries.”

How did this seismic shift occur?

Marian Wright Edelman: It’s Past Time to Protect Children Not Guns

Thousands of people across the country have poured into the streets — from New York to Sanford, Florida — to demand justice for Trayvon Martin. Hundreds of thousands more stepped up to protest online. In response to the public outcry, the Sanford chief of police has temporarily stepped down and the state prosecutor has stepped aside. But nearly one month after 17-year-old Trayvon Martin was stopped, stalked, shot and killed while walking home from a convenience store, armed only with a bag of Skittles and a can of iced tea, his killer, George Zimmerman, has not been arrested. Today, the Children’s Defense Fund released its new report, Protect Children, Not Guns 2012, dedicated to the memory of Trayvon Martin and the thousands of children and teenagers killed by guns in America, including the 5,740 children killed in 2008 and 2009 according to the latest data from the U.S. Centers for Disease Control and Prevention.

Where is the outrage over every single one of the thousands of children and teens killed by guns — too many by gun slinging Americans unrestrained by common sense gun control laws. Florida’s “Stand Your Ground” law, also known as the “shoot first, ask questions later” law, is now under national scrutiny. But will it and others be changed to protect children rather than gun owners and sellers?

Richard (RJ) Eskow: The Dumbest ‘Bipartisan’ Move Since Repealing Glass-Steagall

Here we go again. Once again the ‘bipartisan’ consensus in Washington, fueled by an intoxicating brew of conventional wisdom laced with campaign cash, has repealed some of those ‘cumbersome regulations’ that do nothing of value — nothing, that is, except prevent catastrophes. There will be celebrating on both sides of the aisle when the President signs this bill.

And when disaster strikes a few years from now, as it inevitably will, they’ll all say “Nobody could have seen it coming.” Plus ça change, plus c’est la même crap. Creationism can’t disprove the theory of evolution – but a little time in Washington will make you think twice.

Here we are, surrounded by still-smoldering financial wreckage, and almost everyone in Washington is falling over themselves to repeat exactly the same kinds of actions that got us into this mess. Last time around it was the repeal of Glass-Steagall, introduced by Republican Sen. Phil Gramm and enthusiastically signed by President Clinton in the presence of Treasury Secretary Larry Summers.

Johns Nichols: Marco Rubio Stands His Ground for Deadly ‘Stand Your Ground’ Laws

Former Florida Governor Jeb Bush was not the only prominent Florida official to back Florida’s “Stand Your Ground” law, despite repeated warnings that it would be seen as a “license to kill” by gunmen like the Sanford, Florida, neighborhood watchman who stands accused of slaying teenager Trayvon Martin.

The rising Republican star of Florida legislature at the time, a young state representative from West Miami who in the next session would become the speaker of the state House, actively supported the “Stand Your Ground” proposal.

That legislator, Florida Senator Marco Rubio, is now being boomed by Jeb Bush for a place on the Republican ticket as the party’s 2012 vice presidential nominee.

Rubio served in the legislature as an ally of the National Rifle Association and a member of the American Legislative Exchange Council, the shadowy group funded by the Koch brothers to craft and promote passage of measures such as the “Stand Your Ground” law. In reviewing Rubio’s tenure, the Miami Herald noted: “Rubio had an ‘A’ rating by the National Rifle Association. Rubio voted for major NRA priorities such as a 2005 ‘castle doctrine’ law allowing people to use deadly force if attacked in their home or any place a person ‘has a right to be.’ Rubio also supported a 2008 law allowing most employees to bring guns to work, as long as they held a concealed weapons license and kept the gun in their cars.”

Greg Kaufman: This Week in Poverty: Paul Ryan’s Focus on Dignity

“Promoting the natural rights and the inherent dignity of the individual must be the central focus of all government.”

That’s what Congressman Paul Ryan wrote earlier this month in an exclusive commentary for Spotlight on Poverty and Opportunity. This week, he revealed exactly where his laser-like focus on dignity would lead this nation. He released his budget proposal, as clear a statement of one’s principles and priorities as there is in politics.

Here are the results, and they’re not pretty. Nation readers with young children should probably ask them to leave the room before reading onward.

John F. Timoney: Florida’s Disastrous Self-Defense Law

THE very public controversy surrounding the killing on Feb. 26 of Trayvon Martin, an unarmed 17-year-old, by a crime watch volunteer, George Zimmerman, was predictable.

In fact, I, along with other Florida chiefs of police, said so in a letter to the Legislature in 2005 when we opposed the passage of a law that not only enshrined the doctrine of “your home is your castle” but took this doctrine into the public square and added a new concept called “stand your ground.”

Use-of-force issues arose often during my 41-year policing career. In fact, officer-involved shootings were the No. 1 problem when I became Miami’s police chief in January 2003. But after we put in place new policies and training, officers went 20 months without discharging a single bullet at a person, while arrests increased over 30 percent.

On This Day In History March 24

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.

March 24 is the 83rd day of the year (84th in leap years) in the Gregorian calendar. There are 282 days remaining until the end of the year.

March 24th is the 365th and last day of the year in many European implementations of the Julian calendar.

On this day in 1989, Exxon Valdez runs aground in Prince William Sound, Alaska.

The worst oil spill in U.S. territory begins when the supertanker Exxon Valdez, owned and operated by the Exxon Corporation, runs aground on a reef in Prince William Sound in southern Alaska. An estimated 11 million gallons of oil eventually spilled into the water. Attempts to contain the massive spill were unsuccessful, and wind and currents spread the oil more than 100 miles from its source, eventually polluting more than 700 miles of coastline. Hundreds of thousands of birds and animals were adversely affected by the environmental disaster.

It was later revealed that Joseph Hazelwood, the captain of the Valdez, was drinking at the time of the accident and allowed an uncertified officer to steer the massive vessel. In March 1990, Hazelwood was convicted of misdemeanor negligence, fined $50,000, and ordered to perform 1,000 hours of community service. In July 1992, an Alaska court overturned Hazelwood’s conviction, citing a federal statute that grants freedom from prosecution to those who report an oil spill.

The Exxon Valdez oil spill occurred in Prince William Sound, Alaska, on March 24, 1989, when the Exxon Valdez, an oil tanker bound for Long Beach, California, struck Prince William Sound‘s Bligh Reef and spilled 260,000 to 750,000 barrels (41,000 to 119,000 m3) of crude oil. It is considered to be one of the most devastating human-caused environmental disasters. As significant as the Valdez spill was-the largest ever in U.S. waters until the 2010 Deepwater Horizon oil spill-it ranks well down on the list of the world’s largest oil spills in terms of volume released. However, Prince William Sound’s remote location, accessible only by helicopter, plane and boat, made government and industry response efforts difficult and severely taxed existing plans for response. The region is a habitat for salmon, sea otters, seals and seabirds. The oil, originally extracted at the Prudhoe Bay oil field, eventually covered 1,300 miles (2,100 km) of coastline, and 11,000 square miles (28,000 km2) of ocean. Then Exxon CEO, Lawrence G. Rawl, shaped the company’s response.

Timeline of events

Exxon Valdez left the Valdez oil terminal in Alaska at 9:12 pm on March 23, 1989, bound for Long Beach, California. The ship was under the control of Shipmaster Joseph Jeffrey Hazelwood. The outbound shipping lane was obstructed with small icebergs (possibly from the nearby Columbia Glacier), so Hazelwood got permission from the Coast Guard to go out through the inbound lane. Following the maneuver and sometime after 11 p.m., Hazelwood left Third Mate Gregory Cousins in charge of the wheel house and Able Seaman Robert Kagan at the helm. Neither man had been given his mandatory six hours off duty before beginning his 12-hour watch. The ship was on autopilot, using the navigation system installed by the company that constructed the ship. The ship struck Bligh Reef at around 12:04 a.m. March 24, 1989.

Beginning three days after the vessel grounded, a storm pushed large quantities of fresh oil on to the rocky shores of many of the beaches in the Knight Island chain. In this photograph, pooled oil is shown stranded in the rocks.

According to official reports, the ship was carrying approximately 55 million US gallons (210,000 m3) of oil, of which about 11 to 32 million US gallons (42,000 to 120,000 m3) were spilled into the Prince William Sound. A figure of 11 million US gallons (42,000 m3) was a commonly accepted estimate of the spill’s volume and has been used by the State of Alaska’s Exxon Valdez Oil Spill Trustee Council, the National Oceanic and Atmospheric Administration and environmental groups such as Greenpeace and the Sierra Club. Some groups, such as Defenders of Wildlife, dispute the official estimates, maintaining that the volume of the spill has been underreported. Alternative calculations, based on an assumption that the sea water rather than oil was drained from the damaged tanks, estimate the total to have been 25 to 32 million US gallons (95,000 to 120,000 m3).

Identified causes

Multiple factors have been identified as contributing to the incident:

   * Exxon Shipping Company failed to supervise the master and provide a rested and sufficient crew for Exxon Valdez. The NTSB found this was wide spread throughout industry, prompting a safety recommendation to Exxon and to the industry.

   * The third mate failed to properly maneuver the vessel, possibly due to fatigue or excessive workload.

   * Exxon Shipping Company failed to properly maintain the Raytheon Collision Avoidance System (RAYCAS) radar, which, if functional, would have indicated to the third mate an impending collision with the Bligh reef by detecting the “radar reflector”, placed on the next rock inland from Bligh Reef for the purpose of keeping boats on course via radar.

In light of the above and other findings, investigative reporter Greg Palast stated in 2008 “Forget the drunken skipper fable. As to Captain Joe Hazelwood, he was below decks, sleeping off his bender. At the helm, the third mate never would have collided with Bligh Reef had he looked at his RAYCAS radar. But the radar was not turned on. In fact, the tanker’s radar was left broken and disabled for more than a year before the disaster, and Exxon management knew it. It was (in Exxon’s view) just too expensive to fix and operate.” Exxon blamed Captain Hazelwood for the grounding of the tanker.

Economic and personal impact

In 1991, following the collapse of the local marine population (particularly clams, herring, and seals) the Chugach Alaska Corporation, an Alaska Native Corporation, filed for Chapter 11 bankruptcy protection. It has since recovered.

According to several studies funded by the state of Alaska, the spill had both short-term and long-term economic effects. These included the loss of recreational sports, fisheries, reduced tourism, and an estimate of what economists call “existence value”, which is the value to the public of a pristine Prince William Sound.

The economy of the city of Cordova, Alaska was adversely affected after the spill damaged stocks of salmon and herring in the area. Several residents, including one former mayor, committed suicide after the spill.

A New Head For The World Bank & It’s Not Summers

In a surprise announcement President Barack Obama nominated Dartmouth College President Jim Yong Kim to head up the World Bank:

Dr. Kim’s name was not among those widely bandied about since Mr. (Robert B.) Zoellick announced his plans to move on last month. Highly respected among aid experts, Dr. Kim is an anthropologist and a physician who co-founded Partners in Health, a nonprofit that provides health care for the poor, and a former director of the department of H.I.V./AIDS at the World Health Organization. [..]

Dr. Kim, who was awarded a prestigious MacArthur Fellowship in 2003, was born in Seoul, South Korea, in 1959 and moved with his family to the United States when he was 5. He graduated from Brown University in 1982, earned an M.D. from Harvard University in 1991 and received a Ph.D. in anthropology there in 1993.

He was the first Asian-American to head an Ivy League institution when he took the Dartmouth post in 2009.

While working with Partners in Health in Lima, Peru, in the mid-1990s, Dr. Kim helped to develop a treatment program for multidrug-resistant tuberculosis, the first large-scale treatment of that disease in a poor country. Treatment programs for multidrug-resistant tuberculosis are now in place in more than 40 nations, according to Dr. Kim’s biography on Dartmouth’s Web site. He Kim also spearheaded the successful effort to reduce the price of the drugs used to treat this form of tuberculosis.

The United States traditionally selects the head of the World Bank and Europe the leader of its sister institution, the International Monetary Fund, since they were founded during World War II.

Apparently, Dr. Kim was suggested by former President Bill Clinton and Secretary of State Hillary Clinton, who was present with the President and Dr. Kim at the Rose Garden press conference. Though Dr. Kim will certainly be the front runner for the position, he isn’t the only candidate:

Angola, South Africa and Nigeria put forward Ngozi Okonjo-Iweala, the Nigerian finance minister and former World Bank official.

José Antonio Ocampo, the former finance minister of Colombia and a United Nations official, is rumored to be another candidate.

Jeffrey Sachs, the development economist and director of the Earth Institute at Columbia University, has put himself forward for the position.

If there are more than three candidates, the board will announce a “short list” and the new head will be named in time for the April meeting of the World Bank and the International Monetary Fund.

Dr. Kim is an excellent choice with experience in global development and management. He is well known and well liked. We wish him luck.

Punting the Pundits

“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”.

New York Times Editorial: A Broader Right to Counsel

The right to a jury trial is extolled as a fixture of American justice, but a vast majority of people charged with crimes never see a trial. Plea bargaining defines the criminal justice system: 97 percent of federal convictions and 94 percent of state convictions come through guilty pleas negotiated between prosecutors and offenders.

The Supreme Court has previously ruled that the Sixth Amendment gives a criminal defendant a right to an effective lawyer during plea-bargain negotiations and when the defendant gives up the right to a trial and accepts a plea offer. In two related 5-to-4 decisions this week, the court extended that constitutional guarantee to cases in which the defendant rejects a favorable plea offer – and goes to trial – because of ineffective counsel.

Paul Krugman: Paranoia Strikes Deeper

Stop, hey, what’s that sound? Actually, it’s the noise a great political party makes when it loses what’s left of its mind. And it happened – where else? – on Fox News on Sunday, when Mitt Romney bought fully into the claim that gas prices are high thanks to an Obama administration plot.

This claim isn’t just nuts; it’s a sort of craziness triple play – a lie wrapped in an absurdity swaddled in paranoia. It’s the sort of thing you used to hear only from people who also believed that fluoridated water was a Communist plot. But now the gas-price conspiracy theory has been formally endorsed by the likely Republican presidential nominee.

Before we get to the larger implications of this endorsement, let’s get the facts on gas prices straight.

Timothy Egan: The Church Lady State

When people complain about liberal overreach they always bring up the nanny state. You know, sorting your garbage to see if a banana peel slipped in with a cellophane wrapper; energy-efficient light bulbs; neutered language in the public square to make sure no one is ever offended.

But all of the above is a mere teardrop in the Amazon compared to what your freedom-hating Republican Party has been doing across the land to restrict individual liberty.

They want the state to follow you into the bedroom, the bathroom and beyond. They think you’re too stupid to know what to do with your own body, too ignorant to understand what your doctors tell you and too lazy to be trusted in a job without being subject to random drug testing. Your body is the government’s business.

Joan Walsh: GOP Rides Paul Ryan’s Road to Ruin (But Will Dems Blow Opportunity?)

His snake oil-castor oil budget is a gift to Dems, but only if they give up on “grand bargains” with extremists

Most Democrats rejoiced when the newly elected House Tea Party extremists got behind Paul Ryan’s tax-slashing and program-cutting budget plan almost a year ago. The budget had no chance of passing the Senate, but it committed Republicans to unpopular spending cuts, including to Social Security and Medicare, and continued the party’s slavish devotion to tax protection for the top 1 percent. That’s why many liberals were horrified by reports that the White House was entertaining comparable budget-cutting proposals to resolve the debt-ceiling crisis last summer. Not only was it bad policy, it was terrible politics, sacrificing the huge advantage Republicans had conceded when they backed Ryan’s plan, especially his assault on Medicare.

Ellen Brown: The Shadow Bailout: How Big Banks Bilk US Towns and Taxpayers

Wall Street Confidence Trick: The Interest Rate Swaps that Are Bankrupting Local Governments

The “toxic culture of greed” on Wall Street was highlighted again last week, when Greg Smith went public with his resignation from Goldman Sachs in a scathing oped published in the New York Times.  In other recent eyebrow-raisers, LIBOR rates-the benchmark interest rates involved in interest rate swaps-were shown to be manipulated by the banks that would have to pay up; and the objectivity of the ISDA (International Swaps and Derivatives Association) was called into question, when a 50% haircut for creditors was not declared a “default” requiring counterparties to pay on credit default swaps on Greek sovereign debt.

Interest rate swaps are less often in the news than credit default swaps, but they are far more important in terms of revenue, composing fully 82% of the derivatives trade.  In February, JP Morgan Chase revealed that it had cleared $1.4 billion in revenue on trading interest rate swaps in 2011, making them one of the bank’s biggest sources of profit.

Robert Borosage: The Ryan Budget vs. A ‘Budget for All’

Who pays the bill for Wall Street’s mess?

On Tuesday, House Republicans rolled out their budget plan in the Washington version of a Hollywood movie opening. There was a star turn for Budget Chair Paul Ryan at a conservative think tank. Gaseous rhetoric — “liberties endangered, time to choose” — fouled the air. There were dueling videos, and furious salvos of partisan messaging. And a backup document — the “Path to Prosperity” (pdf) — festooned with tables for wonks to wallow in.

And yesterday, with fewer trumpets and less fanfare, the Congressional Progressive Caucus release its budget plan — A Budget for All.

Each of the two documents is designed to define a message. Their contrasts help clarify the real choices the country faces. Federal deficits exploded after Wall Street’s excesses blew up the economy. The questions now are who gets the bill and when does the payment start? Ryan’s Republican budget and the CPC’s offer starkly different answers that would take the country in starkly different directions.

Brendan Fischer: ALEC and NRA Behind Law That May Protect Trayvon Martin’s Killer

A Florida law that may protect the man who shot and killed 17-year-old Trayvon Martin in February is the template for an American Legislative Exchange Council (ALEC) “model bill” that has been pushed in other states. The bill was brought to ALEC by the National Rifle Association (NRA), and fits into a pattern of ALEC bills that disproportionately impact communities of color.

Florida’s “stand your ground,” or “castle doctrine,” law could prevent the prosecution of George Zimmerman, the 28-year-old “neighborhood watch” vigilante who shot the unarmed Martin as the teen returned from a trip to 7-11 with an iced tea and a pack of Skittles. The law, also pushed by its supporters under the name the “Castle Doctrine,” changes state criminal justice and civil law codes by giving legal immunity to a person who uses “deadly force if he or she reasonably believes it is necessary to do so to prevent death or great bodily harm to himself or herself or another or to prevent the commission of a forcible felony.” It also bars the deceased’s family from bringing a civil suit.

The JOBS Act, Only It Doesn’t

The Senate passed the Jumpstart Our Business Startups Act, JOBS Act, with a bipartisan vote of 73-26, with all the “no” votes coming from Democrats. The legislation will make it easier for small businesses to use the Internet to raise small investments from lots of people, a technique known as “crowdfunding.” :

The legislation combines six smaller bills that change Securities and Exchange Commission rules so small businesses can attract investors and go public with less red tape and cost. It eases rules on advertising and permits startups to use the Internet and other social media to solicit a large number of small-scale investors.

So why is this not such a good bill? Basically, as Mark Gongloff of Huffington Post explains, because it rolls back “investor-protection regulations, some of which date back to the 1930s, and some of which have been passed as recently as 2002 in the wake of Wall Street shenanigans from the 1990s tech bubble to Enron.”

The bill purports to make it much easier for small firms to raise money, either through private “crowdfunding,” essentially raising money online, or by going public. At its heart is the persistent myth, relentlessly propounded by Wall Street, that there are a million Facebooks out there waiting to thrive and create jobs if only the government would just get the heck out of the way. [..]

Investment banks can now issue research reports on the companies they take public — meaning we’ll be back to the days when analysts can pump up “POS” stocks they then dump on unwitting customers — removing a prohibition set by Sarbanes-Oxley in 2002.

Web sites can pitch new companies directly to investors, raising the specter of “boiler rooms” preying on your grandmother to pry away her retirement money.

To give Senate Majority Leader Harry Reid (D-NV) some credit, he did manage to get one amendment passed that would provide some investor protections:

required companies that use crowdfunding to provide financial statements to investors. Companies seeking between $100,000 and $500,000 in capital would have to get independent accountants to review these statements. Audited financial statements would be required for companies seeking more than $500,000 in capital.

The amendment also limits the total amount that a company can raise through crowdfunding to $1 million. The House bill would allow companies to raise up to $2 million, if they provide audited financial statements.

In addition, the amendment requires Internet intermediaries — the web sites that will offer crowdfunding investment opportunities to the public — to register with the SEC.

An amendment that would have tightened certain shareholder definitions, and prevented public companies from “going dark” if their shareholder number falls below a certain threshold, failed to pass a straight majority vote.

Dan Primack at CNN’s Fortune best describes what does and doesn’t matter about the bill and states his the reason for his opposition:

Emerging growth companies: Okay, this is where I move from ambivalence to opposition. The idea here is to make it easier for small private companies to go public, by reducing the costs associated with such an action. It does so by reducing certain existing investor protections, including one that prevents investment banking analysts from offering pre-IPO research on their firm’s own clients. Here is what I wrote on the subject, back in January:

   Going public is not supposed to be a cakewalk. We’ve already been through an IPO environment where all you needed was a clever URL and a fuzzy mascot, and the results weren’t pretty. I’m not suggesting that last year’s issuers are all future members of the Fortune 500, but shouldn’t a successful listing signal to retail investors that experienced institutions took a hard look at the issuer and considered it worthy of consideration? How can that still be true if those institutions get to see only two years of audited financial statements instead of three? Or if analysts working for a company’s underwriting bank can publish pre-IPO research (albeit with a disclaimer)?

Sen. Bernie Sanders (I-VT) gives his scathing criticism of the bill, calling it the “Con Job Bill”:

“The so-called ‘JOBS Act’ is an extremely anti-consumer, anti-investor, and anti-jobs bill.  As currently drafted, the bill is opposed by the Securities and Exchange Commission chairman (as well as past SEC chairmen appointed by both political parties); AARP; the AFL-CIO; the Consumer Federation of America; Consumers Union; and the Council of Institutional Investors, among many others.  There is good reason for the opposition.

“At best, this bill could make it easier for con artists to defraud seniors out of their entire life savings by convincing them to invest in worthless companies.  At worst, this bill has the potential to create the next Enron or Arthur Andersen scandal or an even worse financial crisis.

“Have we learned nothing?  Deregulating Wall Street led to the worst financial crisis since the 1930s.  Now the same people who caused this horrible recession are telling us that more Wall Street deregulation will create jobs.  Give me a break.  I strongly support providing small businesses with the tools they need to create jobs.  Sadly, that’s not at all what this bill will do.”

Calling this the “JOBS” Act is a misnomer because, as Yves Smith notes at naked capitalism, “In reality, the only jobs it is likely to create will be due to the resulting explosion in stock scamsters and bucket shop operators.”

And there is no worry that this bill will pass in the House. House Majority Leader Eric Cantor (R-VA) has schedule a vote for early next week.

Here come the “Penny Stocks.” Good job, Barack

On This Day In History March 23

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.

March 23 is the 82nd day of the year (83rd in leap years) in the Gregorian calendar. There are 283 days remaining until the end of the year.

On this day in 1775, Patrick Henry voices American opposition to British policy

During a speech before the second Virginia Convention, Patrick Henry responds to the increasingly oppressive British rule over the American colonies by declaring, “I know not what course others may take, but as for me, give me liberty or give me death!” Following the signing of the American Declaration of Independence on July 4, 1776, Patrick Henry was appointed governor of Virginia by the Continental Congress.

Patrick Henry (May 29, 1736 – June 6, 1799) was an orator and politician who led the movement for independence in Virginia in the 1770s. A Founding Father, he served as the first and sixth post-colonial Governor of Virginia from 1776 to 1779 and subsequently, from 1784 to 1786. Henry led the opposition to the Stamp Act of 1765 and is well remembered for his “Give me Liberty, or give me Death!” speech. Along with Samuel Adams and Thomas Paine, he is remembered as one of the most influential exponents of Republicanism, promoters of the American Revolution and Independence, especially in his denunciations of corruption in government officials and his defense of historic rights. After the Revolution, Henry was a leader of the anti-federalists in Virginia who opposed the United States Constitution, fearing that it endangered the rights of the States, as well as the freedoms of individuals.

American Revolution

Responding to pleas from Massachusetts that the colonies create committees of correspondence to coordinate their reaction to the British, Henry took the lead in Virginia. In March 1773, along with Thomas Jefferson and Richard Henry Lee, Henry led the Virginia House of Burgesses to adopt resolutions providing for a standing committee of correspondents. Each colony set up such committees, and they led to the formation of the First Continental Congress in 1774, to which Henry was elected.

Patrick Henry is best known for the speech he made in the House of Burgesses on March 23, 1775, in Saint John’s Church in Richmond, Virginia. The House was undecided on whether to mobilize for military action against the encroaching British military force, and Henry argued in favor of mobilization. Forty-two years later, Henry’s first biographer, William Wirt, working from oral testimony, attempted to reconstruct what Henry said. According to Wirt, Henry ended his speech with words that have since become immortalized:

“Is life so dear, or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take; but as for me, Give me Liberty, or give me Death!”

The crowd, by Wirt’s account, jumped up and shouted “To Arms! To Arms!”. For 160 years Wirt’s account was taken at face value, but in the 1970s historians began to question the authenticity of Wirt’s reconstruction.[8] Historians today observe that Henry was known to have used fear of Indian and slave revolts in promoting military action against the British, and that according to the only written first-hand account of the speech, Henry used some graphic name-calling that failed to appear in Wirt’s heroic rendition.

In August 1775, Henry became colonel of the 1st Virginia Regiment. At the outset of the Revolutionary War, Henry led militia against Royal Governor Lord Dunmore in defense of some disputed gunpowder, an event known as the Gunpowder Incident. During the war he served as the first post-colonial Governor of Virginia and presided over several expeditions against the Cherokee Indians, who were allied with the British.

Henry lived during part of the War at his 10,000-acre Leatherwood Plantation in Henry County, Virginia, where he, his first cousin Ann Winston Carr and her husband Col. George Waller had settled. During the five years Henry lived at Leatherwood, from 1779 to 1784, he owned 75 slaves, and grew tobacco. During this time, he kept in close touch with his friend the explorer Joseph Martin, whom Henry had appointed agent to the Cherokee nation, and with whom Henry sometimes invested in real estate, and for whom the county seat of Henry County was later named.

In early November 1775 Henry and James Madison were elected founding trustees of Hampden-Sydney College, which opened for classes on November 10. He remained a trustee until his death in 1799. Henry was instrumental in achieving passage of the College’s Charter of 1783, an action delayed because of the war. He is probably the author of the Oath of Loyalty to the new Republic included in that charter. Seven of his sons attended the new college.

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