Friday, October 31, 2008

Where I'll Be Sunday Afternoon

Not in Downtown Cleveland on Malls A, B or C.  As much as I would like to be at the Obama rally this Sunday I think I will pass.  I've been waiting to attend one rally before election day and Sunday is the last chance to take in a live Obama speech.   I had a feeling he would swing by C town one last time and unfortunately I was right. Sunday's rally will be an epic event I'm sure.  Hell, Springsteen will even be there.  In the end I'm sticking to the original plan, knocking on doors until my knuckles hurt.

I could go the rally knowing that doing it won't do anything to claim one additional vote.  Canvassing isn't all that exciting but there is a crucial need to keep feeding the ground game that's going to win this state for Obama. I'll suck it up and play a part in that last push on the streets.  I know it sounds selfless but have you heard about the pain in the ass parking is going to be?  And Jesus has everyone forgotten about 2004?  Kerry had a rally on the mall the night before the election along with Bruce and the next day, well we know what happened.

Knock knock knock.

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Tuesday, October 28, 2008

Prison Is a Series of Cells

Go easy on him judge he's currently the longest serving U.S. Senator. Yesterday Ted " the internet is a series of tubes" Stevens was found guilty on all counts related to his indictment for public corruption. Uncle Ted, Big Oil's Manchurian candidate shows us that it's not the kickbacks but the lying about kickbacks that always gets you in the end.

Ted is still running for re-election despite the conviction. Unfortunately for him Alaska law prohibits Ted from voting for himself.


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Monday, October 27, 2008

Tales From 8 Days Out

Step Up and Be Counted
We early voted this past Saturday. I would have gone earlier but I hadn't made a final decision on all of the state and local issues until this past week. More on the issues in a later post. The Summit County location was busy, around 200 people waiting to get their ballots. The good thing is that the Job Center has plenty of room, no waiting in the rain. The whole process took about an hour but it was worth it. There was something meaningful in the way people from all walks of life stood as their names were called out by poll workers to get their ballots. James so and so step up and change history.

An Early Voting Snapshot from Cuyahoga
Speaking of early voting numbers I was able to get some raw numbers from Cuyahoga County for today's (10/27) early voting turnout. Sorry I don't know anyone ant Summit BOE. Here are the results from today's busy round of voting in the county to the north:

Dems 2,179
Newly Registered 492
Reps 60
Indy (Wafflers) 544
Total 3,275

Being conservative, that's about 80-85% Obama support. Does this mean that Obama voters are more enthused than McCain voters or is this an indication of something more dramatic? Sure Cuyahoga is heavy D but only 60 registered R's out of the over 3,000 that showed up. They must be voting absentee. Maybe we're approaching the overwhelming force number that's a tipping point for an Obama win in Ohio.

The Local Ground Game

The Obama Ohio GOTV effort has been hitting Akron and west suburbs hard the past month. There have been volunteers in our neighborhood every weekend this month and I'm sure they'll be back this weekend. Speaking as a foot soldier who has been canvassing the past three weeks I can attest to the large numbers of ordinary citizens offering up weekend time to knock on doors. The energy level at the Akron headquarters is high and the place is packed with volunteers every weekend looking to make a difference in some way. I've walked neighborhoods in Northwest Akron, Fairlawn and Bath with varying levels of support for Obama. I think Summit County is going to turn out a massive number of votes for our guy come election day. Will it be enough though?

Robo Call BS from Voinovich
Got a robo call from Sen. George Voinovich on my cell phone tonight. I hung up the call before listening to the actual message. Geez, this guy only shows up to make silly accusations about the Democratic candidate for president or to rant about casinos. I'm supposed to waste time listening to him blather on about his opinion on something I don't care about? I did call George's office and voice my about his stupid call interrupting my dinner.

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Friday, October 24, 2008

Nat City Gets TARPed

It was only a matter of time for National City Bank. The subprime inflicted damage and bad financial outlook took its toll on the local banking mainstay. The news we had all been waiting for finally hit this morning. The buyer, PNC a Pittsburgh based bank with backing from the U.S Treasury, is plopping down a mere $5.6 billion for National City. The deal is being aided with funding from the government bailout program (from Marketwatch):
PNC also said it plans to sell $7.7 billion of preferred stock to the Treasury under the government's Troubled Asset Relief Program, or TARP.
The U.S. Treasury giveth and PNC taketh your locally headquartered bank away. Talk about unintended consequences of of the bailout plan. The very plan that was designed to salvage the banking system has also hastened the loss of local prestige and an untold number of good paying jobs. This new facet of the Treasury plan includes using up to $125 billion in funds to shore up large banks, like PNC. As usual with corporate mergers,Northeast Ohio gets caught on the short end of the deal.

The Cleveland bank whose name is festooned on several downtown buildings and inside Cleveland Browns Stadium has been in trouble since early this year. The cash infusion from a private equity firm this spring wasn't enough to keep National City's stock price from sliding into Hades and setting off warning bells in the local business community.

As we are seeing first hand that the Treasury program is a neutral arbiter of the needs of the macro level players of the financial system. The bailout was not intended to rescue the real economy. The inhabitants of the ground floor are powerless observers of the sea changes that are happening as the financial sector reconfigures itself. The worried looks on the faces of Nat City employees that I see on East Ninth Street and the North Coast Express have turned to quiet resignation. There's not much that can be done other than wait and see if their jobs will be eliminated (some probably have an inkling). The damage to the 401k plans has already been done and now careers of hundreds of employees, taxpayers and consumers are about to be drawn into the turbulence.

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Don't Trust the Polls

I am spending too much time obsessing over the polling data. As a self professed fivethirtyeight.com junky I enjoy soaking up Nate Silver's latest daily regression of the polls and the matching pretty graphics. Today's composite chart from Pollster.com is crack for the eyes. The familiar spread continues to widen with the last few says of the trend pointing in almost opposite directions. That's a damn work of art.


Sure things look good for Obama and bad for McCain right now. The polls have add for election observer's and make me feel all warm and fuzzy. Don't take solace in the polls though. There is still a lot of campaign left and I won't feel safe until this one is in the bag on November 5th. My worst nightmare is having one of those Bush 2004 hangovers the day after the election. Except this year it would be a head splitting Palin migraine from hell.

Staring at poll data doesn't do anything to get one additional vote. So close out of Firefox or IE7 (dummy) and get off your collective butts. Walk away from the Internets and go early vote (only once) or knock on some doors for the Obama campaign. The stupid little pie charts on fivethirteight aren't going anywhere trust me, I keep checking.

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Tuesday, October 21, 2008

Bennett Comes Up For Air

The Ohio GOP's decision to drop its court battle over voter registration may signal a brief detente with Jennifer Brunner. That news and a call to negotiate comes as a surprise but a welcome one. Don't be fooled into thinking the change in tactics is a change in strategy though. The realization that the lawsuit method wasn't gaining any traction finally sunk in and there is still time to regroup. One of the GOP attorneys was quoted as saying different approach was needed.

I can't imagine that the GOP dropped the suit because they are genuinely concerned about the potential ill effects on voter turnout. The change in approach may just mean there are other ways to create problems for legitimate voters on election day. The idea of a court created caging list sounded grand but time is a wasting. Maybe the impact of early voting was a factor in the decision to move away from litigating, for now. Early voting is looking like a much needed relief valve to take the pressure off of the line and the process on Nov. 4th. The GOP has probably conceded that voter caging is not going to have the effect of creating confusion as in years past now that voters have the early option.

Don't count out future court action even if it comes after the election. If for some sick twist of fate Ohio ends up being close enough for a recount then look for the friends of Bob to mount legal challenges to the method of voter verifications. With this in mind don't forget to vote early.

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Sunday, October 19, 2008

Obama and the Powell Doctrine

It's a start.

Colin Powell's complicity in the run up to the Iraq war has never set well with me. He is a soldier's soldier and bucking the chain of command was not in the cards that fateful day in February of 2003. A courageous act like crossing party lines in a moment of attention grabbing honesty did a lot to bring people like me back into the Powell's circle of trust. Now that Powell has gone forward with his endorsement the dynamic of the race continues to change in Obama's favor. As I've been saying the way to win this election is through the Powell doctrine of overwhelming force.

The Powell doctrine in practice.
The Obama campaign has indeed continued to generate the momentum that will build into an overwhelming force come election day. It is fitting that the man who championed the strategy is adding to that wave by jumping party lines and endorsing Obama. Combine the nod from Colin Powell with the ginormous cash hall the campaign raised in September and the force grows. Add in the cascade of endorsements of major newspapers regardless of past political alignment of their editorial boards and the unstoppable nature of the force is apparent. By the time November rolls around an election victory will be inevitable. No matter what crack pot charges are lobbed by Team McCain and regardless of GOP attempts to suppress voter turnout.

Two questions arise from Powell endorsement
Will the McCain attack machine be rendered useless in the wake of Powell's support? If not will the attack dogs raise the question of why a four star general endorsed a terrorist for president?

In an unforeseen twist to the story did Powell just launch himself onto the short list of potential candidates for Secretary of State if Obama is elected? I may be half way to accepting Powell's mea culpa for his disappointing performance during the run up the Iraq war. I'm not sure if his credibility has been restored one hundred percent though. Still even the thought of Powell serving the Obama administration in some other advisory capacity is an intriguing thought. Maybe a role in unwinding the Iraq occupation would be fitting.

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Saturday, October 18, 2008

Post Bailout: Thermometers and Barometers

It will take months to really know if the government plan to rescue our sick financial system is a master stroke or dismal failure.  For now any progress in improving the credit markets is not that apparent to the casual observer.   Some of the indicators that signal relief in the credit markets have shown some improvement.  As reported by Calculated Risk some signs of improving liquidity in the credit markets are popping up.  Most notably some spreads like the TED have improved and the yield on treasuries has increased a little.  Paul Krugman seconds the notion that things are happening.

Unfortunately the economic reality that you and I reside in is headed for a slide.  That sinking feeling was amplified by decline in retail sales (reported as a 1.2% decrease) weakening industrial production and the sorry picture painted by the Fed Beige Book.  The question amongst talking heads and economists is not if there is a recession but, how long and how deep the recession will be. I hope Wall Street enjoys their bailout because the rest of us will be hanging on for the rough ride ahead. 

There's a great new podcast from the elitists at NPR called Planet Money.  Check it out, they're doing a good job of disseminating information that is fit for consumption even if you're economically challenged.

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Quest For The Perfect Caging List

As sure as the leaves will fall off the trees this fall the Ohio GOP will strive to find ways to prevent a free and unfettered election process. The plan usually depends on carving out a large group of potential voters and finding a way to divert them into provisional ballot purgatory. As we have seen this year Bob Bennet et al have focused their energy on creating a court enforced caging list. Why spend untold dollars mailing out certified letters in order to identify potential victims of their age old suppression racket? The events of 2008 have given these creeps the perfect backdrop for asking the courts to do the work for them.

The tactics may differ but the strategy is always the same, divert as many potential voters to the confused path of provisional balloting and hope the election is close. Bill Boyarsky sums it up:
Republicans, as they did in 2004, can make massive challenges of voters in Democratic areas, creating confusion and slowing the vote. Challenged voters cast provisional ballots, which are counted later. But in 2004 many potential voters walked away from long lines created by the challenges. Some doubted that their provisional ballots would be counted.
The histrionics over the ACORN voter registrations and the new focus on getting Jennifer Brunner to employ cross matching have provided the poor slobs on the right the latest method to create that special underclass of voters. The key to this year's scheme is getting a court to enforce the tactics. The corollary to the plan is to turn up the heat on the ACORN story by drumming up white fear and relying on law enforcement to legitimize the fear about the group's activity. And yes, I said white fear. There are reports on numerous threats and racial slur laden emails the group has been receiving since the fear has been ratcheted up.

After losing 9-0 in the US Supreme Court the GOP re-modulated faster than the Borg and filed a new challenge with the Ohio Supremes. This latest filing should worry anyone concerned about the real integrity of this election considering the heavy conservative leaning of the Ohio court. A victory for the GOP will enshrine their caging tactic as version 2.0 and keep the tactic alive for future elections. If the SCO sides with Brunner then the chance to see a fair outcome in the Ohio becomes more of a reality. In the end the only real hedge for winning this election is an overwhelming force of support for the Democratic candidate.

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Tuesday, October 14, 2008

Talk to Krugman's Hand

I'm one of the many Paul Krugman acolytes who is thrilled over his winning the Nobel Prize. I'm an avid reader of his columns, blog and books. I even manage to peruse some of his academic stuff when I'm feelin' wonky. He of course won the prize for his work on international trade patterns and economic geography not the column. Although most of the attention he has received in the popular press is for his regular column in the NYT and the complimentary blog where he has offered scathing reviews of the Prez and his people.

Krugman has been able to train his analytical thought processes and liberal philosophy on the destructive inclinations of Bush era policies and create a narrative for what went wrong in the intervening years of the Bush presidency. He was just on This Week with George S. and was forced to match wits with that well known economic genius George Will. Dr. Krugman somehow managed to rebut Will's assertion that the troubles in the financial markets are attitudinal not systemic.

His brutal honesty in assessing the dismal failures of movement conservatism as exercised through the current occupiers of the administration has made him a lightning rod for the wrath of conservative bloviators. I've lost count of how many times Bill O'Reilly has referred to Krugman as a socialist. I'm sure there will be plenty more howling from right wing pundits that were already reeling from Al Gore's Nobel Prize selection last year.

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Monday, October 13, 2008

Akron Sewer Lease, Vote Maybe

Signs for Issue 8 are appearing all over Akron pleading the passerby to consider the future of our children. The City of Akron's plan to create a scholarship program funded with proceeds from a public infrastructure lease has merit but questions remain on the funding scheme. Will we citizens inherit a plan with sound funding or one that smells like the composting plant in the valley?
Creating a fund for scholarships for Akron residents is an idea that has could be a boon for the city's future. Establishing a realistic baseline for the anticipated sources of funds hasn't been made very clear as of yet. I would feel more confident about the legitimacy of the plan in it's entirety, not just the uses side, if more information on the financing can be revealed. So far the Mayor has painted in broad brush strokes when it comes to the financial structure of the lease plan. I think a finer level of detail other than the current "sewers are worth some money" sloganeering is needed here. I checked the Akron Scholarship Plan website for more information on the mechanics of the funding and what lease would entail. After a read through of the proposed charter amendment I had more questions. Some things that I would like to find out before casting a vote on Issue 8:

What is the Akron Community Fund? I know what it is being portrayed as in the charter language. It's an organization that the Finance Director will contract out the management of the Scholarship Program/Lease Revenue. Will this group actually manage City funds? Isn't the City legally bound to issue a request for bids for this type of service? The fact that the City is using an outside group to manage the program and the fund raises questions on the administrative costs associated with the plan. Will teh contract be for a fixed rate with a not to exceed amount? It should be. Remember less savings equals less scholarship money.

The City will transfer all net proceeds from the lease agreement to Akron Community Fund. Will the lease payment be received up front? Normally lease payments are made annually. Is the City opting to take the net present value of all of the lease payments up front? What rate of return is being considered?

The net proceeds are transferred after all outstanding debt (bonds, notes, loans) is paid off. What is the amount of those obligations? That will lower the net proceeds available for the program. I am guessing the City doesn't have much in the way of outstanding sewer bonds since they raised rates to pay for the CSO projects like Rack 40. Like other sewer systems they probably have some EPA loans and OWDA loans to pay off. That amount of debt is an important piece of the puzzle.

Speaking of capital improvements, I'm still not clear on how these are handled. There is language stating that the lessee must comply with laws and regulations set by the EPA and standards set by the Director of Public Service. There is also language stating that improvements must be approved separately by the City? So who pays for the improvements? Wouldn't the hefty price tag on improving CSO problems scare investors away? The temptation to cut operating costs by shirking environmental laws has to be a plausible risk in leasing to a private operator. What type of oversight will the City maintain over the lessee?

What happens if the city inks a deal that generates a substantially lower amount than the planned $200 million that is being indicated? What is the city fails to attract an interested party because the terms are not favorable to a prospective lessee? What if the trouble in the capital markets scares everyone away? The charter amendment caps rate increases at 3.9% per year based on the current rate adjustment plan in place. The lease deals I've read about have allowed the lessee to raise user fees as they see fit to make the investment worthwhile.

And lastly, will the new operator be willing to do something about the smell out at the City composting facility? Just thought I'd ask.

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Saturday, October 11, 2008

Seamore Butts Is Not the Problem

The latest hysteria over fraudulent voter registration cards is an overblown reaction to a minor issue. The stories about bad voter registration cards are hyped as indicators of insidious election fraud coordinated to tilt the election in one candidate's favor. The Plain Dealer and some other media outlets have been in a tailspin recently over problems with a small number of voter registration turned in to Cuyahoga County by ACORN.

A story in the PD about the voter registrations in question describes the situation but finally manages to provide some much needed context as to what is happening in Cuyahoga County. As you could have guessed the amount of names in question is minimal, the story by Joe Guillen indicates 50 out of 65,000 cards turned in have problems. According to my slide rule that would be a staggering 0.08% (I'm even rounding up) of registrations turned in to the elections board. The cards were already flagged by board employees so it's not a voting issue. Even the normally bitchy pants Rob Frost, Chairman of the Cuyahoga County GOP wasn't overly concerned, from the PD:
But even Chairman Rob Frost, the second Republican member on the county's election board, said the potentially fraudulent registration cards do not jeopardize the fairness of the election.
His opinion on the lack of severity of the matter was seconded by the other Republican member of the Cuyahoga County BOE, Jeff Hastings. The consensus seems to be that the bad registrations are a result of a sloppy operation on the part of ACORN's staff not a concerted effort to have everyone vote three times. That understanding over the ACORN voter card issue has been lost on the McCain Campaign. Seeing another line of attack McCain and his advisors have begun to link Obama to the group and it's alleged diabolical scheme to register fake voters. If you were part of the flailing John McCain campaign you'd probably do the same thing. Claiming that a few erratic voter registration cards threaten the election process isn't an honest assessment of the real problems facing voters.

A story written by Dennis Willard appearing in today's ABJ highlights the true threat to free and unfettered elections. In his account the Greene County (Ohio) Sheriff had taken up the banner of fighting election fraud. What made this case disturbing was the Jim Crowe era tactics attempted by a elected law enforcement official. As Willard points out Sheriff Gene Fischer took it upon himself with no evidence of apparent wrong doing (only rumors) to start investigating the names of the 300 or so persons who early voted in Greene County. Fischer's requests involved seeking the public and non public information of the people who early voted. Presumably the names would include some of the students attending two historically black universities that are located within the County. The arbitrary and seemingly biased way that this "investigation " was started is enough to sound the tocsin over voter suppression:
This ill-conceived act is enough to raise questions about Fischer's understanding of the law and his sensitivity to ensuring that voters —especially African-American voters — feel secure and not threatened by exercising their fundamental rights, but his ineptitude did not occur in a vacuum.
The context Willard refers to is the importance of Ohio in this election and the issues that demobilizing voters, be they black or white through intimidation and suppression could have on the outcome.

The real problem with elections in swing states like Ohio is and has always been voter suppression and purging of voter roles. Unlike registration drives from outside groups these two menaces are abetted by the government bodies charged with protecting our most important franchise. A dark and inequitable force that seems to gravitate around poor and working class citizens in economically depressed areas.

Just in the past few weeks there have been stories of attempts to purge voters from the rolls in Michigan, Colorado and even in Ohio (no way). The story is repeated every four years and the purging always seems to zero in on minority and poor voters. In fact Michigan officials were going to attempt to challge voters who's homes had been foreclosed on and thus had outdated mailing addresses. Who can forget the voter challenging drives and caging lists in Ohio in 2004? That round of voter suppression was brought to you by the Ohio GOP and the fomerly important Ken Blackwell. An exhaustive story by Robert Kennedy Jr. detailed the damage caused to the fairness of Ohio's voting system in 2004.

Clearly the likes of Seamore Butts, Hugh Jass, Heywood Jablome and the Dallas Cowboys pose only minor nuisance for election board staff trying to sort through voter registrations. Troubles from phony registration cards pale in comparison to the damage caused by system enforced voter purging and suppression that rears its head every four years. I've said before the only sure way of overcoming this undemocratic influence is through the Powell Doctrine of overwhelming force. The crushing wave of support for candidates like Obama and the disdain for more Bush era policies will provide that force on election day.

If you get the chance check out Greg Palast's new web site and comic book called Steal Your Vote Back. Vote early vote often once.

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Exclusive Summit Co. Moutain Lion Pic

Unconfirmed reports say that this guy can take down deer three two at a time.



Enjoy.

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Wednesday, October 08, 2008

McCain Needs Fiber Infusion

I didn't have the energy to do any fancy live blogging of last night's debate but a few observations are in order:

McCain and his people have been barking about the town hall format and how that's his strong suit. If that is the case then what the hell happened last night? Things went south as soon as McCain unleashed that dry retort of "not you" to Brokaw in response to his question on Sec. of Treasury picks. As the night dragged on McCain's lurking in the background as Obama answered questions just made things stranger. McCain's now famous "that one" quip coupled with ad nauseam use of the "my friends" technique all indicated a man teetering on the edge of senior citizenship. Add the long Christmas list style notes written with a Sharpie and it becomes clear that this guy should be thinking about hanging it up to enjoy his golden years in Sedona.

Seriously, when you start exhibiting overt signs of old age as McCain clearly is now is the time to ease back and take it easy. It's best to be relax, stay close to a bathroom and load up on plaid pants. This is not time to be running for president, just ask Bob Dole.

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Tuesday, October 07, 2008

49 Nifty United States

Sarah Palin has completely degenerated into self parody at this point in the race.  Could it be any more obvious that she serves no other purpose than to rile up the base at those creepy-ass rallies?  By now the media cycle has been permeated with this one liner:

"This is not a man who sees America like you and I see America..."

We sadly know the rest by now.  I wouldn't expect the MSM not to pick up this meme and repeat it,that's what they do.  What sticks in my craw is that I have yet to see one outlet at least come back and mention Saracuda's association with the secessionist Alaskan Independence Party.  When she says " the way you and I see America", does she mean one with only forty nine states?  Could at least one crummy news publication or cable show at least bring this up, just once? 


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Sunday, October 05, 2008

Sewer Plan Oblivious to Market Woes

The City of Akron is moving ahead with the Sewer Lease for Scholarships plan despite the uncertain conditions in the financial markets for municipal debt. I'm sure the mayor would counter that this is a lease transaction but it will take place in the same arena that municipal debt and financial intermediaries do business. From what I've heard there is a bit of a credit crunch in this once thriving playground.

As has been the case from the beginning the Plusquellic administration has chosen to focus on the novel concept on how to use the $200 million that will theoretically flow from a lease transaction. I for one could draw up a great deck of power point slides that could layout my plans for spending $200 million. That wouldn't change the fact that I don't have it now and have much less chance of getting it that the financial markets are in a bad mood.

The Mayor will be submitting an ordinance to council Monday to lay out the requirements for the scholarship program. The story in the ABJ cites a press release that is not on the City's website yet that breaks out the main requirements of the program. The stated parameters call for the first scholarships to be allocated by fall of 2009. I understand that a measure will be on the ballot this November and time is a wasting but not enough attention has been paid (at least in public) to how a lease will raise the stated amount of funding.

There are already three factors that either potentially lower the net savings (money that will be gained from a lease) of the transaction or make it less likely to occur. Two go together and are already in the works. Council took up an ordinance that will transfer the employees of the Sewer Division to other City divisions. The dollars needed to pay those personnel costs will lower the net savings generated from the lease agreement. The City in choosing to forgo that potential savings will decrease the net savings of the deal. The second component is the rigid conditions the City will have to demand from the potential lessee in order to make the deal politically palatable. These include rate caps on user charges and continuing the capital costs associated with the CSO requirements for the system. These too will decrease desirability and net savings. Less savings less scholarship dollars.

The third sticking point is just that. The credit markets are stuck here in the U.S. and in Europe. Sure we enacted a bailout plan but that has yet to take effect. The financial system is still not moving at normal pace. Even if it were, the condition of the credit markets overseas is even more pertinent. There are numerous reports that the European strain of what ails American markets has that system in a bind also. You see, chances are the company that City leases to will be based in Europe. They will be required to pony up a large one time payment which they will have to borrow from a financial institution. If they normally borrow from a line of credit originating in the troubled Eurozone banking system then their ability to do so will be lessened. The problem has been and still is the sources of funds.

Council is meeting tomorrow to discuss the plan. Maybe some members will bring these points up. I'm still waiting for the City to release some basic numbers on how this thing will work on the financing side.

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The Dukes of Moral Hazard

I've been too busy enjoying the splendid early fall weather to comment on the new bailout law. I don't have much to provide in the way of insight now that we have officially entered a new frontier in American finance. Sure I'm fine that the U.S. Treasury is going to leverage hundreds and billions of dollars to unstick the financial system.

I like some other observers (Krugman) don't see exactly how buying the assets in question will actually work in the end. I also don't get the connection between the new found support from members of Congress and the billions of dollars of crazy tax breaks inserted into numerous sections of the final bill. Congress peoples from both ends of the political spectrum implored that doing the bailout would be an irresponsible use of taxpayer funds. Some of the staunch free market advocates in the house insisted that any government intervention would lead to that nasty old moral hazard condition. The market got us here and it would lead us out free of any socialized fixes. It's amazing what a subsidy for wooden arrow makers here and a break for race track operators there will do to bend those ideological leanings. The real travesty will of course be the lack of any tightening, no rethinking the way we regulate financial markets.

In the end the Treasury plan as passed may have an effect and start to loosen up the credit markets like a big dose of fiscal Metamucil. A quick check of the TED spread every week will verify if this is happening. That's great for the large financial firms (in college we referred to them as financial intermediaries) since they comprise the core of the financial monolith or shadow banking system.

What about all of us mortals that occupy the fiscal purgatory of the real economy? The bailout for us has yet to arrive. Unemployment is up (159,000 jobs lost last month), credit is drying up, and the rate of inflation has yet to show signs of subsiding. The fate of local governments as seen by their budget outlooks for next year is looking more grim. What will the Federal government do for them? Does our economy get an enema next? For now all we can do is hold on and hope for relief. I fear that the money for the Main Street bail out was already spent.

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Thursday, October 02, 2008

VP Darn Tootin' Debate Lowlights You Betcha

I can't believe how little substance Palin provided in her "answers" to the foreign policy section of the debate.

My favorite higlight was Biden's rebuttal on meeting with Iran floored Palin. Spain, Spain! SP didn't even ask for a redirect after that. Next question please.

It can be surmised that the half life of schmaltzy debate soundbites appears to be much less than Palin's handlers expected. Not unlike the half life of her folksy nonsubstanative appeal to voters which has also fallen short of the expectations of the McCain people.

We can now sit back and listen to the insufferable storyline being propagated across cablenewsland. The one that says as long as she didn't implode or belch out loud she accomplished her mission. Palin must have cycled though her note cards at least twice. That's great. I agree with Andrew Sullivan she now should have no problem submitting to press interviews.

Oh and by the way it's General McKeirnan.


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