Home Rule On Trial

Tomorrow Ohio's cities get to make a case for preserving their ability to craft policy at the local level.  The SCO will hear arguments from the cities of Akron, Lima and Cleveland on whether a State law prohibiting municipal residency requirements should be overturned.  Cleveland was allowed to join in after flubbing the filing.  The court consisting of seven Repubicans will hear arguments from two seperate cases revolving around the residency issue. 

While residency rules for city employees is at the center of the court arguements the real threat is whether or not the court will allow further erosion of the home rule provision of the state consitution.  It's no secret that there's some animosity towards or at least a lack of concern for granting localities the discretion to forge policy as they deem necessary.  The negative vibe is worse for any cities named Cleveland or Akron. 

There's no telling what the court will decide, uphold the lower court ruling striking down the state law (good) or overturn the lower court ruling (bad).  The future of how cities govern themselves is in the balance.  There's no indication on how long the court will take to render an opinion but a few points should be kept in mind.

The State law was crammed through the General Assembly cheifly as a result of one State Senator, Tim ' got his hands in everyhting' Grendell who was considering a run for Attorney General in 2006.  Why not solidfy a large voting block from the F.O.P. and the Firefighter Unions by granting them something from their perenial wish list?  Long story short, Grendell didn't run AG but the law was passed anyway.  Another example of former township trustees dictating what is good and bad for cities.

The police and fire organizations hate residency requirements and that passion has kept the anti-residency law movement alive.  I've found that most big cities myaors have a somewhat adverserial relationship with their safety forces.  Fighting residency laws is a great way to stick it to the admnstration if there is a contentious relationship to begin with.  The public safety employees can always find supporters in Columbus.   Lawmakers are willing to take up the cause even after cities like Akron have had residency requirements approved by voters more than once.  So much for the citizens having a say.

The impact of upholdng the State law will have a corrosive effect on urban neighborhoods.  Scores of police and fire personnel (aside from those already skirting the residency law) will move out of their repsective cities.  Losing the residency requirement would probably have a greater impact on a City like Cleveland that has more to lose through the exodus of resident police, fire and EMS employees.  

The other downside is the long-term detriment to the concept of community policing.  The mission to serve and protect is weakend when the very men and women who are asked to patrol our streets have no vested interest in the community other than earning a paycheck.  As a resident of one of the cites represented I strongly believe that the safety forces are not hired mercenaries but an important piece of the community at large. 

I understand that police and fire place themsleves at great risk to keep us safe and that service is probably the most important one provided by cities.  As a residents and taxpayers we have a stake in the way those services are provided and the way in which our elected leaders govern our localities.  Funny how no one is ever concerned if the accountants or garbagemen are happy with residency requirements.

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Obama The Ox

According to the Chinese zodiac 2009 is the year of the ox.  Barack Obama, the man taking the oath of office in one days time is an ox by birth year.  If you believe in these typeologies then we have elected the right person for the right time in our nation's history:

The Ox is the sign of prosperity through fortitude and hard work. This powerful sign is a born leader, being quite dependable and possessing an innate ability to achieve great things. As one might guess, such people are dependable, calm, and modest. Like their animal namesake, the Ox is unswervingly patient, tireless in their work, and capable of enduring any amount of hardship without complaint.

I hope he lives up to the prescribed attributes of this year's animal, especially the part about work and enduring hardship. His predecessor ran out of steam before the first one hundred days were up.

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Less Triangulating More Ass Kicking

Thomas Frank posits that a President Obama would benefit from not taking up the Clintonian banner of the third way for every major policy initiative.

I agree with Thomas' idea that triangulation or taking cover for the political center in some respects betrays progressive tenets. The attempt to not appear partisan has brought us the some dubious results during the Bush years:

Well, there's Nafta, which proved Democrats could stand up to labor. There's the repeal of the Glass-Steagall Act. There's the Iraq war resolution, approved by numerous Democrats in brave defiance of their party's left. Triumphs all.

We're just asking for some recognition now that the conditions on the ground have changed. The belief in health care reform, regulation of financial markets and looking for accountability shouldn't be sacrificed because Obama wants to transcend political boundaries.

Take the planned economic stimulus package to be debated in the coming weeks. I don't give a rat's ass if Obama thinks he needs 80 vote to add legitimacy to the Democratic plan. The over reliance on tax cuts in the plan will weaken its effect and all to make sure ten more Republican Senators vote yes. From what I've read sixty is still the necessary number of votes to get something done in the Senate.

One more thing. I'm not confusing reaching out with triangulating. Tapping Republicans to hold cabinet posts, dining with George Will and asking evangelical nutcases to speak on inauguration day is fine. Reaching out is about getting players to come over to your side of the policy fence not moving the goal post to the right. Reaching out could actually widen the appeal of true progressive ideals in the long term. 

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BofA, WTF

It looks like another bank consolidation will be using federal juice to get the deal done. The WSJ reports today that Bank of America will be tapping the TARP to complete it's acquisition of investment house Merrill Lynch. Think of it as affirmative action for creative destruction. Not exactly what Joseph Schumpeter had in mind when he was developing the concept of corporate evolution through the natural uninhibited cycles of free market ebb and flow. The TARP, pitched as the only means to keep the credit markets from freezing up for good, has become the grease lubricating a new round of bank consolidations.

There are no letters in the acronym TARP that describe the unexpected outcome of the federal bailout to banks. Citi has benefited greatly from the largess and PNC used the TARP to buy our beloved NatCity. Compare and contrast these events with the struggle to get a loan package approved for the U.S. automakers. Paulson et al insisted the remaining TARP funds were committed for an undisclosed use and would not be available to loan to the automakers. Now that the story is out is appears to this observer of recent history that the BofA Merrill deal was given priority over the Big Three loan. That puny $17.4 billion loan package begrudgingly handed over to the Big Three was dwarfed in by the crazy billions being thrown at BofA and Citi alone.

This latest episode is one more example of the Treasury Department's tilt towards helping Hank's comrades in the financial sector. As an example take a look at this piece from The Big Picture comparing the terms the Treasury gave to Goldman in comparison to what super-investor Warren Buffet was able to demand for a stake in the firm. Clearly the Treasury program was designed to provide money without much in return from the banks.

A massive reorganization of the big players in banking was always in cards when you consider the people involved, I guess it shouldn't be a surprise. Congress, taxpayers and the losers who got the short end of the deals (Nat City) shouldn't be surprised at the outcome of TARP I. The next chapter, TARPII will be getting under way soon. Maybe the next round will have more accountability and less emphasis on creative destruction.

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State's Next Budget Is Shovel Ready

It's no secret that the next State budget is going to test Ted Strickland's ability to lead during a fiscal crisis. The current budget has already been trimmed back by over $1.2 billion in the past six months. A real overhaul of the 2010 SFY budget (effective 7/1/2009) is going to be required in order to eradicate a monster $7 billion projected deficit.

Digging out of this mess is not going to be easy. How unassailable is that $7 billion chasm? Even employing theoretical 25% cuts across the board would only yield $4.7 billion of savings according to the State budget office. The impact of reductions that deep would be felt by all Ohioans.

Unlike the federal government the States can't print money or deficit spend to get by in tough times. The budget must be in balance when all is said and done and the Governor will have to bring the State's fiscal house in order one way or the other. To keep it in simple budgeting terms, one way is to cut stuff and the other way is to increase revenue. With this two part approach in mind here are three bits of advice for the Ted to consider whilst navigating this seemingly impossible challenge that lays ahead.

Steady Teddy
There are some tough choices ahead for the Gov. Cutting popular programs and laying off State employees are just some of the decisions that await him. Ted doesn't need me extolling the virtues of showing political courage in the face of uncertainty to make the right choices. Shed the ministerial nicety and get tough.

He exhibited some spine this week by vetoing three bills passed in the lame duck session at the end of 2008. The veto included popular but unaffordable items including the veterans bonuses and the film industry tax credits. These things would be nice in good times but there's a budget crisis in the works. The other item was the shady election "reforms" that had no business being brought up in the final session on a last minute basis. A no brainer for the veto pens wrath but still a good commendable move.

A Little Help From The Feds
Help is on the way in the form of sizable Federal stimulus package to the States. Strickland has been on point not just for Ohio but for all of the States facing budgetary melt downs. In an interview on C-SPAN he made the case for a large injection of Federal money to States for infrastructure projects and education programs to help ease the strain on State budgets. Keeping the push for aid to the States front and center will yield benefits. Ohioans need to understand how their interests will be served and The Gov' will come across as a key leader on getting the thing done the right way.


The Tax Reality
There is no way around it some taxes and fees will have to be increased. That would seem to be political suicide for a guy that will be running for re-election or for Senate in 2010. Too bad dude, the budget has to be balanced and there is no way that's happening with budget cuts alone.

He could start by entertaining a restoration of income tax rates to a more responsible level for the higher income brackets. That would make sense. The minions on the right will surely pounce on this move. Ohioans will have to be reminded that it was the failed tax polices of the GOP lead General Assembly that are partly responsible for the revenue shortfalls crippling State finances. Let John Kasich explain how completely phasing out the income tax is a sensible way forward.

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PNatCity

Game Over. The purchase of Cleveland banking staple National City Corp. by PNC was approved by shareholders today. The NCB name will eventually go the way of Euclid Beach Park, Sohio and Cleveland Trust but, we're use to this type of thing by now.

PNC's purchase of Nat City was made possible by the largess of the Treasury TARP program. This has called into question the motive behind allowing the acquisition to go through considering that Nat City was denied TARP funds resulting in the PNC takeover.

As much as the circumstances around PNC's purchase have rankled local members of Congress the short lived Save NCB Movement was no match for the forces of creative destruction. I am of course being cynical about the creative destruction part. The TARP and the resulting thumbs up and thumbs down are government sponsored financial engineering at its finest. So much for an invisible hand on the tiller.

Regardless of the way NCB was getting the shaft in this deal there are two inescapable facts that should be considered. One, NatCity was for sale with or without the government backed infusion that pushed PNC over the edge. The private equity investment NCB received in May was not enough to prevent a future sale. I've had people from NCB tell me as much. Two, the sorry condition of Nat City is the direct result of the bank's management team betting that the subprime cash conveyor belt would never shut down. It did and now the local banking landscape is a changin'.

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A Fitting Send Off From The Iraqis

It took a shoe lobbing journalist to remind us what a failure the Iraq "war" has been.

Of course there are other ways of showing one's disdain for turning a country of 25 million into a failed free market laboratory. Nothing says it quite like a pair of size ten loafers hurtling toward your head.

The Las Vegas Browns

Each year around this time we have to ask ourselves the question, does Northeast Ohio really need an NFL team?

Come on man you know it's true. This return of the Cleveland Browns thing that started in 1999 is a failed experiment. The team has been burning through coaches, quarterbacks, money and respect at an unsustainable rate. There's no end in sight to this misery and bringing in another coach won't make a difference. Bill Cowher left the league on top of his game. Why would he want risk his legacy by coming this "coaching graveyard", the Diamond Shoals of the AFC North?

Our massive investment in public dollars and human capital has not yielded a return on investment worthy of continuing the tradition of Cleveland football. It doesn't take Roldo writing the same article thirty-seven times to get that point across. There must be some large metro area drooling over the prospect of having an NFL team. They can have ours if the price is right. The agreement between the City and the Browns would have to be changed and the outstanding debt on the stadium would have to be retired.

It will not be easy letting go but the decision will give us all a clean break and the gift of starting over. There will be no team here but the Cleveland Browns diaspora has always been robust in all parts of the country so it doesn't really matter where they end up. What we'll be left with is the world's largest Browns Backers Club.

Maybe we can lure the Columbus Crew to our city. We'll have a natural turf stadium available.

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Ohio's Election Disconnect

The 2008 election is in the history books but Ohio's election troubles are not. Let's just say it's a blessing in more than one way that the presidential race was not close.

Dennis Willard calls out the politically motivated Ohio Supreme Court as well as the Republican leadership in the General Assembly. He aptly labels the never partisan interference as Ohio's insane season (worse than silly season)and offers a blunt remedy:

Then, everyone involved should put down their crayons and read Election Law for Dummies before attempting to fix the many flaws in Ohio's election law.

Step 1: Set aside vanity mirror and remove such silly technicalities as you must sign and print your name or your provisional ballot doesn't count.

Finally, for once in your political careers, heed your own rhetoric and place the needs of the voter and citizenry first.

What I can't figure out is why GOP legislators and jurists turn a blind eye to the fact that election insanity hurts voters of all political stripes. None of this critique even factors in the buffoonery on display by the Ohio Republican Party (Bennett, et al) every election cycle.

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Cleveland's Doppler Cartel

My childhood hero Dick "wooly bear man" Goddard, friend to all dogs and cats, is in the global warming denier camp. So says an extenisve expose into Cleveland's television weather guys that was given front page space in Wednesday's Plain Dealer. The list goes on to other well know purveyors of the Doppler such as Mark Johnson, Andre Bernier, John Loufman and Mark Nolan, (no longer doing weather). Oddly enough I didn't see any women on the list.

The concept of the story is actually kind of humorous. At first it would seem that this position would contradict the duties that local meteorologists fulfill on a daily basis. If you take a step back and consider that there is one glaring fact that exempts the Doppler cartel from being rational about global warming, they are not scientists. Sure each of the weathermen carries a seal form the AMS but, aren't they really giving a glorified weather Power Point presentation every night?

What would be really interesting is to see what the correlation is between the views of members of the weather underground that aligns their views on global warming. Such an investigation woudl be fodder for the guys at Freakonomics. There are a variety of explanations for their skepticism given, from complete denial the earth is indeed heating up to the thesis presented in Michael Crichton's book State of Fear.

Bernier said local meteorologists "are just more practical" and not swayed by the opportunity for more grant money to do more research proving climate change.

Using Crichton's work to refute global warming is common among a certain persuasion of political minds. The only problem is that Crichton was not a scientist. Scientists submit their work to peer review which Crichton did not do. This article gives the impression that the large sample of weather broadcasters in Cleveland and across the country are in the same camp ideological camp. Their focus on presenting the very short term outlook of weather as opposed to long term climate has apparently swayed their opinions, almost like a badge of honor. Next up, does too much time in front of a chromokey impact human logic?

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Feel Free To Panic

"You better get on your knees and pray,
panic is on the way"
- Oasis

It's official, we are in a recession. So says the NBER, the organization that is assigned the noble duty of charting the boom and busts of the U.S. economy.

I'm only playing up to the hype that permeates the media and internets, there's no reason to panic yet. We just went through one of these recessionary periods seven years ago, no big deal. Anyway, economists say that recessions happen on the margins so most of you may end up doing fine. There is plenty of reporting on how the economic downturn is impacting our lives and fleshing out just where those margins are. A small sample of what I've found interesting over the last twenty-four hours.

It's Raining Bad News in Columbus
A follow up to my earlier post on the extreme duress being placed on State finances by lagging tax collections. Articles on GONGWER and the Plain Dealer add more information about the precarious position the Strickland administration is in. They are looking at another round of cuts followed by a new budget process that will require seismic changes in program spending to stay afloat. Ted can't even think about having the General Assembly freeze the final phase on cuts to the income tax lest he be branded "tax hike Ted". That ambitious plan to reform school funding is becoming more of a challenge every day.

Credit Market Bummer
Ignore the stock market for now and pain it is inflicting on your 401k. Market volatility is up so the wild swings in market value are becoming common place. The Volatility Index (VIX) has been averaging 40 as compared to the once normal 20. The real problem has been with the more pertinent credit markets. The untouchable ether where all financial activity comes to being.

Calculated Risk has continued to follow several key indicators and the news in the past few days is disconcerting. Credit markets are still exhibiting troubling signs including what CR called a "stunning flight" to Treasuries on Monday. This trend combined with other bad news (TED Spread up), indicates the problems that were caused by the collapse of the financial system have not gone away.

Portable Alpha, Sinkable Pension
The WSJ had a very interesting but short article on the plight of the Pennsylvania State Pension Fund. It looks like that fund and some others are taking huge losses from market downturns. Now, one would expect a pension fund to see a decrease in earnings and value considering the current market conditions. Unfortunately the managers at the PA pension fund had been imbibing the same elixir that other financial risk takers were drunk on. Using a hedging strategy called portable alpha the pension fund managers asserted they could beat the market and never pay the price for excessive risk taking. That decision hasn't worked out to well, they've lost billions in the last quarter alone.

The scope of problems and extreme difficulty the current financial crisis has created for public finance is impressive. There will most likely be more stories such as this one in the coming months.

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State Tax Reform Comes Home to Roost

As the economy continue to soften in Ohio the State is expecting to see alarming decreases in tax revenue. This comes as no surprise to observers of the State budget and local governments in general. What goes on at the State level may seem distant but it will have an effect on local governments. The State is getting ready to make deeper cuts in early 2009 and the pain will certainly trickle down to the county and municipal levels.

Reporting in last week's Columbus Dispatch highlighted the budget-sinking drop of revenue into the State's coffers. Tax revenue decreasing from one year to the next had only happened once in fifty years until 2006. They are now expecting to see a consecutive yearly drop three years running. The State will again have to make budget cuts to current the biennial budget in order to avoid depleting its cash reserves. This move does not include the massive reductions in spending that will have to be made once the new budget process starts in spring of next year.

The recessionary trends in Ohio's economy have definitely contributed to the downturn in tax revenue. Blame must also be assigned to the large scale reduction (21%) in the state income tax passed in 2005. While revamping of Ohio's aged property and corporate tax structure was needed, the cuts to the income tax rates have proven to be reckless. Bill Harris was quoted in the Dispatch article supporting the belief that the income tax cuts have ameliorated the negative impacts of the the sour economy.

Too bad history is not on the Senate president's side. As mentioned above the State had not seen consecutive drops in tax revenue in fifty years, until 2006. Hmm, 2006 would have been the first year the tax rate cuts and other "reforms" went into effect. Funny how dropping tax rates doesn't result in an increase in tax collections as claimed by the reformers. Surely in that fifty year time frame there were at least five or six recessionary periods. Even with the downturns over that half century, tax collections under the old tax regime had not resulted in a year over year decrease in collections.

At this point the administration doesn't have many options in the way of revenue enhancements. The window to freeze the fifth and final phase-in of the income tax reduction has passed. Governor Strickland has mentioned repeatedly that he will not touch the third rail of Ohio politics and consider raising any taxes, whatsoever. The State will be limited to two other options to bring the budget in line with current resources; cutting programs or creative financing. Reducing program spending includes cutting staff and cutting assistance to local governments such as counties, cities and schools. The Local Government Fund which is fed from State general revenue could be looking at once unthinkable levels of reduction. This step alone will have a serious impact on the mission critical programs of the locals.

The creative financing route entails tapping the rainy day fund or securitizing assets. The administration has been ambivalent about spending down the cash reserves in the rainy day fund. That option would only work in the short term as the burn rate for that cash would be very fast. The State already converted a larget asset, the tobacco settlement fund, into cash last year. Other than that fund there aren't many big time assets laying around to be converted into cash. Free money doesn't present itsle that often. The short of it is that cutting programs is the only tenable option for achieving the bulk of the savings needed.

The revenue from tax collections ebbs and flows with the cyclical economic patterns of boom and bust, nothing new. Reforming the tax system was not a bad idea but the shortsighted way that reform was implemented has put the State in an downward spiraling bind that will have far reaching impacts. The peril of H.B. 66 is that it accomplished political objectives than actually placing Ohio's finances on a path of long term stability.

At this rate that new "tax reform" proposal floating around the halls of the Buckeye Institute may be ready for the dustbin of history.

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PBD, We Hardly Knew Ye

Sorry to see the lights turned out at the Stable. Redhorse has been one of my favorite local bloggers and I made it a point to keep up with the political and other musings provided at the "Billy". I appreciate many of the views expressed on those pages with the exception of your affinity for Blue Dogs.

Anyhow, thanks for including us on your local blogroll for the past year and maybe we'll see you on the internets again.

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The Citi Slide

A sliding stock price, thousands of layoffs and dire predictions from the financial press bring the troubles of the U.S. automakers to mind.

I'd almost forgotten about the tail spin the banking sector has been in. While the fate of the Big Three was debated on Capital Hill this week the wheels were falling off the banking giant Citigroup. We thought the TARP program had provided some stability to the reeling financial markets but there are more rumblings of looming problems, especially at Citi. Today's peice in the NYT recounts the all too familiar hubris laden journey of the firm over the past five years.

It will be interesting to see what happens with Citi. Will they be sold or merge with another Wall Street titan? Better yet, will the Treasury Department decide that Citi is too big to fail? Maybe it's true when they say the first $25 billion is the hardest to come by. Brad DeLong has an interesting yet cynical outlook on what to do with Citi:

Yep. Time to do it. Swedish model. No more of this "preferred stock capital injection" business. Common stock. And with commitment comes control.

If it comes to that then surely a loan to the U.S. automakers is in order.

Update: This story is running on Bloomberg. Looks like Citi is too big to fail.

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Big Three Battlegrounds

Why can't we all just get along? The prospect of of having to intervene in another sector of the economy, the auto industry, has created a defacto battle ground of sorts. The attention being paid to the sad state of affairs at GM, Chrysler and Ford has exposed harsh divisions along policy, ideological and societal lines. What could have been a straight forward debate about loaning money to the Big Three has become a struggle along multiple fronts. You thought the people in Washington just wanted to entertain a new bailout package but there are more layers to this onion than meets eye.

The Fight For Stability in a Crisis
The guys in charge of the automakers will tell you that their companies are fighting to stay alive and the dysfunctional state of the credit markets is making things hard. They'd love to turn to the credit markets to borrow money and replace the cash they are burning through but there's a financial crisis in full swing so that's not an option. Considering all that is being done for the financial sector a loan to save or stabilize the U.S. automakers and the thousands of jobs that are at risk doesn't seem out of bounds.

Remember that $150 billion bailout of AIG (originally set at $87 billion) was deemed necessary because of their omnipresent status in the global financial system. The Treasury coughed up $150 billion to stave off excessive counter party risk. Surely a loan to car makers to bridge the economic crisis caused by the likes of AIG is in the realm of the possible. I think it's safe to say that GM workers will not be attending retreats at exclusive resorts during the loan period. That little fit the media is throwing over the use of corporate jets really seems trivial when compared against the massages and other pampering AIG employees received whilst on government sponsored holiday.

Definitional Schism
There's a low level verbal skirmish over the definition of what government action is, a loan or a bailout. The more loathsome someone feels about the Big Three the more emphasis that is placed on the term bailout. So it may sound like BAILout when muttered on cable television. I'll stick with the more accurate title, it's a loan.

The continued seizing of the credit markets would probably make a reorganization under Chapter 11 untenable. There is a consensus developing not a myth that the bankruptcy would quickly back slide into a liquidation. Consider that auto industry jobs have a multiplier of 9 or 10. A liquidation of GM et al means the evaporation of suppliers and other related industries that are supportive to the manufacturing sector. That includes the mom and pop (sorry for the cliche) diners, barbershops, pizza places etc. that will face untimely eradication from the local economies that depend on auto laborers to pump money into there businesses.

A Tipping Point in the Ideological Struggle?
The right wing pundits, columnists, policy makers and disciples of creative destruction see the argument over "bailing out" the Big Three as a tipping point of sorts. A victory would mean shutting the automakers out of receiving any federal loans and force them into a tailspin leading to liquidation or fragmentation into smaller entities. This scenario may sound detrimental to the U.S. economy as a whole but theses guys know the survival of their ideology is at stake. They have picked this debate, not the $700 billion one, as the final showdown in eradicating the perceived cancers of the free market system they crave.

Mitt Romney, Fox News, the WSJ Opinion page, George Will and others have weighed like an angry mob from the Roman Coliseum with a collective thumbs down. They may arrive at the prognosis using a different methodology but the conclusion is the same. Let them fail and we will be stronger is a common chant from the market worshipers.

The dialectic we are witnessing is actually a full assault on the soft underbelly of the nemesis of free market acolytes. Namely the economic safety net provided by organized labor over the years. You know, luxuries like living wages, health care, pensions and safe working environments. There's blood in the water and the antagonists are waging a proxy war against one the largest remaining strongholds of organized labor. Consider this, one of the graphics run on Fox News today read, "Is this a bailout of the union!". Bailing out shameful greed on Wall Street okay, providing loans to the Big Three (union workers), bad.

If a fatal blow can be dealt to the Big Three surely they think a significant remnant of industrial labor movement could be neutralized in one stroke. Attacking organized labor vis a vis the demonization of the individual worker is one more tactic utilized by the "on your own" crowd. This type of assault on the structure of union employment had been going on before the Big Three Battle of 2008. George Will wrote a celebrated column on the decline of GM in 2006 where he referred to the health care and pensions offered to GM employees as "welfare". He penned a reprise to that column in this week's Post.

Yes, the beloved Joe Six pack that the GOP crowed about during the 2008 election busted his ass on the GM assembly line for 25 years to become a welfare recipient, he in no way earned those benefits. Funny how propping up AIG artificially with unlimited billions doesn't draw the same animus from these guys.

You would think that the crumbling of one of the pillars of free markets ideology, unregulated markets, would have discouraged the protraction of the ideological war. Of course the abysmal attempt of the past few years to embrace free market dogma has been a train wreck all together but that hasn't abated the trumpeting from the sons of Friedman.

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Advanced 'By God' Hydro Solutions

Advanced Hydro Solutions may have finally given up on the hydroelectric project (farce) at the Ohio Edison dam and moved south.  After trying in earnest to get access to the Gorge Metro Park to set up a trial hydroelectric project Advanced Hydro has announced plans to give the rivers of West Virginia a try.  I'm hoping this means they have given up on the Akron project.

The company had tried unsuccessfully to start a hydroelectric project using the First Energy owned Ohio Edison dam as a location.  A stalwart grass roots movement of citizens, park lovers, paddlers and the Summit Metro Parks were able to turn the tide (or turbine) against the company and their silent partner.  It seems most of us believed protecting the park and preventing First Energy from avoiding their dam liability was a worthy cause.  In the end it paid off.  FERC has given up on the proposed project and a court ruling has kept Advanced Hydro out of the park so that colony of monks hood plants can breath easier now.  The ultimate goal is of course getting First Energy to take on the responsibility of removing the 20th century relic.  Doing so would improve the Cuyahoga's health and free up a decent stretch of white water in the process.  Maybe Advanced will have better luck in our neighboring state, there are less people there.

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Change On the Internets

Change has come to the Internets. The Obama Biden transition project has established a web presence at Change.gov. Check it out if you dare.

***
I'm still trying to wrap my mind around what has happened this week. Reading the Wall Street Journal today I kept pausing every time I came across "President Elect Obama" in any of the articles. Today's Wall Street news section is almost exclusively dedicated to Obama stories, it's mind blowing in a way. It's almost as if we're in a parallel universe where something actually went the right way. In another parallel universe the other Fausto is facing the miserable outcome of a McCain Palin election win. Sorry dude I'm staying here.

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I've Been Staring At It All Day

Look what we did to the damn map, it's a thing of beauty. Blue is becoming the new red.



Ohio, I knew you'd come back to your senses eventually.

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Election Day in Akron 8

It's on. The most important election in a generation from Akron's ward 8.

10:15 - Game over once they called Ohio. Knocking on all those f*&#ing doors actually paid off! Everyone take five.

16:30 - just got back from canvassing. basically no one was home. The people I did manage to coax to the door had already voted, good. Before I left the staging house some of the organizers were whining about low turnout in Ohio. That made me cringe. Wouldn't we expect turnout to be lower due the 25% that cast early ballots? Pho twittered about low turnout at the polls. I''ll admit I'm nervous.

12:05 - leaving for the staging house to pick up a last day canvass pack. I hope all this knocking makes a difference. It better.

9:00 - The futility of stupid people. My idiot neighbor just set up a sign with a blown up copy of an anti Obama pamphlet on William Ayers. Talk about low rent. Even the plutocrats down the road aren't going to this extreme.

8:36 - The line at Case is gone. Voters are trickling in now. Did early voting relieve the pressure on election day?

7:40 - I'm going to get my free Starbucks coffee. Hey did you hear it's free if you voted.

6:35 - They are lined up at Case Elementary to get it done before work. Before the doors open the line runs down Harcourt and just starts to wrap around Westvale. They may have a half hour wait. Not too bad compared to four or five hours. Pix to follow.

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Some Local Races of No Real Interest

Sutton Wins By 30
Betty was already looking at a pretty sizable win over her Republican challenger Harry Potter. I don't think that's his real first name he wanted to siphon off some votes from parents of J. K. Rowling fans. Anyway I'll be waiting to see if an Obama coattail effect pushes Sutton's win margin into the stratosphere.

Randy Cole Wants In
Mr. Cole ran for Ward 8 Councilor two years ago and lost to Bob Keith. This election he picked State Representative of the 41st district as his class project. Randy lives in the neighborhood and seems to be well liked. He is challenging incumbent Brian Williams who is also well liked. I have noticed there are more Cole signs in the area. I have even seen some Cole signs paired up with Obama signs which could mean Randy's appeal cuts across party lines, good news for him.

Status Quo in Summit County
I think it's safe to say that all the incumbents holding elected County offices will keep them Some like Sheriff Drew Alexander are unopposed. Why in the hell are we forced to vote for County Engineer? Rusty Pry will have no problem defeating Jim Laria and his giant man size photo yard signs, scary.

The Kooch Hangs On
There was talk that Dennis Kucinich's latest quest for the presidency had fatally tarnished his image and the voters would send him packing. Jim Trakas has an uphill battle to unseat the Kooch even if there is some level of discontent in the 10th district. In the end enough people still love the little elf congressman plus the district is heavy Dem. In a year where there will be a down ticket effect from Obama I expect to see a victorious Dennis emerge on Wednesday. Sorry Jim.

Will PLJ Be Derailed at the Last Minute?
Cuyahoga County Commissioner Jones looked like he would sail to a win over Bay Village Mayor Deb Sutherland (call her Deb). There has been some static over PLJ's use of a County employee and car to be chauffeured to and from work and his law offices. The situation had started to fade when he was busted this Saturday by Channel 3 (or was it 8) in a county car driven by his trusty assistant. There's nothing better than a minor scandal like this to enrage voters but, I don't think Peter has to worry. From what I hear there are more PLJ yard signs in Bay Village than anywhere in the western burbs.

Say It With Me, Snitchler!
Did you know Celeste DeHoff failed to pay her property taxes? Do you even know who Celeste DeHoff is? I'm not even sure what State district this race is for and frankly I don't give a crap. The pay off is the guy running the adds has a great last name for a weaselly looking dude running negative adds. Snitchler, Snitchla. The race is actually for the 50th House district in Stark County.

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