My Recessionary Confessional

Now that the economic data have stopped cliff diving we can all catch our breath and reflect on the current recession.   Better yet, the purveyors of NPR's Planet Money podcast have set up a phone line where we can leave a recessional confession: 

Did you help break the global economy, or even the local one? Planet Money has a new call-in line for your confessions. It's (202) 371-1775.

If anything the call-in approach provides the platform for a great thought experiment.  Most of us observing the financial system cratering under its own gruesome weight feel (rightfully so) like hapless bystanders.  Digging deep enough reveals a thread to the current crisis in just about everyones' personal life.

The cynical Fausto is willing to admit his role.  I didn't run a hedge fund nor did I leverage a PhD in mathematics into developing synthetic CDO's or credit default swaps.  No, my story is a lot like yours.

I am guilty of turning my home into an ATM by way of a home equity line.  Sure we spent the majority of the credit on "capital improvements" but there was plenty of discretion on our part. A few niceties here and there quickly added up.  I'm not proud of my role in running up the U.S. trade deficit while helping to scuttle personal savings rates.  

I'm one of the more fortunate consumers traversing the real economy.  The equity line is almost paid off and the home value was spared the fate of other declining neighborhoods, keeping the underlying mortgage in the money so to speak.  All I can do is resolve to keep the personal debt to a minimum and maintain a glide path of more prudent savings, and all that.  There is it is, not very sexy.  That's how I contributed to the mess. 

State Revenue Reprise

A belated tip of the hat is in order for Beacon Journal opinion page editor Michael Douglas. Mr. Douglas picked up my theme about the real problem with Ohio's budget outlook in his Sunday column. The one-time revenue being used to balance the next budget is a patch for the gaping hole created by the shortsighted tax reforms championed by the GOP several years ago:

Neither do Taylor and her fellow Republicans take responsibility for their ample share of the shortfall. In 2005, they engineered changes in the state tax code that reduced revenues by a projected $4.4 billion in the next biennium. They slashed individual income tax rates by 21 percent. The state's regimen for taxing businesses required much reworking. What wasn't necessary was lowering further the share of taxes paid by businesses,the percentage having fallen from 40 percent in 1975 to 26.5 percent today.

Governor Ted is left with a fiscal shit sandwich and not many options other than temporarily plugging the deficit with one time money.

I second Douglas' call for some mature members of the General Assembly to step up and begin looking for some solutions for Ohio's revenue pickle. There is a measured approach that can be employed to restore some of the tax reductions without creating undue pressure on taxpayers of Ohio.

Death By Optionality

The next phase in preventing potentially insolvent banks (C and BOA) from backsliding into the abyss appears to be another accounting trick. The Treasury plan revealed earlier this week will seek to convert government shares of preferred stock held in beleaguered institutions to common stock. Whoopee! I've read that Geithner likes to preserve optionality,to leave as many doors open as possible. In this case Summers and Geithner both are not willing to concede that some form of nationalization is requisite in the case if C and BOA. They prefer to not exercise that option.

There may be some rationalization for the planned common stock conversion but not everyone agrees what that is. Coincidentally, a mention of the plan Treasury wants to implement can be found in the latest IMF GFSR report . The use of a stock conversion plan is mentioned in the section of the executive summary that discusses bank capitalization:

Most capital injections from governments thus far have come as preferred shares and these have carried with them a high cost that may impair the banks’ ability to attract other forms of private capital. Consideration could be given to converting these shares into common stock so as to reduce this burden.

My favorite members of the loyal opposition school of economics including Paul Krugman and Simon Johnson have cast doubt on this maneuver. I see their point on the seemingly futile nature of the stock conversion. The IMF report does provide some counterbalance to the critical outlook on the Treasury plan. This is the same IMF that Johnson used to work for.

Update:I recently purchased a Kindle and find it very conducive to reading dry and lengthy policy papers. More so than if I were to try to read them online. For what that's worth, I'm not quite sure.

One Time Revenue Ain't The Problem

Mary Taylor has unveiled her latest check on the Strickland administration's budget plan.   Auditor Taylor has stepped out of the normal role of the elected position she holds to evaluate what she thinks is the true deficiency in the governor's plan.  

The resulting opinion includes another admonishment of using one time revenues to to balance the budget. It seem the State Auditor doesn't believe the State  budget should depend on any one time revenue to cover an operating deficit.  Perhaps in an effort to lend some of her officialdom to the Tea Party movement Taylor criticizes the use of Federal Stimulus dollars in the budget as well.  This is becoming a frequent theme emanating from the AOS offices.

I have a news flash for Auditor Taylor, those one time revenues are not the real problem.  If she were to probe her memory she may recall one change she helped enact back in 2005 that preordained the need to depend on one time revenues. 

I am referring to the tax reforms enacted in HB66.  The reforms that Taylor and others supported included a sizable 21% decrease in income tax rates over a five year period. The last phase of cuts occurs this year barring any last minute acts of common sense from the General Assembly. The alteration of the tax regime has contributed significantly to Ohio's revenue woes.  A politically motivated rush to tamp down income tax rates has left the State with a insufficient level of tax revenue.  So much for the Laffer curve inspired myth of increasing tax revenue via tax cuts.

The revenue numbers themselves speak to the short sighted nature of the changes enacted in HB66. Until the change was made the State had never had consecutive years of revenue declines in the last fifty years of experience.  The loss trend started as soon as the income tax reforms began to phase in.  Can that be coincidental . 

Yes, the down turn in the economy is a factor in the revenue decline but, the tax reforms have contributed to the shortfalls that have placed Ohio in perilous budget territory.  Consider this, in the fifty years prior to the tax reforms, there were eight  recessions. In those eight periods of economic decline Ohio's tax revenue had never experienced two consecutive years of decreasing collections.

Taylor's memory is either suppressed or she would rather not admit that the actions taken several years ago by her and her Assembly colleagues and Governor Taft have contributed to Ohio's fiscal woes.  Instead Taylor has opted to be the Ohio GOP's factotum on all things critical of Strickland.  From her lofty perch as Auditor of State she can direct her staff to pop out reports focusing on the perceived shortfalls of the adminstrations handling of the budget and finances. 

In order to take on this role it is conceivable that resources have been redirected on churning out Strickland critiques in lieu of focusing on auditing local governments.  County governments alone could use a good deal of oversight, just look at what's transpiring in Cuyahoga County. In fact large entities like Cuyahoga have to pay a few million dollars a year to contract with a large accounting firm though the State to have the annual audit completed.  The AOS claims they don't have the staff to do the largest audits. 

Unfortunately Taylor has decided to provide lip service to local governments that need more audit and performance oversight analysis and go full bore on hunting down the weaknesses in Stickland's budget plan. Why not through in a few invectives about the use of federal ARRA dollars while your at it?  

We shouldn't expect politicking not to be force in shaping the way policy is sculpted by state office holders. The Auditor's role is much more prescient at overseeing local government finances where the lions share of State dollars actually get spent.  The technocrat veneer once imbued by Taylor is wearing thin.  When a candidate runs for office on her finance acumen and CPA credentials that she possesses it's dissappointing to see them cast aside in favor of the tea party antics currently on display.  I guess we can assume she is running for governor .

Whiteguys and Wingers and Birthers, Oh My

I surveyed the attendees assembling for the Cleveland Tea Bag Festival from my fourth floor perch on Lakeside Avenue.   From this vantage point I could surmise some basic themes emerging in the gathering crowd pf proto-revolutionaries. From the signs people where carrying there was a definitive animus towards the federal government, Obama, taxes of any kind and liberals.

Here are some things I didn't see:

Crispus Attucks - Let's face it, this is a white man's movement.

Non Partisans - The whole tea party theme is a cover for the ant-Obama / Democratic party slant on display at every location I've seen coverage of.

The Independently Wealthy - Let the middle class do the work of shilling for the rich guys.

NPR - Can't imagine the anti-Fox News will do to much to acknowledge today's rallies.

History Majors - The original Tea Party was to protest the actions of a large corporation, this one intends to do their bidding.

Empty Hands - Flags or poster board signs with witty or paranoid sounding slogans were mandatory to gain entrance.

CoExist Bumper Stickers - Doubtful this was a crowd willing to embrace people of all backgrounds.

The Ability to Detect Irony

Far Right Hucksters

A Democrat is president again which means political lunacy is back in vogue.  Just like the cicadas swarm in great numbers every seventeen years reactionary fools converge to the local sports bars to plan the latest peoples' uprising when a liberal leaning president is elected.

A clip of one of one of the meetings is making rounds on the internet.  Local readers will be proud to notice the Copley High School memorabilia in the background.  I'm assuming this was the local gathering of the Glenn Beck 912 viewing party in Fairlawn.

Today's flavor of movement conservatism is a collection of two-bit t-shirt salesman.  Relegated to a series of depraved cottage industries built around a culture of fear and loathing

Here's what they're selling;

• The Tea Party movement is like the new Tupperware party fad. Find the house party nearest to you and show up with a bad attitude about government and a DIY sign. The sale of merchandise is the real pay off. Let's face it these posers will all end up paying their taxes on time.
  

• Your local gun store owner can't hear you over the din of that cash register ringing up sales. A guns and ammo boom is building via the persistent story of a looming federal gun ban. Of course rational people who actually read know that there is no serious move on a gun ban being considered at the national level. At the State level, well just look at what Ohio has done to see the right to bear lots of guns is in no way threatened.
  

• Anything that capitalizes on the fear that Obama is a socialist, communist or the second coming of Hitler is the other growth industry. A hallmark of the loony right is to label anyone diametrically opposed to their world view as a Nazi or Hitler-like. Check out the coverage of the from last week of the Knob Creek Machine Gun Shoot in Kentucky. to see the latest product line in Obama-is-a-fascist gear.
  

The purveyors of this fringe accoutrement know their prospective buyers can't help themselves. 

There is an entire class of consumers that need to accessorize their paranoia with shirts, books and specialty weapons.  Just marketing the product around buzzwords like collectivism, re-education, brainwashing and sleeper candidate gets the cash registers ringing up sales like it was 1995 all over again.  

I actually yearn for the black helicopter days of yore.  There's a fringe movement you can believe in.

Obama Avoids First Base

The right wing has been doing their best to read sinister meaning into President Obama's bow to Saudi King Abdullah.    

It was more likely a slip of decorum or protocol as result of being green around foreign leaders.  Or it could be as some righty prognosticators have suggested a sign of submission to our Saudi overlords.  Would there have been a controversy if he bowed a Japanese head of state?

How quickly memories fade.  It wasn't that long ago that our leaders expressed their admiration to our Saudi friends in an entirely different manner.

I hear the King has sweaty palms.  Maybe that's why Obama opted out of the hand holding.

The Unsinkable Ken Blackwell

You have got to credit Ken Blackwell for his unwavering fealty to the tenets of hard right conservatism.  The man who brought us the Patriot Pastor movement and capitalism through Christ surfaced for air time on cable network MSNBC this week.

The latest chapter of the world according to Ken had him debating Christopher Hitchens on the role of Christianity in American politics.  That point was lost on Blackwell who spent most of his response time defending Christianity as the official religion of the United States.

I do appreciate the MSNBC producer who came up with the idea of pitting Blackwell against Hitch.   The segment contrasts the dogmatic persistence of Blackwell's nutter philosophy with the cynical contrarianism of Hitchen's intellectual conservatism.

Catch the highlights here.  Blackwell manages to remind us of the fanatic viewpoint of his movement's governance style in two distinct sound bites.  The first is at 3:20 into the segment where he explains how Judeo-Christian precepts and principles lay the moral foundation to allow for a free market enterprise.  From what I understand Jesus wasn't too big on the power of capitalism.  

At around 7:50 in he extols movement conservatism's favorite red herrring argument that Christianity is perpetually the underdog of America's religions.  He attempts to quote someone named W. E. Archer when he  says:

"...it might take a crucified church to take a crucified Christ into the view of the eyes of the world.."

I can't figure out what Blackwell is calling for here.  I think he means his buddy Rod Parsley needs you to quickly pick up the phone and buy a DVD to prepare for the end of days.  I'm not quite sure.  

It was good to see Ken get some exposure none the less. I didn't realize he had a gig with the Family Research Council .  It reminds me just how blessed Ohio was when we were granted a reprieve from his theocratic master plan for our State.

TARP Prognosis

The first of several assessments of the TARP program by the Congressional Oversight Panel has been released . The take away number is available without even clicking on the report link:

The total value of all direct spending, loans and guarantees provided to date in conjunction with the financial stability efforts (including those of the FDIC as well as the Treasury and the Federal Reserve) now exceeds $4 trillion. 

You want fries with that?   That represents about 28% of current GDP. We are throwing a monumental amount of resources at the financial crisis. Keep in mind that 4 large doesn't even include the dollars allocated to ARRA spending ($787 billion) which would bring the total effort to a third of GDP. 

One can only hope that Bernanke's green shoots are the real thing.

Pizza Begets Violence

What is it about the pizza business that has made it a focal point of the local police blotter? Just in anecdotal terms there's an indication of an entire class of crime has sprung up around pizza shops and the delivery of pizzas around the Akron area. Maybe its the latest iteration of youth gangs and street criminals exploiting the latest weakness in the community they victimize.

The latest and most troubling episode in the pizza crime chronicles is playing out in West Akron. The fallout from the "pizza guy fights back" shooting continues to stir up the sediment of the social and racial divide that exists in our town.  There is of course more to the incident than the incident itself.

A follow up on the aftermath of the shooting in the Beacon Journal attempts to add more layers to the story.  A business owner did shoot and kill a twenty year old robber in what was most likely a solid case of self defense.  A family is left to wonder why their son and brother made such a foolish and life altering choice  They say he was raised to respect his fellow citizens so how did he end up in that pizza shop wearing a mask and brandishing a sawed-off?  

A man who was exercising his right to protect his life and property ended up killing the would be assailant.  As much as you may feel gratified over the outcome, taking another person's life is a profound event.  It doesn't matter if its on the street or on the battlefield.

Addressing the real societal problems at play requires a certain level of maturity and sincerity. Brush aside the the gun-slinger machismo and race baiting from the fools on local talk radio and the corrosive effect of gun violence and youth crime is left revealed.  The issue is much more complex and is undermined by a society enamored with guns and a city that is awash in youth crime.  Akron like many urban areas has to contend with this problem before this latest generation succumbs to the unrelenting wave of despair and recklessness brought on by economic disparity and lack of positive influences.

I hope we spend less time dwelling on the white man shoots black man dialectic and try really hard to think about how we establish more solidarity against the growing epidemic of violent crime in Akron. Making headway on containing the spread of gang related crime comes first. This may be tied to the enhancement of policing trouble spots, shifting enforcement tactics (one good example here ) and getting the community more involved in pushing back against the hoodlums living in their midst. 

The corollary to this is continuing to prioritize education as the great equalizer and expanding opportunities for self sufficiency for all of Akron's residents.  I don't know of any other way.  Relying on more guns in the streets is not going to get us there. 

Husted's Creative Destruction Gambit

Former Republican House Speaker Jon Husted has announced his intent to save us by destroying an elected State Office.  The on again off again "resident" of Kettering has offered an ageless right wing tennet of governance as a campaign promise,

“I may be the first person in Ohio history to run for an office with a plan to eliminate it," Husted, 41, now a state senator, said in announcing his candidacy today at Ohio Republican Party headquarters.

Husted is going to save the Office of Secretary of State by deconstructing it and replacing it with a weak kneed version of a bi-partisan committee.  Don't they ever learn?  That "I must eliminate government in order to save it" has lost it's luster.  

This looks like an act of desperation or a political Hail Mary pass by Husted.  It's got to be one of the worst ideas since Ken Blackwell announced stringent specifications for voter registration forms.  It is on par with the hapless proposal to phase out the income tax being thrown around by prospective gubernatorial candidate John Kasich.

The fact that Husted's main campaign promise is to abolish the position of SOS is an indication of   the GOP's recognition of the sea change in Ohio politics.  Gone are the days in which the GOP could rest assured they would hold a majority of the executive offices, the governorship and both houses of the general assembly at once.  One way to slow the influence of a more progressive leaning electorate is to decapitate the position that has been instrumental in neutralizing Ohio's voting impediments.  Free and unfettered elections are the true objective of SOS oversight.  So take that away and we're back to the problems experienced in the Blackwell years.

We saw the difference in how election law and voter protection are carried out under Jennifer Brunner as compared to her insincere predecessor Lord Blackwell.   To further that point just look at the impetus for and success of the Secretary of State Project implemented nation wide.  That  initiative was based on the realization that equal protection of voter rights and providing unhindered access to the polls free of absurd rules and red tape are vital to increasing voter turn out.  Removing the Secretary of State position would hamper the ability to act swiftly and directly in matters of protecting voters and the voting process.

Now you could say the Ohio GOP has never been fond of high voter turn out. It doesn't mesh well with their priorities.  So what John Husted has proposed is a Bizzaro Secretary of State Project.  He wants to replace the one strong leadership position that can assure fair electoral results (when they want to) with a gimmicky government by committee.  

Cloaking this work of right wing fancy in a bi-partisan veneer is just a way of making it seem palatable for unsuspecting voters.  As much as Husted and the Ohio GOP may laud the idea there is no real need for this State Committee. The County Boards of Elections already have leadership by committee and that always works out well.

Story courtesy of the Daily Briefing

Taylor Launches Stimulus Watch

State Auditor Mary Taylor wants everyone to know she's watching over the Federal Stimulus dollars destined for local projects and programs.  The AOS has launched a basic reporting portal on the web to be used by local governments to report some basic information on how ARRA dollars are being spent.  The technical bulletin (2009-005) describing the MARY TAYLOR'S FEDERAL STIMULUS TRACKER!!! is here.

The website has a secure portal for reporting stimulus spending at the local level where users are greeted with the following admonisment from Taylor:

As Auditor of the State of Ohio, I am committed to a high level of transparency and accountability over all public funds in the state.  Therefore, as part of our responsibility in completing Single Audits over federal funds, the AOS will be collecting information on the federal stimulus dollars received in Ohio.  All state and local government agencies will be required to report any ARRA dollars they receive and the expenditure of those funds.

The front end of the site is being maintained for public consumption and promises to eventually provide how stimulus dollars are being spent state-wide. 

More transparency and accountability aimed at any use of taxpayer money is always a net benefit in my humble opinion.  I'm fine with any additional avenues of tracking ARRA dollars being offered to the public by the AOS.  What is curious to me is the way Taylor's office is linking the new reporting requirement to the single audit process. 

Cities and counties receive federal and state grant dollars every year.  Maintaining records of how those dollars are spent has always been required in order to pass single audit muster.  Of course the anticipated scale and speed of how the ARRA dollars will pass though to the local level is unprecedented this year. Taylor is going even further by planning to have interim audits of above and beyond the normal annual audit process.

I don't blame Taylor for wanting to be in the mix when it comes to joining the effort to monitor federal recovery dollars.  As State Auditor and lone Republican in the mix of State officers she has an important role in being the overseer of these resources.  This being said, I can't shake the feeling that this Stimulus Tracker is a bit gimmicky.  Color me skeptical.

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Bridge Fencing And Berea Sandstone

The first round of federal stimulus dollars for local infrastructure projects have been announced and the complaints about government waste are already materializing. One of those projects, The Akron Y Bridge rehabilitation, includes installation of safety fencing along the bridge. The decision to fence the bridge has been batted around since several citizens have decided to jump to their deaths from the span. The cost has always been prohibitive until now.

Needed as it may be may be there is an undertone of criticism swirling around the inclusion of the fencing within the bridge project. Tim over at the Chief Source has some misgivings about the waste aspect of spending money on the fence. I Think he's mad about the diminution of the view. Grumpy Abe points out that the ABJ headline on the project implies there is a groundswell of dissatisfaction over the fence even though none really exists. To not be outdone I found a story on Topix from the International Herald Tribune that refers to federal stimulus dollars being spent on "anti-suicide fencing" to keep people from jumping to their deaths.

I can already see where these complaints are going. The Tea Party crowd will get a hold of these project names and individual components and turn them into anti-government invectives. All of this misses the point of the federal program. The dollars are being dedicated to local projects and those projects are being designed and planned by local governments. The overarching goals being to invest in infrastructure and employ people. This isn't a contest to see who can create the most spartan bridge deck.

The current federal funding program for roads and bridges is very similar to the Depression era programs of the 1930's that also had this dual purpose. The evidence of those historical initiatives can be seen all over the Cuyahoga Valley in the form of sandstone blocks that ring the parking lots and mark the park roads. All of these blocks were harvested from the local quarries as part of a program to improve the amenities of the park and keep your grandfather employed. Consider this passage describing a popular location in the Cuyahoga Valley National Park that benefited from the Depression era jobs program:

The Civilian Conservation Corps (CCC) accomplished much of the early work of transforming the private retreat into a public park. Structures in the park built by the CCC in the 1930s include Kendall Lake itself, completed in 1935 and built primarily for swimming, toboggan chutes in 1936 (later removed by the National Park Service), the Lake Shelter in 1937, originally used as a swimmers bathhouse and concession, and the unique chestnut wood privies.

That description was from the Trail Guide Cuyahoga Valley National Park, 3rd Edition. A critic of Roosevelt CCC's work could have been inclined to doubt the need for fancy wood outhouses and a swimming lake. Sure, the country was facing economic collapse and the government was paying men to build recreational digs out out of expensive materials.

The point back then was the same as it is with today's stimulus program spending. The country is facing a great economic decline, one that is chiefly demand driven. The point of infrastructure spending in 2009 is to employee people, drive up demand and get the national economy back on its feet. Not much different than in the 1930's.

Bridge fencing as part of an overall project to rehab an elevated roadway is not a far cry from those sandstone blocks that ring the parking lots or adorn the shelters in the CVNP. Why quarry large chunks of sandstone only to bury them halfway in the ground near park roadways? Why install unsightly fencing along the entire length of Akron's most notable bridge? The answer for both questions is the same. These projects were sanctioned to employ Ohioans and improve our infrastructure in the process. Whether it be park roads or city thoroughfares.

Some critics will be hanging on the the name and intent of every infrastructure project that gets tapped for stimulus funding. In the case of the Y Bridge the image of government waste will be intimated because the $1.5 million spent on the fencing will be puffed up to hyperbolic levels by every libertarian or anti-taxer in throwing distance.

I'd argue that the view was not the driving force (get it) behind the funding of the Y Bridge project. The City of Akron had a duel need of investing in infrastructure and uplifting the economic well being of the region. Directing the federal dollars towards a comprehensive design for revamping the bridge happens to include the maligned "suicide fencing" among other improvements.

You can argue that the views from the Y Bridge will be diminished once the fences go up, but don't tell me that it's a waste of money. Losing the unobstructed view from the bridge is a small price for building a safe and structurally sound piece of Akron's infrastructure. If you want to take in a vista of the surrounding terrain I would suggest the outlook trail at Kendall Ledges. While you're in the area stop by Kendall Lake and check out the Berea sandstone road markers and the stone lodge that sits alongside that lake.

Mayoral Recall Losing Its Luster

The Warner Mendenhall recall may be developing a toxicity that could doom it to failure. There are some recent developments that seem to indicate a weakening of the populist wave that Warner and Co. were hoping to surf to victory.

All of these indicators of recall sentiment trends were neatly presented in a piece in today's ABJ . The article headline sings about Chrissie Hynde hosting a rally for the besieged Mayor Plusquellic. The rally held at Summit Dem HQ in Akron is serving as an official launch of the anti recall, pro mayor canvassing push. The rest of the story actually follows the details of the rally.

At this point in the game any effort to unseat a sitting mayor should be building towards a crescendo. There is some evidence in today's report from the ABJ that the Change Akron movement is losing some steam.

When asked about gathering the required 3,200 signatures Mendenhall kind of balked at the question:

Mendenhall said Friday he thinks the group will reach the 3,200 mark but might need another 20 days to gather enough valid signatures — a provision permitted under the city's charter.

So much for overwhelming force. Isn't the whole thrust of the recall effort getting the signatures?  The hint of fizzle on the Change Akron Now side contrasts with gathering of pro-Don forces in an organized front. The other problem for Mendenhall is the apparent epidemic of defections plaguing his inner circle of followers.

Association with the Mendehall lunacy is starting to develop a taint. The most revelatory nugget is the announcement by one time mayoral candidate and poster boy for anti-Plusquellic contrarianism, Joe Finley , that he is not supporting the recall. Say it ain't so Joe. He was for the recall before he was against it.

Both Joe and ward 2 councilman Bruce Kilby indicate that their future plans to run for elected office outweigh the desire to carry on with the recall nonsense. This could be proof that being identified with the Mendenhall faction could be hazardous to your political health. With Finley out the that only leaves the hapless former opponent of the Mayor, Brian Williams, that has any name recognition. I'll leave that one alone.

Summit Stimulus, Color and Shape

As the requests for stimulus dollars stack up the State of Ohio is already announcing some of the first project awards. More on that Akron Y Bridge Fencing later.

I wanted to take a basic high level look at the requests originating from the localities in Summit County. I think the color and shape of what locals are asking for points to the dire need for infrastructure revitalization. So I grabbed the latest download from the State and set off to flesh out some of the major trends.

The data is available as an excel file, still no true mash-up from the State or any other entity.

Presently there are $1.33 billion in requests from local governments in Summit County. This number does not include the Akron Public Schools, the University of Akron or non profits. The real meat and potatoes so far has been infrastructure projects. As can be seen from this handy pie chart I conjured from the Recovery.Ohio data.

A full two thirds of the requests are for good old fashioned roads, bridges, water, sewer and other main line infrastructure. What does this mean? Probably that there is great need to rebuild the decaying mess that we have depended on to support civilized society. If the Romans had functioning sewers shouldn't we?

I also wanted to see what some specific locals have requested. The next table is a brief look at some select areas of Summit County have asked for in federal stimulus dollars.

Local Government	$'s Requested	$'s Per Capita
Summit County	1,333,056,220	2,453
Akron	679,664,346	3,089
Cuyahoga Falls	139,257,132	2,785
Green	51,100,031	2,222
Stow	11,960,312	374

The requests for Summit County include the County government and all other local governments. Akron takes up more than half of all requests in the county. Akron's requests include some behemoths like the central interchange improvement project that could top $50 million. Adding the APS requests to Akron would push that per capita number up.

The per capita numbers were based on the 2007 Census Bureau population estimates. I'd say political leanings do not make a discernible difference when it comes to requesting ARRA dollars. If your name is Don you'll take the money.

If I have the time I'll try to do some more slicing and dicing of the actual approved dollars as they roll in.

Presser Night In America

President Obama just started fielding questions at his second prime time press conference. The media throng doesn't look too impressed this time. All of the outrage has taken it's toll I guess.

Chuck Todd just got his second chance to ask question in front of 50 million Americans and blew it! He wanted to know what average American's have been asked to sacrifice during the recession. Hey Chuck are you nuts?

We've been taking a back seat for almost a decade now. In fact, I know of a few thousand UAW members that are taking it on the chin over that auto maker bailout. Does he really think they owe as much penance as the knuckleheads that caused Depression 2.0? Geesh.

As bad as things look right now it's reassuring to see Obama get in front of the nation and at least try to make a case for his agenda. What an improvement from the last guy.

Oh, Chip Reid wants to know if spending on things like education, health care and the environment will ultimately be irresponsible. And by "environment" I think Chipster is talking about alternative energy programs, such a sweet child. Don't get discouraged Mr. President it's bound to get better.

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Lance Gets Taste of Domestique Life

I searched my memory for an instance of LA crashing hard enough to break a collar bone and could not recall one. The most remarkable spill that came to mind was the infamous crash in the 2003 Tour on the climb up the Col du Tourmalet. You know the one that was caused by that errant musette bag held by a fan. Sure enough he told Velonews that indeed this has never happened to him before.

Lance's comeback to race in Le Tour is not the real story here. What is revelatory is how "The Boss" has been relegated to domestique. No longer sandwiched by fellow team mates Armstrong has been left to fend for himself in tight situations on the race course. Gone is the prioritization of keeping this guy upright, in the front group and well hydrated. Life out of the bubble can be harsh.

It's not all bad though. The broken collar bone is a badge of courage amongst lesser professionals. In the end I think LA will be better person for experiencing more of what he hasn't known since his formative years with Motorola. A taste of the domestique's life, grueling and selfless. He may even lug a few water bottles from the team car before the comeback is over.

Update: Johan Bruyneel tells Velonews that Lance may still be up for the Giro in May. Let's hope so.

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AIG, Break It Don't Buy It

The feeding frenzy over the AIG "retention payments" is making the Obama administration look like chum in the water. The real danger for Obama and his financial team is that they are going to be saddled with ownership of the whole ugly event if they don't change the discourse.

No amount of outrage peddling will be able to reverse the explosiveness the AIG mess is having on Obama's long-term outlook. A point will shortly be reached in which the major components of the agenda will be at risk. Obama's detractors in the GOP have no choice but to harness the populist backlash and attempt to pull the president's agenda down in the process, as Bloomberg News posits :

The public furor over the $165 million in bonuses AIG handed out to employees gives administration critics a new weapon to thwart Obama’s agenda, from his budget to plans for financial-market regulation.

Robert Reich admits the viability of Obama's agenda is tied to outcome of the intervention in the financial markets:

The President cannot afford to lose the public’s confidence that his administration is a careful steward of the public’s money. The public was willing to go along with a large stimulus package. But it won’t go along with a second stimulus, and certainly not another TARP. And until the public feels confident that its money isn’t being thrown down a rat hole, it may balk at other ambitious undertakings such as health care or education or the environment.

There's basically no time to continue engaging in the populist Olympics currently being held in Congress and in the press. The administration and Geithner in particular need to decouple from the past AIG strategy. The president has to be more forceful in reminding us how we got to to where we are, namely the decision by he former administration to bailout Wall Street. And if that is not enough it wouldn't hurt to start talking in public about revamping the regulatory regime very soon. The real enemy here isn't bonus payments its the decades long free market rampage that has left the country in a bind.

One more option needs to be thrown out there. The fact that AIG is still in one piece is puzzling to me. We already own most of the company. Why not start looking into surpassing the 80% threshold and just nationalize AIG for real? Does any sane person (free market fanatics excluded) care what happen to AIG at this point?

Pushing for the real nationalization of AIG would force the break up option, one that should have been exercised months ago. Robert Reich thinks that a break up would have saved us a lot of trouble :

Had AIG gone into chapter 11 bankruptcy or been liquidated, as it would have without government aid, no bonuses would ever be paid (they would have had a lower priority under bankruptcy law that AIG's debts to other creditors); indeed, AIG's executives would have long ago been on the street.

Of course Reich uses the non-bailout version of a breakup but the result would still be the same.

The clock is running. Start breaking it up or spend the next few years in political purgatory. I don't want this chapter of history to become known as the AIG presidency.

Capitalizing Your Adventure

Once again some of the most poignant commentary on the financial crisis is emanating from the Daily Show. Funny how a satirical news show gets it right more often than some of it cable news brethren.

Follow the link to Stewart's one on one with Mad Money host Jim Cramer if you have not seen the it yet. Cramer sat in with his shirt sleeves rolled up ready to match up against Stewart, his recent antagonist. Too bad he had his lunch handed to him by Stewart. Maybe it had something to do with the video footage of Cramer revealing tips on manipulating markets to juice a short position.

It's not all bad. I'll give Cramer some credit, he did sound the tocsin during his infamous "You Have No Idea!" rant of 2007.

Pledge Drive Irony

The local public radio affiliates have been hitting the airwaves a week long pledge drive.  I'm an avid lister of all things in the public broadcast arena so I'm fine with WCPN and the like taking to the air to beg for money.  Although I did notice a hint of irony in the methods used to encourage pledges.

In a land saturated with cable blather the public airwaves are one of the last refuges of objective and informative news content.  In fact, NPR has done a great job chronicling the financial crisis with programs like Planet Money and This American Life.  

I was surprised to hear repeated pleas to go for the dollar a day pledge and stick it on your credit card if you want.  In fact, during one segment a women who described herself as an "unemployed worker"  attained the dollar a day threshold by way of the plastic.  On top of that the caller was on air with a financial adviser appearing to cross promote for the pledge drive.

I don't know what to make of people piling up credit card debt to acquire a little bit of intangible good.  Didn't using credit for conspicuous consumption became synonymous with this recent period of fiscal gluttony?  Perhaps we are returning to our senses after all.