Wednesday, December 29, 2010

number of uninsured americans soars to over 50 million..,

HuffPo | Less than a year ago, Francis Campos-Dunn was still working at a county hospital in the San Francisco Bay Area, helping patients navigate the often-maddening bureaucracy required to draw on their health insurance. These days, she has a new set of problems to navigate: how to manage her own care without any insurance of her own, having slipped into an unfortunate but fast-growing slice of the population--Americans who have lost their jobs and now lack health coverage.

Back when she was still working, Campos-Dunn, 42, earned $4,000 a month, enough to make her co-payments for regular medical care. These days, she depends on $300 a month contributions from her 16-year-old son--money he earns at a part-time job--just to pay to the rent. When a recent seizure left her with two broken teeth, she skipped the required treatment and opted to have the teeth pulled instead, because she lacked the funds--a choice that would have previously seemed unthinkable.

As the Great Recession has sown unemployment and downgraded work even for those people who have held on to their jobs, the number of Americans lacking healthcare has swelled beyond 50 million, according to a sobering new report from the Kaiser Foundation.

Among the report's most troubling findings: The number of Americans without any health care coverage grew by more than four million in 2009. That left almost one-fifth of non-elderly people uninsured. Among those between 19 and 29 years old, nearly one-third lacked coverage.

The study underscores the degree to which the recession has accelerated the loss of basic elements once viewed as inextricable pieces of a middle class life. The number of Americans lacking medical coverage now exceeds the population of Spain.

Nearly all Americans over 65 are insured by Medicare, the government-run health care plan, but those beneath that age are increasingly vulnerable to losing health care once provided by their employers or finding themselves unable to afford private coverage, according to the report, "The Uninsured: A Primer."

As those lacking health insurance grow in number, so do those missing out on necessary medical attention. About one-in-four uninsured adults have forgone care in the past year because of costs, compared to only 4 percent of those who have private coverage, according to the report.

Those lacking health coverage are vulnerable to what has become a commonplace financial calamity: confronting a medical emergency, and having to pay for care entirely out of pocket. This year, 27% of uninsured adults used up most or all of their savings paying medical bills, according to the study. Half of these uninsured households had total assets of $600 or less.

u.s. changes how it measures long-term unemployment

USAToday | So many Americans have been jobless for so long that the government is changing how it records long-term unemployment.

Citing what it calls "an unprecedented rise" in long-term unemployment, the federal Bureau of Labor Statistics (BLS), beginning Saturday, will raise from two years to five years the upper limit on how long someone can be listed as having been jobless.

The move could help economists better measure the severity of the nation's prolonged economic downturn.

The change is a sign that bureau officials "are afraid that a cap of two years may be 'understating the true average duration' — but they won't know by how much until they raise the upper limit," says Linda Barrington, an economist who directs the Institute for Compensation Studies at Cornell University's School of Industrial and Labor Relations.

Likening recessionary unemployment spikes in recent decades to a storm at sea, she says, "The waves are getting higher, and we want to understand the intricacies of how they're made up."

The change involves the form used for the bureau's Current Population Survey, based on interviews with thousands of the unemployed. Currently, no matter how much longer than two years someone has been out of work, the form allows interviewers to check off only "99 weeks or over." Starting next month, jobless stints of "260 weeks and over" can be selected on the response form.

"The BLS doesn't make such changes lightly," Barrington says. Stacey Standish, a bureau assistant press officer, says the two-year limit has been used for 33 years.

A two-year limit hampers economists' ability to compare this recession's effect on the job market with another severe one in the early 1980s, Barrington says.

Although "this feels like something we've not experienced" since the Great Depression, she says, economists need more information to be sure.

The change will not affect how the unemployed are counted or the unemployment rate is computed nor how long those eligible for unemployment benefits receive them. Analysts call the move a sign of the times.

"We realize more and more people are unemployed longer than 99 weeks, so we need to break it down further," Standish says.

Tuesday, December 28, 2010

it couldn't have happened to a better audit firm...,

RollingStone | The short version of what happened goes something like this. Lehman Brothers, like all the other big banks on Wall Street in those years, was nearing insolvency and desperate for cash. In advance of its quarterly reports in 2007, the firm executed a series of something called Repo 105 transactions in an attempt to make their balance sheet look healthier than it was.

These Repo 105 transactions are just loans that Ernst and Young and Lehman Brothers conspired to book as revenue from sales. If I go to you and I ask you to lend me a hundred bucks to pay for Knicks tickets, that’s a loan, and you and I and the SEC and every investor on Wall Street all know I’m in debt to you, that I owe you a hundred bucks.

Here’s how Lehman Brothers paid for their Knicks tickets: a week before the game, they went to you and offered to you “sell” you their worthless puke-stained lava lamp for a hundred bucks, with the understanding that two days after the Knicks game, it would come back and “buy” the lamp back for the same $100 (plus a small commission for your trouble). And when Lehman pocketed that $100 from the initial transaction, they decided to call that not borrowing but a true sale, i.e. they booked that hundred bucks as revenue from an honest sale of a worthless piece-of-shit lava lamp.

In 2007 and 2008 Lehman would do this before the end of every quarter. They would "sell" billions of dollars of assets, typically bonds, to various companies, and use that money to pay down debt before the quarter’s end, so that they didn’t look so flat-ass broke to investors. Then, a week or so after the end of the quarter, they would go out and borrow more money, and then "buy" the assets back. The reasons they did this were myriad, but in most cases the assets they were "selling" were depressed in value at the time and could not have been sold at anything like face value had they really gone out on the market and tried. So instead of really "selling" these items on their balance sheet, they worked together with other companies to jury-rig these “repurchase” agreements that looked like sales but were actually loans.

Lehman was doing massive amounts of these deals every quarter. In the second quarter of 2008, they lightened up their balance sheets with $50 billion worth of Repo agreements. This technique, apparently known as "window dressing," isn’t that much different conceptually from the Enron-style book-doctoring that used "independent" special purpose vehicles to hide liabilities. In this case Lehman didn’t use shell companies but instead scattered its dent in the financial atmosphere by booking loans as sales. Ernst and Young, which made over $100 million in fees between 2001 and 2008 working with Lehman, aided the process by signing off on Lehman’s crazy accounting. In the report by bankruptcy examiner Anton Valukas that came out last March, he describes how Ernst and Young threw up a brilliant "We’re not corrupt, we’re just incredibly stupid" defense when confronted with the question of the $50 billion in Repo 105s in the second quarter of 2008.

who is buying stocks and keeping the market bubble inflated?


Video - Charles Biderman on Maria Bartiromo truthing in the wee hours.

ZeroHedge | Due to time constraints, what I didn’t get to address on CNBC today is what will happen after the Fed is either successful or not successful with QE2. The Fed is rigging the market by digitally creating money that is used to buy financial institutions assets — currently Treasuries, last year all kinds of toxic waste. What will happen when the Fed stops buying assets?

What the Fed is hoping is that QE2 actually works and the economy starts growing at 3+%. If that happens, unlikely as it is, then the Fed will end its QE activities. But for the stock market, if the only source of buying power, the Fed, withdraws its support, the market is likely to plunge to well below fair value. At that point perhaps some new source of money , i.e., China, et al will be able to buy US assets on the cheap.

The Fed is legally mandated to manage the economy, not the stock market. If the Fed’s QE is successful and the trickle down impact of higher equities creates a sustainable recovery, the Fed will gladly sacrifice the stock market to its legal mandate to manage the economy.

A more likely outcome is that while stocks will be higher by the end of QE2, economic growth will not be sustainable without government aid. That would then require additional QE. Stock prices could then keep rising for a while. At some unknowable now moment in time, unless the economy starts to grow again, no amount of QE can work forever in keeping the current stock market bubble from bursting.

michigan town pleading for bankruptcy

NYTimes | Leaders of this city met for more than seven hours on a Saturday not long ago, searching for something to cut from a budget that has already been cut, over and over.

This time they slashed money for boarding up abandoned houses — aside from circumstances like vagrants or obvious rats, said William J. Cooper, the city manager. They shrank money for trimming trees and cutting grass on hundreds of lots that have been left to the city. And Mr. Cooper is hoping that predictions of a ferocious snow season prove false; once state road money runs out, the city has set nothing aside to plow streets.

“We can make it until March 1 — maybe,” Mr. Cooper said of Hamtramck’s ability to pay its bills. Beyond that? The political leaders of this old working-class city almost surrounded by Detroit are pleading with the state to let them declare bankruptcy, a desperate move the state is not even willing to admit as an option under the current circumstances.

“The state is concerned that if they say yes to one, if that door is opened, they’ll have 30 more cities right behind us,” Mr. Cooper said, as flurries fell outside his City Hall window. “But anything else is just a stop gap. We’re going to continue to pursue bankruptcy until the door is shut, locked, barricaded, bolted.”

Bankruptcy, increasingly common among corporations and individuals, remains rare for municipalities. Local leaders who want to win elections find it unappealing and often have other choices for solving financial woes. Besides, states have a say in whether a municipality may pursue bankruptcy at all, and they have every reason to avoid such an outcome, not least of all for fear of a creating a ripple effect that could cripple the municipal bond market and drive up the cost of borrowing.

Yet with anemic property tax revenues and forecasts of more dire financial times ahead, some experts and elected leaders fear that more localities may have to at least consider bankruptcy.

“There could be many cities in this position next year,” said Summer Hallwood Minnick, director of state affairs for the Michigan Municipal League, who added that in this state, cities had already struggled with billions less than expected in state revenue sharing. “All our communities have done is cut, cut, cut. They’re down to four-day workweeks and the elimination of parks, senior centers, all of that. So if there’s anything else that happens, they will be over the edge.”

This month, the authorities in Rhode Island said the City of Central Falls could face bankruptcy if immediate, drastic changes — perhaps the city’s annexation into a neighboring municipality — failed. Some leaders in Harrisburg, Pa., which owes millions in debt payments tied to an incinerator project, say bankruptcy may eventually be the only choice.

Prichard, Ala., which stopped paying monthly checks to retired city workers when its pension fund ran out last year, is appealing a bankruptcy judge’s ruling that it did not qualify for Chapter 9 under Alabama law.

Monday, December 27, 2010

lady t - r.i.p.


the fully-informed jury association

LATimes | Last year in Illinois, which has no medical marijuana law, Vietnam veteran Loren Swift, who says he uses marijuana to relieve pain and post-traumatic stress, was charged in LaSalle County after police found 25 pounds of marijuana and 50 pounds of marijuana plants in his home. He was acquitted after only two hours of jury deliberations.

"Some of the jurors got up and they started hugging the guy," said Peter Siena, the deputy prosecutor who tried the case.

"It's becoming an increasing problem. People just don't seem to care about marijuana cases anymore," said Brian Towne, the LaSalle County prosecuting attorney.

The issue is ripe in Montana, which is home to the headquarters of the Fully Informed Jury Assn., a national group that encourages jurors to nullify laws they believe are unjust.

Jury nullification never became an issue in the Missoula drug case; there was never a jury. While Deschamps was wrestling with what to do during a recess, the defendant, Touray Cornell, agreed to accept a conviction on a felony count of distribution of his one-sixteenth of an ounce of dangerous drugs. He was sentenced to 20 years, with 19 years suspended to run concurrently with the sentence on another conviction for conspiring to stage a set-up robbery at a casino.

The prosecutor, Andrew Paul, declined to discuss the case, except to say that Cornell's neighbors had been "complaining about his brazen drug dealing."

"The jury of course knew none of that stuff," Deschamps said. "What they knew was some guy here was charged with criminal sale of a very small amount of marijuana. Were they going to hang him for that?"

The judge, a former prosecutor, said he voted for Montana's medical marijuana initiative in 2004, which has become highly controversial in part because its beneficiaries have become so numerous: More than 12,000 residents hold cards entitling them to use the drug for sometimes doubtful medicinal purposes.

"My personal view, I think for the most part we should legalize marijuana and be done with it. Because I think it's created way more havoc and trouble than it's worth," Deschamps said. "But when you get some guy [like Cornell] that just comes and rubs it in your face.…"

the looming crisis in the states

NYTimes | For most of this year, the state of Illinois has lacked the money to pay its bills. Some of its employees have been evicted from their offices for nonpayment of rent, social service groups have laid off hundreds of workers while waiting for checks, pharmacies have closed for lack of Medicaid payments. Faced with $4.5 billion in overdue payments, Illinois has proposed a precarious plan to sell its delinquent bills to Wall Street investors in exchange for cash, calculating that the interest it must pay the investors will be less than the late fees it owes.

It is no way to run the nation’s fifth largest state, and it is not even clear that investors will agree, but these kinds of shaky deals are likely to become increasingly common as the states try to cope with the greatest fiscal drought since the Great Depression. Starved for revenue and accustomed to decades of overspending, many states have been overwhelmed. They are facing shortfalls of $140 billion next year. Even before the downturn, states jeopardized their futures by accumulating trillions in debt that they swept into some far-off future.

But that future is not so distant, and the crushing debt has made recovery far more difficult to achieve. As The Times reported, Illinois, California and several other states are at increasing risk of being the first states to default since the 1930s. The city of Prichard, Ala., has stopped sending out its pension checks, breaking state law and shocking its employees.

A state or city unable to make its bond payments would send harmful ripples through the financial system that could cause damage even to healthier governments. But if states act quickly to deal with their revenue losses and address their debt — and receive sufficient aid from Washington — there is still time to avoid a crisis.

The most immediate cause of the states’ problems is the decline in tax revenue caused by the downturn, just as the demand for services has increased.

Over the last two years, combined sales, personal and corporate taxes have fallen by more than 10 percent. Although revenue is likely to tick up slightly in 2011, federal stimulus money — which has been keeping many states afloat — is largely scheduled to expire. Renewing a portion of that aid would be one of the most effective ways to assist the economy.

the plight of the highschool homeless

WaPo | During the first days Landis Brewer spent homeless, he maintained a facade of suburban comfort at South County High School, where the all-district running back with the easy smile was the image of teenage aplomb.

But when he left campus, that veneer disappeared. Brewer, 18, slept at a bus stop in Reston and kept his belongings in a garbage bag hidden behind a bush. After his grades started slipping and a teacher caught him dozing off in class, the ugly story tumbled out.

Homelessness had come as a swift, unforgiving series of blows. First, his parents, whose marriage had imploded, disappeared. A few days later, Brewer came home from school to an eviction notice posted on the front door.

Suddenly, he was one of a growing number of teens without parents, guardians or reliable shelter in one of America's richest communities. Fairfax, one of only two counties in the nation with median household incomes above $100,000, counts nearly 2,000 homeless students in its school division - about 200 of whom are, like Brewer, "unaccompanied." The latter figure is twice what the comparable figure was two years ago, a surge reflected nationally as the faltering economy has undermined many families.

The rise has coincided with newly aggressive initiatives by school districts, including Fairfax, that increasingly are getting involved in ensuring their students are not only taught and fed but also housed.

Friday, December 24, 2010

fannie and freddie foreclosure FAIL!!!

WaPo | As the housing market came crashing down in 2008, the giant mortgage company Fannie Mae took an unprecedented step to help tackle the rising tide of foreclosures. It named an exclusive group of law firms that would help rapidly carry out the unsavory task of filing legal paperwork to remove homeowners from their homes.

Today, problems with documents handled by firms on Fannie's list - and a similar one created by its smaller rival Freddie Mac - are at the heart of federal and state probes over faulty foreclosure practices that now threaten to further undermine the housing market.

Fannie and Freddie, the largest mortgage companies, shaped the practices being challenged in courtrooms around the country. They picked law firms that could foreclose fast and paid them based on how many foreclosures they could process. Speed was essential because delays cost the companies money - and, after they were taken over by the government two years ago, meant losses for taxpayers, too.

Not only did the companies urge swift foreclosures, but in at least one case Fannie executives also greenlighted working with a firm that they knew firsthand had engaged in legally questionable practices, according to documents and interviews with lawyers and industry officials.

That firm was the Law Offices of David J. Stern in Florida, which built a hundred-million-dollar-plus business foreclosing on the tens of thousands of borrowers who lost their homes in the housing crash.

In 2000, the Fannie executive responsible for overseeing outside law firms in Florida was questioned about Stern's firm in connection with a class-action lawsuit alleging it had charged borrowers bogus fees based on fraudulent paperwork.

In a deposition, Susan Reid, an associate general counsel who oversaw Stern's firm for Fannie until two months ago, was asked by a lawyer representing borrowers why her company hired law firms such as Stern's to handle foreclosures.

"We felt that timelines and the time it took to foreclose on a piece of property . . . could be improved," she responded. She explained that with "every month" that passed, "we're losing money."

Did Fannie, she was then asked, have any safeguards to ensure that law firms, rushing to foreclosure, followed the law? "I don't know of any policies and procedures," she answered.

To the contrary: Fannie and Freddie over the years have prodded law firms and mortgage servicers that collect payments to move even faster.

When law firms or servicers have taken too long to foreclose, Fannie and Freddie have threatened to charge them a penalty fee, according to industry sources and documents. And every few months, the two mortgage companies have sent servicers report cards ranking them on how rapidly they completed foreclosures compared with their peers.


Sharga Says Decline in Home Foreclosures Won't Continue
Uploaded by Bloomberg. - Up-to-the minute news videos.

WaPo | Since the meltdown in the housing market began more than three years ago, Maryland and the District have changed their foreclosure laws to give borrowers greater protection. Virginia has moved in the opposite direction.

Last year, the state legislature overwhelmingly passed a law making it easier for lenders to defend themselves when accused of giving homeowners too little warning of impending foreclosures.

The process moves so quickly in Virginia - one of the fastest states in the nation - that homeowners can receive less than two weeks' notice that their house is about to be sold on the courthouse steps.

That confronts homeowners with an almost impossible deadline. To get a court to stop the sale in that narrow window, they must gather evidence, file a lawsuit and potentially post a bond with the court that could total thousands of dollars. Instead of trying to find a lawyer and prepare a suit, many borrowers run out the clock trying to deal with their lender.

At a time when lenders have been cutting corners and using phony documents to seize huge numbers of houses, the hurdles can be insurmountable, according to lawyers, consumer advocates and borrowers who have tried to save their homes.

"There's no question that people are losing their homes when they should not be," said James W. "Jay" Speer, executive director of the Virginia Poverty Law Center, which is part of a legal-aid network.

In many states, homeowners facing foreclosure automatically get a day in court, a chance to tell a judge why they should keep their homes. The judicial process provides at least a modest check on error and abuse.

But in Virginia and 28 other states, as well as the District, according to the RealtyTrac foreclosure information service, borrowers have no such luck. They face "nonjudicial" foreclosure processes, meaning lenders can foreclose without going through the courts.

garden state foreclosure freeze?

NYTimes | Six lenders that together have filed nearly 30,000 foreclosure actions in New Jersey this year face the possible suspension of such operations next month. The possible suspension came under a court order announced on Monday by the chief justice of the state Supreme Court, Stuart J. Rabner.

The action follows a report submitted to the Supreme Court that, citing depositions and court filings in other states, paints a picture of systemic abuses in the filing of foreclosures that include so-called robo-signing, in which employees signed hundreds of documents without checking them for accuracy.

The lenders were ordered to appear on Jan. 19 to demonstrate why the state should not suspend their foreclosure actions. They are Ally Financial, formerly GMAC; BAC Home Loan Servicing, a subsidiary of Bank of America; Chase Home Finance, part of JPMorgan Chase; OneWest; Wells Fargo Financial New Jersey; and CitiResidential Living, a subsidiary of Citibank.

“It’s important that the judiciary ensures judges are not rubber-stamping documents that may not be reliable,” Judge Rabner said on a conference call.

Wells Fargo plans to fight the move, a spokesman said. Representatives for the other banks either declined to comment or could not be reached.

no foreclosure representation in cali

NYTimes | In California, where foreclosures are more abundant than in any other state, homeowners trying to win a loan modification have always had a tough time.

Now they face yet another obstacle: hiring a lawyer.

Sharon Bell, a retiree who lives in Laguna Niguel, southeast of Los Angeles, needs a modification to keep her home. She says she is scared of her bank and its plentiful resources, so much so that she cannot even open its certified letters inquiring where her mortgage payments may be. Yet the half-dozen lawyers she has called have refused to represent her.

“They said they couldn’t help,” said Ms. Bell, 63. “But I’ve got to find help, because I’m dying every day.”

Lawyers throughout California say they have no choice but to reject clients like Ms. Bell because of a new state law that sharply restricts how they can be paid. Under the measure, passed overwhelmingly by the State Legislature and backed by the state bar association, lawyers who work on loan modifications cannot receive any money until the work is complete. The bar association says that under the law, clients cannot put retainers in trust accounts.

The law, which has few parallels in other states, was devised to eliminate swindles in which modification firms made promises about what their lawyers could do, charged hefty fees and then disappeared. But foreclosure specialists say there has been an unintended consequence: the honest lawyers can no longer afford to assist Ms. Bell and all the others who feel helpless before lenders that they see as elusive, unyielding and skilled at losing paperwork.

The revelations three months ago that large banks were sloppy and negligent in preparing foreclosure documents underscore just how important it is for distressed homeowners to have representation, lawyers and consumer advocates say. Homeowners whose cases were handled improperly have little way of knowing it. Even if they found out, they would be hard-pressed to challenge a lender without a lawyer.

“Consumers just don’t know what is going on,” said Walter Hackett, a former banker who is now a lawyer for a nonprofit service in Riverside. “They get a piece of paper saying they are going to lose their homes and they freak out.”

prichard is the future

NYTimes | This struggling small city on the outskirts of Mobile was warned for years that if it did nothing, its pension fund would run out of money by 2009. Right on schedule, its fund ran dry.

Then Prichard did something that pension experts say they have never seen before: it stopped sending monthly pension checks to its 150 retired workers, breaking a state law requiring it to pay its promised retirement benefits in full.

Since then, Nettie Banks, 68, a retired Prichard police and fire dispatcher, has filed for bankruptcy. Alfred Arnold, a 66-year-old retired fire captain, has gone back to work as a shopping mall security guard to try to keep his house. Eddie Ragland, 59, a retired police captain, accepted help from colleagues, bake sales and collection jars after he was shot by a robber, leaving him badly wounded and unable to get to his new job as a police officer at the regional airport.

Far worse was the retired fire marshal who died in June. Like many of the others, he was too young to collect Social Security. “When they found him, he had no electricity and no running water in his house,” said David Anders, 58, a retired district fire chief. “He was a proud enough man that he wouldn’t accept help.”

The situation in Prichard is extremely unusual — the city has sought bankruptcy protection twice — but it proves that the unthinkable can, in fact, sometimes happen. And it stands as a warning to cities like Philadelphia and states like Illinois, whose pension funds are under great strain: if nothing changes, the money eventually does run out, and when that happens, misery and turmoil follow.

It is not just the pensioners who suffer when a pension fund runs dry. If a city tried to follow the law and pay its pensioners with money from its annual operating budget, it would probably have to adopt large tax increases, or make huge service cuts, to come up with the money.

Current city workers could find themselves paying into a pension plan that will not be there for their own retirements. In Prichard, some older workers have delayed retiring, since they cannot afford to give up their paychecks if no pension checks will follow. Fist tap Nana.

Thursday, December 23, 2010

a society far and above anything else on earth....,


Video - Celebration of conservative American values People as Property.

WaPo | "Dixie," that emotionally freighted and much-debated anthem of the old Confederacy, starts soft when it's done right, barely above a whisper. But each sotto voce syllable of the opening verse, each feather-light scrape of the fiddle strings, could be heard without straining when the ladies in the hoop skirts and the men in the frock coats rose in reverence to celebrate the 150th anniversary of South Carolina's secession.
"We are very proud of who we are," said Chip Limehouse, a South Carolina legislator who rented a historically accurate suit and vest for the formal ball celebrating the anniversary. "This is in our DNA."

Great-great-great-granddad fought the Yankees, lost his plantation, was bathed in glory, the men and women at the ball like to say. They're proud of their ancestors, they declare, and that's why they paid $100 apiece to take part in an event touted as a "joyous night of music, dancing, food and drink."

John B. Hines, a wealthy Texas oilman and cattle rancher, helped, too. He sent a $5,000 sponsorship for the affair because he loves the Old South: "They created a society far and above anything else on Earth." As for the NAACP demonstrators outside, Hines said, their arguments are "nonsense. The NAACP's just hard up for a reason to bitch at people."
Outside Charleston's bulky concrete municipal auditorium, on an unseasonably chilly Southern night, some of the men and women in a crowd of about 100 were thinking about their own ancestors: slaves who picked the cotton for the forebears and allies of the men and women inside. "Disgusting," the Rev. Joseph A. Darby, vice president of the local NAACP chapter, said of the event inside.

On the street, they lifted protest signs; inside, they lifted drinks with names like "Rebel Yell." The stubborn inside-outside faceoff that throttled this jewel of a Southern city on Monday night hints at dramas to come, an unending series of Civil War anniversaries stretching from secession and the firing on Fort Sumter to the laying down of arms at Appomattox. For the next 41/2 years - the span of the bloodiest conflict in U.S. history - Americans black and white will have ample opportunities to wrestle with delicate, almost-impossible-to-resolve questions of legacy and history, of what to commemorate and what to condemn.

South Carolina was the first state to secede from the Union, but the commemoration will be followed by similar events in other states - parades and balls and speeches and plaques. The anniversaries will press current politicians to tiptoe through minefields of nuance. Charleston Mayor Joe Riley called the Secession Ball "unfortunate" and "the opposite of unifying," but several big-name lawmakers not only attended, but donned costumes to do so.

the essence of conservatism

paecon | In a previous issue of the Review, both Thomas Wells and Bruce Elmslie argue that I got it wrong when I pointed out in “Free Enterprise and the Economics of Slavery” that in The Wealth of Nations, Smith treated slaves as property. I argued that since they were property—one could buy and sell them—one could ignore their human misery. I used Smith, as well as John Locke, to illustrate this peculiar Anglo-American tradition of basing freedom (free enterprise) on property and property rights. (On the European continent, freedom was generally based on the human will (Rousseau) or the moral will (Kant). So, did Smith treat slaves as property in The Wealth of Nations or did he not?

In Civilizing the Economy, where I provide more details about Smith’s treatment of slaves in The Wealth of Nations, I quote his comparison of the treatment of cattle and slaves:[1]

In all European colonies the culture of the sugarcane is carried on by negro slaves . . . . But the success of the cultivation which is carried on by means of cattle, depend very much upon the good management of those cattle; so the profit and success of that which is carried on by slaves, must depend equally upon the good management of those slaves, and in the good management of their slaves the French planters, I think it is generally allowed, are superior to the English.[2]

Comparing the management of cattle and of African slaves, of course, expresses the full meaning of “chattel slavery,” since chattel has the same root as cattle. Furthermore, just as cattle were treated as property, so were slaves.

Elmslie makes much of Smith’s argument that free labor, in most cases, is superior to slave labor. Smith does write this, but I think he is thinking about this much like one would think about getting the most from what one has purchased. As Patricia Werhane has pointed out, for Smith, labor is property. The difference between whether it is free or slave labor depends on who controls it. She writes:

Because that property [one’s productivity] is one’s own, to which one has a perfect right, and because productivity is exchangeable, one should be free to exchange this commodity, and others should be free to employ it. Thus one can sell one’s labor productivity (but not one’s strength and dexterity) without thereby selling oneself into serfdom. If one is not paid for one’s productivity, one’s property rights will be violated. Worse, because one’s productivity is an outcome of one’s own labor, if it is not recognized as an exchangeable commodity, one thereby will be treated as a slave.[3]

Slaves, in other words, were not free to exchange their labor, but were exchanged as labor. So when Smith argues that free labor is usually more productive than slave labor, he is merely calculating how to get the best return from one’s investment.

It is true that I do not give much credit to Smith’s statements against slavery in his other writings, although I do recognize them. The issue, however, is not Smith’s view of slavery as a moral philosopher, but his view as an economist. When he thinks economically, if we may call it this, he treats slaves as property. This is significant because we live in his legacy of this uncivil economics. In this tradition, we can be quite civil, in our religious, legal, and political life, but uncivil in our economic life. As we see the commercial gaining control over the civic today, we need not only to expose this tradition of treating people and the planet as property, but also to switch to a economics based on civic relations, rather than on one based on property and property relations.

conservative echo chambers

CSMonitor | Add the coffee shop to an ever-growing list of places ghettoized by conservatives. Conservatives can attend ideologically friendly colleges like Hillsdale or Bob Jones University to avoid the influence of liberal professors. They can tune into conservative radio stations and marinate in hours of right-wing chatter. They can even consult Conservapedia, the right-wing encyclopedia site embracing "a conservative approach to education." (A taste: the first header under the entry Barack Hussein Obama reads "Obama is likely the first Muslim President.")

The proliferation of conservative-only institutions isn't new. In the 1960s and 1970s, leaders of the newly formed conservative movement perceived a need for alternatives to institutions they believed were riddled with liberal bias. To some extent, they were right. By the 1960s, the majority of Americans were liberal, supporting unions, civil rights, and government programs for the middle-class and poor. Media, universities, and government agencies tended to reflect this.

But conservatives have transformed a solid argument about liberal bias into something else entirely. They argued that institutional liberalism was not a reflection of the zeitgeist but rather a result of a liberal elite forcing everyone in its reach to march in ideological lockstep. Based on this argument, the right built an ever-growing network of conservative media, foundations, universities, and organizations – what liberal commentator Sidney Blumenthal called the counter-establishment.

The counter-establishment's foundation on the idea of an entrenched liberal elite colors the mission of today's conservative enterprises, which tend to assume anything not labeled conservative is liberal by default. Conservapedia, which proclaims itself "The Trustworthy Encyclopedia" warns that the founders "do not allow liberal bias to deceive and distort here," implying all other encyclopedias do.

Likewise, A Conservative Cafe's owner insists that coffee houses are "havens for liberal ideas and decaying social values." Yet modern coffee houses are hardly liberals-only. Starbucks, for instance, flourishes in GOP strongholds, be they in northern Virginia or the reddest reaches of Idaho. Orange County, Calif., is littered with latte peddlers.

Liberals, too, have carved out spaces for themselves – places such as the website DailyKos or The Nation magazine – but they have not created a set of replacement institutions.

Some may say that there is no real harm done by conservative self-segregation; that those who choose it are not likely to change their political stances anyway.

But shared experiences are a key component of democratic culture. Without the cross-pollination of ideas that occurs when people with opposing views come in contact, ideologies harden, extremism flourishes, and prejudices grow.

Sustaining a common political culture is tough enough when Americans share less public space and participate in fewer organizations. To limit commerce and conversation and even cups of coffee to political comrades leads us further and further from a united America. Fist tap Arnach.

Wednesday, December 22, 2010

aerobiology


Video - Phil Collins In the Air Tonight

The Scientist | The air is teeming with microbes, and scientists are finally starting to understand how they influence everything from meteorology to epidemiology. Every cubic meter of air holds up to 100 million microorganisms, but the diversity and behavior of these microbes remains masked to microbiologists — until recently, that is.

Thanks to next-generation sequencing techniques, scientists are finally uncovering the details of the biodiversity and biogeography of this largely unknown ecosystem. They are discovering airborne microbes do much more than just ride the wind transmitting disease — microbes also help create the intricately beautiful designs in snowflakes and facilitate the formation of clouds, for example. Studying them, researchers say, could give insight into how to better monitor global climate change, as well as predict and track weather cycles and disease and allergen outbreaks.

"There's going to be an explosion of studies using these new techniques," said Jessica Green, microbial ecologist at the University of Oregon.

Recent research published in PNAS suggests that the diversity of microbial life in the air is on par with the soil, at least in urban areas, yet the air remains vastly understudied in comparison.

"Just seven or ten years ago we didn't realize bacteria existed in clouds," said Anne-Marie Delort, professor of microbiology and organic chemistry at Université Blaise Pascal in France. Now researchers know microbes act as a surface for the condensation of water vapor in the atmosphere, thus forming clouds. Recent research publish in Science shows microbes also play the same role during snowflake formation and other types of precipitation. The next step, Delort said, is to uncover their metabolic activity in clouds and influence on atmospheric processes. If they are metabolically active, she added, microbes could not only be acting as cloud condensers, but affecting the carbon and nitrogen cycles as well.

p.s. This cat I been following for a decade on yahoo groups has known all about aerobiology and atmospheric electrodynamics and has been sharing this knowledge with a tiny group of interested correspondents for over a decade.

ideas of the microbiome and the virome...,

Sciencemag | Humans have been doing battle with bacteria since the 1800s, thwarting disease with antibiotics, vaccines, and good hygiene with mixed success. But in 2000, Nobel laureate Joshua Lederberg called for an end to the “We good; they evil” thinking that has fueled our war against microbes. “We should think of each host and its parasites as a superorganism with the respective genomes yoked into a chimera of sorts,” he wrote in Science in 2000.

His comments were prescient. This past decade has seen a shift in how we see the microbes and viruses in and on our bodies. There is increasing acceptance that they are us, and for good reason. Nine in 10 of the cells in the body are microbial. In the gut alone, as many as 1000 species bring to the body 100 times as many genes as our own DNA carries. A few microbes make us sick, but most are commensal and just call the human body home. Collectively, they are known as the human microbiome. Likewise, some viruses take up residence in the body, creating a virome whose influence on health and disease is just beginning to be studied.

Their genes and ours make up a metagenome that keeps the body functioning. This past decade we've begun to see how microbial genes affect how much energy we absorb from our foods and how microbes and viruses help to prime the immune system. Viewing the human and its microbial and viral components as intimately intertwined has broad implications. As one immunologist put it, such a shift “is not dissimilar philosophically from the recognition that the Earth is not the center of the solar system.”

This appreciation has dawned gradually, as part of a growing recognition of the key role microbes play in the world. Microbiologists sequencing DNA from soil, seawater, and other environments have discovered vast numbers of previously undetected species. Other genomics research has brought to light incredible intimacies between microbes and their hosts—such as a bacterium called Buchnera and the aphids inside which it lives. A study in 2000 found that each organism has what the other lacks, creating a metabolic interdependency.

One of the first inklings that microbiologists were missing out on the body's microbial world came in 1999, when David Relman of Stanford University in Palo Alto, California, and colleagues found that previous studies of bacteria cultured from human gums had seriously undercounted the diversity there. Turning to samples taken from the gut and from stools, the researchers identified 395 types of bacteria, two-thirds of them new to science.

In 2006, Steven Gill of the University at Buffalo in New York and colleagues did a metagenomics study of the gut, analyzing all the genes they could find in the 78 million bases sequenced. They found metabolic genes that complemented the human genome, including ones that break down dietary fiber, amino acids, or drugs, and others that produce methane or vitamins. This and a more comprehensive survey in 2010 by Jun Wang of BGI-Shenzhen in China and colleagues provided support for the concept of the microbe-human superorganism, with a vast genetic repertoire. Now, large-scale studies have surveyed the microflora in the gut, skin, mouth, nose, and female urogenital tract. The Human Microbiome Project has sequenced 500 relevant microbial genomes out of a planned 3000.

Some of these microbes may play important roles in metabolic processes. In 2004, a team led by Jeffrey Gordon of Washington University School of Medicine in St. Louis, Missouri, found that germ-free mice gained weight after they were supplied with gut bacteria—evidence that these bacteria helped the body harvest more energy from digested foods. Later studies showed that both obese mice and obese people harbored fewer Bacteroidetes bacteria than their normal-weight counterparts.

The microbiome is also proving critical in many aspects of health. The immune system needs it to develop properly. What's more, to protect themselves inside the body, commensal bacteria can interact with immune cell receptors or even induce the production of certain immune system cells. One abundant gut bacterium, Faecalibacterium prausnitzii, proved to have anti-inflammatory properties, and its abundance seems to help protect against the recurrence of Crohn's disease. Likewise, Sarkis Mazmanian of the California Institute of Technology in Pasadena showed that the human symbiont Bacteroides fragilis kept mice from getting colitis. And inserting bacteria isolated from healthy guts restored the microbial communities, curing chronic diarrhea in a patient infected with Clostridium difficile.

Herbert Virgin of Washington University School of Medicine finds a similar role for the virome. In mice, his team found that dormant herpesviruses revved up the immune system just enough to make the mice less susceptible to certain bacterial infections.

The ideas of a microbiome and a virome didn't even exist a decade ago. But now researchers have reason to hope they may one day manipulate the body's viral and microbial inhabitants to improve health and fight sickness.

ruining genetics

TechnologyReview | In 2009, a group of researchers based in the Netherlands published a stunning study on the genetics of human height—stunning because it failed to find much of a genetic component in one of the most obvious of inherited human traits. The group analyzed 54 recently identified genetic locations that statistical analysis suggested were the main contributors to height and discovered that all of them together accounted for only 4 to 6 percent of the height variance in thousands of subjects.

The "missing heritability" in the height study typifies many recent research reports in which large-scale genetic screens, known as genome-wide association studies, have identified a multitude of genes (or at least genetic neighborhoods) that are statistically associated with a biological trait like height or a disease like obesity, yet account for mystifyingly little of its propensity to run in families. What is interesting about Nadeau's findings is that even though they diminish the significance of single genes and the DNA sequences of individuals, the research preserves—and in some ways increases—the significance of family history, since even the genetic variants that parents and grandparents don't pass down through DNA seem to influence the traits of their children or grandchildren.

Nadeau, who is silver-haired and cheerful, has been investigating what he sometimes calls "funky" genetic results ever since sophisticated sequencing technologies became available about 10 years ago. Some of those results have been hinted at by traditional epigenetics, which has begun to trace changes that are transmitted from one generation to the next in animals even though the basic DNA sequence remains the same. (For example, researchers have found that rats whose cognitive performance was improved through environmental factors can pass those improvements down to offspring.) But where that field has typically focused on chemical modifications of DNA, Nadeau's work expands the notion of epigenetics to include genetic effects that may be transmitted by different molecular players: ribonucleic acids (or RNAs), which exert powerful regulatory effects on DNA.

Key evidence for Nadeau's general views on unconventional modes of inheritance grew out of a dissertation project that one of his students began around 2001. In the long tradition of misguided doctoral advice, everyone told Man-Yee Lam that her project was boring, derivative, and hardly worth doing; for five or six years, nothing in her results suggested otherwise. The focus of the project was testicular germ-cell tumors. It didn't become clear until much later that the experiment represented the first rigorous demonstration of a transgenerational effect, showing that genetic variations in a parent—even though they were not passed along to offspring—could dramatically change disease risks in those offspring.

Lam set out to see if she could identify interactions between several "modifier" genes—interactions that would increase susceptibility to testicular cancer in mice. She found lots of these interactions (some quite strong), completed her thesis, and graduated. Then, when the group started to write up the results for publication, they noticed something very peculiar: the effects had also occurred in some of the control animals bred from the same original population. In other words, males that had been bred so as not to inherit the disease mutations still had a statistically significant increase in their risk for testicular cancer, simply because the parents possessed a particular genetic variant. The results suggested that there could be patches of DNA in parents that affected the traits of children, even if the children did not inherit this bit of parental DNA.

Even before publication in 2007, Nadeau began describing the findings—to decidedly mixed reviews. He says, "If they were geneticists, there were all sorts of technical [objections] or 'It's not fair to talk about this in public. This is just too complicating, too—it's too everything!' One even said, 'Are you trying to ruin genetics?' "

sugar


Video - Ajit Varki talks about glycobiology in the context of evolution

Naturally Selected | Ajit Varki, distinguished professor in the departments of medicine and cellular and molecular medicine at the UCSD, was one of the first researchers to recognize the importance of glycans—the sugar molecules that decorate the surface of cells. He is profiled in the December issue of ASBMB Today, with a focus on the larger context of his work as co-founder of The Center for Academic Research in Anthropogeny (CARTA), which promotes transdisciplinary research into human origins.

Varki believes that sialic acids be responsible for major evolutionary advances. As he states in his interview with ASBMB, equating human evolution to a murder mystery, “every single cell in a human is covered with sugars, and research has now shown biological roles for glycans that range from the sublime to the ridiculous. So if you mess around with sialic acid biology, you end up changing a lot of functions.”

In this video he talks about the importance of, and his hopes for, the field of glycobiology.

genomic dark matter

Sciencemag | It used to seem so straightforward. DNA told the body how to build proteins. The instructions came in chapters called genes. Strands of DNA's chemical cousin RNA served as molecular messengers, carrying orders to the cells' protein factories and translating them into action. Between the genes lay long stretches of “junk DNA,” incoherent, useless, and inert.

That was then. In fact, gene regulation has turned out to be a surprisingly complex process governed by various types of regulatory DNA, which may lie deep in the wilderness of supposed “junk.” Far from being humble messengers, RNAs of all shapes and sizes are actually powerful players in how genomes operate. Finally, there's been increasing recognition of the widespread role of chemical alterations called epigenetic factors that can influence the genome across generations without changing the DNA sequence itself.

The scope of this “dark genome” became apparent in 2001, when the human genome was first published. Scientists expected to find as many as 100,000 genes packed into the 3 billion bases of human DNA; they were startled to learn that there were fewer than 35,000. (The current count is 21,000.) Protein-coding regions accounted for just 1.5% of the genome. Could the rest of our DNA really just be junk?

The deciphering of the mouse genome in 2002 showed that there must be more to the story. Mice and people turned out to share not only many genes but also vast stretches of noncoding DNA. To have been “conserved” throughout the 75 million years since the mouse and human lineages diverged, those regions were likely to be crucial to the organisms' survival.

Tuesday, December 21, 2010

a physicist solves the city

NYTimes | “We spend all this time thinking about cities in terms of their local details, their restaurants and museums and weather,” West says. “I had this hunch that there was something more, that every city was also shaped by a set of hidden laws.”

And so West set out to solve the City. As he points out, this is an intellectual problem with immense practical implications. Urban population growth is the great theme of modern life, one that’s unfolding all across the world, from the factory boomtowns of Southern China to the sprawling favelas of Rio de Janeiro. As a result, for the first time in history, the majority of human beings live in urban areas. (The numbers of city dwellers are far higher in developed countries — the United States, for instance, is 82 percent urbanized.) Furthermore, the pace of urbanization is accelerating as people all over the world flee the countryside and flock to the crowded street.

This relentless urban growth has led to a renewed interest in cities in academia and in government. In February 2009, President Obama established the first White House Office of Urban Affairs, which has been told to develop a “policy agenda for urban America.” Meanwhile, new perspectives have come to the field of urban studies. Macro­economists, for instance, have focused on the role of cities in driving gross domestic product and improving living standards, while psychologists have investigated the impact of city life on self-control and short-term memory. Even architects are moving into the area: Rem Koolhaas, for one, has argued that architects have become so obsessed with pretty buildings that they’ve neglected the vital spaces between them.

But West wasn’t satisfied with any of these approaches. He didn’t want to be constrained by the old methods of social science, and he had little patience for the unconstrained speculations of architects. (West considers urban theory to be a field without principles, comparing it to physics before Kepler pioneered the laws of planetary motion in the 17th century.) Instead, West wanted to begin with a blank page, to study cities as if they had never been studied before. He was tired of urban theory — he wanted to invent urban science.

For West, this first meant trying to gather as much urban data as possible. Along with Luis Bettencourt, another theoretical physicist who had abandoned conventional physics, and a team of disparate researchers, West began scouring libraries and government Web sites for relevant statistics. The scientists downloaded huge files from the Census Bureau, learned about the intricacies of German infrastructure and bought a thick and expensive almanac featuring the provincial cities of China. (Unfortunately, the book was in Mandarin.) They looked at a dizzying array of variables, from the total amount of electrical wire in Frankfurt to the number of college graduates in Boise. They amassed stats on gas stations and personal income, flu outbreaks and homicides, coffee shops and the walking speed of pedestrians.

After two years of analysis, West and Bettencourt discovered that all of these urban variables could be described by a few exquisitely simple equations. For example, if they know the population of a metropolitan area in a given country, they can estimate, with approximately 85 percent accuracy, its average income and the dimensions of its sewer system. These are the laws, they say, that automatically emerge whenever people “agglomerate,” cramming themselves into apartment buildings and subway cars. It doesn’t matter if the place is Manhattan or Manhattan, Kan.: the urban patterns remain the same. West isn’t shy about describing the magnitude of this accomplishment. “What we found are the constants that describe every city,” he says. “I can take these laws and make precise predictions about the number of violent crimes and the surface area of roads in a city in Japan with 200,000 people. I don’t know anything about this city or even where it is or its history, but I can tell you all about it. And the reason I can do that is because every city is really the same.” After a pause, as if reflecting on his hyperbole, West adds: “Look, we all know that every city is unique. That’s all we talk about when we talk about cities, those things that make New York different from L.A., or Tokyo different from Albuquerque. But focusing on those differences misses the point. Sure, there are differences, but different from what? We’ve found the what.” Fist tap ProfGeo.

michael hudson goes subreal...,


Video - Why government is more afraid of debt than depression.

RealNews | JAY: So President Obama's deficit commission has reported. The press, the media, and most of the political punditry all seem far more worried about government debt than depression. Why?

HUDSON: Because they're essentially appointed by the banking interest. When the government runs into debt, it has to borrow off the banks. They want to scale down government debt in order to scale down government taxes. So it's part of a one-two punch against the economy, basically. To the deficit commission, a depression is the solution to the problem, not a problem. That's what they're trying to bring about, because you need a depression if you're going to lower wages by 20 percent.

JAY: And why do they want to do that?

HUDSON: Because they have the illusion that if you pay labor less, somehow you're going to make the economy more competitive, and the economy can earn its way out of debts--meaning their employers, the banks and the companies--and make more profits and pay more bonuses and stock options, and somehow their constituency, Wall Street and the corporate economy, will become richer if they can only impoverish the economy. So essentially you can think of it as between a parasite and the host economy. A smart parasite in nature actually is in a symbiosis with the host and tries to steer to new food. It wants the host to find new food, doesn't want it to get bigger; the parasite wants itself to get bigger. But to do that, it has to take over the host's brain and make the brain think that the parasite, in this case the host, is the industrial economy, the real economy, production and consumption. The parasite is basically the financial sector. That's the deficit commission. That's the largest financier of the Obama administration. Obama appointed Wall Street lobbyists for the deficit commission, and basically their mind is a one-track mind: reduce labor's wages. So what we have here is a dumb parasite, not a parasite. That's the problem that's facing the American economy today. The problem is that the parasite's not only taken over the brain of the economy, which was supposed to be the government, but it's taken over its own brain in the process. And it actually imagines that corporations can make larger profits and the industrial--the financial system can survive if they just bring on a depression. In fact, it'll be the exact opposite.

Monday, December 20, 2010

"c"onspiracy vs. "C"onspiracy in american history..,

MorrisBerman | American history can be seen as the story of a nation consistently choosing individual solutions over collective ones. One American who did dissent, however, was Bill Wilson, the founder of Alcoholics Anonymous. In Twelve Steps and Twelve Traditions he wrote: “The philosophy of self-sufficiency is not paying off. Plainly enough, it is a bone-crushing juggernaut whose final achievement is ruin.”

And “ruin” is the operative word here. While there is certainly an upside to these four isms–the sunny side of technological innovation and the Yankee “can-do” mentality, for example–in the long run these unconscious mythologies, in dialectical fashion, began to turn against those caught up in their magic spell. It surely cannot be an accident that 25% of all the world’s prisoners are incarcerated in American jails (1% of the entire US adult population); that two-thirds of the world’s consumption of antidepressants occurs in the United States; that 24% of the American population say that it’s OK to use violence in the pursuit of one’s goals, 44% support the torture of alleged or suspected terrorists, and 39% want Muslims in the US to be required to carry a religious ID on them at all times (why not just make it a yellow star, and be done with it?); that the country has the greatest percentage of single-person dwellings in the world, the highest homicide rate, the largest military budget (by several orders of magnitude), and the greatest number of square feet of shopping malls on the surface of the planet. The data on ignorance, which I have documented elsewhere, are breathtaking, and Robert Putnam’s description (in Bowling Alone) of the collapse of community, trust, and friendship is one of the saddest things I have ever read. Dialectically, and ironically, American “success” became American ruin; the crash of October 2008 was merely the tip of the iceberg.

The power of isms, certainly in the American case, derives from the fact that they are unconscious, embedded deep in the psyche. They constitute Conspiracies in that those who hold them are like marionettes on strings, screaming “Obama!” (for example) without realizing that the new president can no more buck the elites running the country than he can dismantle the mythologies that drive its citizens–himself included. As for the individual, so for the nation: the only hope is to see ourselves as we are seen, from the outside, as it were. And therein lies the paradox. For the four Conspiracies close in on themselves, forming a kind of mirror-lined glass sphere that does not permit any dissonant information to enter. Sandel, Mills, Rothkopf, Bellah, Mead, Leach, Appleby, Putnam–America’s finest, really–will never become household words, and if they did, it would probably be as objects of contempt. For this is finally the most terrifying thing about isms or Conspiracies: we do not choose them; rather, it is they that choose us.

When Big Heads Collide....,

thinkingman  |   Have you ever heard of the Olmecs? They’re the earliest known civilization in Mesoamerica. Not much is known about them, ...