Cash For (American) Clunkers

Top “Clunker” Trade-Ins 1. Ford Explorer 2. Ford F-150 Pickup (2WD) 3. Jeep Grand Cherokee 4. Ford Explorer 5. Dodge Caravan/Gr. Caravan 6. Jeep Cherokee 7. Chevrolet Blazer 8. Chevrolet C1500 pickup 9. Ford F-150 (4WD) 10. Ford Windstar

Top Sellers 1. Toyota Corolla 2. Honda Civic 3. Toyota Camry 4. Ford Focus 5. Hyundai Elantra 6. Nissan Versa 7. Toyota Prius 8. Honda Accord 9. Honda Fit 10. Ford Escape

Well done, Japanese!

Source.

British Airways Asks Employees To Work Without Pay For One Month

Could you go without two paychecks and still survive?  I couldn’t.

…But British Airways, after posting last month a record annual loss of $656 million, has asked thousands of it’s staff to take unpaid leave for one to four weeks, but with the option of working during this period.

(Something tells me that if you care about your job, you’re going to work during your “leave.”)

The unpaid leave is not ordered but I still think it’s going to piss off a lot of people; a union rep already said that the policy is blatantly out of touch with the financial situation of the average individual.

Source.

NYT: U.S. Planning To Reveal Data On Health Of Top Banks

Talk about walking a tightrope…

The Obama administration, which is in the process of completing stress tests on the country’s 19 largest banks, has chosen to reveal the results of the test to the public.

While all of the banks are expected to pass the tests, some are expected to be graded more highly than others. Officials have deliberately left murky just how much they intend to reveal – or to encourage the banks to reveal – about how well they would weather difficult economic conditions over the next two years.

As a result, indicating which banks are most vulnerable still runs some risk of doing what officials hope to avoid.

So, don’t cause a run on the shitty banks but don’t over-sell the (relatively) healthy banks.

Yeah, good luck with that.

Source.

In related news, did you know Goldman Sachs paid back 5 of the 10 million in TARP funds that they received?  Granted 10 million in TARP funds is a barely a drop in the bucket but the gesture is nice nonetheless.

To Do List Of The Unemployed

Palin, Jindal, And Others Reject Stimulus Money Allocated For Their States

CNN reported on Friday that Governor Palin will officially reject about half of the federal stimulus money allocated for her state and some believe she’s simply playing politics ahead of her 2010 reelection bid. Palin said she believes the funds will only put her state in a “deeper hole.”

In a statement released Friday, Palin said she is open to accepting more of the federal funds, especially the $170 million she is currently rejecting that is allotted to education.

Looks like that hole is sometimes okay.

The article states that other, generally conservative governors, including South Carolina Gov. Mark Sanford, Louisiana Gov. Bobby Jindal, Texas Gov. Rick Perry, and Mississippi Gov. Haley Barbour have all vowed to reject some or all of the stimulus funds headed toward their states.

Texas, with a January unemployment rate of 6.4%, is entitled to $555 million of federal funds. Eligibility for the funds, however, is dependent upon the state expanding unemployment benefits and Gov. Perry does not want to accept the stimulus money because his state would have to raise taxes to cover the expanded benefits once the stimulus funds ran out.

A valid concern but it doesn’t address the goal of the stimulus money or other ways to help the 6.4% of people in his state that are unemployed.

It’ll be interesting to see how this is received by the voting public.

Completely Unrelated: Everyone read The Onion’s Point/Counterpoint: “Gov. Palin Has No Foreign Policy Experience, Refuses To Acknowledge Global Warming, And Supports The War In Iraq” – versus – “Please Keep Your Voice Down, My Poor Retarded Child Is Sleeping,” right? Well, you should.

Obama’s “Katrina Moment” And The Quest For Ever-Elusive Transparency

A letter to the editor last week suggested that Obama is now experiencing his “Katrina Moment.” Frank Rich seems to dismiss this but admits that Obama needs to follow-through on his promise of transparency:

To get ahead of the anger, Obama must do what he has repeatedly promised but not always done: make everything about his economic policies transparent and hold every player accountable. His administration must start actually answering the questions that officials like Geithner and Summers routinely duck.

Inquiring Americans have the right to know why it took six months for us to learn (some of) what A.I.G. did with our money. We need to understand why some of that money was used to bail out foreign banks. And why Goldman, which declared that its potential losses with A.I.G. were “immaterial,” nonetheless got the largest-known A.I.G. handout of taxpayers’ cash ($12.9 billion) while also receiving a TARP bailout. We need to be told why retention bonuses went to some 50 bankers who not only were in the toxic A.I.G. unit but who left despite the “retention” jackpots. We must be told why taxpayers have so little control of the bailed-out financial institutions that we now own some or most of. And where are the M.R.I.’s from those “stress tests” the Treasury Department is giving those banks?

[...]

Another compelling question connects all of the above: why has there been so little transparency and so much evasiveness so far? The answer, I fear, is that too many of the administration’s officials are too marinated in the insiders’ culture to police it, reform it or own up to their own past complicity with it.

The “dirty little secret,” Obama told Leno on Thursday, is that “most of the stuff that got us into trouble was perfectly legal.” An even dirtier secret is that a prime mover in keeping that stuff legal was Summers, who helped torpedo the regulation of derivatives while in the Clinton administration. His mentor Robert Rubin, no less, wrote in his 2003 memoir that Summers underestimated how the risk of derivatives might multiply “under extraordinary circumstances.”

CNN’s Campbell Brown also weighed-in on the yet-to-materialize transparency. She cited the testimony of Earl Devaney, Obama’s hand-picked chair of the Recovery Accountability and Transparency (yes, RAT) board. Devaney said that Recovery.gov is currently getting 4,000 hits a second but that they don’t even have control of the website yet. Devaney:

The board is still trying to acquire staff, get our equipment … phones, computers … trying to acquire space, which we haven’t managed to get yet and just trying to get our heads above water and make sure the board fulfills its responsibilities under the Recovery Act. Our first official board meeting will actually be held next week.

Tell me you oversee a budget of $787 billion dollars but that you don’t have a computer or an office yet to oversee that $787 billion dollars and I’ll say, “You must work for the Federal government.”

Devaney also warned against unreasonable expectations:

I’m concerned that there may be a naïve impression that given the amount of transparency and accountability called for in this act, little or no fraud or waste will occur. I’m afraid that my 38 years of federal enforcement experience informs me that some level of waste or fraud is, regrettably, inevitable.

Campbell Brown notes:

Devaney told The Wall Street Journal that on average, fraud in business adds up to about 7 percent. Apply that to the $787 billion Recovery Act and that’s a jaw-dropping $55 billion in waste and fraud — $55 billion! Kind of makes those AIG bonuses pale in comparison.

Sigh.

I think I need a hope infusion.

Obama On “60 Minutes” – AIG, Cheney, And The Presidential Swing Set

More: Video Part 2; Transcript

Most charming nugget of fluffiness: Obama has started reading 10 letters (out of the thousands sent to the White House every day) before he goes to bed just so he can get an opinion other than that of his staff and break out of the ‘bubble’ that is the White House.

Too Populist? Obama Visits Jay Leno And “The Tonight Show”

Is that possible? Is it bad? I’m not sure how I feel about the President’s appearance on “The Tonight Show.” Part of me thinks it’s campaigning 2.0 while another part of me thinks that it’s an effective way to reach the people, albeit a small percentage of them. Perhaps it’s best understood as the Times described it: “a fire side chat for the flat screen age.” All of this aside, the President is still slated for a prime time address this coming Tuesday, which makes a visit with Leno seem all the more unnecessary.

Here’s the video of the full interview (transcript here):

And yes, there was a gaffe when he compared his bowling score of 129 to the Special Olympics and, yes, they were already doing damage control by the time they were on Air Force One.

The Times has some ridiculously soft-ball articles covering the interview; the Fox News article is a recommended companion (although the fact that they put the Special Olympics thing in the title is a bit over-the-top).

More:
“For Obama, Talk About The Economy Goes Into Late Night” (NYT)
“Seeking Everyman, Obama Does Leno” (NYT)
“Obama on ‘Tonight Show’ Discusses Economy, Makes Special Olympics Joke” (Fox News)
“Transcript: Obama On “The Tonight Show” (NYT)

Jim Cramer On “Daily Show” Brawl, Jon Stewart

CNBC’s Jim Cramer finally commented on his confrontation with Jon Stewart while speaking with Meredith Viera (am I the only one who loves her?) on the Today show:

I think some of Cramer’s points are fair but I also think he slightly skews  (misses?) the fundamentals of Jon’s argument. I think Tucker Carlson’s criticism of the showdown was probably a better defense of Cramer than what Cramer came up with.

Fox News Edits Biden Comment To Reverse Meaning

Is anyone even surprised?

Think Progress did some reporting and discovered the clip that Fox News ran, which was presented as current, shows Biden saying, “The fundamentals of the economy are strong…”

…is actually a quote from September (i.e., the campaign) in which he is quoting (and disagreeing with) John McCain’s assessment of the economy:

What a joke.

Should I Buy The New Flo-Rida Track Or A Share Of Citigroup Stock?

…because they’re the same price.

Just Insert Date!

Or, “Dow Below 6,800; Lowest Close Since ’97” (NYT)

Obama’s State Of The Nation Address; Recovery.gov [Updated]

Obama announced in his quasi-State of the Union address Tuesday night the launch of Recovery.gov, which allows citizens to track where all the stimulus money is going:

Recovery.gov is a website that lets you, the taxpayer, figure out where the money from the American Recovery and Reinvestment Act is going. There are going to be a few different ways to search for information. The money is being distributed by Federal agencies, and soon you’ll be able to see where it’s going — to which states, to which congressional districts, even to which Federal contractors. As soon as we are able to, we’ll display that information visually in maps, charts, and graphics.

Great idea.  Too bad it didn’t track the last – what was it? – $700B?

You can watch the speech at the White House website or read the full transcript. Some highlights follow (definitely read the education section).

On energy:

“We know the country that harnesses the power of clean, renewable energy will lead the 21st century.  And yet, it is China that has launched the largest effort in history to make their economy energy efficient.  We invented solar technology, but we’ve fallen behind countries like Germany and Japan in producing it.  New plug-in hybrids roll off our assembly lines, but they will run on batteries made in Korea.

Well I do not accept a future where the jobs and industries of tomorrow take root beyond our borders – and I know you don’t either.  It is time for America to lead again.”

On education:

“And so tonight, I ask every American to commit to at least one year or more of higher education or career training.  This can be community college or a four-year school; vocational training or an apprenticeship.  But whatever the training may be, every American will need to get more than a high school diploma.  And dropping out of high school is no longer an option.  It’s not just quitting on yourself, it’s quitting on your country – and this country needs and values the talents of every American.  That is why we will provide the support necessary for you to complete college and meet a new goal:  by 2020, America will once again have the highest proportion of college graduates in the world.

On budgetary transparency:

“That is why this budget looks ahead ten years and accounts for spending that was left out under the old rules – and for the first time, that includes the full cost of fighting in Iraq and Afghanistan.  For seven years, we have been a nation at war.  No longer will we hide its price.

On tax cuts:

“[...] 95% of the working households in America will receive a tax cut – a tax cut that you will see in your paychecks beginning on April 1st.

Because of this plan, families who are struggling to pay tuition costs will receive a $2,500 tax credit for all four years of college.  And Americans who have lost their jobs in this recession will be able to receive extended unemployment benefits and continued health care coverage to help them weather this storm.

On housing relief:

“…we have launched a housing plan that will help responsible families facing the threat of foreclosure lower their monthly payments and re-finance their mortgages.  It’s a plan that won’t help speculators or that neighbor down the street who bought a house he could never hope to afford, but it will help millions of Americans who are struggling with declining home values – Americans who will now be able to take advantage of the lower interest rates that this plan has already helped bring about.  In fact, the average family who re-finances today can save nearly $2000 per year on their mortgage.”

On Guantanamo and civil liberties: (AKA “Fuck you Cheney!”)

“That is why I have ordered the closing of the detention center at Guantanamo Bay, and will seek swift and certain justice for captured terrorists – because living our values doesn’t make us weaker, it makes us safer and it makes us stronger.  And that is why I can stand here tonight and say without exception or equivocation that the United States of America does not torture.”

Token hopey-ness: (Ty’Sheoma was seated next to Michelle)

“And I think about Ty’Sheoma Bethea, the young girl from that school I visited in Dillon, South Carolina – a place where the ceilings leak, the paint peels off the walls, and they have to stop teaching six times a day because the train barrels by their classroom.  She has been told that her school is hopeless, but the other day after class she went to the public library and typed up a letter to the people sitting in this room.  She even asked her principal for the money to buy a stamp.  The letter asks us for help, and says, “We are just students trying to become lawyers, doctors, congressmen like yourself and one day president, so we can make a change to not just the state of South Carolina but also the world.  We are not quitters.

We are not quitters.

These words and these stories tell us something about the spirit of the people who sent us here.  They tell us that even in the most trying times, amid the most difficult circumstances, there is a generosity, a resilience, a decency, and a determination that perseveres; a willingness to take responsibility for our future and for posterity.”

-

Mississippi Governor Bobby Jindal provided a gag-inducing Republican response that summarized Obama’s rise to prominence in the same tone and language a parent reserves for the first time a child ties their own shoes. Basically, he said that the government should get out of the way of the private sector (YEAH, because that’s worked so well thus far) and just cut taxes, cut taxes, cut taxes. I’ve never been this annoyed by a Republican speech since W. CNN has some (text) excerpts; [Update:] Talking Points Memo has clips of the speech and reaction from the Fox News Panel. (Spoiler: they were not impressed!) Thanks to Jindal, gays in Mississippi can now be legally fired from their private or public sector jobs solely for being gay, a protection they formerly had. I can’t believe this douche nozzle is the presumed Republican challenge to Obama in 2012.

[Trivia: Did you catch Obama claim that the automobile was invented by Americans? Well, any car freak (me) knows that the invention of the automobile is actually credited to Mr. Benz, a German. It was only popularized by Ford.]

Update: I’m not a huge fan of Rachel Maddow but her response on Jindal’s statement (and his BIZARRE use of a government assistance/Katrina reference), and the new leadership of the GOP (Michael Steele, etc), are right-on.  Highly-recommended (thanks, JMG):

GM Brand Saturn To Die; Pontiac May Be Next

The GM brand Saturn will be phased out by 2012 and Pontiac may also face changes:

“The Pontiac name, part of the car business since 1932, could remain on some models, but may no longer be a separate division. G.M. said Pontiac would be a “focused brand” with fewer models.”

The above news came with word that GM and Chrysler will request an additional $14 billion in Federal bailout money, bringing the total $39 billion. Ford, meanwhile, hasn’t asked for any financial assistance.

Begala: If You Oppose Stimulus, Don’t Take The Money

In case you don’t follow the editorials at CNN.com, there’s a great little back-and-forth bitch-slap extravaganza going on that you really should tune in to.

It started on February 10th, when Democratic strategist Paul Begala wrote an editorial stating that Republican strategy for economic recovery was simply, “deny, delay, and do nothing.”  Well, South Carolina Governor Mark Sanford – a “rising star in the GOP” – didn’t like that very much, so he wrote an editorial three days later pleading, “Don’t Mortgage Our Children’s Futures” (Think of the children!).  Well, Begala decided to up the ante and posed a “oh-no-you-din’nt” challenge to Sanford and other Republicans who oppose the stimulus:

If Republican politicians are so deeply opposed to President Obama’s economic recovery plan, they should refuse to take the money. After all, if you think all that federal spending is damaging, there are easy ways to reduce it: Don’t take federal money.

[...]

Justice Louis Brandeis famously called states “laboratories of democracy.” So let’s experiment. Gov. Sanford can be the guinea pig. His Palmetto State already gets $1.35 back from Washington for every dollar it pays in federal taxes, according to 2005 numbers, the latest calculated by the Tax Foundation, a nonprofit tax research group.

South Carolina is a ward of the federal government. It’s been on welfare for years. If Gov. Sanford is so all-fired opposed to federal spending, let’s start by cutting federal spending in South Carolina. Otherwise, he’s got about as much credibility on fiscal conservatism as A-Rod has on steroids.

Under the Bush-Sanford economic theories, South Carolina’s unemployment rate has reached 9.5 percent — among the highest in the nation. But if Gov. Sanford wants to continue those policies, good luck to him.

Obviously, I don’t think there are any Republicans that would actually refuse to take the Federal money to which they are so opposed but it would be awesome to see them walk the walk by refusing federal money and instead focusing solely on tax cuts.

From CNN.com:

Republican Strategy Of Deny, Delay And Do Nothing (Begala, Feb. 10)
Don’t Mortgage Our Children’s Future (Sanford, Feb. 13)
If You Oppose Stimulus, Don’t Take The Money (Begala, Feb. 16)

Thanks, Slog.

Time Magazine: How To Save Your Newspaper

While it used to seem like the death knell was only sounding for print newspapers, it’s recently become clear that magazines and books are also hurting (e.g., HarperCollins just dumped Collins).  Former editor of Time magazine Walter Isaacson currently has a cover story in his old magazine optimistically titled, “How To Save Your Newspaper.“

Mr. Isaacson essentially argues that the notion that began print media’s move to the internet – that content on the internet should be free – must be abandoned. It was originally thought that this content could be supported through ad revenue but not only is this not sustainable, as we’re now discovering, it creates a relationship where the creator is tied to the interests of the advertisers instead of the reader. Mr. Isaac says that online readers need to start paying piecemeal for content they want, like they do on iTunes. During his interview with Jon Stewart, Jon suggests that newspapers adopt a radio or cable model, where the aggregators (Drudge Report, Daily Beast, this blog), pay a fee to the creator to “rebroadcast” their content and the user pays a fee to have access to the aggregator’s content (like when you pay a fee to your cable company to get all of Viacom’s stations).

The Wall Street Journal still charges for all of it’s online content and the Old Grey Lady recently announced they may go back to charging for some or all online content after previously abondoning a fee for select content.

It’s clear something has to be done to save quality writing and journalism, as noted during the Daily Show interview (paraphrased), ‘somebody’s gotta pay to send journalists to Iraq.‘

Sources: How To Save Your Newspaper (Time Magzine); Walter Isaacson on The Daily Show.

More Good Economic News!

Photo: AP

“The country moved into its second year of uninterrupted job losses last month, with companies shedding another 598,000 jobs — the most since December 1974 — and the unemployment rate moving up to 7.6 percent, the Labor Department reported on Friday.

Economists had forecast a loss of 540,000 jobs and a unemployment rate of 7.5 percent. The jobless rate is at its highest since September 1992.“ – NY Times.

I should be happy I have a job.  I should be happy I have a job.  I should be happy I have a job…

Full article.